Thứ Năm, 26 tháng 7, 2018

BUSINESS NEWS IN BRIEF 26/7

Vietnam’s exports witness motivation for greater growth

DDD 

Vietnam will see great momentum for stronger export growth in the second half of 2018, with its export-import turnover estimated to reach the 500 billion USD benchmark by 2019.

The prediction was given by experts during a workshop held by the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City on July 20.

According to Nguyen Viet Hung from the General Department of Vietnam Customs (GDC), Vietnam’s import-export value reached 225 billion UDS in the first half of 2018, up nearly 13 percent year-on-year.

The country’s export turnover increased by 16.3 percent year-on-year to nearly 114.2 billion USD in the reviewed period. Meanwhile, it spent 110.8 billion USD on importing goods, up by 9.6 percent. The country enjoyed a trade surplus of 3.4 billion USD in the first two quarters.

Statistics from the GDC show that Vietnam’s exports structure in 2018 is almost unchanged compared to 2017, with key exports being phones and electronic components; textiles and garments; and footwear and handbags.

Foreign-invested enterprises continue to be the main driver of Vietnam’s export growth for the year.

According to the Ministry of Industry and Trade, domestic businesses reported a 19.9 percent rise in exports by shipping 33.07 billion USD worth of goods abroad in the first half of the year. Meanwhile, FDI enterprises earned 80.86 billion USD from exports, up 14.5 percent from the corresponding period last year.

Vietnam exports goods to 200 countries and territories over the world, with 27 markets reaching an export turnover of over 1 billion USD, and the top 10 largest global markets accounting for 88 percent of the country’s export turnover.

The US remained the biggest importer of Vietnamese commodities, followed by the EU, China, Japan, and the Republic of Korea.

Hung said with the positive growth rate reported in the first half of the year – and taking into account that second half import-export growth is always forecast higher than the first half – Vietnam’s import-export turnover is likely to hit 475-477 billion USD, with a trade surplus of around 4.5-5 billion USD.

Associate Prof. Dr. Tran Dinh Thien, Director of the Vietnam Institute of Economics, attributed to the positive situation to the growth momentum from 2017.

The structure of Vietnam’s exports is shifting from exploitation sectors to processing and manufacturing industries, which can help improve the value of goods and sustain steady growth, he said.

The increasingly fierce competition among big economies also creates opportunities for Vietnamese enterprises to access niche markets, thus further promoting exports, Thien added.

However, VCCI Vice Chairman Doan Duy Khuong pointed out some of the difficulties facing the sector as the country’s export turnover is mainly contributed to by FDI firms, while the trade surplus remains low and unsustainable.

Vietnamese exporters are mainly small- and medium-sized enterprises, which still cross difficulties in accessing policy and export market information regarding competitors and potential customers, Khuong said.

To improve the export value and promote the involvement of Vietnamese firms in the import-export field, it is necessary to increase the quality and supply of market forecasting, as well as taking measures to solve challenges from the tariff policy changes of Vietnam’s key trade partners.

Enterprises were advised to focus on improving their competitiveness through promoting technological application in production and being active in capturing market trends for sustainable development.-VNA

Experts: Vietnam must work hard to meet export targets

Vietnam’s exports of agricultural products are expected to face more challenges by the end of the year, so enterprises must follow market developments at home and abroad and improve the quality of their products, according to experts.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said Vietnam’s exports of goods, especially agro, forestry and seafood products are facing a number of obstacles in major markets, including impacts from the US-China trade war and the European Union (EU)’s “yellow card” warning against fisheries exports.

With the “yellow card”, all exported seafood products from Vietnam to the EU have had to be checked by the authorities of the importing country. That is a big barrier for Vietnamese products in one of the country’s major markets.

Minister of Trade and Industry Tran Tuan Anh said there would be no small difficulties for Vietnam’s exports if the US-China trade war is prolonged. By the year end, Vietnam’s exports of goods are expected to face many challenges.

Importing countries would further strengthen protection measures, food safety standards and environmental protection standards. Those would make it difficult for Vietnam’s exported products to enter those markets.

Besides that, there is the US catfish inspection programme, Forest Law Enforcement, Governance and Trade (FLEGT) for wooden products and regulations on traceability in many import countries.

Therefore, according to the Ministry of Industry and Trade, enterprises need to update market information and improve the quality of export goods, meeting strict regulations and standards in export markets.

The ministry said the fisheries industry must work hard by January 1, 2019 to remove the yellow card.

