What will investors' profits be in 2016? Of the five most popular investment channels, the real estate sector brings the most satisfactory profits as investors not only can expect profits from price increases, but also from property leasing.  Gold The domestic gold price varied regularly in the first 10 months of the year because of fluctuations in the world market. On November 1, SJC gold in Hanoi was sold at VND35.75 million per tael. This means that those, who bought gold earlier this year, when the price was at VND32.55 million per tael, would make a profit of VND3.2 million, or 9.8 percent. The price increase was partially caused by the British voters’ decision to leave the EU. The gold price soared sharply because of the news about the US election, but the gold market has cooled down. Analysts say there always latent risks with investments in gold, because the gold price heavily depends on monetary policy. The government is striving to mobilize gold among people as capital for economic development. Dollars
In late 2015, the State Bank of Vietnam decided to ease the interest rate to zero percent for dollars deposited at banks by individuals and institutions. Since then, it has become an unattractive investment channel in Vietnam. Those, who bought dollar earlier this year will take a loss if they want to sell dollars at this moment. The dollar was traded at VND22,450 per dollar at the beginning of 2016, whiich is now priced at VND22,355 per dollar only, a decrease of VND95, or 0.4 percent. Bank deposits With the ‘interest rate race’, where banks try to raise deposit interest rates to attract idle money from the public, depositors have opportunities to make high profits with deposits. Most banks offer the interest rates of 6.2-6.4 percent per annum. With the inflation rate of 4 percent in the first 10 months of the year, the real profit depositors can pocket is 2.5 percent. Securities After it plummets, the stock market regained strength with prices of many shares having increased significantly. By November 1, the VN Index had increased by 100 points, or 20 percent compared with earlier this year. Real estate The 2016 real estate market is on a strong rise. The Ministry of Construction’s report to the National Assembly said the market is seeing sustainable development for five reasons 1) the selling price has increased by 1-5 percent 2) liquidity has improved 3) the market segment’s structure fits real demand 4) the inventory level is on the decrease and 5) lending to real estate sector is on the rise. Kim Chi, VNN |
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Article 10
Building resilient ASEAN supply chainsSignificant logistics challenges remain in getting the entire ASEAN bloc fully in sync, said participants at a recent business forum in Hanoi discussing the status of the region’s supply chain.  The marketplace for the ASEAN Economic Community (AEC) formed last year comprises the 10 nations of Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. In 2015, the AEC was collectively the third largest economy in Asia and the seventh largest in the globe, they said, noting the market has a population of 622 million people with a forecast annual GDP of more than US$2.6 trillion for 2016. In 2015, intra-ASEAN trade and investment reached US$608.3 billion and US$24.4 billion or 24.1% and 17.9% of the total trade and foreign direct investment for the region, respectively. In other words, roughly one out of every four dollars of trade and nearly one out of every five dollars of foreign direct investment within the region involved only members of the AEC 10 member countries. The combined GDP of the region reached US$2.57 trillion in 2015, with average GDP per capita having nearly doubled since 2010 to US$4,135. The speakers said they expect that trade and investment within the region to remain robust during 2016. But all Southeast Asia – including the AEC member countries – is at a logistical tipping point, with modernization and economic factors driving the need for installing a much more highly complex, modernized, sophisticated and efficient supply chain. According to real estate analysts at the conference, the existing buildings in many of the emerging markets are old and were built to accommodate yesterday’s industries and are simply incompatible with the commercial needs and digital technologies of today. Real estate facilities that contain key enabling technologies are crucial to the supply chain activities of the industrial landscape of tomorrow, they said, noting that Vietnam is leading the bloc in procuring the domestic distribution facilities needed. Maritime Outlook Ocean shipping lanes are also vital to achieving an effective supply chain network. Most notably, they said the Mega ports in Singapore and Malaysia are already equipped to handle the new generation of supersized container vessels, which puts the region in a strong forward looking position. The ASEAN Single Shipping Market plan signed earlier this year lays out a strategy to create an efficient ocean shipping network to facilitate the movements of goods throughout the ASEAN community and around the globe. To achieve this vision, however, the ASEAN countries need to remove many existing barriers to logistics performance. Ports in Thailand are also good, while the port quality in Indonesia, Philippines and Vietnam are currently lagging far behind Thailand, they said noting this is expected to change as the market adjusts to more trans-shipments in the region and the ASEAN Single Shipping Market plan given effect. Air Cargo Outlook The ASEAN aviation industry fills a crucial role in connecting the community and has a current combined investment schedule value of US$34 billion. The proposed development value is at varying stages of construction, with some already nearing completion and others at the planning stage and not due to be completed until 2020. Vietnam is clearly the most proactive country in terms of investment in air transport, having attracted close to US$12 billion into seven projects. Indonesia’s air cargo industry, meanwhile, is expected to benefit from a multilateral agreement on the opening of freight services between ASEAN countries—a move that promises to help increase air cargo volume by at least 50% in 2016 against last year. VOV |
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Article 9
Financial investment: foreign funds ready for disbursement Fund management companies that have been in Vietnam a long time are moving ahead with plans to raise new funds in anticipation of great opportunities to come from equitized state-owned enterprises, profitable listed companies and private businesses with potential.  A representative of VinaCapital, which now manages three funds listed on the London stock market with total asset value of $1.5 billion, said VinaCapital would put the second domestic fund into operation in the Vietnamese market in November. The fund would be open to both Vietnamese and foreign investors with initial investment capital of $5 million. It would target companies with shares being transacted on the OTC or UpCom markets. Prior to that, in August 2016, VinaCapital cooperated with Shinhan BNP Paribas Asset Management to develop the funds for South Korean investors. In the immediate time, the two sides would join forces to develop VIP Equity Fund, which specializes in making investment in public companies in Vietnam, Indonesia and the Philippines. In the long term, VinaCapital and Shinhan would develop investment funds which invest in many different types of assets in Vietnam, such as stocks, bonds and real estate.
Mekong Capital, the largest fund management company in terms of investments in unlisted equities, is the pioneer in raising new funds after the global financial crisis which lasted from 2008 to 2014. Since 2001, Mekong Capital has been managing four investment funds which have made 30 investment deals in unlisted equities. Mekong Enterprise Fund III (MEF III) made its debut in May 2015. One year later, MEF III completed the mobilization of $112.5 million worth of capital and has made some investment deals, including investment in Wrap & Roll (restaurant chain) and ABA Trade Solutions. MEF III focuses on companies in the fields of retail, restaurant and consumer goods & services. Meanwhile, Saigon Asset Management (SAM), which is now managing Vietnam Equity Holding (VEH) and Vietnam Property Holding (VPH) – both of them set up in 2007 – after becoming the strategic partner of the My Chau drug store chain in early 2016, has been looking for the opportunities to cooperate with private businesses with high growth rates. According to Nguyen Thi Thu from VVF, investors are paying attention to some certain business fields. VinaCapital, for example, would focus on the retail sector and consumer goods. Investors are also interested in companies in infrastructure development (road and seaports) and industries and construction which saw a six-year record growth rate recently. The shares of power, water and gas companies are also attractive because of the prediction that the power sector would grow by 10-15 percent to ensure a GDP growth rate of over 6 percent. Thanh Mai, VietNamNet Bridge |
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Article 8
9% of Vinamilk's stake up for sale this year Nine percent of Vinamilk will go on sale in early December according to the State Capital Investment Corporation (SCIC).  Vinamilk Tower in HCM City The information was announced by Nguyen Chi Thanh, deputy director of SCIC on November 21 in HCM City. 130.6 million Vinamilk shares will be listed at the HCM City Stock Exchange. Investors can register for bidding at Saigon Securities Inc. and deposit 10% of the starting price. The deposit will be returned within three days if the investors fail in their bid. SCIC will continue to hold meetings to determine the starting price. However, there are opinions that SCIC needs more than one auction agent to provide a wider access to various investors. In addition, the announcement was announced at short notice so many investors may not have the time to register. The starting price will be announced from November 23 to December 2. Vinamilk's shares closed at VND138,500 (USD6.14) on November 21. Nguyen Duc Chi, chairman of SCIC, said they had received the complaints and would work to make the auction more accessible. Vinamilk is one of the biggest dairy companies in South East Asia with 13 plants and 15,000 cows. It has 243 dedicated distributors and is available at 215,000 retail stores in Vietnam. It accounted for 49% of Vietnam’s milk market in 2015 while competing with various brands such as FrieslandCampina, Abbot, MeadJohnson, Nestle and Moc Chau. Vinamilk products are also being distributed in 43 countries. nld |
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Article 7
Đồng rallies against US dollar
HÀ NỘI – After rising continuously for the past few weeks, the On Tuesday morning, the State Bank of Việt Nam brought down the reference đồng/dollar exchange rate by 4 đồng, to VNĐ21,120 per dollar. Following the central bank’s move, commercial banks also adjusted their buying and selling . Vietcombank listed the buying/selling rates at VNĐ22,480/VNĐ22,580 per dollar, down 20 đồng against Monday. The BIDV’s rates were VNĐ22,500/VNĐ22,570, down 20 đồng for buying and 30 đồng for selling against Monday. Vietinbank brought down its selling rate by 15 đồng and raised the buying rate by 15 đồng to offer the rates at VNĐ22,490 đồng/VNĐ22,590. The ACB reduced its rate to VNĐ22,480/VNĐ22,570. In the unofficial market, the đồng/dollar exchange rate was listed at VNĐ22,620 per dollar for buying and VNĐ22,650 for selling, down 50 đồng against Monday. In the global market, the dollar was on the back foot on Tuesday after a 10-day rising streak as investors consolidated their gains. The US currency has risen nearly 5 percent over the last 10 days, with investors betting on increased fiscal spending by the incoming Trump administration, which is expected to stoke inflation and propel interest rates up. The dollar’s index against a basket of six major currencies slipped to 100.87, off its 13 1/2-year high, which it touched last Friday. On Tuesday, the dollar slipped to 110.48 yen from Monday’s high of 111.36, its highest level since May 30. It last stood around 110.63 yen. – VNS |
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Article 6
Vietnam cashew exporters to add value with further processing Vietnam aims to increase export value of cashew nuts by more extensive processing instead of exporting raw or preliminarily processed products.  Vietnam has been the world’s top cashew nut exporter in the last 10 consecutive years with the export volume, accounting for 50 percent of the world’s total output. In the first 10 months of 2016, it exported 291,000 tons of cashew nuts, reaping $2.33 billion. It is expected that Vietnam’s total processed output in 2016 would reach 1.4 tons, of which 300,000 tons would be exported to earn $3 billion in turnover. If so, the export turnover from cashew nut would be higher than the rice export turnover. Six cashew growing areas in Vietnam have soil and climate suitable to cashew plants. Around 300,000 households growing cashew on 310,000 hectares consider cashew as a wild plant. They do not use chemical fertilizer and plant protection chemicals, so Vietnam’s cashew nuts are clean and have high quality. Besides the cashew variety that has existed in Vietnam fir years, three new varieties bring high yield of up to 2,500-4,000 kilos per hectares in good cultivation conditions. Vietnam can now make nearly all the machines needed to increase the automation level. It only has to import color sorter machines. The machinery and tools made by Vietnam are used by over 1,000 cashew nut processing factories and workshops in Vietnam, all of which are privately run, and also for export to Africa.
Vietnam’s cashew nut products always have the appearance and quality meeting requirements set by the choosiest markets such as the US, France, Germany and Japan. About 80 countries now import preliminarily processed cashew nuts from Vietnam. These include the US which consumes 30 percent, Europe 25 percent and China 18 percent. Considering the output of all cashew exporters and the high demand which exceeds supply, Vinacas believes the cashew nut price will fall to below $10 per kilo. Therefore, it believes that expanding the growing area, increasing output, and upgrading quality and processing products more deeply are what Vietnam needs to do. Though cashew is one of the perennial crops that bring high value, Vietnam still doesn’t have cashew farms. Cashew plants are mostly grown by households, with several hectares for every household. As the cashew nut price fell in previous years, farmers chopped down cashew trees to grow rubber and coffee. As a result, farmers now do not have enough cashew nuts to sell when the prices go up. Nam Lich, VNN |
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Article 5
Foreign banks eye HCM City’s infra projects
HCM City - Banks from South Korea and Japan have expressed interest in providing capital for infrastructure projects in HCM City. Hong Young Pyo, vice-chairman of South Korea’s Export-Import Bank (KEXIM), said his bank is interested in funding infrastructure and transport projects in Việt Nam, particularly in HCM City, at a meeting on Tuesday with Lê Văn Khoa, vice-chairman of HCM City People’s Committee. KEXIM wants to fund urban railway route No 4b-1 (to Tân Sơn Nhất International Airport) and phase two of urban railway route No 5. The pre-feasibility studies for both projects have been completed and the reports are expected to be released next year. Pyo said his bank was also interested in investing or providing capital for other infrastructure projects in HCM City, such as building and transfer of technology to operate the urban railway routes and the smart traffic operation centre. Lauding KEXIM’s interest, Khoa said HCM City wants the bank to complete legal procedures soon and disburse capital so that feasibility studies for the projects can start in the first quarter of 2017. KEXIM should also consider providing additional official development assistance (ODA) from the South Korean government’s Economic Development Cooperation Fund, Khoa said. He has also requested the bank to assist HCM City in getting preferential loans from multilateral credit organisations like the Asian Development Bank and the World Bank to implement phase two of urban railway route no. 5, after the Korea International Cooperation Agency Team completes its final report next month. In another meeting on the same day, Khoa told Senda Tetsuya, general director of Bank of Tokyo-Mitsubishi UFJ’s HCM City branch, that the city is looking for investment in infrastructure, transport, wastewater treatment and flood prevention. In response, Tetsuya said his bank is keen to provide capital for key projects. The meeting included representatives from the city’s departments and agencies and was aimed at increasing co-operation and getting updates on legal regulations and procedures for acquiring funds. Viet Nam News |
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Article 4
Chile sues Nestle, Kellogg's in anti-obesity driveSANTIAGO: Chilean authorities are suing the giant breakfast cereal-makers Nestle and Kelloggs for putting children's cartoon characters on packets of fattening food in breach of an anti-obesity law, officials said on Tuesday (Nov 22).
