Thứ Năm, 15 tháng 3, 2018

BUSINESS IN BRIEF 15/3

Lotte Card wholly acquires Techcom Finance

 Lotte Card wholly acquires Techcom Finance, 70 Hong Kong businesses seeking trade ties in Vietnam, Japan bank mulls PetroVietnam plan, Cement consumption on the rise, Vietnam's cold supply chain in poor shape

After receiving the approval from the Vietnamese government, Lotte Card has recently signed a purchase contract to acquire 100 per cent of Techcom Finance from Techcombank to become the first South Korean credit card company to enter the Vietnamese finance market, according to newswire Vneconomy.
The deal’s value has yet to be disclosed, however, previously, the Republic of Korea's newswire 
The Investor estimated that the deal could be valued at VND1.7 trillion ($74.67 million).
Lotte Card’s purchase is considered a move to break into the $26.55-billion consumer finance market, which has been showing signs of rapid development.
Previously, in September 2017, the two parties signed a stock purchase agreement for the deal.
Techcom Finance, formerly known as Vietnam Chemical Finance Joint Stock Company before the 2015 acquisition by Techcombank, carries a charter capital of VND600 billion ($26.5 million).
According to the bank's report, in 2017, Techcom Finance earned VND28.7 billion ($1.26 million) in revenue and VND22.5 billion ($998,538) in pre-tax profit.
Lotte Card was established in 2002 and offers credit cards, facility leasing, and financial services. The company, through its subsidiaries, also opens travel agency, insurance agency, and telemarketing services.
Entering Vietnam, Lotte Card will join a vibrant consumer finance market with an annual growth of 30-40 per cent, while the credit card rate is still very low.
StoxPlus reports that the Vietnamese consumer finance market is the most attractive in the region, with high growth potential and profit margins.
At present, the sector is dominated by FE Credit (VPBank), Home Credit, and HDSaison.
In 2016, Home Credit earned VND1.23 trillion ($54.03 million) in profit, FE Credit VND2 trillion ($87.8 million), and the two remaining companies (Home Credit and HDSaigon) earned hundreds of billions of dongs in profit.
Along with Lotte Card, numerous domestic and foreign investors are actively seeking to enter the consumer finance market through M&A deals.
According to the latest movement, in January this year, Shinhan Financial Group announced that subsidiary Shinhan Card completed the acquisition of Prudential Vietnam Finance Company Ltd.
In addition, two other Japanese investors are also negotiating to purchase 49 per cent of the stakes in two different Vietnamese financial institutions.
Military Bank has launched its consumer lending brand Mcredit with the support of its Japanese counterpart Shinsei Bank. At the end of last year, Shinsei Bank purchased a 49-per-cent stake in Mcredit, the consumer finance arm of Military Bank. Afterwards, MCredit was renamed MB Shinsei Consumer Finance Limited Liability Company.
Korean groups planning Thua Thien-Hue tourism complex
The business groups of KMH, Glostar, and OCC Company of the Republic of Korea are planning to invest in tourism projects in central Thua Thien-Hue province, according to Park Mo Won, a representative of KMH group.
At a working session with Thua Thien-Hue provincial leaders on March 12, on behalf of the Korean business delegation, Mr Park said that Korean businesses want to build a culture, sports, and hotel complex at Chan May-Lang Co EZ, and a cultural house and a system of tour boats using renewable energy on a river in Hue City.
The Korean investors’ initial hopes are that the province will create favourable conditions for the construction of a resort at Chan May-Lang Co EZ, including a film studio for the biopic of Vietnamese marksman Hoang Xuan Vinh, winner of the historic gold medal at the 2016 Rio Olympics, said Mr Park.
Nguyen Van Cao, chairman of Thua Thien-Hue provincial People’s Committee, spoke highly of the Korean investors’ ideas for developing tourism and commercial activities in the province, saying that the People’s Committee will authorize local agencies to work with the Korean investors to research and implement the necessary investment procedures so that these projects will come to fruition in the near future.
Vietnam spends big on abattoir training to secure Aussie cow imports
Two commercial companies in Vietnam have invested millions of dollars to develop two training facilities for abbatoir workers so that the Vietnamese beef industry can continue to secure imports of live cattle from Australia.
The training facilities in southern Vietnam, which are set to open within this month, will offer three-month programs for workers to learn how to process cattle properly, Radio Australia said on March 13.
