Survey says 70% of Japanese enterprises wish to expand business in Vietnam
Approximately 70% of Japanese enterprises operating in Vietnam intend to expand their operations in future, an increase of 3% compared to 2016, according to a JETRO survey.The survey covers the operations of Japanese enterprises in Asia and Oceania and its findings were announced by the Japan External Trade Organisation (JETRO) in Ho Chi Minh City on February 6. Chief Representative of JETRO Office in Ho Chi Minh City Koji Takimoto said that the survey received valid responses from 4,630 Japanese enterprises in 20 countries and territories around the world, including 652 Japanese enterprises in Vietnam. The survey showed that 65.1% of Japanese enterprises operating in Vietnam recorded a profit in 2017, up 2.3 percentage points from the previous year. In addition, about 70% of Japanese enterprises expressed their intentions to expand their business in Vietnam, a slight increase compared to 2016. The rate is relatively high compared to other countries, indicating the attractiveness of the Vietnamese market. Japanese enterprises mentioned key factors for their developments in Vietnam including the advantages of the investment environment, political and social stability, and the affordable cost of labour, among others. However, the language barriers, incomplete legal system, complicated tax procedures, and limited sources of materials and components remain key obstacles for Japanese enterprises operating in Vietnam, the survey says. Japanese enterprises invested a record high of more than US$9.11 billion in Vietnam in 2017, in areas mostly similar to 2016. Infortrend assigns Nhat Tien Chung as Vietnam distributor The Nhat Tien Chung Telecom Informatics Co. Ltd. signed a strategic partnership agreement on February 6 with Infortrend, one of the world’s leading storage system manufacturers and specializing in producing Storage Area Network (SAN) and NAS (Network Area Network) appliances for storage systems. Vietnamese businesses will have an additional choice when building storage systems, especially during the fourth industrial revolution (Industry 4.0) and the ongoing digital revolution. Nhat Tien Chung will be an authorized distributor of Infortrend’s products in Vietnam, including high-performance storage products as EonStor GS, EonStor GSe, EonStor GSe Pro, EonStor DS, and EonServ. With these devices, businesses can confidently build their storage systems at affordable costs. Infortrend is well-known in the field of providing high performance storage solutions. Founded in 1993, it has kept its focus on storage solutions. All Infortrend equipment is researched, manufactured, and controlled for complete quality. Its products range from a variety of devices for different storage needs, from SMEs to big corporations, and from file sharing to the computing infrastructure for virtualization. “Infortrend has a clear direction and only focuses on storage devices and related storage solutions,” said Mr. Nguyen Chi Ha Hai, Deputy Director of Nhat Tien Chung. “Solutions from Infortrned are extremely important to Nhat Tien Chung, especially during the Industry 4.0 era, when Vietnamese businesses are increasingly aware of the need for serious data storage and protection. They are more willing to invest in protecting, exploiting, and managing data efficiently, improving availability, and accelerating business operations. We strongly believe in their product quality and their global prestige.” Nhat Tien Chung has been a Vietnamese server provider for more than ten years to business partners, hosting providers, software developers, and datacenters in Vietnam. It has received senior certifications from Intel, AMD, IBM, HP, and DELL. Novaland's 2017 net profit at $91mn, up 22.5% The Nova Real Estate Corporation (Novaland) has released its Q4/2017 accumulated financial statement, in which total revenue in the quarter reached nearly $259 million, 32-times higher than in the fourth quarter of 2016, while net profit after tax (NPAT) was $31.5 million, up an impressive 629 per cent. Total revenue in 2017 was $512 million, an increase of 58 per cent against 2016 but only nearly 70 per cent the target set. The positive growth results from it delivering seven projects in the last quarter of the year with 3,596 apartments, a touch higher than the 3,325 in 2016. Novaland said it would continue to focus on residential while expanding into the new product types of hospitality and commercial under the second stage of its strategic roadmap. There were six key projects in Ho Chi Minh City contributing to revenue, of which 36 per cent came from Lakeview City in District 2, 16 per cent from Rivergate Residence in District 4, 15 per cent from The Tresor Residence in District 4, 9 per cent from Gardengate Residence in Phu Nhuan district), 8 per cent from Lucky Palace in District 6, and 6 per cent from Orchard Garden in Phu Nhuan district. Most projects have seen high absorption, from 94-100 per cent, except for Rivergate Residence (83 per cent). The average unit price