BUSINESS IN BRIEF 6/2 US$249 million of further investment poured into Danang hi-tech park   Da Nang’s Hi-tech Park has attracted 10 projects with a total investment of US$249 million, including three Japanese-invested projects and seven by local businesses. At present, two wholly Japanese invested businesses in the field of precise mechanics have been put into operation with their annual turnover and export values reaching more than US$65 billion. For 2018, the management board of Da Nang Hi-tech Park is set to lure more than four projects totally capitalized at over US$100 million with a focus on strategic investment in hi-tech, energy saving, and clean technology development. The more than 1,500 ha park has so far received in excess of VND8,841 billion in total investment. PAN Farm raises its Sao Ta stake      The PAN Group’s agriculture business, PAN Farm JSC, has completed its public bid for nearly 11.5 million shares, an equivalent to 29.47 per cent in Sao Ta Foods JSC, lifting its ownership here to 34.17 per cent from 4.7 per cent. At the bidding price of VND23,000 (US$1) per share, PAN Farm has spent more than VND264 billion ($11.6 million) for the purchase. The transaction was finished on January 31 after two months of making the public bid offer. The shares of Sao Ta Foods (FMC) has rallied nearly 7 per cent for the last four days, trading around VND27,000 per share on the HCM Stock Exchange. In the filing to the State Securities Commission and HCM Stock Exchange on February 1, PAN Farm said the company currently holds more than 13.3 million shares of Sao Ta Foods, or 34.17 per cent of its capital, and becomes its major shareholder. In addition to securing a long-term investment, through the takeover, PAN Farm aims to expand production this year, the company said. PAN Farm, with a charter capital of VND1.22 trillion, focuses on farming solutions and plantation. Meanwhile, Sao Ta Foods is one of the three biggest shrimp exporters in Viet Nam. Prior to this purchase, another subsidiary of PAN Group, Aquatex Ben Tre JSC, acquired a 20.1 per cent stake in Sao Ta Foods in November last year. Therefore, PAN Group currently holds 54.3 per cent interest in the shrimp producer, and its business results will be consolidated into PAN Group’s financial statements from this year. Through a number of merger and acquisition (M&A) deals in agriculture and foodstuff sectors, PAN Group is taking over many leading companies in these industries, including confectionery Bibica, Long An Food Processing Export (Lafooco), Vinaseed, Southern Seed, Aquatex Ben Tre and now Sao Ta Foods. In 2017, Sao Ta Foods reported a total revenue of VND3.3 trillion and a net profit of VND122 billion. Forex rates surge against VND      Except for the US dollar, foreign currencies have surged against the Vietnamese dong during the last month as demand for foreign goods increases ahead of the Tet (Lunar New Year) holiday. At Eximbank, foreign exchange rates of multiple currencies are now up from 1.9 to 5.1 per cent over the previous month. On February 2, the British pound increased sharply by VND1,600 per pound against Vietnamese dong, a rise by 5.1 per cent. One pound is now selling for VND32,532. The Swiss franc increased by VND1,140 per franc, a rise of 4.8 per cent. One franc is buying and selling for VND24,298 - 24,615, respectively. Meanwhile, the euro rose by VND1,015, or 3.7 per cent (VND28,138 - 28,505 per euro). The New Zealand dollar increased by VND555, or 3.4 per cent (VND16,567 - 16,834 per New Zealand dollar) Other currencies rates have also increased, including the Australian dollar (VND370, or 2 per cent) and the Canadian dollar (VND350, or 1.9 per cent). Some foreign currencies in Asia also climbed. The Japanese yen increased by VND5, or 2.5 per cent, (VND205.4 - 208.12), the Singapore dollar increased by VND240, or 1.4 per cent (VND17,176 - 17,400) while the Thai baht surged by 3.5 per cent or 25 dong a baht (VND702 - 733). The increase in foreign exchange rates could make the prices of goods imported from these countries increase. Nguyen Van Hung of District 3 now has to pay an additional VND1.2 million to buy NZD2,000 of cash for his children to study in New Zealand. Duong Anh Vu, head of the Analysis Desk in Viet Nam Gold Investment and Trading Joint Stock Company (VGB), said there was nothing particular about recent economic data in Europe and Japan that would lead to the increase in the exchange rate. The US dollar has continued to decrease. The USD Index decreased to 88.71 points, the lowest during the last four years. The Fed raised the interest rates for three times in 2017 and more hikes are expected this year, according to Vu.  2018 rice export to hit 6m tonnes      Viet Nam’s rice export volume in 2018 is expected to increase by 400,000 tonnes from 2017 to reach 6 million tonnes, due to increased demand from Southeast