StoxPlus organises event on VN consumer finance market
An international conference on consumer finance will be held on October 19 to address important themes and legal framework changes for the healthy and sustainable development of Viet Nam’s consumer finance market.

This is the second event on the country’s consumer finance market that is being held with the co-operation of StoxPlus, the State Bank of Viet Nam and the Japanese Nikkei Incorporate.

Some 200 participants -- market regulators, local and foreign banks, finance companies and investment funds, as well as e-payment and e-commerce players, investors and international organisations, are expected to take part in the event.

Market participants, investors, researchers and regulators will come together to discuss existing issues and provide insights and reflections on market practices and international experiences, contributing to the development of the Vietnamese consumer finance sector.

The event will take place at the Hilton Hanoi Opera in Ha Noi and is organised by business information provider StoxPlus.

Consumer finance is seen as one of the fastest growing sectors in Viet Nam in the past few years, with the country’s total loan book recorded at VND605 trillion for both banks and non-banks as of December 31, 2016.

Total loan book by pure consumer finance players accounted for VND56.3 trillion. It is expected to increase sharply in 2017 and subsequent years, with an annual growth rate of 48 per cent in the 2014-16 period.

Low penetration and significant unbanked population in Viet Nam are reasons for the high potential of the local market, however, various challenges and policy developments have yet to be shared and discussed by all stakeholders for the sustainable and healthy development of the sector in the future.

At the upcoming event, participants will have opportunities to discuss four topics, including management of the sector's growth for Viet Nam from the risk management perspective, social impact of consumer/borrower’s protection and how consumer finance companies can improve the underwriting process.

The two other topics are how the Government can develop a legal and policy framework to govern the consumer finance sector and support its healthy development, and how emerging models such as application of big data, fintech and peer-to-peer lending can be used in the context of Viet Nam.
SSI opens new transaction office
Saigon Securities Inc (SSI) inaugurated a new transaction office on Wednesday at Nguyen Van Cu Street in HCM City’s District 1.

This is SSI’s 12th transaction office in Viet Nam.

At the opening ceremony, Nguyen Duy Linh, deputy director of the SSI’s Customer Services Department, said that after over 17 years of establishment and operation, the SSI’s transaction office network has spread across the country, with a leading market share on both the HCM City Securities Exchange (HOSE) and the Ha Noi Stock Exchange (HNX).

The expansion of the network of transaction offices aims to increase SSI’s market share in the segment of individual customers, he added.

Nguyen Van Toan, director of the transaction office Nguyen Van Cu, said that the establishment of the transaction office would continue to consolidate SSI’s leading position in the stock brokerage network for clients, and at the same time expand opportunities for investors to access the capital market.

Previously on September 21, SSI had opened a transaction office on Nguyen Thi Minh Khai Street in HCM City’s District 1.

The two new transaction offices would continue to provide services to clients relating to securities brokerage, securities investment consultancy and securities depository. 

Vietnamese PM makes US$1 billion pledge to tackle climate change in Mekong Delta

Vietnam’s Prime Minister Nguyen Xuan Phuc has pledged $1 billion to the country's Mekong Delta to fund projects aimed at tackling climate change amid warnings that the country’s rice basket is disappearing.

The funding will come from the state budget, the World Bank and other sources, Phuc said at a national conference held in Can Tho City to discuss sustainable development in the delta.

A detailed timeframe for the disbursement was not discussed, but Phuc promised that the best and most suitable measures will be taken so that “the Mekong Delta will remain a rich part of Vietnam.”

He advised against panic and called for new thinking to bring a better life to the nearly 20 million people who call the delta home.

Phuc took a two-hour helicopter ride over the delta on Tuesday ( September 26) around two months after taking a similar trip in the Netherlands to view how the Dutch are adapting to climate change.

He said he is optimistic about the future of the delta.

His statement came on the second day of the two-day conference after officials warned of a bleak future for the delta and urged for more government support.

They said the delta is losing more and more each day to erosion and subsidence, and that it may be gone in 100 years without drastic intervention.

Figures from the environment ministry showed that around 300 hectares (741 acres) of land in the delta has been lost to erosion every year since 2005, and most of it sank by between five and 10 centimeters from 2010 to 2015. The issue is even more severe in coastal areas.

Tran Thuc, vice chairman of the government’s advisory panel on climate change, said that 144 hydropower dams planned for the Mekong would cause significant changes to the water levels and reduce the amount of mud and sand flowing downstream, leading to “permanent” damage to the delta's biodiversity and the extinction of some important species.

He said the drop in sediment would change river currents and allow seawater to encroach further upstream, aggravating the risks of extreme weather.

