BUSINESS IN BRIEF 29/6 SaigonBank, CEP sign financial service deal to benefit workers The Saigon Bank for Industry and Trade (SaigonBank) and Capital Aid for Employment of the Poor Microfinance Institution (CEP) on June 27 clinched a comprehensive cooperation agreement to provide financial services for workers. Vu Quang Lam, acting chairman of the Board of Directors at SaigonBank, said at the signing ceremony that the deal is aimed at making the provision of financial services for workers, who are also CEP’s clients, convenient and cost-effective. SaigonBank will implement a series of incentive policies for CEP’s customers, such as offering them bank cards with the lowest annual fees on the market, a CEP loan disbursement fee exemption, and a cash withdrawal fee exemption at its ATM machines. CEP general director Nguyen Thi Hoang Van said the partnership between SaigonBank and CEP would better serve CEP customers. CEP is a non-profit Vietnamese microfinance institution that is active in provinces in southeastern Vietnam and the Mekong Delta. The mission of CEP is to help improve the living conditions of the poor and the poorest through the efficient, effective and sustainable provision of microfinance services. Global protection sought for Vietnam’s rice trademark    As Vietnam’s rice trademark is undergoing procedures to seek international protection, the result of the logo design contest will not be announced until next month, an official of the Ministry of Agriculture and Rural Development said. Le Thanh Tung, head of the southern representative office of the ministry’s Department of Crop Production, told The Saigon Times that the contest winner has been chosen. According to Tung, to have the rice trademark protected, Vietnam has filed an application with the Madrid System, a system for the registration of trademarks worldwide governed by the Madrid Agreement and the Protocol relating to the agreement. A single application with the system enables a trademark owner to obtain protection in member countries. The ministry has formulated regulations concerning the use of the Vietnamese rice trademark, requiring individuals and organizations to meet particular requirements to use the trademark, Tung stated. In particular, as Decision 1499/QD-BNN-CBTTNS issued this year stipulates, individuals and organizations can use the registered trademark when granted business registration certificates or investment certificates that include rice production, processing and trading. Individuals and organizations must be certified to satisfy food-safety requirements for rice processing, preservation and trading, or they must obtain one of the following certificates: good manufacturing practice, hazard analysis and critical control points, food safety management system ISO 22000, international food standards, global standard for food safety, food safety system FSSC 22000 or equivalents that are still valid. They must have rice products certified to meet Vietnamese standards, fulfill tax obligations and work to protect the environment. Rice products that have been certified include white rice, jasmine white rice and glutinous white rice. Regarding product quality, rice bearing the Vietnamese rice trademark must comply with national quality standards, with white rice meeting TCVN 11888:2017 requirements, jasmine white rice meeting TCVN 11889:2017 requirements and glutinous white rice meeting TCVN 8368:2010 requirements. If there is a change to quality standards, rice products must meet the updated standards. Under Decision 1499 of the ministry, individuals and organizations can use the rice trademark and their own brands for packaging, advertising and trading certified rice products. They can also exploit, use and enjoy other economic benefits that arise, and participate in rice trademark promotion activities. However, individuals and organizations are obliged to use the trademark only on certified rice products, to ensure product quality, to inform the trademark management unit if they no longer need to use the trademark, and to pay any related fees. SaigonBank, CEP sign financial service deal to benefit workers The Saigon Bank for Industry and Trade (SaigonBank) and Capital Aid for Employment of the Poor Microfinance Institution (CEP) on June 27 clinched a comprehensive cooperation agreement to provide financial services for workers. Vu Quang Lam, acting chairman of the Board of Directors at SaigonBank, said at the signing ceremony that the deal is aimed at making the provision of financial services for workers, who are also CEP’s clients, convenient and cost-effective. SaigonBank will implement a series of incentive policies for CEP’s customers, such as offering them bank cards with the lowest annual fees on the market, a CEP loan disbursement fee exemption, and a cash withdrawal fee exemption at its ATM machines. CEP general director Nguyen Thi Hoang Van said the partnership between SaigonBank and CEP would better serve CEP customers. CEP is a non-profit Vietnamese microfinance institution that is active in provinces