Thứ Bảy, 31 tháng 3, 2018

BUSINESS IN BRIEF ¼

No door for return of RON92 petrol
After RON92 petrol was replaced by E5 bio-fuel for about three months, several enterprises said that the consumption of E5 was lower than that of RON92 and petitioned the authorities to resume the use of RON92. However, experts and businesses have asserted that the use RON92 petrol should not be resumed.
Recently, Ho Chi Minh City One Member Limited Liability Oil and Gas Company (Saigon Petro) sent an official document to the Ministry of Industry and Trade and Ministry of Finance, saying that the consumption of E5 bio-fuel in the first two months of 2018 accounted for a very low proportion of the total petrol consumption of Saigon Petro, at over 30% of total petrol consumption, while the consumption of RON92 made up 65% of the total consumption.
In addition, the company said that many vehicles that require the petrol standards of E5 or RON92 have to switch to using RON95, with a higher price, which is a waste.
The company also recommended the reduction of the environmental protection tax on E5, as a basis for enterprises to lower E5 selling prices, thus stimulating the consumption of the product and avoiding the waste of social resources.
According to Saigon Petro, the consumption of E5 will remain low in the future despite the application of the aforementioned measures. Thus, the firm suggested the resumption of the use of RON92.
Economist Nguyen Tien Thoa, vice chairman and general secretary of the Vietnam Valuation Association, said that the government's policy on the use of types of petrol with less impact on the environment is the correct direction towards contributing to protecting the environment. Therefore, RON92 petrol should not be put into use again.
Agreeing with Thoa, Nguyen Hong Minh, General Secretary of the Hanoi Transport Association and General Director of Nguyen Minh Taxi Company, said that Vietnam has deeply integrated into the world and must comply with international regulations. The general trend in the world is to use environmentally friendly fuels. Thus, RON92 should not be used anymore as it contains a large percentage of lead, creating negative effects on the environment.
Experts said that more comprehensive measures are needed to boost the consumption of E5 bio-fuel.
Thoa noted that tax reduction is one of the solutions to create a price gap between the two types of petrol, thereby motivating consumers to use E5. However, stimulating the use of E5 should not be based on tax reductions but must come from the supply of ethanol as the raw material for bio-fuel blending as there is only one ethanol producer supplying the raw material for the domestic market.
In addition, the government should develop appropriate policies to create the price gap between E5 and RON92 in the first phase of the E5 launch to promote the consumption of E5, Thoa suggested.
In particular, it must be proven in practice that the use of E5 is safe with engines and reduces greenhouse gas as a large number of consumers remain confused about the quality and safety of E5.
Minh said that the top priority should be given to ensuring the quality of E5 if the authorities wish consumers to choose E5. "If E5 bio-fuel has good quality while protecting the environment, consumers will not refuse to use E5. Otherwise, if the quality is not guaranteed, lowered prices will not stimulate consumers to use the product,” Minh said.
At the regular Government meeting in February 2018, Deputy Minister of Industry and Trade Do Thang Hai said that E5 bio-fuel, which replaced RON92 petrol, has been sold nationwide from January 1 this year according to the roadmap approved by the Prime Minister. According to reports by petrol wholesalers and Departments of Industry and Trade across the country, the amount of E5 consumption has increased quickly.
The Hanoi Department of Industry and Trade reported that the total petrol consumption in Hanoi was about 110,000 m3 by the end of January 2018, including 53% of E5 and 47% of RON95 petrol. According to reports of petrol wholesalers and distributers in the city, after a month of switching from RON92 to E5 bio-fuel, consumers have gradually accepted the use of E5 and made a good evaluation of the product.
Regarding businesses who want to stop selling E5, Deputy Minister Do Thang Hai affirmed that the right to do business is the right of the enterprises themselves. Meanwhile, the Ministry of Industry and Trade will coordinate with the Departments of Industry and Trade across the country to solve any difficulties for enterprises and facilitate them in the trading of petrol, Hai noted.
More optimistic outlook for Vietnamese economy in 2018

 Vnese vegetables & fruits to China to be traced origin from April 1, More optimistic outlook for Vietnamese economy in 2018, Foreign investment in Vietnam plunges in Q1, Private investors encouraged to join TSN airport expansion project 

