Da Nang: Hundred million USD real estate transfer deals made quietly A series of real estate projects in advantageous positions in  About 10 years ago, the central city of The names of Hyatt Regency, Montgomerie Links, One Poera Danang, Danang Golf Club and Indochina Riverside were the most wanted at that time.
A series of groundbreaking ceremonies starting construction of the huge projects, capitalized at hundreds of millions of dollars, took place in the ‘golden land plots’ in the central area of the city. However, the $200 million As the real estate market froze due to the economic crisis, the promising projects on the golden land plots became dormant. However, analysts say they will revive soon as investors, who have noted the first signs of real estate recovery, have begun injecting money into the projects. Since late 2015, many big tycoons from Hyatt Regency project, with 400 villas, hotel rooms and apartments, for example, has been sold by Another big deal made recently was the takeover of One Poera Danang, the 5-star street-front hotel with 200 rooms. The buyer was Success Dragon which paid $31.4 million. Many other projects along the coastal street of Vo Nguyen Giap, including the Anh Duong Complex, located in a very advantageous position, also changed hands in late February. The most valuable deal was the transfer of the World Trade Center Da Nang complex with the announced value of $325 million. Tran Ngoc Thanh, General director of Dat Xanh Mien Trung, said that 70 percent of projects had restarted after many years of interruption. Viet Tai, VNN |
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“Ha Long Bay on Land” in Vietnam Let's discovery the following destinations in Vietnam, which are dubbed "Ha Long Bay on Land". Duong Coc lake, Thanh Hoa province  It is also called Thach Minh lake, with an area of 57 hectares and a depth of up to 40 meters. The lake is located in Mang Den valley, surrounded by Nac moutains and Trau hill. The water is clean and green, and always full around the year even in dry season. Inside the lake, there are 3 small islands named Khang Cao, Giang Ruou, and Vit in the center, which make the shape of a triangle. The lake is the center of 3 sources of waters from the Den mountain stream, lake and the groundwater sources beneath the lake. The weather in Duong Coc is cool and fresh. Local people set fires to be warmer, creating a sparkling light. Coming here, visitors can sightsee and spend time with their family. They can go fishing and have a party on the bank of the lake but they need to be careful and clean all of the traps. The lake still remains pristine. Visitors will be surprised by the wonderful landscape and mysterious lake. Phu Ninh Lake, Quang Nam Province  Phu Ninh lake, 7 km from Tam Ky Town in the central province of Quang Nam, is a man-made reservoir constructed for storing water used mainly for irrigation with the capacity of nearly half a billion cubic meters of water. The water surface area of the lake is 3,433 hectares and there are 6,000 hectares of that surround the lake with 30 beautiful islets and peninsulas. Construction of the lake started in 1977 and was completed 10 years later. It has satisfied the old-age dream of the people of Tam Ky and the neighboring areas supplies enough water for daily use and irrigation to the local rice paddies. Besides the advantages of having irrigation, hydroelectric power, aqua- culture, forestry and the harmonization of ecological environment, the Phu Ninh Lake is also a promising area for future development of the tourist industry. During the hot summer months when the temperatures in Tam Ky sour into the low 30oC, the Phu Ninh Lake area remains cool because of the large water surface of the lake. The area contains many green "oasis" with various kinds of flora: 621 species belonging to 438 different branches, in which there are many valuable and rare species such as: erythrophloeum fordi, Southern Kingwood, and 170 species of pharmaceutical plants. The fauna of Phu Ninh area is also diverse with: 80 species of birds. 34 species of animals, 26 species of reptiles and some rare animals: Red-faced monkey, red wolf, horse bear, antelope, white head laughing thrush and dapple deer, pheasant... which are suitable for studies and ecological tourism. From the birds eyes view, the lake looks like a twinkling huge water frying pan. Visitors can go around the oasis by motor boat and enjoy the poetic beauty of the boundless sky and water along with the greenery of the mountains and forest. In Chap Tra Valley, in the middle of the quiet surface of the lake, there is an "open cast" mineral water spring. This pure water stimulates human digestion, elates one’s mind and is effective in the treatment of diseases relating to liver, bladder, muscle and joints. Tuy Lai, Hanoi  Tuy Lai commune in My Duc district, Hanoi, has interwoven limestone mountains, covering hundreds of hectares, which are connected to four lakes, creating romantic landscape. This place is called “small Ha Long Bay”. Around 40km from the centre of Hanoi, Tuy Lai lake covers hundreds of hectares and is surrounded by forest, mountains, dozens of small islands and hundreds of caves which create a romantic scenery. This is one of the rare places in the capital city that still preserves natural beauty. Buu Long, Dong Nai Province  Buu Long Park, which is about five kilometers from the center of Bien Hoa City in Dong Nai Province, is touted as a must-visit retreat for people who want to escape the noise in cities and shrug off their household chores on weekends after a week of hard work. The park on Huynh Van Nghe Street is home to Long An and Long Van lakes and other sites of serenity. Covering an area of 18.5ha, Long An Lake at the foot of Long An Mountain was formed after hundreds of years of stone exploitation by local people. Trees and large rocks in the clean-water lake create a romantic and picturesque scenery. This is why the lake is called a miniature of the UNESCO-recognized Halong Bay in the northern province of Quang Ninh. Lying between Long An Mountain and Binh Dien Mountain, Long Van Lake is smaller but looks more peaceful than Long An Lake. In the center of Long An Lake is a bridge where visitors can take a voyage around the two lakes on a normal boat or a swan pedalboat. Thung Lung Tinh Yeu (Love Valley) is one of the must-see sites of Buu Long Park as it reminds visitors of a romantic valley of the same name in the hilly city of Dalat. Every year, the valley woos a large number of tourists to its beautiful flower gardens, winding roads, waterfalls and a lake where tourists can walk on flat rocks put inside it to feed fish. Buu Long Park has places for worshipping. Buddhists can visit Buu Phong Pagoda built in the 17th century on the peak of Binh Dien Mountain and Long Son Thach Dong Pagoda. There are restaurants for visitors to enjoy food delicacies of different regions and a hotel to rest after a day of exploring the lakes, a zoo and other interesting site of Buu Long Park. Tam Coc, Ninh Binh Province  Tam Coc known as Ha Long Bay on land, boasts a breathtaking scenery. While Ha Long Bay features huge rock formations jutting out of the sea, Tam Coc has them jutting out of its rice paddies. Tam Coc covers a system of caves, limestone rocks of karst formation, and relics from prehistoric times ... on an area of 350.3 hectares of 4 communes Ninh Hai, Ninh Xuan, Ha Son and Yen Son of Ninh Binh province, 100 km south of Hanoi. Tam Coc means three caves, including Hang Ca (Fish Cave), Hang Giua (Middle Cave) and Hang Cuoi (Last Cave). The boat trip to all three caves takes about two hours. If you are lucky, sometimes you can see mischievous monkeys or mountain goats. This is a peaceful and scenic trip... Landscapes like paintings are created by vast rice paddies and towering limestone mountains. Specifically, Tam Coc will leave deep impressions on visitors in the autumn when the rice fields are yellow with the harvest extending from feet of the rocks until the river. Thung Nai, Hoa Binh Province  Located in Cao Phong district, Hoa Binh province, just about 110km north-east of Hanoi center, Thung Nai is a popular destination for a weekend retreat. Once upon a time, Thung Nai was a great valley covered by the vast forest, which is home to numerous deer. Hence, the local people call it “Thung Nai” means “the Valley of deer”. Since the 1980s when the Da River hydropower plant was built, Thung Nai has become a huge lake containingwater used for the operation of the hydropower plant. All initial surrounding high mountains are now floating green islands and create poetic and magnificent scenery. Thung Nai is called “the second Ha Long Bay on land” in the North of Vietnam (the first position was taken by Tam Coc Bich Dong in Ninh Binh province). Waking up in the morning, tourists can refresh themselves by breathing the fresh air and enjoying the natural beauty. A boat tour to discover sites around the lake in Thung Nai like Ba Chua Thac Bo temple, Thac Bo grotto (with a lot of stalactite in various shapes), Ngoi Hoa village of Muong people is also a good option.Tourists who come here on Sunday morning can drop by Thac Bo floating market, just 20 minutes by boat from the Windmill, where they can buy fresh fish, shrimp caught by local people. Thung Nai is said to be most beautiful in the autumn, when the water level reaches the highest and the valley is filled with the romantic lake water. Try visiting Thung Nai this time to best enjoy the landscape. Hon Nghe Island, Kien Giang Province  Hon Nghe Island is located in Hon Nghe commune, Kien Hai district, Kien Giang province. This island is known as “the elliptical paradise” by backpackers (because it has oval shape on the map). It was made of sandstone, with peaks over 300m. Hon Nghe Island is in cool weather all year-round with an ecosystem of sea, mountain, forest, etc. This is considered an ideal relaxing place. The highlight of Hon Nghe island is on Lau Chuong mountain which has a giant Buddha statue of 20 meters. It was built in 1974 and is compared toa lighthouse for boats and ships. Hon Nghe Island is called “Ha Long bay of the south”. Compiled by Pha Le, VNN |
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BUSINESS IN BRIEF 24/7 Masan to triple fish sauce production on Phu Quoc  Nguyen Hoang Yen, deputy general director of Masan Consumer Corp, shows visiting reporters the first-grade fish sauce made at Masan Phu Quoc fish sauce plant Listed firm Masan Consumer Corp (MSC) under Masan Consumer Holdings has said it will invest heavily in expanding its fish sauce making facility on Phu Quoc Island off mainland Kien Giang Province to treble its capacity in the years to come. MSC did not clarify how much investment would go to the expansion plan but said the plant currently has five workshops with 488 fish vats that can ferment and process a combined 10,000 tons of fish. Between 15,000 and 25,000 liters of fish sauce is extracted from the vats a day, MSC told reporters who took part in a field trip to Masan Phu Quoc sauce plant last week on the occasion of the ninth anniversary of the plant. Masan can produce only 15% of the highest grade of fish sauce it needs and collects the remainder from other fish sauce production plants nationwide, including Phu Quoc, Phan Thiet and Nha Trang. Nguyen Hoang Yen, deputy general director of MSC, said the company applies strict requirements for suppliers to ensure consistent quality. As for MSC’s future business plan, Yen said apart from increasing its domestic market share, the company looks to serve 250 million consumers in ASEAN countries, including Vietnam, Thailand, Myanmar, Cambodia and Laos, through a strategic partnership with Thailand’s Singha Asia Holdings. In 2015, MSC posted net revenue of VND13.2 trillion (US$588.5 million), up 1% from 2014, and gross profit of more than VND2 trillion. By end-2015, the company had owned eight brands with sales totaling more than VND500 billion each, including Omachi, Chin-su, Kokomi, Vinacafe, Wake-up, Tam Thai Tu, Nam Ngu and 247. Earlier this year, Masan Beverage One-member Co, a subsidiary of Masan Consumer Corp, raised its holding in Vinacafe Bien Hoa to 60.16% and in Vinh Hao Mineral Water JSC to 84.23%. Masan Consumer Corp now holds 70% of Vietnam’s FMCG market with 2,300 salespeople, 190,000 points of sale for food and 100,000 points for beverages. The company put its fish sauce market share at 65%. Ministry issues FDI inspection guidelines The Ministry of Planning and Investment has issued a circular guiding inspection and assessment of foreign direct investment across the country. Circular 09/2016/TT-BKHDT aims to ensure foreign-invested firms strictly observe relevant regulations and timely detect violations. Under the circular dated June 30, checks will apply to capital contribution, implementation process, realization of investment targets, technology transfer, implementation of commitments and fulfillment of investment requirements at foreign-invested firms. The circular, which will come into force 45 days after the issuance date, also includes checks on fulfillment of tax obligations as well as regulations on labor, use and management of land, natural resources and environmental protection. There will be routine and snap inspections into foreign-invested firms. The circular stipulates that checks must be made in accordance with the prevailing regulations. In addition, they should not overlap and affect operations of enterprises under inspection. Ministries, provinces and cities, and agencies will implement the circular and assess foreign investment in the fields under their management. Vinacas proposes development fund for cashew industry The Vietnam Cashew Association (Vinacas) has underscored the need to set up a development fund for the local cashew industry to maintain its sustainable growth and help Vietnam consolidate its position as the world’s biggest cashew nut exporter. The fund will stabilize production and tighten cooperation between farmers and processing firms and exporters in the sector, Vinacas said at its ninth congress in HCMC last week. The fund will be financed by the Government, processors and exporters, and other sources. Vinacas proposed enterprises contribute US$1-2 to the fund for every ton of cashew nuts they process and export. Vinacas said 50-70% of the fund would go to programs intended by promote intensive farming and improvement of cashew farms, research and development of high-yielding seedlings and financial support for farmers. The remainder will finance processing technologies and manufacturing machines, product quality and food safety improvement, and sales promotion. According to the Ministry of Agriculture and Rural Development, Vietnam shipped abroad US$1.2 billion worth of 156,000 tons of cashew nuts in the first half of this year, up 11% and 4% year-on-year, respectively. Export prices averaged US$7,642 per ton in the January-May period, rising by nearly 8% from the year earlier period. Vinacas projected the industry would post export revenue of US$2.7 billion this year, around US$200 million higher than last year. If things go well, 2016 will mark the tenth year in a row Vietnam is among the world’s biggest cashew exporters, accounting for 50% of global cashew exports. At the congress, Vinacas elected its executive board and work out plans for the 2016-2020 term. Nguyen Duc Thanh was re-elected Vinacas’ chairman for the period. Tourist arrivals in Quang Binh plunge in H1 Domestic and foreign visitors to Quang Binh Province reached only 1.3 million in the first half of this year, dropping by 20% year-on-year, provincial vice chairman Tran Tien Dung said. Dung mentioned the sharp fall in tourist arrivals at a conference held by the Government Office in Hanoi last Friday to discuss orientations for developing the country’s tourism industry into a spearhead industry. Quang Binh is one of the provinces having great potential to develop tourism, especially cave discovery tours. The province has been positioned on the world’s tourism map as an attractive and safe destination for foreign tourists, heard the conference. In the 2011-2015 period, nearly 9.2 million tourists visited Quang Binh with an average growth rate of 37% per year. Particularly, the central province welcomed more than one million tourists in 2012, 2.7 million in 2014, and three million last year. However, mass fish deaths along the central coast in early April dealt a blow to Quang Binh, which is home to the World Heritage site of Phong Nha-Ke Bang National Park. Dung acknowledged that although the province has adopted many solutions to coping with the aftermath of the huge fish kill such as demand stimulus programs, discount tourism products and services and a 30% discount on admission tickets to caves, the province had been unable to reverse the decline. Because of the drop, construction of hotel and restaurant projects is likely to be put on hold. Many lodging facilities and tourism service providers have downsized employment by up to 50% and most of their skilled workers have left for big cities, causing a lack of human resources in the province. The tough situation of Quang Binh’s tourism sector has hit 4,000 direct and 7,300 indirect jobs. The province suggested the Government quickly solve the impact of the environmental incident caused by the Formosa Ha Tinh steel complex, recover marine life and tourism industry, and refrain from placing polluting industries in the province. Another central province, Nghe An, also suffered from the impact of the fish deaths. A report showed that the number of tourists to the province slid by 13-15% and its tourism revenue dropped by 17-20% over the same period last year in the first six months of this year due partly to the environmental incident. Imported footwear dominates local market Although Vietnam is the world’s third biggest leather and footwear exporter, the industry has almost lost the home market to imported goods which hold 60% market share. The problem was pointed out by the Light Industry Department under the Ministry of Industry and Trade at a conference held last week to promote leather goods and footwear exports. Statistics showed leather and footwear products are one of Vietnam’s leading export earners with outbound sales accounting for 8-10% of the country’s total. In the first half of the year, the sector fetched export revenue of US$7.94 billion, leaping 95.3% year-on-year. With 800 enterprises mainly located in the southern region, Vietnam is among the world’s top four leather footwear producers and third largest exporter by turnover after China and Italy. Truong Thi Thu Ha, deputy director of the department, said Vietnam’s footwear products are present in over 50 markets, including the European Union (EU), the U.S. and Japan. Handbags are shipped to 40 countries with the U.S. being the biggest importer with 41.6%. However, the sector is facing mounting competition from imports on the home market when it meets