BUSINESS NEWS IN BRIEF 20/8
Deutsche
Bank appoints new chief country officer for Vietnam
Deutsche Bank has just announced the appointment of
Hans-Dieter Holtzmann (49) as chief country officer and head of Global
Transaction Banking (GTB) in Vietnam, effective from August 16, 2018.
In his capacity as chief country officer, Holtzmann
will report to Werner Steinmueller, member of the Management Board and APAC
Head of Deutsche Bank, and in his GTB capacity, to Kaushik Shaparia, head of
Global Subsidiary Coverage, GTB Foreign Exchange and Corporate Cash
Management for Asia.
Announcing the appointment, Steinmueller said, “We are
pleased to have a colleague of Hans-Dieter’s caliber in this role.
As one of our key markets in Southeast Asia, our
Vietnamese franchise has shown profitable growth and we are excited about the
country’s outlook. This is why last year we significantly increased our
capital base in this market, providing the bank with more resources to
support our clients’ activities.”
Kaushik Shaparia, added that “With his extensive client
management experience, Hans-Dieter is well positioned to lead and grow our
GTB business in Vietnam, where we are a key player in cash management, trade
finance, and securities services, servicing both global and local clients.”
In Vietnam, Deutsche Bank is among the largest market
access providers to global institutional and retail investors, a leading
M&A and ECM advisor, as well as one of the top five USD/EUR FX trading
houses by volume.
Deutsche Bank is present in Vietnam since 1992 and
employs a staff of approximately 70. In April 2018, Deutsche Bank moved its
office into the new Deutsches Haus in Ho Chi Minh City, a hub for German
businesses in the country.
Holtzmann has been with the bank for more than 20 years.
He has worked in various senior capacities across global offices with
Corporate & Investment Banking, Regional Management, and Government and
Regulatory Affairs, most recently as Head of Public Sector for Germany where
he was responsible for covering clients at the federal, state, and
municipality level.
He has also worked as economic advisor to former German
Chancellor Helmut Kohl on a secondment to the German Federal Chancellery.
He holds a Ph.D. in economics from the University of
Erlangen-Nuremberg and a Master of Liberal Arts from Wayne State University
in Detroit, Michigan.
Imports of animal feed continue
upward trend
Imports of animal feed and raw materials for animal
feed production hit US$232 million in July, down 37.58% compared to the
previous month but up 7.11% against the same period last year, according to
the General Department of Vietnam Customs.
Among major suppliers of animal feed and raw materials
for Vietnam in July, Argentina ranked first with US$53 million, down 27.24%
against the previous month and 55.76% over the same period last year, trailed
by the US with more than US$48 million and China with more than US$22
million.
Overall, Vietnam spent more than US$2.2 billion
importing animal feed and raw materials in 7 months, a year-on-year rise of
11.11%. Export markets seeing strong growth included Brazil (up 301.31% to
US$294 million), Belgium (up 155.95% to US$20 million), the US (up 111.15% to
more than US$369 million) and Chile (up 79.87% to nearly US$10 million).
Cement exports record strong growth
Cement exports in the first seven months of the year
registered impressive growth, with 17.65 million tonnes sold for 656.3
million USD, year-on-year increases of 63.2 percent in volume and 73.4
percent in value.
According to the General Department of Customs, export
prices of cement and clinker grew 6.3 percent to reach an average 37.2 USD
per tonne.
Bangladesh was the largest consumer of Vietnamese
cement and clinker, spending 152.8 million USD on 4.75 million tonnes of the
building materials, accounting for 23.3 percent and 26.9 percent in Vietnam’s
total cement export quantity and value, respectively.
Notably, export revenue earned from China was 90 times
higher than that gained in the same period last year, with 158.35 million
USD. The market consumed 4.52 million tonnes of Vietnamese cement and
clinker, an 80-fold increase, becoming the second largest purchaser of the
goods.
The Philippines was the third biggest Vietnamese cement
buyer at 3.49 million tonnes.
Meanwhile, strong growth in cement exports was seen in
Malaysia (87.9 percent), Peru (74.7 percent) and China’s Taiwan (11.9
percent).
