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BUSINESS IN
BRIEF 7/3
After
successfully tapping the Chinese market last year, the Vietnam Association of
Seafood Exporters and Producers (VASEP) has forecast
According
to a report by VASEP,
Meanwhile,
last year saw outbound sales of tra fish to the
Despite
falls in the
VASEP
general secretary Truong Dinh Hoe said the northern neighbor’s demand for tra
fish would increase as the product is becoming more popular among Chinese
consumers.
In
addition to ASEAN,
Meanwhile,
the tra fish price has risen to an all-time high. Two-kilogram tra fish is
sold at VND30,000-VND32,000 per kilogram while one-kilo fish sell for
VND29,000-VND30,000 per kilogram, said Nguyen Huu Nguyen, manager of a fish
farming cooperative in Chau Phu District, An Giang Province.
“Meet The USA 2018” conference- good opportunity for
development links
The
Vietnam Ministry of Foreign Affairs, the Da Nang People’s Committee, the US
Embassy and the American Chamber of Commerce in Vietnam (AmCham) jointly held
"Meet The USA 2018” conference in the central city of Da Nang on March
5.
In
his opening remarks, Vietnamese Permanent Deputy Foreign Minister Bui Thanh
Son hailed fruitful cooperation between Vietnamese and US localities and
businesses across multiple fields, saying the
He
also praised both sides for joint efforts to boost their trade ties, with
stable investments and higher two-way trade revenue.
Son
affirmed
He
highlighted cooperation between Vietnamese localities and US businesses,
partners and localities as a pillar of the Vietnam-US comprehensive
partnership which was established in 2013.
Local
level collaboration has been a helpful channel for cooperation mechanisms at
the Government level, especially in speeding up the implementation of joint
projects, Son said.
US
Ambassador to Vietnam Daniel Kritenbrink, in turn congratulated
The
“Meet The USA” conference covers four sessions, focusing on Vietnam-US trade
and investment prospects 2018 – 2020, smart cities – high technology,
start-up, education and workforce.
Chairman
of the Da Nang People’s Committee Huynh Duc Tho updated 50
Tho
said he hopes that US partners will continue to stand side by side with the municipal
authority and offer more cooperative opportunities in investment, trade,
smart city building, start-up and education-training with the city.
On
this occasion, the External Affairs Department under the Foreign Ministry and
Coca-Cola
At
the conference, the participants also discussed Vietnam-US relations
especially the trade balance between the two nations.
Vietjet announces direct route from Vietnam to India
Budget
carrier Vietjet has announced a plan to open a direct route connecting
The
announcement was made at the India-Vietnam Business Forum in
The
event aimed to mark the 45th anniversary of the Vietnam-India diplomatic
relationship and the 10th anniversary of a strategic partnership between the
two countries.
The
first route is planned to connect
As
a new-age airline, Vietjet is following a plan to open new routes, add more
aircraft, invest in modern technology, and offer more add-on products and
services to serve customers.
Currently,
it boasts a fleet of 55 aircraft, including A320s and A321s, and operates 385
flights every day. The airline has carried more than 55 million passengers on
a network of 82 routes in
Vietnam Airline adds flights from HCM City to Singapore,
Taipei
National
flag carrier Vietnam Airlines on March 5 announced that it will increase
flights from
As
scheduled, from March 27, the airline will launch an additional four
round-trip flights on each air route. The new flights to
Meanwhile,
the flights to
The
plan will help increase the airline’s total flights from
Vietnam
Airlines was recognised as a 4-star airline for two consecutive years in 2016
and 2017 by the international air transport rating organisation Skytrax.
It
targets a 13 percent increase in revenue and an 8.3 percent rise in the
number of passengers in 2018.
Apart
from Asia, the airline is also seeking to expand their markets in
Ben Tre's pomelo earns geographical indication
Green-skin
pomelo, a speciality of the Mekong Delta
According
to Lam Van Tan, Director of the provincial Department of Science and
Technology, the GI is applied to pomelo grown in islets in the districts of
Chau Thanh, Binh Dai, Mo Cay Bac, Mo Cay
The
pomelo, which earned the name as its skin remains green even when it is ripe,
is much sought after on the market due to its great taste. The fruit has thin
skin, few seeds, and pinky flesh.
Statistics
of the provincial Department of Agriculture and Rural Development show Ben
Tre currently has around 6,500 hectares of green skin pomelo, producing
almost 100,000 tonnes a year.
The
GI recognition is expected to help Ben Tre expand the market for the pomelo
and raise income for local farmers.
The
28th Vietnam International Trade Fair (Vietnam Expo 2018) is set to take
place at the Hanoi International Exhibition Centre from April 11 to 14.
Themed
“Enhancing Regional and Global Economic Links”, the event has to date
attracted registrations from more than 450 businesses located across 16 local
provinces and cities and 23 countries and territories, such as
The
year 2017 marked upbeat growth in
A
representative of the Ministry of Industry and Trade said the expo offers
tremendous opportunities to participants, as its previous editions witnessed
hundreds of contracts and cooperative pacts sealed.
This
year, the fair focuses on the display of machines, construction materials, as
well as information technology, food, and healthcare products.
Ministry requests strengthening post-Tet price management
The
Finance Ministry recently issued a Notice requiring the People’s Committees
of cities and provinces to strengthen price management following the
traditional Lunar New Year (Tet), so as to achieve the goal of controlling
consumer price index below 4 percent this year.
Accordingly,
prices of services under the management of the People’s Councils and People’s
Committees of cities and provinces will remain the same, including health
check-ups and treatment, education, environment hygiene, vehicle parking,
travelling, lodging and rentals in exhibitions and shopping malls.
They
were required to closely follow the movement of supply, demand and prices to
stabilise the market, particularly daily necessities such as food.
The
ministry requested strengthening inspection over compliance with regulations
on traffic safety and service prices while raising public awareness of the
effort to prevent false information causing public concern.
In
the first two months of this year, the CPI increased by 2.9 percent.-
An Giang earns 110.8 million USD from exports in two months
Export
turnover of the Mekong Delta
According
to Vo Nguyen
The
province’s main export items like rice, seafood and garments-textiles saw
higher export revenue as compared with the corresponding time last
year.
During
the period, An Giang shipped abroad 61,390 tonnes of rice, pocketing 30.76
million USD, up 53.2 percent in volume and 72.8 percent in value. Meanwhile,
22,120 tonnes of seafood worth 50.73 million USD were delivered overseas,
increases of 20.09 percent in volume and 52 percent in value.
Other
exports like garments-textiles, footwear, fertilizers and pesticides recorded
revenue equivalent to that of the same period last year.
The
department has partnered with relevant units to remove difficulties in
production and export facing frozen vegetables whose export turnover slightly
decreased against the corresponding time last year.
The
sector has also frequently got updated information about export-import
markets, especially
Ministry works towards housing sector’s sustainable
development
The
Ministry of Construction will work towards the housing market’s sustainable
development for the sector to achieve the targeted growth of 8.46 – 9.21
percent in 2018.
The
ministry will closely monitor the country’s real estate market and provide
regular updates on the market. It will improve the market’s information
system and the database on the property market to ensure the sector’s
transparency.