Officials said that people in the delta, which produces half of Vietnam’s rice output, will need to be prepared for different scenarios, such as what is going to happen in the next five or 10 years, what plants and animals will be able to survive on their farms, and what they should do in case of typhoons, a phenomenon they have not seen for two decades.

Year’s 2nd Vietbuild opens in HCM City
The latest products and services on the real estate, architecture and interior and exterior decoration industries are on display at the Vietbuild International Exhibition that opened in HCM City on Wednesday.

With the theme Real Estate-Architecture and Interior-Exterior Decoration, the second Vietbuild held in the city this year features more than 2,500 booths showcasing property projects, electrical equipment, doors and accessories, internal and external decorative items, building materials, solar energy systems and others.

Conferences and business meetings are scheduled to be held on the sidelines.

Speaking at the opening ceremony, Deputy Minister of Construction Bui Pham Khanh said the real estate market was steady in the first nine months of the year and attracted a lot domestic and foreign investment into many new projects.

Developers are focusing on products suitable for the market and people’s pockets, with the low-cost housing segment attracting increasing interest, he said.

The exhibition, besides introducing participating companies’ latest products and technologies to local and foreign visitors, also offers a forum for the companies to meet, exchange information and explore future co-operation, he said.

It also offers State agencies and businesses the opportunity to understand the latest trends in the property market so that they can map out appropriate strategies, he added.

The expo, on at the Saigon Exhibition and Convention Centre in District 7, will run until October 1. 

Vietnam Rubber Group plans to raise US$563 mln in share sale

State-run Vietnam Rubber Group (VRG) has approved a plan to sell 25% of the company in an initial public offering, worth an estimated 12.8 billion dong (US$563 million), it said on September 26.

The sale is part of Vietnam's plans to trim stakes in state-owned enterprises, which picked up pace after a new government took office last year. 

The government aims to sell holdings in 135 state-owned companies in 2017, it said in late August.

VRG plans to sell 11.88% of the company to the public and another 11.88% to a strategic investor, according to its share sale plan published on the company's website. The group has not chosen a strategic investor yet.

The company also plans to sell 1.21 and 0.03% to its employees and trade union, respectively. Vietnam's government would own the remaining 75% of the shares.

VRG has not finalized a listing plan. In Vietnam, listing and an IPO are separate processes.

The group aims to complete the IPO process in 3 months once the share sale plan is approved by the government.

VRG is a state-own producer and manufacturer of rubber and rubber products. It expects a net profit of VND3,060 billion (US$134.62 million) in 2017, up 9.4% from VND2,797 billion in 2016.

Analysts suggest halting new G-bonds     

SSI opens new transaction office, Year’s 2nd Vietbuild opens in HCM City, Vietnam Airlines reports sparkling nine-month business result, HCMC credit growth reaches 13.5% in 9 months

The Government should limit or temporarily stop issuing new Government bonds during the remaining months of the year while waiting for the improvement of public investment disbursement.

According to analysts at Bao Viet Securities Company (BVSC), the halt will help the State budget partly reduce the cost of paying interest for loans that are temporarily not needed.

The recommendation was made after reports showed the State Treasury deposits some VND160 trillion (US$7 billion) at commercial banks in the first eight months, up 68 per cent against early this year, due to sluggish public investment disbursement.

Statistics showed that capital mobilised from the issue of G-bonds in the first eight months of this year was very positive, however, it was quite a contrast to the disbursement of the capital source.

According to the Ministry of Finance, total capital mobilised from G-bonds in the first eight months of this year reached nearly VND144.1 trillion, equal to 78.6 per cent of the annual plan.

However, unlike the success of G-bond mobilisation, disbursement of the capital source during the period was very slow. Just VND2.46 trillion was disbursed, equal to only 4.9 per cent of the plan.

In a bid to speed up disbursement, Minister of Planning and Investment Nguyen Chi Dung recently sent a dispatch to ministries and central and localities to urgently report on the implementation of Resolution No 70 / NQ-CP, dated August 3, on solutions to accelerate the implementation and disbursement of public investment plans.

Dung also proposed specific solutions to effectively implement the public investment plan, including a resolute cut in capital for projects that are unlikely to disburse any funds in 2017 and allocate the capital for other important and urgent projects.

The Government will not include projects that use State domestic capital budget in next year’s capital allocation plan if the projects’ disbursement meets less than 30 per cent of 2017’s plan.

Previously, due to the slow disbursement of public investment, including G-bond capital, Prime Minister Nguyen Xuan Phuc also had to ask authorities to take more drastic measures to rectify the late disbursement of investment capital for public projects, noting that the slow disbursement of public investment leads to a bottleneck in national economic growth and rising public debt.

Thirty ministries and provinces reported slow disbursement of public investment, mainly due to the lack of proper direction by heads of ministries and localities, in addition to inadequacies of related procedures, slow land clearance and limited capacity of project contractors. 