According to the Ministry of Agriculture and Rural Development, the national export value of agriculture, forestry and seafood products in the first six months of this year marked a year-on-year increase of 12 percent to reach 19.4 billion USD.

Of this, the export value rose by 9.7 percent for agricultural products to reach 10.3 billion USD, by 10.5 percent for seafood products to 3.94 billion USD and by 12.7 percent for main forestry products to 4.33 billion USD compared to the same period last year.

Other products that recorded high export growth in the first six months of the year included rice (up by 42 percent to 1.81 billion USD), vegetables and fruits (up by 20 percent to 2 billion USD), cashew nuts (up by 16.4 percent to 1.71 billion USD) and wood and wooden products (up by 12.1 percent to 4.1 billion USD).

The US and China are the two largest export markets for Vietnam’s farm produce, especially vegetables and fruit, so the trade war between the two countries would have a big impact on such products in Vietnam.

Experts in the agricultural sector said that under pressure from the US’ increase of import tariffs on Chinese exports, China’s agricultural products will have to find alternative markets.

With great supply and cheap price, Chinese vegetables and fruits will continue to compete with Vietnamese versions. Meanwhile, to avoid China’s high import tariff at 25 percent for US agricultural products, the US is likely to promote export agricultural products to Vietnam, including fruit as well as meat of cattle and poultry.

The General Department of Vietnam Customs said in May, US meat imports accounted for 37 percent of the total import meat volume to Vietnam, becoming the largest exporter of meat to Vietnam. The US exported 11,000 tonnes to Vietnam in May, worth more than 13 million USD, a month-on-month increase of 50 percent in value.
Seminar talks sustainable avocado farming in Dak Nong
The People’s Committee of the Central Highlands province of Dak Nong held a scientific seminar on sustainable avocado farming in Gia Nghia township on July 20, as part of the “Dak Nong: Ripe Avocado Season” programme. 
Representatives from SAM Agritech Co., Minh Hung Co., and Western Highlands Agro-Forestry Scientific and Technical Institute joined experts from New Zealand in sharing their experiences and solutions in improving the value of avocados. 
Delegates introduced several kinds of popular avocado; farming techniques; harvest, preservation, and processing methods; avocado-sourced food and cosmetics production; and  consumption of avocado products. 
Emmet Mcelhatton, Business Development Manager of New Zealand Trade and Enterprises, said local farmers should pay further attention to land and variety management to ensure the best quality avocados for domestic consumption or for export. 
At the event, representatives from SAM Agritech Co., the New Zealand Agency for International Development, and the New Zealand Plant and Food Research Institute signed an agreement on avocado farming in the province. 
According to the provincial Department of Agriculture and Rural Development, weather and soil conditions in Dak Nong are highly suitable for avocado farming. 
The province is home to nearly 2,600ha of avocado trees with an output of 10-15 tonnes per ha. The local avocado cultivation area and output has increased in recent years. The fruit is expected to help farmers improve their income sustainably.
Binh Duong calls for investment in port, wharf construction

The southern province of Binh Duong has called for more investment for the construction of a provincial wharf which will help to facilitate operations in local industrial and processing zones, said Chairman of the provincial People’s Committee Tran Thanh Liem.

More than 2 trillion VND (88 million USD) is needed to develop the province’s port and wharf system from now until 2025, he added.

Binh Duong is striving to start the construction of its port and wharf system in order to meet the transport demands of more than 8 million tonnes of freight and over 3 million passengers by 2020.

The province is due to complete the system after 2025, with a goal to handle over 40 million tonnes of goods and serve 8 million passengers by 2030, while water transportation accounts for 15 percent of the province’s transport demand.

Accordingly, Binh Duong plans to develop several container ports on the Saigon River – namely An Son, An Tay, Rach Bap, Phu Cuong Thinh, and Thanh An – along with Tan Van, Thai Hoa, Thanh Phuoc and Thuong Tan ports on Dong Nai river.

By 2020, the capacity of An Son port on the Saigon river will be raised to 2.5 million tonnes per ha. Meanwhile, An Tay port will be built on an area of 15ha and be capable of receiving vessels up to 3,000 tonnes by 2030.

Tan Van port is set to become a logistics centre on Dong Nai river before 2020 and Thai Hoa port will be built as a centre for the supply of components and materials for the province’ industrial parks.

In addition, Thuong Tan port will facilitate the transport of mining material to other localities. Those ports are expected to receive ships weighing in at 2,000 tonnes.