The government's National Consumer Service said in a statement it had filed a suit against the two companies plus Masterfoods, distributor of M&M chocolates, under June's "Food Labelling Law." It accuses the companies of breaching the law by "using children's characters on packets of various products classed as 'high in'" certain unhealthy ingredients. It said the companies had argued they had a commercial right to use the illustrated children's characters as a brand symbol. Chile passed the law on Jun 27 aiming to curb high levels of obesity. Chilean authorities estimate that one in three children under six in the South American country suffers from excessive weight. The law obliges manufacturers to add warnings to packets of food high in sugar, saturated fats and other fattening nutrients. It banned manufacturers from putting children's cartoon characters on products such as boxes of sugary breakfast cereals. It also outlawed the selling of snacks that include toys, such as "Kinder Surprise" chocolate eggs and McDonalds "Happy Meals." SERNAC director Enrnesto Munoz said the body was demanding a US$110,000 fine for each company. AFP |
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Article 3
Vietnam to apply extensive area code change next year  A VNPT employee talks on the phone at her office in Ho Chi Minh City. All but four out of 63 Vietnamese cities and provinces are slated to have their area code for landline numbers changed by February 2017, under a decision that not everyone is happy about. The new area codes will be applied for 59 cities and provinces in three phases, from February 11 to June 17, with steps taken to ensure the change will not confuse the public, the Ministry of Information and Communications announced on Tuesday. In Vietnam, a landline phone number reads as follows: (country code) (area code) (phone number). The country code is +84 but it is not necessary to dial the area code to call within a city or province. According to the ministry, the area code change is necessary as the current codes are inconsistent, with “some provinces having a three-digit area code while others have one- or two-digit codes.” “The full phone numbers therefore range from ten to 11 digits, which are confusing and hard to remember, going against international practice,” the ministry said. The ministry has therefore decided to make all area codes three-digit number, except for Hanoi and Ho Chi Minh City, to remove the confusion, adding that this type of change is common around the world. Addressing public concerns that it is difficult to get used to the new area codes, the ministry said technical measures would be enacted along with the number changes to assist the public.  The new area codes for Hanoi and Ho Chi Minh City are 24 and 28 For instance, within 30 days from the area code change, people will still able to dial the old code if they happen to forget the new one. In the 30 subsequent days, the callers will hear an announcement of the new area code when they dial the old number. Finally, two months after the area code change, people will only be able to make a call if they dial the correct area code. But there are other concerns, such as the need to reprint packaging or business cards once numbers are changed, costing quite a sum. Mostly three-digit area codes Should you still need to contact landline phone numbers on a frequent basis, you now have at least three months to familiarize yourself with the new area codes. Most of the new codes will be three-digit ones, except for Hanoi and Ho Chi Minh City. Of the 63 cities and provinces, four northern provinces are allowed to keep their area codes: Vinh Phuc (211), Phu Tho (210), Hoa Binh (218) and Ha Giang (219). Below are the area code changes in the remaining localities.    TUOI TRE NEWS |
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Article 2
Social News 24/11 Whale Worshipping Festival recognised as cultural heritage  The “Cau Ngu” (Whale Worshipping) Festival of the central province of Phu Yen has been recognised as national intangible cultural heritage. A ceremony to receive the certificate was held on November 23. The Whale Worshipping festival, held once or twice a year from the first to the eighth month of lunar calendar, plays an important role in spiritual life of coastal fishing villages in Phu Yen. The event often takes place for two days with a wide range of rituals and ceremonies. A number of fairs, art performances and folk games are also held during the festival. The event features humanity values and experiences dealing with sea and nature of fishermen, helping preserve and promote traditional customs and art forms of coastal fishing villages, said Phan Dinh Phung, Vice Chairman of the provincial People’s Committee. The south central province of Phu Yen has two coastal districts, a town and a city stretching 190km of coastline. Its fishermen is well-known for tuna fishing. UNDP-funded project promotes sustainable poverty reduction Vietnam has achieved targets on sustainable poverty reduction in disadvantaged areas thanks partly to a project funded by the UN Development Programme (UNDP) and the Ireland Embassy, heard a conference in Hanoi on November 22. The project, which was to support the implementation of the Vietnamese Government’s Resolution 80/NQ-CP on sustainable poverty reduction in 2011-2020 and the National Target Programme on Sustainable Poverty Reduction (NTP-SPR) in 2011-2015, helped Vietnam realise sustainable poverty reduction goals in mountainous, coastal and ethnic minority areas. It targeted eight provinces: Cao Bang, Ha Giang, Dien Bien, Bac Kan in the north, Thanh Hoa and Quang Ngai in the central region, Kon Tum in the Central Highlands and Tra Vinh in the Mekong Delta. Under the project, local residents received training in self-help, successful poverty reduction models were multiplied, and local officials were helped to integrate poverty reduce targets in socio-economic plans. The implementation of the Resolution 80/NQ-CP aims at accelerating poverty reduction in the poorest districts, communes and villages of the country, by setting poverty reduction target of 4 percent per annum (compared to national target of 2 percent), and by emphasizing priority to mobilize resources and support to these areas. Meanwhile, the NTP-SPR is designed and implemented effectively, contributing to rapid poverty reduction in poorest districts, communes and villages and of ethnic minority people through the application of innovative modalities and approaches. Participants said successful models and experience from the implementation of the project should be shared, adding that the Ministry of Labour, Invalids and Social Affairs and relevant ministries and sectors should receive more support in order to expand the project in other localities in the coming time. Australia launches programme to empower Vietnamese women The Australian government on November 22 launched a Gender Equality Strategy for Vietnam for the first time, outlining its plans to promote women’s empowerment in Vietnam. The strategy will be implemented by Australia’s diplomatic missions in Hanoi and HCM City between 2016 and 2020 and will cover all Australian government agencies in Vietnam. The strategy will highlight Australia’s priorities for improving the quality of life for girls and women and support the Vietnamese government in its efforts to implement its National Gender Equality Strategy 2011-2020. To reduce gender gap, the focus will be on three key areas: improving women’s participation in decision-making and leadership; promoting economic empowerment; and putting an end to violence against women. “Gender equality is an important social policy priority for Vietnam, as it is for Australia. It is also smart economics,” Australian ambassador Craig Chittick said while speaking at the launch in Hanoi. “Women bring particular perspectives, priorities and strengths from their own life experiences that contribute to the development of businesses, communities and the nation,” Chittick said. “Australia’s investment in women and girls in Vietnam will be an important contribution to Vietnam achieving its social and economic development objectives.” Promoting women’s economic empowerment, including among ethnic minorities, is one of the three pillars of Australia’s development co-operation programme with Vietnam for the period 2015-20. With more than 10 million AUD (7.4 million USD) invested in gender-related programmes over the last few years, Australia is already one of the largest contributors for advancing gender equality in Vietnam. Its newly launched Gender Equality Strategy will make its contribution more focused and purposeful. The Australian government also hosted yesterday a Women in Leadership forum, to encourage the exchange of ideas on how to integrate the focus on women’s leadership through Australia’s scholarship and human resources development programme, and to discuss how it could collaborate with local partners to promote women’s careers. Charity bazaar to take place in Hanoi The Hanoi International Women’s Club (HIWC) will organise its annual charity fair at St Paul American School – Splendora in Hanoi’s Hoai Duc district on November 27. Under a winter wonderland and Christmas theme, the 25th HIWC Bazaar will take place in conjunction with the 30th founding anniversary of the HIWC. It will feature traditional food and handicrafts from 43 embassies and international organisations. A live musical concert, with the performance of Korean opera singer Sung Min Park, pianist Trang Trinh, the Hanoi Brass Band and the African Band, among others, is expected to take visitors by storm. In 2015, the bazaar attracted 8,000 visitors and raised 107,000 USD in total. The club has so far supported 258 ear surgeries for children and 32 breathing machines for infants. Most recently, it organised an award ceremony to honour Vietnamese women with significant contribution to society. Dialogue promotes gender equality in Vietnam A dialogue on the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) between young people, the Government and partners took place in Hanoi on November 22. The event was organised by the UN Entity for Gender Equality and the Empowerment of Women (UN Women) in Vietnam. At the function, Shoko Ishikawa, Chief Representative of UN Women in Vietnam, said that the country has actively participated in the convention and well-coordinated with UN Women in promoting gender equality and protecting the rights of women and girls. She stressed that UN Women will continue to help young people organise activities to raise awareness of gender equality and protect the rights of women and girls. According to Hoang Thi Thu Huyen, deputy head of the Gender Equality Department under the Ministry of Labour, Invalids and Social Affairs (MOLISA), the Vietnamese Government is actively building an action plan to implement recommendations by the CEDAW Committee. After getting the Prime Minister approval, the MOLISA will issue documents guiding the implementation of the action plan, she added. She expressed wish to continue receiving support and experience sharing from UN Women and other international organisations in Vietnam in order to help the country better realise the convention’s contents, especially the making of a mid-term report on the implementation of the convention to the CEDAW Committee in 2017. Participating young people wished that the Government and international organisations will continue creating conditions for them to engage in implementing the convention, contributing to boosting gender equality and the rights of women and girls in Vietnam. CEDAW was adopted by the UN General Assembly on December 18, 1979 and took effect on September 3, 1981. To date, 185 countries around the world have ratified and signed the convention. It was adopted by Vietnam in February 1982 and came into force in the country in March 1982. Vietnamese students to join World Tsunami Awareness Day in Japan  Seven students of Hanoi’s Cau Giay High School will attend the High School Students’ Summit on the World Tsunami Awareness Day in Japan. A press conference announcing the event was held by Japan’s Ministry of Foreign Affairs on November 21 in Tokyo. The event will take place on November 25-26 in Kuroshio town in Kochi prefecture with the participation of 250 students from 29 countries and about 100 Japanese students. The programme aims to raise awareness of high school students – who are future leaders - on natural disasters such as earthquakes and tsunamis. It will also provide participants with knowledge on how to cope with, survive in and mitigate the effects of earthquakes and tsunamis while building international solidarity and mutual assistance in coping with nation disasters. Japan’s Kochi prefecture was selected to be the event’s venue due to its initiatives and solutions to the Nankai Trough Earthquakes off the Japan’s central coastline, which are great megathrust earthquakes that are predicted to occur in a cycle of 100 – 150 years. This is the first time the summit has been organised since the United Nations (UN) General Assembly adopted November 5 as Word Tsunami Awareness Day in December 2015. More steel ship handed over to Quang Ngai fisherman Another steel fishing vessel was handed over to a fisherman in Duc Pho district’s Pho Quang commune of central Quang Ngai province on November 22. This is the 12th steel ship of its kind built with preferential credits from the provincial Fishermen Support Fund as instructed in the Government’s Decree 67/2014/ND-CP designed to boost the development of the fishery industry, including a programme on building high-capacity, steel boats for deep sea fishing. The vessel was built by Nha Trang Shipbuilding Company at a total cost of 12 billion VND (528,000 USD). It has a capacity of 811CV and measures 26m long, 7m wide and 3.4m high. The ship will be run by a crew of 10 trained members. The owner of the vessel, Huynh Thach, 44, said the vessel will help him fish off-shore effectively and safely. Also on this occasion, the Fund provided an aid package worth 269 million VND (11,836 USD) to support local needy fishermen. Vietnam, Cambodia enhance coordination in drug fight Representatives from Border Liaison Offices (BLO) of Vietnam and Cambodia gathered at a conference in Ho Chi Minh City on November 22 to discuss measures promoting cooperation in combating cross-border drug crimes in the coming time. The conference, the third of its kind, aimed to review cooperation among the two countries’ BLOs in the work. Addressing the event, Lt. Gen. Dong Dai Loc, Deputy General Director of General Directorate of Vietnam Police under the Ministry of Public Security appreciated close coordination between the two countries’ relevant agencies in the fight against drugs in recent times. The two countries will intensify campaigns to combat drug crimes along the two countries’ border line, while promoting connection to break down drug trafficking rings operating between Vietnam and Cambodia, he stressed. Lt. Gen. Mok Chito, Deputy Chief of the General Department of the National Police of Cambodia said Cambodia’s drug fighting forces will enhance coordination with Vietnam through BLOs, thus supporting task forces in the work. According to the General Directorate of Vietnam Police under the Ministry of Public Security, drug trafficking along the Vietnam-Cambodia border line still remains complicated as the drug is transported to HCM City through border gates or by waterway. Notably, a number of cocaine and methamphetamine transportation cases by postal service have been discovered. Through sharing information between BLOs, police and border guard forces and customs of Vietnam’s southern Tay Ninh province and Cambodia’s authoritised agencies jointly worked to detect three cases of drug transport, seizing six packages of heroin, one kg of methamphetamine , 2,500 synthetic drug pills and 250 gram of cocaine. Agency wants cashless toll payments The Directorate for Roads of Vietnam (DRVN) has asked the Ministry of Transport for permission to test cashless toll collection on one-stop toll highways. In a document sent to the ministry, the DRVN said that there were more than 100 fee collection stations in the country. Of which, 86 were under the ministry’s management and 15 were under local authorities’ management. Currently, the ministry has applied electronic fee collections for 37 tolls along the National Highway No1A and Ho Chi Minh Highway. An electronic toll collection station determined whether vehicles are enrolled in the programme, alerted toll collectors about those that were not, and electronically debits the accounts of registered car owners without requiring them to stop. Vehicles would be equipped with a tag on the windshield with information to be read by the station’s sensor. Those without the tag would have to stop and pay manually. The ministry plans to replace toll booth operators with electronic collection systems. The move aims to reduce traffic jams and delays at toll gates and cut costs. According to the ministry, in many countries, electronic fee tolls and manual fee tolls are used on the same highway. It said vehicles would pay via prepaid Card of State-owned VietinBank. VietinBank would be assigned to install the pre-paid card system as a trial on one-stop toll highways. The model will be implemented from now on until the end of this year. National Highway No1A connects Lang Son and Ca Mau, running more than 2,300km through 32 cities and provinces, while the Ho Chi Minh Highway runs along the west of the country, connecting Cao Bang and Ca Mau via the Central Highlands with a total length of 3,167km. Phu Tho hosts ceremony honouring outstanding prestigious people A ceremony will be held in Viet Tri city, the northern midland province of Phu Tho on December 4 to honour outstanding prestigious people in the northwestern region, said the organising board at a press conference on November 22 in Hanoi. The event will see 547 people representing 22,529 highly accredited people from 14 regional provinces. They are in different ages, from different sectors, ethnic groups and are working in various areas of the social life from public servants to farmers and workers. They have made excellent achievements in implementing policies of the Party and State as well as in socio-economic development, while actively engaging in the building of the Party and government as well as organisations, which is recognised by their family and the community. According to deputy head of the Steering Committee for Northwestern Region Hoang Thi Hanh, the event aims to affirm the position and role of the region in the country’s strategy, while creating a chance for outstanding and prestigious people to meet and share information. It