Vietnam Airlines reports sparkling nine-month business result

Despite fierce competition between domestic and international air carriers, Vietnam Airlines Corporation maintained increasing revenue and profit in the first three quarters as well as retained the Four-Star Airline Certification for the second consecutive year.

After posting double-digit growth in revenue as well as profit for numerous years, the domestic aviation market has seen slowing growth with signs of saturation. According to statistics from Civil Aviation Authority of Vietnam, in September 2017, the aviation sector’s flight control output was 31,050 flights, increasing only 6.8 per cent on-year.

However, the corporation still reported sparkling business results. Notably, within the nine months of this year, Vietnam Airlines maintained its market share of 56 per cent by handling 16 million passengers and 235,525 tonnes of cargo, equalling 75 and 79.1% of its annual targets.

In spite of lacking the business results for the last days of September, in general, in the first three quarters of this year, Vietnam Airlines earned VND65.1 trillion ($2.85 billion) in consolidated revenue, up 20% on-year, and VND2.26 trillion ($98.8 million) in consolidated pre-tax profit, equalling 138 per cent of its plan for the whole year.

The parent company Vietnam Airlines alone earned VND1.26 trillion ($55.08 million) in pre-tax profit. In the third quarter, it acquired VND1.09 trillion ($47.6 million) in pre-tax profit, establishing a new record for the Vietnamese aviation industry.

The corporation has changed investment methods in aircraft. Accordingly, instead of using loans for purchasing new aircraft models, Vietnam Airlines will use the sale and leaseback method.

Notably, Vietnam Airlines found buyers for three new-generation A350s aircrafts it expected to receive in 2016-2017 under an aircraft purchase contract signed with Airbus and then leased them back to use for the long term.

In late August, the corporation released plans to sale and leaseback one GEnx-1B74/75 spare propulsion engine (SPE) for its B787 fleet with the ToT schedule in December 2017. 

This method is to control the money Vietnam Airlines has to borrow to afford the purchases for the Airbus 305-seat aircraft, while still ensures an adequate number of planes for its operation.

One outstanding point relating to service quality is that it was certified for the second consecutive year as a four-star airline by UK-based airline and airport rating organisation Skytrax, following Air France, Lufthansa from Germany, and Emirates Airlines from UEA.

The service quality of Vietnam Airlines has been continuously improving, reaching 90 per cent of Skytrax’s criteria for four-five star airlines. The customer satisfaction index was 3.83 out of 5 points, higher than past year’s results as well as expectations. During the nine months of 2017 so far, Vietnam Airlines operated more than 108,271 safe flights.

On July 3, the corporation launched a new 24/7 customer service centre, which is considered a large step forward for service quality.

In the fourth quarter of this year, Vietnam Airlines will launch special economy class for domestic flights with numerous advantages compared to the exiting economy class.

Previously, Vietnam Airlines opened three business lounges in the international and domestic terminals of Noi Bai and Tan Son Nhat international airports.

HCMC credit growth reaches 13.5% in 9 months
Outstanding loans of commercial banks in HCM City in the first nine months of 2017 rose 13.5 per cent against December last year to more than VND1.67 quadrillion (US$73.57 billion), the city People’s Committee report stated.

Of the total, loans in Vietnamese dong accounted for 90.4 per cent, equal to more than VND1.5 quadrillion, up 13.2 per cent against December last year. Loans in foreign currencies made up VND160 billion, up 15.4 per cent.

Non-performing loans accounted for 4 per cent of the city’s total outstanding loans, down 0.04 percentage points against December last year.

HCM City-based commercial banks during the period lent VND152.77 trillion to 37,920 customers in the Government’s five prioritised industries of agricultural production, export business, production of small and medium-sized enterprises (SMEs), supporting industry and high-tech production, of which loans to SMEs made up the highest proportion of 64.4 per cent, or VND98.44 trillion.

The committee also reported that the banks mobilised VND1.94 quadrillion in the first nine months, up 9.2 per cent against December last year.

Of the total capital, deposits in dong reached over VND1.7 quadrillion, accounting for 87.9 per cent and rising 9.6 per cent against December last year. 

Vegetable, fruit exports hoped to hit record high

Vegetable and fruit export revenue is hoped to hit a new record of US$3.6 billion in 2017, with bumper crops forecast for the rest of the year.

As of September 15, exports of the products hit US$2.49 billion, up 46.7% from the same period last year, faster growth than the country’s overall export growth.

Last year, vegetable and fruits ranked 14th out of 24 products with export revenue of over US$1 billion, above crude oil, rice, plastics and steel.