Relevant agencies of Binh Duong are working on the revision and classification of the current local port and wharf system to devise suitable investment plans in line with the province’s socio-economic development.
Made-in-Vietnam desalination equipment shipped to Saudi Arabia
Doosan Heavy Industries Vietnam Co.’s (Doosan Vina) first batch of seawater desalination equipment left Dung Quat port for Saudi Arabia on July 19.
This is part of the 430 million USD Shoaiba-4 Seawater Reserve Osmosis (SWRO) desalination project, inked between Doosan Vina and Saudi Arabia’s Saline Water Conversion Co. (SWCC). Under the deal, Doosan Vina and Doosan’s subsidiaries will produce some 1,727 tonnes of desalination equipment for the project.
The first batch with 566 tonnes of equipment is expected to dock at Saudi Arabia in the next three weeks. The following three shipments are scheduled for August, September, and December. 
The Shoaiba-4 project will meet the potable water requirements of Saudi Arabia’s second largest city, Jaddah, with a population of 5 million people. Once the Shoaiba-4 water plant becomes operational, it will produce 400,000 cubic metres of fresh water per day, or 146 billion litres of drinking water per year, which is equivalent to 58,400 Olympic swimming pools. 
The four phases of the desalination facility will have a combined capacity of over 400 trillion litres of water per year.
Shoaiba-4 is the first of many major WWRO desalination projects to be built in Saudi Arabia following the reorganisation of the country’s water sector in 2016.
National Single Window mechanism proves effective
The implementation of the National Single Window (NSW) and ASEAN Single Window (ASW) customs mechanisms has produced positive results, facilitating trade development in Vietnam, said Deputy Finance Minister Vu Thi Mai at a press conference on July 19.
According to Mai, as of June 10, 11 ministries and sectors have connected to the NSW since it was launched in November 2014. As a result, 53 administrative procedures involving nearly 1.26 million documents of 22,000 enterprises have been handled through this mechanism.
By the end of this year, an additional 143 administrative procedures will be carried out through the mechanism, raising the total to 196, equivalent to 78 percent of the 251 procedures expected to be implemented by 2020, she added.
Regarding specialised inspections on imports and exports, Nguyen Cong Binh, deputy head of the Customs of Vietnam, said the customs sector has coordinated with relevant ministries and sectors to step up reform of modes of specialised inspections and management, and reviewed legal regulations on these works to detect shortcomings.
Deputy Minister Mai stated that the implementation of the NSW and reform of specialised inspections have created confidence and resolve in leaders at all levels.
They are aware of the need to hasten reform and apply new management technologies with international standards while making policies and institutions, she noted.
The business community has welcomed the change in Government agencies, and hoped that the Government will speed up the expansion of the implementation of the NSW mechanism and reform of specialised inspections.
Vietnam’s international organisations and development partners such as the World Bank, the European Union, the US, Japan and the Republic of Korea have acknowledged the Government’s reforms, she added.
The official said that a national conference on boosting the NSW and ASW customs mechanisms will be held on July 24.
Bao Viet tops Vietnam insurance market
The Bao Viet Group ranked first among the insurance companies in Vietnam with a revenue of more than 9.9 trillion VND (nearly 423.7 million USD) in the first half of 2018. 
According to the Vietnam Insurance Association, the firm’s revenue from new insurance contracts in the said period of time reached 2.42 trillion VND (105.7 million USD).
The total revenue of the 18 life insurance firms operating in Vietnam hit 36 trillion VND (1.57 billion USD) in the first six months of this year, while their insurance premiums from new contracts reached 12.5 trillion VND (546.3 million USD), up 128 percent and 125 percent, respectively, against the same period last year. 
The top five insurance market leaders are Bao Viet, Daiichi, Prudential, Manulife and AIA. 
With the positive revenue growth, representatives of many businesses are optimistic about the development of the life insurance sector in Vietnam. 
They said that Vietnamese people are becoming more aware of the role of life insurance in preventing risks and protecting their lives.
SOEs divestment lags behind schedule

 DDD

The equitisation plans of eight State-owned enterprises (SOE) were approved in the first half of 2018, with a total value of 29.37 trillion VND (1.29 billion USD), including more than 15.16 trillion VND (667.04 million USD) of State capital, the Ministry of Finance has reported.

The ministry further revealed that per the schedule agreed by Prime Minister Nguyen Xuan Phuc, at least 85 enterprises must complete their equitisation in 2018.