Asia, especially from the Philippines, with China expected to be the country’s largest rice market. The Vietnam Food Association (VFA), in a report earlier in January, said countries in Southeast Asia will import a large amount of rice from Viet Nam, helping boost the country’s turnover this year. The VFA said Indonesia will import rice from Viet Nam and Thailand again in 2018 to increase reserves, as Indonesia’s rice price has been rising, almost double the floor price. Similarly, the National Food Board of the Philippines approved of up to 250,000 tonnes of imported rice to offset declining inventories, due to unfavourable weather in 2017. These developments are encouraging for Viet Nam’s rice export market, said the VFA’s report, with export price of 5 per cent broken rice rising to US$400 per tonne from $390. Domestic rice price also increased, with the average price between to $267 to $293 per tonne as of January’s end, having increased by $13 to $15 per tonne from December 2017’s price. According to the VFA’s data, throughout 2017, the country exported 5.7 million tonnes of rice worth $2.54 billion. As mentioned by the US Department of Agriculture (USDA)’s 2018 world rice production forecast, issued late 2017, the main factor behind this year’s rice trade expansion is increased output from Viet Nam, Pakistan and Myanmar, three of the world’s top six rice exporting countries. The USDA’s report stated that though 2017 global rice output fell by 20 per cent from 2016’s number, as a result of weak outlook for grain products, long, heavy rainfall and spring floods and other unfavourable weather, meaning there should be positive signals from traditional rice importing markets in Southeast Asia in early 2018. In Bangladesh and Sri Lanka, whose rice crops were heavily influenced by harsh weather, demand for rice imports will also increase in 2018. Rising import demand is supported by increased purchasing power in Africa and the Middle East, while China continues to be a leading importer of rice from neighbouring regions. As such, Viet Nam will witness an increase in revenue from rice exports to several large consumer markets. According to the Department of Crop Production under the Ministry of Agriculture and Rural Development, in early January 2018, the Mekong Delta’s rice producers harvested 860,000 hectares of rice, with an average yield of 5.3 tonnes per hectare. Nonetheless, problems remain for national rice production, the majority of which stem from farmers’ ignorance. Talking to Vietnam News Agency during a late 2017 agricultural conference in the Mekong Delta, Vo Tong Xuan, former vice rector of Can Tho University and rice expert, emphasised growing competition in global rice markets. Xuan warned that Viet Nam needs to find ways to make its rice exports stand out if it wants to achieve export targets. Regarding export rice quality, he was convinced that since rice merchants often mix different batches from different farmers into one large batch, there is virtually no way to completely track the origin of any batch. Without clear origin, there are no certain product quality controls, and no major national rice brand for Viet Nam, Xuan added. He suggested issuing contracts between rice farmers and processing plants for sustainable production, via agricultural co-operatives instead of relying on middlemen. Xuan also said that there remain regulations acting as barriers to small and medium enterprises from entering the rice market. Exporting low quality rice and fragrant rice without a brand name is becoming increasingly difficult for Viet Nam, especially in finding niche markets to sell several thousand tonnes.  RoK encourages partnerships with Vietnamese businesses Minister of Trade, Industry and Energy of the Republic of Korea Paik Un Gyn has affirmed that his country encourages its businesses to ratchet up investment and cooperation with Vietnamese partners helping to increase the local contents in locally-made hi-tech products and reduce Vietnam’s trade deficit. The Minister made the affirmation on February 3 during his visit to Minh Nguyen Supporting Industries JSC – one of the first domestic firms to be chosen by Samsung Group to take part in the direct supply chain of components for the Samsung Electronics HCMC CE project worth nearly 2 billion USD at the Saigon Hi-tech Park, Ho Chi Minh City. He spoke highly of the pro-activeness of the company and other Vietnamese businesses in studying and applying new technologies in production and business. He suggested Vietnamese businesses contact Korean functional agencies when they meet with difficulties to receive the assistance they needed. According to the Minister, since the two countries set up their diplomatic ties in 1992, their two-way trade hit 58.5 billion USD as of November 2017. Vietnam is an important economic partner of the RoK in Southeast Asia and the two countries are working to bring their trade value to 100 billion USD by 2020. The RoK is the second largest foreign investor, after Japan, in Vietnam in 2017 with total registered capital of 8.49 billion USD.  