Currently, Vietnam has about 820,000 hectares of fruit farms, including 92,000 hectares of rambutan, 86,000 hectares of citrus fruit trees, 84,000 hectares of mango, 73,000 hectares of longan and 1,000 hectares of grape farms.

Output of longan this year is forecast to reach 512,000 tonnes, while that of citrus fruits is 741,000 tonnes, rabuttan 721,000 tonnes and mango 702,000 tonnes.

Thanks to agricultural reform and the development of agricultural technology, the production of fruits is rising.

In the first eight months of this year, Vietnamese fruits were sold in 14 foreign markets with leading ones including China, Japan, the US, the Republic of Korea, the Netherlands, Malaysia and Thailand.

Gia Lai gives nod to solar power plant
The Central Highlands province of Gia Lai’s People’s Committee has given the go-ahead to the Gia Lai Electricity JSC, to invest in a solar power plant.

The 49MW plant, which will be located in Chu Gu Village, Krong Pa District, will be built on an area of 76ha at a cost of US$63 million to generate and distribute solar power.

It will operate for 50 years. Construction of the plant will start in the first quarter of next year and will be completed by the second quarter of 2019.

The People’s Committee asked Gia Lai Electricity JSC to develop an environment protection plan, and to submit it to the relevant authorities for approval.

The committee will withdraw the decision according to investment regulations, if the investor fails to implement the project or is unable to implement it, as scheduled after 12 months as of the date of receiving the investment decision. 

VN stocks fall on energy, bank shares
Vietnamese shares fell on both local exchanges on Wednesday as energy, brokerage and bank industries dropped on profit-taking.

Viet Nam’s benchmark VN Index on the HCM Stock Exchange lost 0.20 per cent to close at 803.77 points. The benchmark index has declined by total 0.4 per cent in the last three sessions.

The HNX Index on the Ha Noi Stock Exchange slipped 0.36 per cent to end at 107.52 points. The northern market index posted its first loss following a five-sesion rally of total 3 per cent.

Market trading liquidity declined from Tuesday. More than 221.8 million shares were traded on both local exchanges, worth VND4.32 trillion (roughly US$192 million).

Wednesday’s trading figures were down 11.7 per cent in volume and 6.2 per cent in value compared to the previous session.

Energy, brokerage and banking sectors were to blame for the decline of the two local exchanges on Wednesday.

The energy sector was driven down by PetroVietnam Drilling and Well Services (PVD), PetroVietnam Coating (PVB) and PetroVietnam Mud Drilling (PVC), which dropped between 1.2 per cent and 2 per cent.

The main reason for the fall of energy stocks came after Brent crude lost steam on Tuesday, finishing the trading day at $58.44 a barrel and ending a four-session gain of 7 per cent since September 19.

Bank stocks were led down by Sacombank (STB) and Asia Commercial Bank (ACB), which fell 2 per cent and 1.6 per cent, respectively.

STB had soared 8.2 per cent in the previous two sessions and ACB had rallied total 8.5 per cent in the previous seven trading sessions.

Among declining brokerage stocks were HCM City Securities (HCM), Thien Viet Securities (TVS), Agribank Securities (AGR) and MB Securities (MBS).

On the positive side, the real estate sector was lifted by Vingroup (VIC), which jumped 3.4 per cent to extend gains for a second day with total growth of 4.3 per cent.

Vincom Retail, the retail arm of Vingroup, has submitted a listing registration document to the HCM Stock Exchange to trade total 1.9 billion shares on the southern market.

Bao Viet Securities Company (BVSC) said in its daily report that investors seemed unwilling to reduce the selling pressure on local stocks while the market demand remained weak, leading to underperformance of large-cap shares.

Trading liquidity weakened, proving that investors were losing confidence in the market, BVSC said, adding that the stock market will likely continue declining in coming sessions.

SE VN needs better links: forum
The south-eastern region has grown rapidly and enjoys a number of advantages, but also faces many hurdles, especially to inter-provincial connectivity, a forum heard in HCM City on Tuesday.

To overcome this handicap, breakthrough development mechanisms with more efficacious and concerted regional development policies are required, Vu Tien Loc, chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) told the forum titled “Economic restructuring and growth model transformation based on inter-provincial linkage”.

The region has more economic advantages than others, he said.

“The south-eastern region has HCM City, the nation’s biggest economic hub with many multinational corporations doing business.”

It contributes 40 per cent of the country’s GDP and nearly 60 per cent of the Government’s revenues, its average income and economic growth are 2.5 times and 1.4-1.6 times the national average, he said.

Cao Duc Phat, deputy head of the Central Economic Commission, said: “In the last few years, the south-eastern region has achieved sustainable development and rapid growth in many sectors like electronics, software, logistics, finance, telecom and tourism. 