 On the basis of the economic growth trend in 2017, almost all experts expressed their positive viewpoints on an advantageous year for the business circle at the end of Q1. 
According to the Viet Nam Economic Seminar which was held on March 19 in HCMC, Viet Nam was forecast to benefit from positive influences from the outside world. 
In Asia, Japan is one of the leading economies that rebounded in the two consecutive years after nearly two decades of recession. The concern over “hard landing” in China has yet caused much trouble. 
The EU has escaped from the ‘hardest’ period of time. Similarly, the U.S. economy witnessed a series of policy amendments which encourage and support the business community. 
Meanwhile, labor costs in emerging economies including Viet Nam remain low. 
The aforesaid factors were projected to influence other economies especially Viet Nam which has deeply integrated into the global economy. 
Dr. Vu Vien Ngoan, Head of the PM’s Economic Advisory Group was quoted as saying that in Viet Nam, business confidence has been improved. Macro-balances were forecast at stable level in 2018. However, inflation would surge but within control. 
Experts discuss ways to promote herbal medicine
Experts and scientists discussed ways to promote the herbal medicine industry in Việt Nam as at a workshop on March 28 in Hà Nội.
Prof. Trần Văn Ơn, head of the phytological speciality of the Hà Nội University of Pharmacy, said that local herbal materials haven’t met the expected potential; it could not even compete with imported materials and products right in the market of Việt Nam.  
“We now see the source of herbal material as a mine and we will continue digging until it is exhausted. That is the current situation of the pharmaceutical material industry in Việt Nam,” Prof. Ơn said.
He added that the pharmaceutical material source has been exploited rampantly for export in many provinces and regions. This situation will lead to the exhaustion of natural sources in Việt Nam.  
“We have only seen herbal plants as drug materials. It means that we have already missed a lot of chances to diversify many products that can be developed from our herbal plants, especially a chance to connect the development of herbal materials with tourism. From that we could participate in a huge market of no-smoke industry worth billions of US dollars,” Ơn said.
“It’s time to revise the way we see the local pharmaceutical materials,” Ơn stressed.
The director of the Quảng Ninh Health Department, Vũ Tuấn Cường, said that herbal medicines and health care products manufactured from herbs have gained a lot of competitive advantages in the current context of globalisation, global integration and severe competition due to Việt Nam’s favourable natural conditions and biodiversity.
“The herbal medicine sector should choose three to five local herbal plants as key products in order to promote the development of medicine and international integration. South Korea, for example, has focused on two plants, Ginseng and Lingzhi, which can bring billions of dollars in export yearly,” Cường said.
Therefore, we need to promote the value of good plants such as Ngọc Linh ginseng, Ba Kích (Morinda officinalis How) and apply advanced technologies for the development of herbal medicines from the selection of seedling to product underwriting and distribution following value chain.
Nguyễn Huy Văn, deputy general director of Traphaco JSC, said that Việt Nam has around 4,000 herbal remedies, so it is necessary to focus on exploiting those sources of knowledge.
In the current trend, traditional medicine is not only limited to traditional methods of herbal medicine production but also the application of advanced science and technology from product development and plant care to harvest, processing and packaging, according to Văn.
Prof. Ơn said that a herb development system in the community of the university’s Department of Plant, in collaboration with the DK Pharma JSC, has formed a good business model and efficient value chain over the past 15 years.
That is a model of medicinal garden combined with tourism development. Two medicinal gardens were established in Yên Tử (Quảng Ninh Province) and Bái Đính (Ninh Binh Province). A medicinal garden was proposed to be built in Quản Bạ District, Hà Giang Province.
Standard Chartered credit card named "Best Affluent Program in Vietnam"
Standard Chartered Bank Vietnam’s WorldMiles Credit Card has recently been named “Best Affluent Program in Vietnam” by MasterCard, recognizing the exclusive benefits and privileges cardholders enjoy across lifestyle categories.
“We always strive to ensure that our credit cardholders enjoy exclusive and bespoke benefits when they spend and travel,” said Mr. Harmander Mahal, Head of Retail Banking at Standard Chartered Bank Vietnam. “Clients sit at the heart of what we do, and we are constantly innovating to deliver a richer and differentiated banking experience.”
Launched in Vietnam in 2016 and targeting affluent frequent travelers, the WorldMiles Credit Card offers a host of superior travel and lifestyle benefits. The card is the first in Vietnam to offer total travel care worth up to $965,000 and the first to allow cardholders access to over 800 airport lounges worldwide using the Dragon pass app on their smartphone, without needing to present a physical lounge card. 
Cardholders are also entitled to enjoy complimentary green fees at the top six golf clubs in Vietnam, with the option of booking tee-off times using the bank’s mobile app “The Good Life” under the Concierge function. They can also use The Good Life to find the nearest offers among 3,500 outlets when they travel around Asia, with discounts of up to 50 per cent. For every $1.1 spent on the credit card, holders will receive up to 3 travel points, which can be redeemed for dining, hotels and resorts, airport services, and luxury experiences.
Standard Chartered Bank Vietnam was named ‘Best Foreign Bank in Vietnam” for three consecutive years, by the Global Banking & Finance Review in 2014 and 2015 and by Global Business Outlook in 2016.
CBRE appointed manager of VTC Building
CBRE Vietnam has been selected by VTC Television to be the exclusive property management consulting agent for its VTC Building.
Located at 23 Lac Trung in Hanoi’s Hai Ba Trung district, the office tower has 19 floors and sits on an area of 6,786 sq m and a total construction area of 40,727 sq m.
The developer has demonstrated its trust in CBRE and its professional, experienced and capable property management team. CBRE commits to delivering its quality management services to all users of the building.
“CBRE has been in Vietnam for 15 years and property management has always been a core part of our business in Hanoi,” said Mr. Richard Colville, Director of CBRE Asset Services. “We are excited to win the opportunity to work on new projects, so when I visited the VTC Building recently I was immediately impressed by the energy and dynamism of the client.”
“When the client informed me that they had selected us to manage their property, I promised that we would do our best onsite to deliver a smooth and efficient operation that supports the needs of VTC as well as using our hospitality experience to implement a responsive and helpful customer service standard onsite. I look forward to seeing it enter full operations with CBRE.”
With a location near Hanoi’s main arteries and facilities such as banks, hospitals, food courts, and shopping malls, the VTC Building will provide a pleasant environment for tenants to work and develop their business.
eFounders Initiative for Asian entrepreneurs kicks off
The United Nations Conference on Trade and Development (UNCTAD) and the Alibaba Business School enrolled the first class of 37 Asian entrepreneurs for the eFounders Initiative at an opening ceremony on March 26 at the Alibaba campus in Hangzhou, China.
The eleven-day course is part of a commitment by Jack Ma, Alibaba Group’s founder and Executive Chairman and UNCTAD Special Adviser, to empower 1,000 entrepreneurs from developing countries over five years.
The launch of the first program for Asian entrepreneurs comes after the success of the inaugural class for 24 African participants last November.
Following a rigorous selection process, the final candidates from Cambodia, Indonesia, Malaysia, Pakistan, the Philippines, Thailand and Vietnam will embark on an eleven-day intensive course providing first-hand exposure to e-commerce innovations from China and around the world and will become eFounders Fellows.
Eventually these young entrepreneurs will become catalysts in their home country and spur digital transformation in their economies.
“We want to reach out to youth and include them in the work we do for inclusive and sustainable economic growth,” said Arlette Verploegh, Coordinator for the eFounders Initiative at UNCTAD. “The initiative is about bridging the digital divide for young entrepreneurs and unlocking their potential. It is part of a set of smart partnerships UNCTAD is creating to reach the sustainable development goals.”
All participants are founders of their respective startups, in e-commerce, big data, logistics, fintech, payments, and tourism.
“We are excited to extend this fellowship to entrepreneurs from Asia for the very first time as part of our commitment to empowering digital champions and communities around the world,” said Brian A. Wong, Vice President of Alibaba Group, who heads the Global Initiatives program.
“Our goal is to inspire entrepreneurs to serve as pioneers in building a more inclusive development model that is not just good for their business but also good for society, by creating platforms that all can participate in and benefit from.”
Under the auspices of the 2030 Agenda for Sustainable Development, the initiative is aligned with the wider call to action to ensure that no one is left behind in the digital economy and to help bridge the digital divide faced by businesses in emerging markets.
Jointly organized by UNCTAD and the Alibaba Business School, the eFounders Initiative also supports Alibaba’s mission to help small businesses succeed in their home markets and beyond. It was first announced in 2017 by Jack Ma in his capacity as the UNCTAD Special Adviser for Young Entrepreneurs and Small Business when he, together with Dr. Mukhisa Kituyi, Secretary-General of UNCTAD, visited Africa.
Participants in the eFounders Initiative will learn first-hand the transformative impact e-commerce and technology have on society in China and participate in lectures and discussions with local practitioners and executives to identify the lessons that can be applied to their own markets. Topics covered will include e-commerce, payment, logistics, big data and tourism from the Alibaba Group and other successful companies in the e-commerce value chain, with sessions touching on digital finance, smart logistics, and rural e-commerce development, among others.
Upon graduation, participants will officially become Fellows of the eFounders Initiative and make formal commitments on how they will apply the learning from this program. As part of the wider eFounders Initiative community of promising young entrepreneurs around the world, UNCTAD and the Alibaba Group will also continue to advise on and provide support for the creation of e-commerce ecosystems with other stakeholders.
The first class of eFounders Fellows - 24 entrepreneurs from Africa - completed the program in November 2017 after a similar two-week intensive workshop in Hangzhou.
To continue the impact of the initiative, UNCTAD and Alibaba have already completed a full round of follow-up meetings with the fellows, each of whom are actively applying what they learned in their own enterprises as well as sharing insights with their home communities. They are working towards achieving their commitments and will continue to check in with UNCTAD and Alibaba every three months.
Vinamilk opens high-tech dairy farm in Thanh Hoa
The Vietnam Dairy Products Joint Stock Company (Vinamilk) inaugurated a high-tech dairy farm in Thanh Hoa province on March 28.
Covering a total area of 40 hectares in Thong Nhat town, Yen Dinh district, the facility was built with an investment of VND700 billion (US$30.5 million).
With a designed milking cow population of 4,000, the farm was granted a GLOBAL G.A.P. (Good Agricultural Practice) Certification in recognition of its farm management, raw milk quality, and application of state-of-the-art technology.
The farm is the first of its kind to be built in the Vinamilk Thanh Hoa dairy farm complex, which is designed to have four high-tech farms with a combined milk supply of 110 million litres per annum by 2020.
Speaking at the event, Vinamilk CEO Mai Kieu Lien said that the inauguration of the farm aimed to help Vinamilk to achieve its business goals, while contributing to boosting the development of the dairy industry in Thanh Hoa and Vietnam in general.
On the occasion, Vinamilk presented milk packs worth VND400 million (US$ 17,400) to poor children in Thanh Hoa province, with the aim of improving physical development and healthy growth in local children.
Vietnamese farmers offered financial support to expand sustainable production
Vietnamese smallholder farmers will be provided with financial support from a new US$163 million deal, recently signed between the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA).
With the aim of improving inclusive and sustainable agricultural value chains, the deal was reached by ADB and JICA on March 28 to provide loans for Olam International Limited (OIL) – an agribusiness operating across the value chain, and Café Outspan Vietnam Limited (COVL), a subsidiary of OIL.
OIL and COVL will directly offer support to 20,000 Vietnamese farmers, as well as those from Indonesia, Papua New Guinea and Timor-Leste, in expanding their production and improving livelihoods by promoting inclusive and sustainable development.
Accordingly, the Agricultural Value Chain Development Project will support OIL’s US$211 million investment plan until 2019 by financing an expansion in the firm’s processing of midstream products, while providing permanent working capital investments for smallholder farmers, particularly in coffee, cashew nut, cocoa and pepper cultivation in the aforementioned countries.