in southeastern Vietnam and the Mekong Delta. The mission of CEP is to help improve the living conditions of the poor and the poorest through the efficient, effective and sustainable provision of microfinance services. Food safety remains major concern at wholesale markets Controls for food safety and the traceability of products sold in wholesale markets is not tight enough, as market management boards have yet to fulfill their duties, heard a seminar on the development of wholesale markets in Vietnam, held in Hanoi on June 27. As of last year, Vietnam had only 83 wholesale markets, making up nearly 1% of the 8,500 traditional markets in the country. However, the trading practice has largely been limited to traditional methods, with traders paying little attention to quality control. Dao Ha Chung, chairman of the HCMC Hi-Tech Association, was cited by news website Vietnamplus as saying that the relevant agencies find it hard to manage goods traded in wholesale markets. He proposed enhancing controls over vehicles transporting goods to these markets to ensure food safety. In addition, wholesale markets should make prices transparent, regularly assess the quality of products, take steps to reduce waste and invest in traceability systems, he added. Ricardo Lopez Pietsch, a representative of Spain’s Mercasa Group, which manages 23 wholesale markets in Spain, shared his experience, noting that wholesale markets should help farmers understand consumers’ demands to produce standard goods. Markets in Spain also have warehouses, cold storage facilities and dedicated areas for support services. Inspectors are present at markets to make sure that products meet prevailing food safety requirements, Ricardo stated. Vu Duy Dong, director of the Domestic Market Department under the Ministry of Industry and Trade, emphasized the management of wholesale markets, adding that it is necessary to ensure food safety in wholesale markets and to provide traders with essential knowledge. Nguyen Van Hoi, deputy director of the department, noted capital as a major obstacle hindering the development of wholesale markets, claiming that investment in these markets is high, at VND40 billion each on average, while the State budget is limited, and it is hard to tap private resources. In addition, most foreign firms want to develop modern trade facilities in large cities rather than traditional markets. The lack of incentives to support investors and the small space for goods storage, parking lots and internal roads in wholesale markets have also hindered the development of these markets. Moreover, trade support services such as banking, insurance, product quality evaluation, classification, packaging, preservation, consulting, market information provision, advertising and accounting have not been provided at wholesale markets. Land ownership should be assigned to households, individuals: VFCEA Although the land law has undergone multiple revisions, it still contains inadequate regulations, so the Vietnam Federation of Civil Engineering Associations (VFCEA) has recommended handing over land ownership to households and individuals. Early this year, the Ministry of Justice was told to seek comments and amend inadequate, overlapping regulations concerning access to land by people and enterprises for their production and business investments. The Ministry of Justice and the Vietnam Chamber of Commerce and Industry on June 27 held a seminar on land access by people and enterprises to collect comments in preparation for amending the law, even though it was revised only five years ago. Tran Ngoc Hung, chairman of the VFCEA, proposed amending the law in a way that gives land ownership rights to households and individuals. This, Hung said, will directly affect millions of households and help avoid problems arising from land disputes, compensation and clearance. Lawyer Truong Thanh Duc noted that the problem lies in the ownership of assets. In reality, people can buy and transfer assets, which is a way of exercising their rights, but the transfer of land use rights, as it is currently worded in the law, does not make sense. Similarly, the mortgage of land use rights is by nature a land mortgage, and it is impossible to separate the two. According to Hung, if such points are not amended, inadequacies will remain. For instance, there is a regulation that allows the State to recall land in case of necessity for national defense, security and socioeconomic development purposes. However, the cases of necessity are not clear, especially when it comes to the construction of industrial parks, economic zones, export processing zones, new urban areas, offices of State agencies and relics. According to Hung, the construction of offices of State agencies, relics, scenic spots, squares and statues are not really necessary, and some interest groups tend to take advantage of gray areas to establish projects that benefit them, particularly urban area projects with land recalls. Startups should map out plans to go global: experts Domestic startups should