Growing demand for Australian cattle has prompted Vietnam's processing sector to invest in abattoir training facilities to improve animal welfare.
In 2016, Australia’s Department of Agriculture suspended trade after video footage showed Australian cattle being bludgeoned to death in Vietnamese abattoirs.
The department banned two unnamed Australian exporters and an unapproved facility under Australia's Exporter Supply Chain Assurance System (ESCAS) rules from supplying cattle to Vietnam.
ESCAS is designed to ensure that exported Australian livestock are handled in accordance with international animal welfare standards and to provide a mechanism to deal with animal welfare issues when they occur.
The Australian Embassy told VnExpress International back then that Australia had suspended livestock supplies to 18 abattoirs and feedlots in Vietnam pending an investigation into alleged animal cruelty.
Since then Australia has been working with Vietnam, which is the second-largest importer of live Australian cattle, to improve its animal welfare standards to ensure the country complies with ESCAS.
Vietnam’s cattle industry is failing to meet the country's increasing demand for beef, forcing local consumers to turn to imported products.
Last year, the country imported more than 262,300 live cattle, and nearly 42,000 tons of beef and buffalo meat, valued at more than US$410 million, official government data shows.
Explaining the reason for the imports, Tong Xuan Chinh, an official from the agriculture ministry, said Vietnamese people’s diets have changed drastically in recent years, and they're now eating more beef and buffalo meat.
Average consumption per capita has doubled to 5-6 kilograms of beef and buffalo meat per year in the past decade, but the cattle industry has been unable to keep up with the pace. Local supplies of beef and buffalo meat only meet 80% of the current demand.
Imported beef, mainly from Australia and the US, is available in air conditioned supermarkets, modern food stores and local markets, and some restaurants are also using imported beef in their dishes.
Many local consumers favor imported products thanks to their reasonable prices and food safety concerns that have plagued the Vietnamese food market in recent years. Beef imported from Australia and the US costs from VND100,000-VND500,000 (US$4.4-US$22.02) per kilogram, around the same price as local products.
70 Hong Kong businesses seeking trade ties in Vietnam
A group of 70 Hong Kong businesses operating in the fields of finance, education, architecture, law, garments, electronic components, and footwear will visit Vietnam for an exchange with Vietnamese partners on March 21 in Ho Chi Minh City.
The event will be held to coincide with a working visit of the Secretary for Commerce and Economic Development of Hong Kong to Vietnam.
The exchange is seen as a gateway for HCM City businesses to set up investment cooperation ties with Hong Kong investors.
Trade between Vietnam and Hong Kong has increased steadily in recent years. Up to early September 2017, Vietnam was the third largest trade partner of Hong Kong in ASEAN, with bilateral trade of US$13 billion, a year-on-year rise of 12%. Over the same period, Hong Kong’s exports to Vietnam reached US$7.4 billion and imports from Vietnam were US$5.7 billion.
In terms of investment, up to March 20, 2017, Hong Kong was the sixth biggest foreign investor in Vietnam with more than 1,200 projects and a total registered capital of over US$17.57 billion.
Japan - Potential market for Vietnam’s IT firms
Japan – one of countries leading the way in implementing the advances of the 4th Industrial Revolution, is witnessing strong investment from Vietnam’s information technology (IT) firms.
FPT - one of Vietnam's leading technology groups, on March 13 launched its sixth representative office in Hamamatsu city, Shizuoka prefecture. Previously, in 2017, CMC group opened an office in Yokohama city, Kanagawa prefecture. 
Smaller-scale Vietnamese IT firms also plan to invest in other regions of Japan after opening branches in Tokyo and Nagoya
According to FPT Chairman Truong Gia Binh, Japan is a potential market  for IT companies, with about  20 Vietnamese IT enterprises having opened offices in the market so far. 
For FPT, the Japanese market accounts for more than half of its global revenue. The firm has over 400 Japanese customers, including 50 of the world’s biggest businesses. FPT has maintained annual growth of 30 percent in the market. 
The Vietnam Software and IT Services Association is encouraging the trend, which is hoped to lay a foundation for turning Vietnam into a software-export country, he noted. 
Talking about advantages for Vietnamese IT companies when investing in Japanese market, Binh said similarities in culture and strong diplomatic and socio-economic ties between the two countries help Vietnamese operate in the market. 