Vietnam Airlines ties up with
Sacombank, Napas for discount
Sacombank, the National Payment Corporation of Viet Nam
(Napas) and Vietnam Airlines have announced a promotion programme for
Sacombank Plus debit card holders buying tickets on the airline.
People buying tickets on www.vietnamairlines.com on
Tuesdays, Wednesdays and Thursdays from August 15 to September 13 will get a
15 per cent discount on all domestic routes and flights to Southeast Asia,
Northeast Asia, Europe, and Australia.
“Taking off easy with Napas and Vietnam Airlines”
offers an additional refund of 5 per cent of the ticket value up to a the
maximum of VND200,000.
Plus debit cards are connected to customers’ current
accounts at Sacombank.
More information about the programme is available at
khuyenmai.sacombank.com and the bank’s hotline.
Overnight interest rate doubles to
4.42%
Interest rates on the inter-bank market have surged
strongly in the past week despite the central bank’s net injection of VND14.4
trillion (US$612.76 million).
According to a report from the Saigon Securities
Incorporation (SSI), the rate of overnight loans last week doubled from the
previous week to reach 4.42 per cent, nearly equal to the 4.75 per cent rate
in the open market operation (OMO). The rise has also contributed to reducing
the interest rate gap between overnight and three-month loans to only 27
basis points.
Interest rates for one-week and two-week loans also
surged 1.9 and 1.7 times against the previous week.
SSI analysts attributed the interest rate hike to a net
withdrawal of VND60 trillion for the week ending August 3, which has reduced
the liquidity in the banking system.
SSI’s report also showed that the yield of the central
bank’s five-year bills has kept steady at 4.3 per cent in the past week.
During the week, the transaction volume of the bills
increased by 27 per cent against the previous week. Foreign investors net
bought VND113 billion after they net sold in the last five weeks.
India investigates countervailing
duties on VN’s steel
The Directorate General of Anti-Dumping and Allied
Duties (DGAD) under India’s Ministry of Commerce and Industry has recently
announced the initiation of an investigation into countervailing duties on
certain types of steel imported from Viet Nam and China.
The investigation is based on petitions filed by
Stainless Steel Pipe and Tubes Manufacturer Associations of New Delhi,
Ahmedabad, South India and Haryana. The applicants alleged that the exporters
have benefited from the actionable subsidies provided by various levels of
the Governments of Viet Nam and China, including the governments of the
provinces and municipalities in which the exporters are located.
The product under investigation is “welded stainless
steel pipes and tubes”. The period of investigation is from April 2017 to
March 2018. The injury investigation period shall cover the period from 2014
to 2017 and the period of investigation.
DGAD will not proceed to sampling for Viet Nam but will
for China due to the large number of Chinese enterprises involved in this
case.
Therefore, Viet Nam exporters will be individually
investigated and receive their own tax rates based on the information they
provide.
Relevant units (including the Government of the
investigated countries, exporters, importers and consumers of goods subject
to investigation) may submit information, comments, and documents to Indian
investigators.
All written information relating to the present
investigation should be sent to the Indian Directorate General of Trade
Remedies within 40 days from the date of publication of the initiation
notice.
If no information is received within the prescribed
time limit or the submitted information is incomplete, the authority may
record its findings on the basis of the facts available on record in
accordance with the rules.
The Trade Remedies Authority of Viet Nam, under the
Ministry of Industry and Trade, recommend the Vietnamese exporters cooperate
and provide full and proper information to Indian authorities throughout the
entire investigation. Exporters should closely coordinate with Viet Nam Trade
Remedies Authority to effectively defend the case, they added.
Farm deal signals co-operation among
VN firms
The latest co-operative agreement between farming and
agricultural firm Hoang Anh Gia Lai (HAGL) and Truong Hai Auto Corporation
(Thaco) has suggested that Vietnamese firms are willing to work together to
improve their competitiveness as pressure from foreign businesses mounts.
The deal, signed on August 8, allows Thaco to buy
convertible bonds worth VND3.8 trillion (US$163.1 million) issued by HAGL’s
sub-unit HAGL Agrico, purchase VND4 trillion worth of 51 per cent ownership
of HAGL Myanmar Co Ltd, and help HAGL restructure its VND14 trillion worth of
debts.