In the first six months of this year, SMEs divested 2.5 trillion VND (110 million USD), withdrawing more than 6.45 trillion VND (283.8 million USD).

The PM had asked for the divestment of 135 SOEs in 2017 and 181 in 2018. However, only five companies completed the work in the first six months of 2018, bringing the total enterprises to have divested to 16 so far.

Deputy Minister of Finance Huynh Quang Hai said the progress of SOE’s equitisation and divestment has remained slow.

The ministry said the reason for this was ineffective implementation of the PM’s directions, while problems in finance, land and labourers also hindered the work.

At the same time, despite the issuance of solutions for the problems, the implementation of the solutions remained inefficient, especially in land-related issues.

The ministry said that to promote the process of equitisation, divestment and restructuring of SOEs, in the rest of the year, agencies should review relevant laws such as the Law on Enterprises, the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, the Law on Public Servants and the Law on Bankruptcy.

Meanwhile, ministries and sectors should design mechanisms and policies to submit to the Government and Prime Minister, including a decree on operations of SOEs, a decree on the rights and responsibilities of State capital owner representatives, and another on the production and supply of public products and services.

The ministry highlighted the need for owner representatives in enterprises subjected to equitisation and divestment in 2018-2020 to complete the plan on schedule. Enterprises which are unlikely to finish the work on time should report their difficulties to the Government.

It also requested SOEs review land under their management to build land use plans in accordance with the Land Law and submit the plans to State management agencies before equitisation.
Da Nang tourism makes spectacular leap in past decade

 DDD

Da Nang city has made a “spectacular” leap forward in tourism development over the past decade, said Chairman of Da Nang Tourism Association Huynh Tan Vinh.
Located between two famous destinations of the ancient imperial capital of Hue and the ancient port city of Hoi An, Da Nang used to be merely a transit point without any outstanding attractions. 
Deciding to make tourism a spearhead sector, the city has invested in infrastructure, adopted policies to attract investors and created its own events, such as the international fireworks festival and international sport tournaments. 
The efforts have paid off, with a three-fold increase in the number of visitors from 1.2 million in 2008 to 6.6 million in 2017 and a ten-fold rise in tourism revenues, from 2 trillion VND in 2008 to nearly 20 trillion VND last year. 
Chairman of Da Nang Tourism Association Huynh Tan Vinh noted that in the past decade, hotel rooms in the central city have increased 10 fold to over 28,800, with the arrival of big brands like InterContinental Danang Sun Peninsula Resort, Novotel, Hyatt Regency Danang Resort and Spa, Vinpearl and Pullman.  
According to deputy director of the municipal Department of Tourism Tran Chi Cuong, the municipal People’s Committee is implementing a tourism development project this year with a total cost of 14.4 billion VND (629,582 USD).
The project aims to improve quality of services and develop various forms of tourism such as ecological tourism, village tourism and waterway tourism, he revealed.
Statistics from the municipal Department of Tourism showed that the number of visitors to the city grew at an annual average rate of 20.06 percent in 2013-2017. 
Over the past decade, the central coastal city has also made it into many top-ten lists in the world. 
Da Nang was named in the top 10 holiday places in Asia of the prestigious online tourism magazine Smart Travel Asia and top 10 fresh destinations of the global online accommodation reservation provider Agoda in 2013. 
The listing has enabled the city to reach out further to the world, according to Amir Ahmad Mohamad, general manager of Hoang Anh Gia Lai Plaza Hotel Da Nang.
Da Nang International Airport was ranked third among the best airports in the world in 2014, according to a survey by Dragon Air.
The InterContinental Danang Sun Peninsula Resort won the Asia’s Leading Luxury Resort in 2014 thanks to its perfect combination of traditional beauty and modern, luxurious standards.
The US’s Forbes Magazine selected My Khe Beach in Da Nang as one of the six most attractive beaches on the planet in 2013.
The cable line that takes visitors to the peak of Ba Na Hills at an altitude of 1,487 metres in just 17 minutes and is able to carry 3,000 passengers per hour won four Guinness Records in 2013.
The US’s New York Times listed Da Nang among 52 places to go in 2015. 
On the list of the world’s top 10 destinations for 2018 compiled by the online marketplace and hospitality service Airbnb, Da Nang was ranked fifth in booking surges of up to 255 percent.
This year, the city was ranked the second most popular destination for solo or couple travellers, according to the Republic of Korea’s Ticket Monster Inc.
The website said people who plan to travel abroad with family members often chose Da Nang.
The RoK is expected to surpass Chinese tourists and become the biggest group of visitors to Da Nang in the near future.
According to the Vietnam National Administration of Tourism, Da Nang was said to be the best place to live in Vietnam with many world-recognised records.
More opportunities for poultry export to Japan

Japanese consumers’ demand for Vietnamese processed chicken will open up more opportunities for Vietnam’s animal husbandry sector, according to experts.