Fuel price hike strains businesses Businesses are trying to keep the prices of consumer goods down despite recent fuel price hikes. The price of E5 RON 92 petrol was increased on January 19 by 429 VND to 18,672 VND (82.3 US cent) per litre, and experts said this hike just before Tet would have a knock-on impact on the prices of many goods. Since the prices of electricity and fuel make up around 5 percent of the production cost of a number of essential goods, the fuel price rise would cause the prices of other goods to increase by 3-4 percent. According to the Ministry of Industry and Trade’s Department of Domestic Market, the prices of essential goods for Tet such as pork, fruits and vegetables can rise by 15-20 percent, while the prices of confectionery, wine and beer and other beverage are expected to see smaller increases. Since global fuel prices have shown no signs of falling, relevant agencies should consider measures like lowering tax and discount rates for oil distributors to keep fuel prices steady in the domestic market, a ministry spokesman said. Trade expert Vu Dinh Phu said the best solution is to not hike fuel prices, with authorities using price stabilisation funds to keep fuel prices steady. Many businesses said the recent fuel price hike has not yet affected the prices of essential goods since they had stocked large volumes for Tet. But the prices of some other essential goods like fruits, vegetable, fish and meat could now rise by 10-15 percent in wholesale markets, they said. Some businesses said they would settle for lower profits since they had promised customers they would not raise prices for Tet. A spokesman from Big C said the supermarket is committed to keeping the prices of some 11,300 kinds of goods unchanged until the last day of this lunar year. Thus, the prices of these goods would not be hiked even if fuel prices affect their prices in the market, he said. While saying the cost of raw materials, electricity and others affect the prices of its products, the Sai Gon Food JSC also promised it would not hike prices during Tet. Most retailers stockpiled goods a month ahead of the festival, and as a result many shopping centres and malls will continue with their promotion campaigns until Tet. Prices of frozen goods including pork, beef, fish, chicken have remained unchanged and experts said a week before Tet their prices at supermarkets could be 10,000-20,000 VND per kilogramme cheaper than in traditional markets. But the prices of these goods could rise after Tet due to the higher transport costs. At a recent seminar, Nguyen Tien Thoa, General Secretary of the Vietnam Association for Prices Assessment, said the prices of goods are expected to remain steady in 2018, but a number of public services such as electricity, water and education and healthcare could become dearer. Therefore, oil firms should only raise fuel prices at “appropriate” points of time, he said. “Firms should not announce a fuel price hike before Tet when power demand is on the rise.” In the long term, measures should be taken to reduce costs for businesses, including by reducing taxes and fees, he said. Relevant agencies should consider initiatives to lower interest rates on bank loans, he added. Tien Giang earns 220 million USD in January’s exports The Mekong Delta province of Tien Giang earned 220 million USD in exports in January, a rise of 9.2 percent year on year, according to Director of the provincial Department of Industry and Trade Ngo Van Tuan. Tuan noted that in the month, Tien Giang shipped abroad 30,000 tonnes of rice for 14 million USD, five times higher than that in the same period last year in both volume and value. Meanwhile, growth was seen in many major products of the province, including garments with 6.4 percent to reach 45 million USD and footwear with 19 percent to hit 40 million USD. Its export of copper pipes also fetched 33.6 million USD, an increase of 40 percent. Exports of domestically-invested enterprises accounted for 36 percent of total figure, while that of the foreign-invested sector was 64 percent. Tuan held that strong rise in the first month of this year showed the effectiveness of the locality’s policy in export and investment attraction as well as the efforts of local firms. He revealed that this year, the province aims for export revenues of 2.65 billion USD, up 6 percent compared to 2017. Masan starts meat processing complex in Ha Nam Masan Group on February 4 held a groundbreaking ceremony for its meat processing complex in the Dong Van 4 Industrial Park, Kim Bang district, the northern province of Ha Nam. Addressing the ceremony, Minister of Agriculture and