promptly draw up detailed action plans to expand to international markets, consulting experts advised at a forum titled, “Connecting Vietnamese startups at home and abroad,” in HCMC. During the project presentation of startups within the framework of the forum held on June 27, experts said Vietnamese startups should make careful preparations to seek capital and attract investors. Local startups are currently mainly developing products and seeking local customers. Meanwhile, the connection of startups with finance and intellectual property experts across the world remains modest. Only startups that have received foreign investments have opportunities to access finance and corporate administration consulting experts and companies. Startups should prepare information on their rivals, the market scale and their objectives before calling for investments. Shlomo Nimrodi, CEO of the Ramot Business Engagement Center at Tel Aviv University in Israel, commented on the Ekid Studio project, which was presented at the forum, noting that the project developer should focus on its specific tasks, such as teaching language by applying technology. However, Patrick Nguyen, founder of Ekid Studio, explained that his company does not operate as a language teaching facility. Instead, it will specialize in augmented reality in the education sector. In reality, some startups have high-quality products and services that meet the demands of customers in some cities such as HCMC and Hanoi. However, they have encountered multiple obstacles in expanding to other markets. At the forum, Thach Le Anh, cofounder of Vietnam Silicon Valley Accelerator, agreed that some startups cannot seek capital despite the good quality of their products, while the number of venture funds in Vietnam is modest. In 2016, investment in domestic startups totaled US$100 million, well below the US$1.5 billion poured into startups in other Southeast Asian countries. Vietnam’s tourism brought closer to Czech people Vietnam’s popular tourist attractions and unique traditional arts were spotlighted at a tourism promotion programme held in Prague, the Czech Republic on June 27. The event was organised by the Vietnam National Administration of Tourism (VNAT) in collaboration with the Vietnamese Embassy in the Czech Republic, the national flag carrier Vietnam Airlines, and Vietnamese travel firms in the host nation. This is the final stop of the Vietnam Tourism Roadshow Europe 2018 which has travelled through Sweden, Austria and Hungary. Highlighting the traditional friendship between Vietnam and the central European country, VNAT General Director Nguyen Khac Tuan stressed that both sides pose huge potential for tourism cooperation. Vietnam welcomed only 1 million foreign visitors in 1995 but the figure is forecast at 16 million this year, including 2 million European holiday-makers, Tuan said, adding that however, only 17,000 of them come from the Czech Republic. This is a modest figure when Vietnam’s tourism has many things appealing to Czech visitors like beautiful beaches along its 3,000km of coastline, a stunning Ha Long Bay, gigantic Phong Nha-Ke Bang Cave, and unique orchard gardens in the south, he noted. On the sidelines of the event there were meetings between Vietnamese and Czech tourism agencies, which served as a bridge for them to seek cooperative opportunities. VNAT General Director Tuan and deputy chairman of the Association of Czech Travel Agents Jan Papez told Vietnam News Agency’s reporters that Vietnamese and Czech tourism products all satisfy demands of tourists from both countries. However, they said that visa procedures, the absence of direct flights between Hanoi or Ho Chi Minh City and Prague as well as weak promotion campaigns are the main barriers for bilateral cooperation. Manufacturing firms perform better in Q2 Up to 82.6 percent of the processing and manufacturing enterprises said they enjoyed a more stable and better business operation in the second quarter of the year, according to the General Statistics Office of Vietnam. The foreign direct investment firms have the highest business confidence with 85.7 percent believing that their business improved and stabilised during April-June. Meanwhile, the percentage for state-owned and private companies was 80.8 percent and 81.6 percent, respectively. In stark contrast, 17.4 percent of the firms said that they had to struggle more than the previous quarter. Competitiveness was touted as the dominant factor that left enormous impacts on production and business activities. According to the statistics office, 59.4 percent of the firms said that they were affected by competitive edge while 46.2 percent believed that underperformed business was spurred by low demands in the domestic market.  