This year up to July 12, Koyu & Unitex Ltd Co. shipped 600 tonnes of the meat to Japan.

Earlier in late 2017, it installed two additional processing lines to increase capacity and diversify products for export. Also, CP Vietnam Jsc and Leow Casing Vietnam Ltd Co submitted their export plans and asked the Ministry of Agriculture and Rural Development’s Department of Animal Health to negotiate with the Japanese Department of Animal Health on exporting processed chicken and hotdog cases made from lamb and pig guts to Japan.

On May 14, the Japanese side sent a letter to the Vietnamese Department of Animal Health approving vet hygiene conditions and quarantine certificates for processed chicken meat and the hotdog cases.

From May 27 – June 2, a delegation of Japanese Department of Animal Health took a fact-finding trip to Vietnamese processors whose products are destined for Japan. It also allowed Koyu & Unitek to expand exports of poultry meat and processed products to the country from June 15.

It is considering CP Vietnam’s and Leow Casing’s applications.

Besides chicken, Deputy head of the Vietnamese Department of Animal Health Dam Xuan Thanh said more support will also be given to pork manufacturing chains to prevent epidemics such as foot-and-mouth disease and hog cholera.

The department will also promote trade and work with authorities of China, Hong Kong, the Republic of Korea, Australia, Russia, Mexico and Saudi Arabia to lift bans on importing animals and their products, he said.
Workshop discusses HR skills required for industry 4.0     
As technology advances relentlessly, senior human resources executives must not only have the skills to do their job but also need to develop the skills of the future, a workshop heard in HCM City last week.
Nguyen Thi Quynh Phuong, director of executive search and selection at Talentnet, an HR consulting firm, said the top 10 skills that “talent acquisition” (TA) need to have in the industry 4.0 era include social selling with design thinking, recruiting with agility, situational judgement, commercial awareness, digital literacy-artificial intelligence, managing ethical dilemmas, data focus and storytelling, and market research and strategising.
Nguyen Cao Tri, vice president, SMB and retail business at steel firm NS BlueScope, said commercial awareness and data focus and storytelling skills are important skills for TA.
TA must tell candidates their company’s advantages compared to other companies to engage and inspire them to join.
Talent acquisition is a process that encompasses mapping, scanning, recruiting, acquiring, getting people on board, and retaining skilled human resources and developing them.
It is a long process and of course humans play a key role in recruiting and developing talent, but technology also plays a role in each stage of the process, he said.
Tran Van Tho, tax partner at Parker Randall, said TA need to have a scientist’s skills to analyse data and understand more about their candidates so that they can appeal to and influence candidates by storytelling about their companies.
Another important skill for TA is strategising, he said.
TA or HR managers must understand their companies’ operations to identify a talent pool so that they can approach and sign up talented people when the company needs them, he said.
LinkedIn other social networks, workshops and forums are sources for TA to search, network and build relationships with potential candidate communities to build a talent pool for their companies, he said.
Many companies have invested in tools to map talent in the market, even follow their movements in the job market to approach them when needed, he said.
Le Quang Dai, managing director of CLF (Duy Tan Group), said acquiring talent needs talent influencers/advisors’ skills.
TA must understand thoroughly about the position they need to recruit for to counsel candidates so that the latter can make the right decision, he said.
Delegates agreed that the development of technology has changed the way recruiting is done and TA must utilise new technologies in their job.
They also agreed that co-ordination between HR and other divisions in an organisation is key to a company’s success.
Phuong from Talentnet also spoke about global recruitment trends by sector, function and geography.
The technology sector is expected to experience the strongest growth this year, followed by healthcare/life sciences, industry, financial services and retail, she said.
The US and Asia are forecast to see the biggest recruitment growth this year, she said.
The Association of Executive Search Consultants, which represents a vetted, exclusive class of executive search and leadership advisory firms world-wide, predicts that CEO/board of directors and IT director, finance director, sales director, and HR director are among functions forecast to experience the most demand growth this year, she said.
Organised by Talentnet, the workshop titled “Talent Acquisition: Blend with business” was attended by more than 100 delegates, mostly HR executives.
Lottery council wants a lot of tickets
     