was around $145,000, an increase of 18 per cent compared to 2016. Novaland last year saw 5,802 successful transactions, accounting for about 18 per cent of the total apartments sold in Ho Chi Minh City in 2017, according to CBRE Vietnam. The company has about 25 projects under development that will be delivered in the near future. Handover is expected this year in eleven projects, contributing significantly to both revenue and inventory reduction. Novaland completed the acquisition of two projects in Ho Chi Minh City in the fourth quarter: Newton Residence in Phu Nhuan district and Sunrise Cityview in District 7, acquiring 99.89 per cent and 99.81 per cent of ownership, respectively, under its ongoing M&A strategy. The average absorption rate at the two projects was 91 per cent. Long-term investments, including those in associated entities, joint ventures, and other entities, rose 178 per cent year-on-year. 2017 revenue and NPAT increased 58 per cent and 24 per cent year-on-year, respectively, with both representing nearly 70 per cent of their target. Owners’ equity and charter capital increased 32 per cent and 9 per cent, respectively, via the successful private placement of ordinary shares for Credit Suisse AG Bank, Singapore Branch’s loan conversion of $60 million in the second quarter of 2017, and 20 million shares in an employee stock ownership plan (ESOP) issued in the fourth quarter. Credit Suisse also approved raising the credit limit to $125 million, which has been fully disbursed for Novaland to finance its projects. Bach hoa Xanh to have 1,000 HCMC stores this year The top priority of the Mobile World Investment JSC (MWG) this year is to develop the Bach hoa Xanh chain to about 1,000 stores in Ho Chi Minh City and expand in the Mekong Delta’s Tien Giang province to test the delivery process outside of its distribution center, according to MWG’s CEO Tran Kinh Doanh. The company wants to turn the chain into a large, efficient business and see electronics revenue double that of electrical appliance revenue. “If this is successful, we will outstrip our revenue target for 2018,” Mr. Doanh said. MWG posted total revenue of VND66.3 trillion ($2.92 billion) in 2017, representing year-on-year growth of 49 per cent and 105 per cent of the annual target of VND63.3 trillion ($2.78 billion). After-tax profit was VND2.2 trillion ($96.8 billion), representing year-on-year growth of 40 per cent and 100 per cent of the annual target. It opened 742 new stores during the year, including 121 thegioididong.com, 396 Dien may Xanh, and 235 Bach hoa Xanh stores. It had 1,997 stores in total by the end of the year, including 1,072 thegioididong.com, 642 Dien may Xanh, and 283 Bach hoa Xanh stores. Online revenue in 2017 reached VND5.7 trillion ($250.9 million), a year-on-year increase of 69 per cent and 86 per cent of the annual target. Regarding Big Phone - its mobile retail chain in Cambodia - MWG opened eight out of ten expected stores during the year and became the largest mobile retailer in the country, with each store recording revenue of $100,000 a month. MWG is also is in the process of completing the acquisition of the Phuc An Khang pharmaceutical chain and expects to open 100 stores in Ho Chi Minh City this year. MWG also bought shares in electronics retailer Tran Anh, taking over its IT and accounting systems and sending key personnel to operate the retailer. Overseas remittances heating up for Tet holiday Over the course of January, the total overseas remittances wired from compatriots to families and relatives living in Vietnam saw a notable increase, especially with Tet Holiday just around the corner, offering domestic banks opportunities to foster overseas remittance wiring services, expand revenue, enhance the stability of the VND, and relieve the pressure on the USD/VND exchange rate. Over the last five years, “More than four million Vietnamese compatriots currently staying and working in 187 foreign countries were reported to frequently conduct overseas remittance transactions, especially around the last days of the lunar year as this period usually records a noteworthy leap in holiday shopping among Vietnamese people,” Nguyen Hoang Minh, deputy director of the Ho Chi Minh City branch of the State Bank of Vietnam (SBV) asserted. Minh noted that, “The majority of overseas remittances transferred to Vietnam in 2017 originated from the US (over 60 per cent) and Europe (19 per cent).” He also added that, “Overseas remittances sent to Ho Chi Minh City alone was recorded at $5.2 billion, 4.5 per cent higher than the same category in 2016 and accounting for 58 per cent of the total overseas remittance inflows to the country.” Specifically, according to the latest statistics provided by the World Bank, the total estimated remittances sent from foreign countries in 2017 climbed to roughly $13.8 billion, up 16 per cent against 2016, signifying the most rapid growth in the foreign remittance market over the past five years. Huynh Trung Minh, a Vietnamese financial specialist, previously highlighted that the