only 40% of local demand for about 150 million pairs of shoes per year. Most domestic footwear products belong to the low and middle grade segments as large enterprises focus on exporting markets. Diep Thanh Kiet from the Vietnam Leather, Footwear and Handbag Association (Lefaso) warned of a risk of the local leather and footwear markets being dominated by imports after the Trans-Pacific Partnership (TPP) trade agreement takes effect as many imported goods, including leather and footwear, from the member states will enjoy tax exemptions in Vietnam. Kiet said the sector will face tough requirements provided by free trade agreements (FTAs) due to chronic problems like a lack of capital, outdated technology, poor governance and low productivity. Besides, labor cost will go up in the coming time as a result of region-based minimum wage spikes. Lefaso as well as agencies under the ministry are of the opinion that the leather and footwear sector can beat this year’s export target of US$14 billion, up 16% year-on-year, owing to opportunities from the ASEAN Community and FTAs. In particular, Vietnam enjoys tax breaks for leather and footwear exports to South Korea thanks to an FTA. Besides, 70% of enterprises depending on foreign equipment, technology, product design and material supply can enjoy an equipment import tax of 0%. The industry looks to annual growth of 8% in the 2020-2030 period, as well as export revenue of US$54.2 billion and increases of about 4.5 times in shipments and over 60% in domestic material supply by 2030. Techcombank receives many int’l awards The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has recently received a number of awards from prestigious international financial organisation. The titles that the bank has won included “Vietnam’s Best Bank in 2016” and “Platinum Award for Best Domestic Bank” from FinanceAsia as well as “Best Bank in Vietnam 2007-2016”, “Best Trade Finance Bank in Vietnam” and “Best Bond House in Vietnam” from the Alpha Southeast Asia magazine. According to its unaudited business report, Techcombank’s pre-tax profit approximated 2.04 trillion VND (91.12 million USD) last year, rising by 43.8 percent from 2014. Meanwhile, the net interest income climbed 22.8 percent yearly thanks to credit growth of almost 30 percent. Increased total income, controlled operating expenses and more effective operations helped cut down the cost/income ratio for the second straight year, from 47.2 percent in 2014 to 39.5 percent in 2015. Techcombank’s total assets were valued at over 192 trillion VND (8.57 billion USD) in 2015, up 9.2 percent from the previous year. Last year, the bank mobilised 142.24 trillion VND (6.35 billion USD) from its clients, up 8 percent annually, while outstanding loans were at more than 111.62 trillion VND (4.98 billion USD), nearly 31.32 trillion VND (1.4 billion USD) higher than 2014. Techcombank currently has 312 branches and transaction offices, over 1,200 ATMs and 1,600 transaction points, serving more than 4 million people and 102,000 enterprises. Thai trade fair to open in Can Tho city Top-quality products from Thailand will be nudged closer to Vietnamese consumers, especially those residing in the Mekong Delta region, as the Thai Trade Fair and Exhibition 2016 is scheduled at Can Tho’s International Exhibition Fair Centre, from July 22-24. The event, jointly held by the Thai Trade Centre in Ho Chi Minh City and the Vietnam National Trade Fair and Advertising Company, is part of the activities to celebrate the 40 th anniversary of Vietnam-Thailand diplomatic ties. It will help boost bilateral trade, towards raising trade revenue to 20 billion USD by 2020, while creating opportunities for both Vietnamese and Thai enterprises to expand their networks and branch out business partners. Along with agricultural machines, fertilisers, beverages, automobile and motor spare parts, cosmetics and health care, Thai businesses will introduce their tourism and education services at the event. Cultural performances, cuisine showcases and raffles will also be included at the fair. Kien Giang boosts exports The southern province of Kien Giang strives to earn 260 million USD from exports in the last five months of 2016 to fulfill its yearly target of 440 million USD. Chairman of the provincial People’s Committee Pham Vu Hong directed relevant agencies to enact measures to boost exports, improve the business environment and competitiveness, and support businesses, especially temporarily inactive ones. The locality will enable exporters to gain access to loans while increasing trade promotion activities, reinforcing traditional markets and seeking new potential ones. Particularly, businesses will receive assistance to produce high-quality goods as well as seek partners to boost exports in 2017. Apart from developing the local staples of rice and seafood, the province will create the best conditions for investors in industrial parks to engage in export activities, thus increasing export turnover. A customs department is taking shape at the Thanh Loc industrial park to make it easier for businesses to complete all necessary export procedures. According to the provincial Department of Industry and Trade, the local export turnover reached 180 million USD in the first six months of 2016, a year-on-year rise of 6.58 percent. Businesses exported their commodities to over 30 markets, a reduction of 10 markets against the same period last year. Key markets include Ghana, Indonesia, China, the Philippines, and South Africa. Director of the department Huynh Van Ganh said businesses are now lacking capital to buy material and feed processing activities. If there is no solution to this issue, the province’s export turnover in 2016 could decrease by 40-60 million USD, failing to reach the yearly target, he added. He suggested businesses boost restructuring and improve capital management. JETRO explores Tay Ninh business opportunities Deputy Managing Director of the Japan External Trade Organisation (JETRO) Office in Ho Chi Minh City Fukagawa Atsuko held a working session with authorities of the southern province of Tay Ninh on July 18 to explore local investment environment and opportunities. Nguyen Thanh Ngoc, Vice Chairman of the provincial People’s Committee, briefed his guest about the potential of land, infrastructure and investment attraction in the locality. Apart from calling for investment in hi-tech industry, rubber, cassava starch, animal husbandry, fisheries, logistics, and bonded warehouses in economic and border gate areas, a land site spanning nearly 3,000ha is earmarked for hi-tech agriculture, mostly vegetables and fruits for export, he said. According to the provincial People’s Committee, a spacious land area and synchronous infrastructure will provide Japanese firms with long-term business opportunities. Fukagawa Atsuko said Tay Ninh is her first destination to learn about investment climate, and following the visit, the office will offer insightful information to Japanese enterprises which want to seek business opportunities in Tay Ninh. The JETRO office in Ho Chi Minh City was established in 2000 with the aim of promoting trade and investment with southern cities and provinces. JETRO is a non-profit organisation which was established by the Japanese government under the watch of the Japanese Ministry of Economy, Trade and Industry. It has 110 representative offices at home and abroad, working as linkages to boost trade and investment between Japan and countries worldwide. As of June 2016, Tay Ninh’s industrial and border economic zones attracted 183 foreign-invested projects worth more than 3.6 billion USD, five of them with a registered capital of over 33 million USD run by Japanese firms. Pick FDI with care: Deputy PM Deputy Prime Minister Vuong Dinh Hue said Viet Nam must be selective in attracting foreign direct investment (FDI) to ensure it's suitable for the nation's economic restructuring and development of the private sector. At a conference of the planning and investment sector held on Saturday in Hai Phong, Hue said careful selection of FDIs is pressing for Viet Nam in order to achieve the annual growth target after below-par results in the first quarter. "FDI should not be attracted at all costs. It's time for Viet Nam to be selective," Hue said. Specifically, he said, that Viet Nam should attract FDI projects of high technology, having good governance and contributing to generating jobs and increasing income, as well as promoting the development of the private sector. Prime Minister Nguyen Xuan Phuc, speaking at the Ministry of Industry and Trade's conference held earlier last week, said Viet Nam should learn the lesson of the massive fish deaths caused by pollution from the Taiwanese Hung Nghiep Formosa Ha Tinh Steel Corporation when seeking FDI and economic development. Recently, the Ministry of Planning and Investment issued a directive on inspecting and evaluating FDIs, which aimed to ensure the operation of FDI projects in compliance with laws and the country's socio-economic development targets. Hue also stressed the importance of improving the business climate and promoting the development of the private sector, especially of small and medium-sized enterprises, which are at the heart of Viet Nam's economic growth. "Recovery of businesses will be a major driver for growth in the remaining months of the year and in the future," Nguyen Chi Dung, Minister of Planning and Investment said, adding that the ministry would focus on removing obstacles for business. Dung stressed that maintaining macroeconomic stability would be key, also, and controlling inflation would be given priority. Dung said the ministry would promote the disbursement of public investment and FDI, which would significantly accelerate economic growth. Statistics of the Foreign Investment Agency show that registered FDI totaled more than US$11.2 billion in the first half of this year, 105.4 per cent higher than in the same period last year. More than $7.2 billion were disbursed, up 15.1 per cent. The ministry said anticipated increases in FDI were among the favourable factors expected to promote growth in the second half of this year. Achieving this year's growth target was critical as this would become a foundation for the implementation of the nation's 2016-20 plan. To achieve the Government's 6.7 per cent growth target, gross domestic product (GDP) growth must be 7.6 per cent in the second half of this year – two percentage points higher than the first half's result (5.52 per cent). "This is a heavy task, which require a combination of drastic measures to be taken," Dung stressed. HoSE lists HALCOM shares Ha Long Investment and Consulting JSC (Halcom) listed 30 million shares (HID) on the HCM Stock Exchange (HoSE) in July. Based in Ha Noi since 2001, Halcom, with a charter capital of VND300 billion, is involved with consulting and investing in water supply, road and environment projects. Currently, Halcom is investing in phase two of a water plant in Thuan Thanh in Bac Ninh Province, the Hung Long water plant in Hung Yen Province, and a brick production project in Luong Son in Hoa Binh. In addition, the company has also contributed capital for an office building project in My Dinh, Ha Noi, and a BOT projects on transport and waste water treatment in Can Tho Province, as well as some water construction projects across Viet Nam. According to a Halcom representative, it is the first firm to introduce the corporate compliance programme (CCP) of the World Bank, and among a few firms in Viet Nam to implement a code of conduct that promotes high transparency in all its activities. The firm became the prime contractor implementing large projects and complex technical requirements for construction projects funded by the World Bank, as well as projects using ODA funds from the Asian Development Bank, the ministry of foreign affairs of Finland, and the Bank of Japan International Co-operation Agency (JICA). After a week, HID rose about 10 per cent to reach VND14,500 on HoSE on July 18. Toyota launches new Innova 2016 Toyota Motor Viet Nam (TMV) officially launched its most luxurious and rigidity new generation Innova 2016, in Ha Noi today. The new Innova has a more sophisticated design, with enhanced comfort and safety features. "With a sharp and sophisticated silhouette in the exterior, a subtle, comfortable and spacious interior as a passenger car, and a strong and smooth performance, safe driving features, but still full of joy, Innova 2016 will be an ideal partner in not only work and business usage but also during every journey with the owner's family," Yoshihisa Maruta, president of TMV, said. Innova first came to Viet Nam in 2006. It has been considered one of the best selling cars in the market, with a total sale of 92 units or accounting for over 80 per cent share of international multi-purpose vehicle market, and became the "car for every family" on every road in the country. NovaLand sees golden opportunity Domestic developer NovaLand has submitted a proposal to the Ho Chi Minh City People’s Committee to be the developer of the golden land area located on 164 Dong Khoi street in the heart of the second city. The land was previously invested by Hong Kong Land, the real estate development arm of Bermuda-based Jardine Matheson Group and its partner, Japan’s Sumitomo Realty & Development. This consortium proposed to pump more than $335 million into the site. However, after long delays, the foreign investors decided to withdraw from the project due to difficulties faced in land clearance and compensation plans. According to a source from the Ho Chi Minh City Department for Planning and Investment, NovaLand and its subsidiary Nova Bac Nam 79 has set up a joint venture proposing to be the new developer of the project. Nova Bac Nam 79 is known for its many key real estate projects, including the Madison complex and Park Avenue in Ho Chi Minh City and Ghenh Ban high-end villa resort in the central city of Danang. NovaLand is a respected developer with dozens of large-scale projects such as Sunrise City in Ho Chi Minh City’s District 7, and Lexington Residence, Tropic Garden and The Sun Avenue in the city’s District 2. Ho Chi Minh City now has around 20 prime land plots in a total of 50 hectares located on the busiest streets, which have been offered to attract investors. However, due to a variety of reasons, the selection of investors has been delayed for a long period of time. The prime reason was the difficulties faced in land clearance and compensation, and the complicated procedures required to proceed with the projects. Although many have been taken up by prestige investors such as Vingroup with Vincom A and B or Bitexco with The One. Recently Tan Hoang Minh Group was chosen as the investor for a 3,000-square metre project at 23 Le Duan street. In the second city, many others are on offer, such as the land plot between Nguyen Sieu – Hai Ba Trung and Dong Du streets, and another plot between Le Thanh Ton, Thi Sach, Cao Ba Quat and Dong Khoi streets. Maintaining export growth According to report of Ministry of Industry and Trade, Vietnam’s export revenue was estimated at US$82.64 billion in the first six months of this year, a year-on-year increase of 5.9%. The increase is low compared to the first six months last year (up 9.2% over the same period in 2014). Experts said that the decline in export prices, including the price of crude oil and industrial processing products, caused the situation. In the first six months, the world’s oil prices continued to drop, reaching a 13-year low of US$27, affecting activities in oil and gas exploitation, mining and exports. The revenue from crude oil over the past six months reached only US$1.1 billion, a year-on-year decrease of 46.6%. The global economy has recovered slowly with many key economies in the world facing difficulties, negatively impacting Vietnam’s exports. Trade volumes in many markets which were key importers of Vietnamese products are showing signs of decline or slow increase, including the Japanese market (down 11.3% in exports and 13.8% in imports) and Europe (a decrease of 1% in exports and 3% in imports). The exchange rate, interest rate and price movements of several fuels and materials for manufacturing in the world market also made the prices of many key export commodities in the country lower than the same period last year. Specifically, the exports of agricultural and fishery products in the world went down by US$507 million. In addition, the severe drought and saltwater intrusion affected agricultural exports in Vietnam. In this year’s winter-spring crop, rice cultivation area was down 31,300 hectares and rice production was down 1.3 million tonnes over the same period last year. Rice exports brought only US$1.3 billion in the past six months of this year, a year-on-year decrease of 2.7%. The world economy is still facing numerous difficulties as demand and export prices around the world continue to decrease. The situation requires the Vietnamese government, branches, agencies and localities to made more efforts to practically and effectively implement policies and measures to achieve the target of reaching 10% export growth this year. Solutions are also needed to bring the position of the country’s industry and trade higher in the global value chain. The international integration process not only brings opportunities for exports, but also highlights challenges, including outdated production technology, limited management capacity and weak competitiveness. In addition to improvement of the quality and competitiveness of products, both the State and enterprises should promote trade in order to effectively expand market. Trade promotion programmes need to be methodically organised, focusing on commodities with strengths in exports and countries that have signed free trade agreements with Vietnam, particularly major partners such as the United States, Japan and EU. It is essential to promote the role of Vietnamese agencies abroad in supporting businesses in expanding their markets and sharing information about the host countries, as well as advising the government on policies. The EVFTA set to lure European SMEs More European small and medium enterprises are flocking into Vietnam in anticipation of the EU-Vietnam Free Trade Agreement (EVFTA). Last week a delegation of 30 European pharmaceutical firms in the environment and water sectors paid a working visit to Ho Chi Minh City research the market and explore opportunities. The initiative was launched by the EU Gateway/Business Avenues in Southeast Asia to forge long-lasting business collaboration in the region. Siemon Smid, programme director of the EU Gateway/Business Avenues in Southeast Asia, told VIR that more European companies were looking at possibilities of doing business in Vietnam before the EVFTA takes effect in the next two years. “The trip is just the first step as we intend to hold more matchmaking events for Vietnam-EU firms