Rural Development Nguyen Xuan Cuong welcomed the large agricultural project of the group, affirming that it will contribute actively to livestock development. He requested the locality to facilitate the group’s project implementation while developing a safe material zone for the project and addressing pollution caused by the livestock sector. The Minister also urged the Masan Group to focus its resources so as the project will be on schedule, as well as ensure material supply, processing methods and expand consumption markets. According to Nguyen Dang Quang, Chairman of the Board of Directors of the Masan Group, the complex will cost over one trillion VND (44 million USD) and sit on 10 hectares in the IP. It will have an annual capacity of 140,000 tonnes of pork. The plant will use Danish technology and operate in line with the standards of the US Food and Drugs Administration, Quang said. Nguyen Xuan Dong, Chairman of the provincial People’s Committee said the project is expected to boost the livestock sector of Ha Nam and the surrounding localities, thus contributing to ending small-scale slaughters and ensuring food safety. Ha Nam currently has 720,000 pigs. A planning has been made on pig farming in 30 communes, hoping to supply 500,000 pigs per year for the processing plant by 2025. Startups expect to attract more investors Vietnamese startups expect to attract more investors this year, Demo Day 2018, held by Vietnam Silicon Valley Accelerator (VSV Accelerator) in Hanoi on February 1, heard. Ms. Tran Thanh Huyen, Co-founder of the startup True Juice, told VET she wants to attract potential investors interested in her business model. True Juice supplies fresh vegetable juice and fruit juice to customers with new recipes and new methods that ensure maximum nutrition. Target customers are office workers, postpartum women, and vegetarians. There were ten outstanding startups making presentations at Demo Day 2018 to explain their idea and persuade investors. Deputy Minister of Science and Technology Tran Van Tung highly appreciated the entrepreneurial spirit on display and said the ministry would support VSV Accelerator in startup projects. Attending the Demo Day 2018 were leaders from the Ministry of Science and Technology, representatives from VSV Accelerator, ten startups, and about 100 investors, including professional investors. Startups included Canets, Fresh Deli, Hue Packaging, True Juice, 689Cloud, Turline by Cores, Roborzoid, Handfree, Winme, and Peko Peko. The startups overcame more than 100 other applicants to appear at Demo Day 2018. They have been accredited by VSV Accelerator and have graduated from its four-month training program. 2018 is the fourth annual Demo Day and is a continuous improvement program. The goal is to provide an opportunity for startups to present their business results and growth potential to investors, thereby establishing a relationship with potential investors and beginning to raise funds. It is also an opportunity for startups to receive feedback from investors and experts to improve their business models. 2017 marked an important transition for VSV Accelerator, with it signing a strategic cooperation agreement with Microsoft Vietnam and Lotte Accelerator to support incubation and startup investments. VSV Accelerator selected ten potential startups for investment and incubation under the agreement. During the last four months of last year, the startups undertook a special training session with VSV Accelerator to perfect business models. Lotte Accelerator was one of the units working with VSV Accelerator to host the Demo Day. VSV Accelerator is a network of more than 40 local and international mentors and investors supporting more than 30 startups, including potential companies like Lozi.vn, TechElite, SchoolBus. Posco E&C to build wharf facility at petrochemical complex South Korea’s Posco E&C has announced it has signed a contract with the Long Son Petrochemicals Company (LSP), the investor of a $5.4-billion petrochemical complex project in southern Ba Ria Vung Tau province, for the construction of a wharf facility costing $680 million, according to foreign newswire Business Korea. The signing indicates that construction of the complex will restart shortly after several delays. LSP, in which Thai conglomerate Siam Cement Group (SCG) holds a 71 per cent stake, is building Vietnam’s first petrochemical complex. The complex has a capacity of producing 1 million tons of ethylene and 1.2 million tons of petrochemical products and is located about 150 km southeast of Ho Chi Minh City. Posco E&C will build 28 petrochemical storage tanks with a total storage capacity of 300,000 tons, raw material transfer pipelines, a wharf for raw material products, and marine facilities. Completion is expected in 2022. In a bid to hasten the long-delayed mega project, SCG recently sought the