Financial issue, shortage of qualified labourers, high deposit rate, lack of materials, and out-of-date technology and equipment were the other factors challenging local businesses in the period. Regarding volume of orders, 82.8 percent of the firms reckoned that the number would be higher than the previous quarter while 17.2 percent said that they would face less orders than the previous quarter. Up to 84.8 percent of the enterprises affirmed that they had more orders from overseas market. Product inventory was reported to decrease or remain stable among 81.7 percent of the domestic companies. However, the statistics department said that businesses have more positive outlook for their business prospects in Quarter 3 with 88.5 percent of the firms upbeat about their performance.  The statistics were compiled based on the latest survey on the quarterly business performance trend of 6,500 industrial processing and manufacturing companies in 63 provinces and State-run cities.  Programme promotes Vietnamese localities in France The Vietnam Provincial Roadshow in France took place in Paris from June 25-27, as part of activities to mark the 45th anniversary of bilateral diplomatic ties and five years of the Vietnam-France strategic partnership. The event, jointly held by Vietnam’s Ministry of Foreign Affairs, Embassy in France and the Permanent Delegation of Vietnam to UNESCO, attracted the participation of officials of Hanoi, the Mekong Delta city of Can Tho, and central Phu Yen and Quang Ngai provinces, ministries, sectors and businesses of involved localities. Vietnamese Ambassador to France and Head of the Vietnam Permanent Delegation to UNESCO Ambassador Tran Thi Hoang Mai also joined activities of the Vietnamese delegation. Within the framework of the programme, the delegation held working session with Deputy Chief Executive Officer of the French Development Agency (AFD) Philippe Bauduin, President of the Regional Council of Ile-de-France Valérie Pécresse, and Director General of the union of French cities (Cites Unies France – CUF) Geneviève Sevrin. They attended a workshop on intensifying Vietnamese-French locality partnership, and another on regional planning and construction experience of Paris capital, met with representatives from French localities such as Ile-de-France, Bordeaux, Val-de-Marne, Poitiers and Cergy-Pontoise and major businesses including Vinci, Dassault Systemes, Pollutec, Seche Environnement, and JCDecaux, and visited several health clinics and waste treatment facilities in Paris. During these events, both sides spoke highly of positive development in the bilateral strategic partnership, in which cooperation at the local level and people-to-people exchange are an important cooperation pillar that need to be enhanced. At present, 38 French localities have set up cooperative ties with 18 Vietnamese provinces and cities. The two sides agreed to coordinate in organising the 11th Vietnamese-French locality cooperation conference in France’s Toulouse city in April 2019, maintain successful cooperative models such as Hanoi – Ile-de-France, Hanoi – Toulouse, Hai Phong – Brest, Lao Cai – Aquitaine, Hue – Aquitaine, Yen Bai – Val de Marne, Can Tho – La Seyne-sur-Mer, and encourage the establishment of new pairs of localities.  Along with such traditional cooperative fields as health, education, water-environment, heritage preservation and sustainable rural development, it is necessary to expand collaboration to new areas like smart city building and digital economy, they said. The French side committed to maintaining ODA provision for Vietnam, while appreciating the role of Vietnamese localities in successfully carrying out France’s ODA projects in Vietnam. On this occasion, Chairman of the Hanoi People’s Committee Nguyen Duc Chung and President of the Regional Council of Ile-de-France Valérie Pécresse signed an action programme of the two localities for 2018-2021. The Vietnam Provincial Roadshow is an effort by the Foreign Ministry to coordinate with Vietnam’s representative offices abroad in helping Vietnamese localities tighten their cooperation with foreign partners. Dong Nai enjoys over-1-billion USD trade surplus in H1 The southern province of Dong Nai enjoyed a trade surplus of over 1 billion USD in the first six months of 2018. According to the provincial People’s Committee, the total export turnover of businesses in the locality exceeded 9 billion USD in the reviewed period, while the import value was 7.95 billion USD, year-on-year rises of 12.6 percent and 7.12 percent, respectively. The province’s main exports recorded significant growth, including footwear (7.19 percent), garment and textiles (4.49 percent), textile fibre (17.7 percent), machinery and components (15.05 percent), iron and steel products (21.6 percent), and computer, electronic products and spare parts (37.8 percent). The committee said that the growth was attributed to stable world economy, favourable export markets, more orders from abroad, and increases in export prices of several commodities. Dong Nai’s main export markets were the US, the European Union, the Republic of Korea, China and Japan. Meanwhile, businesses in the province mainly imported products from China, the Republic of Korea, and Taiwan (China), which accounted for 50 percent of its import turnover. The locality mainly imported fabric, fibre, footwear