Vietnam can also help rejuvenate the workforce in Japan with its young population and low labour costs. Vietnam is a supply source of new technologies, artificial intelligence, robotics and data analysis that many Japanese companies want, he added. 
Vietnam is estimated to earn 1 billion USD from exporting software by 2020. 
Vietnamese, Lao provinces seek to boost cross-border trade
Optimal measures to facilitate cross-border trading of agricultural products and materials through Lao Bao-Densavan international border gate between Vietnam’s central Quang Tri province and Savannakhet province of Laos were discussed at a workshop held in Dong Ha city of Quang Tri on March 13.
Building common standards to ensure transparence of procedures and costs at the border gates along the East-West Economic Corridor and guide books on taxation in agricultural production and cross-border investment and business were on the table at the event, which was jointly held by Quang Tri and Savannakhet provinces, and the Mekong Institute.
Also, the participants pointed out factors that affect the circulation of agricultural products through the border gate, including the volume of goods, non-tax measures, cross-border cooperation, customs clearance procedures and transport infrastructure.
Nguyen Quan Chinh, Vice Chairman of the People’s Committee of Quang Tri province, spoke highly of the Mekong Institute’s study to promote cross-border trade and recommendations made by the participants at the workshop.
He said the study and recommendations will help the two governments build proper mechanisms and policies to boost economic activities along the East-West Economic Corridor.
Vietnam’s automobile support industry remains underdeveloped
The supporting industry for Vietnam’s automobile manufacturing sector is still underdeveloped, heard a seminar on the industry’s development in the fourth industrial revolution in Ho Chi Minh City on March 13.
According to the Institute of Industrial Policies and Strategies (IIPS), Vietnam is one of the five ASEAN nations manufacturing vehicles, besides Thailand, Malaysia, Indonesia and the Philippines.
Among the five, Vietnam ranks third in population after Indonesia and the Philippines, but its automobile production output ranks fifth, with a yearly output of 300,000 vehicles.
The country has 20 automobile assembling firms, with 84 Tier-1 part suppliers and 145 suppliers of Tier -2 and 3. Meanwhile, Thailand has only 16 assembling companies, but the number of Tier-1 suppliers amounts to 690, and that of Tier-2 and 3 suppliers is 1,700.
Nguyen Thi Xuan Thuy, IIPS representative, said that due to the small scale of Vietnam’s automobile market, the costs for producing auto parts or components are high. Therefore, demand for domestically made parts is relatively low, constraining the development of the local supporting industry.
As a result, automobile assembly firms choose to use imported parts, creating a vicious cycle that remains unsolved, she stressed.
To untie the vicious cycle, Thuy proposed creating a larger market scale through importing completely built-up units (CBUs) in the first years and forcing manufacturers to find domestic spare parts with cheaper prices, thus stimulating the local supporting industry.
Businesses should also choose advantageous spare parts and products so as to gain assess to the ASEAN production chain, she added.
Nguyen Duong Hieu, Chairman and General Manager of LIDOVIT Trading and Industrial JSC, suggested local producers invest in upgrading their technology, and integrate management systems to better manage their production and approach the market.
He said that management agencies should provide local part suppliers with specific requirements of foreign firms so they can prepare to meet their standards.
Delegates also suggested that the Government set up a website for businesses in the parts industry so they can update their information, which would make it easier for downstream producers, including foreign ones, to find parts suppliers.  
The seminar was held by the HCM City Department of Industry and Trade, the Board of Management of Saigon Hi-Tech Park and HCM City Export Processing and Industrial Zones Authority.
Vietnam attends Moscow international tourism fair
Vietnam tourism body and travel agencies have been taking part in the 25th Moscow International Travel & Tourism Exhibition (MIIT), which opened on March 13 in the Russian capital.
The MIIT is among the biggest tourism expos in the world, consisting of hundreds of seminars and press conferences.
The Vietnamese space at the three-day event features stalls operated by the Vietnam National Administration of Tourism (VNAT), Vietnam Airlines and locally-well-known travel companies, such as Viettravel and Saigon Tourists.
Vietnam Airlines is displaying its Dreamliner Boeing 787 – 9, which will be used for the carrier’s VietnamMoscow route from March 27.