It
will continue coordinating closely with the Ministry of Finance to refine
real estate-related financial and tax policies; and partner with the State
Bank of
At
the same time, the ministry plans to work together with relevant ministries
and agencies to tackle challenges in allocating State budget for the key
housing programmes.
In
2018, the Ministry of Construction will continue to study and adopt proper
measures to fuel the development of the affordable housing in urban areas and
low-cost housing for workers at industrial parks and to encourage to-let
house and affordable house projects.
It
will also take steps to stabilize prices of building materials and support
the development and production of cutting-edge building materials that help
reduce cost of construction.
Pouchen VN gets custom priority card
The
General Department of Viet Nam Customs has granted a preferential treatment
card to shoemaker Pouchen Viet Nam Enterprise Company Limited.
The
company will receive some preferential customs treatment in export-import
operations, such as priorities at the stage of customs and post-customs
clearance stage; single customs declaration and priorities in tax procedures
in line with Circular No. 86/2013/TT-BTC issued by the Ministry of Finance
issued in 2013 dated June 27, 2013.
According
to a representative of the Post-Customs Clearance Examination Department,
operating under the
The
duration of priority recognition for Pouchen Viet
Pouchen
Viet
Under
the provisions of Circular 722015/TT-BTC on priority enterprises, one of the
important conditions to get a priority card is the import-export turnover of
enterprises. Specific conditions for enterprises are as follows:
Ordinary
import-export enterprises must achieve an import-export turnover of $100
million per year or more;
Enterprises
(exports of goods made in
Exporters
of agricultural and aquatic products that are produced or raised in
Enterprises,
which are customs procedure agents, must have reached 20,000 customs
declarations or more each year;
In
cases that enterprises are granted the high-tech enterprise certificates by
the Ministry of Science and Technology, according to the provisions of the
Law on High Technologies, they shall not consider the turnover conditions.
Pouchen
Viet
Project to promote exports to Middle East
Vietnamese
export companies will have opportunities to set up distribution channels in
the Middle East thanks to a market research programme launched by the
Investment and Trade Promotion Centre in HCM City and the Vietnamese
Embassy’s Commercial Affair Office in the United Arab Emirates (UAE).
The
research will be carried out from March 4-9 this year. It aims to help rice,
food and fruit exporters seek opportunities in Middle Eastern nations.
According
to the Ministry of Industry and Trade, trade between
The
country mostly imported materials for domestic production, such as plastic,
liquefied gas, electronic spare parts, machines and animal feed, from the
HCM City set to host international livestock, aquaculture expo
The
latest machinery, technologies and business solutions for the livestock
breeding, dairy and aquaculture industries will be on show at the ILDEX
Vietnam expo in
The
7th International Livestock, Dairy, Meat Processing and Aquaculture
Exposition has attracted nearly 250 exhibitors from 30 countries and
territories, and there will also be six national pavilions set up by France,
the US, South Korea, the Netherlands, China, and the Czech Republic.
Speaking
at a press briefing in
The
increasing participation by foreign exhibitors shows their interest in the
country’s livestock industry, he said.
Many
seminars and conferences will also be held during the expo, including one on
sustainable solutions for cow farmers for developing dairy and meat
processing and another on alternative antibiotic solutions in livestock.
Hoang
Thanh Van, head of the Animal Breeding Department, said despite difficulties
last year the livestock sector grew by over 2.9 per cent.
The
livestock industry is shifting away from traditional, small and scattered
breeding to industrial-scale production with centralised slaughtering
systems, he said.
It
is expected to face more challenges this year, requiring stake holders in the
industry to make more efforts to develop linkages in production and
consumption and adopt measures to cut production costs, he added.
The
exhibition would offer industry professionals the chance to learn about new
technologies, network and explore business opportunities, he said.
Organised
by VEAS and VNU Exhibitions Asia Pacific Co., Ltd, ILDEX Vietnam will be held
at the Saigon Exhibition and Convention Centre in District 7 and is expected
to attract 10,000 visitors.
Russian firms to showcase goods at Viet Nam Expo
Russian
companies will exhibit their major products during the 28th Viet Nam
International Trade Fair (Viet Nam Expo 2018), slated to be held at the
International Exhibition Centre in Ha Noi from April 11 to April 14.
On
display will be mechanical processing, precision mechanics and automation
equipment, as well as industrial biotechnology and high-tech electronic
goods, on a total area of 520sq.m.
The
bilateral economic cooperation between
The
upcoming expo is seen as a significant event to further trade promotion in an
efficient way by the two sides, the event’s organiser, the Viet Nam National
Trade Fair and Advertising Company (Vinexad), said in its statement.
Besides
exhibitors from
They
will showcase machinery and equipment, construction and building materials,
electricity, electronics and information technology products, raw materials
and auxiliary materials, food items and agricultural products, as well as
household appliances, health care products and services.
Vietnamese
shares tumbled on Monday as investors dumped a huge amount of stocks during
the at-the-close (ATC) session for intraday profits.
The
benchmark VN-Index on the HCM Stock Exchange dropped 2.47 per cent, or nearly
28 points, to end at 1,093.48 points. It gained 1.6 per cent last week.
This
marked the worst decline for the benchmark index since it suffered two drops
of 5.10 per cent and 3.54 per cent a month ago.
The
minor HNX Index on the Ha Noi Stock Exchange lost 2.14 per cent to close at
125.51 points, reversing from a 0.9 per cent gain made on Friday.
On
the contrary, the UPCOM Index on the Unlisted Public Company Market (UPCoM)
was up 0.45 per cent to 60.44 points, extending its growth for a second day
and increasing 1 per cent in total.
More
than 364 million shares were traded across the three local exchanges, worth
VND11.48 trillion (US$510.4 million).
The
market breadth was negative with 352 declining stocks against 285 gainers.
According
to the Ha Noi-based Bao Viet Securities Company (BVSC), the benchmark
VN-Index plunged in the last minutes dragged by strong selling pressure
despite staying on its uptrend during most of the trading session.
“Investors
feared that the market could form a two-peak pattern in the short term,” BVSC
said in its daily report.
Liquidity
surged and surpassed the average level with negative market breadth,
signaling that “investors were cautious and anxious about the possibility of
a plunge in the next session,” the company said.
In
the 20 industries on the stock market, financial stocks with banks and
securities firms were two of those that were worst hit by investors’ strong
selling pressure, data on vietstock.vn showed.
The
banking and brokerage industry indices plummeted 5.6 per cent and 5.7 per
cent, respectively.
The
banking industry was sunk by Bank for Investment and Development of Viet Nam
(BID), Vietinbank (CTG), VPBank (VPB), Asia Commercial Bank (ACB),
Vietcombank (VCB) and MBBank (MBB).
Those
leading bank stocks tumbled at least 5 per cent.
Among
securities firms, the four big ones – VNDirect Securities (VND), Saigon
Securities Inc (SSI), HCM City Securities Corp (HCM) and BIDV Securities
(BSI) – were brought down to their daily declining band of 6.7-7 per cent.
In
addition, energy stocks also traded in the negative territory as oil remained
pessimistic during the Asian trading session.
The
worst-performers among energy stocks included PetroVietnam Gas (GAS), Binh
Son Refining and Petrochemical Company (BSR) and PetroVietnam Coating JSC
(PVB).
Viet
Dragon Securities Co (VDS) wrote in its report that the correction had
finally taken place in an unexpected scenario and there was a high chance the
benchmark index would drop deeper on Tuesday.