The assistance will also help OIL to develop processing plants to create a more seamless integration of farmers, markets, and customers, adding more value in local markets and improving agricultural value chains.
The project, which is ADB’s first non-sovereign assistance directly co-financed by JICA, includes US$3 million in technical assistance, partially financed by the Canadian Climate Fund for the Private Sector in Asia, to provide capacity building training to smallholder coffee farmers across the project countries. The technical assistance includes training in avoiding deforestation and increasing productivity through climate-smart agriculture practices, including water harvesting and soil management.
This loan agreement underpins the mutual aims of Olam, ADB, and JICA to support the economic prosperity of farmers, as well as helping them to become stewards of the environment, which is essential for the future of agricultural production, said Prakash Jhanwer, Regional Head for South East Asia at Olam International.
Private investors encouraged to join TSN airport expansion project
Private investors can participate in the Tan Son Nhat International Airport expansion project, the Government Office said in a statement making clear Deputy Prime Minister Trinh Dinh Dung’s view on the matter.
Due to different views on passenger and cargo transport growth, the capacity of the airport, the traffic system inside the airport, the connection to facilities outside the airport, and the feasibility and socio-economic effectiveness of the expansion project, Deputy PM Dung assigned ADP-I consulting firm to continue studying ways to expand the airport as per the Prime Minister’s direction.
ADP-I should consider inputs from relevant ministries and agencies, the HCMC government and Airport Design and Construction Consultancy One Member Limited Company (ADCC).
Deputy PM Dung also asked the consultant to make clear the basis for its estimates of air passengers and cargo.
The consultant will also have to come up with solutions to use Can Tho Airport in easing overload at Tan Son Nhat International Airport, meeting the demand for transporting passengers and cargo in HCMC and southern provinces.
Costs for the construction of items serving the airport expansion should be clarified as well.
The Government assigned the Ministry of Transport to coordinate with the Ministry of National Defense and relevant agencies to determine the land required to be taken back for the airport expansion project, of which land managed by the Ministry of National Defense can be used for air traffic development, and propose implementing the project in phases.
The Ministry of Transport needs to specify the investment for each phase and items which will be built in both the north and the south of the airport such as taxiways, aircraft parking slots and passenger and cargo terminals.
The ministry will propose investment models for each item, encourage the use of private resources for the project, promptly complete a plan for expanding the airport and submit it to the Prime Minister and the Government for approval this month.
Tan Son Nhat International Airport expansion solutions have caused numerous controversies among experts. There are still mixed views over whether to expand the airport towards the north or south wing.
Property startups lead in new capital pledges in first quarter
Real estate startups make up the largest proportion of newly registered capital, according to the Business Registration Agency under the Ministry of Planning and Investment.
These startups pledge around VND79.1 trillion (US$3.4 billion), accounting for 28.4% of the total in the first quarter of this year.
A report by the agency shows Vietnam has had more than 8,000 new market entrants with total registered capital of VND81.1 trillion this month. As such, the country has had over 26,700 startups capitalized at VND278.5 trillion in the first quarter, up 1.2% and 2.7% respectively compared with the same period last year.
Each new company has average capital of VND10.4 billion, up a slight 1.5% against the year-ago period. The number of their registered employees is down 22.7% year-on-year to around 225,400 people.
Startups in wholesale/retail, and repairs of automobiles and motorcycles account for 34.4% of the total in quarter one. The construction sector comes second with 13.4%, followed by the manufacturing and processing sector with 12.2%.
Notably, startups in the real estate sector make up the largest registered capital of about VND79.1 trillion (US$3.4 billion), 28.4% of the total.
New companies in the construction sector take second place with VND42.1 trillion (15.1%), followed by those in the sector of wholesale and retail, and repairs of automobiles and motorcycles with VND38.5 trillion (13.8%), and those in the manufacturing and processing sector with over VND28.9 trillion (10.4%).
More than 8,400 enterprises have returned to business in the first quarter after a period of interruption, an 8.9% decline against the year-ago period. This brings the total number of businesses that have been newly established and resumed business operations to over 35,200.
In the same period, over 12,200 companies have registered to suspend operations, a year-on-year rise of 22.9%.
Of these, the companies in the sector of wholesale and retail, and repairs of automobiles and motorcycles represent 38.7%, followed by the construction sector with 15.2%, the manufacturing and processing sector with 12.8%, and the transport and warehousing sector with 5.9%.
Wood exports seen growing but risks loom
Exports of wood and wooden products are projected to post strong growth and reach US$9 billion in all of 2018, but risks in key markets loom, heard a seminar of the wood industry in Hanoi on March 27.
Speaking at the seminar, To Xuan Phuc, senior policy analyst at Forest Trends, said last year’s wood and wooden products exports grew 12.6% against the previous year to nearly US$7.7 billion.
This was an impressive result, especially at a time when protectionism was emerging in some major markets, Phuc added.
In addition, the quality of export products improved. Exports of furniture under the HS 94 heading, the group with high added value, accounted for some 70% of the total export turnover last year, up from 63.5% in 2015 and 2016.
Last year also witnessed strong export growth in main markets, particularly the U.S., China, Japan and South Korea. The four markets made up 76% of Vietnam’s total export turnover, with the U.S. alone accounting for 40.2%. Growth of the U.S. market was recorded at 13.6%, contributing greatly to boosting the industry’s 2017 export performance.
According to participants at the seminar, though wood and wooden goods exports are faring well in terms of volume and quality, the industry may experience difficulties given possible policy changes in vital export markets, especially the Big Four.
Phuc said a global trade war had been looming since U.S. President Donald Trump announced to impose US$60 billion in new tariffs on Chinese imports. Which products are subject to the new tariffs of the U.S. are unknown for now.
However, if they include wooden products, Chinese wood processors might flock to Vietnam to set up shop, causing Vietnam’s exports to the U.S. to spike.
There are signs of Chinese investments in Vietnam’s wood industry increasing. Chinese companies will pay lower U.S. duties when they export their products from Vietnam.
The U.S. makes up around 20% of all goods exports of Vietnam. The country’s wood processing sector has a trade surplus of over US$2 billion with America. If Chinese investment in the local wood processing industry is not well managed, Vietnam might face U.S. anti-dumping probes.
“This requires the industry and authorities to make necessary preparations,” Phuc noted.
There are also risks in the Chinese, South Korean and Japanese markets.
The Chinese market is open to Vietnam’s wooden products, bringing the sector an annual trade surplus of US$600 million. China is considering a stepwise approach to controlling the legality of wood used in its land. 
As for Japan, this country started to implement the Clean Wood Act last May and is issuing documents guiding the implementation the act. Meanwhile, the South Korean government has the Act on the Sustainable Use of Timbers.
The enforcement of those acts may entail measures to tighten timber imports of such markets, affecting Vietnam’s exports in the coming time.
Foreign investment in Vietnam plunges in Q1
New foreign investment approvals in Vietnam have reached US$5.8 billion in the first quarter of the year, down 24.8% year-on-year, according to the latest report by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
As of March 20, 618 foreign direct investment (FDI) projects had got investment certificates with total registered capital of US$2.12 billion, down 27.3% over the year-ago period. Besides, FDI investors had registered an additional US$1.79 billion for 200 operational projects in Vietnam, falling 54.6% against the same period last year.
In addition, foreign investors have acquired local company shares worth US$1.89 billion in nearly 1,300 transactions, surging 121.6% year-on-year. Of which, there have been 732 transactions valued at US$1.34 billion that raise local companies’ chartered capital and 553 others with a total investment of US$547.8 million that keep domestic firms’ chartered capital unchanged.
However, the higher number of projects whose shares have been bought by foreign investors has not led to an increase in committed foreign investments in Vietnam.
According to FIA, companies from 76 countries and territories have invested in the country in the first quarter of the year. South Korea takes the lead with US$1.84 billion, accounting for 31.6% of the total, followed by Hong Kong with some US$689 million and Singapore with US$649 million, making up 11.9% and 11.2% respectively.
Japanese investors, who used to inject a huge amount of capital in Vietnam, have not been listed in the top three countries with the most investment in Vietnam in January-March.
International firms have invested in 17 sectors and the processing and manufacturing sector has attracted the largest investment of US$3.44 billion, representing 59.4% of the total. The wholesale and retail sector comes second with US$531 million and the real estate sector third with US$486 million, accounting for a mere 9.2% and 8.4% respectively.
FIA estimated that US$3.88 billion has been disbursed for FDI projects, growing 7.2% versus the same period last year.
As for locations of FDI projects, foreign investors have registered to implement projects in 49 cities and provinces nationwide in the first three months of this year. HCMC has attracted a combined US$1.7 billion, making up 29.3% of the total, followed by Haiphong City with US$925 million and Binh Duong Province with US$565 million, representing around 16% and 9.7% respectively.
VNDirect to launch covered warrants
VNDirect Securities Corporation and some other securities firms plan to launch covered warrants (CWs) on the domestic stock market this quarter, having secured permission from the State Securities Commission of Vietnam.
VNDirect’s customers and investors can learn about CWs and seek opportunities to invest in CWs together with blue chips at seminars to be held by VNDirect in Hanoi and HCMC this Saturday.
VNDirect securities experts will analyze opportunities to invest in CWs of Hoa Phat Group and FPT Group.
VNDirect had earlier proposed the State Securities Commission approve its plan to launch CWs. According to stock exchanges, investors have great expectations of CWs with great advantages and risk management capability at a time of stock market volatility.
CW is expected to prevent risks for investors and diversify securities options with lower investment than traditional securities.
Vnese vegetables & fruits to China to be traced origin from April 1
The Ministry of Industry and Trade of Vietnam and the Asia-Africa Market Department yesterday sent information to exporters of vegetables, fruits and agricultural products of Vietnam to China relating to comply with the labeling regulations on product origin.
The Asia-Africa Market Department and the Ministry of Industry and Trade of Vietnam received information from Chinese fruit importers from Vietnam, on traceability requirements of the Guangxi management agency for fruit export from Vietnam to China through the import borders of fruits in Guangxi.
Accordingly, Chinese enterprises importing fruits from Vietnam need to provide pictures and product quality traceability information from April 1 when they apply the procedures for imported animal and plant quarantine permits at the inspecting and quarantining importing agency in Guangxi.
The product information includes name of fruit products, the origin, name or packing code in Chinese or English. 
Businesses can add labels to supplement the information mentioned above and add the bar code, QR code or anti-counterfeit stamps.
Domestic cement consumption down, export market bright
Domestic cement consumption fell in March, while cement exports had growth against the same period last year, according to the Ministry of Construction.
Total cement consumption at home and abroad reached 7.96 million tonnes in March, a month-on-month increase of 340,000 tonnes but the same volume year-on-year, according to the ministry’s building material department.
In March, cement consumption in the domestic market stood at 5.56 million tonnes, a reduction of 11 per cent year-on-year. Meanwhile, the export volume was 2.4 million tonnes, marking a growth of 30 per cent year-on-year.
Experts attributed the difference in consumption between the two markets to lower domestic demand after Tet (Vietnamese Lunar New Year) and higher demand in China, where cement production has temporarily stopped.
The department said in the first quarter of this year, total cement consumption at home and abroad was expected to reach 20.97 million tonnes, 15 percent higher than the same period last year. Of this, export volume in the first quarter stood at 7.51 million tonnes, a year-on-year surge of 28 percent.
Seminar updates trade opportunities in Israel