Speaking at the event, Vietnamese Ambassador to Russia Ngo Duc Manh said cooperation between the VNAT and other Vietnamese representatives at the event plays an important role in introducing Vietnamese tourism to foreigners.
The VNAT sees Russia as a key tourism market. Vietnam is viewed as a safe and friendly destination with sandy beaches, sunny weather and high-end resorts, and rich culture and gastronomy that can attract Russian visitors.
According to the VNAT, the number of Russian tourists to Vietnam grows an average of 30 percent annually, with total arrivals expected to reach 1 million by 2020.
Over 2.86 million foreigners were estimated to visit Vietnam in January and February, up 29.7 percent from the same period in 2017, according to the General Statistics Office of Vietnam.
The Vietnam National Administration of Tourism said it aims to serve between 15 and 17 million foreigners and 78 million domestic travellers this year, with total revenue expected to hit 620 trillion VND (27.28 billion USD), up 21.35 percent on year.
Electronics industry needs development: seminar     
The consumer electronics industry has developed strongly in recent years but a lot more needs to be done to ensure further development.
“Electronics is one of the key industries with the deepest level of international integration, but the industry is still only focused on assembling, processing and after-sales service,” Nguyen Phuong Dong, deputy director of HCM City’s Department of Industry and Trade, said.
Delivering a speech at a seminar in HCM City on Tuesday titled “Enhancing linkage opportunities in the electronic supply chain”, he said in the last 10 years the number of enterprises in the industry had grown four-fold to 1,021, and the number of workers by nearly eight times to 327,000.
“Relevant authorities would like to connect electronics enterprises by offering more incentives to encourage linkages.”
Bui Thi Ninh of the Viet Nam Chamber of Commerce and Industry and the Union of Electronics Enterprises in Viet Nam said the electronics industry had a very high growth rate and short life cycle for products, requires large investments, yields high profits but comes with intense competition and high risks.
“The industry has the largest number of workers and earns a large amount of foreign currency.
Dr Truong Thi Chi Binh, deputy chairwoman and general secretary of the Viet Nam Association of Supporting Industries (VASI), said: “To participate in the global supply chain, Vietnamese electronics enterprises must first meet safety demands and technical requirements and limit hazardous content in their products.
“Quality, environment and energy-efficiency are the general requirements. Corporate social responsibility and sustainable development are appreciated.”
VASI could actively support enterprises by providing consultancy, training, information, and databases and connecting them with international markets, she said. 
Japan bank mulls PetroVietnam plan     
The Japan Bank for International Cooperation (JBIC) is considering funding the Block B&52/97 project of the Viet Nam Oil and Gas Group (PetrolVietnam) with loans without a government guarantee.
General Director of PetroVietnam Nguyen Vu Truong Son recently worked with JBIC representatives on the financial arrangements for the project.
According to PetroVietnam, the project, worth nearly US$10 billion, is one of the two largest gas projects in Viet Nam. The capital arrangement for the project is one of the main concerns of foreign partners involved in the project.
The Block B&52/97 project’s oilfield development report was approved by contractors and the State appraisal council, while its environmental impact assessment report was ratified by the Ministry of Natural Resources and Environment. The quantitative risk assessment report was also submitted to the Ministry of Industry and Trade.
As scheduled, the contract will be awarded in June 2018, and the signing of Engineering Procurement Construction and Installation (EPCI) contracts for the project will be done in July.
The Block B&52/97 project includes two sub-projects. The first aims to develop the Block B oilfield, with PetroVietnam owning maximum capital in the project (42.896 per cent). Other investors are PetroVietnam Exploration and Production Corporation (26.788 per cent), Mitsui Oil Exploration Company (MOECO) of Japan (22.575 per cent), and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) (7.741 per cent).
The second is to build the Block B-O Mon gas pipeline having a total length of 430km. PetroVietnam, PetroVietnam Gas Corporation (PV Gas), MOECO and PTTEP have invested in this project.
The Block B&52/97 project is expected to bring ashore 5.06 billion cu.m of gas per year within 20 years, meeting the gas demand of power plants in the south.
It is expected to contribute some $18 billion to the State budget.
Cement consumption on the rise     
The country’s cement consumption in the first two months of the year posted a year-on-year increase of 85 per cent to reach 18.55 million tonnes.
According to statistics of the Department of Building Materials under the Ministry of Construction, cement consumption in the period had surged both in local and export markets. The department attributed this to a halt in cement production in China.