Hà Nội People’s Committee to offload entire stake in Vinawind
The
Hà Nội Municipal People’s Committee will put up 6.7 million shares of Thống
Nhất Electromechanical Joint Stock Company (Vinawind) for public auction on
Hà Nội Stock Exchange on March 30.
The
move is part of its divestment plan for the 2016-20 period.
The
share offer accounts for 46.9 per cent of the company’s charter capital.
Foreign investors are allowed to buy the entire share amount.
At
a starting price of VNĐ42,400 (US$1.86) per share, the State is expected to
collect more than VNĐ284 billion from the auction. This is almost equal to
its IPO (initial public offering) price of VNĐ42,383 on March 17, 2015.
Founded
in 1965, Thống Nhất is a popular and long-standing brand name among the
citizens of Hà Nội, along with Thủy Tạ ice cream, Thượng Đình shoes and Sao
Vàng (Golden Star) balm. Thống Nhất produces fans and household electrical
equipment.
Unlike
many traditional businesses struggling in the face of stiff market
competition, Vinawind has had stable business in the last two years, with a
revenue of more than VNĐ900 billion and an annual net profit of over VNĐ60
billion.
The
company is also a good dividend payer, with a high ratio of 25 per cent
expected in 2017 and 2018.
Hà
Nội Municipal People’s Committee is Vinawind’s largest stakeholder with 46.9
per cent. The two other main shareholders are Sài Gòn-Hà Nội Insurance JSC
(20.98 per cent) and Việt Nam National Aviation Insurance Corp (19.24 per
cent).
Vinawind
had a charter capital of VNĐ143 billion and total assets worth VNĐ520 billion
by the end of 2017, up 23 per cent over the previous year.
In
October 2017, the Municipal People’s Committee announced its divestment plan
at 96 enterprises during 2016-20, with a total charter capital of nearly
VNĐ10.35 trillion, including popular brands such as Hà Nội May 19 Textile
Group, Thượng Đình Footwear Co, Thăng Long Mechanical JSC and Hanel Ltd Co.
The
Vietnamese agency assigned to the oversight of the food industry has been
implementing various stringent measures in an effort to have the ‘yellow
card’ by the European Commission (EC) rescinded.
The
‘yellow card’ corresponds with a warning issued by the EC to any country
refusing to cooperate in the international fight against illegal, unreported
and unregulated fishing.
Vietnam
received card in October 2017, which stipulates that after a six-month
period, if the country can enable considerable progress in grappling with
illegal fishing, the sanction will be lifted, and a ‘green card’ – an
eligible status for export – will take its place; otherwise, a ‘red card,’ a
total ban, will be enforced.
Vietnam’s
Ministry of Agriculture and Rural Development and provincial authorities have
been striving for the removal scheduled for April 2018, Ha Cong Tuan, the
body’s deputy minister, said on March 2.
A
number of coastal areas have equipped themselves with offshore fishing boats
and preemptively taken actions against illegal fishing in the waters of
neighboring countries.
In
The
owners of two boats coded QNg 90518 and QNg 90945, for instance, have
forfeited the right to be granted loans for their profession and to carry out
fish-catching activities for good.
In
addition, before fishing boats depart from docks, coastal police require
their owners and captains to sign a commitment document against illegal
fishing.
In
Ba Ria-Vung Tau Province, in southern
“The
program was designed in accordance with the [said] ministry’s guidelines and
will be presented to the provincial People’s Committee for approval over the
next few days,” Cuong said on March 2.
He
added that since October 2017 the spirit of this effort has also been seen in
an official order from the committee, thwarting any attempts by Vietnamese
boats to fish outside the nation’s maritime areas.
Punitive
measures accordingly include rendering invalid from six to twelve months the
fishing licenses of boats transgressing the national sea borders for the
first time, and revoking the fish-catching right permanently for ships with a
recurrence of illegal fishing.
The
Vung Tau administration has also required fishing boats with large power
machines to be retrofitted with cameras and stay connected around the clock
with relevant authorities on land.
Boats
which belong to that type but fail to feature the devices are not granted or
ineligible to renew operation licenses, Cuong, the director, said.
Housing sector targets this year's growth of beyond 8%
The
Ministry of Construction will improve the housing market’s information system
and the database on the property market to ensure sustainable development
toward achieving this year's growth rate of 8.46 – 9.21%.
The
ministry will closely monitor the country’s real estate market and provide
regular updates on the market and work hand in hand with the Ministry of
Finance to fine-tune real estate-related financial and tax policies. It will
also partner with the State Bank of
It
plans to join hands with relevant ministries and agencies to deal with
challenges in State budget allocation for the key housing programmes.
The
Ministry will work more on stabilizing prices of construction materials
and fuel the development and production cutting-edge building materials
that help reduce costs of construction.
This
year, a score of proper measures will be taken to spur the development of the
affordable housing in urban areas and low-cost housing for workers at industrial
parks and undertake affordable housing projects.
Two ROK retail groups seek trade opportunity in Vietnam
Two
retail and distribution groups from the Republic of Korea (ROK), K-holdings
and Coupang, will meet Vietnamese partners to discuss investment
opportunities on March 22.
This
is part of activities within the framework of the Vietnam-ROK business
exchange program organized by the Export Support Centre under the Vietnam
Trade Promotion Agency and the Vietnamese Trade Office in the ROK with the aim
of boosting exports to the market.
The
two groups are in need of importing spices/sauce, noodle/vermicelli/rice
noodle and products, canned food/frozen seafood, frozen and dried fruit,
coffee, chocolate, cashew nut, pepper, cinnamon, anise, dried food such as
dried beef, chicken and cuttlefish, fresh fruits like coconut, pineapple,
banana, mango and dragon fruit and some other processed food, which offer
opportunities for Vietnamese agricultural businesses to ship their products
to the market.
Twenty-five
years after establishing the diplomatic ties,
According
to the Korea International Trade Association (KITA), the ROK’s exports to
PV Power awaits listing on UpCOM and strategic investor
Print
EmailAfter a successful initial public offering (IPO), PetroVietnam Power
Corporation (PV Power)—the second-largest electricity producer in Vietnam—is
ready to list its shares on the Unlisted Public Company Market (UpCOM)
tomorrow and is looking for a strategic investor.
After
that, it will conduct the sale of 676 million shares or 28.88 per cent of its
charter capital to a strategic investor. Interested investors are required to
have reported profit in the last two years, hold no accumulated losses, and
keep the acquired PV Power shares for at least five years.
To
date, 30 investors expressed interest in becoming the strategic investor of
PV Power. However, no official applications have been submitted to PV Power
yet.
Previously,
on January 31, PV Power reported a successful IPO by selling all the 468.37
million shares on offer at the average selling price of VND14,938 ($0.66) per
share, with the highest and lowest selling prices being VND28,000 ($1.23) and
VND14,500 ($0.64). After the sale, PV Power’s total capitalisation reached
$1.48 billion.
PV
Power is considered the first power producer to report a complete take-up at
its IPO via public auction.
Earlier
in 2015, Vinacomin-Power Holding Corporation sold only 0.005 per cent of the
offered shares for VND12.053 billion ($529,469), failing its IPO.