According to HAGL chairman Doan Nguyen Duc, Thaco’s
total investment in HAGL’s sub-units and Myanmar projects is estimated at
more than VND22 trillion.
The deal aims to assist HAGL resolve its problems with
rubber farms in Viet Nam, Laos and Cambodia, which have made the group unable
to re-pay loans due to the sharp decline of rubber price.
The cost has fallen to around $1,300 per tonne compared
to $5,000 per tonne when its farms were first developed.
Total loans of HAGL are estimated at VND23 trillion,
leading to high annual interest rate for the company.
Despite efforts to switch its business focus to fruit
and other products, the company has still encountered troubles, seeing its
shares fall sharply from around VND40,000 per share in February 2011 to
VND7,000 per share at the close of August 15.
Prime Minister Nguyen Xuan Phuc said at the signing
ceremony of the HAGL-Thaco agreement that the deal is a good way to help
large-cap companies boost their performances together, and make great
contributions to the development of a high-tech agriculture sector.
“The deal also motivates Vietnamese companies to
achieve a win-win situation, in which there will be not only big farms but
also smart production, automated production chain and higher productivity,”
the PM said.
Prior to HAGL-Thaco deal, the largest dairy producer
Vietnam Dairy Products Joint Stock Company (Vinamilk) and the national flag
carrier Vietnam Airlines on August 6 signed a five-year strategic deal that
allows Vinamilk-made products to be consumed on Vietnam Airlines’ flights
departing from Viet Nam.
The deal is expected to raise Vinamilk’s output
consumption on flights by 10 per cent per year and help promote the best
Vietnamese brands to the world.
According to Vietnam Airlines general director Duong
Tri Thanh, the deal will help improve the supply chain that connects
Vietnamese brands to international markets.
Experts say those deals between domestic giant
businesses must be spread wide among the business community to push them to
co-operate given the rising pressure of foreign firms.
There should be new forms to connect local companies
with each other to form allies such as co-operative, franchising and
associating firms, they say.
According to Zulkifli Bin Baharudin, executive chairman
of the logistics and supply chain company Indo-Trans Corporation, Vietnamese
firms will remain weak if they try to go their own way to conquer other
markets.
Therefore, Vietnamese firms should group together to be
stronger and faster in order to participate in the global supply chain, he
said.
HCM City seeks to expand orchid
market
HCM City is working with several provinces to set up
orchid supply chains and mitigate shortages there, especially during holidays
when supply dwindles and prices shoot up.
According to the municipal Department of Agriculture
and Rural Development, orchid was grown in the city on around 360 hectares,
mostly in Hoc Mon, Cu Chi and Binh Chanh districts, and around VND615 billion
worth of orchid plants and branches were supplied, with a focus on varieties
such as mokara and dendrobium.
Dang Le Thi Thanh Huyen, director of Huyen Thoai Orchid
Co-operative, said because of its favourable climate and application of
modern technologies HCM City has better orchid output and quality than other
places.
According to Vuon Mo Co Ltd, shops in many provinces
sell orchid stems of poor quality as they have to rely on middlemen since
they cannot regularly travel the long distance to HCM City.
Tran Truong Son of the HCM City Farmers Association
said orchid farmers in the city face a similar problem and also have to rely
on traders.
Tran Tan Quy, deputy director of the department, said
it had been working with Can Tho City and south-western provinces to expand
the orchid market and organising conferences and networking events to link
farmers and co-operatives with distributors to form long-term partnerships.
The city also consulted farmers, distributors and other
relevant parties to draft favourable policies.
The department is planning to organise a flower
festival to promote orchids, which Le Thanh Lien, deputy chairman of the city
People’s Committee, said would help the city’s plan to shift from rice to
more profitable crops.
Son said small farmers should work together to ensure
stable supply and prices, and relevant departments should organise networking
events to help farmers find more partners.
Pham Thiet Hoa, director of the Investment and Trade
Promotion Centre, said the centre had helped connect more than 60 businesses
with farmers and co-operatives and held annual exhibitions to connect farmers
directly with customers so that they did not have to rely on intermediaries.
Farmers had also improved their techniques and orchid
quality over the years, he said.
The city plans to have around 600 hectares under
orchids by 2030.