The Southern Lottery Council wants all 21 members to print VND100 billion (US$4.37 million) worth of tickets every week.
To take advantage of growing demand, the council said its members – all public companies and at the rate of one per province or city – should continue to strive for a higher output.
The members said they would try to reach VND90 billion per week by October 1 this year and VND100 billion by January 1.
Their printing currently ranges from VND80 billion to VND90 billion worth of tickets.
Ho Kinh Kha, director of the Tien Giang Province’s Department of Finance, said large companies should help smaller ones so that all of them sell the same number of tickets.
Phan Thanh Son, an official from the Ministry of Finance, said his ministry was working on reforming the lottery market to improve its efficiency and enable growth.
In the first half of this year the member companies’ revenues rose by 17.44 per cent.
Their pre-tax profit rose by 12.05 per cent.
Last year the Southern Lottery Council’s members contributed VND24 trillion in taxes and donated over VND205 billion to charitable causes like healthcare, scholarships and disaster aid and VND81 billion to build and repair houses for poor people. — VNS
Digital transformation imperative for industry 4.0
 “Digital transformation or losses?” was the thorny question for Minh Phu Seafood Company a few years ago.
A leading fisheries exporter, it shipped its products to over 50 markets around the world, earning annual revenues of VND12 trillion (US$526,000).
As orders grew rapidly, the company was finding it hard to accept all of them.
“This … required us to increase our capacity by five-10 times,” CEO Le Van Quang said.
However, increasing its 14,000-strong workforce by five to 10 times was impossible and this forced the company to explore alternative solutions.
“For five years I went to many countries to study this issue and found that digital transformation was the best way for the company to survive and grow. It helps cut costs and improve efficiency.”
The company decided to invest in digital transformation by acquiring advanced technologies like artificial intelligence (AI) and using them in raising and processing shrimps.
Minh Phu is not the only Vietnamese company to embrace digital transformation in production.
With the fourth industrial revolution taking root, digital transformation is an inevitable trend that companies around the world and in Viet Nam have to embrace sooner rather than later to remain in the race.
It means the use of the internet of things (IoT), big data, cloud, and AI to enhance production efficiency.
Prof Ho Tu Bao of the Viet Nam – Japan International Institute for Science of Technology said: “Digital transformation is not just a change related to using technology. It is a change related to the business culture.
“Digital transformation is imperative. A company might fall in line sooner or later but they cannot avoid it.”
Tran Van Huan, APAC digital advisor at Microsoft Vietnam, said: “It is time to achieve your next digital business transformation.”
He quoted a report by IDC as saying that 70 per cent of manufacturers would embrace digital transformation by 2020.
“In the digital era, the fast fish eats the slow fish,” he said, pointing to the success stories of Uber and Grab.
Digital transformation would help companies increase their revenues by 30 per cent while cutting costs by 30 per cent, he said.
A recent report by Microsoft showed that the GDP of the Asia Pacific including Viet Nam would grow by an additional 1 per cent every year if the region’s manufacturing sector embraces digital transformation.
Digital transformation is obviously the way to go but not all companies in Viet Nam, over 90 per cent of them small and medium-sized enterprises (SMEs), are ready for it.
There are many factors that prevent them from digitising, with cost, data security and human resources being the three main ones.
Vu Kim Hanh, chairwoman of the High-quality Vietnamese Goods Business Association, said she has worked with many companies to study whether they are ready for digital transformation.
“I found that companies worry about money. They are afraid they do not have the money to buy technologies, machinery and software.
“They then worry about security and losing information and business secrets when using new technologies based on cloud or IoT.”
Human resources is also a concern as companies need to train and retain people for long, she said.
Lucky Gani, marketing and operation lead of Microsoft Vietnam, said three factors prevented companies from digitising: lack of skills and resources, cyber security and growing threats and a siloed and resistant culture.
For Bao, the biggest hurdle to digital transformation for Vietnamese companies is that they do not understand digital infrastructure as well as other infrastructure.