Besides,
in early February, Power Generation Corporation 3 (EVN Genco 3) also reported
a failed auction with only 2.8 per cent of the offered shares sold, leaving
97.2 per cent unmarketable.
PV
Power was established in 2007 andis fully-owned by PetroVietnam. As the
second-largest electricity producer in
The
firm plans to develop nine gas-to-power projects located in Dong Nai, Kien
Giang, Binh Thuan, and Quang
In
2017, PV Power produced 20.581 million kWh of electricity, acquiring VND30.98
trillion ($1.36 billion) in revenue and VND2.503 trillion ($109.95 million)
in pre-tax profit. This year, the firm expects to generate 21.570 million kWh
with VND30.95 trillion ($1.35 billion) in revenue and VND1.91 trillion ($83.9
million) in pre-tax profit.
South Korean food firm Jooan Holdings sets foot in Vietnam
Targeting
the potential food manufacturing and distribution sector in Vietnam, Jooan
Holdings Corporation from South Korea has decided to established a branch in
Hanoi before establishing a $1.2 million food manufacturing and processing
plant in Vietnam.
The
launching ceremony was organised this morning and the branch is named Jooan
Foods Corporation.
“Before
deciding to open the branch in Vietnam, Jooan Holdings Corporation spent a
long time studying the food market, the eating habits as well as the taste of
customers in
Foreign
investors find the food sector attractive, especially South Korean firms like
CJ and Daesang that acquired domestic food firms to consolidate their
presence in
In
order to compete with the existing competitors, including South Korean firms
in the market, the company will focus on the quality of the products instead
of their prices.
Besides,
the company will study and pioneer supplying new products. Thus, customers
will find numerous products that are totally new to the Vietnamese market
among the company’s products.
In
the framework of the launching ceremony, Jooan Foods Corporation and HT Food
Co., Ltd. signed a memorandum of understanding (MoU) to co-operate in the
food distribution sector in
“After
two years of studying the distribution of South Korean foodstuff in
Within
six months after establishing the branch in
The
plant will manufacture products according to the orders of the company’s partners.
The plant’s products will be exported to
Indian firms strengthen renewable energy investment in Vietnam
Renewable
energy has attracted many foreign investors to
The
two-day state-level visit of President Tran Dai Quang and his wife to
Indian
giants, including TATA Group, Adani Green Energy Ltd., and Suzlon Energy Ltd.
set foot in
Shenbagam
Manthiram, chief representative of TATA Group, said that Binh Phuoc has ample
sun irradiation. Besides, Loc Tan commune is well connected to transport
infrastructure and the national grid as well. This project is expected to be
completed in June 2019 to take advantage of the preferential feed-in-tariff
from the government (9.35 cent/kWh for 20 years).
Earlier,
in 2013, the Indian company also poured $1.8 billion into the 1,200MW Long
Phu 2 thermal power plant in the Mekong Delta
In
2017, TATA deployed solar power projects in four Vietnamese provinces with
the total estimated capacity of 250MW. Besides renewable energy and
beverages, this company intends to expand to other sectors in
Following
TATA, Adani Green Energy Limited researched Vietnamese localities to develop
several renewable energy projects. Jayant Parimal, CEO of Adani Green Ltd.,
revealed that these plants will generate at least 1,000MW of renewable energy
in
In
addition to these two giants, Suzlon Energy Ltd. also intends to develop
renewable energy projects in
Himanshoo
Raj Khare, director of emerging markets at Suzlon, said that the company has
visited
Hi-tech
Indian projects not only meet environmental protection requirements but also
promise opportunities of technology transfer and improving quality of
To
date,
Quy Nhon and Quang
While
the major urban areas of Danang and Nha Trang are running out of land sites
for development, the emerging Quy Nhon in Binh Dinh and the hot spot of Quang
A
2017 survey of the overall real estate market in the central region shows
that there are no strong fluctuations in Quang Tri, Quang Binh, and Phu Yen.
In particular, the market in Quang Tri and Quang Binh has not seen any major
projects apart from land transactions between individuals. The only highlight
of Phu Yen is a shophouse project by Vingroup, but land plot projects’
liquidity remains at a low level, similar to the northern residential area in
South Tuy Hoa Urban Area.
The
Thua Thien-Hue real estate market has experienced more robust performance.
According to Nguyen Van Tu, director of the Thua Thien- Hue Land Development
Centre, there is a dramatic shift in the land plot segment. The market is
quiet in the north and northwest but is bustling in the south and southeast.
The strong growth of the land plot segment in the areas has given a boost to
neighbouring towns and communes like Phu Vang and Huong Thuy, forming a chain
of new property products.
Quy
Nhon is deemed as an emerging place that has more advantages than Nha Trang
and Danang in terms of infrastructure system, with roads connecting to the
rest of
“As
Binh Dinh unlocks its tourism potential, investors have ramped up investment
in the province,” said Huynh Cao Nhat, deputy director of the Binh Dinh
Tourism Department.
On
the same note, Nguyen Thuc Dinh, director of the Binh Dinh Department of
Planning and Investment, said that as a wave of investment arrived to the
tourism and services sector, several real estate projects have contributed to
improving infrastructure and local tourism. Some notable developments include
FLC Sea Tower Quy Nhon, the Kim Cuc hotel and tourism complex, the BMC Quy
Nhon complex, TMS Luxury Hotel and Residences Quy Nhon, and the
According
to Nguyen Thi Kim Cuc, chairwoman of Kim Cuc Investment and Construction Co.,
Ltd., Quy Nhon is an emerging market where infrastructure and tourism have
yet to be fully developed. Quy Nhon seems to attract mainly local tourists in
the coming years, but hotel rooms and accommodations fail to keep up with the
rising demand.
She
added that the province has offered more favourable incentives to lure in
investors. Many luxury resorts and five-star hotels are underway in Quy
Nhon’s downtown and
Evaluating
Binh Dinh’s tourism growth and its tourism development strategy until 2020,
Dr. Tran Du Lich, head of the consultancy group for Central Coastal Region
Development and Co-operation, said that Binh Dinh is on the right track to
develop tourism to become the province’s key economic sector.
Bordering
Danang, Quang
According
to the Quang Nam Department of Construction, roughly 80 investors have
injected capital into high- and mid-end projects in the land plot, townhouse,
and villa segments in the province. However, the total stock is inadequate to
meet the demand, while the projects are quickly snapped up after launch.
New
Hoi An City and Hoi An Royal Residence in suburban Hoi An have made a splash
with their villa and condotel models. Meanwhile, several land plot and
townhouse projects like
According
to the Quang Nam Department of Construction, the northern Quang
Meanwhile,
the southern Quang
After
the Tam Ky-Tam Thanh route was expanded and upgraded, Tam Thanh has developed
new tourist attractions like
“In
the southern Tam Thanh residential project, the cost of land use rights
increased by 20-30 per cent compared to the floor price in 2017. Land prices
also rose by 50 per cent compared to the two previous years,” said Nguyen
Quang Tuan, director of the Management Board of Tam Ky Investment and
Construction Projects.
According
to the Quang Nam Department of Construction, Quang
Opportunities
are ample for investors in 2018, especially when infrastructure is fully
developed and connected with other cities and provinces in the central region
and nationwide.
Danang land plot segment takes divisive flight
Developers
have shifted their focus from the south to the northwest of Danang due to
news about infrastructure and planning. Opportunities are huge in the the
central real estate market in 2018, but the outlook is not that bright.