also contributes to popularise the Party and State’s policies to promote the role of prestigious people in national construction and defence, creating favourable conditions for them to contribute and participate in socio-economic development activities, ensuring defence and security in their locality. Special exhibition on Con Moong cave, nearby relic sites  The US$450-million system is much faster than the Asia America Gateway, which the country has relied on over the past years. Internet users in Vietnam should expect faster speed soon as a new undersea cable connecting the country with neighbors in the Asia-Pacific region has been completed. NEC, a Japanese IT corporation, last week announced that it has finished construction of the Asia Pacific Gateway Submarine Cable linking Japan with Hong Kong, Mainland China, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam. The cable, with a total length of around 10,900 kilometers, will go through Vietnam’s central city of Da Nang. It features 100 Gigabit per second (Gbps) optical transmission capabilities that deliver a capacity of more than 54 Tbps, which is much faster than the 2.88 Tbps speed of the Asia America Gateway (AAG), the notorious rupture-prone system that connects Vietnam and the US. slow no more? new undersea cable ready to boost vietnam's internet speed hinh 0 Vietnam’s two biggest telecom companies Viettel and the Vietnam Post and Telecommunications Group are among the 13 investors of the new cable. The military-run Viettel, which funded more than half of the $450-million cable, has also invested in another 25,000-kilometer cable connecting Vietnam with Europe. The Asia Africa Euro 1 is scheduled to go into operation this year too. Vietnamese service providers have been trying to ease their reliance on the AAG. The 20,000-kilometer system, installed in 2009, has broken or been shut down for maintenance many times since 2011. In 2015, the cable ruptured three times while in 2014, it went down twice. This year local users also bemoaned slow connection to international services when the cable broke down in August and then went through a maintenance period in September. Nearly 49 million people, more than half of Vietnam’s population of 90 million, are online. Cruise ship SuperStar Virgo docks at Phu My Port Saigontourist Travel Service on November 22 received more than 1,000 foreign tourists on the SuperStar Virgo cruise ship that docked at Phu My port, Ba Ria-Vung Tau province. Accordingly, the travellers who come from China, Austria, Australia, and Canada moved to Ho Chi Minh City on November 23 to tour historical sites, go shopping in Ben Thanh market, enjoy a water puppetry show in the city centre, and walk around Nguyen Hue pedestrian street. In the afternoon, SuperStar Virgo left Phu My Port to dock at Cam Ranh International Port. In Nha Trang, the visitors visited the Po Nagar Cham Towers, discovered Vinpearl Land, dove in Hon Tam and Hon Mun, tasted delicious food and explored traditional handicraft villages. The cruise ship left Cam Ranh Port at 10p.m on the same day for other Asian countries. In November alone, Saigontourist received 8,000 passengers on Superstar Virgo. Saigontourist said Superstar Virgo holds the mantle for largest passenger cruise ship, having replaced Royal Caribbean International’s Legends of the Seas for the top spot. It is 4.34 metres longer and weighs 5866 tons more than the Legend with two extra decks and carries more than 700 extra passengers (2800) at a maximum capacity almost doubling the crew (1300). VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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BUSINESS IN BRIEF 24/11 Vietnam Airlines to operate 13% more flights for Tet Vietnam Airlines will add nearly 900 flights on 10 domestic routes between January 15 and February 13 next year to meet the demand during Tet (Lunar New Year). They will offer 185,000 additional seats, taking the total number of seats on all domestic flights during the holidays to more than 1.6 million, 13 per cent higher than on normal days and 46 per cent higher than last year. The 10 routes are between cities such as Ha Noi, HCM City, Da Nang, Nha Trang, Hue, and Phu Quoc, with the Ha Noi-HCM City sector having the highest number of additional flights – 327. It will be followed by the HCM City-Da Nang and HCM City-Hue sectors with 190 and 136. More information is available at www.vietnamairlines.com and the airlines’ offices across the country. VN expects high fruit exports to difficult markets  Viet Nam exported nearly 10,000 tonnes of fresh fruit to difficult markets such as the United States, Canada, South Korea and Japan in the first 10 months of this year. This export volume doubled figures from the whole of last year. According to Head of the Ministry of Agriculture and Rural Development’s Plant Protection Department Hoang Trung, some 5,100 tonnes of dragon fruit and 1,550 tonnes of mango were shipped to these countries. The United States led the import of Vietnamese fruit, with 2,600 tonnes of dragon fruit and 1,200 tonnes of mango, followed by Japan, Canada and South Korea. The country exported nearly 2.1 million tonnes of fruit and vegetables, making a turnover of some US$2 billion during the period. Meanwhile, it imported nearly 420,000 tonnes of fresh fruit. Trung said his department was conducting an experimental project on exterminating fly disease on red dragon fruit, following the requirements of Japan. Japan will officially open its doors to the Vietnamese fruit by early 2017. Viet Nam expects to increase its exports to Australia and Taiwan in the future, after the two markets begin allowing businesses to import Vietnamese fresh mango and dragon fruit, respectively, this year. Việt Nam, Australia to intensify cooperation in agriculture Việt Nam and Australia agreed to improve cooperation in the agricultural sector during their first high-level dialogue on agricultural policies in Hà Nội on Tuesday. Lê Quốc Doanh, deputy minister of agriculture and rural development, said agriculture plays an important role in Việt Nam’s socio-economic development, contributing to about 20 per cent of the country’s Gross Domestic Product (GDP). In 2015, Việt Nam shipped agricultural products worth US$500 million to Australia and imported agricultural products of the same value. However, both nations have not fully exploited their own potential, Doanh said. Việt Nam wants Australia to facilitate the export of products from Vietnamese enterprises to Australia as well as continue sharing its experience in policymaking to promote bilateral trade in agricultural products, the deputy minister said. Doanh said Australia is an important partner in agricultural development. The two countries have co-operated to implement programmes such as clean water in rural areas and response to climate change, especially in vulnerable areas such as the Mekong Delta and in many coastal regions. The dialogue is an opportunity for both countries to settle policy obstacles, improve market access for each other’s agricultural products and discuss ways to boost product quality, said David Parker, deputy secretary of Australia’s department of agriculture and water resources. Australia and Việt Nam have collaborated to improve agricultural policies and livelihood and for human resource development in the agricultural sector and in rural areas, he said. Việt Nam exported $17 million worth of fruits and vegetables to Australia in the first nine months of 2016 and imported $35 million worth of the same from Australia. The country is Australia’s 15th trading partner, while Australia is Việt Nam’s 8th. Bilateral trade between the two countries has grown rapidly, from $32.3 million in 1990 to $5.1 billion in 2013 and $6 billion in 2014. Shinsei Bank to acquire 49% of MCredit The Hanoi-based Military Bank (MBBank) signed a deal on November 21 with a Japanese bank to sell a 49 per cent stake in the MCredit Finance Company (MCredit). MB Bank will sell the 49 per cent to Shinsei Bank, marking the latter’s entry into Vietnam’s unsecured loan market. The two parties expect to complete the deal in 2017 by establishing a joint venture, the MB Shinsei Consumer Finance Company Limited. The deal is still subject to regulatory approval at this time. Speaking at the signing ceremony, Mr. Yukio Nakamura, Vice Chairman of Shinsei Bank, said he believes the joint cooperation between the two will produce new opportunities and value as well as improve MCredit’s competitiveness in the market. “We appreciate the development potential of the consumer finance market in Vietnam,” he said. “This deal is of major importance to Shinsei Bank in foreign markets.” Mr. Le Huu Duc, MB Bank Chairman, said the joint venture will be a key factor in MCredit’s successful development, based on Shinsei’s modern technologies and diverse experience. “The project will not only benefit MB and Shinsei Bank but also contribute to building a healthy credit system in Vietnam,” he said. “It will also enhance economic cooperation between Vietnam and Japan.” MCredit, set up in March, was capitalized at about $20.7 million as at June. It will start in the unsecured loan business in December. It is currently wholly owned by MBBank, after being restructured from the Song Da Finance Company. Shinsei Bank operates in the banking, investment and insurance sectors. It has more than 50 years of experience in consumer finance through its subsidiary, Shinsei Financial, which occupies third place in the Japanese market in terms of consumer finance and ranks among the best companies for technological solutions in the sector. MB Bank is a diversified financial group with a network of over 250 transaction points in Vietnam and two foreign branches, in Laos and Cambodia, as well as subsidiaries in securities, insurance and fund and asset management. According to local market researchers Stoxplus, following a robust surge in 2014 the consumer finance market in Vietnam witnessed its fastest growth in 2015, of 44.1 per cent compared to 18 per cent in 2014. The outstanding loan balance soared from $10.5 billion in December 2014 to $15.12 billion at the end of 2015. Thuduc House to increase stake in Fideco The Thuduc Housing Development Corporation (Thuduc House, code: TDH) has agreed to finalize the list of shareholders to obtain approval for raising its ownership in the Foreign Trade Development and Investment Corporation of Ho Chi Minh City (Fideco, code: FDC) to 65 per cent without a public offering. The process of obtaining written opinions from shareholders is expected to be conducted in December. Thuduc House plans to buy more than 18.2 million FDC shares, increasing its holding to 25 million shares, or a 65 per cent stake. “The purpose of this move is to expand the company’s land reserves,” a representative from the Public Relations Department at Thuduc House confirmed with VET. The form of purchase is expected to be made by agreement between the two parties and will take six to nine months. Apart from 29 ha in Can Gio district, Ho Chi Minh City, FDC also owns more than 2,000 sq m in District 1’s Phung Khac Khoan Street, which are considered to be of high value. Thuduc House has planned to buy more FDC shares since the beginning of this year. After a range of transactions conducted before March, it announced it owned nearly 6.9 million FDC shares, corresponding to 24.89 per cent of charter capital. FDC is expected to earn a profit of about $1.33 million from issuing swap shares with the Dat Phuc Construction Design Company Limited and the Thien Y Import Export Trading Packaging Company Limited. Thuduc House is drawing up a specific business plan for key projects. This year it will focus on an open sale of S-Home apartments in the Phuoc Long project (168 apartments), the Binh Chieu project Phase 2 (145 plots of housing land) and the TDH-Tocontap project (40 plots of housing land). Other projects will be sold in 2017, including Binh Chieu Lot I (405 apartments), Binh Chieu Lot H (218 apartments), TDH-Tocontap (223 apartments), and TDH - Phuc Thinh Duc (935 apartments). On that basis, Thuduc House sets revenue plans for the 2016-2018 period that correspond to the time of deployment and delivery of each project. Revenues from condominiums are to be about $12 million, $34 million and $44 million in the three years while sales of housing land are expected to reach $16 million in 2016 and nearly $2 million in 2017. It estimates total revenue for 2016 to be more than $28 million, $36 million in 2017, and $44 million by 2018. Thuduc House so far has implemented more than 40 projects around the country, developing urban towns, row houses, and apartment blocks for both low and high-income earners. The company has also developed commercial centers, wholesale markets, hotels, resorts, and office buildings and launched affordable apartment projects in District 9 and Thu Duc district in Ho Chi Minh City. Japanese fashion brands eye Vietnam market A delegation of nine Japanese firms which own 14 fashion brands have come to Vietnam to sound out opportunities in the market which has seen modest development of Japanese fashion products. At a program to link Japanese and Vietnamese enterprises for franchise agreements in HCMC on November 21, the visiting Japanese fashion firms said they are looking at Vietnamese companies that are interested in franchise deals and apparel business. Organized by the Japan External Trade Organization (JETRO), the program prepares the first steps for Japanese fashion firms to enter the domestic market. Akira Kaise, CEO of I Am Co. Ltd, said the company’s fashion brand Name has been available in many markets including Hong Kong, China, South Korea, Taiwan, Spain, the UK, and the Netherlands, and he now comes to Vietnam for new business opportunities. “Vietnam is becoming a potential market for I Am given the country’s young population, growing economy and higher personal income,” Kaise said. Aside from exploiting the market, the company wants to have its products processed in Vietnam, or make investments in the market to take advantage of low-cost and skilled labor. JETRO said enterprises picked for the event are owners of popular fashion brands with diverse products for men and women. Most of them sell products at medium prices, which is suitable for local consumers. Although garment and textile is the strength of Vietnam, JETRO hopes Japanese products will have a position in the domestic market thanks to their unique designs and high quality. However, several people are of the opinion that Japanese fashion products are expensive given the current incomes of Vietnamese people while their designs are not popular in the country. Shipping lines told to make surcharges public The Government has issued a decree specifying that all shipping lines are required to make public all transport charges and extra fees to goods owners. The decree, effective from July 1, 2017, forces shipping firms whether owning ships or not to announce a proposed list of shipping surcharges on their websites, especially surcharges appropriate to transport routes and types of cargo, and post up the price lists at the companies’ headquarters or offices as well. If shipping firms want to raise prices of services, they will have to wait 15 days from the date of the adjusted prices and fees being announced. The posted information must also be reported to the Vietnam Maritime Administration, and shipping firms must update data upon a written request from relevant authorities. The Ministry of Transport along with the Ministry of Finance will be responsible for checking the execution of enterprises. Enterprises using the service can ask for compensation if such services fail to meet the quality standards and fixed prices that shipping lines have announced before. Under such circumstances, the provincial government will be responsible for handling disputes. Earlier, some import-export companies complained they had to pay many kinds of irrational fees for shipping lines, including container service and cargo congestion fees. Therefore, the decree is aimed to help these businesses avoid those fees. Dung Quat Oil Refinery beats revenue target Dung Quat Oil Refinery in the central province of Quang Ngai is expected to turn out one million more tons of oil products in the rest of the year, which will help the company beat its 2016 revenue target by VND12 trillion, the news site Vnexpress reports. Binh Son Refining and Petrochemical Company (BRS), the operator of the plant, released the information at a review meeting on production and business activities in the 9-month period. The refinery will produce one million tons of fuels between now and the year’s end, taking the total to 6.91 million tons in 2016, a year-on-year increase of 100,000 tons. Revenue from one million tons of products will increase by VND12 trillion, and contribute an extra VND2 trillion, or nearly US$90 million, to the State budget. A representative of BRS said the company has reached its production target earlier, thanks to the safe and stable operation progress, with an optimal capacity of 105-107% compared to the designed rate. In addition, weather has been relatively favorable, making crude oil import and product trade convenient. The early completion of the target has helped offset a production halt due to its routine maintenance in mid-2017, he said. The oil refinery, covering an area of 810 hectares, currently has a maximum capacity of 6.7 million tons per year, or an equivalent of 148,000 barrels of oil a day. The plant is invested with US$3 billion. It has earned VND785 trillion in revenue after six years of operation and paid around VND133 trillion in taxes to the State. It has total accumulated output of around 43 million tons, meeting 40% of fuel consumption demand nationwide. BRS is focusing on upgrading and expanding the plant to increase its processing capacity up to 8.5 million tons from the current 6.5 million tons, which is expected for completion in 2022. 520 int’l firms to join 14th Vietnam Expo 2016 The 14th Vietnam International Trade Fair- Vietnam Expo 2016 is scheduled to open at Saigon Exhibition & Convention Center (SECC) in Ho Chi Minh City from November 30 to December 3. The organization board said that this year’s fair attracts around 520 Vietnamese and international exhibitors from 20 countries and territories with their 600 booths. The fair is chance for visitors able to meet skillful craftsmen of the traditional crafts such as Bat Trang Pottery, Van Phuc Silk, Dong Ky Wood Carving and Ngu Xa Bronze Casting. This is the first time that the Department of Trade and Industry of Hanoi introduce traditional pavilions under a slogan of “Preserving and developing Hanoi’s traditional crafts". Two seminars about role of new technologies for small- medium enterprises will be held by Ministry of Science and Technology and Indonesia Embassy. The 2015 Vietnam Expo attracted 15, 000 domestic and foreign participants. More than 500 contracts and memorandum of understandings about cooperation were also signed. 