Regional countries discuss digital
technology
The growth of digital technology for inclusive and
sustainable economic development is a top priority for Cambodia, Laos,
Myanmar, Thailand and Việt Nam (CLMTV).
The statement was made in a joint declaration on
technology co-operation during the CLMTV (Cambodia, Laos, Myanmar, Thailand,
Việt Nam) Forum 2018, organised by the Thai Ministry of Commerce in
collaboration with partner organisations with the theme “CLMVT Taking-Off
Through Technology” that kicked off in Bangkok today.
The two-day forum aims to strengthen economic ties in
the CLMTV region and promote regional cooperation amidst challenges in the
context of current global trade, with an emphasis on the use of technology
for economic development.
The forum has attracted about 1,000 participants from
the public, private and academic sectors along with members of the media.
During his opening remarks, Thai Prime Minister Prayut
Chan-o-cha said that the CLMTV Forum provided a unique opportunity for leading
business people, senior policy makers and academics, and the younger
generation of entrepreneurs to come together and exchange views on the
sustainability of future cooperation.
“With shared historical, geographical, and cultural
ties, the CLMTV region has great potential to develop into a thriving global
hub for commerce, industry and tourism. An outstanding feature of the CLMTV
region is our resilience as a preferred destination for international trade
and investment,” he said.
“As the region is emerging with greater creative talent
and entrepreneurial ingenuity, there is an excellent opportunity to take
advantage of this trend by highlighting the importance of technology and
innovation towards the momentum of this regional growth,” the Prime Minister said.
This will require fine-tuning our cooperation in
digital technology, transport infrastructure connectivity, environmental
sustainability, and human resource development, all of which would be
substantial to the discussions within the 2018 CLMTV Forum, he said.
Thai Minister of Commerce Sontirat Sontijirawong said
the forum created opportunities for public and private sectors from all CLMTV
countries to develop a shared narrative to enhance collaboration and improve
the state of economic development in the region amid rapidly evolving
disruptive technology.
“It is the only international forum that connects
prominent public figures, distinguished business leaders, visionary young
entrepreneurs, and renowned academics from the CLMTV region and beyond to discuss
the most pressing issues facing the region today,” Sontijirawong said.
This year, the forum focuses on four important topics
that could shape the future development of the CLMTV region – digital trade
ecosystem, digital platforms and e-commerce, SMEs and startups, and creative
economy.
Addressing the forum, Vietnamese Deputy Minister of
Science and Technology Bùi Thế Duy said Digital transformation does not mean
buying software and hardware but is about how to change the business model
and adapt to technological transformation.
“Việt Nam is emerging as a country with great potential
to develop digital economy, as it has more than 58 million internet users out
of its 90 million people and more than 125 million mobile subscribers,” Duy
said.
Digitalisation is present in almost all fields in Việt
Nam, replacing traditional business models, from business registration and
electronic invoicing, to online retail, property and banking, he said.
“However, the country is also facing a number of
challenges. For example, 86 per cent of workers in the textile and garment
industry in Việt Nam would face the risk of losing jobs in the context of
growing automation.”
The appearance of robots would replace people in
production lines, Duy said.
Houmphanh Intharath, Lao Vice Minister of Science and
Technology said the spillover effects of digital technology and e-commerce
are growing rapidly in Southeast Asia., stressing the need to prepare
consistent, clear, and transparent policies and laws to better support
businesses in the adaptation with the changes that technology brings about.
CLMTV should regularly exchange experiences on
technological innovations, support businesses in connecting, learning and
exchange experiences in the field of digital technology to achieve prosperous
and sustainable economic development, he said.
U Tha Oo, Myanmar’s Deputy Minister of Transport and
Communications, said the reform of Myanmar’s economy towards digital economy
is being paid much attention by the government. The creative industry can
leverage digital technologies to enhance its already important role as a
vital growth engine of the CLMVT region.
The first day of the forum is themed “Technology to
Change Trade and Investment”, comprising parallel discussions, ministerial
conversations and leading business people exchanging views and extending
networks.
The second day, themed “Technology to Change Life and
Yound Generation”, emphasises the promotion of an inclusive economy by
enhancing the capacity to ultilise technologies among SMEs and startups, and
by applying digital technologies to support a creative economy.
The CLMTV Forum 2018 also features more than 40
exhibition booths from domestic and international organisations.