in different sectors, such as green energy technology and health care,” Smid said. According to John Mc-Conomy, commercial director of Ireland’s Oxymem Smarter Aeration, Vietnam is the second country to conclude the FTA with Europe after Singapore. The EU is also the second largest commercial partner with Vietnam. Therefore, his firm is looking forward to the enforcement of the EVFTA in the market. “Vietnam is becoming increasingly competitive in the region so we expect to learn more about effective ways of doing business. Taking part in this trip, we expect to find local strategic partners who we can forge alliances with in the future,” John added. Another European firm, Budapest Waterworks opened a representative office in Hanoi last year. The company is engaged in potable water production, water supply as well as waste water treatment. Gellert Horvath, chief of the representative office believes in the potential of Vietnam as the waste water treatment business is starting to bloom. He added that, “Vietnam has a lot of potentials in water supply and waste water treatment. With the EVFTA coming into effect in 2018, we expect more business opportunities, and a safer investment environment. Budapest Waterworks is negotiating with local companies in Hanoi, Thanh Hoa, and Ho Chi Minh City to start joint ventures next year.” According to the EuroCham Vietnam, the association currently has 890 members from 28 nationalities with small and medium-sized enterprises (SMEs) accounting for 40%. The EuroCham Vietnam said it had seen more interest from SMEs in Europe in Vietnam due to the EVFTA, and that they were concerned about how feasible it would be to conduct business in the Vietnamese market, as well as how secure their investment would be. Steel firms seeing optimistic growth Local steel firms have recorded upbeat business results in the first half of this year on account of steady demand and an unexpected market rebound. In the first six months of this year, the steel sector turned out over 8.5 million tonnes of products, a 35.7% jump on-year. Over eight million tonnes were sold, up 39% on-year, of which more than 1 million tonnes were exported. Chairman of Vietnam Steel Association (VSA) Ho Nghia Dung attributed the sector’s upbeat performance to the Ministry of Industry and Trade’s imposition of temporary safeguard duties on imported steel billet and long-steel products. This helped to back up local firms’ production and sales in the year’s second quarter. Nam Kinh Steel JSC, based in the southern province of Binh Duong and one of the country’s leading steel makers, reported VND200 billion (US$9 million) in profit in the year’s first half and sold 346,000 tonnes of product. This outcome is remarkable compared to the company’s performance last year. Nam Kim Steel sold a total 423,000 tonnes of product last year and reaped only VND126 billion (US$5.7 million) in post-tax profit. According to Nam Kim’s general director Pham Manh Hung, the company has a lot of advantages when exporting to Malaysia as its export products do not incur anti-dumping tariffs when entering the Malaysian market. In early 2016, Malaysia’s International Trade and Industry Ministry announced its decision to impose anti-dumping tariffs on imported coated steel products. Nam Kim coated steel products incur an anti-dumping duty of just 0.06%, and according to the World Trade Organization (WTO) regulations, it is not an anti-dumping case if the duty was set below 2%. This will be an advantage for Nam Kim when exporting to Malaysia during the 2016-2021 period. In another case, state-owned Vietnam Steel Corporation (VNSteel) reported a 22% jump in steel billet production in the first half of the year, and a sale volume hike of 7% on-year, to 314,000 tonnes. Its construction steel production reached 1.6 million tonnes, up 23%, and sales volume surpassed one million tonnes. The parent company reported VND105 billion (US$4.7 million) in pre-tax profit during the period while its subsidiary companies touched VND339 billion (US$15.4 million). Private steel giant Hoa Phat Group gained VND1.85 trillion (US$84.4 million) in post-tax profit in the first six months, reaching 58% of the year’s projection. Of this sum, VND1.28 trillion (US$58.4 million) came from the construction steel business. During the period, Hoa Phat exported more than 8,000 tonnes, equal to 10% of the group’s total steel sale volume, with a stable month-on-month growth in the export value to ASEAN markets. Vietnam plans to spend more on tourism promotion to boost growth In a new effort to attract more foreign visitors, Vietnam's tourism authority seeks to increase spending on marketing three-fold to VND120 billion (US$5.24 million) next year. A fund for tourism promotion is set to be established with an initial corpus of at least VND300 billion (US$13.11 million), news website Saigon Times Online said recently, citing a proposal by the Ministry of Culture, Sports and Tourism. In the long term, a maximum of 30% of the fund would come from the government, with the rest coming from beneficiaries of tourism, it said. Minister of Culture, Sports and Tourism Nguyen Ngoc Thien said at a meeting in Hanoi on July 13 that poor marketing is one of the reasons for the lackluster growth in tourism. Other reasons include a dearth of outstanding products and quality human resources and services, he said. The proposal, which is waiting for local governments' feedback, is expected to develop tourism into of the economy's flagships through a range of measures such as extending visa waiver policy with longer visa-exempt stays and easing the issuance of visa on arrival, the website reported. Though Vietnam has great potential for tourism growth with its rich cultural and natural assets and good connectivity with other Southeast Asian countries, its international arrivals are only 27% of Thailand’s, 31% of Malaysia’s and 52% of Singapore’s, according to figures released at the meeting. In 2011-15 its tourism grew an average of 7% a year, compared to 12% in Thailand and 10% in Singapore. In fact, its performance was also poorer than that of second-tier countries such as Laos, Myanmar and the Philippines, which recorded growths of 15%, 51% and 8%. However, arrivals rose 21.3% year-on-year to more than 4.7 million in the first half of this year, according to data from the Vietnam National Administration of Tourism. Starwood Hotels & Resorts unveils Vietnam expansion plans Starwood Hotels & Resorts Worldwide, Inc. has announced plans to add six luxury resorts in Vietnam to its portfolio over the next three years. Speaking at a local media event in Ho Chi Minh City, a company spokesperson said the six properties will be located in Hanoi, Hoi An, Danang, Phu Quoc and Ha Long. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies around the globe with more than 1,300 properties in some 100 countries. It has approximately 188,000 employees at its owned and managed properties. The company is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Tribute Portfolio™, Four Points® by Sheraton, Aloft®, and Element®, along with an expanded partnership with Design Hotels™. Dong Nai surpasses yearly target in FDI attraction The southern province of Dong Nai attracted 1.34 billion USD in foreign direct investment (FDI) as of July 19, a year-on-year rise of 20 percent, surpassing the annual target by 34 percent. According to the provincial Department of Planning and Investment, the locality granted investment to 58 newly-registered projects worth 724 million USD and 44 existing ones with increased capital of 617 million USD. The projects were funded by investors from 44 countries and territories, mainly from the Republic of Korea (RoK), Taiwan (China) and Japan. As of July 19, the province boasts 1,613 projects with a total investment of over 29.1 billion USD, including 1,223 valid projects worth over 24.5 billion USD, prioritising hi-tech, skilled labour and environmentally friendly ventures. The provincial People’s Committee attributed the outcomes to the local efforts to improve administrative procedures and hold regular dialogues with businesses to help them overcome difficulties and facilitate their operation. The locality also developed infrastructure at a support industry, and hi-tech industrial parks to lure foreign investors. Transport firms told to adhere to fleet size rule The Ministry of Transport has confirmed that the prevailing regulation governing the minimum number of vehicles which transport firms must have to operate fixed routes are still in force though the ministry earlier proposed relaxing it. The ministry last week issued a decision requiring the Vietnam Road Administration and all transport departments to apply the fleet size requirements provided in the Government’s Decree 86. The decree, which was issued in 2014, requires transport firms in top-tier cities such as HCMC and Hanoi operating fixed routes of 300 kilometers or longer to have a minimum of 20 vehicles. The figure is 10 for businesses in other provinces and five for those in poorer provinces. Bus operators are subject to the same rule. Meanwhile, taxi companies in big cities must have at least 50 cabs and their peers in other provinces must have a minimum of 10 cars. Over the past months, many transport firms have complained about the decree, saying it has made business difficult. They have urged the ministry to apply the new rule to companies that were established after the decree came out on September 10, 2014. For the older companies, business should be as usual and there also has to be a clear roadmap to help them meet any new requirements, they said. Due to the reaction, the ministry wrote to the Government proposing a delay to the implementation of the decree for review. However, the Government did not approve the request, saying the requirement must be enforced on July 1 as scheduled. The Government ordered the ministry to modify the requirements to match the scale of enterprises, asking it to learn from this experience for better policymaking in the future. This means that, while waiting for the decree to be revised, transport enterprises must now follow the fleet size regulation. And if the rule changes, they would have to adjust their number of vehicles again accordingly. Vietnam's insurance sales see six-year high growth Insurance companies in Vietnam reported premium revenues of more than VND38.61 trillion (US$1.7 billion) in the first six months, an increase of 25.9% from a year ago, local media have reported, citing the finance ministry. It was the highest rise since 2011, news website Saigon Times Online said on July 20. More than 54% of the reported figure came from the life insurance sector, which grew nearly 36.8%. Non-life insurance revenues, meanwhile, rose 15% compared to the same period last year. Official figures showed Vietnam now has 17 insurance companies, four of which -- AIA, Bao Viet, Dai-ichi, Manulife and Prudential -- controlled more than 75 percent of the market. The Association of Vietnamese Insurers forecast the local insurance market to grow 20% this year. YBA to support 1,000 start-ups The HCM City Young Businesspeople Association (YBA) will support 1,000 start-ups in 2016-20, its chairman has promised. Speaking at a meeting between HCM City leaders and young businesspeople and start-up entrepreneurs on Tuesday, Nguyen Thu Phong said the association would also advise 300 start-ups and solicit investments worth VND500 billion (US$22.4 million) in more than 100 others. He urged the municipal People's Committee to make the association the main co-ordinator of programmes targeting small and medium-sized enterprises, and have its members in start-up-related working groups to consult and develop programmes to encourage entrepreneurship and creativity. The association would co-operate with the Viet Nam Youth Federation in HCM City and other relevant agencies to build the city's official portal on start-ups and make it a forum for interaction between young entrepreneurs and authorised agencies and a place for start-ups to present their ideas or products and seek investors, he said. Some attendees said start-ups should be oriented towards the city's socio-economic development programmes, including the high-tech part supplying industry. Tran Viet Anh, general director of Nam Thai Son Company, said: "In our time the country lacked consumer goods, so start-ups were successful by producing consumer goods. "But now times have changed. I suggest young people should start their business in the par supplier industry. This is a sector in which large enterprises do not take part while the country is in dire need of it." To ensure support for start-ups does not become a failed campaign, measures are needed to ensure successful start-ups and leading businesses guide new start-ups, he said. The YBA should list the causes of failure of young entrepreneurs in the past to help new businesses avoid the mistakes of the previous generations, he said. The city has a start-up fund worth VND100 billion ($4.5 million), but it cannot meet demand, delegates said, adding that the city should solicit more investment in it. Nguyen Thanh Phong, chairman of the city People's Committee, said his administration would speed up measures to create a start-up ecosystem and encourage creative start-ups. The city is focusing on four key industries — electronics and information technology, mechanical engineering, chemicals, and food processing — he said, adding that part supplier industries are also a special focus of the city. But the manufacturing sector still mainly does outsourcing work with low value addition, and industries with high added value and sustainability would have to be developed, he said. "The leaders of the HCM City People's Committee have approved all of the proposals from the HCM City Young Businesspeople Association and wholeheartedly support enterprises in terms of policy to enable the city to meet the target of having 500,000 sustainable enterprises by 2020." According to the Department of Planning and Investment, the city has 279,000 registered firms, of which a majority are SMEs. UK helps Vietnam implement int’l arbitration standards The UK’s Commonwealth Fund will help the Vietnamese Ministry of Justice enhance its capacity via a project on implementing international arbitration standards. The move aims to boost Vietnam’s economic development by improving the domestic investment and business climate, the Quan Doi Nhan Dan (People’s Army) newspaper cited a press release issued by the UK Embassy on July 20 as saying. UK Ambassador Giles Lever noted his hope that with the technical assistance, the ministry will outstandingly carry out the project’s activities. Outcomes brought about by the project are expected to exert long-term impacts on policy and rule building in Vietnam in order to increase the efficiency of the recognition and observance of decisions made by international arbitrators in the country, he said. According to the Vietnam International Arbitration Centre (VIAC), arbitration is conducted in 146 countries. In Vietnam, up to 124 legal proceedings were resolved by the VIAC between 1993 and 2014. Vietnam has 288 arbitrators, along with seven centres in Hanoi, Ho Chi Minh City and the Mekong Delta city of Can Tho.- VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Planned hotel by Hoan Kiem Lake debated Ha Noi authorities approved a plan to construct a new hotel in September at 22-32 Le Thai To Street, formerly home to the two-storey supermarket Intimex. The approval, however, has raised eyebrows among architectural specialists.
Tran Huy Anh, a member of Vietnam Association of Architects, said the association has submitted a document to Ha Noi’s People’s Committee on the architectural structure and aesthetic value of the hotel that is planned to be built. Most members of the association agreed that the new building should function as a service, commercial centre and hotel; however, its architecture does not suit the architectural space and landscape surrounding Hoan Kiem Lake, a special national site, they said. They argued that the facade of the new hotel would not mesh well with the surrounding buildings, and that the size of the pillars and entrance are not standardised, especially the architectural details and colours, which evoke a sophisticated but strange artistic impression. “The area surrounding Sword Lake is pretty sensitive and draws attention from authorities of all levels and specialists; therefore, the original architectural space and landscape of the special national site should be preserved,” Anh said. According to Pham Sy Liem, former vice chairman of Ha Noi’s People’s Committee, the construction of a hotel by the lake is acceptable, but needs to take two main issues into consideration. “Firstly, it should have two stories like the previous supermarket, or have three stories like the surrounding buildings, but must not be built higher because it might break the harmony of the landscape and make the area around the Sword Lake smaller,” Liem said. “Another problem is how to prevent hotel construction from affecting traffic in the area, which is often crowded,” he added. Bui Thi An, the National Assembly Deputy of Ha Noi, thinks a hotel shouldn’t be built on ‘golden land’ – an area demonstrating all the special features of the city. “Ha Noi does not lack land so seriously that a hotel has to be built on limited space by the lake,” An said. “However, the plan can be taken into consideration if the building of the hotel can contribute to the city’s economy significantly.” “Otherwise, I suggest the local authority reconsider this decision, because the city’s population is expected to be distributed equally instead of being focused densely in central Ha Noi,” she said. An also suggested that a landmark to commemorate the thousand-year-old capital should be constructed rather than a modern hotel. VNS |
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Land makes up 68 percent of total state assets The total assets of the state in the national database by December 31, 2015 were valued at VND1,031,313.82 billion.  The figure was updated in the latest government’s report on the management and use of the state’s assets. Of this, the land use right is valued at VND700,574.99 billion, houses VND254.032.19 billion, and cars VND22.887.73 billion, while the other assets with original value of VND500 million and higher for each had the value of VND53.818.91 billion. The total land area managed and used by agencies, organizations and project management units by December 31, 2015 had reached 2,565.79 million square meters, worth VND700,574.99 billion, accounting for 67.93 percent of the total assets of the state. As for house assets, in 2015, the newly built and received houses helped increase the house area by 1.35 million square meters worth VND7,748.86 billion, while the house transfer led to a decrease of 0.32 million square meters with original value of VND633.11 billion.