foreseeable FED hikes would pose a negligible impact on overseas remittances inflows to Vietnam due to the favourable conditions of current remittance wiring services and the inundating number of overseas workers in foreign countries. Particularly, the upsurge in overseas remittances could assure a sufficient supply of USD, which in turn could meet individuals and businesses’ demand for foreign currencies. UK investors eye aviation projects in Vietnam A number of investors from the UK, including ty Arup as well as Atkins and Benoy, have expressed strong interest in aviation projects in Vietnam. At last week's meeting with Deputy Minister of Transport Le Dinh Tho, British Ambassador to Vietnam Giles Lever said that the LongThanhInternationalAirport project and the projects to expand TanSonNhatInternationalAirport and NoiBaiInternationalAirport are among the targets of UK companies, including consultancy service providers. "UK businesses are seeking opportunities to join the building of the feasibility study of the LongThanhInternationalAirport project,” said Lever. In addition, they are also keen on urban railway projects. Tho, in response, said that the Ministry of Transport welcomed UK firms to join the LongThanhInternationalAirport project. As planned, Airports Corporation of Vietnam (ACV), the investor of this project, will begin to receive bidding documents from February 23, 2018. In addition to UK businesses, the $16-billion LongThanhInternationalAirport project and the project to expansion of TanSonNhatInternationalAirport are on the radars of many international groups. Earlier, a number of investors from the US, Japan, and South Korea expressed interest in these projects. At present, MoT is selecting consultants for the feasibility study, which is expected to be carried out in 2018-2019 to be then submitted to the National Assembly for approval. When the feasibility study is approved, investment models, including state investment and PPP, for sub-projects will be decided. Investors will be then selected based on certain criteria through international bidding. MoT aims to kick-off the project construction in 2019 and complete it in 2022 so that the project can be put into operation in early 2023. The 5,000-hectare project will be developed in three phases, with the first costing $5.45 billion and finished in 2025 at the latest. This phase will have a capacity of 25 million passengers and 1.32 million tonnes of cargo a year. The airport will be able to handle 100 million passengers and five million tonnes of cargo annually after the third phase is completed. SeaBank acquires Post and Telecommunication Finance Co., Ltd. Despite being in the red, Post and Telecommunication Finance Co., Ltd. (PTF) has just been successfully auctioned at the initial price of VND500 billion ($220 million). Vietnam Posts and Telecommunications Group (VNPT) is preparing to submit a statement to the State Bank of Vietnam and the Ministry of Information and Communications (MIC) that it has officially signed the contract to sell PTF to Southeast Asia Commercial Joint Stock Bank (SeaBank). This was revealed by Tran Manh Hung, chairman of VNPT, at the meeting of MIC on February 5. “VNPT has just held a successful auction of PTF with the participation of two banks,” he said. The successful selling price was higher than the initial price set by VNPT. Earlier, according to the announcement of VNPT, the auction of PTF was to take place on February 1, 2018 at the initial price of VND500 billion ($220 million), which is the charter capital of the company stated in the business certificate granted in 1998. In additional to losing almost all of its owners' capital, by the middle of 2017 PTF has accumulated debts of VND347 billion ($15.3 million), including VNPT's debts. The regulations of the auction noted that the investor winning the auction must inherit all the assets, debts, and liabilities of the company at the time of handover. Furthermore, investors must have a valid payment guarantee from a domestic bank to commit payment to VNPT. Related to VNPT’s divestment of other companies, the chairman said the group has organised auctions in batches of six companies. Four of these were not successful. Recently, VNPT's divestment of its stake in Maritime Bank has not been successful as no investors registered to buy. The group holds over 71 million shares (equaling 6.09 per cent of the charter capital), which were offered at VND851 billion ($37.5 million). Besides, VNPT continues to divest other companies, including: Central Telecommunication Development JSC Dalat Telecommunication Construction and Trading Services Company Dong Thap Telecommunication Construction Investment Company Bac Lieu Telecommunication Construction Investment Company Hue Post and Telecommunication Construction and Installation JSC Tet shopping goes online in Vietnam With only a few days off before Tet to make preparations for the country’s biggest holiday of the year, busy office workers in Vietnam have opted for online shopping to avoid the crowds while still being able