Furthermore, the country lacks a legal framework for a digital economy, he said.
Lack of human resources is another problem, he added.
Quang of Minh Phu Seafood, as an entrepreneur, saw a different problem.
The biggest obstacle, he said, is the fact whether a company can recognise its problem. If it can, it will surely embrace digital transformation.
However, there have been pioneers who went down the path of digital transformation and achieved fruitful results.
Minh Phu is a clear example.
Quang said in the early days he was worried about the cost of AI. He need not have, as it turned out.
The investment in technology and AI has been completely worth it, he said.
He cited one example. In the past the company needed several machines to assess the water quality in shrimp ponds by measuring PH, NH3, salt, and other, with each machine costing billions of dong.
But thanks to AI, one machine now measures all parameters and precisely, and it cost just US$5,000.
AI would also help cut the company’s workforce by 50-70 per cent in the next five or seven years, he said.
“With digital transformation, with AI, all problems can be solved.”
Quang said companies should embrace the trend of digital transformation and pioneers like him are ready to offer assistance and share their experience.
Phuong Nam Yarntex Joint Stock Company is another success story in digital transformation.
Speaking to Viet Nam News, the company’s director, Luong Vu Ngoc Duy, said he studied in a foreign country and returned to manage his family business a few years ago.
When he came back the company’s data had been in a mess since his family had not cared to digitise it, he said.
It took him six months to persuade his parents to invest $200,000 in technology.
Technology and machines have helped the company link up and control information, he said.
They provide the most efficient information on how to manage inputs and identify the right customers, Duy shared.
"In the past the company had been run based on people’s experience and relationships. Now, with new technologies, the company takes advantage of both humans and machines to achieve better business results.
"After it embraced digital transformation, the company’s revenues jumped by 80 per cent," he said.
While there are many causes for this jump, digital transformation has been a major one, and his company would invest more in technology including AI, he said. 
HCM City push to semi-process produce     
The HCM City Department of Industry and Trade is pushing for semi-processing agricultural products in Lam Dong Province before transferring them to wholesale markets in an aim to reduce vegetable waste and save costs.
Lam Dong was chosen as the first province for the project to encourage more washing, filtering and packaging of products.
The three main wholesale markets, Binh Dien, Thu Duc and Hoc Mon, in HCM City receive about 9,200 tonnes of agricultural goods and discharge around 240 tonnes of waste. Ninety per cent of the waste comes from processing products.
The three markets spend around VND2 billion (US$87,000) per month treating waste.
Bui The, deputy director of the Department of Industry and Commerce in Lam Dong, said the province was instructing producers and traders to supply semi-processed products to HCM City as it could help save costs on waste treatment and frequent sterilisation of the wholesale market.
The HCM City Department of Industry and Trade said that semi-processing of harvested goods would preserve them longer, meaning fewer crops would spoil via transport from the provinces to HCM City.
Dr. Vo Mai, deputy chairwoman of the Viet Nam Horticulturists’ Association, said waste from agro-products and food after semi-processing could be used to produce organic fertilisers.
Lam Dong Province and HCM City are working together on standardising semi-processing procedures that every farming household must follow.
Bui The said that many businesses lacked the resources to process and package a large amount of harvested goods quickly.
Currently, radishes and white radishes in Lam Dong are semi-processed before being transported to HCM City. More types of vegetables will go through a similar process in the future.
Nguyen Huynh Trang, deputy director of HCM City Department of Industry and Trade, said that harvested vegetables should be processed and packaged to the same standards as vegetables sold in supermarkets.
“Farmers and co-operatives need to be educated on this so that in the future, all agricultural produce is properly processed and packaged, with clear labels. HCM City wholesale markets should also only buy semi-processed goods,” she said.
This policy is part of the city’s plan to develop agricultural brands, provide more high quality products with clear origins, and promote trade between HCM City and other provinces.
Teleconference discusses national, ASEAN one-stop shop mechanism