A seminar was held in Hanoi on March 29 to provide Vietnamese firms with the latest information about trade development opportunities in Israel.

Deputy head of the Trade Promotion Agency under Vietnam’s Ministry of Industry and Trade Le Hoang Tai said Vietnam and Israel have set up cooperation in wide-ranging fields since they established diplomatic ties in 1993.

Two-way trade surpassed 1 billion USD in 2017 with Vietnam’s exports to Israel worth over 700 million USD, he cited.

As of 2017, Israel ran 26 direct investment projects in Vietnam with total capital of over 47 million USD, ranking 11th among the 56 countries and territories investing in the Southeast Asian country.

Notably, the processing and manufacturing industries attracted seven foreign direct investment (FDI) projects worth more than 25 million USD.

Israel has pledged to provide a credit package of 250 million USD for Vietnamese businesses in the coming time, he added.

Deputy head of the Ministry of Industry and Trade’s Department of Asia-Africa Market Le Thai Hoa said Israel has a developing economy with hi-tech industries playing the crucial role.

He hoped Israel will promote technological transfer to Vietnam to develop the economy.

Israel is one of the countries with hi-tech agriculture development, he said, adding that Vietnam could become a potential market for Israeli businesses in manufacturing and creating state-of-the-art farming equipment.

Vietnam is able to export farm produce like rice, coffee, tea, pepper, and timber products, as well as garments and footwear to the country.

He suggested Vietnamese enterprises actively participate in trade fairs and coordinate with relevant agencies to promote their products.

HCM City’s CPI falls 0.3 percent in March

The consumer price index (CPI) of Ho Chi Minh City in March fell 0.3 percent from the previous month, but rose 2.2 percent compared to the same period last year, reported the municipal Statistics Office on March 29.

According to the office, the prices of six out of 11 goods groups saw a month-on-month decline, with the largest fall of 0.68 percent recorded in transport.

It was followed by housing, electricity, fuel, and construction materials, by 0.53 percent; drinks and cigarette by 0.5 percent; culture, recreation and tourism by 0.27 percent.

A drop of 0.3 percent was also recorded in restaurant services, while the prices of commodities and other services fell by 0.22 percent.

Meanwhile, the prices of equipment and household drinks climbed 0.21 percent; medicines and healthcare services rose 0.05 percent; apparels, hats and footwear were up 0.09 percent in the month.

The prices of post and telecommunication and education remained unchanged, the office said.

Earlier, Hanoi announced that its March CPI declined 0.22 percent over the previous month but increased 2.7 percent over the same period last year.

Major reason for the drop is a reduction in prices of three goods groups - food and catering services; housing, electricity, fuel and construction materials; and transportation.

The average index in the first three months of this year rose 2.54 percent over the same period last year. An upturn was seen in 10 groups of goods and the only one experienced a fall.

Vietnamese goods leave impression at auto fair in Bangladesh

Vietnamese products made strong impression on visitors at the Dhaka Motor Show 2018, which took place recently in Dhaka capital city of Bangladesh.

The fair, one of the largest international automobile events in Bangladesh, featured more than 600 booths of businesses from France, Italy, the US, Japan, the Republic of Korea, China, the United Arab Emirates, India, Vietnam and host Bangladesh.

At the event, the Vietnam Engine and Agricultural Machinery (VEAM) introduced 2.5-tonne lorry and agricultural machines such as two-wheeled tractor, water pump, diesel engine and gearbox. The Vietnamese booth attracted over 200 visitors during the March 22-24 event.

This was the second time that the VEAM had participated in the fair, marking its cooperation with Bangladesh’s Krishibid Group.

The cooperation is part of a Memorandum of Understanding on machinery manufacturing signed between industry ministries of the two countries during the State visit of President Tran Dai Quang to Bangladesh on March 4-6.

Prudential, Vietbank establish bancassurance partnership
   
Prudential Vietnam Assurance Private Ltd. (Prudential) and Vietnam Thương Tín Commercial Joint-Stock Bank (Vietbank) on March 28 signed a bancassurance partnership deal to distribute Prudential’s life insurance products to Vietbank’s customers in Viet Nam.

Under the partnership, Vietbank will distribute Prudential’s range of protection, savings and investment-linked solutions through its bank branches across the country.

The partnership will focus on meeting the evolving needs of Vietnamese customers, including those related to education, critical illness, and wealth accumulation.

Through the cross-selling of products, Vietbank customers will not only be offered banking products and services such as deposits and loans, but will also be able to seek advice on life insurance products and their benefits.

Customers can apply for a policy, pay their premiums, and submit their insurance claims at Vietbank branches.

The holistic experience means Vietbank customers have easier access to insurance solutions as well as professional consultancy from experts.

As part of the partnership, Prudential and Vietbank will work to develop products and solutions integrated with both banking and insurance benefits, and develop platforms and distribution channels to reach more customers across the country.

Doosan Vina ships 3 cranes to India
   
Doosan Heavy Industries Vietnam Co Ltd (Doosan Vina) has recently shipped three rail-mounted quay cranes to India.

They are part of an order of 12 cranes requested by India-based Bharat Mumbai Container Terminals Private Limited, to deal with substantial throughput at its unit in the Jawaharlal Nehru Port (JNPT) in Mumbai. So far, a total of nine units have been exported to India.

The export is a key project of Doosan Vina, which has been prioritised for development by the Vietnamese Government.

The three rail-mounted quay cranes have a total weight of 4,440 tonnes. Each crane is 73.8m high, 143m long and 26m wide. Each one is designed to handle 75-tonne containers.

The last three cranes of the project are expected to be exported to India in September. Doosan Vina has so far exported 71 cranes to the world market, including PSA Port of Singapore, JNPT of India, Samarinda Port of Indonesia and several ports of Viet Nam.

ACV expected to earn US$789mn in revenue
   
Airports Corporation of Viet Nam (ACV) is expected to reach VND18.04 trillion (US$789.2 million) in accumulated revenue this year, marking an increase of 13 per cent compared to last year.

This was revealed in a report of Saigon Securities Inc (SSI) Retail Research.

The net profit could be VND6.45 trillion, up 26 per cent year on year, with an earning per share of VND2,815.

The report also said ACV could move from UPCoM to HCM City Stock Exchange in the third quarter of the year. The corporation will continue negotiations to transfer 20 per cent of stakes to a strategic partner.

The reduction of State ownership will help the corporation improve its efficiency and profitability.

The Ministry of Transport plans to reduce the ownership of ACV by 65 per cent
​​by 2020.

The report is optimistic about ACV’s international passenger growth in the first half of the year, which may see double-digit growth due to an increase in international arrivals to Viet Nam. In the first two months of 2018, international tourists to the country reached 2.9 million, up 30 per cent. Notably, foreign tourists coming to Viet Nam by air have increased by 26 per cent, according to data from the Vietnam National Administration of Tourism.

The Coffee House to open 1st foreign store this year
   
The Coffee House, a Vietnamese-owned café chain, on Thursday announced plans to open its first store outside Viet Nam this year.

Many markets are under company’s consideration, but the first should be China or Indonesia, the company said.

Vo Duy Phu, the company’s marketing director, explained the choice by saying the Chinese market is rather similar to the Vietnamese one.

Expanding abroad is a means for the company to achieve its target of taking Vietnamese coffee to the world.

The Coffee House on Thursday also announced that it has started brewing the Arabica coffee it began to plant in Viet Nam three years ago at all its stores.

It recently opened the first The Coffee House Signature outlet in HCM City’s District 1.

According to CEO Nguyen Hai Ninh, the company now has a 33ha farm in Da Lat with a capacity of around 200 tonnes per year.

The yield should be 250 tonnes this year and jump to 400 tonnes by 2019, he said.

In future the company plans to grow many high-quality Vietnamese and global coffee varieties, he said.

Coffee House grew strongly last year and now has a total of 80 stores nation-wide that serve over 40,000 customers a day.

Last November it opened six Ten Ren’s Tea stores under a franchise agreement.

Earlier this year the company acquired the coffee business of Cau Dat Farm.

CBRE executive wins UK award for women
   
Nguyen Hoai An, director of professional services at CBRE, Ha Noi, has won the Women of the Future Awards, South East Asia.

She was chosen from a shortlisted pool of five women professionals in the property and construction sectors.

She has an overview of research, consultancy, and valuation advisory, which includes overseeing feasibility studies as well as providing consultancy for development and property investments.

“ In addition to supporting young professional women, my vision is to help improve the quality of property product offerings in Viet Nam and pave the way for a more transparent property market.”

The awards, given away by the Royal Institution of Chartered Surveyors, were conferred outside the UK for the first time this year.

Talent shortages are more widespread in Asia than any other region, with more than 48 per cent of Asia-Pacific employers saying the shortage is posing difficulties in the hiring process.