to choose from a wide range of options. Tet, or Lunar New Year, falls on February 16 this year, but preparations for the public holiday typically start at least a week earlier. Similar to Christmas in some Western countries, Tet is a peak selling season for retailers in countries that observe the Lunar New Year, including Vietnam. Among the most popular items during this shopping season are flowers, clothes, and most importantly food to get one through the week-long public holiday, during which most stores and markets in the country are closed. This year, online stores have taken the initiative to offer homemade, ready-to-eat food that can be delivered to customers’ doorsteps, sparing them the need to busy themselves preparing food for the long break. Traditional dishes that are popular on Vietnamese tables during Tet such as boiled chicken, sticky rice cakes and pickled vegetables are best-sellers on online kitchens advertising themselves to be selling only homemade, toxin-free food. Thuong, owner of an online store offering specialties from northern Vietnam, said she had only set out to sell cooking ingredients when she first opened her store. “But then some of my customers began to ask me for cooking recipes and whether I could help process the food, so I decided that I would begin to sell cooked food this year as well,” Thuong said. Nguyen, a ‘clean’ fruits and vegetables online vendor in Ho Chi Minh City, said her customers were mostly migrant workers who wanted to ship items to their hometown early, as they still had to go to work until two days before Tet. Meanwhile, online store owners said they had started to avoid selling their products via supermarkets in recent years due to the cumbersome paperwork involved and the risk of producing more than the demand. On customers’ part, buying ‘homemade’ food gives them the confidence of consuming healthy and clean products, amidst growing public fear of dirty food in Vietnam. “Customers prefer buying from us even at a slightly higher price because they believe that what we sell are homegrown, chemical-free and more nutritious,” Nguyen said. Ford launches new dealership in southern Vietnam Ford Vietnam, part of global automotive giant Ford Motor, continues expanding its authorised dealer system in Vietnam through launching Tay Ninh Ford unit on February 5. Reaching Ford’s global standards, the new dealer in Hiep Tan commune, Hoa Thanh district in Tay Ninh province brings the number of Ford’s authorised dealers across Vietnam to a total of 36. Oriented towards the ‘One Stop Shopping’ model, the Tay Ninh Ford unit is ready to provide customers with a full range of services for Ford cars, including selling brand new car units, exchanging used cars, and supplying parts with swift and flexible payment policies. In addition, customers will be able to access financial consultancy as well as repair and maintenance services, among others. Covering 3,200 square metres, Tay Ninh Ford sits on the trans-Asia route connecting Ho Chi Minh City and localities in the Mekong Delta, a pivotal economic region that features diverse fields of economy and accommodates a fast-growing auto market. Valued at US$2 million in total investment capital, the new dealer is adjacent to Binh Duong, Binh Phuoc, and Long An province, Ho Chi Minh City, and two provinces of the neighbouring Cambodia as well as Tay Ninh province’s Moc Bai international border crossing, so it expects to serve a crowded customer base. The 800sq.m showroom at Tay Ninh Ford will lineup Ford Vietnam’s entire portfolio. The 2,000sq.m-plus workshop space ensures receiving up to 60 cars for repair and maintenance per day. “Ford Vietnam is overjoyed to welcome the Tay Ninh Ford unit as our 36th dealership in the country. Ford dealers' commitment to improve quantity and quality, and especially the launch of Tay Ninh Ford today is a testament to Ford’s long-term commitment to investment and sustainable development in the Vietnamese market,” said Ford Vietnam CEO Pham Van Dung. After 20 years of presence in Vietnam, Ford has grown into one of the leading car brands. Last year, Ford Vietnam reported sales of 28,588 car units, making up 10.5% of the domestic market share. Its Ranger, Transit, and EcoSport lines continued to lead the pickup, commercial, and small SUV segments for three consecutive years. Ford’s upscale SUV line, the Explorer reported record sales in its segment only one year after debuting in Vietnam. Earlier this month, the new Ford EcoSport was launched, promising to bring customers a compact, flexible, and smart SUV that matches perfectly to an urban lifestyle. US opens APHIS representative office in Vietnam A representative office of the Animal and Plant Health Inspection Service (APHIS) under the US Department of Agriculture has opened at the US Embassy in Hanoi. The launch of the office took place on February 5 and was attended by Vietnam’s Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, APHIS Deputy Administrator Cheryle Blakely, and the US ambassador to Vietnam. Ambassador Daniel Kritenbrink