In February alone, cement consumption reached 7.62 million tonnes, increasing by 38 per cent compared to the same period last year and meeting 23 per cent of the annual target.
Cement sold in the domestic market rose by 11 per cent over the corresponding period last year to 5.02 million tonnes. The country exported 2.6 million tonnes of cement in February, increasing 30 per cent from last year.
Cement exports in the first two months of the year reached 5.5 million tonnes, representing a year-on-year increase of 121 per cent.
Cement prices were stable last month. 
Hai Duong attracts FDI worth $185mn     
The northern province of Hai Duong attracted US$185 million in foreign direct investment (FDI) in the first two months of 2018, a year-on-year increase of 39.8 per cent.
This was revealed by the provincial Department of Planning and Investment.
In the reviewed period, eight FDI projects worth over $32.1 million were granted new licences, and nine existing projects were allowed to add a combined capital of $153.45 million.
To become an attractive destination for foreign investment in future, the province will focus on improving the business climate, accelerating administrative reforms, publicising and bringing about transparency in all administrative procedures, such as investment, enterprises, natural resources, environment, construction, transport, electricity, tax and customs.
Nguyen Manh Hien, secretary of the provincial Party Committee, said in 2018 the province would continue to improve infrastructure to attract investment in industrial zones and clusters, prioritise the development of industries producing hi-tech, clean and industrial products that have competitive advantages, as well as support industries.
In addition to this, Hai Duong has also invested in building new infrastructure for some industrial parks to speed up the implementation of many projects, such as the North-South road and other essential transportation routes and the Hai Duong Thermal Power Plant, Hien said.
Hai Duong currently has 370 projects with total FDI investment of nearly $7.43 billion. 
UK’s group encouraged to participate in SOEs’ restructuring     
The United Kingdom’s Jardines Matheson Group can enlarge its investment to take part in the restructuring of State-owned enterprises (SOEs) and credit institutions in Viet Nam.
This was announced by Deputy Prime Minister Vuong Dinh Hue during a reception in Ha Noi on Monday that he had hosted for Henry Keswich, chairman of the Jardines Matheson Group.
Jardines Matheson is a multi-sectoral and multi-national group that has been present in Viet Nam for more than 20 years. The group holds 10 per cent of charter capital at Vinamilk, 25 per cent of capital at Truong Hai Auto Corporation and 23 per cent at the Refrigeration Electrical Engineering Corporation.
At the reception, Keswich expressed his interest in the equitisation and divestment of Vietnamese SOEs, hoping to participate in the field.
He also pledged to help Viet Nam develop its capital market with high-level services in the time to come.
According to Hue, the restructuring of SOEs and credit institutions are two among five key tasks in the country’s economic restructuring plan.
The State will own full stakes only in fields related to national security, defence and special public-utility services, he said, adding that the Government has issued a list of SOEs that must be divested and equitised until 2020. The Government is also focusing on dealing with weak banks and balancing credit and non-credit services of banks, he said.
He also said the Government would work to ensure macro-economic stability and create a favourable business environment in conformity with international standards and practices.
He asked the group to pay attention to developing existing fields such as milk products, automobiles, machinery, construction, real estate and finance and insurance.
According to Hue, the expansion of investment in Viet Nam will benefit Jardines Matheson as the country is a member of more than 10 free trade agreements.
State earned VNĐ49.2 billion from IPO of VTRI     
The State earned VND49.2 billion (US$2.16 million) through the initial public offering of the Viet Nam Textile Research Institute (VTRI) on Monday at an average auction price of VND21,749 per share.
At the auction, 20 eligible investors participated in the IPO to buy more than 14 million shares. The highest bid volume was for the entire lot, while the lowest volume was 1,000 shares. The lowest auction price was equal to the offered price, and the highest was up to VND30,000 per share.
As a result, there were eight winners, including two organisations and six individuals. The average auction price was VND21,749 per share, 73 per cent higher than the offered price, with the total value of the shares sold being VND49.2 billion.
The payment to buy the shares has to be made between March 13 and March 22. The refund period is from March 14 to March 19.
Besides 2,263,000 shares (equivalent to 45.26 per cent of the charter capital) sold during the IPO on March 12, the VTRI will offer 2,263,000 shares to strategic investors, while the remaining will be sold to employees. The State will not hold shares in the VTRI.