Tapping under-utilised talent pools is crucial in easing this shortage and women represent an extremely large untapped resource.

The programme aims to encourage, motivate and provide role models to inspire and strengthen the female talent pipeline and in the process create a global community of supportive and collaborative women.
VNN
BUSINESS IN BRIEF 31/3

Danang Hi-Tech Park needs VND1.3 trillion

Danang Hi-Tech Park needs VND1.3 trillion, VinCommerce to  sbeplit soon, Retail sales, services revenue sees year-on-year rise of 11.05 percent, Many foreign projects increase capital in Q1 

Danang City is promoting investments into housing, training and service facilities in Danang Hi-Tech Park (DHTP) worth a combined VND1.268 trillion, according to the Danang Investment Promotion Agency.
Director of the agency Le Canh Duong on March 26 said local and foreign firms could choose to invest through public-private partnerships (PPP), which include build-operate-transfer (BOT).
In addition to seeking capital for these facilities, DHTP also wants to attract investors to a research and development center to assist operations of enterprises there. Such projects can be financed by official development assistance (ODA) capital, according to Doan Ngoc Hung Anh, deputy head of the DHTP management board.
In particular, the housing development project comprises villas, adjoining houses and condominiums with an investment estimated at VND842 billion. It aims to provide quality accommodation for employees, experts and scientists working at DHTP. Meanwhile, service facilities that will go up need some VND316 billion.
As for the training center project, an estimated VND110 billion will be needed to train and develop human resources.
According to Satoru Takizawa, chairman of the Japanese Business Association in Danang, one major weakness of the city is its human resources have not met requirements of Japanese hi-tech firms. Therefore, it is crucial to invest in personnel training. 
VinCommerce to  sbeplit soon
Vingroup JSC will split VinCommerce into two separate retail units called VinCommerce and VinPro, the board chairman of Vingroup said last week in an announcement sent to the stock exchange.
In the document posted at the website of the State Securities Commission of Vietnam and the Hochiminh Stock Exchange, Vingroup said that following the split, VinPro would be in charge of electronics stores while VinCommerce will operate other retail store chains.
VinPro will be established with chartered capital of VND500 billion, of which Vingroup owns 42.63%, or nearly a 21.3 million shares transferred from VinCommerce.
Prior to the separation, VinCommerce had been operating electronics chain VinPro, the supermarket chain VinMart, the convenience store chain VinMart+ and the e-commerce website https://www.adayroi.com.
The VinPro retail chain currently has 33 supermarkets nationwide while VinMart has 65 stores and VinMart+ owns some 1,000 stores.
TAEL to pour more investment into Vietnam
Fund manager The Asia Entrepreneur Legacy (TAEL) expects to disburse US$150 million more into Vietnam, having already invested as much as US$175 million in this market over the past two years, news website Dau Tu reports.
TAEL has just convened an investors meeting in HCMC, gathering representatives of investment funds and government funds in the region. The fund manager highly values opportunities in Vietnam, and has invested a quarter of its portfolio capital in the local market in the last two years, said Michael Sng, partner of TAEL.
Its investments focused on high-growth enterprises in areas like healthcare, education, consumer goods and logistics, which are the priorities of the city.
Its fund TAEL Two has since 2013 invested US$175 million in eight companies, six of which operate in above-stated fields, namely Cotec Healthcare, Institution of American Education, Pan Pacific Corporation, GTNFoods JSC, Vinasun Corporation, and Vietnam Trade Alliance.
The Singapore-based fund was founded in 2007 with representative offices in Malaysia, Indonesia, Thailand, the Philippines and Vietnam. The firm specializes in growth oriented investment with the minor but significant stakes in family-controlled companies.
The ASEAN-focused private equity fund is now managing US$1 billion, specializing in institutional investors, State-owned funds, as well as equity funds from ASEAN, North America and the Middle East.
Retail sales, services revenue sees year-on-year rise of 11.05 percent
Retail sale and consumer service revenue in March amounted to VND85,248 billion ($3.7 million), an increase of 3.33 percent compared to February, reported The Department of Industry and Trade in Ho Chi Minh City. 
It was estimated that in the first three months of the year, total revenue of retail sale and service reached VND254,491 billion, finishing 24.7 percent of the plan for 2018, a year-on year rise of 11.05 percent.
Of which, retail turnover wass estimated VND165.429 billion, an increase of 10,97 percent compared to the same period last year.
As per the Department’s forecast, by the first quarter, the growth speed of retail sale and services revenue will achieve 11.5 percent – 12 percent, partly thanks to state employees’ higher salary according to the Prime Minister’ decision which takes effect on July 1, 2018.  Moreover, there has been a rise in wage of retirees and social welfare allowance.
The Department said there has been positive sign in the field of exports. Revenue of exports in HCMC in the first three months amounted to $8.83 billion, a hike of 10.56 percent including rude oil.
Agriculture, forestry, fishery revenue posted a year-on-year rise of 23.8 percent with $1.23 billion. Coffee, fishery, rice, vegetables and cashews saw a year-on-year increase  of 24.3 percent, 23.1 percent, 21.7 percent, 41.3 percent and 52.7 percent respectively while industry revenue reached $5.98 billion, a climb of 17.6 percent.
Wood firms have huge orders in the first months of the year. Consumers prefer Vietnamese-made wooden items; accordingly, it is an opportunity for the sector.
Many foreign projects increase capital in Q1
A number of foreign projects increased their investment capital to expand production in the first quarter of the year, according to figures from the Foreign Investment Agency at the Ministry of Planning and Investment.
Most notably, the LG Innotek Hai Phong project increased its capital by $501 million while the Regina Miracle International Vietnam project added $260 million.
The Kefico Vietnam project added $120 million and the Vina Cell Technology project $100 million.
Thanks to LG Innotek's capital increase, South Korea held top spot among countries and territories investing in Vietnam in the first quarter, reaching $1.84 billion, or 31.6 per cent of total investment capital.
Hong Kong followed, with $689 million, or 11.9 per cent of the total, then Singapore, with $649 million, or 11.2 per cent.
Total foreign capital, both new and additional, and capital contributions and share purchases by foreigners in the first quarter stood at $5.8 billion, representing 75.2 per cent of the figure in the same period of 2017.
Newly-registered capital was $2.12 billion, equal to 72.7 per cent of the same period of 2017, while additional capital was $1.79 billion, or 45.4 per cent. Capital contributions and share purchase reached $1.89 billion, or 121.6 per cent of the figure in the same period of 2017.
As at March 20, foreign direct investment projects had disbursed an estimated $3.88 billion, an increase of 7.2 per cent year-on-year.
Exports by foreign-invested enterprises (FIEs) (including crude oil) was $39.34 billion, up 22.8 per cent year-on-year and accounting for 72.4 per cent of total export turnover. Excluding crude oil, the figure was $38.83 billion, up 24.2 per cent and accounting for 71.5 per cent of total export turnover.
Imports by FIEs totaled $31.75 billion, up 13.7 per cent year-on-year and accounting for nearly 59.9 per cent of total import turnover.
FIEs therefore recorded a trade surplus of $7.59 billion, including crude oil, and $7.08 billion excluding crude oil. 
Le Thuy lures in foreign investors to wind power sector
The enthusiasm of UPC Renewable Asia I Limited to develop two wind power plants in Le Thuy district of Quang Binh province, suggests Le Thuy might become the favourite destination of foreign investors in the wind power sector.
According to the latest developments, on March 20, a representative of UPC Renewable Asia I Limited returned to Le Thuy to conduct a survey and measure wind power to develop projects.
According to Phan Van Thuong, director of the Department of Industry and Trade of Quang Binh province, the province permitted the investor to install a wind tower to measure wind power. According to the regulations, the investor will be allowed to develop its project after 12 months of installing the wind tower.
At present, the investor has also completed the dossier to submit to the Ministry of Industry and Trade and the prime minister for approval.
Quang Binh is considered a dry land with little potential for economic development, while UPC is considered one of the world’s leading firms in develop renewable projects on all terrains, including mountainous, desert, even volcanic areas.
Thus, UPC’s investment is expected to open new opportunities for the province.
Regarding the potential to develop renewable projects, Pham Quang Nam, Secretary of the Le Thuy Party Committee, stated that the weather conditions of Le Thuy are suitable for solar power and wind power projects.
Previously, in January this year, the group joined a working session with leaders of the Quang Binh People’s Committee and relevant authorities to report on its plan to develop the two wind power projects named UPC-Le Thuy and UPC-Quang Binh.
Notably, UPC will pour VND2 trillion ($87.68 million) into building the UPC-Le Thuy wind power plant on an area of 16 hectares and VND10.2 trillion ($447.18 million) into UPC-Quang Binh on 130ha. Once the two plants come into operation, they will generate 158 million and 760 million kWh per year, respectively.
According to information from the Quang Binh Department of Planning and Investment, along with UPC, numerous other investors have registered to implement wind power projects in Le Thuy.
Accordingly, B&T Windfarm JSC aims to build two projects with a total capacity of 200MW in Quang Ninh and Le Thuy districts. Additionally, Tan Hoan Cau Group has proposed building a 300MW project in Minh Hoa district.
Dohwa Group from South Korea has constructed a 49.5MW solar project. Being one of Dohwa’s renewable energy complexes, it has a total investment capital sum of $55 million and is expected to generate power by the end of this year.
High-quality products fair to promote safe foods this year     