said that the opening of the office is the latest example of the US’ continued efforts to strengthen the trade relationship between the two countries. As agricultural trade between the US and Vietnam is growing, the APHIS office in Hanoi will have the role of ensuring that new trade opportunities are realised and existing trade between the two economies flows smoothly. The office will maintain technical working relationships with its Vietnamese counterparts to resolve sanitary and phytosanitary issues whenever they arise. In addition, the APHIS office’s regulatory mission allows for a flow of agricultural trade that meets international animal and plant health standards, which has helped Vietnam export several varieties of fruit to the US. Viet Nam Rubber Group eyes profit rise Viet Nam Rubber Group targets an 8 per cent rise in revenues and 33 per cent rise in pre-tax profits this year, Nguyen Tien Duc, its deputy general director, said on Tuesday. At a meeting held to review last year’s performance and discuss this year’s targets, VRG settled for a revenue and profit targets of VND23 trillion (US$1 billion) and VND5.5 trillion ($242 million). Last year it had achieved 120 per cent and 136 per cent of the corresponding targets. It expects its core business, natural rubber, to be the main source of revenue, accounting for VND15.5 trillion. VRG also generates income from its industrial zones, wood business and manufacture of rubber products. VRG plans to list on UPCoM as early as April and on the HCM Stock Exchange in June or July. It is also hoping to sell another 11.88 per cent of its equity to strategic investors, some 50 million shares to its employees and 830,000 shares to its trade union. PG Bank allowed to raise charter capital State Bank of Viet Nam (SBV) has allowed Petrolimex Group Commercial Joint Stock Bank (PG Bank) to raise its charter capital from VND3 trillion (US$132 million) to VND3.165 trillion. The capital can be increased by issuing shares to distribute dividends among shareholders from unallocated after-tax profits. The plan to increase the charter capital was approved at the Annual General Meeting through Resolution 02/2017/NQ-DHDCD-PGB, dated October 17, 2017. The issuance volume is 16.5 million shares corresponding to the exercise ratio of 5.5 per cent. Shareholders will not be allowed to transfer this right; the shares will be freely transferable after being issued. According to PGBank, the increasing charter capital will be used to invest in infrastructure and modernising banking technology (VND65 billion) and expanding the scale of lending (VND100 billion). SBV requires PG Bank to implement the raising of charter capital in line with the law, including compliance with shareholding limits of shareholders as stipulated in the Law on Credit Institutions and guiding documents of SBV after increasing charter capital. After completion of procedures for issuing shares to increase the charter capital, PGBank will be responsible for submitting the application for amendment of charter capital in the licence to SBV (through the Banking Inspection and Supervision Agency). PVOil launches cashless payment app for drivers PetroVietnam Oil Corporation (PVOil) on Tuesday launched PV Oil Easy, an application for smartphones and tablets that allows users to buy petrol and manage their purchases via a QR code. Cao Hoai Duong, general director of PVOil, said the app was a solution for its member corporate customers to manage petrol purchases of drivers and for drivers to buy petrol without paying in cash or with credit cards. All transactions will be recorded via the QR code. Duong said many firms were facing difficulties in managing the petrol purchases of their drivers due to a huge volume of bills, and the app would make it easier to manage. On Tuesday, Vietel Post signed up for PVOil, becoming one of the first customers to use the app. HCMC farm production shoots up The average production value per hectare of agricultural land in HCMCity has increased year after year even as the area shrank, according to the city Department of Agriculture and Rural Development. Last year the value increased by 10.9 per cent to VND450 million (US$19,806) per hectare, among the highest in the country. This was a result of shifting the farming structure towards an urban-oriented model and increasing the use of sophisticated technologies. Thus, in some places, unproductive rice and sugarcane growing areas became farms growing bonsai, flowers and vegetables, bringing farmers higher profits. More than 389ha of lands were converted last year, up 385.5 per cent, and farmers grow vegetables and fruits in them. Vegetables bring revenues of VND1-1.4 billion per hectare annually; orchids, around VND2 billion; dairy cows (at a scale of 20 head per household), VND800 million; shrimp, VND2.7-3 billion per hectare; and ornamental fish, VND10-12 billion per hectare. These farmers earn 30-40 per cent profits. According to the department, vegetables were grown on a total of 17,270ha, 12.4 per cent up from 2016, with the output rising 