“The region has also developed some key industries such as oil extraction and processing, steel, power, IT, chemicals, fertilisers and construction materials, which are very important for national and regional industrialization.”

Tran Dinh Thien, head of the Viet Nam Economics Institute, said: “Generally, economic growth in the region is higher than in other parts of the country, and it is the biggest industrial hub with a lot of industrial parks in HCM City, Binh Duong, Dong Nai and Ba Ria – Vung Tau.”

It has good port and logistics systems and infrastructure, many scientific research and training centres, and skilled and plentiful human resources, he said.

“These factors have created an attractive investment environment.”

Loc said however that connectivity is still very weak in the region.

“Each locality develops its own strengths and lacks effective connectivity for development strategies and master plans for infrastructure and human resources.

“Importantly, enterprise communities lack connectivity.”

Thien said while admittedly the region has achieved a higher level of development than other parts of the country, it has not fulfilled its potential.

“There is no regional development strategy or policy. The lack of connectivity is one of the biggest challenges for regional development.

“There is not yet concern about regional development because now regional economic growth is mostly based on key localities like HCM City, but there are no policies to promote the role of key localities in the general development of the whole region.”

Phat said: “The south-eastern region has not successfully switched to the new economic growth model with high value-addition and modern governance using technology and knowledge playing the key role in decision making.

“Furthermore, infrastructure has not caught up with socio-economic development. Roads, waterways and ports are not well linked and there is no high-speed road or rail.”

There are isolated and poorly connected urban areas, many industrial parks have the same functions, and HCM City and provinces compete with each other for investment, and these mean the region’s development is far below its potential, he said.

“Policies to improve regional connectivity should be issued to create a united regional economy based on collaborative master planning, infrastructure development and investment policies and connectivity between industrial parks and services,” Phat said.

“A region-wide administrative service should be set up gradually.”

He suggested that HCM City should be appointed chairman of the region and the prime minister should be the head of the regional steering committee.

“The region should have [joint] policies for investment, infrastructure, economic zones and industrial parks, and set up regional investment funds and promotion campaigns.”

The role of the private sector in developing infrastructure should be strengthened.

HCM City and provinces should have a breakthrough mechanism to usher in modern corporate management and attract foreign and private investment in infrastructure, especially roads, industrial parks and services.

Thien said: “The government should have new master development plans for the region with a different vision with the roles of HCM City, the Southern Economic Key Zone and the south-eastern region clarified.”

He also said the concept of region-wide development should be highlighted and every provincial strategy and master plan subordinated to regional strategy and plan.

With its high urban density and population, the region should focus on developing a chain of urban areas, achieving breakthroughs in urban administration and increasing the role of the private sector in providing public services, he added.

Singapore investor to build Ha Tinh port
Phoenix Vung Ang Viet Nam Company Limited, a subsidiary of Singapore’s Freight Links Capital Pte Ltd, held a groundbreaking ceremony to construct the Phoenix port at the central province of Ha Tinh’s Vung Ang Economic Zone on Wednesday.

The port is located in Vung Ang port area, Ky Loi Ward, Ky Anh District, Ha Tinh Province.

The project has total capital investment of VND2.1 trillion (US$92.5 million) and includes a harbour, warehouses, two wharves, a container port and a bulk port with designed capacity of five million tonnes per year, which can accommodate vessels of up to 70,000DWT.

Construction is planned to be completed within 18 months from the date of commencement.

Once operational, the port is expected to promote sea transport under the multimodal transport system; increase export and import of goods in the provinces of Nghe An, Ha Tinh and Quang Binh; attract domestic and foreign investors to invest in Vung Ang Economic Zone; and create conditions for Ha Tinh to carry out the industrialisation and modernisation programme.

Viet Nam’s trade value up 21.4% in nine months
Viet Nam witnessed a year-on-year increase of 21.4 per cent in total trade value from January 1 to September 15 to US$289.14 billion, according to the General Department of Customs.

However, total trade value in the first half of September dropped by 11.7 per cent to $2.44 billion against the same period last year.

Meanwhile, the nation gained trade surplus of $100 million in the first half of September, while it recorded a deficit of $701 million in the period from January 1 to September 15.

In the first half of September, national export revenue reduced by 17.4 per cent to $9.21 billion compared with the last 15 days of August. However, export value in the period from January 1 to September 15 increased by 20.1 per cent to $144.22 billion against the same period in 2016.

The national import value in the first half of September was $ 9.11 billion, 5.1 per cent lower than the figure in the second half of August, while the import value gained year-on-year growth of 22.7 per cent to $144.92 billion.

Also in the first half of September 2017, foreign-invested (FDI) enterprises reached some $12.6 billion in trade value, down 9.5 per cent compared with the second half of August 2017.