The Vietnamese High-Quality Products Fair in HCM City early next month will have many new features, including a focus on introducing “Vietnamese High-Quality Products-Global Integration Standard” (GIS) certified products and others under the city’s food safety chain model.
Speaking at a press briefing in HCM City on March 27, Vu Kim Hanh, chairwoman of the Vietnamese High Quality Product Business Association, its organiser, said the fair would have 600 booths set up by 300 exhibitors.
Visitors can see “a strange garden” where they can see and touch quaint products made from Ben Tre Province’s coconut trees and fruits and grapefruits, which have been granted geographical indication certificates by the Ministry of Science and Technology, she said.
The fair would have a “Green-Nice Market” where farms, co-operatives and start-up firms showcase farm produce grown to safe or organic standards, she said.
The fair this year would also showcase activities to help local businesses further penetrate the global market through the association’s GIS project and a co-operation programme between the association and Saigon Innovation Hub, she said.
There will also be a promotion in which over 3,000 items will be sold at VND20,000 at 10-10.30am and 4-4.30pm daily, game shows, a cooking contest, and lucky draws with prizes of tours to Cambodia and destinations in Việt Nam.
For the first time the fair would be organised with the collaboration of the Food Safety Management Board of HCM City, and the two sides would organise an international seminar titled ‘Improving Quality Standards to Integrate into the Global Market’ on the sidelines of the fair, Hạnh said.
Sixty six Vietnamese food firms have obtained GIS certification, she added.
The fair will be held at the Phu Tho Stadium in District 11 from April 3 to 8 
HCM City to play host to beauty expo     
Cosmobeaute Vietnam, the largest beauty industry exhibition in Viet Nam, returns next month to HCM City, providing local and international exhibitors and visitors the opportunity to explore business opportunities
CP Saw, founder of Cosmobeauté, said more than 200 exhibitors from 13 countries and territories, including China, Germany, Hong Kong, Italy, Japan, Korea, Malaysia, Singapore, Spain, Taiwan, Thailand, the US, and Viet Nam would participate, and there would be four international pavilions from Korea, Singapore, Spain, and Taiwan.
On display will be beauty equipment for every part from head to toe including skin care products cosmetics and makeup; laser machine for body slimming, skin rejuvenation, tattoo removal, face lifting, and whitening; and hair care products.
Cosmobeaute will also host several programmes such as beauty workshops and seminars, live demonstrations, beauty shows and others, in which industry experts will share know-how and experience and update visitors on beauty trends.
With a rising number of middle-income earners in Viet Nam, there is incrreasing demand for quality beauty products, Saw said.
The event would be a platform for the local beauty industry to source premium brands, he added.
To be held at the Saigon Exhibition and Convention Centre from April 19 to 21, the event is expected to get 13,500 visitors. 
Expert urges Vietnamese firms to explore other markets
Vietnamese firms should expand their partnership to at least three markets to avoid sole dependence on a particular market, said economist Phạm Chi Lan.
She also urged the firms to provide clear and transparent filings to meet the standards of exporting markets.
Vietnamese enterprises must prove that they do not enjoy protectionism of the government and do not sell products at a dumping price level to ensure they are not affected by the anti-dumping tax policies of the exporting markets, she said.
Given the context in which US regulators have planned to impose anti-dumping taxes on Vietnamese exports to protect their local fishery and steel industries, Lan suggested firms to explore other markets and diversify their targeted markets to ensure less reliance on a sole, large market.
“A three-market strategy will ensure that a company’s export is balanced and that business will not depend on any particular market,” Lan said.
Such business strategy will help Vietnamese firms to survive and exploit new opportunities in the context of a rising global trade war, following intense statements from China and the United States against each other, she said on the sidelines of a conference co-organised by the Vietnam Executive MBA Programme in Hà Nội, University of Hawai’i, and the European Chamber of Commerce in Vietnam last week.
The United States announced a US$60 billion tariff bill on Chinese imports last week. China, in return, filed a list of 128 US products for retaliation, raising global concerns about a possible trade war.
According to Jack Suyderhoud, professor of Business Economics at the Shidler College of Business, University of Hawai’i at Manoa, recent actions of the US government are aimed at protecting its local industries, such as fisheries and steel, against threats from cheaper imports from China and Việt Nam.
Rising protectionism will encounter objection from those benefiting from free trade, Jack said, adding that the US government should notice how important the win-win principle is and how it exists in every trade deal.
Lan urged local firms to strengthen their competency so that they can take advantage of benefits brought about by free trade agreements, to which Việt Nam must comply, and encounter less negative impacts from a possible global trade war.
Besides the US and China, Vietnamese firms should increase its influence in other markets, such as the European Union, reducing its dependence on the world’s two largest markets, Lan said.
“There are no winners in a trade war,” she said, adding that the United States and China are two of the largest trading partners of Việt Nam, thus, “we need to expand our trade relations to different markets to boost the country’s economy”.
“The establishment of the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), signed on March 8 without the United States’ participation, is a good way to deal with the unpredictable policies of the United States and China at the moment,” Lan said.
The CPTPP deal will help other economies to get to know each other, increase their cooperation and protect their economies, offsetting the damages caused by US protectionism and China’s responses, she added.
“CPTPP is proving to be attractive to other economies that are not partners to the deal, such as South Korea and the United Kingdom,” she said.
TT Group to co-operate on railway, stadium renovation     
The industry-real estate-finance conglomerate T&T Group and France’s industrial Bouygues Group on Tuesday signed a co-operation agreement to invest in urban railway project No 3 and upgrade Hang Day Stadium in Ha Noi.
Accordingly, T&T Group plans to invest in and develop the project of urban railway No 3 (dual rail) in the form of Public Private Partnerships (PPP), connecting Ha Noi centre with Son Tay Township for a total length of 31.1km. The total value of investment in this project is estimated at 1.4 billion euros (US$1.74 billion).
In addition, the plan for the Hang Day Stadium renovation has an estimated investment value of 250 million euros.
Bouygues Construction is one of the world’s leading companies in the field of design and construction of international infrastructure projects. The Bouygues Group is committed to working with T&T Group in the design, construction, commissioning, maintenance, support and financing of the two projects.
The agreement, which was signed during a recent official visit of Viet Nam’s Party General Secretary Nguyen Phu Trong to France to mark the 45th anniversary of diplomatic relations between the two countries, will help open up investment opportunities in Viet Nam for the leading economic groups in the world and promote domestic and foreign cooperation for key national economic projects.
Founded in 1993, T&T Group JSC operates in the real estate, finance, industry, sports, and import-export trading market segments. Its real estate projects include residential units, trade centres, office buildings, resorts, marine eco-tourism areas, and urban areas and industrial zones. The company currently has total assets of VND20 trillion ($877 million) and charter capital of VND5 trillion. 
50-70% of surplus budget revenue to be used for wage hikes
Half of surplus central budget revenue and 70% of surplus local budget collections will be kept to create resources for wage reform as from 2021, news website Vietnamnet reported.
At a seminar on reform of social insurance and wage policies in Hanoi last Saturday, standing vice chairman of the Central Theoretical Council Phung Huu Phu said that wage and social in-surance reform will be among issues for discussion at the 12th Party Central Committee’s seventh meeting next May. 
According to Deputy Prime Minister Vuong Dinh Hue, head of the steering committee for reform of wage, social insurance and incentives for people with meritorious service, the commit-tee has consulted many agencies of the Party, Government and National Assembly, the Supreme People’s Court, the Supreme People’s Procuracy, the International Labor Organization, the World Bank and countries with effective wage and social insurance policies.
Regarding the wage reform, the Party Central Committee has given comments since 2003, but many problems remain unsolved and a resolution has not been passed yet.
Hue said that the scheme must remove inadequacies of the prevailing wage policy.
Wages in the public sector have yet to catch up with the private sector. Wage adjustments are not independent of adjustments of pension and incentives for people with meritorious service, affect sustainability of social insurance, and need to come close to international standards.
One new point is to build two payrolls, one applying to positions and the other to specialist tasks, so as to avoid problems concerning wage payments made according to degrees. Those with high-er skills and higher positions will get higher pays to avoid the other way around like what is hap-pening, according to Hue.
Incomes of State workers will also be based on international practices, with wages accounting for 70% and subsidies no more than 30%. Besides, heads of agencies can use 10% of bonus funds to give staffers additional pay for their excellent performance and have wage funds for ministries and localities to recruit talent.
The scheme will eliminate wage coefficients and instead use absolute figures in the payroll. The minimum wage is the lowest level, and no one can pay lower than that. The minimum wage by the hour is also set, and the State’s interference in the payroll at enterprises is removed.
As for social insurance reform, Hue said only workers having paid social insurance in over ten years can start to get pensions. Those leaving social insurance earlier than ten years can get only the amounts in their accounts.