government’s permission to acquire the remaining 29 per cent stake held by State-owned PetroVietnam to bring its holding to 100 per cent. It also pledged to provide guarantees for a $3.2 billion loan package for the project to move on. But it asked PetroVietnam to issue a commitment to Long Son Petrochemicals to guarantee 29 per cent of the $3.2 billion it will borrow on its behalf. However, PetroVietnam cannot provide such guarantees as a State-owned enterprise, which under Vietnamese legislation are prohibited from providing loan guarantees for a subsidiary in which it holds less than 51 per cent. According to a PetroVietnam report, the project was halted due it the oil giant’s failure to take out loans for the joint venture and conduct procedures for the approval of contract packages. The project was licensed in 2008 with total investment of $3.7 billion and the participation of three companies: SCG, PetroVietnam, and the Vietnam Chemical Group (Vinachem). Vinachem withdrew its capital due to financial difficulties and was replaced by Qatar Petroleum International (QPI). In April 2017, QPI dropped out and sold its stake to SCG. Long Son will be the first petrochemical complex in Vietnam. The operator of the country’s first operational oil refinery, Dung Quat in the central province of Quang Ngai, raised a higher-than-expected $245 million from an initial public offering (IPO) last month. Meanwhile, the Nghi Son Oil Refinery in northern Thanh Hoa province has seen its commercial start delayed due to technical errors. Mr. Roongrote Rangsiyopash, SCG’s President and CEO, told a press conference last July that construction of the petrochemical complex would begin in 2018 and see commercial operations start in 2022. A PetroVietnam executive was quoted as saying last July that site clearance had been completed and investors had selected an engineering, procurement and construction (EPC) contractor. VIMO & Lotte Duty Free come to payment agreement One of the leading mobile payment platforms in Vietnam, VIMO, signed a partnership in Hanoi on February 1 with Lotte Duty Free over the use of a mobile payment platform accepting WeChat Pay (Weixin Pay) from Chinese tourists at its duty free stores at Da Nang International Airport. Chinese tourists are now able to use the WeChat mobile app to scan QR codes generated by the cashier upon checkout at Lotte’s duty free shops at the airport. Payments can be made via QR codes at 41 checkouts in the five store network at Da Nang Airport. Lotte Duty Free shops have many high-quality products, such as cosmetics, watches, wines, medicines, clothes, and jewelry, and the partnership provides a convenient payment method for Chinese tourists and boosts Lotte Duty Free’s revenue. From February 1 to February 28, to welcome in the lunar new year, VIMO and WeChat also launched New Year Lucky Money for Chinese users with formal WeChat accounts. After making a payment at Lotte Duty Free, customers will be randomly refunded up to CNY 888 ($140). Lotte Duty Free will also launch a host of promotional programs from many brands and present valuable gifts during February. VIMO is the largest mobile wallet and the first and only mobile payment platform in Vietnam to allow Chinese customers to pay with WeChat while traveling in Vietnam. It currently has nearly 500 higher-end stores accepting WeChat payments at popular tourist destinations around the country, including more than 50 stores at five international airports with direct flights to and from China. General Director of VIMO, Mr. Do Cong Dien, said it will expand its acceptance network to 2,000 more shops this year to provide convenient payments for Chinese tourists. Vietnam is one of the most attractive destinations in the region for Chinese tourists, with an estimated 3.5 million arrivals and turnover of nearly $3 billion last year. By enabling WeChat payments at thousands of stores locally, VIMO targets to boost spending by Chinese tourists in Vietnam by 10 per cent this year, from an average of $638 in 2017. RISIS releases Zodiac Collection 2018 Greeting its 42nd year of crafting Feng Shui gifts, RISIS is proud to announce its Zodiac Collection 2018 to welcome in the Year of the Dog. The impeccable collection includes six dog figurines, all bearing great wishes to their owners. First to come is Champ, in the shape of a Golden Striver. Exuding poise and strength, it is a majestic golden retriever embodying all things triumphant. Second, Faith is a trusted companion that brings great happiness and is the epitome of “man’s best friend”. Carrying precious treasure for its lucky owner, it symbolizes the arrival of great fortune. Third, Lucky, which joyfully guards a gold coin beneath its paws. Lucky heralds the promise of prosperity arriving from all directions and also symbolizes the successful achievement of one’s goals in the brand-new year, making