The Finance Ministry held a teleconference in Hanoi on July 24 to discuss developing national and ASEAN one-stop shop mechanisms and trade facilitation.

Prime Minister Nguyen Xuan Phuc; Deputy Prime Minister Vuong Dinh Hue; as well as leaders of ministries, agencies, the Vietnam Chamber of Commerce and Industry (VCCI), and World Bank (WB) attended the event.

Speaking at the event, Finance Minister Dinh Tien Dung said as of July 15, 11 ministries and agencies connected and conducted 53 administrative procedures with over 1.34 million files by 11,812 businesses via the national one-stop shop mechanism.

All customs procedures have now connected with the mechanism, with 99.65 percent of firms joining.

By the end of 2018, an additional 143 procedures will be launched on the mechanism, raising the total to 196, or 78 percent of the total 251 procedures which will be launched between now and 2020.

Regarding the ASEAN one-stop shop mechanism, Dung said as of January 1, 2018, Vietnam officially exchanged form D certificates of origin (C/O) with Singapore, Malaysia, Indonesia, and Thailand. As of July 15, Vietnam received 32,949 certificates from the above countries while sending 14,214 ones to them.

Vietnam is working with Brunei, Cambodia and the Philippines to establish a system to pilot the exchange of form D C/O, and is partnering with Thailand, Indonesia and Malaysia to launch a pilot system to exchange ASEAN customs declarations. Apart from the ASEAN, Vietnam is also negotiating to complete protocols and build a system to share information with the Eurasian Economic Union about customs declarations and C/O.

VCCI Vice President Doan Duy Khuong said the business community wishes that the Government would further expand the scope of the national one-stop shop mechanism and make sweeping reforms on specialised inspection.

Representatives of international organisations and development partners such as the WB, the European Union, the US, Japan, and the Republic of Korea spoke highly of the Vietnamese government’s reform in the field, hoping that with the help of technical support projects, Vietnam will soon join the global supply chain.

A WB representative reported that the customs clearance for Vietnam’s exports at border gates was brought down from 58 hours to 55 hours last year, and from 62 hours to 56 hours for imports into Vietnam. The cost of customs clearance for a batch of goods at border gates was reduced by 19 USD.

With over 11 customs declarations last year, businesses saved upwards of 200 million USD and over 16 million hours of storage for exports and more than 34 million hours for imports.

According to the WB’s “Do Business” report for 2016-2017, Vietnam continued to be one of the four countries with the highest trans-border goods exchange in ASEAN.

Deputy Minister of Industry and Trade Nguyen Quoc Khanh suggested improving the technological capacity and agreeing on the principles for specialised inspection among ministries and agencies.

Director of the Central Institute for Economic Management Nguyen Dinh Cung called for reducing more goods subject to specialised inspection, saying that 4,000 kinds of goods exempt from specialised inspection in the next four years is a modest figure.

According to him, half of the goods are currently subject to overlapping inspections by two or three ministries, or two or three agencies under a ministry, which, he said, should be changed soon.

He requested that 350 legal documents should be revised soon, including circulars regarding unreasonable business costs.

There should be a further step toward standardising and digitalising procedures in order to complete the e-government portal by 2020, he said, adding that it will be a strong breakthrough for the economy. 
First Son La longan week underway in Hanoi

The northwestern mountainous province of Son La has been searching for a stable market for its fresh agricultural products during an event underway at Big C Thang Long supercenter in Hanoi until July 27, hoping to make longan its key farm produce.

The first “Son La Longan and Safe Farm Produce Week” was opened by the provincial People’s Committee on July 21.

The festival will display 20 kiosks featuring longan, as well as other fruits, vegetables, and processed food products of Son La. These include many VietGAP and GlobalGAP-certified products, namely the longan, mango, avocado, banana, luffa, red dragon fruit, cabbage, tomato, garlic, and green pea.

Organisers also set up a special stall to introduce some off-season vegetables from the province’s Van Ho district, including cabbage, wild bean, chayote, tomato, and gourd. These products were grown under a programme “Support Farmers in Van Ho district, Son La province”, funded by the Australian Centre for International Agricultural Research and the Central Group Vietnam which looks to foster the development of off-season vegetable farming and improve the livelihood for smallholders in the northwestern mountainous region.

Son La has maintained 15 safe longan farming areas, producing about 5,000 tonnes of longan certified by VietGAP annually. Of which, 1,500 tonnes are granted exportation codes to the United States, Australia, Japan, the Republic of Korea, and other ASEAN countries, said Vu Duc Thuan, Deputy Director of the provincial Department of Planning and Investment.

Last year, the province had nine products granted Trademark Registration Certificates, including Song Ma longan, Son La coffee, Phu Yen orange, Yen Chau mango, Moc Chau Snow Shan tea, Moc Chau safe vegetables, Moc Chau oolong tea, Ta Xua tea, and Son La honey.

In 2018, it plans to build trademarks for 12 more specialties like Mai Son sugar apple, Moc Chau avocado, Son Tra assam apple, Thuan Chau taro, Son La passion fruit, Son La plum, and Son La sturgeon.

“Son La hopes that, through the Big C outlets, the certified farm produce of the province in general and its brand products in particular will be widely known in the country and abroad. The increases in production and consumption will help improve incomes and livelihoods for ethnic minority people in the locality,” Thuan noted. 
VNN

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