Following
the real estate fever in 2016, Danang’s land plot segment continued to
experience robust performance in 2017 with two spotlight segments.
The
first was the land plot segment in the south of Danang and the north of Quang
In
the first quarter of 2017, the market saw land prices nearly double from
VND2-3 million ($88-132) to VND4-5 million ($176-220) per square metre, even
reaching VND8 million ($352) along the Hoang Sa extended street. Prices hiked
in the area primarily because the Quang Nam People’s Committee has
green-lighted a slew of resort projects at an investment promotion conference
in the province. Meanwhile, the
To
the east from a planned tunnel through the Han River in Van Don-Thuan Phuoc
area of Son Tra District, land prices have escalated to a record high of
VND20 million ($880) per sq.m. Prices normalised at VND10-12 million
($440-528) when the prime minister decided to suspend the project and
reassess its feasibility.
The
second spotlight was the northeastern area which used to be quiet before the
latest news of Danang Railway Station,
Several
projects have been hunted by investors like
Land
prices have also been on a steady increase to VND7-10 million ($308-440) per
sq.m in the areas next to Golden Hills, up to VND15-17 million ($660-748) in
the centre of Lien Chieu District, which is almost the match of Hoa Xuan in
Cam Le District.
This
area is forecasted to become the hotspot of Danang’s real estate market,
especially after Sun Group’s grand designs have been outlined for Hoa
Ninh-Hoa Son Urban Area in Hoa Vang District. Accordingly, in a proposal
submitted to the Danang People’s Committee, the group said it aims at
inviting the world’s leading consulting firms like WATG, CallisonRTKL, Hyder,
and WSP to conduct research and planning to ensure the success of the
project.
In
spite of the tremendous potential of the Danang real estate market, analysts
have issued warnings to investors.
Southern
Danang has seen a boom in the land plot segment in the past two years, but
its infrastructure has yet to be fully developed. The construction progress
is slow at most of the projects in the area, apart from some urban areas
including FPT City, Hoa Xuan, Phu My An, Golden Hills and Sea View.
Most
projects have been delayed for several months, although the developers have
announced good sales performance and committed to completing infrastructure
facilities on time. At the planned Dien Nam-Dien Ngoc New Urban Area,
thousands of land plots remain undeveloped while buyers are waiting in vain
for their ownership certificates.
Vu
Trong Phung from real estate services firm 68 Land said that the land plot
fever in Danang in the past two years helped change the façade of several
areas in the central city and the north of Quang
According
to Tran Ngoc Thanh, general director of Dat Xanh Central Vietnam, developers
have failed to create a vibrant community due to a lack of customer support
and the incomplete infrastructure.
“When
customers purchase a property either for living or investment, they need to
carefully study the project and the developer, especially their capability
and track record of project development. After choosing the project,
investors and homebuyers should visit the site to observe the construction
progress before spending money,” Thanh added.
Meanwhile,
Phung noted that Danang features continuously strong economic growth and
ever-increasing living standards. The city keeps luring in a large number of
workers from other localities and the city’s population is projected to reach
two million people in the next few years. As a result, according to real
estate developers and brokers, the housing demand in the central city will
rise in the coming time, and it will also push up prices.
Le
Thanh Sang, director of Kim Thinh Real Estate, said that speculators are
distorting the landed property segment in the city. There are several land
plots left idle in Danang and the Dien Nam-Dien Ngoc in Quang
On
the same note, Dang Thanh Thien, manager of the Alo Dat Danang news website,
said that there is huge demand for affordable housing, but land gets pricey
in the city. Also, many projects have been left undeveloped, serving as a
deterrent for homebuyers to spend money.
The
central region has enjoyed a robust growth in tourism in 2017 with the
highlight of the APEC Economic Leaders’ Week in Danang, which gave a boost to
the region to lure in hospitality investors.
According
to statistics from the central cities and provinces, the region has attracted
an increasing number of tourist arrivals in 2017. Danang recorded six million
tourist arrivals in the first ten months of 2017, while Quang Binh welcomed
roughly three million. Nha Trang and
“The
central region is home to long stretches of sandy beaches. This, coupled with
urban development along the coast, gives the region an edge over other
tourism destinations in
Quang
Binh, known for its long coastline and rolling white sand dunes, has become a
new destination for hospitality investors. FLC Group has poured VND13.8
trillion ($607.2 million) into a resort complex with a golf course, villas,
and entertainment facilities in the central province.
In
Thua Thien-Hue, Lang Co is planned to become a new urban area with modern
hospitality services.
Not
far from Lang Co, at Vinh Thanh and Vinh An communes of Phu Vang District,
BRG Group is building a high-end resort complex with an investment capital of
VND2 trillion ($88 million). PSH Group from Spain is also conducting research
as well as completing investment procedures for Hue Amusement & Beach
Park worth VND1.06 trillion ($46.64 million) in the coastal communes.
Quang
In
Binh Dinh, FLC has developed FLC Quy Nhon Beach & Golf Resort with the
total investment of VND7 trillion ($308 million). This is the first
large-scale project on an international level that has been completed and is
fully operational at Phuong Mai-Nui Ba, a national tourist attraction. The
pioneer project is expected to impact the province as well as woo an
incredible number of tourists to Quy Nhon-Binh Dinh.
Along
with Danang and Phu Quoc, Nha Trang in Khanh Hoa is one of the three hottest
spots in the Vietnamese hospitality market. Numerous property giants have
flocked to the city with large-scale projects worth millions of dollars. Nha
Trang is now home to the largest number of hospitality projects in
Danang
and Nha Trang have been in the spotlight of the regional hospitality market.
According to real estate services firm Savills
According
to reports by CBRE Vietnam, there were 7,697 condotels, three golf courses,
and 771 villas on sale in Danang in the third quarter of 2017.
Meanwhile,
Nha Trang had 10,138 four- to five-star hotel rooms, 1,190 villas, and 10,913
condotels. CBRE Vietnam forecasts that this figure will increase to 36,715
rooms by 2020.
As
the wave of capital inflows to the central hospitality market shows no signs
of slowing down, concerns arise about a future oversupply, especially as many
condotel projects are underway. However, industry insiders said that the
hospitality segment is an attractive investment channel bolstered by strong
local tourism and high average occupancy rates.
“The
development of hospitality projects and large-scale entertainment complexes
along the central coastline will bring several benefits,” Erik Billgren,
general manager of Savills
According
to Billgren, the resorts and relevant services that centre on the coastline
of the region will help improve occupancy rates, catering, and other relevant
services. “These projects will create employment and tax revenue, which is a
good thing for socioeconomic development,” he said.
Duong
Thuy Dung, senior director at CBRE Vietnam, said that the wave of investment
in resort property was to meet visitors’ demands before and after the APEC
Economic Leaders’ Week took place in Danang in 2017. With the expectation
that property prices will increase after the major event, developers have
ramped up development in the city, especially condotel projects, in
anticipation of the trend.
Can Southeast Asia’s largest mixed-use development revitalise
Thu
Thiem,
Over
the past 30 years,
The
657-hectare site of Thu Thiem is located on the
Thu
Thiem is a strategic getaway from
Thu
Thiem will benefit from the future Metro Line No. 2, which stretches from Thu
Thiem (District 2) and ends in An Suong (District 12) with the total length
of approximately 19 kilometres. It is forecasted that once complete, the
metro line will handle approximately 480,000 passengers per day.