According to the approved plan, after the equitisation, the VTRI will be named the Viet Nam Textile Research Institute JSC, with a charter capital of VND50 billion. Its head office will be located at 478 Minh Khai Street, Ha Noi, with a branch in HCM City.
As for its business result, the VTRI posted a revenue of VND57 billion last year, down 25 per cent compared with the average revenue of the previous three years. Its profit was VND761 million, down by half of that of 2016. The total assets of the institute at the end of 2017 was worth VND41 billion.
In terms of land, the VTRI is managing and using plots of land at 478 Minh Khai Street, Ha Noi, with an area of nearly 2,851sq.m; at 454/24 Minh Khai Street with an area of 5,311sq.m; and at 354/128A Tran Hung Dao Street, District 1, HCM City, with an area of nearly 2,220sq.m. — 
Meliá Hotels International signs three new properties
Meliá Hotels International, the leading Spanish hotel group, announced the signing of three new properties in Ho Chi Minh City, including Meliá Saigon Central, INNSIDE Saigon Central, and INNSIDE Saigon Mariamman, bringing the group’s number of current and future properties in Vietnam to ten.
All three properties will be managed by Meliá Hotels International. With the region’s rising affluence, improved infrastructure, and increased flight connectivity, there is an enormous potential in the growing “bleisure” market in Vietnam, which is a booming tourism hotspot and a priority market for the group.
According to Bernardo Cabot Estarellas, senior vice president, Asia-Pacific of Meliá Hotels International, Vietnam is quickly emerging as a top travel and business destination and is a big part of the firm’s strategic focus for the Asia-Pacific.
In addition to our three properties in Hanoi, Danang, and Phu Quoc, we are thrilled to bring the Meliá and INNSIDE brands to Ho Chi Minh City and grow our offering to our customers in the region.
As the financial and business hub of the country, Ho Chi Minh City is awash with bustling energy and is the main entry and exit point to the country.
All three hotels enjoy convenient access, just six kilometres from Tan Son Nhat International Airport, easily connecting the new urban hotels with the groups’ existing domestic resort properties, Meliá Danang and Sol Beach House Phu Quoc.
With these three new properties extending the group’s presence in the Vietnam, Meliá Hotels International will continue to set the benchmark for service quality, with unique Spanish touches, catering to the growing mass of discerning travellers.
In 2018, Meliá Hotels International maintains its robust momentum in Asia, with 20 hotels currently in operation and 27 hotels in the pipeline, and looks to double its portfolio in the region by 2020.
Spotify launches music streaming service in Vietnam
Spotify, the world’s leading music streaming subscription service, was launched today in Vietnam, offering a revolutionary and unrivalled music experience tuned to Vietnamese people’s taste.
With a worldwide community of over 159 million music fans, Spotify offers both a free ad-supported service and an upgraded ad-free subscription service. Users can listen to music for free or alternatively upgrade to Spotify Premium for only VND59,000 ($2.6) per month.
With a catalogue of over 35 million songs all available to both free users and subscribers, Spotify comes to Vietnam offering the very best in both local and international music.
“We are incredibly excited to launch Spotify in Vietnam with a revolutionary new music experience,” said Sunita Kaur, managing director of Spotify Asia.
“Thanks to our huge music catalogue of over 35 million songs, truly personalised recommendations, and the best playlists curated by music experts and fans, Spotify makes discovering the music you love easier than ever,” she added.
With the launch of Spotify Vietnam, Vietnamese users have instant access to a wide range of local playlists expertly curated and regularly updated by Spotify’s team of Vietnamese music experts, alongside millions of Spotify and fan-built international playlists.
In addition, Spotify has personalised discovery features including Daily Mix, Release Radar, and Discover Weekly, so Vietnamese users can explore different songs from their favourite genre.
Vietnamese users can download the app via the Android or iOS app store. Following the launch in Vietnam, Spotify will be available in 65 markets around the world.
Minh Phu to pay dividend by stock to boost charter capital
Minh Phu Seafood Corporation (MPC) has decided to pay dividend by stock despite shareholders' request for cash to boost charter capital.
At the shareholders' meeting took place on March 9, shareholders proposed to pay dividends in cash instead of stocks. However, Le Van Quang, MPC’s chairman and general director, said that the company’s charter capital has been at VND700 billion ($31 million) since 2016.