With a combine population of 240 million and GDP growth
as high as 6.2 per cent in 2017 (compared to the global average of 3.6 per
cent), the CLMTV region has attracted worldwide entrepreneurs to invest in
manufacturing and expand their markets, resulting in unceasing economic
expansion.
New US$556m Ha Long expressway to
open in early September
A new expressway connecting the world-famous Ha Long
Bay with the Hanoi-Hai Phong Expressway is almost finished.
The chairman of Quang Ninh Province, where Ha Long is
situated, has called on the builder to finish all remaining works before
August 31 so that the expressway could open to traffic on September 2,
Vietnam's Independence Day, authorities said on August 14.
As some of the supporting facilities are still being
built, Quang Ninh authorities have proposed limiting the maximum speed on the
highway to 80 kilometers per hour.
Once the project acceptance is complete, the speed
limit would go up to the designed 100 kph.
Workers can still be seen installing traffic signs,
barriers and lane dividers and painting road markings.
Built at a cost of VND13 trillion (US$556 million), the
24.6-kilometer Ha Long-Hai Phong Expressway connects National Highway 18 in
Ha Long's Dai Yen Ward with the Hanoi-Hai Phong Expressway in Hai Phong's Hai
An District.
Also built are a VND7.27-trillion bridge across the
Bach Dang River between Quang Ninh and Hai Phong. The 5.4-km bridge, with a
3.5-km span above the river, has a width of 25 meters (82 feet) and four
lanes.
Once opened, the expressway will reduce the Ha
Long-Hanoi commute by 50 km to 130 km, and the Ha Long-Hai Phong route from
75 km to just 25 km.
Work on it began in September 2015 and was scheduled
for completion last March, but was delayed twice.
The expressway is among a series of infrastructure
projects aimed at boosting the tourism industry.
Others include an international airport in Quang Ninh's
Van Don District and a new expressway between Ha Long and the proposed
special economic zone in Van Don, both of which are scheduled for completion
later this year.
In the first half of this year Ha Long held many events
including the launch of the National Tourism Year - Ha Long - Quang Ninh and
the 2018 Carnival Ha Long, both of which attracted tens of thousands of
visitors.
The bay helped Quang Ninh welcome 6.6 million visitors
this year as of May, including 2.17 million foreigners, according to official
figures.
Tourism revenues for the period rose 32% year-on-year
to VND11 trillion (US$472 million).
Danang to turn industrial zone into
urban area
Manufacturing enterprises operating in An Don
Industrial Zone of Danang City have been encouraged to move to other sites as
the industrial zone is scheduled to be converted into an urban area.
Pham Viet Hung, a member of the management board at the
central coastal city's export processing and industrial zone authority (IZA
Danang), revealed that the leaders of IZA Danang will work with Hanoi Urban
Architecture Development JS Company (HAAD) this week to launch the project to
relocate enterprises in An Don, Son Tra District. The project proposal will
be submitted to the municipal authority for approval in late 2018, and the
first phase will be completed by 2020.
Hung told The Saigon Times on August 8 that various
obstacles will be encountered in moving the enterprises, so it is necessary to
complete the process in phases. As many as 50 firms are operational in the
industrial zone, which was established in 1992, with half of them operating
in the manufacturing industry, including sectors that employ a large number
of laborers, such as textiles and garments, Hung noted.
“The city is in the process of encouraging these
enterprises to move to two new industrial zones: Hoa Cam industrial park (IP)
and Hoa Nhon IP,” Hung said, adding that Danang City will spend a lot of
money on compensating and supporting them.
“Enterprises that do not agree to move will be required
to change their technology and follow stringent environmental regulations,”
Hung stressed.
Some 25 years ago, when Son Tra District was
underdeveloped and the population was sparse, the opening of an industrial
zone was logical. However, Hung asserted that the population is growing very
quickly due to the demand for economic development, so the conversion is
necessary.
This is the first time an operational industrial zone
will be turned into an urban area, Hung noted.
Earlier, on April 7, 2017, the Prime Minister approved
a proposal to take the An Don industrial zone, covering over 50 hectares, out
of the general plan for developing industrial zones nationwide by 2020.