it an auspicious gift for someone who lives life to the fullest. Fourth is Joy. Grand and elegant, Joy instinctively bounds toward the promise of happiness and ushers in the greatness of spring. Dignified and charismatic, it speaks an assured fulfillment and bountiful blessings. Fifth is Miracle. Playful and carefree, Miracle takes a fearless step into a Hulu-shaped water puddle and turns it into gold. Brimming with optimism, this icon of sheer confidence bears a message of transforming the everyday into opportunities for success. And lastly, Blessings. The Tibetan Terrier is a storied symbol of immense fortune. Adorned with a Ruyi symbol on its paws, it is set to pave the road of success, making wishes come true with every stride. The RISIS Zodiac collection features magnificent 24K gold-plated sculptures lovingly handcrafted by highly skilled artisans, all to bring the great blessings RISIS holds. Each piece is an ideal gift of appreciation, a bearer of good fortune and the perfect companion for anyone. IFC assisting microfinance institutions improve corporate governance The International Finance Corporation (IFC) is helping microfinance institutions in Vietnam improve their corporate governance practices. Dozens of board members and senior executives of Vietnamese microfinance institutions are gathering together in the Mekong Delta’s Can Tho city for a two-day workshop on February 1 and 2 to address common governance challenges they face. Globally, regulators and investors have been supporting company efforts to demonstrate better governance, such as having a robust board, accountable senior management, and effective internal control and risk management practices. “The IFC believes supporting Vietnamese microfinance institutions in strengthening their corporate governance practices will boost their capacity to provide better financial services and expand lending,” said Mr. Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Laos. “This will ensure sustainable growth for the institutions and benefit their key clients - millions of micro-entrepreneurs, primarily women, and low-income households, contributing to poverty reduction in the country.” Studies have shown that stronger governance enhances performance and risk management, which is expected to strengthen microfinance institutions’ ability to cater to the financial needs of microenterprises and low-income earners. Only one in five adults in Vietnam have access to formal financial services and only 8 per cent of them have savings in formal institutions. Microfinance lenders play a critical role in providing financial services to the low-income population, serving an estimated 10 million people, many of whom are women and the poor, according to IFC studies. The workshop will help participants examine their institutions’ key governance functions such as the board, compliance, and internal audit, and develop an action plan for improvements. The workshop is being conducted by the IFC in partnership with the Citi Foundation and the Vietnam Microfinance Working Group, a leading industry forum for microfinance practitioners sharing knowledge and strengthening the sector’s voice in policymaking. More than 30 of its members are microfinance institutions offering financial services. “Vietnam’s microfinance sector is evolving, with many small, non-profit operators hoping to transition into bigger, commercial-oriented entities,” said Ms. Nguyen Thi Tuyet Mai, Managing Director of the Vietnam Microfinance Working Group. “Implementing corporate governance reforms to enhance efficiency, transparency, and risk management will be paramount to their successful transitions.” This initiative is part of the IFC’s Vietnam Microfinance Program, supported by Switzerland’s State Secretariat for Economic Affairs, with the aim of strengthening industry capacity and transparency as well as boosting microfinance institutions’ ability to increase sustainable and responsible financial access. The IFC is a sister organization of the World Bank and member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets. It works with more than 2,000 businesses worldwide, using its capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY201717, it delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. Xiaomi partners with Shopee in mobile phone sales Chinese mobile phone maker Xiaomi signed an official partnership with Shopee, an e-commerce platform in Southeast Asia, on January 31 for the launch of a Xiaomi Official Store on Shopee Mall, as part of its strategy to expand product distribution in Vietnam. To kick-off the partnership, Xiaomi will launch the Redmi 5 through an exclusive flash sale via Shopee on February 7. The price will be the best on the market and available for a limited time only. Customers purchasing a Redmi 5 with their MasterCard receive an additional discount of 10 per