From the first day of this year to September 15, the trade value of FDI enterprises reached some $189.54 billion, accounting for 65.6 per cent of the total national trade value and 23.5 per cent higher than the same period last year.

FDI enterprises saw trade surplus of $854 million in the first half of September 2017 and $14.07 billion in the period from the beginning of this year to September 15. 

Customs signs co-operation agreement with logistics association
The Customs Supervision and Management Department under the General Department of Viet Nam Customs (GDC) signed a co-operation agreement with the Viet Nam Logistics Association (VLA) on Tuesday.

Under the agreement, action plans will be launched to improve the national logistics sector’s competitiveness.

Customs authorities will work closely with VLA to boost the development of logistics services throughout the country, supporting logistics enterprises to improve their operation effectiveness and enhancing supervision and management of logistics business. 

The two sides also aim at strengthening the link between logistics enterprises in the country and between enterprises and customs authorities.

GDC Deputy General Director Vu Ngoc Anh said customs authorities have actively co-operated with the business community and VLA in the development of logistics-related legal documents as well as in the detection and handling of problems related to the law enforcement process.

He added that the customs sector had received contributive comments and feedback from enterprises, based on which it could promptly make adjustments in line with practical conditions. The two sides would discuss solutions to support each other in logistics activities, making Viet Nam a regional logistics centre.

VLA said it would actively co-operate with customs authorities in the modernisation and management of logistics services to support and strengthen the country’s export and import activities. 

Ministry drafts legal amendments to aid local garment exporters

The Ministry of Industry and Trade is drafting legal amendments to help domestic garment producers cut costs and reduce administration burdens amid many difficulties facing the industry this year.

According to the Ministry of Industry and Trade, the global demand for textiles and garments fell in the first eight months of 2017. Wages for workers and logistics costs have been rising, putting local garment exporters under pressure, particularly in the face of fierce competition from regional rivals like Bangladesh, Myanmar and Cambodia.

Garment makers from these countries have greatly benefited from their governments’ preferential policies that included tax cuts and currency devaluation to boost exports. They have also enjoyed favourable treatment from the US and the European Union (EU). 

According to Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang, the sector aims to export about 30 billion USD worth of textiles and garments in 2017. The US is expected to be the biggest buyer, accounting for 50 percent of exports, followed by the EU (20.5 percent), Japan (19.5 percent), and the Republic of Korea (7.5 percent).

Though the country’s exports rose by 9.9 percent in the first eight months of this year to 19.8 billion USD, the ministry worries the export target may not be met as there will not be many big orders for the remaining months.

The ministry asked domestic producers to join foreign supermarket chains in Vietnam and attend overseas product promotion and business-matching events. 

It also asked state agencies to support domestic textiles and garment exporters in administrative procedures to help them overcome obstacles.

VN stocks fall on energy, bank shares

Vietnamese shares fell on both local exchanges on September 27 as energy, brokerage and bank industries dropped on profit-taking.

Vietnam’s benchmark VN Index on the HCM Stock Exchange lost 0.20 percent to close at 803.77 points. The benchmark index has declined by total 0.4 percent in the last three sessions.

The HNX Index on the Hanoi Stock Exchange slipped 0.36 percent to end at 107.52 points. The northern market index posted its first loss following a five-session rally of total 3 percent.

Market trading liquidity declined from September 26. More than 221.8 million shares were traded on both local exchanges, worth 4.32 trillion VND (roughly 192 million USD).

September 27’s trading figures were down 11.7 percent in volume and 6.2 percent in value compared to the previous session.

Energy, brokerage and banking sectors were to blame for the decline of the two local exchanges on September 27.

The energy sector was driven down by PetroVietnam Drilling and Well Services (PVD), PetroVietnam Coating (PVB) and PetroVietnam Mud Drilling (PVC), which dropped between 1.2 percent and 2 percent.

The main reason for the fall of energy stocks came after Brent crude lost steam on September 26, finishing the trading day at 58.44 USD a barrel and ending a four-session gain of 7 percent since September 19.

Bank stocks were led down by Sacombank (STB) and Asia Commercial Bank (ACB), which fell 2 percent and 1.6 percent, respectively.

STB had soared 8.2 percent in the previous two sessions and ACB had rallied total 8.5 percent in the previous seven trading sessions.

Among declining brokerage stocks were HCM City Securities (HCM), Thien Viet Securities (TVS), Agribank Securities (AGR) and MB Securities (MBS).

On the positive side, the real estate sector was lifted by Vingroup (VIC), which jumped 3.4 percent to extend gains for a second day with total growth of 4.3 percent.

Vincom Retail, the retail arm of Vingroup, has submitted a listing registration document to the HCM Stock Exchange to trade total 1.9 billion shares on the southern market.