He also assigned the Danang government the task of
managing the use of land in An Don Industrial Zone for urban area
development. Based on the policy, Hung explained that new enterprises
operating in industrial zones in Danang City will be offered preferential
policies compared with other firms operating outside industrial zones, except
for enterprises in the Hi-tech Industrial Zone, which have benefited from
special policies to attract investment since 2015.
Local coffee shop chains are outmaneuvering
international brands like Starbucks by catering to customers’ demands.
Young customers are now choosing smaller brands like
The Coffee House, Cong Ca Phe and Phuc Long as their to-go spot for
affordable brews.
Local brands not only offer many beverage options but
also sophisticated interiors and unlimited and fast internet access to ensure
they retain customers, Nikkei Asia Review quoted market researcher Nguyen
Phuong as saying.
All this has helped these brands become very popular
among students and young working professionals, who can spend hours there yet
feel welcome.
Phuong said having knowledge of Vietnamese culture and
consumers has helped the local brands attract customers.
By changing their business models to fit customers’
tastes, local brands report growing and some are even looking to expand.
Nguyen Hai Ninh, CEO of what is thought to be the
fastest growing chain, The Coffee House, told Nikkei that he plans to open
700 outlets around Vietnam in the next five years, or around 10 a month.
Just one month after the brand opened its first shop in
Seoul last month, Cong Ca Phe plans to add two more stores in the Korean
capital.
The chain, which debuted in 2007, has more than 50
stores around Vietnam, and intends to add one or two every month until 2020.
Thuc Coffee, Urban Coffee Station and Phuc Long report
7% annual revenue growth.
In contrast, international names like Starbucks have
grown slower than expected in the Vietnamese market.
Starbucks only has 38 stores after entering the market
five years ago despite boasting huge numbers in neighboring countries such as
Thailand (330 stores), Indonesia (320) and Malaysia (190).
Meanwhile, NYDC, Gloria Jean’s Coffees, and Caffe Bene
of Korea have all wound up or are close to doing so.
Singapore-based NYDC closed its last store in July
2017, Australian brand Gloria Jean's Coffee also closed its last store in
April 2017 after a decade of slow growth.
Caffe Bene now has only three outlets remaining,
according to InsideRetail Asia.
Talking about the reason for the failure of
international brands in the domestic market, industry insiders said that high
rents on premium land have raised the cost of retail prices, making their
coffee less competitive than local ones.
A local coffee shop owner told Nikkei that opening a
200-square-meter Starbucks store in Saigon requires an initial investment of
US$215,000, while Coffee House only needs US$86,000.
Sean T Ngo, CEO of VF Franchise Consulting, said
Vietnam, a major exporter of Robusta coffee, imposes high import tariffs on
coffee beans, and international coffee chains often use imported Arabica
beans that raise costs significantly. Higher costs have driven many customers
to domestic brands.
Phuong said that another reason for the downfall is
that old brands are slow to adjust their business models to match customers’
taste.
Jan-July import-export revenue
higher than 2013 full-year figure
The import and export revenue of Vietnam in the first
seven months of the year surpassed that of the full year for 2013, according
to the General Department of Vietnam Customs.
Preliminary customs statistics from the department
showed that the total value of imports and exports in July reached a record
high of US$41.2 billion, a 6.1% rise against the previous month.
Vietnam exported goods worth more than US$20.3 billion,
up by 2.4% month-on-month, while the country spent over US$20.9 billion
purchasing foreign goods, up by 10%.
July was the second month this year, after January, in
which the total value of imports and exports was above US$20 billion.
Overall, the total import-export revenue in the year to
late July had amounted to US$266.1 billion, rising by 13.5%, or US$31.7
billion, over last year. The revenue was even higher than that of the full
year in 2013, at US$264.07 billion.
The respective figures for the seven-month import and
export turnover were more than US$131.6 billion and US$134.5 billion, up by
11.1% and 16%, respectively, according to the customs agency.
While Vietnam recorded a trade deficit in goods in May
and July, the country recorded a trade surplus in the first four months of
the year. As a result, there was still a US$2.85-billion surplus in its
seven-month trade balance, compared with a trade deficit of US$2.61 billion
in the same period last year.