The total house fund managed and used by agencies, organizations and project management units by December 31, 2015 had reached 129.22 million square meters with the original value in books of VND254,032.19 billion, accounting for 24.63 percent of the total assets of the state. Experts pointed out that the state’s assets were lost during the state-owned enterprise equitization process. This is attributed to the undervaluing of land assets. In an article published in May 2016 on Dien Dan Doanh Nghiep newspaper, Dang Hung Vo, former Deputy Minister of Natural Resources and the Environment, the leading land expert in Vietnam, pointed out the complexity of the current laws on assessing land in equitization. According to Vo, nine government decrees on state-owned enterprise equitization were issued in the last 20 years. Meanwhile, there exist considerable differences in the regulations on land valuation stipulated in legal documents on land management and legal documents on state-owned enterprise equitization. The differences in the two legal systems related to the assessment of land value in equitization have been fixed. The land value taken into consideration when equitizing enterprises does not include the land enterprises lease from the state. Meanwhile, the business advantage brought by land positions will not be considered when calculating the leased land value. However, a legal loophole exists there. In economic laws, the positions of land plots are the most important factor which determined the value of the land. In related news, MPI is considering setting up a committee in charge of managing and supervising the use of the state’s capital at enterprises. According to CafeF, the total assets to be put under the committee’s control is valued at VND2,200 trillion, or $100 billion. VND22,000=US$1 Dat Viet |
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Agriculture abandoned by Vietnamese entrepreneurs Vietnam has great advantages for agricultural production, but in the last 10 years, domestic enterprises have been focusing on the services sector and abandoning the field.  The 2015 Business Annual Report released by the Vietnam Chamber of Commerce and Industry (VCCI) recently showed a very low proportion of businesses in the agricultural sector . It also pointed out that the growth rate in the number of businesses in the sector is low, while the number of workers has not increased in recent years. The sector reported a negative growth rate in the first six months of the year. The report showed that businesses in agriculture, forestry and aquaculture accounted for 0.96 percent of total businesses in 2014 and 0.98 percent in 2015. The sector did not make any considerable contribution to the increase of 34,000 businesses in the last two years. The proportion decreased sharply compared with 2007 (1.61 percent). As such, though Vietnam is a leading exporter of farm produce such as rice and coffee, Vietnam still cannot attract investors in agriculture.  Slow growth rate Agriculture, forestry and fisheries saw the next-to-slowest growth rate in the number of newly set up enterprises, at 7.43 percent per annum, or 50 percent lower than the average growth rate of the national economy (14 percent). With the figure, agriculture just stands above electricity generation and distribution, gas, hot water, steam and air conditioning with a growth rate of 5.72 percent. Meanwhile, education and training, administrative activities and support services, arts and entertainment, and information and communication all saw the number of enterprises increasing by five times in 2007-2015. Other services also had two-digit growth rates.
Laborers leave The number of workers in agriculture, forestry and fisheries did not increase in 2007-2014, or 0.55 percent per annum, the lowest among business fields. Meanwhile, the opposite occurred with the trade & service sector with the average increase of 15-20 percent per annum. Every three out of four Vietnamese work in one of three fields – processing & manufacturing, construction & wholesale, and retail, automobile and engine-vehicle repair. However, though agriculture remains unattractive in the eyes of many investors, the sector has attracted more and more tycoons. Hoang Anh Gia Lai, established as a real estate developer, has injected big money into rubber growing and sugar production. The second stock billionaire who jumped on the bandwagon was Pham Nhat Vuong, the richest Vietnames stock billionaires and dollar billionaire recognized by Forbes. Vingroup, which decided to pour VND2 trillion into agricultural production, now develops closed production chains which grow clean vegetables for domestic consumption and export. Cafebiz |
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Article 7
BUSINESS IN BRIEF 25/7 July CPI increases 0.13 percent month on month The July consumer price index (CPI) CPI rose 0.13 percent against June, 2.39 percent year on year and 2.48 percent compared to December 2015, the General Statistics Office (GSO) reported on July 24. The average CPI for the first seven months of this year increased 1.82 percent from the same period last year. An upward trend was seen in five out of 11 goods and service groups, of which transport recording the highest rise at 1.19 percent, followed by goods and other services at 0.17 percent, housing and construction materials at 0.14 percent, beverage and cigarette 0.09 percent, and home appliances 0.06 percent. The restaurant and food catering group saw prices dropping 0.05 percent while the post and telecommunications group posted a 0.1 percent decrease. Deputy head of the Price Statistics Department Do Thi Ngoc said the growth of July’s CPI was due to increases in fuel prices and train tickets. Meanwhile, hot weather also drove up prices of water and electricity by 0.14 percent and 1.16 percent, respectively. The scorching summer also pushed up the prices of some cooling products such as air conditioners, fridges and electric fans, she added. The prices of food in the month reduced 0.64 percent against the month before due to abundant of domestic food supply. During the month, gold prices fluctuated with the world’s gold prices and hit nearly 40 million VND (1,800 USD) per tael at a time but then quickly dipped and remained stable at around 36 million VND per tael. The VND/USD exchange rate remained stable at 22,300 VND per USD. The GSO evaluated that core inflation (the CPI without food and fresh foodstuff, energy and State-controlled commodities such as healthcare and education services) in the month increased 0.1 percent month-on-month and 1.85 percent year-on-year. The seven-month core CPI rose 1.81 percent from the same period last year. The GSO also anticipated that the CPI of August will grow slightly due to rising prices of health services, school fees and school supplies. Central Highlands provinces move to develop cattle for trading Central Highlands provinces have paid special attention to developing cross-bred cattle to improve the quality of cattle for trading in the region. Upholding its strength of large forest area and natural grassland, the regional localities have encouraged economic sectors to invest in developing cow and buffalo herds for business. Apart from making it easy for families in the region to access loans for their breeding, the regional localities have also called on organisations, enterprises and individuals to provide a great number of breeding cows for poor households in remote areas, especially those from ethnic minority groups, thus helping them escape from poverty. The Central Highlands boasts hundreds of cattle farms, concentrating in localities having large forest areas and natural grassland. Gia Lai province has the largest number of cattle in the region with 397,620 cows and buffalos. It is followed by Dak Lak with 273,078 individuals. Thanks to support from the Dak Lak provincial authorities, many families in M’Dak, Ea Sup, Ea Kar districts made great profits from breeding cattle. Locals have been also instructed to plant imported grasses for breeding and give periodic vaccination to their cattle, with the aim of ensuring the quality of cattle.- RoK’s firm opens plant, research centre in Bac Ninh Samil CTS Vina Co., Ltd of the Republic of Korea (RoK), which specialises in producing computers and computer peripherals, inaugurated a plant and a research and development (R&D) centre in the Yen Phong industrial park, northern Bac Ninh province on July 22. The same day, representatives from the firm and the Vietnam-Korea Technological Innovation Centre for standards, metrology and quality (Incentech) under the Ministry of Science and Technology’s Directorate for Standards, Metrology and Quality signed a memorandum of understanding (MoU) on enhancing cooperation in the future. Under the MoU, Incentech will support Samil CTS Vina in implementing its projects in Vietnam. The two sides will work closely to develop products and expand market in other ASEAN nations. Speaking at the signing ceremony, Deputy Director of the Directorate Nguyen Nam Hai highlighted the significance of the events and increasing production and investment activities of RoK enterprises in Vietnam in recent times. He said that his agency and the Korea Trade-Investment Promotion Agency also signed a cooperation agreement two months ago with a view to supporting the implementation of the Vietnam-RoK Free Trade Agreement (FTA), which was signed in 2015. The formation of Incentech aims to promote trade cooperation between the two counties, he noted. Cooperation between Incentrech and Samil CTS to set up the R&D centre will lay a foundation for the two sides to provide greater support for Vietnamese and Korean businesses , thus contributing to socio-economic development in the two nations, Hai stressed. For his part, Commercial Attaché of the RoK Embassy in Vietnam Choi Jong Won said the opening of the plant and R&D Incentech-Samil centre in Bac Ninh will be the first steps for Samil CTS to enter into the Southeast Asian market. The signing of Vietnam-RoK FTA contributes to stepping up trade and economic connection between the two countries, he stressed, expressing his belief that R&D Incentech-Samil centre will serve a economic and creative model, helping boost links between the two sides’ businesses. Deputy Head of the Department of Heavy Industry under the Ministry of Industry and Trade Pham Anh Tuan hoped Samil CTS’s plant in Bac Ninh would help Vietnam realise its goal of supporting industry development. Vietnam is now a strategic partnership of the RoK, with a number of Korean companies building plants in Vietnam. RoK firms have invested 485 billion USD in Vietnam so far. Business, investment laws should be examined: workshop Scrutiny of business and investment laws is needed to adjust or remove incompatible regulations to serve the long-term development of enterprises, heard a workshop in Hanoi on July 22. The event was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI), the Government Office, the Ministry of Planning and Investment, and the US Agency for International Development’s project on enhancing legal building capacity in Vietnam. Vice Chairman of the Government Office Le Manh Ha said the Government has exerted efforts to improve the business environment in recent years, such as by building the Law on Investment and Law on Enterprises in 2014, and promulgating Resolution No.19 on bettering the business climate and enhancing the national competitive edge, along with Resolution No.35 on supporting businesses. According to the VCCI, 37 laws on business and investment need to be revised and adjusted to avoid contradictions and overlaps, including the Commercial Law, the Law on Investment, the Law on Enterprises, the Law on Land, the Law on Construction, the Law on Environmental Protection, and the Law on Science and Technology. The Law on Corporate Income Tax, the Law on Value Added Tax, the Law on Special Consumption Tax, the Law on Tax Management, the Law on Management and Use of State Capital Invested in Production and Business and Enterprises, the Law on Advertising, and the Law on Housing should be overhauled, too. Head of VCCI’s Legal Department Dau Anh Tuan said the examination of business and investment laws aims to remove barriers and overlaps among legal documents, through which push forward the reform of administrative procedures and create equal opportunities for business players. Such legal documents as the Law on Accounting, the Law on Cinema, the Law on Telecommunications, and the Law on Prices also needs revision, he said, pointing to some shortcomings in the fields. European firms report positive business climate in Q2 The European Chamber of Commerce in Vietnam (EuroCham) released the Business Climate Index (BCI) for Q2 on July 21, which is posted at 77 indicating positive sentiment from EuroCham members on the local business environment. Overall, the assessment on the business situation among European companies in the last quarter is good, with 66.7 percent of the respondents describing it as “excellent” or “good”, and only 12.5 percent classifying it as “not good” or “very poor”. EuroCham Chairman Michael Behrens commented: “The results for Quarter 2, 2016, show positive expectations for the near future and consistent satisfaction with the present situation.” “EuroCham members maintain a positive view on the Vietnamese market and their business operations in the country, a result which does not differ from our last survey. This is a good sign for the current implementation of the EU-Vietnam Free Trade Agreement, which is expected to strongly enhance European business and investment,” he added. In regard to the macroeconomic outlook for Vietnam in the next quarter, from EuroCham members’ point of view, macroeconomic stability will likely continue, as 56.3 percent of the respondents indicated “stabilisation and improvement”. Another 9.4 percent expected deterioration, and 34.4 percent think that it will not change. Around 49 percent of the respondents expected the number of orders or revenue to increase slightly in the next quarter. 15.6 percent of them were even more optimistic, expecting a significant increase of revenue in Q3. Specifically, 43.8 percent of the questioned companies answered that they would increase investment, while 43.7 percent expected an increase in headcount, the survey found. The survey was sent out to 883 members of EuroCham including some of the largest European investors in the country. Conference looks to promote eco-innovation among Vietnamese SMEs Eco-innovation consulting services from the ASEM SMEs Eco-Innovation Centre (ASEIC) were introduced to Vietnamese small and medium enterprises (SMEs) at a conference held in Ho Chi Minh City on July 21. The event, jointly held by the State Agency for Technology Innovation under the Ministry of Science and Technology and the ASEIC, aimed to encourage and support the Vietnamese business community to promote innovation and sustainable development activities. Businesses were provided with eco-innovation approaches in optimising the use of energy and resources and building sustainable development strategies. According to the ASEIC, eco-innovation solutions have significant impacts on environmental protection and help increase growth while serving as a leverage to boost sustainable growth. The ASEM Eco-Innovation Consulting Project for SMEs has been carried out in the garment, food processing and steel structure manufacturing sectors in Ho Chi Minh City and some southern localities. ASEIC expert Yoon Ji Kang said that the project aims to strengthen the green competitiveness of SMEs through presenting and applying sustainable management method and green technology in their business activities. At the conference, Chairman of the Ho Chi Minh City Association of Mechanical Industry Pham Ngoc Tuan noted that investment for environmental treatment technologies will help enterprises ensure environmental standards and reduce production costs. He added that the project should branch out its support and consultation for other sectors. The ASEIC was established in 2011 with the principal mandate of enhancing the cooperation between Asia and Europe and promoting the eco-innovation of SMEs in both regions. It is dedicated to supporting the efforts of SMEs in ASEM member nations in exchanging environmental regulations and sharing good practices in eco-innovation while promoting eco-designed products. The centrelaunched its first ASEM Eco-Innovation Consulting Project for 33 SMEs in Thailand, Indonesia, Malaysia and Vietnam five years ago. Hong Kong based insurer sees Vietnam as huge potential market Hong Kong based insurer FWD Group is working to quickly establish its presence in Vietnam as the country has a huge growth potential on insurance market with more than 90 million people, according to the group’s CEO Huynh Thanh Phong. Southeast Asia has been the main playground of FWD Group since it was founded as an insurance arm of investment group Pacific Century Group in 2013. It has been rapidly expanding its operations in Thailand, Indonesia, the Philippines and Singapore, the CEO told the Dau Tu (Vietnam Investment Review). The firm acquired Great Eastern Life Vietnam from Singapore’s Great Eastern Life Assurance last month in an attempt to lead a faster market penetration by taking advantage of Great Eastern Life Vietnam’s existing market share, personnel and infrastructure, Phong said. The group also signed a 15-year agreement for a bancassurance partnership with An Binh Joint Stock Bank (ABBANK) on July 14 which will offer it the exclusive right to distribute its life insurance and saving products to the bank’s customers, he added. Explaining why the FWD group is taking its first step in the country with the bancassurance deal, Phong said bancassurance currently accounts for only around 3 percent of sales in Vietnam compared to 50-60 percent in other Asian markets, meaning a huge opportunity for the group. In addition to that, the country is shifting from an insurance industry that focuses on single-channel distribution to one with multi-channel distribution. When entering Vietnam, the firm hopes to change the way people feel about insurance and make them more aware of the importance of life insurance for them and their families, he stressed. It could be done by the company’s unique approach in providing consulting services and designing a contract, alongside its 24-hour and convenient customer care, and easy-to-understand products. Headquartered in Hong Kong, FWD offers customers life and medical insurance, employee benefits and general insurance across Hong Kong, Macau, Thailand, Indonesia, the Philippines and Singapore. Vietnam attends APEC transport workshop in Mexico Deputy Minister of Transport Nguyen Ngoc Dong attended an Asia-Pacific Economic Cooperation (APEC) workshop on attracting private investment in road and railway transport infrastructure in Mexico on July 20. The event attracted the participation of 30 officials and experts on management, bidding and policy consultancy from nine APEC economies: Mexico, the US, Canada, Chile, Thailand, Malaysia, Peru, Australia and Vietnam. This was the second APEC workshop held in 2016 to increase the capacity of member economies on private –public partnerships (PPP). Delegates delivered speeches on PPP projects in the transport field within the APEC region, while exchanging notes on challenges and policies to successfully implement PPP projects on road and railway infrastructure and urban transport. They also shared experience in implementing road and railway projects, and lessons on sharing risks and legitimate interests between the State and the private sector.