materials, chemicals, iron and steel. To achieve the target of 18.3 billion USD in export turnover this year, the province will intensify assistance for businesses, especially small- and medium-sized enterprises and startups, and build a mechanism to encourage businesses to invest in rural agriculture. More efforts will be taken to improve the investment environment, speed up administrative reform, and create favourable conditions to promote products and trademark and raise export value, particularly for agricultural products. SaigonBank, CEP sign financial service deal to benefit workers The Saigon Bank for Industry and Trade (SaigonBank) and Capital Aid for Employment of the Poor Microfinance Institution (CEP) on June 27 clinched a comprehensive cooperation agreement to provide financial services for workers. Vu Quang Lam, acting chairman of the Board of Directors at SaigonBank, said at the signing ceremony that the deal is aimed at making the provision of financial services for workers, who are also CEP’s clients, convenient and cost-effective. SaigonBank will implement a series of incentive policies for CEP’s customers, such as offering them bank cards with the lowest annual fees on the market, a CEP loan disbursement fee exemption, and a cash withdrawal fee exemption at its ATM machines. CEP general director Nguyen Thi Hoang Van said the partnership between SaigonBank and CEP would better serve CEP customers. CEP is a non-profit Vietnamese microfinance institution that is active in provinces in southeastern Vietnam and the Mekong Delta. The mission of CEP is to help improve the living conditions of the poor and the poorest through the efficient, effective and sustainable provision of microfinance services. RMIT co-hosts conference on Connectivity in Asia RMIT University Vietnam, in collaboration with Zhejiang University in China and Inha University in South Korea, co-hosted the “Connectivity in Asia: Trade, Transport, Logistics and Business” conference on June 25 and 26 at the university’s Saigon South campus. The conference was attended by more than 100 keynote speakers, presenters, and delegates from countries including Indonesia, China, the Philippines, South Korea, Thailand, Taiwan, Japan, Malaysia, Singapore, Sri Lanka, Austria, and Australia. RMIT Vietnam President Professor Gael McDonald said RMIT Vietnam was extremely happy to host the event. “The forum was organized to explicitly explore the views of industry experts, policymakers, and academics on the issues surrounding the region’s logistical challenges,” Professor McDonald said. The conference covered topics that play a vital role in Vietnam’s economy, as the country’s growth is fuelled by greater regional and international integration and collaboration, Professor McDonald added. “According to a World Bank estimate, Vietnam’s logistics costs currently account for 20.9 per cent of GDP, compared to China’s 19 per cent, Thailand’s 18 per cent, Japan’s 11 per cent, and the EU’s 10 per cent.” “At a recent national logistics forum, Prime Minister Nguyen Xuan Phuc stated that high logistics costs were one of the hurdles obstructing the national economy’s competitiveness in a highly-connected and integrated trade environment. He emphasized that efforts to lower logistics costs need attention, particularly as Vietnam increases its participation in major free trade agreements.” Professor McDonald stressed that cutting logistics costs to 16-20 per cent of GDP by 2025 while raising its GDP contribution to 8-10 per cent requires additional effort to reform and simplify administrative procedures to improve the business climate. “There were 63 papers presented by contributors from at least 13 different countries, as well as many other participants,” she said of the conference. “Together they explore the current challenges in logistics and hopefully provide a more enlightened road ahead.” Startup forum connects domestic and international businesses More than 400 local and international delegates took part in the Forum ‘Connecting Vietnamese Startups at Home and Abroad’ on June 26, co-held by the Ministry of Foreign Affairs and the Ho Chi Minh City (HCMC) People’s Committee. According to Doctor Nguyen Ky Phung, Deputy Director of the HCMC Department of Science and Technology, within two years from 2016, the city spent around $90 million for startup activities, including over $45 million for technology development.