The
most common way to obtain land in Thu Thiem is through the build-transfer
(BT) agreement where a land plot is granted for developers in exchange for
investing in infrastructure in the new urban area. 45 per cent of the total
development site area have been officially approved through a BT agreement in
which Dai Quang Minh Real Estate Investment Corporation, the developer of
Sala City, has been granted the largest land bank in return for constructing
four main internal roads (Crescent Boulevard, Central Lakeside Road, Saigon
Riverside Road, and the road through the ecological forest located in the
Southern Delta), Thu Thiem Bridge 2, and a pedestrian bridge. In addition,
other parts of Thu Thiem are dedicated to this developer to build a
20-hectare Central Plaza and a 9-ha River Park, the 1:500 master plan of
which are in progress.
Similarly,
Ho Chi Minh City Infrastructure Investment JSC (CII) was granted
approximately 90,000sq.m of freehold land and 6,000sq.m of 50-year leasehold
land for residential and commercial purposes in exchange for the construction
of technical infrastructure for the northern residential area, which consists
of neighbourhoods 3 and 4 and the main North-South arterial road.
Phat
Dat Real Estate Development Corporation has also been approved by the Ho Chi
Minh City People’s Committee to conduct a study on the construction of Thu
Thiem Bridge 4, which will link the peninsula to District 7.
Alternatively,
land can be obtained through the bidding process. In 2011, the city
authorities started the first tender for land parcels in Thu Thiem. Prior to
2016, 10 per cent of the total development site area was granted through the
bidding process to different consortiums of large investors.
According
to the announcement of the Thu Thiem Management Authority, in the second
quarter of 2017, the remaining 16 per cent of the total development site will
be tendered with a focus on five parcels in neighbourhood 2a.
With
the majority of the total land bank in Thu Thiem confirmed, the remaining
available land bank is scarce, while the demand for investment remains
strong.
Land
values within Thu Thiem have increased by 30 to 40 per cent in the past three
years. While this is a considerable uplift, we believe it can be sustained
for the following reasons: (1) the initial land value is coming off a
relatively low base, (2) the speed of infrastructure construction has
increased dramatically during this period, (3) the most recent residential
projects launched in Thu Thiem have witnessed strong demand, and finally, (4)
Thu Thiem is the largest undeveloped clean and clear master-planned land
within the city centre.
On
average, land prices in Thu Thiem are approximately one-third of District 1
and relatively low compared to neighbouring districts such as districts 3 and
4. In addition to land values appreciating in Thu Thiem, the neighbouring
areas in District 2, such as Dong Van Cong, An Phu, and Thao Dien, have also
witnessed increasing land prices. With rapid urbanisation, the establishment
of Thu Thiem projects and some improvement in the legal and planning
framework, it is reasonable to say that land prices will continue to increase
over the coming years. The largest beneficiaries from this price movement
will be the early pioneer investors in Thu Thiem as the higher risks that
they had to bear in the early stage of development are compensated.
With
a booming high-end residential market and the abundant opportunities for
commercial development, District 2 has become the focal point for large-scale
developments in the last three years. Because of the quality of the master
plan and the proximity to District 1, Thu Thiem is possibly the most
attractive part of District 2.
The
Similarly,
Dai Quang Minh’s
Despite
the recent increase in transaction volumes and prices, JLL believes that the
current cycle has yet to reach its peak. It is forecasted that the supply of
apartments in Thu Thiem will rise in the coming years as a new wave of luxury
branded apartments from major investors is expected to hit the market. This
new wave of supply might establish a new price level in Thu Thiem as the
urban area becomes more developed with value-added services such as offices,
commercial areas, shopping centres, entertainment venues, schools, and
hospitals, among others.
The
apartment selling price is predicted to keep on rising and we expect that
this uptick will be an offset helping investors achieve the expected returns
as land prices increase. Given a growing economy with strong demand from the
buyers who either have cash on-hand or the ability to leverage, it is likely
to see that buyers are taking a long-term view in their purchasing decision
which is a positive sign for Thu Thiem. There are still plenty of investors
hunting for good investment opportunities in Thu Thiem at a reasonable land
price through acquisition or joint venture with good local partners. Hence,
we expect this trend to support strong sustainable growth in this focal
development of the city.
Although
officially planned since 2005, it took two years to complete the first bridge
and another four years to complete the tunnel, the second connection between
Thu Thiem and the city’s downtown area. The paucity of support for
infrastructure development and lack of incentives are the biggest impediments
to Thu Thiem’s development.
Nonetheless,
it is also observed that in these cases, it took time for the initial steps
to be accomplished. As soon as the infrastructure development takes shape,
the market will respond. Developers will be more confident and occupiers and
buyers will be attracted to this rising opportunity.
As
a late starter, Thu Thiem has the advantage of having an advanced master plan
and learn from the experiences of other townships. Local authorities are able
to introduce “smart city” concept and Thu Thiem will become
With
pressure mounting on the existing CBD and the renewed impetus to complete
major infrastructure, JLL believes that now more than ever since its
inception 12 years ago, Thu Thiem has reached a “tipping point.” It is time
for investors to set their sights on Thu Thiem for the investment
opportunities it offers.
CapitaLand to develop first integrated development in Hanoi
Stepping
up growth momentum in one of its key markets,
With
a fund life span of eight years, CapitaLand will hold a 50 per cent stake in
CVCVF with the balance interest held by MEA Commercial Holdings Pte. Ltd.
CVCVF
will focus on Grade A commercial properties in
According
to Lim Ming Yan, president and group CEO of CapitaLand Limited, this
mixed-use development allows the company to strategically diversify and
optimise its portfolio in
“With
this latest project, we expand our presence in the capital and reaffirm
CapitaLand’s commitment as a long-term partner in
“Together
with our $300-million CapitaLand Vietnam Commercial Fund, which was set up
last year, we are now closer to our five-year target of leveraging private
equity funds to grow our assets under management by S$10 billion ($7.54
billion) before 2020. We are pleased to be able to work with reputable
capital partners who want to invest through CapitaLand, given our deep local
insights and execution know-how. This allows us to scale up fast and be
nimble in seizing opportunities in fast-growing markets like
Chen
Lian Pang, CEO of CapitaLand Vietnam, added that the country was a key growth
market for CapitaLand and the company sees strong demand for vibrant, quality
live-work-play spaces with rapid urbanisation and the evolving lifestyles of
young and mobile Vietnamese people.
“Harnessing
our vast experience across different real estate types, this upcoming
integrated development will offer the best-in-class in homes, offices, and
malls which will attract young Vietnamese urbanites, multinational companies,
and local startups,” Pang said.
2017
was a year of stellar growth for CapitaLand in
The
integrated development will stand on an approximately 0.9ha site in Tay Ho
District, well connected to both the new and old business districts, and less
than a 20-minute drive away from Hanoi’s Noi Bai International Airport.
As
of the end of December 2017, it had S$948 million ($715 million) worth of
gross assets under management in
Apartment launches break year-long silence
In
2017, the
apartment
launches break year long silence
According
to research by CBRE Vietnam, the supply of new apartments in
Even
Hung Thinh Corporation, known as “the king of apartment distribution” in
On
the contrary, Novaland Group, which manages 40 major projects, did not
introduce any new projects to the market in 2017. The developer previously
planned to launch at least four new apartment buildings last year.