cent. “We have been seeing a tremendous increase in confidence in online shopping over the last few years,” said Mr. Pine Kyaw, Managing Director of Shopee Vietnam. “Consumers are buying more and more high value items such as smartphones and other electronic items online. We are therefore delighted to partner with Xiaomi, a global technology leader, to provide greater choice to consumers and strengthen our position in the electronics category. Shopee aims to become a one-stop online shopping destination that caters to the needs and preferences of all Vietnamese.” “We are really excited to partner with Shopee, one of the leading e-commerce platforms in the region with steady growth and potential,” said Mr. Wang Xiang, Xiaomi’s Senior Vice President. “We are confident that this cooperation will help us extend our reach and highlights our commitment to continue to bring more innovative products into the market and provide greater access to technology for more Vietnamese.” Shopee’s users can now stroll through Xiaomi’s official products in Vietnam and all transactions are secure. Through a cooperative arrangement with the Digiworld Corporation (DGW), Xiaomi’s first Mi Store opened last month at Crescent Mall in Ho Chi Minh City’s District 7, as part of its strategy to promote customer care and the customer experience. The opening marks the great progress made by Xiaomi and Digiworld in plans to expand the Xiaomi brand’s presence in Vietnam. Criteo marketing technology boosts Sendo's sales Commerce marketing technology provider Criteo recently announced that its proprietary technology has helped Sendo.vn, a Vietnamese e-commerce marketplace, better support merchants on its platform and engage shoppers with relevant and personalized experiences. Sendo.vn has been working with Criteo since May 2017 and their ongoing collaboration has resulted in a 578 per cent increase in web and app commerce revenue and a 440 per cent increase in total conversion for web and app. Launched in September 2012, Sendo.vn is a subsidiary of major Vietnamese software conglomerate the FPT Group. The company’s business growth was dependent upon its ability to help merchants on its platform better engage shoppers in urban and rural cities and increase sales on the web, mobile web, and its mobile app. While Sendo.vn recognized that using data to build an understanding of shopper behavior would play a crucial role in achieving its goal, its use of different digital marketing systems and tools meant it ended up with disparate datasets. Data integration was therefore inefficient and labor intensive. To address these issues, Sendo.vn turned to Criteo’s dynamic retargeting solutions. Powered by machine learning technology, Criteo’s solutions analyze a shopper’s online browsing patterns and compute their preferences and propensity to purchase. All of these are critical in delivering the optimal number of relevant and personalized ads to encourage each shopper to complete a transaction. This allowed Sendo.vn to deliver the right ad at the right moment in the shopper journey, which is vital in driving conversion rates and meeting KPIs. “Mobile is deeply entrenched in the local shopper journey, especially in cities where PC ownership is relatively low,” said Mr. Alban Villani, General Manager, Southeast Asia, Hong Kong and Taiwan, at Criteo. “It is imperative that commerce providers here avoid siloed campaigns. To drive sales and business growth, they must integrate advanced open data collaboration and mobile capabilities.” “Criteo’s technology allows Sendo.vn to transcend geographical limitations and more effectively engage shoppers in real-time and at scale, across devices and channels. We look forward to continuing to work with Sendo.vn and other players to create the highest performing commerce marketing ecosystem - one that adds value to all local commerce providers who participate, regardless of size.” Vietnam is one of the most mobile-savvy countries in the Asia-Pacific region, with smartphone use among mobile phone users growing to 84 per cent in 2017, according to Nielsen Vietnam’s Smartphone Insights Report 2017. This trend is also visible in secondary cities and rural areas in the country. Mobile use is set to fuel Vietnam’s e-commerce growth, which is expected to increase by 150 per cent by 2022 and amount to $10 billion. “Criteo’s technology delivers intelligence, automation, scale, and most importantly, direct sales,” said Mr. Duc Pham, Deputy Director, Marketing, at Sendo.vn. “By adopting a unified system for our marketing campaigns, we are now able to allocate our resources more efficiently. We have also observed that many customers who live on a city’s outskirts or in rural areas have a desire to purchase items from merchants based in other parts of Vietnam. Working with Criteo has allowed us and our merchants to connect local shoppers with