80% of Vietnamese industrial zones violate environmental regulations Eighty in every 100 industrial zones in Vietnam are violating the country’s environmental regulations, an expert said at a recent economic workshop in Hanoi. The figure was shared by Assoc. Prof. Dr. Dinh Duc Truong from the Hanoi-based National Economics University during the international workshop on ‘Vietnam’s Economy in the Medium Term: Prospects and Environmental Effects.’ The workshop was co-organized by the National Center for Socio-Economic Information and Forecast and the Republic of Ireland’s government agency for international development, Irish Aid. Dr. Truong cited statistics from the General Statistics Office of Vietnam for his findings. According to Truong, foreign direct investment (FDI) businesses account for up to 60% of the firms based in Vietnam that violate standards on waste discharge. Many of these businesses bring outdated technology, banned in developed countries, into Vietnam in order to lengthen their life cycle and make use of low environmental investment requirements and taxes. “[Vietnam’s] low environmental standards and lack of a monitoring system allow FDI businesses to save between ten and 50% of investment costs compared to those of their parent companies,” Truong said. The associate professor stressed in his report ‘Vietnam – Pollution Heaven for Foreign Businesses’ that Vietnam was already facing grave environmental risks despite having yet to become a fully industrial nation. The country spends US$780 million every year on healthcare services related to environmental pollution, Truong said, citing a report by the Vietnamese Ministry of Natural Resources and Environment. Pollution damage accounts for an estimated five percent of the country’s annual gross domestic product (GDP), while the respective figure for China is 10%, Truong said, citing World Bank (WB) studies at the workshop. He warned that Vietnam could well surpass its northern neighbor in this regard should its pollution continue at the current rate. Dr. Truong elaborated on his forecast in an interview with Tuoi Tre (Youth) newspaper on November 20, saying that countries with serious pollution like China had adopted the green GDP, which factors the environmental consequences of economic growth into a country's conventional GDP. Vietnam, Truong said, was still calculating its environmental damage as a stand-alone factor. Steel tops among export products to Cambodia Vietnam exports 28 types of products to Cambodia to get nearly US$1.8 billion in the first ten months of this year, down 11.53% against the corresponding period last year, according to preliminary statistics from the General Department of Vietnam Customs. Steel topped among export items with US$245.7 million (making up 17% of total revenue but down 28.47%), trailed by petroleum (down 26.47% to US$232.2 million) and garment (up 13.29% to US$196.9 million). In general, most of products exported to Cambodia saw a decline in volume and value in the reviewed period, of which fruit and vegetables suffered the deepest decrease of 70.69% to US$1.8 million. Only a few export products enjoyed a growth, such as telephones and components (up 1169.76% to just US$1.82 million) to US$1.82 million). Export products to Cambodia included steel (making up 17%), petroleum (16%), garment (13%), footwear and garment materials (9%), animal feed and materials (5%) and others (40%). Japan – third largest import market of Vietnam Japan is Vietnam’s third largest import market, trailed after China and the Republic of Korea, according to the General Department of Vietnam Customs. Vietnam imports from Japan inched up 1.56% to more than US$12.2 billion in ten months leading up to November this year. Machines, equipment and tools ranked first among import products with US$3.35 billion (down 13.4%), followed by computers, electronics and components (US$2.26 billion, up 18.9%) and steel (US$989.6, down 6.7%). Import products that saw a robust growth in the reviewed period included milk and dairy products (up 99%), animal feed and materials (up 91.6%), cameras, film cameras and components (up 153.2%) while those with a sharp decline were petroleum (down 98%), fertilizer (down 52%) and telephones (down 44%). A seminar was held in Ho Chi Minh city on November 17 by the Japan External Trade Organization (JETRO) within the framework of a program to promote connectivity between Vietnamese and Japanese businesses. It was participated by 37 Japanese businesses which are interested in exporting products to Vietnam. Michiyo Uehara, representing JETRO said most of the participating businesses are small and medium-sized. They introduced Vietnamese distributors to their household, ceramic, kid and healthcare products. It was the third seminar of this kind ever held by JETRO with the aim of connecting Japanese businesses with Vietnamese distributors to boost exports of Japanese products to Vietnam. Saigon expected to drink 40 million liters of beer during holiday The demand for beverages in Ho Chi Minh City is expected to increase by 30% during the upcoming Lunar New Year Tet holiday, the city’s trade department said. To be specific, consumption of beer is projected to hit 40 million liters while soft drink sales may reach 45 million liters. Local companies have been ramping up production to get ready for the country's biggest shopping season. It's estimated that businesses in the city will allocate about VND17 trillion (US$755 million) on producing and stocking goods for the holiday, which will begin on January 28. The volume of goods is expected to go up by 25%-45% against last Tet. Tran Thai Ha, of the market research firm Nielsen Vietnam, said the most popular products during Tet are beer, soft drinks, coffee and confections but demand varies from region to region. Last Tet, sales of beer and beverages increased significantly in the south, but in the north, they slightly fell while demand for confections soared, Ha said. She added that more and more consumers are looking for healthy food choices so suppliers can boost sales of these products during peak shopping season. Wharf closure leaves Saigon river tours 'grounded' A small industry enabling tourists to explore Ho Chi Minh City via its 2,000km worth of waterways has been 'grounded' after emerging in 2011. Local tour organizers and travel firms had been developing river tour packages to attract international tourists, but have had to run away from their fledgling businesses after the main wharf in the city was asked to close. River tour operators have been forced to sell off their fleets of boats, but still hold out hope that a new wharf will be built to allow them to resume their service, which proved to be attractive to foreign holidaymakers, particularly during their short heyday five years ago. In February 2011, a new tourism package called 'Sunset River Tour' was launched and quickly appealed to international visitors to Ho Chi Minh City. Tourists would board boats on the Saigon River in the late afternoon to admire the sunset while floating on the city’s main waterway. At the time, photos and videos capturing the breathtaking scene of the sun reflected off the Saigon River flooded social media, as tourists were impressed by the 'Sunset River Tour.' “There were times when a boat offered as many as ten journeys a day, with all foreign passengers,” one man who used to work as a crew member for a river tour company recalled. The closure of the Bach Dang Wharf, near the city’s downtown area in March 2015 was a real nightmare for travel firms, who did not know what to do with their fleets of boats. “The ship operators were scratching their heads to find a solution and maintain operations,” Nguyen Xuan Truong, who once worked in the river tour business, told Tuoi Tre (Youth) newspaper. “Some companies eventually had to shut down their service, meaning many crew members switched to working on cargo ships.” With the only place for tourist boats to dock and pick up passengers ‘killed off,’ travel firms have had no other choice but to sell their vessels. Leading tour organizer Saigontourist invested heavily in developing a fleet of tourist boats, each with 30 to 100 seats, and 16 speedboats to embrace the river tour trend back in 2011. The star of the Saigontourist fleet was a 600-seat restaurant boat. However, the company has had to liquidate two of its major boats, and the others “now dock at [its] own wharf in the Binh Quoi 2 ecotourism area [in Binh Thanh District], waiting for sale,” admitted Saigontourist river tour manager Nguyen Thanh Lam. Lam, who has more than 15 years of experience working in the river tour sector, said the demise of the Bach Dang Wharf was the main killer of the river tour industry in Ho Chi Minh City. “Some travel firms have their own wharfs, but most of them are located away from the city’s center and are incapable of docking bigger ships,” Lam told Tuoi Tre. The Saigontourist representative said the number of river tour customers is now 40% to 60% lower than the pre-2015 period. Besides Saigontourist, other companies must dock their ships across makeshift decks along the Saigon River, which snakes through District 1, 2 and Binh Thanh and Nha Be Districts. Lam suggested that a new wharf be set up near the city center in District 1 to facilitate both local and international tourists who wish to explore the city on the river. Bui Ta Hoang Vu, director of the Ho Chi Minh City tourism department, admitted that the decision to close the Bach Dang Wharf without a replacement facility has impacted local travel firms. Vu said the municipal administration plans to focus on developing river tours and will consider building a new wharf in the downtown area to serve tourists. Many foreign tourists have been discouraged from taking river tours after learning that they had to travel to another district be able to board the boat. Luke Smith, one of the two Canadians Tuoi Tre met near the old Bach Dang Wharf last week, said they gave up their plan to go on a river tour after being told they had to board the ship at Tan Cang in Binh Thanh District. Hardware expo ready to unlock its doors in HCM City With the aim of bringing more opportunities for Vietnamese to approach advanced and hand products in both manufacturing and daily life – Vietnam Hardware & Hand Tools Expo 2016 (November 30-December 3) – is ready to open its doors. Speaking at a press conference on November 22 in Hanoi, the organizers said the Expo at the Saigon Exhibition and Convention Centre promises attendees a truly international showcase with a huge selection of the latest products, services and technologies from more than 152 exhibitors from 17 countries. The exhibition focuses on four main tool segments: tools; do it yourself and building hardware; fasteners; and securities, locks and fittings. In addition, there are special seminars on opportunities for resellers to promote and develop products. The event not only creates opportunity for collaboration and exchange between buyers and sellers, but also give them direct access to advanced technologies and products, said the organizers. They said, the first of its kind expo in Vietnam is expected to attract more than 5,000 specialized visitors from across the country and representatives from major brands including Bosch, Elora, Onishi, Bawa Tools, Kynko, Hazet, and Matador. Vietnam: Fastest-growing ASEAN trade partner of Canada Last year commercial goods trade of Vietnam with Canada reached US$4.8 billion making the Southeast Asian nation the largest trading partner of the North American country in ASEAN. Vietnam exports to Canada for 2015 surpassed US$4.1 billion, while imports from the north American country tallied in at roughly US$700 million, according to Canadian trade statistics. Official Canadian statistics for the first three quarters of 2016 showed that the robust trade carried over into 2016 with total exports of Vietnam tallying in at US$2.757 billion and imports US$350 million for total commercial trade of US$3.107 billion. The leading exports of Vietnam to Canada were clothing and textiles, footwear, seafood, furniture, spices, cashew nuts, and sporting equipment. Vietnam imports from Canada consisted primarily of wheat, seafood, vegetables and fertilizers along with high-end Canadian clothing, leather and fur products. Hoang Anh Dung, trade counsellor to Canada, crunched the numbers and calculated that Vietnam obtained export growth of 14.8% to Canada while other ASEAN countries experienced negative export growth. Per Mr Dung’s computations – Thailand exports dipped 2.6%, Indonesia exports were down 9.3%, while those of Malaysia, Singapore and the Philippines fell 7.7%, 6.1%, 11.1%, respectively. Mitsubishi Motors Viet Nam debuts showroom in Da Nang Mitsubishi Motors Viet Nam has inaugurated a new showroom in the central city of Da Nang, its seventh in the central region and 30th in Viet Nam. The nearly VND20 billion (nearly US$900,000) facility includes a showroom, service centre and accessories and spare parts sale centre. According to its latest report, Mitsubishi Motors Viet Nam, 82 per cent of which is owned by Mitsubishi Motors, sold 4,600 cars in the first 10 months of 2016. Its central Viet Nam showrooms are located in Thanh Hoa, Vinh, Nghe An, Gia Lai, Dak Lak, Quang Ngai and two in Da Nang. In 2015, Da Nang hosted the fourth stage and fifth starting point of the 2,200km Viet Nam-trans Mitsubishi Caravan. Last year, Hino Motors Viet Nam also debuted a showroom in Da Nang. Japan is the biggest investor in Da Nang, with 112 projects worth $397 million – 10 per cent of the foreign direct investment (FDI) projects in the city, creating 32,000 jobs. The city plans to build an industrial park on 134ha for medium-sized and small businesses from Japan. A direct flight between Osaka and Da Nang will be launched in 2017. The seven direct flights per week to Tokyo have helped promote tourism and investment since their launch in 2014. FPT profits rise 7% The FPT group, Viet Nam’s leading software company, has recorded an after-tax profit (ATP) of VND1.99 trillion, a 7 per cent year-on-year (YoY) increase. The IT giant’s consolidated revenue is VND31.8 trillion, a 2 per cent year-over-year (YoY) decrease, and its profit-before tax (PBT) has increased by 4 per cent YoY to VND2.3 trillion. Its ATP, to be disbursed to the parent company’s shareholders, is VND1.53 trillion, a 6 per cent YoY increase. The earning per share (EPS) was VND3,334 after 10 months, up 5 per cent as compared to the first 10 months of 2015. With 31 per cent contribution to the consolidated PBT, ‘going global’ continued to be a key strategy for FPT. After 10 months, FPT’s overseas markets recorded a revenue of VND4.72 trillion, a healthy increase of 28 per cent, and PBT of VND713 billion, up 39 per cent year on year. The retail segment also continued be a bright spot in the 10-month period, with its YoY revenue up 32 per cent and PBT up 42 per cent YoY. Apart from decent business performance in the first 10 months of 2016, the company has also strengthened its position and been recognised by the business community. FPT is the first enterprise in Southeast Asia to be recognised by GE as its partner in the Industrial Internet of Things (IIoT). The software multinational is also the only Vietnamese enterprise that received the title Digital Transformer of The Year, and it has featured among the Top 10 Companies for Sustainability Development in 2016. Dai-ichi Life, Lien Viet Post Bank join hands Dai-ichi Life Viet Nam and Lien Viet Post Joint Stock Commercial Bank have committed to building and promoting strategic co-operation for the sustainable development of the banking and insurance sector. The commitment was made under a business contract signed between the two sides on Monday. Specifically, the insurance company and the bank will help introduce and supply their services to each other’s customers over a period of five years, starting in November. Tran Dinh Quan, Director General of Dai-ichi Life Viet Nam, said the co-operation agreement with LienVietPostBank was a step towards realising its distribution channel diversification strategy. He said he hoped that with the co-operation, more and more Vietnamese customers would have the chance to access the company’s life insurance services. LienVietPostBank Director General Pham Doan Son said the bank’s revenue and operational efficiency were expected to be improved, thanks to the signing. Insolvency reform a priority: Chief Justice Viet Nam will pay special attention to reforming the nation’s insolvency regime as part of efforts to create a favourable business and investment climate, Supreme People’s Court Chief Justice Nguyen Hoa Binh said yesterday. Addressing the 10th Forum for Asian Insolvency Reform (FAIR) which opened in Ha Noi, Binh said a good insolvency regime was important at the time of rapid global integration, when many Vietnamese businesses were extending their global reach and a growing number of foreign firms were investing in the country. “Viet Nam is taking appropriate steps to improve the business climate and attract investment for socio-economic development,” Binh said. “Reforming the insolvency regime towards making it more efficient and convenient is an important part of this effort.” Binh said Viet Nam updated its law on insolvency in 2014 and hoped to share achievements from this effort at the forum, while learning from international experiences to make further improvements. During the past three decades, Viet Nam has updated its insolvency regime three times. The aim is to accord sufficient protection to creditors, debtors as well as workers, and ensuring social stability, Binh said, adding that insolvency regime was a useful tool for eliminating weak and inefficient companies and promoting economic restructuring. New amendments to the Law on Insolvency will further clarify conditions for insolvency, simplify procedures and facilitate restructuring, he added. The two-day forum attracted hundreds of participants from 18 countries and territories and international organisations, becoming a platform for policy makers, scholars, legislative and juridical organisations, ministries and businesses to share experiences and promote insolvency reform ins member countries. The Forum for Asian Insolvency Reform (FAIR) is an organisation committed to bringing stakeholders together to discuss insolvency reform in Asia, according to the World Bank website. Vietjet launches year-end sales with promotional tickets