14.3 per cent to more than 419,410 tonnes. The city also had around 2,300ha of land under flowers and ornamental trees, up 7 per cent. There were 142,653 cows, a year-on-year decrease of 6.6 per cent, and 343,300 pigs, a decrease of 4.6 per cent, it said. Aquaculture and seafood output rose by 5.5 per cent. The city exported 18.2 million ornamental fishes for $20 million, a year-on-year increase of 21.2 per cent, it said. Agriculture accounted for only 0.8 per cent of the city’s economy, but it was worth VND19.6 trillion, comparable to one of the country’s larger agricultural provinces. Its agro-forestry and fisheries sectors expanded at 6.3 per cent, 2.2 times the national average. This year, the farm sector would strive to raise average production per hectare to VND500 million and grow agro-forestry and fisheries by 6 per cent, the department said. To achieve its targets, it said the city would continue its agricultural restructuring, especially enhancing the use of high-tech methods including bio-technology to provide safe and quality products. Ha Noi’s export value up 24% in January Capital city Ha Noi gained a year-on-year growth of 24 per cent in export value to reach US$1.05 billion in January. The export value from the state-owned sector was $139 million, up 9.8 per cent; it was $352 million from the private sector, up 16.6 per cent; and $556 million from foreign direct investment, up 33.6 per cent. In January, all key export items achieved strong growth in export value, including agricultural products (up 3.6 per cent against the same period last year); computer, components and peripherals (up 68.1 per cent); transport means and components (up 12.7 per cent); machinery and components (up 21.8 per cent); and glass and glass products (up 25 per cent). Ha Noi’s export value has increased sharply in recent years because businesses in the city have taken advantage of the recovery of major economies of the world, such as the United States, Japan, the European Union and China, reported kinhtedothi.com.vn. Meanwhile, municipal authorities have also come up with solutions to support enterprises in promoting exports, including programmes connecting banks with enterprises, land and tax policies and policies encouraging enterprises to apply advanced technology for production, processing and consumption. Nguyen Gia Phuong, director of Ha Noi Investment, Trade and Tourism Promotion Centre, said to support enterprises in expanding export markets and promoting brand products, the centre had continuously organised delegations of enterprises to join large international fairs and paid special attention to markets that signed free trade agreements with Viet Nam. The capital city has welcomed foreign enterprise delegations to Ha Noi to facilitate trade cooperation with local businesses to support trade villages, agricultural production enterprises and textiles and garment companies in seeking customers. However, it will not be easy for Ha Noi to reach the growth target of 7.5-8 per cent in export turnover set by the People’s Committee of Ha Noi for this year against last year because importing countries have trade barriers and quality standards for imported goods from foreign countries, including Viet Nam. Moreover, local enterprises have not signed long-term contracts. Nguyen Thanh Hai, deputy director of Ha Noi Department of Industry and Trade, said the department and the People’s Committee would continue supporting enterprises in taking loans and entering export markets. Specifically, they would strengthen trade promotion activities in Japan, mainland China, Hong Kong and Germany, he said. "Ha Noi welcomes delegations of foreign import enterprises to help local businesses diversify the export markets," he said. The department would also continue administrative reforms, reduce business and investment conditions and improve the quality of online public services. In the process of restructuring the export sector, the department would focus on improving the competitiveness of products, efficiency of investment and enterprises’ ability to join the global value chain. Experts said to increase the export value, enterprises should renew models of products according to the demand on markets and increase competitiveness by cutting production costs. They also need to improve product quality and develop the brand as well as promote cooperation with local businesses. In addition to this, they should take advantages in export opportunities from free trade agreements that Viet Nam has signed with foreign partners. Quang Tri calls for investment in renewable energy The central province of Quang Tri is giving top priority to luring investment in renewable energy to fully tap its potential for wind and solar power. The provincial People’s Committee has approved four wind power projects with a combined capacity of 120 MW. By 2030, the province hopes to have five more wind power projects with a combined capacity of 150 MW. Quang Tri has been calling for investment in 17 solar power projects with a combined capacity of over 930 MW