The customs agency noted that the foreign direct
investment (FDI) sector had earned US$172 billion in imports and exports in
the year to end-July, up by 13.3%, or US$20.2 billion, over the same period
last year.
During this period, outbound sales of the FDI sector
rose by 15.9% year-on-year to US$94.2 billion, while the sector imported
goods worth US$77.8 billion, up by 10.4%. Therefore, the sector gained a
trade surplus of US$16.4 billion.
Among the export commodities, phone and phone parts
earned more than US$26.4 billion between January and July, a year-on-year
increase of 17.4%. Textiles and garments came second with some US$16.5
billion (up by 16%), followed by computers, electronic products and their spare
parts, earning US$15.9 billion (up by 16.2%).
Meanwhile, imports of computers, electronic products
and their spare parts rose by 13.9% to more than US$23.1 billion. Machinery,
equipment, tools and other accessories came second, earning some US$18.8 billion,
down by 6.4%, followed by phones and phone parts, earning more than US$7.3
billion, down by a mere 0.6%.
New entrant perks up competition in
Vietnam’s ride-sharing market
Go-Viet's attractive perks for drivers are motivating
many to shift from Grab, and the market leader is responding.
He’s one of the first drivers to sign up with
ride-sharing service Go-Viet, but Thanh Hung is still wearing the
well-recognized green GrabBike uniform.
“Too many drivers have just signed up for Go-Viet so
there are not enough jackets,” Hung said.
The 40-year-old motorbike driver said he was able to
make VND800,000 ($34) in a day and a half since he began driving for Go-Viet,
much higher than the VND500,000 (US$21) he would get from GrabBike for the
same work duration.
Hung said he is also attracted by the tax exemption
Go-Viet promises for the first six months and the bonus he’ll get if he
finishes nine trips a day.
Go-Viet, a Vietnamese version of Indonesian service
Go-Jek, entered the Vietnamese market early this month, seeking its slice of
the market pie that Grab has been dominating after the departure of Uber.
Aiming to tailor its service to Vietnam with a
different name and local teams, one of the first goals of Go-Jek in the
country is to recruit drivers.
“The company hopes to bring a stable income to tens of
thousands of drivers through technology,” Nguyen Vu Duc, CEO of Go-Viet told
local media in June.
The company had contacted potential drivers months
before the launch, either by meeting face to face or talking to them online,
its communication representative Huong Cung told VnExpress.
Grab did not comment on the ploys Go-Viet is using to
attract drivers, but it’s also deploying its own strategies.
The company has just launched a campaign to reward
drivers with five percent of the total revenue they make in a week, said
Nguyen Thu An, communication director of Grab Vietnam.
In early June, Grab also announced a plan to have over
100 stops for Grab drivers with free wifi, coffee and even vehicle washing
service in Ho Chi Minh City and Hanoi.
“There is a large number of drivers who don’t like Grab
and want to work for Go-Viet,” said Vu Hoang Tam, a mobile app expert and one
of the founding members of GrabBike in Vietnam.
This creates a good supply of drivers for Go-Viet,
which has learned a lot from the “previous battle,” Tam said, referring to
the competition between Grab and Uber earlier this year.
BIM signs for largest solar plant in
Southeast Asia
One of Vietnam’s leading private groups, BIM Group,
will partner with Philippines-based AC Energy, Ayala Corporation’s energy
arm, to develop the BIM Solar power plant in Ninh Thuan province to turn it
into the largest solar power plant in Southeast Asia.
Notably, BIM Group has signed EPC and financing
documents to increase the capacity of the solar power plant from 30 to
280MWp.
The joint venture plans to expand the capacity to well
over 300MWp. Upon completion, the solar farm will become the largest in
Southeast Asia and generate 545 million kWh of clean electricity annually.
BIM Group is the majority shareholder with a
controlling interest. The corporation has completed the credit agreement with
an international bank in order to secure a total loan amount of more than
$200 million.
Previously in this January, BIM and AC Energy started
developing BIM 1 solar power plant in Phuoc Minh commune.
The project aims to satisfy the increasing energy
demand and to replace fossil energy with more sustainable and renewable
alternatives, contributing to the country’s economic development and
improving living standards.