Vietjet offers 300,000 promotional tickets priced at zero dollars from November 23 -25 in a move to celebrate the coming travel and shopping season in Southeast Asia. The promotion is applied for all routes between Vietnam and Southeast Asian countries including Singapore, Thailand, Malaysia and Myanmar and travel from December 1, 2016 to December 31, 2017, excluding national holidays. Thanks to diverse cultures, unique sceneries and impressive cuisines, Southeast Asian destinations are attracted to global travelers. Also the area is famous for being tourism-friendly at the affordable costs and abundant air fare promotions, which is always the driving force to travelers and shopaholics, the airline said. With its high-quality services, special low-fare tickets and diverse ticket classes, Vietjet offers its passengers enjoyable flights with dynamic and friendly flight crew, comfy seats, amazing hot meals and special surprises from the airline’s inflight activities. Vietjet Air now owns more than 40 A320 and A321 planes which make some 350 flights every day. Its flight network has covered almost all destinations in Vietnam and many others in Singapore, the Republic of Korea, China, Thailand, Myanmar and Malaysia. It has provided services for more than 30 million passengers so far. Quan Ngang IP to be widen to over 321 ha The Prime Minister has agreed on a plan to expand Quan Ngang Industrial Park in the central province of Quang Tri, raising the total area of the park to 321.74 ha from the current 205 ha. The third phase of the park will also be included in the national industrial park development plan to 2020. The PM assigned the provincial People’s Committee to direct relevant agencies and investors to outline a detailed plan for the project. It is also responsible for guiding investors to build and submit environmental assessment reports for approval, and to implement procedures related to the use of water resources and cultivation land, and wastewater treatment in accordance with laws on environmental protection. Relevant units will coordinate with investors to work on issues related to employees in the park, including arranging a land fund for building houses for workers. The industrial park, located in Gio Quang commune, Gio Linh district, is 15 km from Cua Viet Port, 45 km from My Thuy Port of Quang Tri, and 182 km from Da Nang Port in central Da Nang city. There are 14 projects registered for investment in the park with total invested capital of over 3 trillion VND (132 million USD). Eight of the projects are operational, with the remainder are in the process of construction. The expansion of the park is expected to promote industrial development, boosting the locality’s growth and improving income for employees. HCM City, European businesses enhance cooperation Chairman of the Ho Chi Minh City People's Committee Nguyen Thanh Phong hosted Michael Behrens, new Chairman of the European Chamber of Commerce (Eurocham) on November 21 to discuss orientations for cooperation in construction and sustainable development. Phong thanked Eurocham for its role as a bridge linking the city’s leaders and European businesses operating in the southern economic hub. Eurocham helped businesses understand the city’s new policies and it, together with other organisations of foreign investors in the city, built a close link to help the city’s leaders to get opinions from firms, facilitating foreign investors’ operations in HCM City, he said. He suggested Eurocham share experience in building green works of European urban centres, introduce energy-saving equipment using high tech and solutions to waste treatment. Behrens, for his part, said European businesses are willing to share their experiences and wish to cooperate with the city during its process of building and implementing the smart city project. Eurocham is ready to work together with HCM City in training high-quality human resources and receiving students to practice and work at European research centres and factories in Vietnam, he added. He affirmed that European firms stay ready to join hands in dealing with issues such as the use of renewable energy, water resources management, liquid and solid waste treatment, and urban transport system construction. Better FMCG value growth in 10M The economy's consumer-price-index (CPI) in October was 4 per cent year-on-year due to price increases in healthcare services, crude oil, and food. At 2.27 per cent for the first ten months the figure remains under control. Total retail sales of consumer goods grew a touch slower than last year. In the short term, both urban four key cities - Hanoi, Ho Chi Minh City, Da Nang and Can Tho - and the rural FMCG market (for in-home consumption) performed better in terms of value in the period. However, growth in rural areas was driven by an increase in the average paid price, not purchase volumes. Non-food sectors lead urban market value growth while rural consumers are also investing more in personal care products besides dairy – the key growing sector in rural. Liquid bath enjoyed healthy growth in both the urban four key cities and rural areas. The category attracted more new buyers, in particular in rural areas, and these tended to buy high-cost products. Growing channels (medium-sized street shops, minimarkets and convenience stores in the urban four key cities, and small street shops in rural areas) continue to take market share away from others. Supermarket & Hypermarket see early signs of recovery. Will these maintain positive growth in the last two months of the year? More people are beauty conscious these days and so spend more on beauty products. Together with the affordable premiumization trend, there are plenty of opportunities to tap into the beauty segment, especially in the middle class. MWG's dienmayxanh.com grows 207% in 10M The Mobile World JSC (MWG) has announced revenue of VND35 trillion ($1.57 billion) in the first ten months of this year, up 76 per cent year-on-year and equal to 103 per cent of its annual target. After-tax profit was VND1.33 trillion ($59.6 million), up 57 per cent year-on-year and equal to 96 per cent of the annual target. Turnover of thegioididong.com was VND24.9 trillion ($1.11 billion), a 50 per cent increase year-on-year, and VND10.1 trillion ($452.9 million) at dienmayxanh.com, 207 per cent higher year-on-year. Online turnover reached VND2.53 trillion ($113 million), up 102 per cent year-on-year and equal to 77 per cent of the annual target. The company opened 469 new stores nationwide in the first nine months, including 365 new thegioididong.com stores and 104 new dienmayxanh.com stores. As at October 31 it had 1,102 stores, including 929 thegioididong.com stores and 173 dienmayxanh.com stores. In early November, MWG Chairman Nguyen Duc Tai announced that after-tax profit in 2016 has been estimated at VND1.5 trillion - VND1.6 trillion ($67.5 million - $71.7 million) and it would have 1,200 stores nationwide by the end of the year. Mr. Tai confirmed with VET that its online business holds a 10 per cent market share and leads the online retail market, followed by Lazada. Its thegioididong.com chain stores accounted for 40 per cent of mobile retail share as at October, according to GfK. Small mom & pop stores accounted for 20 per cent while other chain stores accounted for 40 per cent. Its dienmayxanh.com chain stores, meanwhile, accounted for 16-17 per cent of total consumer electronics retail share as at October. Mr. Tai also announced the group was the third largest retailer in the country, behind Co.op Mart with $1.2 billion in turnover and Big C with $900 million. “The company will overtake these two retailers in the near future with $1.8 billion in turnover,” he said. “We have determined that our growth strategy in the 2016-2018 period relies on the thegioididong.com and dienmayxanh.com chains and their online business. In the 2019-2025 period our strategy will focus on Bach Hoa Xanh and vuivui.com - our online supermarket.” Bach Hoa Xanh targets Vietnamese housewives who prefer to save time on shopping by visiting chain stores. Its turnover now stands at VND1 billion ($44,700) per month in each outlet. Eighty stores are to be opened in cities and provinces around the country and its business results for 2017 will prove how effective this model is. “If we succeed we will launch a range of stores nationwide by 2018,” Mr. Tai said. “For now, we cannot give any figures on profits from Bach Hoa Xanh.” There is major potential in Vietnam’s grocery sector, which is worth $60 billion; higher than the value in both the mobile devices and consumer electronics industries, of $6 billion. Bach Hoa Xanh expects to account for 10 per cent of total grocery turnover. vuivui.com has launched a website in Ho Chi Minh City. Mr. Tai said its online business accounts for 5 per cent of total retail turnover and will expand to 20 per cent in the future. “MWG plans to become the No. 1 online retailer by 2020,” he said. First eScooter sharing system in Vietnam piloted On November 21, 2016 an eScooter Sharing System was launched at Ho Chi Minh University of Technology. The system is the result of a joint project between Bosch in Vietnam and Ho Chi Minh University of Technology (HCMUT), Danang University of Science and Technology (DUT), and Vietnamese-German University (VGU). Students working in this project are winners of the Green Challenge contest which was co-organised by Bosch in Vietnam and the above mentioned universities in 2015. The best ideas from the contest were then put into implementation from the beginning of 2016. Bosch sponsored more than VND4 billion (about $182,000) for this pilot project. The next two systems will be launched in December 2016 at VGU in Binh Duong, and DUT in Danang, respectively. In this pilot project, students of the three universities can use 18 eScooters free of charge within their campuses, after registering online. The system offers a smart and eco-friendly alternative to commuting for end users. “We believe that research and development will help enhance the competitiveness and build a knowledge economy in Vietnam,” said Vo Quang-Hue, managing director at Bosch Vietnam. Through this project, Bosch wants to initiate stronger cooperation and collaboration between businesses and academia to boost research and development activities. Vo Quang-Hue added that this system, if properly implemented in large cities, will help solve challenges in public transportation and in environmental protection. Furthermore, the system will be one of the solutions for building up smart cities. To use the service, users create an account at http://bosch-green-challenge.com.vn/ and login to locate the station and book an eScooter. They will then be provided with a code and a control card to activate an eScooter at the chosen docking station. This control card is used as a key for the eScooter, locking, unlocking, and opening the helmet box under the seat. All eScooters are electrically charged at the charging stations which are using solar energy thanks to the solar panels on their roof. A fully-charged eScooter can travel up to 80 kilometres, at the maximum speed of 45 kilometres per hour. People aged 18 and above with a motorcycle driving license can use these eScooters. EVN to resume Quang Trach I in late 2017 State-run Electricity of Vietnam (EVN) will resume the construction of Quang Trach I thermal power plant at the end of 2017, with a total investment capital of VND33 trillion ($1.47 billion), according to newswire Tuoitre. Quang Trach I is one of the two thermal power plants located in Quang Trach Power Centre in Quang Binh province. The plant includes two turbines with a total capacity of 1,200 MW. According to EVN’s plans, the first turbine will come into test operation in 2021 and the second unit in 2022. Previously, EVN was chosen to replace Vietnamese oil and gas group PetroVietnam to develop the long-delayed thermal power plant. The project’s construction was kicked off in July 2011, with the total investment capital of $1.7 billion. The two turbines were expected to come into operation in June and December 2015 and contribute to the national grid an annual 8.5 billion kWh. However, more than five years after the ground-breaking ceremony, the construction has been immobile save for a finished office building. Regarding Quang Trach II thermal power plant, the other plant in Quang Trach Power Centre, EVN will replace Russian Inter RAO Group to carry out a pre-feasibility study on the project. The new investor has yet to release the specific date to start the construction, however, EVN expects to take the first turbine on a test-run in 2028 and the second one in 2029. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Vietnam’s securities to attract foreign funds Vietnam’s securities will attract capital flow from international financiers once its stock market is upgraded from frontier to emerging, experts say.  The participants at a recent workshop on 20 years of development of the stock market in HCM City all said that Vietnam’s stock market has been growing beyond their expectations. About 700 companies have listed their shares on the official bourse and 320 companies have shares traded on UpCom. By November 15, the total market capitalization value had reached $75.61 billion, or 37.8 percent of GDP. It is expected that the figure would be 70 percent of GDP by 2020. Nguyen Ba Duong, president of Coteccons, said Coteccons has benefited greatly since it entered the stock market. The enterprise, which had initial charter capital of VND15.2 billion and revenue of VND250 billion a year in the past, now has charter capital of VND250 billion and revenue of VND20 trillion.
Tran Van Dung, chair of the HCM City Stock Exchange (HOSE), said a survey conducted by HOSE and Stoxplus found that 83 percent of surveyed funds said they would expand investments in Vietnam once the stock market is upgraded, while 50 percent said they would invest more than $10 million in Vietnam. The survey was conducted on 115 investments, of which 75 funds manage total assets of $2.4 trillion. At least $10.8 billion has been allocated for the Vietnamese market. Dominic Scriven, CEO of Dragon Capital, believes that once they area upgraded, the Vietnamese stock market will be more attractive. Foreign investors, especially large funds, want to pour money into Vietnam, but they can only make small investment deals now. Le Thi Le Hang, CEO of SSI Asset Management Company (SSIAM), commented that while foreign investors appreciate the investment opportunities in Vietnam, they are worried about the quality of businesses. SSIAM is looking for businesses which not only have great potential, but also plan for sustainable development and a transparent governance apparatus. According to SSI’s president Nguyen Duy Hung, foreign investors now have high confidence about the potential of Vietnam, so Vietnamese businesses now have great opportunities to attract capital. To catch investors’ attention, businesses need to improve management and develop human resources. President of the State Securities Commission (SSC) Vu Bang said SSC has done better in managing and supervising the stock market to ensure transparency and legality. In other countries, violators are sanctioned heavily or forced to go bankrupt. In Vietnam, the punishments are not stiff enough to deter violators. SSC has encountered difficulties when accessing violators’ emails and bank accounts. However, the laws are being amended to become stricter. Kim Chi, VNN |
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Vietnam to deactivate 12 million unregistered SIM cards  A SIM card store is pictured in Ho Chi Minh City. In just two weeks' time, 12 million mobile phone users in Vietnam may find themselves in need of a new SIM card once the Ministry of Information and Communications deactivates all unregistered and improperly registered SIMs in the country. In Vietnam, a SIM card must be properly registered at the time of activation with the owner’s correct information, including their name, date of birth and ID number. However, some SIM card dealerships have defied the law by self-registering cards en masse with fake information and selling the ready-to-use cards for cheap prices with considerable prepaid account balances to customers, particularly foreigners unaware of the registration process. To combat the use of improperly registered cards, the Ministry of Information and Communications has launched an extensive campaign aimed at deactivating the improperly registered SIMs. A recent inspection by the ministry found a number of SIM cards registered with false information, including fake names and ID numbers. Despite the false registration information, the SIM cards still function normally, so users may not be aware they are using an invalid SIM. According to the ministry, some dealerships either use a single ID to register numerous SIM cards or declare such nonsensical names as “con heo dat” (piggy bank), “happyzone,” and “khong ten” (no name) in the registration. Using this trick, one dealership was able to register 134,357 new SIM cards each year, with more than 11,000 new users each month. The ministry’s inspection also found some service providers violating promotion laws by generously ‘gifting’ users balances bigger than those allowed for their new SIM cards, leading to customers taking advantage of the deals to buy SIM cards in bulk in order to send spam SMS and fraudulent messages. According to data gathered from local mobile carriers, there are some 12 million SIM cards that will be deactivated for violating these laws unless their users re-take the registration process with correct information. Under a request by the information ministry, mobile carriers have notified users of violations via SMS, requesting that they register their SIM cards or risk losing them within 15 days of the notification.  The warning message may read like this. In order to check if your SIM card is properly registered or not, send TTTB to the toll-free 1414. This ministry-provided service is available for users of Viettel, Vinaphone and Mobifone, the country’s leading mobile carriers.  This message says the SIM card is properly registered According to mobile carriers, local users should bring their ID cards, and foreigners, their valid passports, to the nearest official stores of their service providers to complete the registration. Tuoitrenews |
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Kolon Industries bring $1 billion plant to Binh DuongSouth Korean Kolon Industries Inc., a subsidiary of Kolon Group, will develop a $1 billion factory manufacturing airbags and industrial fabric for automobile tires in Binh Duong province, aiming to capture a larger share of the domestic and international market.