on 1,400 hectares. Besides, the province priorities other fields such as thermal power, wood product processing and export, eco and sea-based tourism, and hi-tech agriculture. In 2018, focus will also be put on restructuring enterprises. It has over 3,000 registered firms. However, only over 2,600 are operational, third fourths of which are micro- and small-sized construction companies. They have faced financial difficulties due to tightened public investment. According to Nguyen Van Hung, Secretary of the provincial Party Committee, the province will issue policies to support local firms, particularly micro- and small-sized enterprises in 2018. It will focus on accelerating administrative reform, improving investment climate, developing socio-political organisations in enterprises, promoting local culture and private sector. According to the provincial Department of Planning and Investment, 330 domestic and foreign investment projects had been granted as of early February 2018, worth over 69.5 trillion VND (3 billion USD). They include 14 foreign direct investment projects, worth over one trillion VND (44 million USD). Local firms contribute 47.6 percent of Gross Regional Domestic Product (GRDP) and create jobs for 35,500 local labourers. EVN’s power generation rises 12 percent in January The Electricity of Vietnam (EVN) group said it generated an estimated 14.6 billion kWh of electricity in January, a year-on-year increase of 12.06 percent. Produced and imported electricity in the period reached 17.1 billion kWh. Transmission on the North-Central and Central-South 500kV lines was 1,900MW and 3,500MW, respectively, bringing about 50.5 million kWh to the South per day, meeting 19.3 percent of the demand in the region. EVN coordinated with the General Department of Irrigation under the Ministry of Agriculture and Rural Development to discharge water through generating electricity from Hoa Binh, Thac Ba and Tuyen Quang hydropower plants to serve agriculture production in the winter-spring crop 2017-2018 in the northern midland and delta areas. The group said the average power consumption in February is estimated at 477million kWh/day, and the maximum load capacity will be close to 28,110MW. EVN plans to run hydropower and thermal power plants to their full capacity to ensure water supply for agricultural production in the winter-spring crop 2017-2018 in the North. It will work to ensure safe operation of the transmission system, especially the North-South 500kV transmission line. Favourable conditions required to increase new firms Favourable conditions are needed to increase the number of new businesses and startups, thereby realising the target of 1 million enterprises by 2020, an official has said. The State should continue speeding up administrative reform, improving business climate and legal framework, Nguyen Bich Lam, General Director of the General Statistics Office (GSO) said at a press conference in Hanoi on February 6. Due attention must be paid to restructuring the economy, equitising state-owned enterprises, luring more foreign direct investment, and facilitating the development of tge private sector, while enforcing the Law on Support for Small- and Medium-sized Enterprises, Lam said. Inspection should be strengthened to ensure firms will make reports and provide timely and accurate information for competent agencies for better management, he added. Pham Dinh Thuy, Director of the GSO’s Industrial Statistics Department, underlined the need to increase inspections and supervision to ensure businesses operate effectively and legally. Dialogues between State management agencies at all levels and enterprises should be conducted regularly, thus bettering the legal framework and policies to support enterprises, Thuy said. According to the department, by December 31, 2017, Vietnam has 561,064 operating enterprises, up 11 percent year on year. The highest increases in the number of operating businesses were seen in Bac Giang, Thanh Hoa, Hung Yen, Ben Tre, Bac Ninh, Vinh Phuc, Binh Duong, and Da Nang. In 2017, the number of new firms set a record high of 126,859, with a combined registered capital of nearly 1,295 trillion VND (57 billion USD), year on year rises of 15 percent and 45 percent. Binh Duong: industrial production index surges by 24.1 percent The southern province of Binh Duong’s index of industrial production (IIP) rose 24.1 percent year-on-year in January, said Nguyen Van Danh, Director of the provincial Department of Industry and Trade. Danh attributed the surge to a favourable investment climate and improved competitiveness and administrative reform, which have helped lure investors. According to the agency, the highest increases were seen in the mining industry at 39.4 percent; processing, 24.3 percent; clothing, 22.3 percent; medicine, pharmaceutical chemistry and herbal materials, 22.2 percent; rubber and plastic products, 41.4 percent; metal production, 27.2 percent; and electronic products, computers and optical devices, 13.1 percent. Nguyen Thanh Lam, Director of the Nha Thy Company in Thu Dau Mot district said the company’s employees worked extra shifts to make time up for the upcoming Lunar New Year (Tet) holiday, ensuring its production schedule in the first quarter, while increasing their incomes. The employment index in the province also grew by 6.8 percent in January, according to the department.