-VNA Ministry of Justice responds to businesses The Ministry of Justice plans to review Article 292 of the 2015 Penal Code, with reference to other relevant ministries and agencies, to avoid creating barriers to the development of startup enterprises. Deputy Minister Tran Tien Dung, the ministry's speaker, confirmed this early this week in response to the business community's petition to scrutinise the regulation. Dung said the regulation had been proposed to prevent criminals from using the internet or telecommunications networks, as well as to protect legal business activities. Under Article 292, online service providers will be deemed criminals if they do not have permission to conduct business online or if they do not conduct business according to the specifics of their business registration. Services governed by Article 292 include gold trading, e-commerce, multilevel marketing, payment intermediaries, online games, and other services using computer or telecommunications networks. The regulation raises concerns among the startup community. Most startup firms develop new ideas and services based on information technology. They worry that the words "other services" are not well defined by the regulation, which may lead firms to accidentally commit crimes. The ministry will now meet with relevant ministries, agencies, IT experts, representatives of the startup community, and the Viet Nam Chamber of Commerce and Industry to discuss amendments to the regulation before submitting it for approval. International arbitration a way out for investment disputes International arbitration would be helpful for businesses in settling trade and investment disputes in the context of Viet Nam integrating rapidly into the global economy, experts said on July 20. The Viet Nam International Arbitration Centre (VIAC) and Korean Commercial Arbitration Board (KCAB) jointly held the conference in Ha Noi to promote awareness of international arbitration and its development in the region. Vu Anh Duong, VIAC's general secretary, said that the centre expected to enhance the capacity of businesses to settle disputes through out-of-court resolutions amid the country's rapid economic integration. As trade and investment was booming in Viet Nam, with the presence of investors from more than 110 countries and territories in the world, arbitration became an important alternative dispute resolution, experts said. According to Ji Ho Kim, director of KCAB, with the Viet Nam – Korea Free Trade Agreement officially coming into effect at the end of last year, legal activities should be increased to promote economic development, in which international arbitration is considered an effective solution to this problem. Phan Trong Dat, deputy general secretary of VIAC, said that with the promulgation of the Law on Commercial Arbitration 2010, the legal framework on arbitration of Viet Nam was moving closer to international standards. He cited statistics which showed that VIEC handled 146 disputes in 2015, increasing by 18 per cent over the same period last year and up from a mere 6 cases in 1993 when the centre was founded. The disputes were related to a variety of sectors, such as sales, finance, construction and insurance. Pham Manh Dung, former director of the Ministry of Planning and Investment's Legal Department, said that the legal framework on arbitration, enforcement of judgment and reconciliation should be improved. In addition, regulations on transparency and access to information were needed. Vinh Phuc province lures 3.43 billion USD in FDI The northern province of Vinh Phuc has attracted 3.43 billion USD in foreign direct investment (FDI) with 222 projects as of mid-July, 2016, according to the provincial Investment Promotion Agency. Although ranking third among the locality’s largest foreign investors, Japan takes the lead in capital disbursement, business operation efficiency and contribution to local budget. Japan is running 26 projects valued at over 786 million USD in Vinh Phuc. Since their establishment in Vietnam, Honda Motor Co.,Ltd and Toyota Motor Vietnam Co., Ltd have contributed more than 6 billion USD to the state budget while creating jobs for thousands of locals with stable incomes. Meanwhile, Nidec Nissin Vietnam, Maruichi Sun Steel JSC, Exedy Vietnam Co., Ltd and Kohsei Multipack Vietnam Co., Ltd also show good performance. Vinh Phuc province has recently granted investment certificate for Japan’s Sumitomo Corporation to develop infrastructure of the 213-hectare Thang Long Vinh Phuc industrial park. Once completed, the park will attract 79 secondary investment projects from Japan with a total registered capital of 1.5 billion USD and draw 25,000 local workers. In a bid to lure more investments, the province has paid heed to improving local business climate, attracting resources for development while building essential infrastructure. Enhancing vocational training quality, mapping out plan for urban development and facilitating administrative procedures for investors are also given top priority. Furthermore, the province has held talks with FDI businesses to promptly tackle their difficulties.- ODA technical support for construction sector totals 45.6m USD The Ministry of Construction (MoC) is managing 19 technical support projects this year with total committed ODA capital of more than 45.6 million USD. Most of the sum funds capacity and institution improvement efforts. The ministry said it had completed the capital use and allocation planning for ODA-funded projects. Recently, the ministry successfully attracted about 24.58 million USD in ODA from Japan, the Republic of Korea, and Germany, among others, for eight projects. The MoC is also coordinating the implementation of three projects on urban facility upgradation, water supply and wastewater treatment. They are funded by loans worth a total over 937 million USD from the World Bank. The World Bank has also agreed to provide an additional 7 million USD for a project on water supply and urban wastewater treatment in the Mekong Delta, the MoC added. ODA capital has proved to be a considerable contributor to Vietnam’s socio-economic development. The national committee for ODA and preferential loans requested ministries to promote the effectiveness of ODA and concessional loan use, especially the loan disbursement progress. In the first half of 2016, over 2.56 billion USD of ODA and concessional loans was committed for Vietnam, surging by 61 percent year on year. The disbursement of ODA capital and concessional loans during the reviewed period declined by 4 percent from a year earlier to about 1.85 billion USD, including 1.75 billion USD of ODA loans and 100 million USD of non-refundable ODA, according to the Ministry of Planning and Investment. A Cuong Minerals shares fall sharply Shares of A Cuong Minerals (ACM) were often amongst the lowest valued in the market, and now they have hit an even lower point after the firm was found harming the local environment. A Cuong Mineral Group Joint Stock Company engages in the mining and wholesale of minerals and coal in Son Dong District, Bac Giang Province. Since the publication of the information discovered by officials, specifically the firm's discharge of untreated waste water directly into the local river, shares lost about 50 per cent in value from the previous week. On July 19, they fell to their lowest figure of the year, closing at VND1,800. Yesterday, after A Cuong told its shareholders for the first time about the case, and confirmed that the issue related to a leaking waste water tank that they were trying to fix, each share of the mineral firm rose more than 5 per cent to reach VND1,900(US$0.08) on the Ha Noi Stock Exchange. Despite the increase yesterday, the firm's shares remained lower than last week's figure. On June 26, the Bac Giang Department of Natural Resources and Environment and the local environment police caught the firm discharging untreated waste water directly into the local river. On July 18, the Ministry of Natural Resources and Environment decided to inspect the environmental protections of the group, with the inspection teams partnered with functional officials of the ministry and the local province. According to ministry, the firm would be subject to punishment under the law if the team found violations. Consortium to deepen ports in Cai Mep-Thi Vai Joint venture ports between Vinalines and its foreign partners in the Cai Mep–Thi Vai port complex in the southern province of Ba Ria-Vung Tau, including SP-PSA and CMIT, are expected to be able to handle larger vessels thanks to the upgrading and dredging of lanes. An alliance of investors Cienco1, Cai Mep, and Thai Son has proposed pouring VND6.378 trillion ($291.23 million) inupgrading and dredging lanes in the Cai Mep-Thi Vai area to enable receiving vessels of 100,000 DWT and higher under the public–private partnership (PPP) model. Of the sum, the investment of dredging from Buoy No. 0 to CMIT port co-owned by Vinalines and Danish company APMT, is estimated at VND1.375 trillion ($62.75 million). According to the alliance, the investors will dredge 22 million cubic metres from between Buoy No. 0 to CMIT port, 5.34 million cubic metres from between CMIT and SP-PSA (owned by Vinalines and Singaporean PSA), 2.23 million cubic metres from SP-PSA to SITV, 3.95 million cubic metres from SITV to Tac Ca Trung, and 2.68 million cubic metres from Tac Ca Trung to Go Dau. If the proposal is approved, the project will be completed in the first quarter of 2019. The proposal was made amid the growing volume of goods shipped via local ports, which surpassed forecasts by Japan International Cooperation Agency (JICA). In recent years, the volume of goods transited via ports in the Cai Mep-Thi Vai area significantly increased from 8.73 million tonnes in 2010 to 25.65 million tonnes in 2011 and 19.30 million tonnes in 2014. In 2010, the volume of dry goods passing through ports in the Cai Mep-Thi Vai area reached around 16.84 million tonnes, equal to the volume of goods forecast by JICA. If liquid and transited commodities are included, the volume was even higher. Do Hong Thai, deputy head of the Vietnam Maritime Administration, said that the volume of goods shipped via local ports will rise to 101.6-109.2 million tonnes by 2020. Taiwanese Fuco sets second phase of steel project on course Fuco Steel Corporation Ltd. has kicked of the construction of the second phase of its steel production plant, investing an additional $76.5 million in the southern province of Ba Ria-Vung Tau’s Phu My 2 industrial park, increasing Fuco’s total investment capital in the plant to $156.5 million. The six-hectare plant will be equipped with a manufacturing line imported from Italy. The construction is expected to be completed in August 2017 so that the plant can come into operation one month later, with an output of 600,000 tonnes per year. Almost all products of the expanded plant will go to large domestic customers, namely Vina Kyoei Steel, SSE Steel, Nha Be Steel, Tay Do Steel, and Vinh Phuc Mechanic. The remaining products will be exported to the Philippines, Thailand, Bangladesh, and Singapore. Fuco currently runs the first phase, a 30-hectare steel billet plant to produce billets, which is used to make reinforcing bars, bars, and wires. The construction of the first phase was started in 2012 and finished in 2014. The plant has an annual capacity of one million tonnes, 20 per cent of which is distributed on the domestic market, and the remaining 80 per cent being exported to the ASEAN and Middle Eastern markets. Entering Vietnam in 2007, Fuco is a subsidiary of Fuco International Ltd.-the largest steel maker in Taiwan. The company in Vietnam currently has 250 trained employees and engineers. Vista Verde topped out, poised for launch CapitaLand, one of the leading Singaporean real estate developers, along with Thien Duc Trading Construction topped out the Vista Verde project in Ho Chi Minh City on July 20. Comprising of 1,152 high-end apartments in four 35-storey residential towers offering a spectacular view of the Saigon River, Phu My Bridge, and the surrounding city, Vista Verde showcases lush green landscaping and was designed to bring a symphony of nature to residents. Strategically located in the heart of District 2’s administrative centre, it is five minutes from essential amenities and 10 minutes from districts 1 and 7. According to Chen Lian Pang, CEO of CapitaLand Vietnam, the topping out was an important milestone of the project, which was launched in 2014 and have sold more than 80 per cent to date. “We look forward to presenting this landmark residential development that redefines modern living in Vietnam. The successful topping out of Vista Verde would not have been possible without the support of the local authorities, our consultants and contractors, our strategic business affiliates, as well as Thien Duc, our valued partner in Vista Verde,” Chen said. Vista Verde has won the prestigious “Best Condominium in Vietnam” award at Asia Pacific Property Awards 2015 and the “Best Architectural Landscape Design” award at Vietnam Property Awards 2015. The two awards recognise CapitaLand’s efforts to incorporate international design principles and practices at Vista Verde. CapitaLand Vietnam’s first residential project in Ho Chi Minh City was The Vista, which was completed in September 2011 and has since been handed over to homebuyers. Other completed projects include PARCSpring in Ho Chi Minh City and Mulberry Lane in Hanoi. Hoanh Son Group acquires 51.11% of Phuoc An Port The Hoanh Son Group, a private company specializing in transport, construction, and infrastructure and based in north-central Ha Tinh province, has recently acquired a majority stake in the Phuoc An Port project in southern Dong Nai province. A representative from the Hoanh Son Group confirmed with VET that the company’s holding in Phuoc An is 51.11 per cent and the acquisition was implemented via a subsidiary, the Hoanh Son Ltd Co., on July 9. Hoanh Son Ltd Co. outlaid VND460 billion ($20.7 million) to buy 46 million shares from the State-run PetroVietnam (PVN) group, which was previously the major shareholder with a holding of 80 per cent. Phuoc An Port is a cooperative agreement between PVN and the Dong Nai People’s Committee signed in 2007 with investment capital of $765 million. One year later the PetroVietnam Phuoc An Port Investment & Operation Joint Stock Company was established and was granted an investment license in 2009. Project implementation has been very slow in the seven years since, however, with site clearance still being conducted. With a policy of investment socialization and a focus on its core areas, PVN decided to find a strategic partner to speed up the project and selected the Hoanh Son Group. With a prime location, just 40 km from the center of Ho Chi Minh City and the industrial belt in Binh Duong province, Phuoc An Port is expected to become a seaport and logistics complex on 800 ha that will serve customers in the Southern Key Economic Region. It has a planned capacity of 2.5 million TEUs per year and 6.5 million tons of cargo. The Hoanh Son Group has recently been in the news, after the Sao Vang Rubber JSC (SRC) chose it as a partner in investing in a trade center, service and office complex at 231 Nguyen Trai Street in Hanoi’s Thanh Xuan district. Hoanh Son will spend VND435 billion ($19.5 million) on supporting SRC to move its rubber plant on the site to the Chau Son Industrial Park in northern Ha Nam province. The two parties plan to establish a joint venture, in which SRC will hold 26 per cent. The deal sparked much controversy in the real estate sector as real estate giants such as the BRG Group and the FLC Group were hoping to partner SRC. The reason for selecting Hoanh Son is that it has solid financial resources and has also been a partner in many projects with the State-run Vietnam National Chemical Group, SRC’s largest shareholder. Over the last few years Vietnam has witnessed a trend in which private companies buy or acquire a majority stake in State-owned companies or their subsidiaries that also possess significant land assets. According to the Vietnam Maritime Administration, Vietnam now has 49 seaports at three levels - I, II, and III. Total investment capital needed for the country’s seaport network to 2020 is estimated at VND100 trillion ($4.5 billion). Hoa Sen pushing into real estate Steel-maker the Hoa Sen Group (HSG) is now stepping up its investments in real estate after unsuccessfully attempting to enter the sector seven years ago. HSG has poured significant sums into tourism real estate in recent times, which is considered a “gold mine” by many real estate giants, and reflect its ambition to become a major investor in resort real estate. At the end of May it invested VND1.2 trillion ($54.5 million) in a four-star hotel in northern Yen Bai province. “Hoa Sen Yen Bai is the first tourism, service and real estate project of the group, marking a new step in a completely new business sector,” it said in a press release at the time. Covering 1.5 ha, the project is expected to be completed by 2020 and will be the largest international-standard hotel and commercial center in the province, with a 15-storey building that will include a four-star hotel, a business center, a conference center, a restaurant, a café, and luxury apartments. The steel giant has also established four subsidiaries to invest in real estate: Hoa Sen Yen Bai Co., Hoa Sen Hoi Van Co., Hoa Sen Van Hoi Co., and Hoa Sen Quy Nhon Co. HSG holds 70 per cent of Hoa Sen Yen Bai and Hoa Sen Hoi Van and 45 per cent of the other two companies. The remaining shares in the four subsidiaries are held by HSG Chairman Mr. Le Phuoc Vu. The vegetarian Chairman has told local media of his plans to invest in other projects in Yen Bai. In particular, the group will invest in a spiritual resort on an area of 1,000 ha, including the 400-ha Van Hoi Lake. HSG will also build a hotel and resort complex in south-central Binh Dinh province. According to real estate experts, HSG’s investments in tourism real estate at this time make perfect sense. Ms. Duong Thuy Dung, Associate Director and Head of Research and Consulting at CBRE Vietnam, told local media that 2016 is a key time for the resort real estate market. “The growth in tourist numbers to beach resorts is very positive,” she was quoted as saying. “HSG has captured this positive sentiment to invest in resort real estate.” HSG first stepped into real estate in 2009, investing in the Phuc Thanh Dien residential project in District 9, Ho Chi Minh