| At the moment, HCMC has more than 350,000 enterprises, averagely contributing 22 percent to the gross domestic products (GDP), one-third of the industrial output, one-third of the total income of the national budget, and one-fourth of the total national exports. Regarding the gross regional domestic products (GRDP), the service, industry & construction, and agriculture sectors account for 58.26 percent, 24.78 percent, and 0.81 percent, respectively. As to the scientific and technological potential, HCMC now owns a high-tech park, a high-tech agricultural area, the Quang Trung Software City, the Biotechnology Center, the Institute for Computational Science & Technology, 45 universities, 30 colleges, over 125 laboratories, and 270 scientific and technological organizations. Compared to the whole nation, the scientific and technological resources of HCMC make up 25 percent, the existing businesses, startups, and scientific & technological enterprises account for 50 percent, 42 percent, and 15 percent respectively. There are over 760 private groups / startup organizations in various fields, making up more than 42 percent of the total number of national startups, 46 percent of which are now taking part in supportive programs in the city. 222 startups (accounting for 63 percent) have been in the incubation stage at 10 state incubator centers since 2011, while 49 percent of startups have successfully found their financial sponsor, and 70 percent are entering the first stage of the seed-funding, series A. According to politburo member and Secretary of the municipal Party Committee Nguyen Thien Nhan, although HCMC has a number of advantages, ranging from natural conditions to human resources, its weakness lies in the administrative role of the government, the implementation of science and technology into real life, and the connection between businesses and scientists, all of which have existed for 40 years. He therefore, put forward two suggestions. Firstly, the development of the scientific and technological market should be enhanced, creating a healthy habit of businesses seeking scientists’ help and strengthening their relationship to exist in harmony. Another recommendation is that from the beginning, enterprises should strive to embed technology into their business operations. Meanwhile, technology people should learn about economic aspect to know how to identify the needs of the market and seek financial investment effectively. This would form an advantage for the development of any enterprise. Mr. Nhan shared his concerns over essential actions to help innovative startups, saying that startup activities or ideas do not necessarily belong to the wealthy ones only. Many Asian countries having a similar status like Vietnam, yet they are able to achieve impressive success thanks to their full preparation on technology and an effective financial connection. “There are many state programs for this”, he told the forum, “but only when scientists and entrepreneurs themselves consider such programs as their own to try their best can they enjoy success.” Mr. Nhan also expressed his wish to have more forums like this in the future so that new Vietnamese startup people have an opportunity to contact with successful ones. The forum also welcomed Permanent Vice Chairman of the HCMC People’s Committee Le Thanh Liem, many domestic and abroad speakers as well as businesses, and leaders of related ministries and departments in the country. Vinh Hoan's sales of value-added products to hit $20 bn by 2020 The Vinh Hoan Corporation has announced that an increase in sales of value-added products will contribute positively to its profit margin improvement strategy in the medium and long terms. In its annual report for 2017, Vietnam’s largest pangasius exporter announced that the total export value of value-added products reached nearly $8 million, increasing 2.4-fold against 2016, and that its share in total export value also rose to 3.5 per cent. In its development orientation, sales of value-added products are expected to stand at $20 billion by 2020, contributing around 10 per cent of total revenue. 2018 is expected to be another challenging year in terms of raw material supply due to a shortage of fingerlings and the impact of high demand in China. In order to protect its profit target, Vinh Hoan is implementing a sales strategy with a pricing level that is sufficient to offset any increase in raw material costs. The company expects positive results this year from its collagen and gelatin business after three years of market development. Vinh Hoan began producing and selling its collagen and gelatin lines in 2015, made using high-technology and maximizing the value of pangasius skin. Its Board of Directors (BoD) have evaluated the project as a success thanks to high technology, a good business model, and the efforts put into researching production and market development over the last two years. With 2017 revenue at VND157 billion ($6.8 million) and Vinh Hoan collagen making a profit in late 2017, the BoD believes the product line’s revenue will be no less than VND40 billion ($1.74 million) in 2018 and will grow faster in subsequent years. The company also aims to continue expanding its farming and production capacity, ensuring a high quality supply of raw materials, competitive production costs, and premium pangasius products that meet the standards of international certification bodies and the ever-increasing requirements of export markets. Vinh Hoan is now focusing on the construction of new farms and the expansion of processing capacity at its Thanh Binh factory. In early 2017, the company acquired a 100 per cent stake in the Thanh Binh Dong