Bao Viet Securities Company (BVSC) said in its daily report that investors seemed unwilling to reduce the selling pressure on local stocks while the market demand remained weak, leading to underperformance of large-cap shares.

Trading liquidity weakened, proving that investors were losing confidence in the market, BVSC said, adding that the stock market will likely continue declining in coming sessions.

Vietnam promotes tourism at Paris international fair

A Vietnamese stall is offering a warm welcome to visitors at the Top Resa international tourism fair, which runs in Paris from September 26 to 29.

The Vietnamese area features the nostalgic décor of ancient walls and tiled roofs inspired by Hanoi’s old quarter. The space is filled with the sound of folk music performed live by two Vietnamese artists.

On the sidelines of the fair, Vietnam organised a conference to promote Hanoi tourism, where Vietnamese Ambassador to France Nguyen Ngoc Son called on travel agencies in Paris to extend their reach to Vietnam and its capital city.

The diplomat also lauded operations of French tour operators in Vietnam, hoping their success will encourage more French businesses to come to the country.

Nguyen Anh Dung, deputy head of the Hanoi Tourism Department, noted Hanoi is attractive to visitors thanks to affordable prices, scenic sites, and delicious food.

According to him, the capital welcomed 4.2 million foreigners last year, up 23 percent against 2015. In the first eight month of 2017, foreign arrivals to the city reached 3.7 million, an annual increase of 21 percent.

VinGroup puts into operation biggest private hospital in Da Nang

Vinmec Da Nang, a member of Vingroup’s high-end hospital chain, was inaugurated in the central coastal city of Da Nang on September 27.

Built at a cost of more than 1.2 trillion VND (52.8 million USD), the facility covers some 37,000 square metres.

It includes 222 beds and caters to demand for general treatment.

The hospital, the biggest private hospital in Da Nang, was among four establishments chosen for medical services for the APEC 2017 Economic Leaders' Week hosted by the city this November.

Vingroup operates similar hospitals in Hanoi, Phu Quoc, HCM City, Nha Trang and Ha Long.

Ba Ria-Vung Tau province pushes equitisation of SOEs

Vice Chairman of the People’s Committee of the southern coastal province of Ba Ria-Vung Tau Nguyen Thanh Long has urged relevant agencies to supervise the restructuring of State-owned enterprises (SOEs).

At a working session on September 26, Long asked the provincial Department of Finance (DoF) to continue advising the committee on the divestment schedule for local SOEs and to supervise State capital at these firms.
The provincial Department of Natural Resources and Environment will ensure the effective use of SOEs’ land while the provincial Department of Agriculture and Rural Development will be responsible for restructuring the provincial Forestry One-Member Co. LTd. into a two-member company.

According to the DoF’s report, from 2014 – 2016, there were 22 SOEs and State-invested firms in the province. Of which, the State owned 100 percent of the charter capital of three, 50 percent of nine, and below 50 percent of 10.

Those in public services, such as lottery, water supply and sewage, tree caring, transport operated stably while those in estate, tourism, trade, forestry were less effective.

From 2016 – 2020, the province is planning to equitise and divest state capital from 17 SOEs. One of which has 50 percent of its charter capital held by the State, 15 others are below 50 percent, and one will be restructured to a two-member company.

During the 2002 – 2016 period, 38 SOEs in the province were equitised, garnering 862 billion VND (37.92 million USD) for the State Capital Investment Corporation (SCIC).

APEC backs businesswomen

Việt Nam plans to lift the number of female managers to 350,000 when it has one million businesses, hopefully by 2020, Chairwoman of the Việt Nam’s Women’s Union, Nguyễn Thị Thu Hà, told the opening of the APEC Efficiency and Success Target Awards on Wednesday.

Women are presently in charge of 28 per cent of businesses in Việt Nam.

The awards, one of highlights of the APEC 2017 Women and Economy Forum, featured female owners from 21 APEC member economies.

"We are co-hosting the award with Russia this year," Hà said. "The awards focus on digitalisation and information technology for traditional small and medium sized enterprises – the most vulnarable business group.”

“It’s the second time that the awards have been held on the sidelines of APEC meetings," Ha said. "The activity is one of the most important supports for women entrepreuners in calling more investment and international partners.” 

Hà said the awards would help create networks for businesswomen as well as improve the capability of enterprises managed by women.

“Twelve candidates entered this year’s award, of which three were from Việt Nam," she added.

According to a report from the Việt Nam’s Women’s Union, small and medium sized enterprises control 97 per cent of the country’s businesses, contributing 41 per cent of GDP and 33 per cent of the State budget. They also created 77 per cent of jobs each year.

Nadiya Cherkasova, head of the committee on Women’s Entrepreunership Development, said businesswomen needed much support from governments and organisations in doing businesses.