City. Two years later it then invested in two other apartment projects in District 9 - Hoa Sen Phuoc Long B and Hoa Sen Riverside Apartments. The investments, however, came at a time when Ho Chi Minh City’s real estate market was in decline. In 2011 HSG announced its withdrawal from the real estate market after results were not as expected. Steel sheet manufacturing remains its core business. On July 15 the group announced it would seek shareholders’ approval at an extraordinary shareholders meeting on September 6 to take over a 6-million ton steel mill at the Ca Na Industrial Park in the south-central province of Ninh Thuan. The group has estimated that total investment capital for the delayed project would be some $3.8 billion. The 6-million ton mill would bolster HSG’s total capacity significantly. Established in August 2001, HSG is now among the leaders in steel sheet production and trading in Vietnam and Southeast Asia. Its products have a domestic market share of 40 and 20 per cent in steel sheet and steel, respectively, and its products are present in over 60 countries and territories around the world. The group owns numerous steel and steel sheet manufacturing plants in Vietnam. On March 17 it held a breaking ground ceremony for the Hoa Sen Ha Nam steel mill at the Kien Khe I Industrial Cluster in the northern province of Ha Nam. In January it began construction of the Hoa Sen Nhon Hoi steel sheet plant at the Nhon Hoi Economic Zone in Binh Dinh province. The 12.4-ha, $89-million facility is expected to commence operations in June 2017 and supply 180,000 tons of galvanized steel sheets and zinc-aluminum alloys, 90,000 tons of color-coated steel sheets, and 200,000 tons of cold-rolled steel to domestic and foreign partners. Trade surplus reaches US$1.7 billion in H1 Vietnam posted a trade surplus of around US$1.7 billion in the first half of this year thanks to strong exports to major markets, including the U.S., the European Union and the Middle East, according to the General Department of Customs. Last month, imports hit US$14.7 billion with foreign direct investment (FDI) enterprises contributing US$8.3 billion. Meanwhile, exports inched up 2.5% to US$14.7 billion compared to May, with the FDI sector accounting for US$10.2 billion. Overall, the country shipped abroad US$82.1 billion worth of goods in the year to June and spent US$80.4 billion on imports. Machinery topped the list of imported products with a combined value of US$13.1 billion, followed by computers, electronics and parts with US$12 billion. Items with an import value of less than US$5 billion include plastics and raw materials, iron and steel, and animal feed and animal feed ingredients. Of 19 export products worth over US$1 billion, phones and parts took the lead with US$16.9 billion, followed by apparel with US$10.8 billion. Seafood, furniture, vegetables, coffee, cashew nuts, rice, suitcases and handbags came next. In the six-month period, Vietnam recorded a trade surplus above the US$1 billion mark with six markets, including the U.S. with US$14.1 billion, the United Arab Emirates US$2.5 billion, Germany US$1.6 billion, the Netherlands US$2.3 billion, Hong Kong US$2.2 billion and the United Kingdom (UK) US$1.9 billion. The country, on the other hand, had trade deficits with five countries, including China with US$14 billion, South Korea US$5.1 billion, Malaysia US$1.04 billion, Singapore US$1.5 billion and Thailand US$2.1 billion. China remained Vietnam’s largest source of imports, with a value of US$23.1 billion, accounting for nearly 30% of all imports. Among key products imported from the northern neighbor, iron and steel contributed US$2.1 billion. Other imported products worth over US$1 billion included electronic devices and fabrics and materials for apparel production. Then the January-June period saw Vietnam’s trade deficit with China shrinking by US$2.3 billion year-on-year to US$14 billion. However, that was still the largest single-country trade deficit for Vietnam. Apart from China, imports from South Korea reached US$14.7 billion with three product categories posting over US$1 billion in revenue: computers, phones, devices; machinery; and equipment and parts. Trademark registration challenges local firms Vietnamese enterprises have bemoaned that they are having a hard time dealing with trademark registrations both at home and abroad, a recent conference heard. Lawyer Pham Thi Thoa from Apolat Legal Law Firm said the National Office of Intellectual Property of Vietnam (NOIP) is often late in giving updates on trademark applications and their statuses on its website. There were cases in which it took a year for companies to learn that the registration had ended in failure, Thoa told reporters on the sidelines of the conference on trademarks in ASEAN countries last week. The firms could have applied for different trademarks if they had been informed earlier, Thoa said, adding that a lot of money and time could have been saved. She also criticized the weird registration regulations, particularly a rule that stipulates that applications by two firms for the same trademark on the same day will be automatically rejected, unless the parties involved manage to reach some sort of agreement. Such rules give rise to unhealthy competition and may put older and prestigious firms at risk of losing their own brands to new companies, Thoa said, calling for a review of the rules. Le Trung Tho of Hoang Ngoc Joint Stock Company said many domestic firms still care little about registration of their brands. For businesses who are fully aware of the need to protect their brands, the registration process would not be easy either. According to a representative of dairy company NutiFood Vietnam, local businesses also have difficulty registering their trademarks in overseas markets due to inadequate guidance and limited resources for research. Tran Giang Khue, deputy head of the NOIP’s HCMC office, said a trademark is only valid within the country of application, which means exporters need to register their trademarks in their export markets to protect their brands. Legal mechanisms are different among countries in the region. Rules on intellectual property protection in Singapore and Thailand are strict while those in other markets are usually lax and incomplete. Vietnam, Laos, Cambodia, Singapore and the Philippines have joined the Madrid System, which facilitates international trademark registrations. H2 exports of key products expected to inch up The Ministry of Industry and Trade has projected Vietnam’s exports in the second half of this year will climb by an estimated 10% against the first half and export revenue of many key items to increase significantly in the whole year. According to a report released at a conference on export promotion in HCMC on July 19, the country saw its export turnover rising by 5.7% year-on-year to US$82.13 billion in the first six months of 2016. Export revenue of agri-aqua-forestry products amounted to US$13.3 billion, up 4.1%, while that of the manufacturing-processing sector stood at US$62.59 billion, an 8.7% rise and the fuel-mining sector at US$1.65 billion, a 40% plunge. The ministry said a sharp fall in the fuel-mining sector matches the nation’s policy to reduce exports of raw minerals and crude oil to ensure sufficient supplies for local production. Declines in export volume and value of this sector led its revenue to dip strongly and accounted for only 2% of the country’s total. Export prices of agri-aqua-forestry products edged down on world markets due to an economic slowdown in China and Brazil. Besides, demand in Vietnam’s major export markets like the U.S., the European Union and Japan also slowed. The trade ministry predicted export in the remaining six months of the year would jump around 10% compared to the first half. In addition, many items have begun to benefit from Vietnam’s signing of free trade agreements (FTAs), thus supporting more agri-aqua-forestry products to join global supply chains. However, Vietnam will have to cope with tougher competition in the second half since competitors will also take measures to boost exports. China saw its exports skidding by 7.6% in the January-June period, India dipping by 8%, Brazil edging down by 3.4% and Indonesia falling by 13.6%. The ministry projected the seafood sector will fetch US$7.12 billion in export turnover in all of 2016, up 8% versus 2015, while coffee exporters will sell an estimated 1.5 million tons and collect US$2.43 billion, up 10% in volume and down 7% in value. Outbound sales of rubber products are forecast to reach 1.1 million tons worth US$1.65 billion, almost unchanged from the previous year. Pepper shipments will likely total 145,000 tons valued at US$1.38 billion (up 9.5%) and cashew nuts 350,000 tons worth US$2.6 billion (up 8.3%). The textile-garment sector is expected to post export revenue of US$28.5 billion to US$29 billion this year, up only 5% versus 2015, due partly to tumbling export orders. Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), told the conference that the supply of unprocessed shrimp for processors has become limited this year, thus sending prices up. In the past, Vietnam sold seafood to three major markets – the U.S., the EU and Japan. China has emerged as another key importer since it accounts for 16% of Vietnam’s seafood export revenue. At present, Vietnam ships seafood to 144 markets with the five biggest markets – the U.S., the EU, Japan, South Korea and China, making up over 70% of the total. Hoe said apart from expanding farming areas, local producers will step up import of materials for domestic processing to maintain growth. Hoe proposed streamlining export procedures to help enterprises. HCM City needs over 6 billion USD for infrastructure The HCM City People’s Committee has submitted to the Ministry of Planning and Investment the list of projects intended for Public-Private Partnership (PPP). The projects will need a capital amount of 137,563 billion VND (6.17 billion USD), which, 37,960 billion VND (1.7 billion USD) is from the State. Priority projects include the Monorail Route No.3, the expansion of National Road No.22 and the construction of elevated road No.5 on belt road No.2. The city has been implementing five big projects with a combined capital of 110,699 billion VND (4.96 billion USD), of which official development assistance loans account for 91,400 billion USD (4.1 billion USD). Flexible monetary policy stablises financial system The flexible implementation of monetary policy from the State Bank of Vietnam (SBV) contributed to stabilising the financial market from the beginning of this year. According to the SBV, thanks to the flexible execution of the daily reference exchange rate based on the domestic supply and demand, the world finance market, as well as the synchronous implementation of tools to support the interest rate when needed, helped the foreign currency market develop positively. The USD/VND exchange rate in the inter-bank market reduced and fluctuated around the SBV’s new exchange rate level of 22,300 VND per USD. The market liquidity has been good and the demand for foreign currency has been met. According to the SBV, deposit interest rates have been kept stable, reducing the pressure on the lending interest rates of credit organisations and the risk of increasing inflation. Based on the situation of the macroeconomy, currency and inflation, the SBV maintains stable key interest rates via monetary policies to ensure liquidity and keeping the inter-bank interest rate at a low level, helping credit organisations to keep their deposit interest rate levels stable. The synchronous implementation of solutions kept deposit interest rates stable despite increases of from 0.2-0.3 percent per annum in the first three months. As for lending interest rates, despite the slight increase of deposit interest rates in the early months of the year, lending interest rates are relatively stable to assist enterprises, the State commercial banks and some joint stock banks reduced the rate for short-term loans by 0.5 percent and capped the rates of mid- and long-term loans to no higher than 10 percent. In the remaining months of the year, the SBV will continue instructing credit organisations to implement measures to reduce interest rates for loans. According to the SBV, the credit issued in the first half this year increased 8.16 percent, higher than the same period last year and is on route to achieve the yearly target of 18 to 20 percent. The SBV said that in the rest of the year, it will focus on controlling credit growth to ensure safety and effectiveness. It will prioritise capital for production in agriculture, export, support industry, SMEs, hi-tech enterprises and start-ups. T&T Land launches its first housing project in Hanoi AsiaReal and STDA, two official sale agents, will launch T&T Riverview housing project with competitive pricing in Melia Hanoi Hotel on July 30. The project will offer an average price of VND20.4 million ($9,300) per square metres excluding value added tax (VAT). Located at 440 Vinh Hung ward in Hanoi’s Hoang Mai district, T&T Riverview has a total land area of 8,612sq.m with a total investment value of VND836 billion (US$38 million). The project consists of three blocks with 610 modern apartments, amenities, two basement garages and two-storey commercial space, kindergartens and other services. The highest block has 23 floors. T&T Riverview is beautifully and luxuriously designed from inside to outside. The harmony of design and a peaceful setting with more than 200 units overlooking Red River create an impressive picture. The construction has reached the 14th floor and the project is expected for hand-over in the second quarter of 2017. Taekwang Industrial to crack open Vietnamese fertiliser market On July 20, Korean-owned Korea-Vietnam Fertiliser Co., Ltd. (KVF) organised the ground-breaking ceremony of its US$60 million compound fertiliser production plant in Ho Chi Minh City’s Hiep Phuoc industrial park. According to newswire Pulsenews.com.kr, the construction is expected to start operation in September 2017. The plant will be equipped with modern technology lines imported from Spain, and will have a designed capacity of 360,000 tonnes of compound fertilizer containing nitrogen, phosphorus, and potassium per year, which will be exported to Southeast Asian countries, primarily to Japan and the Republic of Korea. KVF is a joint venture between Taekwang Industrial Co., Ltd. (Taekwang Industrial) and its subsidiary Huchems Fine Chemical Corporation. The mother company Taekwang holds a 51 per cent stake and Huchems the remaining 49 per cent. Once the plant comes into operation, Huchems will be in charge of the operation and management of the plant, while Taekwang Industrial will be responsible for sales and marketing. “Once completed in 2017, the plant is expected to account for nine per cent of the entire NPK compound fertilizer production in Vietnam. We expect the plant to generate 150 billion won (US$13 million) in sales a year,” said Choi Gyu-sung, president and CEO of Huchems. Taekwang Industrial also plans to implement a US$171 million shoe-manufacturing factory in 2B Hung Phu industrial park in Cai Rang district of the Mekong Delta city of Can Tho. The factory covers an area of 62 hectares, 52 hectares of which houses the production area, while the remaining 10 hectares is set aside as a service and commercial area and warehouses for lease. The investor is completing the necessary procedures to implement the project and expects to carry out the land clearance in the upcoming months. The factory’s construction is divided into three phases. The first phase’s construction is expected to kick off in 2016 and last until 2019, and the second and third phases are to be finished by 2022 and 2025, respectively. The factory constructed during the first phase will start operation in the first quarter of 2017, while the second phase will be inaugurated in 2020, and the third phase in 2023. Once the factory comes into operation, it will have a total capacity of 100 million products per year and create 30,000 jobs. Vietnam's top mobile retailer expands electronic chain The Gioi Di Dong (Mobile World), Vietnam's biggest retailer of mobile devices, plans to open another 286 electronics stores in an effort to double its market share to 30 percent next year, local media reported on July 21. In the first six months, the company launched 33 new outlets, expanding its Dien may Xanh (Green Electronics) chain to 119 stores around the country, according to news website VnExpress. Figures from the company showed that electronics sales grew 212% year-on-year to over VND4.56 trillion (US$202 million) in January-May. That was equivalent to more than 28% of its revenue in the same period. In September last year The Gioi Di Dong made a foray into the sector of food retail, and its chain Green Grocery now has 15 stores around Ho Chi Minh City. The company, which owns a chain of 977 mobile stores around Vietnam, expects its revenue to top US$1.5 billion this year, up nearly 34% from last year. Russia trade fair participating businesses get support Domestic enterprises will receive support for their participation in the Ho Chi Minh City Products Week to transpire October 6-14 in Moscow, Russia. The information was released at a July 21 conference to launch the trade fair, jointly held by the municipal Department of Industry and Trade (DoIT), the municipal Centre for Trade and Investment Promotion, the Embassy of Vietnam in Russia, and the Hanoi-Moscow Trade Centre Investment JSC (INCENTRA). Participating businesses will be able to enjoy discounts for accommodation, air tickets, brand name promotion, and free-of-charge booths. DoIT Deputy Director Nguyen Phuong Dong said the trade fair is designed to bolster exports and investment in Russia and the Eurasian Economic Union. Major items on show during the event include leather footwear,garments, handicrafts, wood products, agricultural products, tourism and financial services. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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Article 6
A series of 5-star hotels change hands Sofitel Plaza Hanoi and Duxton Saigon have been transferred to new owners at a time when many new hotel brands have opened in Hanoi and HCMC.  A report by CBRE, a real estate service provider, showed that Sofitel Plaza Hanoi will change its name to Pan Pacific in October 2016. The hotel, comprising 273 rooms and 56 serviced apartments, was opened in 1998 by the Ho Tay International Company. The new owner is Pan Pacific – PPHG from Singapore. Vietnamese BRG has successfully taken over Sedona Suites Hanoi in a deal worth $31.5 million. Sedona Suites, with 175 serviced apartments, villas and a club house opened in 1998 by Keppel Land from Singapore. Savills Vietnam, the broker, has announced the successful transfer transaction of Duxton Saigon at the price of $49 million. This is a 4-star hotel, with 191 luxury hotel rooms, 16 meeting rooms and other amenities, located on Nguyen Hue Boulevard in the business central district in HCMC.