Minh Phu intends to pay dividends by stock and bonus stock for key people in order to raise capital to VND1.4 trillion ($62 million). Thereby, MPC./'; expects to issue 68.4 million shares to pay dividend at the rate of 1:1 and an additional 1.5 million shares as bonus for key people.
Quang also said that MPC’s shares will be listed on the Ho Chi Minh Stock Exchange (HOSE) from June 2018. The company has just been listed on the UPCoM on October 16, 2017.
In order to raise capital, Minh Phu intends to issue 60 million shares for strategic investors. Quang said that several foreign investors are interested in MPC’s public offering, some of whom want to purchase up to 35-65 per cent. The total charter capital is expected to be VND2 trillion ($88.1 million) after the outlined issuances and offerings.
This year, MPC will target to reach $800 million in export-import turnover, 63,000 tonnes of shrimp in gross export volume, VND18.2 trillion ($0.8 billion) in gross revenue, and VND1.1 trillion ($48.5 million) in pre-tax profit.
However, Quang said that Minh Phu will do their utmost to exceed these targets and reach an export turnover of $1 billion. In the first month of this year, MPC recorded a profit of VND40 billion ($1.8 million), which is a positive signal because this company has always been in the red in January.
MPC expects to expand Minh Phu Ca Mau factory by 30,000 tonnes per year in the third quarter of this year. The total investment is VND1 trillion ($44 million), including 30 per cent from MPC and the rest from loans.
CapitaLand Vietnam holds third Feng Shui seminar
On March 11, CapitaLand Vietnam hosted the “Feng Shui and Astrology 2018” seminar with the presence of the world’s leading expert on Feng Shui and Chinese metaphysics, Dato’ Joey Yap.
capitaland vietnam holds third feng shui seminar
Previously, the Vietnam-based arm of CapitaLand successfully hosted the seminar for two consecutive years, 2016 and 2017, which later received lots of positive feedback from homebuyers.
Chen Lian Pang, CEO of CapitaLand Vietnam, asserted that, "We (CapitaLand Vietnam) acknowledge the role of Feng Shui in the decisions of a customer when purchasing a residential project, as Feng Shui represents the close connection between people and their living space. Hence, the ancient Chinese art is closely intertwined with the architecture of residential projects.”
CapitaLand Vietnam acknowledges the role of Feng Shui in the decisions of a customer when purchasing a residential project, as Feng Shui represents the close connection between people and their living space.
Chen further added that, "By inviting the internationally acclaimed Feng Shui pundit, Dato’ Joey Yap to co-host the seminar, we (CapitaLand Vietnam) expect to spread knowledge about the ancient art and science of Feng Shui on the Vietnamese market, bringing the practical perks Feng Shui has to offer to residential projects."
In the Feng Shui seminar, the world-renowned consultant addressed key points, such as the energy generated by the Year of the Dog, the recent "hearsay" that this lunar year would bring a time of doom and gloom when markets would crash, leading to an inevitable recession, and speculations that sectors such as IT, oil and gas, telecommunications, and agriculture, as well as education would produce great business opportunities in the year ahead.
Vietnam reclaims crown of 'Asia's best performing stock market'
Over the first two months of 2018, the Vietnamese stock market ranked first among the fastest growing markets in the world, followed by the stock markets of Brazil, Russia, and Argentine, as well as tripling the growth rate of the US Nasdaq.
By the last stock transaction in February, the VN-Index hit a new record of 1,120 points, equivalent to 14 per cent growth over only two months, setting the stage to be one of the most impressive performing markets in the world this year.
Likewise, over the twelve months of 2017 and the first two months of 2018, the VN-Index saw 70 per cent growth, nearly surpassing the record set in March 2007.
Previously in the second half of 2017, the Vietnamese stock market was deemed to be one of the most investment-worthy markets due to surging profitability and capital attraction.
According to newswire Bloomberg, by the end of 2018, the VNIndex was forecast to reach 1,210 points in a recent survey of 10 strategists by the New York-based news station.
Thang Uong, manager of a $1-billion portfolio at Manulife's fund in Vietnam, noted that "The market growth rate was forecast to swell by 20-25 per cent among listed and newly-listed firms."