- Vietnam, Indonesia step up cooperation in coffee sector The Embassy of Indonesia in Hanoi and the Vietnam Coffee and Cocoa Association on February 6 hosted a workshop to boost Indonesia - Vietnam cooperation in the coffee sector. The event was attended by representatives from Indonesian diplomatic agencies in Vietnam, ministries, sectors and 25 Indonesian and Vietnamese firms, including Kapal Api Group, Sabani International, Me Trang Coffee, Minh Tien Coffee, Thai Hoa Coffee and Hapro Distribution. Addressing the opening ceremony, Indonesian Ambassador to Vietnam Ibnu Hadi said the event aims to enhance ties between Indonesia and Vietnam in the coffee sector, contributing to realising the two-way trade target of 10 billion USD by 2020. According to the Ambassador, Vietnam and Indonesia recorded an increase of 16.36 percent in trade value to 6.5 billion USD in 2017, of which Vietnam imported 3.63 billion USD worth of products from the country, up 22.52 percent year on year. Vietnam and Indonesia are the world’s second and fourth biggest coffee exporters, respectively. The two ASEAN members produce 80 percent of the world’s coffee output, Hadi said. Indonesia has 1.25 million hectares of coffee growing area, while Vietnam’s figure is 662,000 hectares. Hanoi’s export value up 24 percent in January The capital city of Hanoi gained a year-on-year growth of 24 percent in export value to reach 1.05 billion USD in January. The export value from the state-owned sector was 139 million USD, up 9.8 percent; it was 352 million USD from the private sector, up 16.6 percent; and 556 million USD from foreign direct investment, up 33.6 percent. In January, all key export items achieved strong growth in export value, including agricultural products (up 3.6 percent against the same period last year); computer, components and peripherals (up 68.1 percent); transport means and components (up 12.7 percent); machinery and components (up 21.8 percent); and glass and glass products (up 25 percent). Hanoi’s export value has increased sharply in recent years because businesses in the city have taken advantage of the recovery of major economies of the world, such as the United States, Japan, the European Union and China. Meanwhile, municipal authorities have also come up with solutions to support enterprises in promoting exports, including programmes connecting banks with enterprises, land and tax policies and policies encouraging enterprises to apply advanced technology for production, processing and consumption. Nguyen Gia Phuong, Director of the Hanoi Investment, Trade and Tourism Promotion Centre, said to support enterprises in expanding export markets and promoting brand products, the centre had continuously organised delegations of enterprises to join large international fairs and paid special attention to markets that signed free trade agreements with Vietnam. The capital city has welcomed foreign enterprise delegations to Hanoi to facilitate trade cooperation with local businesses to support trade villages, agricultural production enterprises and textiles and garment companies in seeking customers. However, it will not be easy for Hanoi to reach the growth target of 7.5-8 percent in export turnover set by the People’s Committee of Hanoi for this year against last year because importing countries have trade barriers and quality standards for imported goods from foreign countries, including Vietnam. Moreover, local enterprises have not signed long-term contracts. Nguyen Thanh Hai, Deputy Director of the Hanoi Department of Industry and Trade, said the department and the People’s Committee would continue supporting enterprises in taking loans and entering export markets. Specifically, they would strengthen trade promotion activities in Japan, mainland China, Hong Kong and Germany, he said. "Hanoi welcomes delegations of foreign import enterprises to help local businesses diversify the export markets," he said. The department would also continue administrative reforms, reduce business and investment conditions and improve the quality of online public services. In the process of restructuring the export sector, the department would focus on improving the competitiveness of products, efficiency of investment and enterprises’ ability to join the global value chain. Experts said to increase the export value, enterprises should renew models of products according to the demand on markets and increase competitiveness by cutting production costs. They also need to improve product quality and develop the brand as well as promote cooperation with local businesses. In addition to this, they should take advantages in export opportunities from free trade agreements that Vietnam has signed with foreign partners. VNN |