The old owner of Duxton Saigon is Low Keng Huat, while the new owner is an anonymous investor from Singapore. In early June, Kumho Asiana Plaza owned by Kumho Asiana Group was sold to Mapletree from Singapore at $107 million. This comprises a 5-star hotel, apartment block and apartments for lease. The luxury hotel hosted US President Barack Obama stayed during his official visit to Vietnam last May. Prior to that, Liberty JSC transferred Novotal Saigon Center to Sai Gon Green View (SGGV Investment) at $46.7 million. Meanwhile, other hotel brands are expected to appear in the market in the time to come. Wyndham Legend Halong will be the first 5-star hotel in Vietnam belonging to Wyndham Group’s chain with 217 rooms. Wyndham now has 7,200 hotels with more than 600,000 rooms in 66 countries which bear 15 different brands. According to Savills, also a real estate service provider, 33 more hotels will join the market from the third quarter of 2016. However, there is only information about 15 projects expected to provide 4,700 hotel rooms. In HCMC, one 4-star hotel and 4 3-star hotels will join the market, while 3 3-star hotels will be closed. The total supply would be about 15,400 rooms from 121 projects. From the third quarter of 2016 to 2018, more than 3,100 hotel rooms from 14 projects are expected to be available in the market. In related news, a report on the hotel service sector released by Grant Thornton on July 6 showed that the sharp surge in the number of domestic travelers in 2015 (57 million travelers, up by 50 percent) helped the tourism & hotel sector gain $15 billion in turnover in the year. Duy Anh |
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Article 5
 These days Thu Huong no longer shops at the fresh produce market near her home, opting instead to hop in a taxi and head off to Aeon Co.’s 9-month-old mall in Hanoi. There, as she shops for her family of five, she can bask in the air-conditioning and enjoy free Wi-Fi. “It’s very convenient to shop there, I can buy all the different things that my family needs for a whole week. I also feel more modern and fancy when shopping in a place like this,” said the 30-year-old dairy company employee. With a young population, an expanding middle class and one of Southeast Asia’s fastest-growing economies, Vietnam is an alluring market for Aeon, Takashimaya Co. and Seven & i Holdings Co. The reason: China is slowing and growth is flat-lining at home. “The Vietnamese economy is growing rapidly and its middle class is explosively expanding,” said Nagahisa Oyama, who oversees Vietnam operations as the company’s chief there. “Its retail market is growing very quickly with strong appetite for spending, especially among young people." Young demographics And there are plenty of them in the nation of 93 million. Almost 60 percent of Vietnam’s population are under 35 years old and are becoming better educated, according to market research company Nielsen Vietnam.  The Aeon Mall in Hanoi. Photo: Bloomberg Four days after an Aeon Mall opened in Ho Chi Minh City July 1, it recorded sales that were 18 percent higher than originally estimated, according to the company. Aeon, Japan’s largest retailer by sales, currently operates four malls and 54 supermarkets in Vietnam. The number of Aeon supermarkets in the Southeast Asian country is more than double the grocery stores the company’s invested in China and comprises a third of supermarkets the Japanese business has opened outside its home market. They’re not the only Japanese firms looking to sow profits in the Vietnamese market. About 20 consumer companies from Japan -- from a chocolate maker to noodle company to a green tea manufacturer -- met with potential Vietnamese partners last Wednesday at an investment conference in Hanoi organized by Mitsubishi UFJ Financial Group Inc. and Vietnam JSC Bank for Industry and Trade. Japanese corporations are increasingly looking outside of the nation for growth. Aeon recorded a net loss for the March to May period, its third quarterly loss within a year as a declining and increasingly frugal Japanese population capped sales. “We think competition in the Vietnamese retail market will increase with Japanese convenience stores as well as Korean and Thai companies entering there,” Oyama said. The company’s tie-ups with local grocery chains Citimart and Fivimart will help expand its business, he added. Shares of Aeon rose 0.4 percent to 1,505 yen as of 10:15 a.m. in Tokyo trading, trimming this year’s drop to 19.4 percent. Takashimaya gained 1.9 percent to 793 yen while Seven & i advanced 0.9 percent to 4,488 yen. Japan’s benchmark Topix index climbed 0.8 percent. The world’s fastest-aging major nation saw its Japanese population drop the most on record, falling for a seventh straight year in 2015. By contrast, Vietnam’s young demographics is also bolstered by growing average incomes which rose to $2,111 last year compared with just $433 in 2000, according to World Bank data. Evolving retail Consumers in Vietnam increasingly desire better quality shopping experiences, prompting the country’s retail model to evolve from one mainly dominated by neighborhood wet markets that sell fresh produce, according to Nielsen Vietnam.  Sushi at the Aeon Mall in Hanoi. Photo: Bloomberg. The country has nearly 9,000 wet markets, 800 supermarkets and more than a million small stores run by individual households, according to a government report in June. Spending at formal retail stores and centers, as opposed to traditional local shops, is expected to rise to 40 of consumer spending by 2020, up from 25 percent currently, the report showed. Vietnam’s retail shift took off two years ago, aided by “both local giants and multinational companies who are accelerating their development to build solid footprint,” Roberto Butragueño, Nielsen Vietnam associate director of retail services, said in an e-mail. Shoppers in the country are also becoming more demanding. While six in 10 Vietnamese expect stores to be within reach, nearly as many also want them to be organized in such a way that enhances the shopping experience, according to Nielsen, which surveyed 30,000 people in 61 countries. Young population Department store operator Takashimaya will open a 15,000 square-meter (161,000 square feet) department store in the Saigon Center in Ho Chi Minh City this month, its first in the country to tap faster-growing markets abroad especially in Southeast Asia, Tokyo-based spokesman Hironobu Hanai said. Vietnam’s young population and high growth rate is attractive and Takashimaya has invested about 5 billion yen ($47 million) into the nation since 2012, including in the new store and other real estate, Hanai said. Japanese convenience store giant 7-Eleven last year signed a franchise agreement with Seven System Vietnam as part of its expansion plan in Pacific Rim. And the interest is not limited to Japan, as Korean retail conglomerate Lotte Group targets to open 60 supermarkets in Vietnam by 2020, while Thailand’s TCC Holding Co. acquired Metro AG’s Cash & Carry wholesale business in Vietnam for 655 million euros ($720 million) Plastic bags Homegrown retailers are pushing back. Hanoi-based Vingroup aims to open as many as 500 supermarkets and 8,000 convenience stores under its VinMart and VinMart+ brands in the next five years, even as large retailers from overseas have "created difficulties for local companies,” the property developer said in an e-mail. Mobile World Investment Corp., Vietnam’s top mobile-phone retailer, plans to launch grocery stores next year. This new segment is expected to grow much faster than its mobile-phone and consumer electronics retail business, Chairman Nguyen Duc Tai said in an interview. “The market is very huge here. People change mobile phones only every two years on average while they have to buy fresh food and meat everyday,” Tai said. “Ten years ago, you see women carrying plastic bags to the wet markets to buy food every morning, but you may not see this image in the future. This is what we call ‘generation change.’” |
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Article 4
Legislator who approved Formosa’s Vietnam operations deflects blame  Vo Kim Cu gestures during an interview with Tuoi Tre (Youth) newspaper on July 24, 2016. A former top official in the north-central province of Ha Tinh may have licensed Formosa to begin operations in the area, but believes he should not be blamed for any failures of the Taiwanese company following his approval. Vo Kim Cu was deputy chairman of the Ha Tinh administration and head of the management board of the Vung Ang Economic Zone in 2008, when Formosa Plastics Group received the investment license for its steelmaking project in Vietnam. That year, Cu signed a proposal on behalf of the province’s chairman, calling on the government to consider allowing the Taiwanese firm to invest in Vung Ang. Later the same year, as head of the economic zone, Cu granted the license for Formosa to officially start operations. In January 2015, Cu held three high positions at a time: chairman of the provincial administration, secretary of the province’s Party Committee, and a lawmaking National Assembly member. He is now a member of the assembly and chairman of the Vietnam Cooperative Alliance, but keeps no post in the Ha Tinh administration. While it is obvious that Cu held a crucial role in approving Formosa’s steelmaking facility in Ha Tinh, he has never accepted any request for comment on his responsibility, when the Formosa facility was hit by the fish death scandal in April and May. He refused to answer calls from the media, and tried to avoid reporters who attempted to meet him on the sidelines of the recent National Assembly meetings. On Sunday night, he finally agreed to talk with Tuoi Tre (Youth) newspaper, but consistently deflected blame for all the damage Formosa Ha Tinh has caused. Cu said he had rejected the media over the last three months because “[I] was too busy,” and because “a 20-minute break at the National Assembly meeting is too short to talk anything in detail.” “Some reporters also contacted me when the government was conducting studies to find the cause of the fish deaths, so I just could not make any statements then as it was beyond my authority,” he explained. ‘Not me’ Asked if he had ever thought of the negative consequences Formosa may cause when licensing their investment in Ha Tinh, Cu said the news of the company’s environmental disaster had hit him like a bolt of lightning. “I was really surprised,” he said. “We insisted that Formosa strictly follow the Vietnamese law and environmental protection standards, and we thought they would do so, given their huge investment in the project.” The lawmaker said that when he was the top official of Ha Tinh, Formosa was only doing the site clearance task and there was no environmental impact then. “When the company started bringing their machinery and equipment there in 2015 and 2016, I had already left Ha Tinh and could not oversee their operations anymore,” he explained. On June 31, Formosa admitted that untreated water dumped directly into the sea from its steel mill in Ha Tinh was the main cause of the deaths of hundreds of tons of fish along four central Vietnamese provinces. The environmental disaster also affected some 100,000 fishermen and local laborers of the fishing and seafood industries, according to a government report. Formosa has pledged US$500 million in damages.  A corner of the wastewater treatment system of Formosa in Ha Tinh In 2008, Cu told the media that Formosa would open a new, brighter future for Ha Tinh with multibillion-dollar revenue and numerous new jobs for locals. But the reality is that fish died en masse and fishermen were impoverished by the Formosa project. Cu said he “feels sorry for these losses,” but asserted that “if it had not been for the fish death scandal, Formosa would have indeed generated jobs for thousands of local residents and revenue for [Ha Tinh].” The official refused to admit that his Formosa forecast was wrong. “In 2014 Ha Tinh made nearly VND10 trillion [$446.43 million] in revenue, and surpassed that number the following year,” he said. “So if the environmental disaster had not happened, things would have gone in line with my prediction.” With Cu insisting that he did not do anything wrong, Tuoi Tre asked if he can feel totally relaxed when a huge number of people remain affected by the scandal. His answer remains the same. “The licensing of Formosa was in line with regulations, but the wrongdoings are totally the business of Formosa,” he said. So does this mean that Cu and other Ha Tinh officials at the time Formosa got its license carry no responsibility for the scandal? Cu simply said, “The licensing [of the project] was right, but its implementation is wrong.” Asked who will be held accountable for overseeing the project’s implementation, if not the province’s administration, Cu said the responsibility was with “competent agencies.” In the end, Cu said he is only “partially responsible” and that the Formosa scandal should be made a lesson for other projects before implementation. The official also rejected allegations that some people want him stripped of the role as a National Assembly delegate. “I have never heard of anything like that,” he said. TUOI TRE NEWS |
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Article 3
Flames destroy factory, neighboring company storage in Hai Phong  Flames engulf the Aroma Bay Candles Factory in Hai Phong City on Sunday evening. Photo credit: VnExpress. A foreign-owned factory in Hai Phong city and a portion of the neighboring property were destroyed in a fire Sunday evening that blazed away for nearly eight hours. Aroma Bay Candles, which was around 3,000 meter squares in size, was totally destroyed, as was a 1,000-meter portion of the Vinh Chan Toy Company’s storage area next door, authorities said. The fire began at the Chinese-owned candle factory at around 7 pm Sunday. More than 600 firemen and dozens of fire trucks were mobilized, but it took until 2:30 this morning to put out the blaze. There were no casualties though several firemen passed out from the smoke, while officials estimated the losses at tens of billions of dong. All company bosses had left for China for the weekend and could not be reached for comment.  A fireman passes out in the battle with a fierce fire that broke out at Chinese–owned Aroma Bay Candles in Hai Phong city Sunday evening. Photo credit: Baoxaydung  The flames destroy the Aroma Bay Candles factory |
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Article 2
Great results for Vietnam’s M&A marketFollowing a successful 2015 and a promising first half of 2016, the Vietnamese mergers and acquisitions scene is poised to extend its momentum for the foreseeable future.
A look back at 2015 and early 2016 2015 has been a positive year for mergers and acquisitions (M&A) worldwide, according to the American law firm WilmerHale. In the Asia Pacific region, the total value of M&A activities have jumped by 39 per cent to reach $980.4 billion. Specifically, the Vietnamese M&A market recorded $5.2 billion worth of deals in 2015 and $3 billion in the first half of 2016, rising 28 per cent year-on-year. The MAF Research Team, including experts from the Institute of Mergers, Acquisitions and Alliances, Vietnam National University of Hanoi, and others, noted that investment waves from countries in the region have triggered M&A transactions in Vietnam. The most active foreign investors in 2015 and early 2016 are from Japan, Singapore, and Thailand. “The Vietnamese government has shown great determination to equitise its state-owned enterprises (SOEs), as well as launch progressive laws to welcome foreign investment and improve the business environment. Moreover, Vietnamese macro-economics figures have been quite stable, luring overseas investors to the domestic M&A scene,” noted the MAF researchers. Foreign buyers were also buoyed by Vietnam’s bright prospects following the historic Trans-Pacific Partnership agreement, signed in February, and the ASEAN Economic Community, established in January. Small-to-medium-sized deals, which accounted for 60 per cent of the Vietnamese M&A market last year, took place mostly among domestic companies. In contrast, the majority of foreign investors participated in deals worth $30 million and above, especially in mega-deals of over $1 billion. Researchers also pointed out a recent trend in Vietnam-based M&As, in which foreign corporations purchased large stakes from investment funds. Funds usually divest from firms after a few years to reap their profits, thus they can act as a catalyst for M&A deals. For example, Taisho Pharmaceutical Company from Japan recently bought shares from various investment funds to take up 24 per cent of DHG Pharma JSC’s stakes. Notable industries The most sought after industry for M&A deals in Vietnam is consumer goods and retail. According to the MAF Research Team, transactions in this industry alone have accounted for 38.4 per cent of the total M&A value in 2015 and the first half of 2016. This staggering percentage shows that foreign investors are particularly excited about Vietnam’s young population of 90 million-plus consumers. Sizeable deals include Vingroup’s acquisition of domestic retailers Ocean Mart and Maximark, Thailand-based Berli Jucker Corporation’s takeover of Metro Vietnam, and Japanese Aeon Group’s investment in Citimart and Fivimart. The most significant transaction in consumer goods and retail is Central Group buying out Big C Vietnam with $1.14 billion, together with Singha to become Masan Group’s strategic partner at $1.1 billion. These two deals are so huge that their value accounted for one-fourth of all M&A activities in 2015 and the first half of 2016. It is also notable that both deals have Thai investors on the buying end. “The Vietnamese consumer goods and retail industry enjoys impressive growth potential. In the near future, investors will also regard M&A deals with Vietnamese firms as a gateway to ASEAN’s 600 million people,” said MAF researchers. Many industry leaders, such as Vinamilk, Saigon Beer Alcohol Beverage Corporation and Tan Hiep Phat, are likely targets for overseas investors in the coming years. Notably, the dairy giant Vinamilk scrapped its foreign ownership limit in June, to welcome overseas investment capital. Another industry that has lured many foreign M&A investors is real estate. Singaporeans are clearly the most active buyers in the first half of 2016, as Keppel Land took 40 per cent stakes in the $1.2-billion Empire City project and Mapletree bought out Kumho Asiana Plaza Saigon with $215 million. On the seller side, Low Keng Huat reaped $49 million from its Duxton Hotel Saigon divestment. “The Vietnamese property industry has developed dramatically in recent years, leading to a shortage of prime locations in big cities and famous resort towns. As a result, M&A deals in property are expected to rise in the future, and buyers will need a solid financial background and strong determination to conquer the Vietnamese market,” read the MAF report. Potential realty segments for M&A are residential projects, hotels and resorts, logistics, and industrial zones. Investors from Singapore, South Korea, and Japan are the most likely to conduct large M&A transactions. The third industry with M&A potential is banking and financial services. Overseas deals to acquire Vietnamese commercial banks are rare, due to their 30 per cent foreign ownership cap, but foreign investors have been aggressive in buying finance companies. A notable example is the Credit Saison HDFinance deal. Similarly, insurance deals have soared, with overseas groups like Chubb or FWD acquiring ACE Life Vietnam and Great Eastern Vietnam respectively. Experts forecast that banking and financial services are attractive for M&A in coming years, as the Vietnamese financial sector continues restructuring and retail banking becomes more popular with domestic consumers. The rise of start-ups Topica Founder Institute revealed that the number of Vietnamese start-ups receiving investments has jumped from 28 in 2014 to 67 in 2015. Investors were particularly keen on start-ups in e-commerce, financial technology (fintech), media, and educational technology. Among these transactions, early seed capital accounted for 25.8 per cent. Four deals in series C, a term for investments in matured start-ups, were all above $10 million each. M&A transactions include Vietnammm taking over Foodpanda, Weebly.co buying Tappy, and Yellow Mobile acquiring Clever Ads Corp and Websosanh. Experts believe that Vietnamese start-ups are poised to burgeon in 2016, thanks to the fast adoption of the Internet and technology in the country, together with progressive laws to promote entrepreneurship. For instance, the Vietnamese E-commerce Association predicted that e-commerce in Vietnam would grow by 30 per cent each year between 2016 and 2020. In 2020, online trading will reach $10 billion in value, taking up 5 per cent of the Vietnamese retail market. This attractive growth potential will give rise to more investments and M&A deals between domestic start-ups and foreign investors. Challenges Despite their optimism about the Vietnamese M&A market, experts still warn of potential difficulties that may impede deals. The MAF Research Team noted that the equitisation process of SOEs has been slow and the government still keeps the majority of shares in these companies. Some have even failed to find a strategic shareholder after many years. All of this is likely to discourage M&A investors in equitised SOEs. Secondly, the legal system governing M&A activities needs improvements, as regulations on foreign ownership levels, planning, and taxes remain vague. Thirdly, equitised private firms, start-ups and SOEs should be transparent about their financial health and business plans to help investors reach a well-informed decision. By Nam Phuong, VIR |