According to local media, on November 23, Kolon Industries and leaders of the Binh Duong People’s Committee signed a memorandum of understanding (MoU) to confirm the South Korean firm’s investment plan. In the framework of the event, a representative of Kolon Industries announced a land lease contract with Investment and Industrial Development Corporation (Becamex IDC). Accordingly, Kolon Industries will rent a 42-hectare area in Becamex IDC’s expanded Bau Bang Industrial Park to construct the factory. According to Kolon Industries’s plan, the investment capital of $1 billion will be disbursed in three phases. The first phase, with a total investment capital of $220 million, will be disbursed in the 2017-2018 period, the second phase will last until 2026 with $600 million. The $1 billion mark will be hit sometime after 2026. Before choosing Binh Duong, Kolon Industries paid a visit in March to Ha Nam province to survey the area and find investment opportunities. Establishing its first nylon production factory in 1957, Kolon Industries is currently expanding operations into four major business divisions, namely industrial materials, chemical, electronic materials, and fashion. The company earns approximately $100 billion in revenue each year. It currently has factories in South Korea, China, Indonesia, and Mexico. The corporation plans to globalise its business lines in automotive materials, advanced materials, optical films, chemical and fashion production by increasing investment in high-value products. Its parent company, Kolon Group, was licensed for a $14.1 million airbag manufacturing facility in Binh Duong province last year. The group also wanted to expand on the Vietnamese market via developing another project, probably also located in Binh Duong. The group is currently negotiating this project and forthcoming information has been scarce. By Ha Vy, VIR |
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Gov’t inspectors reveal SCIC violations
HÀ NỘI - Many violations and shortcomings have been found at the State Capital and Investment Company (SCIC). These occurred mainly in the transfer and receipt of State ownership representation rights to and from businesses and in the financial management processes of the SCIC. In an announcement released by the Government Inspectorate on November 22, inspectors revealed their conclusion on the SCIC’s implementation of policies, laws and corporate tasks. The SCIC is a State-owned enterprise. Its primary objectives are to represent State capital interests in enterprises and to invest in key sectors and essential industries, with a view to strengthening the dominant role of the State sector while respecting market rules. The SCIC is currently managing a large portfolio of over 500 enterprises that are operating in various sectors, such as financial services, energy, manufacturing, telecommunications, transportation, consumer products, healthcare, and information technology. Inspectors said the SCIC had failed to uncover and resolve shortcomings in transferring and receiving representation rights among businesses in cities and provinces, including Hà Nội, HCM City, Bà Rịa-Vũng Tàu and An Giang provinces. The inspectors said the SCIC Board of Directors did not issue documents to approve the corporation’s plans to receive the State ownership representation rights from businesses. It was found to have received rights from Vietnam Trading Engineering Construction Joint Stock Corporation (Vietracimex) without a prime ministerial decision. A problem occurred when Vietracimex was found not to be on the approved list of businesses being transferred. Meanwhile, the SCIC initially announced its representation of State equity ownership in Vietnam Insurance Company (Baoviet) after it received ownership transfer rights from Vinashin, which is currently Shipbuilding Industry Corporation (SBIC). This did not adhere to the laws on such a transfer. The inspectors concluded that in the 2008-13 period, the SCIC transferred its representation rights of State equity in 30 enterprises to ministries and localities for management, but only Jetstar Pacific Airlines Joint Stock Company had received the prime minister’s instructions. Slack supervision On the implementation of rights and obligations of the State equity owners in the businesses, the inspectors said the transfer dossiers at a number of businesses lacked authorisation, figures and legal documents. There was also a shortage of the businesses’ latest balance sheets and transfers of capital and assets prior to equitising the companies. The SCIC was also found to have violated regulations on granting authority to unqualified persons to represent the State capital in the businesses. By September 30, 2015, there were 21 representatives older than retirement age. Some of them did not have the authority to represent the State equity, while others had received authority a long time after assuming the post. A number of representatives had not completed their tasks in two consecutive years, but the SCIC did not consider blocking their authority, as regulated by the law. As for the State equity representatives’ tasks at the businesses, several representatives had not made periodic reports on the corporate operations to the SCIC, while others had approved investments without receiving authority from the SCIC and shareholders. The inspectors said the representatives had not fully executed their obligations and tasks in accelerating and revoking debts for the SCIC, in addition to violating regulations on project bidding and implementation without an assessment of investment effects or approval from shareholders. The State capital representatives had caused many violations and shortcomings at a number of businesses, with a total value of more than VNĐ183 billion (US$8 million). Investment capital As for the SCIC’s investment of State capital, the inspectors said its business saw profits, but the effects of some investment amounts were unclear. Further, the addition of investment capital to several businesses had no close supervision. For instance, an investment had been made in Hanoi Transport Construction Joint Stock Company, and the company still received additional capital from the SCIC, even though this was not listed in the investment plan. There was also no corporate assessment, though this company had continuously faced difficulties in operating their business. The SCIC also decided to spend more than VNĐ1.6 trillion to allegedly raise registered capital for the Việt Nam Construction Import-Export Corporation (Vinaconex), though it seems this did not really occur. In fact, the funds were used to help the corporation pay its debts after it suffered losses of VNĐ2 trillion from the Cẩm Phả cement project. The government inspectors also discovered SCIC violations in managing and using the Business Arrangement and Development Support Fund. Nearly VNĐ1 trillion was incorrectly spent on purchases and investments in fundamental construction projects, while some VNĐ400 million worth of violations were discovered involving project dossiers, balance sheets and examinations. Based on these violations, the government inspectors have proposed that the prime minister, the Ministry of Finance and other relevant ministries and sectors become involved in resolving the shortcomings and issue fines or take disciplinary actions against a number of individuals and groups involved in the violations. The prime minister has agreed to the inspectors’ conclusions and proposals. Viet Nam News |
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BUSINESS IN BRIEF 25/11 Gov’t aims for stable power tariff  The electricity sector in 2017 will strive to prevent the power tariff from stirring controversy, said Hoang Quoc Vuong, deputy minister of Industry and Trade. Vuong said the sector has not seen complaints about power tariffs this year, as the prices have been kept stable. The sector has ensured power supply to the production and consumption demand as well as national energy security in the year of 2016. A report from the Electricity of Viet Nam (EVN) showed that in 2016, the group planned to have power output of 175.9 billion kWh. Of which, the EVN’s power productivity would be 81.6 billion kWh, while that of purchasing power output was 94.27 billion kWh and the commercial power output was 19.1 billion kWh. As of October, total power capacity was 40,823 MW, including 15,368 MW of hydropower plants; 13,826 MW from thermal power plants; 2,209 MW from small hydropower plants and 395MW from imported power. The National Oil and Gas Group (PetroVietnam) – one of the two big groups providing fuel to thermal power plants said its gas supply next year was expected to be lower than this year’s. Therefore, PetroVietnam will continue to work with its members to adjust the gas supplies in 2017 to meet with power production demand. Nguyen Van Bien, deputy general director of Viet Nam National Coal and Minerals Group (Vinacomin), said the group and Dong Bac Corporation have been studying to design three new vessels to better serve coal transportation. Vinacomin has also worked with three transport companies to facilitate coal transport to thermal power plants. This year, Vinacomin supplied around 4.8 million tonnes of coal to EVN thermal power plants. The amount is expected to reach 5 million tonnes in 2017. Deputy minister Vuong asked all power companies to pay attention to power plant maintenance to ensure safety, as there were some incidents this year. He required PetroVietnam to ensure gas supplies for electricity production while asking Vinacomin and Dong Bac Corporation to supply coal for 22 power plants. In addition, Viet Nam will consider importing power from Laos if the tariff was lower than local production costs. Hanoi wants more high-tech farms Ha Noi is seeking ways to promote investments in high-tech agricultural production. Experts at a conference held here on Tuesday said the shortage of land, infrastructure, planning and policies as well as human resources were barriers to investments in this specialised sector. Nguyen Thi Thoa, head of the plantation department of the municipal Department of Agriculture and Rural Development, said the capital city targeted raising the proportion of high-tech agricultural production from the current 25 per cent to 35 per cent of the sector’s total production value by 2020. Businesses are still not very keen on investing in this model due to difficulties in accessing land, credit and modern techniques, while incentives were still beyond reach, Thoa said. Addressing land as the greatest problem affecting investment in such production, Vo Viet Dung, chairman of Nam Ha Noi Food Processing Joint Stock Company, said the city should have a policy to develop land for this kind of agriculture. “Land is of great importance in encouraging firms to pour investment into agricultural production,” Dung said. Experts at the conference said that promoting the link between farmers and firms was critical. Dam Quang Thang, director of Agricare VN, said firms should coordinate with farmers to apply advanced technology to agricultural production. In addition, strong products should be selected to spearhead the project, Thang said. “Ha Noi should have policies to encourage the development of the agricultural value chain to produce high value-added and competitive products,” Bui Le Phong from Ha Noi Seed Joint Stock Company said, adding that a specialised zone for high-tech agricultural production should be developed to attract investments. Do Nang Vinh from the Agricultural Genetics Institute under the Ministry of Agriculture and Rural Development said renovating the production methods of the agricultural sector is now a necessity due to increasing demand for high-quality agricultural products in both the domestic and foreign markets. Vinh said Ha Noi should build a high-tech agricultural park and should plan for high-tech agricultural production, focusing on producing strong products. Agreeing with Vinh, Nguyen Tri Ngoc Nguyen, Director of the ministry’s Plantation Department, said developing a zone for this kind of agricultural production was now urgent. However, as public funds remain limited, the capital city should adopt policies to attract private investments, he added. Ha Noi has more than 157,000ha of agricultural land, accounting for 46.8 per cent of the city’s total area. The value of agricultural production reached VND32.9 trillion (US$1.46 billion) last year. Vietnam attends international trade fair in Algeria A Vietnamese company is attending the 14th International Trade Fair for Public Works and Construction Machinery - SITP 2016, which started in Algiers, Algeria on November 23. SAKI Corp, which specialises in industrial scale production and providing professional equipment, is representing Vietnam at the fair. Addressing the event, Vietnamese Ambassador to Algeria Pham Quoc Tru said that Algeria has high demand for public works construction and human resources for infrastructure development. He expressed hope that Vietnamese firms will actively seek opportunities and business partners in Algeria in various fields, particularly construction. The five-day fair, organised by Algeria’s Ministry of Public Works and Transport, has also drawn the participation of construction and transport companies from Germany, France, Italia, China, Indonesia and Algeria. Tra Vinh strives to attract 2.6 billion USD in five years The Mekong Delta province of Tra Vinh has set to attract about 59 trillion VND (2.6 billion USD) of investment in the 2016-2020 period, said a provincial official. Tran Anh Dung, Vice Chairman of the provincial People’s Committee, said that the province expects 960 billion VND from State businesses, 49.56 trillion VND from private enterprises and 8.4 trillion VND from foreign direct investment (FDI) sector. To fulfill the target, the locality will apply a number of measures, including fostering connection between authorities and businesses in investment promotion and calling for investment in transport, economic and industrial zone infrastructure. Tra Vinh will review and build support and preferential policies for investors, while creating a smooth, transparent and competitive investment environment and speeding up the administrative reform, he said. At the same time, it will create all favourable conditions for businesses to access capital and land, while implementing support policies for both enterprises and individuals during their investment and ensuring social security and order in the locality. Tra Vinh will also make public its land fund, detail planning, and prioritised projects to encourage investment, said Dung. Meanwhile, the province will improve the quality of training for labourers, especially those in rural areas, in addition to enhancing local officials’ capacity, he added. So far, Tra Vinh has attracted 48 projects with a total registered capital of more than 151 trillion VND (6.6 billion USD), including 16 FDI projects worth over 2.88 billion USD. Investors in Tra Vinh are mostly from Malaysia, the Republic of Korea, Japan, Canada and Taiwan (China).- Can Tho fosters economic, cultural links with RoK’s Gimcheon province Chairman of the Can Tho city People’s Committee Vo Thanh Thong and Governor of Gimcheon province of the Republic of Korea (RoK) Park Bo Saeng discussed orientations for economic and cultural cooperation between the two localities. During their meeting in the Mekong Delta city of Can Tho on November 23, the Gimcheon Governor suggested the two localities sign a Memorandum of Understanding on bilateral partnership, focusing on the trading of their farm produce. He asked Can Tho authorities to help with the organisation of more workshops, fairs and exhibitions in order to connect Vietnamese and Korean businesses, particularly those from Can Tho and Gimcheon. The governor also informed his host that Korean enterprises hope to sell their agricultural machinery in Vietnam. Chairman Vo Thanh Thong affirmed Can Tho always regards the RoK as a strategic partner, a prestigious supplier and a promising export market. The city is accelerating its export of seafood, garments-textiles, fertilisers and chemicals to the RoK while importing pharmaceutical and garment-textile materials from the market, he said. Besides, Can Tho has also paid attention to promoting ties with the ROk in the fields of education and culture, the official said, adding that the RoK has conducted many educational cooperation projects with the city, such as the establishment of the King Sejong Institute and the Korean Studies Centre, among others. According to the Can Tho Department of External Affairs, the RoK is currently running nine investment projects in the city with accumulated capital of 247 million USD. Two others are funded by RoK’s official development assistance (ODA), including the Vietnam-RoK industrial incubator. RoK non-governmental organisations (NGO) have also sponsored four projects in Can Tho. International textile, garment exhibition kicks off in HCM City The 16th Vietnam International Textile and Garment Industry Exhibition opened in Ho Chi Minh City on November 23. The event draws the participation of more than 400 agencies and businesses from 17 countries and territories. They bring up-to-date machinery and equipment to the exhibition, such as sewing machines, power looms, automatic fabric cutting and printing machines, garment materials, apparel and accessories. Workshops on domestic firms’ competitiveness and the future of Vietnam’s textile and garment industry will also be held as part of the exhibition, which will last through November 26. Vietnam’s textile and garment exports increased 4.8 percent year on year in the first 10 months of 2016 to 23.3 billion USD, according to the National Garment and Textile Group (Vinatex). The country targets total overseas shipments worth 28-29 billion USD this year. The US is the top market for Vietnam’s textile and garment products with 10 billion USD, up 4.37 percent from a year earlier, followed by Europe with nearly 3 billion USD, up 2.46 percent. Vietnam, Norway look to optimise maritime economic cooperation Vietnam and Norway will forge stronger cooperation in maritime economy for the interest of residents in coastal localities, heard a conference on maritime economy held by the Norwegian Embassy in Ho Chi Minh City on November 23. According to Nguyen Hoang Ha from the Development Strategy Institute under the Ministry of Planning and Investment, with advantages of a long coastline spanning from north to south, Vietnam boasts high potential in sea-based industries, trade and services. However, the exploitation of maritime economy in Vietnam has been limited as the annual production value has stayed modest, he said. Ha also pointed to challenges facing Vietnam in effective developing sea-based economy and protecting the environment at the same time in the context of climate change, adding that Vietnam should make new policies and planning and widen its international cooperation for improving the situation. Meanwhile, Norwegian Ambassador to Vietnam Siren Gjerme Eriksen said that Norway and Vietnam share similar strength in sea-based economy, maritime navigation and oil and gas, which enabled them to cooperate in the areas over the past years. Since 1979, Norway has supported Vietnam in personnel training for the oil and gas sector, she said, adding that Norway has also worked with Vietnam in developing standards in environment and safety for the sector. In the future, if negotiations on the free trade agreement between Vietnam and the European Free Trade Area (which comprises of Switzerland, Norway, Iceland and Liechtenstein) succeed, the Vietnam-Norway trade and investment ties will thrive, she said. At the same time, Erik Hempel, Director of Communications at the Nor-Fishing Foundation, shared his opinion on the significance of science and technology in fisheries development. He also pointed to the need of a complete legal framework for sustainable development. Within the conference’s framework, a number of thematic discussions were held on maritime economic sectors of both country’s strength, technology in seaport operation and sustainable development of the shipbuilding industry. National brand award to honour 88 businesses Up to 88 businesses will be presented with the “Vietnam Value Award 2016” in recognition of their national strong brand names on November 30, officials have announced. Deputy Director of the Trade Promotion Agency Do Kim Lang said, out of the 88 businesses, 23 firms have won the awards for five consecutive times, including Viet Tien, An Phuoc, Saigon Beer-Alcohol-Beverage JSC (Sabeco), Vina Coffee; Commercial Bank for Foreign Trade of Vietnam JSC (Vietcombank); Biti’s; Vietnam Posts and Telecommunications Group (VNPT), and Saigon Jewelry JSC (SJC). Worthy of note, 26 enterprises reported annual revenues of at least 5 trillion VND (220 million USD) and 70 others earned at least one trillion (44 million USD) per year, Lang said, adding that some small-sized companies will be also honoured for their efforts to invest in new fields such as biotechnology and hi-tech. The organisers said this year’s award