Similarly,
Him Lam Land Corporation, one of the leading developers in the south, only
unveiled one project named Him Lam Phu An in District 9, with more than 1,000
units.
Other
high-profile developers, such as Dat Xanh Real Estate Service &
Construction Corporation, Phuc Khang Construction and Investment Corporation
or An Gia Investment stayed silent during the entire year.
According
to Tran Khanh Quang, CEO of Viet An Hoa Real Estate Investment JSC, the
bureaucracy related to new projects was quite cumbersome. In 2017,
regulations were tightened, which means many developers got stuck in complex
legal procedures. This caused delays in launching new projects.
Another
reason for the lack of new supply on the real estate market is the on-going
inspections at some projects. This is especially true for 60 projects located
on land previously managed by state-owned enterprises (SOEs). During the
equitisation process of these SOEs, local authorities were strict in
investigating the intended usage of the land, some even requested a temporary
halt to construction works during the inspection.
It
is true that the market did not see much action in 2017. However, industry
insiders expect the market to spring back to life this year, as new
apartments finally find their way to the market.
Right
at the start of 2018, the
Similarly,
right at the start of 2018, Novaland has launched
Dat
Xanh also recently announced that it would launch 10,000 apartment units in
2018. Specifically, the new supply will come from four major projects,
including Gem Riverside in District 2 with 3,100 apartments in 12 towers;
Hung
Thinh is also gearing up for new product launches. Nguyen Nam Hien, CEO of
Hung Thinh Land, revealed that the developer will launch approximately 10,000
apartments in 2018, 4,000 of which will be introduced in the first quarter
via a project in District 7. Another project in the east of the city, with
3,000 apartments, will also be put on sale soon. Hien said that all of these
projects are ready to go on the market.
Smaller
developers are also launching apartment complexes this year. For example,
Dream House Investment Corporation (DRH Holdings) is ready to sell 500
apartments in Aurora Residences at
Meanwhile,
Hung Loc Phat Real Estate Service JSC will launch Green Star in the Phu My
Hung township in District 7, consisting of 100 villas and 1,000 apartment
units.
In
the east of Ho Chi Minh City, Daewon-Thu Duc Housing Development Corporation
will put on sale 544 apartment units at Centum Wealth. This project, which
spans an area of 11,585sq.m, features three 20-storey high-rise buildings.
At
the same time, Vingroup’s mega project called Vincity in District 9 is also
ready to launch 30,000 apartment units on the market this year.
According
to research done by most market consultants, the
Techcombank adjusts FOL to 8.54 per cent to approach foreign
investors
Techcombank
on March 3 announced at its annual general meeting (AGM) that it has lifted
its foreign ownership limit (FOL) to 8.54 per cent in a quest to offload its
treasury shares bought back last year from HSBC to foreign investors
potentially from the
The
Hanoi-based lender currently holds more than 172.35 million treasury shares,
accounting for 9.39 per cent of the total outstanding shares.154.87 million
of these will be available to foreign investors.
In
the first batch of treasury share sales, 93.24 million units will be offered
at the minimum price of VND23,445 ($1.06). The sale is expected to take place
in the first or second quarter of this year, after securing the approval of
the State Securities Commission.
Last
September, following the buyback from HSBC Holdings, Techcombank (OTC:TCB)
asked shareholders to lock the foreign ownership limit to nil until further
notice. The recent lifting of its FOL, according to the lender, is to prepare
to resell its treasury shares in line with the AGM resolution approved on
March 3.
The
share buyback from HSBC Holdings last year could have hurt Techcombank’s
capital raising plan, prompting the lender to subsequently issue 500 million
shares to existing shareholders and possibly other institutional investors to
make up for the capital shortage in the last months of 2017.
In
its report on Techcombank last year, Hanoi-based VPBank Securities (VPBS)
said, “The treasury buyback [from HSBC] totaled up to VND4.041 trillion
($183.68 million) and could be the reason behind the virtually non-existent
credit growth at the bank in the first six months of the year, as it had to
prepare large amounts of money for the buyback.”
Ho
Chi Minh City Securities Corporation (HSC) commented in one of its reports in
2017 that investor interest in acquiring Techcombank’s stakes is there, even
as global banks like HSBC Holdings or Standard Chartered Public retreat.
“Even
as established global banks, such as HSBC and perhaps also Standard Chartered,
are looking to sell their stakes in local banks as they step up to meet
“We
understand that these range from regional banks from
AIA delivers another year of excellent growth
The
Board of Directors of AIA Group Limited (stock code: 1299) announced that AIA
has delivered strong results for the year ending on November 30, 2017 with
double-digit growth across main financial metrics.
Ng
Keng Hooi, AIA’s group chief executive and president, said: “AIA has
delivered another strong performance with double-digit growth across our main
financial metrics. The value of new business increased by 28 per cent to
reach a new high of $3.512 billion and we also achieved strong growth in IFRS
operating profit and free surplus. Today’s results are the direct outcome of
the scale, quality, and breadth of AIA’s exceptional businesses across the
region and the significant progress we are making in delivering our strategic
objectives.”
The
board has recommended an increase of 17 per cent in the 2017 final dividend,
reflecting the strength of AIA's financial results as well as their
confidence in the outlook for the group.
AIA
has been in
AIA’s
extensive distribution reach, product innovation, trusted brand, and
outstanding people capabilities place them in a unique position to help
safeguard the financial security of consumers across the Asia-Pacific.
“Our
focus continues to be on the execution of our strategic priorities that will
build on our competitive advantages and make a material difference to AIA’s
future. I am confident that our teams will continue to deliver profitable
growth and long term value for our shareholders as we help our customers live
healthier, longer, better lives and plan for a brighter future,” Hooi said.
Eximbank offers $650,000 compensation in advance to swindled
customer
After
a meeting with Eximbank, Chu Thi Binh, who lost VND245 billion ($10.8
million), will check the arrangement carefully before receiving VND14.8
billion ($0.65 million) of advance compensation from Eximbank.
Chu
Thi Binh, who lost VND245 billion ($10.8 million) at Eximbank, has met the
bank’s Board of Management to find a solution. Eximbank agreed to pay VND14.8
billion ($0.65 million). The remaining amount will be paid after the court trial.
At
first, Binh did not agree to Eximbank’s proposal, as she wanted all of her
money returned, including the original amount and interest. Finally, she
agreed to check the arrangement carefully before making her decision.
Eximbank
said that the advance payment expresses the bank's responsibility for the
client, while waiting for the court.
Earlier
in 2013, Binh opened three savings accounts with the total original amount of
VND301 billion ($13.26 million), including VND247 billion ($10.9 million) in
the first account, VND49 billion ($2.16 million) in the second account, and
VND5.4 billion ($0.24 million) in the third account.
In
February 2017, upon the maturity date of the VND49 billion savings account,
she contacted the bank to withdraw the money, but Eximbank said that her
money has disappeared from the system. She checked all the saving accounts
and Eximbank informed her that VND245 billion ($10.8 million) has
disappeared.