In addition, higher retirement ages will be applicable as from 2021 with an increase of three months a year until the retirement ages reach 62 for men and 60 for women. 
According to the Deputy Prime Minister, if the retirement ages are not raised, the social insurance fund will be exhausted.
Vietnam eyes 9 billion USD in forest product exports
Vietnam’s exports of forest products are expected to reach 9 billion USD in 2018, experts have said.
Reports delivered at a conference in Ho Chi Minh City on March 27 said the country earned 8 billion USD from exporting forest products in 2017, of which 7.7 billion USD was contributed by wood and wooden products.
Representatives from wood enterprises stressed that the 9-billion-USD goal is achievable this year.  
Wood processing and export firms were urged to employ measures to ensure balance between demand and supply, towards promoting sustainable development of the wood processing and export sector. 
At a recent seminar held in HCM City, experts also said that wood processing and export businesses of Vietnam have opportunities to expand markets and increase export value in the future.
According to Vice Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City Huynh Van Hanh, aside from the strong growth of the domestic property market, global demand for wood furniture and wood items this year are predicted to rise by 3.5 percent and 4 percent, respectively.
Domestic wood enterprises were advised to pay more attention to updating technology, improving manpower quality and management capacity, building their own brands, promoting product quality and boosting support services.
Petrolimex to issue e-invoices from Sunday     
Vietnam National Petroleum Group (Petrolimex) will officially issue electronic invoices to replace ordinary paper bills from Sunday. The decision follows the Ministry of Finance’s Circular No 32/2011/TT-BTC, issued on March 14, 2011, guiding the creation, issuance and use of e-invoices for goods and services.
According to Deputy General Director Tran Ngoc Nam, the issuance of electronic invoice will help to effectively make use of the information technology system in production and business activities of the enterprise, ensuring compliance with the trend of the Fourth Industrial Revolution.
Nam, who also heads Petrolimex’s electronic invoice project, said e-invoice was an inevitable trend and contributed to the reduction of printing costs, preservation of data, increase in the transparency of petrol business activity and simplification of administrative procedures, thereby making it convenient for customers.
It would also be easier for the State management agencies to search for information to supervise, Nam said, highlighting that the move would benefit consumers, State and businesses and ensure convenience, safety and accuracy.
Customers can easily access the electronic invoice by receiving the search code via email address or receipt and then visiting the website, www.petrolimex.com.vn, to get the bill.
The e-invoices will be stored in the form of data files that will be kept on Petrolimex’s server for 10 years with back-ups, so there is no fear of the data getting lost or damaged. Instead, it will make it convenient to manage goods and expenses.
To implement the decision, Petrolimex has researched and deployed the project since May 19, 2015, and the solution provider is VNPT-Vinaphone-Dakta joint venture. 
Shop Store Vietnam expo opens in HCM City     
The first Shop & Store Vietnam, a conference and exhibition on the retail and franchise industry, is being held in HCM City from March 28.
The event has attracted 70 brands from 18 countries and regions, and three international group pavilions from Thailand, Singapore and Japan.
The event, which will also feature conferences on retail and franchise and legal aspects on franchise, provides an opportunity for businesses in retail, franchise and shop fitting to show off their products.
They include franchises like Miniso and Tupperware, King BBQ, Hotpot Story, Khao Lao, Blackball, Chabayom, SIC, Renmi, Nishio and others.
The event also showcases new technologies in retail business, including retail devices and digital signage solutions.
There will be demonstrations of ‘Cashless Showcase’ and 3D holograms and a ‘smart shopping’ competition.
The organiser, Reed Tradex, has collaborated with Miniso and Ibox/2can to launch the "SSV CashlessPay" application for exhibitors and visitors to practically experience “cashless” transactions to make shopping more convenient.
The event is being held at the Saigon Exhibition and Convention Centre in District 7.
Vinpearl opens luxury condotel in Nha Trang     
Vinpearl on Monday (March 26) opened the five-star Vinpearl Nha Trang Empire condotel.
It is 40 stories tall and has over 1,221 rooms and other facilities.
It has been built atop the Vincom Plaza mall, which opened last December.
It is Vinpearl’s 18th hotel. 
Hanoi’s CPI drops 0.22 percent in March
The consumer price index of Hanoi in March declined 0.22 percent over the previous month but increased 2.7 percent over the same period last year.
Major reason for the drop is a reduction in prices of three goods groups - food and catering services; housing, electricity, fuel and construction materials; and transportation. 
Lower demand after the traditional New Year festival in February and warmer weather with abundant supply of farm produce pulled the prices of food and foodstuff down. Meanwhile, lower gas prices also led to a fall in the prices of housing, electricity, fuel and construction materials.
A fuel price cut also made the price of transportation lower.
The average index in the first three months of this year rose 2.54 percent over the same period last year. An upturn was seen in 10 groups of goods and the only one experienced a fall.
Import-export revenue surges nearly 37 percent in March
Total import-export revenue of Vietnam is estimated at 38.8 billion USD, a surge of 36.8 percent over the previous month, according to the General Department of Vietnam Customs.
Of the figure, exports are calculated to reach 19.8 billion USD, a rise of 38.2 percent month on month, while imports are valued at 19 billion USD, up 35.4 percent over February.
In the first three months of this year, total import-export revenue is likely to hit 107.32 billion USD, up 17.7 percent year on year, including exports of 54.31 billion USD and imports of 53 billion USD.
Export value of garment and textile is estimated at 6.3 billion USD, a year-on-year increase of 12.9 percent, while that of computers, electronic products and spare parts is about 6.29 billion USD, footwear 3.45 billion USD, wood and wooden products is 1.91 billion USD.
Meanwhile, earnings from aquatic products are 1.67 billion USD, up 11.2 percent, and coffee export revenue is 989 million USD, a drop of 3.7 percent over the same period last year.
At the same time, imports of computers, electronic products and spare parts in the first three months of this year are likely to reach 10.33 billion USD, a surge of 30.2 percent over the same period last year.
A year-on-year drop of 4.3 percent was seen in imports of machines, tools and equipment to 7.37 billion USD. The country imported over 3.51 million tonnes of petrol for 2.2 billion USD, up 20.1 percent in volume and 37.1 percent in value.
Vietnam is estimated to enjoy trade surplus of about 800 million USD in March and 1.3 billion USD in three months.
Technology application—a new trend in HR training ahead of CPTPP
Amidst growing demand for qualified manpower among domestic and foreign-invested enterprises (FIEs), technology applications in human resources training are predicted to become a popular trend in Vietnam ahead of the enforcement of the Comprehensive and Progressive Pacific Partnership (CPTPP).
For years, a shortfall of skilled workforce has remained a thorny issue for both domestic and FIEs in Vietnam. As shown in the Provincial Competitiveness Index (PCI) 2017, only 31 per cent of nearly 1,800 FIEs are satisfied with the labour quality in Vietnam.
The Vietnamese workforce over the age of 15 is 53.5 million strong, but only 9.99 million people or 18.6 per cent are skilled workers, meaning unskilled workers make up 81.4 per cent of the country’s total workforce.
The local workforce also lacks many necessary skills, like problem solving, IT, especially foreign language skills, and adaptability. Moreover, the levels of innovation and creativity among skilled local employees are still low.
Looking at the competitiveness of businesses in Vietnam, it is easy to see how low quality workforce bridles the GDP growth rate. Every year, Vietnam's labour productivity increases by 3 per cent on average, while GDP expands at around 5 per cent.
According to the General Statistics Office, Vietnam's labour productivity is even lower than Laos and Cambodia, and just one tenth of Singapore.
In 2017, Vietnam's labour productivity was estimated at VND93.2 million ($4,159) per labourer. This figure is equal to 7 per cent of Singapore and 17.6 per cent of Malaysia. Singapore and Malaysia are also two member countries of the CPTPP.
As enterprises continue to expand business and investment activities in the country, demand for qualified manpower grows more significantly than ever. However, improving labour quality in a cost-saving and effective manner is a big concern.
At present, each Vietnamese firm spends around VND400,000 ($18.18) each year training an employee on average.
Meanwhile, Angeline Teo, director of dOz International (Singapore), said that businesses that are thought to be successful in human resources development must spend 8 per cent of their revenues on such purposes.
Vietnam is home to more than 500,000 enterprises, but over 90 per cent do not have their own internal training management system.
According to experts, e-learning would be an optimal choice for businesses to improve their human resources quality and save on training costs.
In developed countries, businesses focus on the application of high-tech solutions in training. The Industry 4.0 has resulted in the rapid development of e-learning, while cloud computing technology helps save costs and proves more efficient than traditional training methods.
In Vietnam, technology solutions for e-training remain in the early stages of development with only a handful of suppliers.
One of the famous brands is Huong Viet Group, which has ten years of experience in technology solutions for education and training with CLS.vn (Cloud Learning System)—the modules for training management based on a cloud system.
CLS-Cloud Learning System (cls.vn) has proved to be a reasonable solution for smaller businesses as it is very cost-effective and easy to use.