Thap Seafood JSC and began operations at the new catfish fillet processing factory, with capacity of 100 tons of raw materials each day. This was a strategic move to ramp up production capacity. The investment plan to increase capacity at the Thanh Binh factory to 150 tons of raw materials a day is expected to cost approximately VND100 billion ($4.37 million). A 220-ha farm in the Mekong Delta’s Long An province was opened in April and includes a hatchery that will provide sufficient fingerlings for fish farms. This, together with the application of innovations to processes and machinery, are expected to increase Vinh Hoan’s self-supply ratio by a further 40 per cent. Total investment for the farm is planned at VND220 billion ($9.6 million). There are also other small investments, including upgrading the collagen workshop, costing VND20 billion ($874,475), and upgrading and purchasing machinery and equipment for Vinh Hoan’s fish processing workshop, costing VND35 billion ($1.5 million). Its anti-dumping tax rate of 0 per cent in the US was maintained during the 12th and 13th administrative reviews. Along with the development of new markets, the company continued to use its existing competitive edge in the US, contributing to higher revenue and profit margins. Despite the scarcity of raw materials, the company managed to open two new markets - Nicaragua and the Czech Republic - contributing to a network of more than 350 customers in nearly 40 countries. Growth in market share has also been seen in strategic markets outside of the US, including 70 per cent in China, accounting for 10 per cent of total exports, while in Japan it has almost doubled and accounts for 2 per cent. Vietnamese solar project wins international award SolarBK's Solar Experience Space project picks up award in Intersolar 2018's "Outstanding Project Award" category. The IREX Energy JSC, a member of Vietnam’s SolarBK Holdings, last week attended Intersolar 2018, an international renewable energy exhibition. This is the fourth time IREX has presented “Made in Vietnam” renewable energy to the world as a “Tier 0” manufacturer. SolarBK’s Solar Experience Space (SES) project won an international award in Intersolar 2018’s “Outstanding Project Award” category. Intersolar is one of the leading events promoting renewable energy and is held annually, with the presence of many prestigious companies from around the world. Intersolar 2018 had more than 900 world renewable energy suppliers, with over 1200 participants from 150 countries around the world. The exhibition took place in Munich, Germany. Prior to that, IREX participated in the largest SPI (Solar Power International) exhibition in 2017 along with Intersolar for three years (2014, 2015 and 2016). It is the first Vietnamese renewable energy enterprise to reach the global market. At the exhibition, IREX took “Made in Vietnam” solar cells and PV panels with the spirit of “Tier 0”. Intersolar 2018 is also an important milestone for IREX on its journey to its Tier 1 target in 2020. Tier, a well-known ranking scale for trustworthy solar panel manufacturers, is issued and rated by Bloomberg New Energy Finance (BNEF) with three levels: Tier 1, 2, and 3. Tier 1 module manufacturers are those that have provided their own brand and own manufactured products to six different projects financed non-recourse by six different non-development banks in the past two years. These 1.5 MW+ deals must be tracked by a database, and the project location (sufficient to identify the project uniquely), capacity, developer, bank and module maker must be in the public domain. Based upon this criterion, only 2 per cent of renewable energy firms have achieved Tier 1, yet those have had such enormous impact on almost the entire market. Up until the third quarter 2017, only 33 firms were rated Tier 1 by BNEF. Unlike many firms in the world, IREX attends Intersolar 2018 as “Tier 0” - its own principle and one that has greatly contributed to helping IREX increase its sales to reputable partners. Many customers misunderstand Tier 1 as a product quality warranty, while it only rates commercial aspects. In fact, quality is measured by international certifications such as TUV and UL, which BNEF itself clearly indicates in reports relating to the issue. The principle of “Tier 0” is based on trust between people with the same mission and development goals. IREX is committed to meeting the product and service quality required by partners at a more competitive price than Tier 1 enterprises. In return, they have put their trust into IREX in the renewable energy community and expanded the circle of cooperation as much as possible. IREX has taken this principle seriously at Intersolar and gained credibility from international partners. TBS opens sole technology center and R&D center Shoe sole manufacturer expands production site in Binh Duong province in bid to tackle low localization rate in domestic footwear industry. The TBS Group officially opened the TBS Sole Technology Center and the R&D Center for Sole Manufacturing on May 11 