Subsequent
investigation revealed that Le Nguyen Hung, former deputy director of an
Eximbank branch in
Growth boosts demand for industrial land
Demand
for industrial land around the country is expected to increase thanks to
significant growth in terms of both industrial production and FDI.
Last
year the city’s index of industrial production grew by 7.9 per cent while Hà
Nội’s expanded by 7.1 per cent.
FDI
flows into
At
HCM City IPs, according to real estate service consultant Colliers
International, at the end of 2017 the average annual rent was $142.2 per
square metre, an increase of 0.9 per cent from the previous year.
By
2025 it is expected that more 2,300ha in eight new industrial parks will come
into the market with a promise of better infrastructure and services.
From
now through 2025 rents are expected to increase sharply.
Authorities
around the country continue to offer incentives to promote supporting
industries.
The
Around
200 hectares in the Hiệp Phước and Lê Minh Xuân 3 Industrial Parks will be
earmarked for supporting industries.
Hà
Nội has 11 industrial parks with 2,700 hectares, mostly in outlying districts.
Rents
in Hà Nội’s IPs increased more than in
By
2020 Hà Nội will have 14 more IPs with 6,100 hectares in operation.
“With
a business-friendly environment and high demand from customers, we hope the
trend will continue through 2018,” David Jackson, general director of
Colliers International Việt
“Hà
Nội is a good location close to northern industrial centres like Hải Phòng,
Hưng Yên and Bắc Ninh, and this helps the city be the best location for IPs.”
In
other cities too, demand for industrial land has increased as many
enterprises have expanded their production since the beginning of this year.
For
instance, HTMP Ltd signed a contract with TNI Holdings Việt
Industrial
production has recovered and is expected to expand, and the occupancy ratio
at industrial parks has significantly increased, especially this year.
Mekong
Innovative Startups in Tourism (MIST) Startup Accelerator will extend its application
deadline for Vietnamese startups until March 24.
The
original deadline was March 10. Startups hoping to take advantage of the
deadline extension still must email mist@mekongbiz.org by March 10 to
announce their intention to apply.
The
Startup Accelerator provides support to early-stage companies with innovative
and scalable business models.
The
15 to 20 startups selected to the accelerator will attend an
all-expenses-paid intensive boot camp where they will compete for six months
of advanced mentorship, in-kind acceleration support valued at US$20,000,
prize money up to US$10,000, and customized business matching with potential
investors and partners.
The
Greater Mekong Sub-region’s government, tourism, and hospitality leaders have
embraced MIST as a force for innovation, sustainability, and growth in the
region,” said Jens Thraenhart, executive director of the Mekong Tourism
Coordinating Office.
“Through
this program, we have created the ideal mechanism for tourism innovators and
travel startups to get paired with investors and industry mentors who can
equip them to scale and thrive.”
Jason
Lusk, director of the MIST programme, explained that the decision to extend
the deadline was made after the Tet (Lunar New Year) holiday. “We have seen a
blossoming of interest from tourism startups in
“It
made sense to extend the deadline in light of this heightened interest in our
programme from quality startups,” Jason said.
Destination
MIST
aims to expedite tourism industry growth, create an ecosystem that inspires
innovation, and promote sustainability in tourism.
Interested
companies can find application details online at mist.asia.
Project to promote exports to Middle East
Vietnamese
export companies will have opportunities to set up distribution channels in
the Middle East thanks to a market research programme launched by the
Investment and Trade Promotion Centre in HCM City and the Vietnamese
Embassy’s Commercial Affair Office in the United Arab Emirates (UAE).
The
research will be carried out from March 4-9 this year. It aims to help rice,
food and fruit exporters seek opportunities in Middle Eastern nations.
According
to the Ministry of Industry and Trade, trade between
The
country mostly imported materials for domestic production, such as plastic,
liquefied gas, electronic spare parts, machines and animal feed, from the
Thanh Hoa hands over expanded site for Nghi Son refinery plant
The
People’s Committee of the north central
The
committee also presented a land use right certificate to the project on March
3.
This
is a significant move to ensure safety and security for residents living near
the construction site of the complex.
The
expanded site has a total area of 110.4 hectares spanning
Land
clearance has been carried out since 2013 with the resettlement of more than
1,000 households and the disarmament of bombs, mines, explosive materials and
toxic substances. Local authorities have given resettlement land for 985
households.
Director
General of the NSRP complex Turki Alajmi thanked local people in Hai Yen
commune for ceding land for the refinery.
This
also creates extra land funds for the expansion of the project in the future,
he added.
Earlier
on February 28, Nghi Son Refinery & Petrochemical Limited Liability
Company received the Ready For Start Up (RFSU) certificate for its NSRP
project.
Turki
Alajmi said: “We are proud to achieve this critical milestone for the NSRP
project today. The project is strategically important to meet the growing
domestic demand for refined and petrochemical products driven by rapid
industrialisation and modernisation of the country.”
He
thanked all the stakeholders in the NSRP project, including the Government
and Thanh Hoa authorities, who have provided a favourable investment
environment for the project.
The
NSRP project is a joint venture sponsored by four internationally reputed
corporations including Vietnam Oil and Gas Group, Kuwait Petroleum Europe
B.V. from Kuwait, Idemitsu Kosan Co. Ltd and Mitsui Chemical, Inc. from
The
refinery will have capacity to process 200,000 barrels of crude oil per day
imported from
The
total estimated cost of the project is 9 billion USD, making it the largest
foreign direct investment project in
The
refinery is scheduled to produce its first commercial oil products in May
this year.
Once
operational, the project will help ensure national energy security. It is
expected to contribute 10 trillion VND (436 million USD) to the local budget
in 2018.
Investment from state budget exceeds 29 trillion VND in two
months
Total
investment capital from the State budget was estimated at more than 29
trillion VND (1.27 billion USD) in the first two months of 2018, equivalent
to 8.6 percent of the yearly plan.
Of
the figure, which was 6 percent higher than the same time last year, 5.6
trillion VND (247.8 million USD) came from the central budget, up 0.5 percent
year-on year, and the remaining was managed by localities.
In
February, total investment from the State budget was calculated at 12.58
trillion VND (553.52 million USD).
The
Ministry of Planning and Investment (MPI) said most of the capital has been
spent on construction works that began in 2017 and brand new projects.
According
to the MPI, the total investment capital from the State budget, excluding
Government bonds, planned for 2017 was 307.15 trillion VND (13.5 billion
USD).
By
the end of June 2017, more than 303.07 trillion VND (13.3 billion USD) or
98.7 percent of the sum was allocated. The remaining 4.074 trillion VND was
capital intended for the national target programme on climate change response
and green growth, two new projects of the Ministry of Agriculture and Rural
Development and the northern mountainous
Fruit, vegetable exports continue growth trend in two months
Fruits
made up 87 percent of the total value, according to General Department of
Customs.
Most
exported fruits and vegetables were crude products, accounting for more than
93 percent of the total export value. Meanwhile processed products comprised
only 6.6 percent.
According
to the Ministry of Agriculture and Rural Development,
The
ministry said 2017 was a “bumper” year for Vietnamese fruits, with surging
export turnover and entrance into many demanding markets.
There
is still potential for Vietnamese fruits and vegetables in the global market,
which requires the country to focus on to processing and exploring new
markets instead of traditional ones.
VNN
|
Thứ Tư, 7 tháng 3, 2018
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