Recognised as one of the leading business groups in the
country, BIM’s operations are focused on four main business sectors,
including tourism development and real estate investment, agriculture-food,
commercial services, and renewable energy. The group is one of the few having
the capacity to meet the strict quality requirements of international
partners.
AC Energy Holdings, Inc., a subsidiary of Ayala Corp.,
develops and operates solar, wind, and hydro power generation facilities. It
has been recognised as the fastest developing firm in the Philippines. AC
Energy plans to expand its operation to Indonesia and other markets in
Southeast Asia.
Co-operating with AC Energy, one of the largest groups
of the Philippines, is expected to help BIM realise its long-term target to
generate 1,000 MW of clean energy by 2025 through these projects.
FPT betting on M&A to go global
Local tech giant FPT Group is betting on mergers and
acquisitions as the fulcrum to reach its ambitious $1 billion revenue target
from global markets.
The strategic agreement between FPT and its Slovakian
partner was witnessed by Prime Ministers Nguyen Xuan Phuc and Robert Fico
At the gala ceremony to honour exemplary mergers and
acquisitions (M&A) in Vietnam in the past decade from 2009 to 2018 as
part of the recent Vietnam M&A Forum 2018 hosted by VIR under the
patronage of the Ministry of Planning and Investment, FPT was called to the
stage in three award categories.
First, it was named among the 10 companies with the
best M&A strategies in the past decade. Second, it carved out a spot
among Vietnam’s top 10 M&A deals during 2017-2018 in the acquisitions
category. And third, it was honoured among Top 3 M&A deals during
2017-2018 in information disclosure.
Of the awards, the tech giant left the deepest
impression with its most recent deal in which it spent about $50 million on
acquiring a 90 per cent stake in Intellinet, becoming the first-ever
Vietnamese tech firm to acquire a US consultancy firm.
In the deal, FPThas paid $30 million cash, while the
remaining will be paid later based on Intellinet’s business results in the
next three years.
FPT had also chosen to unveil its first deal in the US
in a special way through a direct teleconference concurrently held in Vietnam
and the US in the presence of more than 30 media agencies.
At the event, FPT chairman Truong Gia Binh said, “FPT
has recognised the tremendous demand for strategic consultancy and digital
conversion in doing business with global firms amidst Industry 4.0. Our
strategic investment into Intellinet will help the group meet this demand. We
are ready to provide overall digital conversion solutions to global
companies, helping to bolster Vietnam’s status on the world tech map.”
At the time of the acquisition, Intellinet was one of
the fastest growing technology consultancy firms in the US, with about $30
million revenue in 2017. The company serves more than 200 customers, many of
whom appear on the Fortune 500 List. Meanwhile FPT holds a rich customer base
with about 80 customers on the Fortune 500 List and 400 major global
customers.
By acquiring 90 per cent of Intellinet, FPT expects to
double its revenue in the US in the next 12 months to $100 million.
By acquiring 90 per cent of Intellinet, FPT expects to
double its revenue in the US in the next 12 months to $100 million.
Truong Gia Binh stated that besides the US, the group’s
further targets might be Japan, Singapore, France, the UK or Germany. For
years, FPT has been wielding M&A as a fulcrum to materialise its global
strategy.
The group’s M&A approach dates back to 2013, as
chairman Binh said at the group’s strategic conference late that year, “One
of the top means of realising FPT’s global strategy will be M&A.”
This orientation was once again affirmed at the group’s
2014 annual general shareholders’ meeting (AGM). About two months after the
AGM, in June 2014, FPT Software, a member unit of FPT Group, bought an IT
firm in Slovakia to set a foothold in Europe.
The deal started producing profit one year later and
served as the key element driving FPT’s growth in Europe.
The group posted a 117 per cent jump in revenue in
Europe in 2014 and 56 per cent in 2015. Early this year, FPT Slovakia signed
a $100 million contract with FPT Software on providing solutions based on SAP
technology, the Internet of Things, and digital conversion platforms to
InnogySE, a member of European energy company RWE.
“Overseas M&A continues to play a major role in
FPT’s go-global strategy, with a budget of about $50 million per year. We
will continue searching for suitable partners in key markets, such as Japan
and Europe in the future,” said Nguyen The Phuong, FPT’s deputy general
director.
VNN
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Thứ Hai, 20 tháng 8, 2018
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