winners operates in various fields such as engineering, machinery and equipment; garment-textiles and footwear; electronics, information technology and telecommunications; agriculture, forestry and seafood; finance and banking; food and beverages; trade services; construction and real estate. In 2015, their combined revenues exceeded 662 trillion VND (29.1 billion USD), up nearly 20 percent from the figure in 2013. They exported over 2 billion USD worth of goods, contributed over 59 trillion VND (2.6 billion USD) to the State budget, and created jobs for nearly 500,000 labourers. The enterprises also donated over 2.3 trillion VND (102 million USD) to charity activities last year. Vietnam Medi Pharm Expo to open next week As many as 150 enterprises in the pharmaceutical and medical sectors from 18 countries and territories will display their products at the upcoming medical and pharmaceutical exhibition in Hanoi. The 23rd Medi and Pharm Expo will take place from December 1-3 with 250 booths displaying latest achievements, advanced technology and medical equipment. Twenty five companies from the Republic of Korea will participate in the event, along with those from Canada, the US, the UK, the Czech Republic, Germany, Italy, Russia, Japan, India, Singapore, Malaysia and Thailand, among others. Conferences, free-of-charge medical checkups, blood donation and gift presentations will take place during the expo. Exports to Myanmar dwindle in ten months Vietnam’s exports to Myanmar dipped 11.1% to US$275.2 million during the first ten months of this year, according to the General Department of Vietnam Customs. Vietnam businesses exported 13 kinds of products to Myanmar with means of transport and spare parts leading the pack with US$41 million, up 32.85% and accounting for 21% of total export value, trailed by machinery, equipment and tools (up 33.77% to US$33.8 million) and steel (down 24.25% to US$27.4 million). In the reviewed period, 61.5% of export products to Myanmar posted relatively high growth while 38.4% saw lower growth rates. Clinker and cement experienced a strong decline of 98.6%. Export items to Myanmar included means of transport and spare parts (making up 17%), steel (14%), plastic products (14%) and others (34%). Small firms in Vietnam lack access to bank credit Vietnam’s 600,000 small and medium-sized enterprises continue to grapple with limited access to credit even though they play an important role in the economy and account for 52% of total employment, the Vietnam Chamber of Commerce and Industry (VCCI) said. Only 30% of private businesses of small and medium sizes, better known as SMEs, have managed to secure bank loans, according to latest data from VCCI, an influential group that represents the business community in the country. Statistics also showed that the amount of credit provided to SMEs only accounted for 3% of all outstanding loans at local banks. There is not much readily available information to help banks gauge a small business’s creditworthiness, Rajeev Chalisgaonkar, the global head of business banking at Standard Chartered, told a workshop on November 23. Although there are some banks that focus on SMEs, they really are not able to offer financing to early-stage companies which often don’t have a track record of reliable annual revenues or a history of good credit, he said. Limited access to finance is a major constraint to the growth of private companies, besides other obstacles such as management or technological issues, said VCCI’s Vice President Vo Tan Thanh. There is a growing recognition of the importance of the private sector, particularly of SMEs. The government is expecting that, by 2020, private companies will contribute up to 49% of gross domestic product. In order to improve access to finance for small businesses, the Ministry of Planning and Investment has proposed a series of initiatives to support small businesses. If the country's lawmakers sign on, an estimated 550,000 SMEs will benefit. Vietnam to import power from Laos to ease shortage Vietnam is negotiating with Laos on electricity prices as it may need to import power from the neighbor for its fast growing economy, local media has reported, citing trade deputy minister Hoang Quoc Vuong. Demand for electricity is expected to grow 13%annually in the next four years. Meanwhile, the country’s total output in 2016 is forecast to increase by just 12% to 184 billion kWh from last year, Nguyen Hai Ha, an executive of state utility EVN told the Saigon Times. In the short term, the government has planned to bridge the supply-demand gap by importing electricity from Laos, which will build four more hydropower plants in 2017. Vietnam has upgraded transmission grids to accommodate the imports. EVN estimated the total output of locally produced and imported electricity this year will reach 175.9 billion kWh. Vietnam's economy has expanded by more than 5% a year on average since 1999 and growth is forecast to reach 6.5%-7% in the next four years. The country has mapped out a blueprint for the development of the power sector. The plan foresees VND3,207 trillion (US$142 billion) worth of investments in generation and distribution capacity through to 2030. Some US$40 billion will be invested between 2016 and 2020, of which about 75% will go to generation. It is estimated that Vietnam will need 330-362 billion kilowatt-hours (kWh) in 2020 and 695-834 billion kWh in 2030 to achieve the average annual economic growth rate of 7%. Measures strengthened to give a boost to agricultural exports Vietnam’s fruit and vegetable exports are on track to reach the target of US$2.5 billion for 2016, yet the standstill in rice exports has made the Ministry of Agriculture and Rural Development (MARD) more determined to carry out trade promotion activities on the Philippine market in the future. According to the MARD, as of the end of October, exports of fruit and vegetables were at approximately US$2 billion, up 30% compared to the same period of 2015. China is still Vietnam’s largest import market for such items, accounting for a market share of over 70%. MARD Minister Nguyen Xuan Cuong said that the potential for boosting fruit and vegetables exports is relatively large. It is expected that this year Vietnam could export a total value of US$2.5-2.6 billion in fruits and vegetables. Vietnam’s agro-fishery-forestry exports to China hit US$26.4 billion in the first ten months of 2016, a rise of 6.3% year on year. In general, exports of these products to China account for about 20% of the sector’s total export value, with the main products including rubber, cassava, cashews, fresh vegetables and seafood. As for fruits, Hoang Trung, Director of the MARD’s Department of Plant Protection, said that the department has developed additional records for other fruits to push open the door to the Chinese market. The department has closely worked with the Chinese side to complete relevant procedures to officially put these items on the neighbouring market soon, he noted. Regarding the US market, though it is the second-largest importer of Vietnamese agricultural products, it is a market with a complex legal system and technical and trade barriers, Trung added. According to Nguyen Nhu Tiep, Director of MARD’s Department of Agro-Forestry-Fishery Quality Management, Vietnam is seeking to get the US to allow Vietnamese mangoes and star apples onto its market soon. Most noteworthy is that, while exports of fruit and vegetables have been continuously growing in recent years, rice exports—among Vietnam’s most important agricultural exports—have recorded a significant decline. During the first ten months of this year, rice exports reached only 4.2 million tonnes at approximately US$1.9 billion, down by over 21% in volume and 16.9% in value compared to the same period of last year. In fact, as early as September of this year, the export turnover for fruits and vegetables exceeded that of rice. MARD Deputy Minister Tran Thanh Nam gave his assessment that rice exports would continue to face difficulties, which may last until 2017. The winter-spring crop has started and rice is expected to be harvested by January or February 2017, so it is necessary to seek measures to tackle problems and strengthen trade promotion for rice exports, he affirmed. Deputy Minister Nam also asked relevant departments of the MARD to send delegations to the Philippines to promote trade promotion to accelerate rice exports to this market. Can Tho, ROK agree to collaborate in hi-tech agriculture The Can Tho Municipal People’s Committee and their counterparts from Gimcheon Province in the Republic of Korea (ROK) agreed on November 23 to join forces to boost trade in hi-tech agriculture, among other things. At the meeting, Vo Thanh Thong, chair of the Committee said the ROK is also a potential market for increased collaboration in clothing and textiles, fruit and vegetables, and seafood. The parties noted they expect to soon sign memorandum of understanding to create a stronger and more durable long-term relationship in collaboration in high-tech agriculture, specifically as it relates to modernized machinery and equipment. Hindrances to HCMC's river tourism pinpointed Three years have elapsed since the HCMC government endorsed a program to buoy its river tourism, but the sector has barely developed due to two key bottlenecks: lack of infrastructure and waterway pollution, heard a seminar here on November 22. Growth of river tourism over the past three years has been minimal although the municipal government has been determined to make it a special tourism product of the city, said delegates at the seminar organized by Tuoi Tre newspaper on November 22 to work out solutions for the sector. From 2013 to the third quarter this year, the number of tourists buying river tourism services increased a mere 11.5% to roughly 257,700. In the January-September period this year, the number totaled only 68,000 tourists, almost the same as the year-ago figure. In 2014, there were 37 enterprises with 130 waterway transport means involved in river tourism, but the respective numbers have now plunged to 19 enterprises with some 100 boats. Bui Ta Hoang Vu, director of the HCMC Tourism Department, told the seminar on river tourism that the falling numbers were due to the closure of Bach Dang Wharf, which used to be a bustling docking place for tourism boats and floating restaurants. Some entrepreneurs attending the seminar “River Tourism – Special Services for HCMC Tourism” complained about the lack of wharfs and berths for tourist boats to dock, while many canals have become seriously polluted. If the city government has a concrete policy for developing berths and wharfs and invite investors to dredge and clean up canals, enterprises would be ready to step in without having to ask for support from the State budget. Phan Xuan Anh, board chairman of Saigon Boat Co. Ltd., said his company had to suspend the rowboat service on Nhieu Loc Canal due to heavy pollution. “Despite some positive signals from the rowboat service on Nhieu Loc Canal, we suspended it due to mass fish deaths in the canal. Waste discharged into canals is another problem, as we could not collect all such garbage disposed of by people,” he lamented. Pham Xuan Anh is among the first entrepreneurs in the city to develop river tourism, and now some others are ready to follow suit. Duong Thanh Thuy, chairwoman of Trung Thuy Group, said her company had incubated a plan to develop river tourism for years. The group wants to develop a river-borne tourism complex named Saigon Corner near Mong Bridge in District 1. If the city government supports the idea, Trung Thuy Group would invest some VND100 billion to execute the project, she said. HCMC chairman Nguyen Thanh Phong noted at the seminar that developing river tourism as well as diversifying tourism services are among priorities of the city. The city leader instructed the Tourism Department director to meet with Trung Thuy Group over the Saigon Corner project, and asked the Department of Zoning and Architecture to examine 54km of waterway from Binh Loi Bridge to Cu Chi District to find out suitable venues for building facilities to back river tourism. Bui Xuan Cuong, head of the city’s Transport Department, revealed at the seminar that an area stretching 1,800 meters along the Saigon River at Saigon Port will be set aside for constructing tourism facilities, mainly to accommodate small- and medium-sized boats. Payment method an obstacle for exports to Russia Russia is considered a sizeable market for Vietnamese enterprises as the free trade agreement (FTA) between Vietnam and the Eurasia Economic Union (EAEU) has taken effect, but payment in the Russian market is spelling trouble for local firms, heard a seminar in HCMC on November 22. Vietnam-Russia trade accounts for 80% of Vietnam’s total trade with the EAEU, which groups Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, said Tran Viet Phuong, deputy head of the Division for Russia and CIS countries at the Ministry of Industry and Trade’s Europe Market Department. Russia has demand for various types of goods, including big export earners of Vietnam such as agricultural products, garment and footwear, he told the seminar on access to the Russian market after the FTA between Vietnam and the EAEU takes effect, held by the HCMC Institute for Development Studies and the HCMC Investment and Trade Promotion Center (ITPC). He said the FTA brings to zero tariffs on key export products of Vietnam to Russia, including apparel products, bag and seafood. Not only that, Russian light industrial product importers are switching from China to other countries, opening more opportunities for Vietnamese firms, he added. Despite its large potential, there remain difficulties for Vietnamese exporters due to shortcomings in its payment methods with Russian partners, Phuong said. Do Thi Thanh Huyen, deputy head of the corporate customer department under the Bank for Investment and Development of Vietnam (BIDV), said many Russian firms do not strictly adhere to international practices but choosing to make deferred payments when importing goods from Vietnam, and ask customers to make advance payments when exporting products to Vietnam. Those payment methods make it difficult for local firms to mobilize capital and expose them to risks. Meanwhile, the letter of credit, or L/C, which is currently the most popular payment method for enterprises doing business on global markets, is not preferred due to its high cost. Coming into force on October 5, the FTA between Vietnam and the EAEU is expected to boost bilateral trade between the two sides from US$4 billion currently to US$8-10 billion in the coming years. Last year, imports from Russia totaled US$824.4 million, making up 0.4% of Vietnam’s total import bill and increasing 28% against 2014, while exports to this country totaled more than US$2 billion, down 28% from 2014. FMCG market improves in Q3 The fast-moving consumer goods (FMCG) market showed improvement in terms of value between mid-July and October 9 this year against the second quarter, according to a report released on November 22 by market research firm Kantar Worldpanel. According to the report, the FMCG market expanded in value in four major cities –HCMC, Hanoi, Danang, and Can Tho, as well as rural areas. The growth in rural areas mostly resulted from the average purchase price increase rather than the rise in goods consumption. During the period, non-food items led the value growth in urban areas. Consumers in those areas spent more on personal care items, aside from milk and milk-related products, which has been the key sector for FMCG growth in the areas. Shower gel was one of the most-consumed products in the four cities and rural localities in the third quarter after consumers had reduced the use of personal care items including shower gel since last year due to economic difficulties. Kantar Worldpanel said consumers have spent more on beauty care products and the growing trend of using high-quality beauty care products with reasonable costs among people in the middle class has offered more opportunities for producers. Regarding retail channels, department stores, small supermarkets, convenience stores in urban areas and small grocery stores in rural areas have continued to gain more market shares while supermarkets and hypermarkets have showed signs of recovery. Three investors eye wastewater treatment project A consortium comprising Lotte Engineering and Construction, Huvis Water Corp., and Honor Shine Global is seeking approval from the HCMC government to develop sewers and a wastewater treatment plant in the west of the city. The investment cost of the two-phase project is estimated at US$350 million in phase one and US$132 million in phase two under the build-lease-transfer (BLT) format. The investors expect to complete and commission the first phase with a daily treatment capacity of 450,000 cubic meters by 2020 and 650,000 cubic meters after 2020. If the proposal is approved, the investors would combine three wastewater treatment plants, namely Tan Hoa-Lo Gom (300,000 cubic meters a day), West Saigon (120,000 cubic meters a day) and Binh Tan (180,000 cubic meters a day), into a single complex in the premises of the Binh Hung Hoa wastewater treatment plant, covering a total of around 35 hectares in Binh Tan District. They also want to construct West Saigon pumping station with a capacity of around 220,000 cubic meters a day, and a 7.6-kilometer sewer system from Ly Chieu Hoang pumping station in District 6, and another of 3.5 kilometers from the station in Tan Phu District to the facility. The combination of three plants would help save costs of site clearance, investment, operation and management, according to environmental experts. In a related development, two wastewater treatment plants of Nhieu Loc-Thi Nghe (500,000 cubic meters a day) and East Saigon (350,000 cubic meters a day) are being merged into one facility with an estimated capacity of 830,000 cubic meters. It is in preparation for the first phase with a daily capacity of 480,000 cubic meters in Thanh My Loi Ward, District 2. The basin areas of Tan Hoa-Lo Gom, West Saigon and Binh Tan canals are densely populated with fast-paced development but do not still have a central wastewater collection and treatment system, leading to serious pollution in nearby rivers and canals. The investors would recover their capital in around 30 years in the forms of water drainage service and wastewater treatment fees. The city government is mulling a roadmap to set prices of drainage services, which is to be introduced in the next few years. This is supposed to attract businesses to invest in water drainage and wastewater treatment systems, helping ease the burden on the city budget. The city needs to build seven more wastewater treatment plants by 2020, of which three plants, namely Nhieu Loc-Thi Nghe, Binh Hung and Tham Luong-Ben Cat are under construction. Draft decree: Transparency for pyramid schemes imperative The Ministry of Industry and Trade has just put forth draft amendments to a decree regulating pyramid schemes, demanding thorough transparency in this trade practice with an aim to protect consumers and distributors. In a report on the draft amendments sent to the Government, the ministry says new regulations on transparency are meant to safeguard the interests of consumers and distributors on the one hand, and facilitate management of State agencies towards this controversial practice on the other hand. If the draft decree gains Government approval, the playground for many companies conducting multi-level marketing schemes will be drastically narrowed down as consumers will be better informed whether they get fair prices when buying products, while disputes will be settled in a more convenient manner. In specifics, enterprises launching pyramid schemes are told to develop an information technology system governing their distributors, allowing the latter to browse for information related to their sales activities. The server for such an IT system must be placed in Vietnam. Such enterprises must also operate websites providing information on their organizations, products, and plans to pay bonuses, and training programs and the list of trainers. The enterprises must also announce and update prices of products, and clarify that such prices are determined by the enterprises, not by competent State agencies. Commissions and bonuses must be transferred via banks – cash prohibited – and when running ads on such monies for distributors, these enterprises must give all information on the beneficiaries including their names and addresses, their ranks or positions in the system, the network they run and the time length needed to obtain such award-giving revenues. In addition, relevant information about sales, the process of conducting transactions with participants, and measures to terminate contracts with participants must also be provided. The draft decree demands that multi-level marketing enterprises must maintain hotlines to respond to any complaints by consumers or participants in the scheme, and must issue invoices for customers to protect their interests