“Women have plenty of potential, but we need assistances and support in finance, information and education. Women also have to take care of family responsibilities while working in the office. It’s hard to balance the two tasks,” Cherkasova said.

“Most women think they are stuck on the floor and can never reach the ceiling, so governments of APEC members should think about how to help,” she said.

The Russian banker said she had to overcome difficult times five years ago when she had three children – a seven year-old daughter and five year-old twins.   

She said governments and organisations should help businesswomen or state servants with more support in finance, education and children care.

On the sidelides yesterday, the ministry of transport, in co-operation with the US department of transport, also hosted APEC’s Women in Transport: Gauging progress in moving forward.

The APEC 2017 Women and Economy Forum will continue on Thursday with Public and Private Dialogue on Women’s Entrepreunership.

Reference exchange rate up by 6 VND

The State Bank of Vietnam (SBV) set its reference VND/USD exchange rate at 22,470 VND/USD on September 28, up by 6 VND from the previous day.

With the current /- 3 percent VND/USD trading band, the ceiling exchange rate is 23,143 VND per USD and the floor rate is 21,797 VND per USD. 

The prices of USD at major commercial banks almost remained unchanged.

Vietcombank kept its buying rate at 22,695 VND and selling rate at 22,765 VND, per USD, unchanged from the rates set on September 27.

BIDV also offered 22,695 VND (buying) and 22,765 VND (selling), per USD, both down 5 VND from a day ago.

Meanwhile, Techcombank set its buying rate at 22,680 VND per USD and selling rate at 22,775 VND per USD, unchanged from the previous day.

Binh Duong vows open, transparent climate for investors

The southern province of Binh Duong pledges to ensure an open and transparent business environment and provide optimal conditions for investors, said Chairman of the provincial People’s Committee Tran Thanh Liem.

At a meeting with foreign investors on September 26, Liem said the province will continue improve the investment climate to raise its competitiveness and increase support for businesses’ development.

It will focus resources on completing socio-economic infrastructure, expanding industrial zones, training human resources, building social houses for workers.

The locality will develop high quality services to meet demands of enterprises while ensuring political security, social order and safety, he added.

The local authorities also answered all questions raised by investors related to social and medical insurance, taxes, natural disaster prevention and control of funds and overtime shift.

Liem said that ideas related to legal issues at the meeting would be collected and submitted to the Government in order to help enterprises solve problems.

The province reported that it had attained 140 percent of its annual target in foreign direct investment (FDI) during the first nine months of the year.

The provincial Department of Investment and Planning said total FDI in the first nine months of the year stood at nearly 1.97 billion USD, a jump of 27 percent compared with the same period last year.

During the period, the province attracted 148 new projects valued at a total of 1.165 billion USD.

Another 87 projects added capital of 765 million USD, according to the department. About 90 percent of the projects are in industrial zones.

Binh Duong has a total of nearly 3,000 FDI projects, worth over 27.7 billion USD from 60 countries and territories.

“The provincial investment environment has improved towards sustainable development. The advantageous fields in the province such as the electrical power industry, electronics, mechanics, pharmaceuticals, chemicals, and service and trading (and others) have attracted investors,” said Nguyen Thanh Truc, Director of the Department of Investment and Planning.

“The number of foreign investors visiting Binh Duong to study the investment environment has increased significantly year on year,” he said.

In order to create a better investment climate, the province’s leaders and authorities work regularly with investors to learn about their difficulties and help them solve problems. This is the second time that the province has met with investors this year.

Truc said that during the past years, Binh Duong had invested in infrastructure, especially the transport network, which facilitates connections with HCM City, the Mekong Delta, the Southeast region and southern Central Highlands.

Many important transport routes have been invested and put into operation such as Binh Duong Boulevard and My Phuoc – Tan Van, which connects industrial parks with seaports and airports.

The industrial parks, new urban areas and services are highly developed to better serve investors.

Currently, the province has 28 industrial parks with a total area of over 10,560 ha and 71 percent of rental rate. It also has 11 industrial clusters with total 802 ha with a 55 percent rental rate.

The province has also approved a master plan for industrial park development. By 2020, there will be 34 industrial parks with total area of nearly 15,000ha.

An industrial - service - urban complex has been established on an area of 4,000ha with a total of 400,000 residents. The complex has spurred development of new urban areas in neighbouring localities for the Bau Bang service and urban area.

Binh Duong is located in the centre of the southern key economic zone, the most dynamic region of the country. It is a strategic traffic gateway between the Central Highlands region, central provinces and HCM City.

FDI is an essential source for the province’s socio-economic development and economic structure.

Last year, FDI contributed over 49 percent of total social investment, over 67 percent industrial production value, and over 82 percent of export turnover to the province.

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