at the Song Than 3 Industrial Zone in southern Binh Duong province. The two centers will focus on researching, developing, and supplying soles for TBS’s shoe manufacturing as well as researching and supplying compound materials for the sole manufacturing industry in general, from combining many raw materials to manufacturing semi-finished products used for compressed soles or EVA phylon. There is potential in Vietnam’s sole manufacturing industry, though most is currently produced by foreign enterprises. Despite Vietnam being in the Top 3 biggest manufacturers of footwear and second in terms of exports, value added remains modest as the localization rate for raw materials and auxiliary materials is only some 50 per cent. Many materials require high technology, including soles, which remains an issue, according to the Ministry of Industry and Trade. With an attitude that “If the world can do it, we can certainly do it,” Mr. Nguyen Duc Thuan, Chairman of the TBS Group, has set a target of mastering technology in the fashion industry. Focusing on the development of shoe sole technology is therefore a great strategy for TBS to fully master technology in the footwear industry. According to figures from the Vietnam Leather and Footwear Association, a pair of soles represents 15-25 per cent of the value of sports shoes, depending on the type of technology used, confirming just how important technology is in creating added value. With a sole factory built in 2002, TBS has mastered the technology of producing rubber soles and EVA phylon. With the addition of the two new centers, TBS will focus on the research, development and supply of a new line of sports shoes with IP Technology (Injection Phylon - technology injecting materials directly into the mold) and new compound materials for soles, to meet demand and stay abreast of development trends in the domestic and foreign footwear industries, especially in regard to soles for sports shoes. On a total area of 113,890 sq m and with advanced equipment and technology, the TBS Sole Technology Center is capable of supplying 32 million pairs of finished products, including EVA phylon, liner, cup insoles, and IP products, and about 20 million products from other materials, including compounds, which will contribute some 20 per cent of the TBS Group’s sales. In order to meet goals, being equipped with advanced technology and equipment is not enough. Over a period of many years, the TBS Group has built up a team of technicians who are knowledgeable about sole production technology but who are nonetheless few in number compared to the huge demand for the production of about 700 million pairs of sport shoes each year in Vietnam. This is a very specific industry where most foreign-owned factories, including joint ventures, do not intend to transfer technology to local factories. The team of technicians is sent by the TBS Group to provide training and attend many international programs on shoe sole technology. Though open since 2002, the first TBS sole factory in 2002 is still relatively young compared to major large corporations such as Pou Chen and Taekwang, Hwasueng, and Feng Hand, which have been in the business for more than 50 years. There are many immediate and long-term challenges, including rapid changes in technology that shorten product lifecycles, the expectation that the rapid development of Industry 4.0 technology will lower production costs and therefore retail prices, the increasing demand from import markets that may be difficult to meet, and, especially, environmental protection standards, which will easily impact on any company investing in technology without a long-term vision. AgroViet 2018 exhibition opens in Da Nang The 18th Vietnam International Agriculture Trade Fair (AgroViet 2018) opened in the central city of Da Nang on June 28. Organised by the Ministry of Agriculture and Rural Development, the AgroViet 2018 is themed “High-tech farm produces towards sustainable agricultural development”. The four-day event features nearly 200 booths, the fair will showcase equipment and machines in agricultural production and processing, veterinary medicine, pesticide, safe agricultural and aquatic products, as well as animal and plant varieties. It offers chances to boost international cooperation in agriculture, while connecting businesses and consumers, thus creating opportunities for enterprises to promote domestic market. The event also honour high quality agro-forestry-fishery and handicraft products, and introduce new technologies in agricultural production. The annual event, one of the biggest agriculture fair of Vietnam, draws 18 agricultural firms from Thailand. Speaking at the opening ceremony of AgroViet 2018, deputy head of the Agro Processing and Market Development Authority Vu Van Minh noted that Vietnam’s agro-forestry-fishery exports earned 15.6 billion USD in the first five months of 2018, up 9.9 percent from the same period in 2017. Ten Vietnamese agro-forestry-fishery products for export records values exceeding 1 billion USD, he said. VNN