their preferred products, delivering relevant, seamless, and geographically-agnostic shopping experiences.” BSR's 2017 profit up 93% The Binh Son Refining and Petrochemical Co. (BSR), the operator of Vietnam’s first oil refinery, Dung Quat in central Quang Ngai province, has reported a net profit of VND8.66 trillion ($381.5 million) in 2017, an increase of an impressive 92.8 per cent against 2016. It produced 6.1 million tons of petroleum products during the year and posted revenue of VND82.03 trillion ($3.6 billion), up 11.4 per cent from a year earlier, according to a filing on its website after PetroVietnam’s newly-appointed Chairman Mr. Tran Sy Thanh visited the refinery. Other financial indicators also improved considerably. Return-on-equity (ROE) reached 25.57 per cent compared to 14.06 per cent in 2016, while return-on-assets (ROA) rose to 14.08 per cent from 7.49 per cent. The government raised VND5.6 trillion ($245.2 million) from selling a 7.79 per cent stake in BSR at an initial public offering (IPO) on January 17. Winning investors totaled 623, of which 62 were organizations and 561 were individuals. Foreign investors secured more than 147 million shares, or 4.77 per cent of the company. Registrations were made for nearly 652 million shares - 2.7 times higher than the offering - of which domestic investors sought 248 million and foreign investors more than 338 million. Some 4,079 investors registered to purchase shares during the three weeks registrations were open, 3,957 of which were local individual investors, seven foreign individuals, 48 local organizations, and 67 foreign organizations. A further 49 per cent stake will be sold to strategic investors, including both domestic and foreign investors, and the government will retain a 43 per cent stake in the operator of the $3-billion refinery.  BSR is working on a plan to expand its processing capacity to 8.5 million tons of crude oil per year from the current 6.5 million tons. It now meets some 30 per cent of domestic demand. Vietnam needs more refineries, as Dung Quat is capable of meeting just 30 per cent of domestic demand. The Nghi Son Oil Refinery in northern Thanh Hoa province, which is due to begin commercial operations this year, will bring total supply to 80 per cent of demand. Digiworld exceeds 2017 after-tax profit target by 42% Electronics and healthcare distributor the Digiworld Corporation (DGW) recently released its consolidated financial statement for the fourth quarter of 2017. Revenue reached VND3.82 trillion ($168.5 million) and after-tax profit VND78.34 billion ($3.5 million), exceeding the annual plan by 42 per cent. It actually matched the annual after-tax profit plan in the third quarter, reaching VND55 billion ($2.4 million). Sales increased 11.13 per cent year-on-year in the fourth quarter and profit a sharp 106 per cent, due to its gross profit margin improving from 6.9 per cent to 7.97 per cent after it offered full market development services (MES) packages to firms and new product lines that proved more profitable than traditional lines. In computers and tablets, though overall market growth was not high, Digiworld maintained its growth by exploiting niche markets, such as distributing Fujistu computers targeting businesspeople and LG fashion computers for young people or South Korean businesses. The mobile phone business recorded lower growth as the company restructured its product categories and abandoned the distribution of products not contributing much in the way of value. In office equipment, growth was good and stable as more brands had different product categories. The new business of consumer goods was implemented later than planned but made a contribution from the third quarter onwards, so needs more time to complete distribution channels and product diversity. “2018 is a milestone for Digiworld in starting a new itinerary after 20 years of operations and development,” said Mr. Mr. Doan Hong Viet, CEO of Digiworld. The company has set a target for revenue and profit of VND4.7 trillion ($20.7 million) and VND101 billion ($4.5 million), respectively, this year, up 23.03 per cent and 28.92 per cent. “With positive business results in 2017, Digiworld can successfully achieve its ambitions through its experience in providing market analysis and development services and the ability to respond quickly to potential growth in product categories,” he went on. “Higher sales of consumer goods will begin to be seen in all quarters of 2018 and contribute VND200 billion ($8.82 million).” In recent news, the company has partnered with China’s Xiaomi to open the first Mi Store in Ho Chi Minh City’s District 7. The Digiworld Venture Company, a subsidiary of the Digiworld Corporation, announced in late October it had completed a purchase of 50.3 per cent in the CL Company, a fast-moving consumer goods (FMCG) concern in Vietnam. VNN