As concluded in a recent market analysis by RongViet Securities (VDSC), running a moderate trading volume, the VNIndex would likely rise by 17-19 per cent, while in case the VnIndex improves its ranking among Asia's stock markets, it could potential expand by 45-67 per cent.
By the end of 2017, Vietnam's benchmark index mounted up to 984 points, which was equivalent to a 48 per cent rise against the same category in 2016.
Previously, the VNIndex was ranked the world's third and Asia’s best-performing market due to its smooth economic growth, the "green" business performance of various firms, including giants like Petrolimex, Vietnam Airlines, and Vincom Retail, as well as the inundating volume of traded shares worth roughly $1.1 million by foreign funds.
Vietnam's cold supply chain in poor shape
Cold chain supply is an important base for the agriculture sector, contributing to ensuring the quality of food and agricultural products from farm to table. However, local agriculture experts as well as local enterprises believe the cold supply chain for Vietnam’s agriculture sector remains weak, the World Cold Chain Summit 2018, held recently by Carrier in Ho Chi Minh City, heard.
The workshop focused on wasting less food and reducing greenhouse gas emissions from food loss through a strengthened cold chain. Carrier is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp.
This was the fourth World Cold Chain Summit organized by Carrier since its inception in 2014 but the first to focus on cold chain development efforts in one specific region. Vietnam, a fast-growing, emerging country, shares many challenges with other developing economies in tackling food waste issues and managing cold chain logistics.
“With new technologies and practices for a more efficient cold chain, significant progress can be made to reduce carbon dioxide emissions, improve cross-border economic activity, and help reduce hunger,” said Mr. David Appel, President of Carrier Transicold & Refrigeration Systems. “We are proud to convene and engage with experts across private and public sectors to collaborate on developing actionable strategies to help reduce food losses in Vietnam and Southeast Asia.”
The summit asked food supply chain stakeholders, academics, and policymakers to collectively identify significant opportunities in the Vietnamese food supply chain, diagnose root causes leading to losses, and evaluate different cold chain solutions for Vietnam and potentially other developing countries in the fast-growing Southeast Asia region.
“Of all the perishable food produced in the world today, only 10 per cent is refrigerated,” Mr. Appel went on. “There is a huge opportunity to cut food waste and improve food distribution by implementing cold chain technology. But to do so effectively, we have to understand local needs, and that’s why we’re focusing this year’s Summit on Vietnam and the Southeast Asia region.”
Vietnam’s food supply chain loses an estimated 5.75 million tons of food per year, accounting for 60 per cent of the country’s entire municipal solid waste, according to a 2011 report by Vietnam’s National State of Environment.
“We believe that it’s not only possible to green the cold chain, but that by better managing food supply with cold chain technology, we can reduce food loss and waste, feed more people, and reduce greenhouse gas emissions associated with the supply of food,” Mr. Appel said. “The goal for the 2018 World Cold Chain Summit is to develop a roadmap to reduce food loss and waste in Vietnam that can also be applied in the APEC region and extended globally.”
F88 to open pawn shops in HCMC in Q3
F88 will open its first pawn shops in Ho Chi Minh City during the third quarter of this year, marking its expansion in Vietnam’s pawn shop market, according to CEO Phung Anh Tuan.
The company had nearly 40 pawn shops in Vietnam's north as at February, in Hanoi, Hai Phong, Vinh Yen, Thanh Hoa, Bac Ninh and Bac Giang, serving hundreds of customers each day. Lending totaled nearly VND600 billion ($26.3 million) last year, in 50,000 contracts.
With a goal of having 300 stores by 2020, F88 has now achieved 13 per cent of its plan. It recently launched its first artificial intelligence (AI) equipment for product valuation in its collateralized loan service.
Customers can accurately estimate the value of their assets with the AI equipment to avoid being put at a disadvantage when borrowing money from banks or financial institutions. This also differentiates F88 from other pawn shops in the market.
Mr. Tuan said that valuations are the greatest risk in the pawn shop model. “If you don’t meet standards and make a loan higher than the value of the collateral, you will lose money if customers don’t return to reclaim their assets,” he explained.
According to Mr. Tuan, the company has nearly 300 employees. Most of its mid- to high-level personnel have been recruited from large banks and financial institutions in Vietnam.
After receiving investment from Mekong Capital in January 2017, F88 became the first pawn shop chain in Vietnam.
VNN

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