in case they want to return the purchased items. Also with an aim to guarantee the interests of consumers and participants, the draft decree also raises the deposit for each multi-level marketing enterprise to VND10 billion against the current level of VND5 billion, and the deposits can be adjusted annually corresponding to the size of sales schemes. Recently, many people participating in multi-level marketing schemes have gone bust due to expectations of high returns promised by such enterprises. The settlement of disputes has also proven difficult due to vague provisions in their contracts. At the question-and-answer session at the National Assembly sitting in Hanoi last week, Minister of Industry and Trade Tran Tuan Anh admitted that there remained many shortcomings in State management over multi-level marketing practices in the country. The ministry has been slow in bringing out policies and sanctioning violations, the minister said. Seafood exports to China up sharply Vietnam’s seafood exports to China rose strongly in the first nine months of this year but the nation should adopt strict measures to maintain steady growth in its exports, said the Ministry of Agriculture and Rural Development. The ministry on November 22 held a meeting to review agri-aqua-forestry exports and discuss ways to boost outbound sales of these products. The ministry said China overtook South Korea as the fourth largest importer of Vietnamese seafood. Agri-aqua-forestry exports to the neighboring nation reached US$4.9 billion in January-September, making up 20% of Vietnam’s total export earnings in the sector. Major export earners included rubber, cassava, cashew nut, fresh vegetables, fruit and seafood. Nguyen Hoai Nam, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), told the meeting that shrimp exports to China increased significantly. He noted Vietnam still has not imposed taxes on foreign traders that come to Vietnam to acquire agro-aqua-forestry products. He proposed relevant ministries and agencies consider this matter to avoid unhealthy competition with local traders. Nam said the country should tighten inspection on goods exported to China to ensure quality and fair competition among exporters. Nguyen Viet Manh of the Vietnam Fisheries Society suggested that Vietnam should boost sales to the Eurasian Economic Union (EAEU), the Middle East and North Africa, besides traditional markets like the U.S., the EU and China. Africa and Latin America are also potential markets for Pangasius fish and Vietnam can step up shrimp exports to Australia. The U.S. is the second largest market for Vietnamese agro-aqua-forestry products. However, America’s regulations are complicated with many trade barriers. Regarding the new U.S. farm bill, Nguyen Nhu Tiep, head of the National Agro-Forestry-Fisheries Quality Assurance Department under the ministry, said the department is cooperating with the U.S. and conducting procedures to avoid a disruption in Pangasius exports to this market. Japan is checking all Vietnamese seafood shipments to see whether they are contaminated with antibiotic residues. This not only causes warehousing costs to surge but also affects the competitiveness of Vietnamese items. Notably, the Northeast Asian country also double-checks Vietnamese agro-aqua-forestry products. Le Van Banh, head of the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production under the agriculture ministry, said shrimp sold to Japan must meet high requirements on antibiotic Enrofloxacin. He said this hindrance should be removed to ensure Japan’s rules match those in other developed nations. Besides, Vietnam should prepare documents to ask Japan to recognize test results by Vietnamese laboratories to create favorable conditions for Vietnamese firms to sell seafood and farm produce to Japan. Vietnammm.com expands to Nha Trang and Hoi An Vietnammm.com introduced its online food ordering service in Nha Trang and Hoi An on November 23. It becomes the first to provide the service in the two tourist destinations, and already has a presence in Ho Chi Minh City, Hanoi and Da Nang. “We are happy to penetrate into the markets of Hoi An and Nha Trang, two beautiful cities, to bring convenience to customers when ordering food,” said Mr. Jochem Lisser, CEO of Vietnammm.com. At the end of last year Vietnammm.com bought Foodpanda Vietnam, its major competitor in online food ordering in the country. All customers of Foodpanda.vn were passed on to Vietnammm.com, as was its list of 1,000 restaurants. At the time Mr. Lisser said that its deal with Foodpanda Vietnam would boost its leading position in food ordering services in Vietnam and would be a platform for subsequent investments. Last year it also announced it had achieved growth of over 300 per cent in the previous three years and targets accounting for 90 per cent of the market in online food ordering in the country. After buying Foodpanda Vietnam, Vietnammm.com now competes with eat.vn, which belongs to the Vietnam Communications Corporation (VCCorp). Established in 2011, Vietnammm.com was bought by Takeaway.com in 2013. Six years on Vietnammm.com covers Ho Chi Minh City, Hanoi, Da Nang, Nha Trang and Hoi An, offering over 1,500 restaurants and handling thousands of online food orders a day. Takeaway.com is found in the Netherlands, Belgium, Germany, Austria, Switzerland, France, the UK, Luxemburg, Poland and Vietnam. Every month it takes 4 million orders. It is listed on the Euronext Amsterdam Stock Exchange, with market capitalization of $1 billion. Foodpanda is a global online food ordering service that arrived in Vietnam in 2012 after establishing itself in over 40 countries worldwide. It was connected to more than 1,000 restaurants in Vietnam, including well-known brands such as Baskin Robbins, Burger King, Al Fresco’s, and KFC. In May 2015 it received an additional part of an investment package worth $110 million, including a sum from a new investor, Goldman Sachs. Existing investors, including Rocket Internet, also contributed to the package. Thuduc House to increase stake in Fideco The Thuduc Housing Development Corporation (Thuduc House, code: TDH) has agreed to finalize the list of shareholders to obtain approval for raising its ownership in the Foreign Trade Development and Investment Corporation of Ho Chi Minh City (Fideco, code: FDC) to 65 per cent without a public offering. The process of obtaining written opinions from shareholders is expected to be conducted in December. Thuduc House plans to buy more than 18.2 million FDC shares, increasing its holding to 25 million shares, or a 65 per cent stake. “The purpose of this move is to expand the company’s land reserves,” a representative from the Public Relations Department at Thuduc House confirmed with VET. The form of purchase is expected to be made by agreement between the two parties and will take six to nine months. Apart from 29 ha in Can Gio district, Ho Chi Minh City, FDC also owns more than 2,000 sq m in District 1’s Phung Khac Khoan Street, which are considered to be of high value. Thuduc House has planned to buy more FDC shares since the beginning of this year. After a range of transactions conducted before March, it announced it owned nearly 6.9 million FDC shares, corresponding to 24.89 per cent of charter capital. FDC is expected to earn a profit of about $1.33 million from issuing swap shares with the Dat Phuc Construction Design Company Limited and the Thien Y Import Export Trading Packaging Company Limited. Thuduc House is drawing up a specific business plan for key projects. This year it will focus on an open sale of S-Home apartments in the Phuoc Long project (168 apartments), the Binh Chieu project Phase 2 (145 plots of housing land) and the TDH-Tocontap project (40 plots of housing land). Other projects will be sold in 2017, including Binh Chieu Lot I (405 apartments), Binh Chieu Lot H (218 apartments), TDH-Tocontap (223 apartments), and TDH - Phuc Thinh Duc (935 apartments). On that basis, Thuduc House sets revenue plans for the 2016-2018 period that correspond to the time of deployment and delivery of each project. Revenues from condominiums are to be about $12 million, $34 million and $44 million in the three years while sales of housing land are expected to reach $16 million in 2016 and nearly $2 million in 2017. It estimates total revenue for 2016 to be more than $28 million, $36 million in 2017, and $44 million by 2018. Thuduc House so far has implemented more than 40 projects around the country, developing urban towns, row houses, and apartment blocks for both low and high-income earners. The company has also developed commercial centers, wholesale markets, hotels, resorts, and office buildings and launched affordable apartment projects in District 9 and Thu Duc district in Ho Chi Minh City. Masan announces 50% share bonus and 30% cash dividend Group now seeking approval from shareholders on plan to issue bonus shares and pay cash dividend. by Quynh Nguyen The Masan Group has sought approval from shareholders regarding its plan to pay a 50 per cent share bonus and a 30 per cent cash dividend of VND3,000 ($0.13) per share. The Board of Directors has already approved the share bonus and cash dividend as a result of the company achieving key strategic milestones across all business segments and outperforming its financial targets. This is the first time Masan has given a cash dividend to shareholders since listing on the Ho Chi Minh Stock Exchange in 2009. “During this period, Masan’s first wave of foreign investors have realized their returns,” said Mr. Nguyen Dang Quang, Chairman of the Masan Group. “With the company’s plans for a share bonus and cash dividend, shareholders who have demonstrated the most belief in our story and value can now share in the company’s success.” Masan is also seeking approval from its shareholders to issue 12 million shares via private placement at VND95,000 ($4.2) per share as well as, when markets are favorable, international bonds listed overseas. In terms of sequencing, the issuance of 12 million primary shares will occur first, followed by the share bonus and cash dividend simultaneously. The cash dividend of VND3,000 ($0.13) per share is applicable to the number of shares immediately prior to the bonus shares. The proposed cash dividend and share bonus are expected to close in the first quarter of 2017. Masan’s fundraising initiatives are subject to market conditions and their alignment with the company’s overall strategic investment plans. All are subject to customary regulatory and shareholder approvals. Masan is expected to record revenue of $2 billion this year, an increase of around 40 per cent against 2015. Net profits after tax and non-controlling interest are on track to reach the company’s revised target of VND2.4 trillion ($105.6 million), representing growth of more than 60 per cent over 2015. As a result, Masan’s 2016 EBITDA (earnings before interest, taxes, depreciation and amortization) is expected to reach VND9.5 trillion ($418 million). Its fast-moving consumer goods (FMCG) arm, Masan Consumer, is completing a final list of shareholders to prepare to trade on the Unlisted Public Company (UPCoM) market on the Hanoi Stock Exchange. Masan Consumer is one of the largest enterprises in Vietnam’s FMCG field, with revenue coming from fish sauce, soy sauce, and chili sauce branded Chin-su, Nam Ngu, and Tam Thai Tu, instant noodles such as Omachi and KoKomi, and non-alcoholic beverages such as Vinh Hao, Vinacafe Bien Hoa, and Quang Ninh mineral water. Revenue in the first nine months was VND9.1 trillion ($409.5 million), up 6 per cent year-on-year, while after-tax profit fell 4 per cent to VND1.68 trillion ($75.6 million). The Masan Group recently announced revenues in the third quarter of VND11 trillion ($495 million) and gross profit of VND3.2 trillion ($144 million), both up 26 per cent year-on-year. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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South Korean goods weaving their way through Vietnam’s market Following an invasion of South Korean barbecue restaurants, Korean food products have been entering the Vietnamese market through retail channels.  Wrapped in beautiful carton boxes, the pears imported from South Korea are sold at VND250,000 per kilo, affordable only to high-income earners. However, the products still sell very well in large cities. Nguyen Thi Van from Trung Van residential quarter in Hanoi said she likes the goods because she admires South Korean culture and believes Korean goods have high quality. “Japanese goods are the best, but South Korean goods are also okay, while the prices are better than other imports,” she explained. Van said she and the other housewives in the residential quarter now use more products from South Korea. In the past, she bought ginseng, but now, she buys everything, from instant noodles to cosmetics to electric cookers. There are many consumers like Van. Only a few shops distributed South Korean goods in Trung Hoa – Nhan Chinh and My Dinh urban areas in the past, but now there are far more. Thu Hong, a saleswoman at a convenience store in Ha Dong district, said young people like South Korean noodles very much.
“They like watching South Korean dramas and they want to try some kinds of South Korean noodles,” Hong said, adding that South Korean goods, together with Japanese and Thai goods, offer more choices to consumers, especially young consumers in urban areas. An analyst said that South Korean manufacturers were shifting their focus from the Chinese market to Vietnamese. The Shinsegae Group has put its first Emart supermarket in Vietnam into operation with the investment capital of $60 million. Lotte has been expanding its operation and presence in Vietnam, having spent $650 million to open 12 supermarkets in Vietnam, of which Lotte Mart Go Vap alone is capitalized at $45 million. At Vietfood & Beverage-ProPack, 33 out of 180 enterprises displaying their products there were from South Korea. South Korea was one of the countries with highest numbers of enterprises participating in the trade fair. They brought a wide range of products to introduce to Vietnamese consumers, from high-value products such as ginseng and lingzhi mushroom to sweets, soap, drinks and dairy products. South Korean businesses are attracted by the 90 million Vietnamese consumers and the improved income per capita, which increased by 6.81 percent in the third quarter of 2015. According to Le An Hai, deputy director of the Ministry of Industry and Trade’s Asia Pacific Department, the food and beverage industries have big development potential in Vietnam. Bao Han, VNN |
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Bình Dương continues to be magnet for South Korean investors
HCM CITY – With its sound and dynamic investment environment, the southern province of Bình Dương has remained the choice of many investors from all over the world. The province reported on Wednesday that it has so far attracted more than 2,800 projects from 59 countries and territories worth US$25.6 billion. Trần Thanh Liêm, chairman of its People’s Committee, said a lot of effort has been made to improve the investment environment and infrastructure, and so the province has become an ideal destination for companies. South Korea is the third biggest investor with nearly 600 projects valued at nearly $2.4 billion. Its investments continue to surge with Kolon Industries Inc Group announcing plans to set up operations. On Wednesday the company signed a memorandum of understanding with the People’s Committee for building a large plant that will manufacture tyre cord, air bags and other automobile parts in the province’s Bàu Bàng Industrial Park. It also signed a contract to lease 42ha with Becamex IDC Corporation, the IP owner, on the same day. According to the MoU with the province, the company will invest over $600 million by 2026 in two phases. Park Dong Moon, CEO of Kolon Industries, revealed that his company ad scoured Southeast Asia for two months before settling on Bàu Bàng. It will be the third plant in the IP to produce automobile tyre cord after two others owned by Chinese and South Korean companies. Park said the plant would have a capacity of 6,000 tonnes per month and be his company’s largest plant anywhere. It would help the company achieve its goal of becoming the biggest tyre cord maker globally, he said. The plant will go on stream in the middle of 2018 and its products will be exported to many countries. Kolon Industries has interests in many industries including garments, construction and trading. In Việt Nam the company has a car air bag plant in Bình Dương it set up at a cost of $15 million. It is now running above capacity and will be expanded. |
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Project supports youth strategy’s implementation Illustrative image (Source: VNA) HCM City -The Ministry of Home Affairs and the UN Population Fund (UNFPA) in Vietnam held a conference on November 24 in Ho Chi Minh City to review a project to enhance Vietnam’s capacity in implementing youth strategy from 2011 to 2020. The project was launched across the country in 2012 with the support of the UNFPA in Vietnam. Its general objective is aid the implementation of Vietnam’s youth strategy for 2011-2020 through interdisciplinary coordination and encouraging policies and getting youngsters engaged in providing other youths with information on sexual health. Vu Dang Minh, head of the Department of Youth Affairs under the Ministry of Home Affairs, said that the project has helped devise policies for youths and encouraged them to get involved in building policies and programmes for youths. The project’s activities have resulted in an improvement in capacity of the youth in the work, he said. However, he also pointed to a number of difficulties in youngsters’ access to health care, education and employment. He proposed that the project prioritise the comprehensive development of the youth and their access to health care, as well as gender inequality. All activities should leave no one behind, especially vulnerable groups, said Minh. The Ministry of Home Affairs also suggested future cooperation plans, focusing on the building of a database on youths to serve policy-making. It is necessary to revise the 2005 Youth Law and build policies and programmes for the youth in line with requirement of integration period, according to the ministry.-VNA |
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Vietnam sends condolences to Cuba over passing of revolutionary icon Fidel Castro  Fidel Castro speaks during a visit to Luanda, Angola in March 1984.Reuters Vietnamese leaders sent their message of condolences to Cuba on Saturday over the death of revolutionary icon Fidel Castro one day earlier. “The Vietnamese leaders and people are deeply mournful and moved to learn that comrade Fidel Castro, former First Secretary of the Communist Party of Cuba Central Committee, former Chairman of the State Council and Council of Ministers, a great leader of the Cuban people, and an unyielding communist and revolutionary leader of Latin American nations and the struggle movement for peace and national independence, freedom and socialism, passed away on November 25 [at the age of 90],” the message reads. Fidel Castro devoted all his life to Cuba’s revolutionary cause, toppling the dictatorial regime and bringing the Cuban people to the era of independence and freedom since January 1959, according to the message. The icon lifted Cuba out of poverty to become a typical example of education, healthcare, sports, culture, and biotechnology for other developing countries, it said. Reuters said, “his government improved the living conditions of the very poor, achieved health and literacy levels on a par with rich countries and rid Cuba of a powerful Mafia presence.” The new agency added that Fidel Castro also won friends by “sending tens of thousands of Cuban doctors abroad to treat the poor and bringing young people from developing countries to train them as physicians.” The Vietnamese message said that as a leader of Cuba’s revolution for more than half a century, Fidel Castro has always been a close comrade and brother of the Vietnamese leaders and people. He has always stood side by side with Vietnam during its past struggle for national independence and reunification as well as current national development, the message reads. The message continued, “Fidel’s immortal saying ‘For Vietnam, Cuba is willing to devote blood’ is always in the hearts of the Vietnamese people.” Cuba has lost an unyieding, brave, and seasoned leader while Vietnam has lost a very close and dear comrade and fellow fighter, the message said. “We believe that in this sorrowful moment, the Cuban communists and people will continue to unite under the leadership of the glorious Communist Party of Cuba Central Committee, headed by President Raul Castro, to fulfill the wishes of the late leader Fidel Castro, firmly safeguarding national independence and sovereignty as well as successfully building socialism in free and beautiful Cuba,” the message reads. TUOI TRE NEWS |
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