It is estimated that with CLS businesses can reduce 75 per cent of training costs and save 95 per cent of training time and 100 per cent of housing and travelling costs for trainers and trainees, thus helping businesses increase operational efficiency by 2.5 times and triple labour productivity.
With a cheap cost (less than 10 per cent of foreign-developed technology solutions), CLS brings in an advanced internal training system for domestic and foreign-invested enterprises, with standards equal to those of developed markets. CLS is predicted to become the driving force of the e-learning market in Vietnam.
"In globalisation and global integration, improving the quality of workforce is the key to increase competitiveness," said Tran Van Ba, deputy director of Huong Viet Group.
Currently, CLS is being applied at 500 businesses throughout the country, ranging from distribution, retail, and services to education.
In the technology era, Vietnamese firms can only stand firm if they pay due attention to applying technology in human resources training. If they fail to make changes, they might fall behind or be gobbled up, leaving the playground for FIEs to benefit from the CPTPP.
According to a new World Bank report, the CPTPP will bring direct economic benefits to Vietnam. The CPTPP, along with other multilateral trade agreements, is expected to further boost investment in Vietnam through its export-driven growth model.
The World Bank estimated that the CPTPP would lead to an increase of 1.1 per cent in Vietnam’s GDP by 2030, which could rise to 3.5 per cent given a modest boost to productivity.
All income groups in Vietnam are expected to benefit from this new trade deal, and highly-skilled workers may reap the most benefits.
State Audit of Vietnam becomes ASOSAI Chair for 2018-2021
The State Audit of Vietnam (SAV) will become the Chair of the Asian Organisation of Supreme Audit Institutions (ASOSAI) for the 2018-2021 tenure and will also serve as a member of the ASOSAI Governing Board for three consecutive terms (2015-2024).
The State Auditor General of Vietnam Ho Duc Phoc made the announcement at a press conference in Hanoi on March 28.
The 14th ASOSAI Assembly of the Asian Organisation of Supreme Audit Institutions (ASOSAI 14) is set to take place in Hanoi from September 19-22 in Hanoi with the participation of 350 delegates from 46 ASOSAI members.
The political and diplomatic event provides a chance for the SAV to learn from and acquire knowledge and international experience and utilise potential resources from ASOSAI and its members to improve the operational efficiency. It affirms the SAV’s role and position among ASOSAI’s members and regional and international organisations, helping to elevate its stature to a new height, Phoc said.
According to the Auditor General, the theme of “Environmental Audit for Sustainable Development” at this year’s assembly is also one of the important topics of the agenda, reflecting the commitments, efforts, and practical contributions of the ASOSAI community to pursuing the UN sustainable development goals (SDGs) and dealing with global environment challenges.
Following the theme, ASOSAI members will deliver reports on challenges, experiences, and solutions to effectively perform environmental audit functions with the aim of meeting SDGs. The outcomes of the 14th ASOSAI assembly are expected to contribute to fine-tuning auditing guidelines, procedures, and standards to meet SDGs among member nations.
At the press conference, the organizing board also gave a presentation on the Assembly's Corporation Identify Program (CIP), which is seen as an effective promotional tool for the 14th ASOSAI Assembly with distinctive features and characteristics different from the previous meetings of this kind and other events.
The CIP helps the ASOSAI community domestic and foreign organizations, delegates, and individuals, come away with strong and positive impressions of the international event, ASOSAI, and the SAV.
The design of the CIP is inspired by the country’s unique historical and cultural relics and the theme of 14th ASOSAI Assembly. The main parts of the CIP include a logo and visual communication tools.
Coffee city project underway in Dak Lak
The Trung Nguyen Legend Group are developing a coffee-themed project in the Central Highlands province of Dak Lak.
Trung Nguyen Legend Group on March 28 inaugurated the welcoming gate of the coffee city project which covers 45.45 hectares in Buon Ma Thuot City.
The project includes an international coffee museum, houses, shopping centre, parks, schools and healthcare services. The coffee museum, which will display more than 10,000 coffee-related objects, is expected to enter operation this November.
The site is intended to home around 5,000 people. Most of trees in the city will be coffee.
Most of the project’s items have been scheduled to be completed by late 2020.
The project, which has been delayed for many years, has a total investment of more than VND2 trillion (USD90,9 million).
Hyundai Tan Phu plant under inspection
The Inspectorate of Ba Ria-Vung Tau province will conduct an inspection on licensing and revocation of the investment certificate of the Hyundai Tan Phu producing and assembly plant located in Phu My 1 Industrial Park in Tan Thanh district.
The decision came when the investor, which is a joint venture between Tan Phu JSC and Hyundai Group, continuously sent the documents to the local authorities to protest about its investment certificate being revoked in 2016.
In March 2011, the Ba Ria-Vung Tau People’s Committee granted an investment certificate for Hyundai Tan Phu to develop a mini bus and truck production factory with the total investment capital of $40 million. The factory has a designed capacity of 20,000 mini buses and 30,000 trucks per year. The construction of the project was expected to kick off in May 2011 and completed one year later.
However, the construction pace could not match the schedule. Even, when the investment certificate expired after delays in project development, the investor had yet to refresh the workshop leasing contract or submit the dossiers for a new investment certificate.
Ba Ria-Vung Tau asked the investor to sign the contract and complete procedures for the new investment certificate before May 2016, otherwise the province would revoke the project and transfer it to other investors.
As a result, the province issued the decision to withdraw the project because the investor missed the deadline to submit these dosseirs..
However, after receiving the decision to revoke the project, the investor has sent documents to the local authorities complaining that it still wants to develop the project and that the long delay in construction is due to a lack of support from the local industrial park board of management.
Notably, after receiving the investment certificate and the land, the investor spent VND40 billion ($1.75 million) developing infrastructure for the factory.
Besides, the company completed its tax obligations. However, during 2015-2016, the investor asked the management board to guide it to sign the contract but they refused to meet the investor.
Furthermore, the management board did not approve the investor’s desire to develop the project.
The investor sent complaints to the relevant government agencies after the province did not entertain its opinion.
Last June, after receiving the requests of the Government Office to report on the process of licensing and revoking the investment certificate, Ba Ria-Vung Tau asked the inspectorate of the province to conduct an inspection.
In April 2016, the Nhon Hoi Economic Zone Management Authority in the central province of Binh Dinh decided to revoke the investment certificate of a long-delayed Russian automobile project.
The project had the registered investment capital of $1 billion and was licensed three years ago, but was yet to get underway.
Russia’s Buscenter Met Company Ltd. planned to establish a 50-hectare factory in the zone to manufacture and assemble automotive parts and agricultural machinery.
Environmental tact appears in Vietnamese living space
Green living space, the latest trend in the real estate development sector, has been adopted by some of the leading property developers in the country, including Vingroup, Gamuda Land, and Sun Group, offering an environment-friendly lifestyle to residents in the urban areas of Ho Chi Minh City and Hanoi.
Over the past decade, an increasing number of real estate projects have been advertised with the keyword "green" as a core concept, signalling an all-about-the-ecosystem mindset among the residents of apartment complexes.
Addressing the trendy sustainable lifestyle, Luk Ban La, vice president of Phuc Khang Investment & Construction Corporation, asserted that, "Residents in the business hub of Ho Chi Minh City, especially Vietnamese immigrants returning to their homeland, crave green living spaces, which allowed us to embrace a more sustainable lifestyle while keeping their ancestors’ cultural values at the heart of our projects."
As a result, Phuc Khang was reported to integrate both modern and traditional living concepts into its real estate development projects, such as Ecovillage and Ecotown.
In order to comply with this new benchmark, Phuc Khang set to pioneer the construction of green living spaces with sustainable humanitarian values which Phuc Khang and Mitsubishi Corporation shared.
Previously, with the target of developing the LEED-certified Diamond Lotus project, Phuc Khang Mitsubishi Corporation Holding (PKMC) was created in late 2017 with $30 million charter capital, 49 per cent of which belonged to Mitsubishi and 51 per cent to Phuc Khang.
Additionally, multisectoral giant Vingroup had four real estate projects, namely Vinhomes Riverside, Vinhomes Times City-Park Hill, and Vinhomes Imperia in Hanoi and Vinhomes Central Park in Ho Chi Minh City, rated as the top four most worthy living spaces in Vietnam by VIR readers.
Le Khac Hiep, vice president of Vingroup, stated that, "The group committed to offer a more optimal living space, one that is mindful of the ecosystem and customer-centric to accommodate discerning citizens of the future green-living society."
Seizing a spot in the top 20 projects setting "A new benchmark for living space" rated by VIR readers, Wyeren Yap Vooi Soon, general director of Gamuda Land, noted that, "The group aimed at delivering a smart and harmonious living space to its customers, commtting to a green coverage of 16 hectares at its real estate projects with the intent to create the most satisfactory residential experiences in Vietnam."
Leadership in Energy and Environmental Design (LEED), put forth and developed by the US Green Building Council, is a set of rating systems for the design, construction, operation, and maintenance of green buildings which emerged in the core concept of multiple real estate projects across progressive countries.
VNN