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Article 1
Slight rise in July consumer prices
HÀ NỘI - Việt Nam’s consumer price index (CPI) rose a modest 0.13 per cent month-on-month in July, the lowest increase since February 2016, the General Statistics Office (GSO) announced. The index represented a year-on-year increase of 2.39 per cent. That was also lower than figures recorded in the past 10 years, the GSO said. For example, in July 2006, it surged 7.5 per cent and 27.04 per cent in July 2008; in July 2013 it rose 7.19 per cent and 4.94 per cent in July 2014. In the first seven months of this year, the CPI grew 1.81 per cent compared with the same period last year, it noted. Đỗ Thị Ngọc, deputy head of the CPI department, attributed the modest rise partly to a 0.05 per-cent decrease in restaurant and catering services, which accounts for nearly 40 per cent of the goods basket. The drop was due to falling prices of food and food stuff at 0.64 per cent and 0.01 per cent. Among other groups of products and services, the highest price increase of 1.19 per cent was recorded in transportation services, followed by house and building materials with 0.14 per cent, and beverages and tobacco with 0.09 per cent. Prices also rose 0.06 per cent in equipment and home appliances; 0.04 per cent in garment, hats and footwear; and 0.02 per cent in medicine and health services. Hà Nội’s CPI The CPI in the capital city continued to rise in July for the seventh consecutive month, the municipal Statistics Office reported. The biggest rise was recorded in transportation services, mainly due to the price hike in petrol and oil. It was followed by housing, electricity, water, fuel and building materials due to higher demand in summer. Meanwhile, restaurants and catering services showed a price slight decrease compared to the previous month, it noted. Viet Nam News |
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Article 0
SYRIAN REFUGEE KILLED BY OWN BOMB AT GERMAN BAR  BERLIN - A Syrian refugee has been killed setting off a bomb at a bar in southern Germany which also wounded a dozen other people late Sunday, authorities say, the third attack to hit Bavaria in a week. The 27-year-old man, whose asylum application was rejected a year ago, had been targeting a nearby pop music festival, regional interior minister Joachim Herrmann said, according to DPA. Some 2,500 people have been evacuated from the concert after the explosion went off in front of a bar in the centre of Ansbach at around 10:00pm (2000 GMT). Police have blocked off the city centre and emergency services were at the scene. Bomb experts were also on their way to determine the cause of the blast. "An explosion went off in the city centre and a man, who the latest enquiries show caused it, was killed in the event," police said in a statement. A dozen people were wounded in the explosion, three of them seriously, added a spokeswoman, without giving any more details. Michael Siefener, a spokesman for the regional interior ministry, said the explosion "was set off deliberately," adding that authorities were trying to establish the exact cause. The blast is the third incident to hit the southern German state of Bavaria in a week, after nine were killed in a shooting rampage in Munich and several were wounded in an axe attack on a train. Europe has been on edge for months after a string of deadly attacks claimed by the Islamic State jihadist group, including bombings in Brussels and carnage at Bastille Day celebrations in the southern French city of Nice. Obsessed with mass murder Police released more details of Munich attacker David Ali Sonboly on Sunday, saying the 18-year-old was depressed and had spent two months in a psychiatric unit last year. The Afghan teen was obsessed with mass killings and spent a year preparing for the gun attack that killed nine people, most of them foreigners. At least 35 people were also wounded during Sonboly’s shooting spree, which began at a McDonald’s branch and ended with him turning his 9mm Glock pistol on himself. Investigators have ruled out any link with the jihadists, though he appears to have planned the assault with chilling precision. Police have also arrested a 16-year-old friend in connection with the attack. Hundreds of people, many of them in tears, gathered outside the Munich shopping centre where the attack took place to pay tribute to the victims on Sunday. Already steeped in grief and shock, Germans were further rattled by news that a Syrian refugee had killed 45-year-old Polish woman with a machete in the city of Reutlingen. Police said that incident on Sunday, in which three others were injured, did not bear the hallmarks of a "terrorist attack". "When a man and woman have an argument, we assume that we are dealing with a crime of passion," a local police spokeswoman told German news agency DPA. Three people were also injured in the attack, which ended when the 21-year-old assailant was hit by a BMW. NTV showed amateur video footage of the suspect running away from the scene before cutting to him lying on the ground, his face bloodied and his hands cuffed by police. - AFP
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Article 13
Vietnam-Japan investment ties remain robustThe numerous areas that affect trade and investment between Vietnam and Japan, one of the nation’s largest export partners, were the subject of a lively exchange earlier this month at a luncheon meeting.  The meeting between the Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and leaders of Japanese companies along with the Japan External Trade Organization (JETRO) touched upon a host of topics such as the legislative and regulatory processes and attitudes toward pending trade agreements. Trans-Pacific Partnership The Japanese business executives reiterated their support for the Trans-Pacific Partnership Agreement (TPP), which would facilitate trade and promote investment between the countries that are party to it, if ultimately ratified. The TPP contains 30 chapters of trade, labour, intellectual property, and environmental regulations. Approval of the TPP is currently stalled in the US Congress, principally held up by the US presidential election process underway, but there remains a fading glimmer of hope that the agreement will be approved by the US. Cost of Doing Business Also discussed at the luncheon was the cost of doing business in Vietnam. On July 21, JETRO is scheduled to send a delegation of over 20 businesses from Tsubame-Sanjo to HCM City to participate in trade negotiations with a large number of Vietnamese businesses. Tsubame-Sanjo, which lies in the centre of Niigata prefecture, is a thriving area that produces some of the world’s finest machined metal products. Speakers at the luncheon introduced a survey conducted by JETRO summarizing factors that Japanese investors take into account along with the obvious advantages a large consumer market the size of Vietnam, in making investment decisions. The JETRO survey of Japanese companies showed an uptick in respondents identifying labour costs the most striking positive element affecting their decision to invest and operate in Vietnam. Recently, JETRO launched programs in HCM to supply goods to Japanese businesses operating in Vietnam. In early July, JETRO organized a Japan Pavilion program at the MTA Vietnam (the International Precision Engineering, Machine Tools and Metalworking Exhibition) to support businesses seeking new markets. Over the years, the program has helped strengthen trade links between the two nation’s businesses. According to statistics from JETRO, there were up to 1,224 business transactions in 2013, 1,471 in 2014 and 1,661 in 2015. The figure is expected to increase this year. In 2017, the Japanese leading retail group Takashimaya is expected to put the Saigon Centre into operation, its first retail centre in the Southeast Asian region. Another popular brand in Ho Chi Minh City is AEON. With large-scale points of sales and a diversified entertainment section, AEON has met with consumers increasing demands. AEON recently inaugurated its fourth shopping mall in Binh Tan district, HCM City and is scheduled to establish another retail centre in district 8. In the coming time, AEON plans to open 20 shopping malls throughout Vietnam. VOV |
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Article 12
Foreign direct investment in HCM City drops Foreign direct investment (FDI) registered in HCM City has decreased by 65 percent year-on-year, according to the municipal Statistics Office.  Electronics products manufactured at Japanese-invested Mtex Vietnam in HCM City. As of July 15, the country's major economic hub lured only 863.6 million USD , much lower than 2.5 billion USD in the same period last year. According to the office, real estate remained the most attractive sector to foreign investors, attracting 280 million USD or 43.7 percent of the city's total FDI. Trade ranked second with 185 million USD or 28.9 percent. In the period, the Cayman Islands were the city's leading source of FDI with 231 million USD . It was followed by Japan with 96.1 million USD ; Singapore (87.2 million USD ); the Republic of Korea (51.2 million USD ); British Virgin Islands (45 million USD ) and Taiwan (30.3 million USD ). Deputy Director of the municipal Department of Planning and Investment Le Thi Huynh Mai told Sai g on Giai Phong (Liberated Saigon) newspaper that the city's FDI results did not reflect its overall picture of investment attraction because large-scale projects were often proposed by foreign investors in the second half of this year. To create favourable conditions for investors, HCM City continued to allocate more cleared land for production and upgrade infrastructure at industrial parks and export processing zones, Mai said. The city was expanding the second phase of the Sai g on Hi-Tech Park by 600ha and planned to expand Quang Trung Software Park. It also focused on speeding up administrative reforms, she said. Earlier, Mai said that HCM City considered FDI important in its development. The city would attract FDI in knowledge and technology industries, supporting industries and bio-technology to realise that city's goal to become a knowledge economy, achieve green growth, and improve development quality and competitiveness, she noted. VNA |
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Article 11
Nha Trang Bay floating restaurants suspended Cam Ranh City's People Committee has decided to ban 22 floating restaurants from operating in Cam Ranh Bay due to safety concerns.  A floating restaurant in Cam Ranh Bay The committee's spokesman, Nguyen Khiem, said the decision was made yesterday (July 25) following the recent sinking of a floating restaurant in Ninh Thuan Province which killed 2 passengers. “There are 22 floating restaurants operating around Binh Ba and Binh Hung Islands which do not meet safety standards," Khiem said. "We'll have a meeting with representatives from all wards and communes to give detailed instructions on monitoring the operation of these restaurants." According to head of Nha Trang Bay Management Board, Huynh Binh Thai, there are 11 floating restaurants operating around Vung Ngang and Hon Mot areas but most of them do not meet safety standards. "These floating restaurants are designed almost the same as the sunken one in Ninh Thuan," Thai explained. "They have wooden frames, metal roofs and float on plastic containers attached to the sides. And they can easily sink if hosting too many passengers at a time." However, a representative from Cam Binh Ward said that there haven't been any specific regulations on the size, design or the number of passengers allowed on these floating restaurants. On July 23, a floating restaurant in Vinh Hy Bay in the south-eastern province of Ninh Thuan suddenly sunk, knocking 300 passengers into the sea. Two people died and four others were injured. The sinking set alarm bells ringing about safety standards. By Viet Hao, dtinews.vn |
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Article 10
Japanese coast guard vessel begins visit to Vietnam  The Japan Coast Guard training vessel Kojima docks at Tien Sa Seaport in the central Vietnamese city of Da Nang on July 25, 2016. A ship from the Japanese Coast Guard arrived at a seaport in the central Vietnamese city of Da Nang on Monday, commencing its official visit to the Southeast Asian country. The Japan Coast Guard training vessel Kojima carrying 91 naval officers and sailors docked at Tien Sa Seaport in Da Nang City in the morning. Their visit is scheduled for July 25 to 29. Captained by Colonel Nanaura Hiroyuki, the ship is 115 meters long and weighs 3,000 metric tons with a maximum velocity of up to 18 nautical miles per hour. The visiting delegation was welcomed by representatives of the Vietnam Coast Guard Command, the Da Nang People’s Committee, the municipal Border Guard, and other local officials.  A crew member of the Japan Coast Guard vessel (L) shakes hands with a representative of the Vietnam Coast Guard on July 25, 2016.Photo: Tuoi Tre Coast guard forces from Vietnam and Japan have both been active members of the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP). The two parties have developed tight cooperation in the enforcement of maritime law over the years. Established in September 2006, ReCAAP is the first regional government-to-government agreement to promote and enhance cooperation against piracy and armed robbery in the continent and has now been joined by 20 states. This is the first official visit of the Japan Coast Guard after signing the memorandum of cooperation with its Vietnamese counterpart in September 2015. During their time in the central Vietnamese city, crew members of the training vessel Kojima are expected to meet with local leaders, naval forces and participate in a friendly sports competition with Vietnam Coast Guard officers. TUOI TRE NEWS |
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Article 9
Famed musician releases new work Veteran musician Nguyen Cuong is back and better than ever, with his new musical work entitled Da Giang – Dai Hop Xuong (Da River – Masterpiece Chorus).
The work comprises four movements about Da River and Muong culture in the northern Hoa Binh Province. “I intended to write a song, but after getting to know more about the Muong culture, De Dat De Nuoc, a Muong epic that explains how the universe was created, I thought it needed much more than a song,” Cuong said. The first movement entitled Da Giang Bi Vang Thang Dong is a musical narration of a Muong epic. It features the roots and progress of Muong ethnic culture, which is seen as belonging to a legendary and mysterious land. The musician was inspired by literary works of noted poets Tan Da and Vu Hoang Chuong, writer Nguyen Tuan and musician Phạm Duy to create the second movement entitled Thuyen Du Ben Nuoc Song Trang. The Duong Len Tay Bac movement reminds people of the Dien Bien Phu Victory, which was in part due to thousands of young volunteers who transported rice to the Tay Bac region. The final movement entitled Ta Xay Thanh Pho Mo Cung Song Da is about a desire to build a modern city along Da River. The piece was warmly welcomed and highly appreciated at the launching ceremony held recently. “Cuong shows freshness and creativity in his new work,” musician Pham Ngoc Khoi, deputy head of the Viet Nam Musicians’ Association, said. “It is a masterpiece of Vietnamese music in the 21st century.” From a historian’s angle, researcher Duong Trung Quoc said it was not only a musical work about Da River but also about the Vietnamese people. “It is not by chance that Da River flows through the Muong ethnic area, which is seen as the oldest area in Viet Nam. Da River has provided rich plains to the country.” The chorus has been commissioned by businessman Vu Duy Bong to celebrate the 130th anniversary of Hoa Binh Province. Cuong visited Hoa Binh Province several times and read many books. He researched about Hoa Binh culture and its people for a year. “The trips to Hoa Binh Culture were a return to the roots of Vietnamese culture,” the musician said. Born in 1943 in Ha Noi, Cuong is known for composing songs about the Central Highlands, in which he incorporates traditional musical ideas. VNS |
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Article 8
Ha Tinh's official reprimanded for statue breast kiss An official in Ha Tinh Province is facing public criticism and a reprimand after the photo of him kissing the breast of a statue at a local tourism site went online on July 21.  Anh kisses the statue breast After the photo surfaced on Facebook, it was met with public outrage. In the photo, Phan Tuan Anh, an official from the Vu Quang District People's Committee, Ha Tinh Province, climbed up to a female statue a folk character and kissed her naked breast. The photo was posted online by Tran Le, head of the district’s administration office. Phan Tuan Anh admitted that it was him in the photo and said he was intoxicated. According to Anh, they had a party while he was on holiday trip in Da Lat and he was drunk. "My action was wrong," he said. On July 25, Pham Huu Binh, party secretary of Vu Quang District, said they had reprimanded the official and asked Anh to reflect on his action. "It was extremely offensive. We gave him a stern warning and asked for a report on the incident. The district people's committee will hold a meeting about the issue," he said. The statue relates to a folk love story. K’lang and H'biang were son and daughter of rival tribes. They accidentally met in the woods and fell in love with each other but their love was not accepted by their families. They decided to leave together but H'Biang fell seriously ill so K'Lang brought her back the village for treatment. However, they were attacked. H'Biang died after taking an arrow aimed toward K'Lang. K'Lang returned to the mountain where they had lived and committed suicide. After their deaths, the tribes grieved and merged into one. They became the Co Ho ethnic group. The mountain where the couple had lived named Lang Biang and the river named Da Nhim, or tears in the Co Ho language. Dtinews |
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