BUSINESS NEWS IN BRIEF US investors look to develop expaned Dung Quat Refinery   The joint venture of Wagan Corporation, GHN Group, and Masters Depot and domestic firm Tin Thanh Group Company Limited are looking to co-operate with each other to enhance and expand Dung Quat Refinery.   On August 28, the joint venture and Tin Thanh joined a working session with Binh Son Refining and Petrochemical Co., Ltd. (BSR), the investor of Dung Quat Refinery, to look for an investment opportunity in the expansion of the refinery. The parties discussed plans for the input and output of the plant as well as technology to be applied. The expansion is expected to be completed in 2020 and upon completion, the expanded refinery’s capacity will increase by 30 per cent or two million tonnes a year, to 8.5 million tonnes. It will be able to meet half of Vietnam’s fuel demand. The expansion is expected to be completed in 2020, upon completion, the expanded refinery’s capacity will increase by 30 per cent or two million tonnes a year, to 8.5 million tonnes. It is not the first time that Tin Thanh expressed interest in joining Dung Quat Refinery. In November 2017, the group publicly announced its ambition to spend VND40 trillion ($1.76 billion) on buying a 55 per cent stake to become BSR’s strategic investor, while the company only had a charter capital of VND200 billion ($8.8 million). According to information published on BSR’s website, Tin Thanh Group planned to buy a 5 per cent stake in BSR in 2017. The deal would cost around VND3.6 trillion ($158.5 million). Then, Tin Thanh and BSR will propose the prime minister to allow the firm to increase its holdings to 55 per cent in BSR. However, to date, no more information has been published. Masters Depot and Wagan specialise in manufacturing auto applications, solar products, and power supplies. GHN Group operates in building and maintenance in the petrochemical, petrol, and power sectors. On January 17, BSR reported a successful initial public offering (IPO) with a complete take-up of the offered shares and a record selling price of VND14.8 million ($651.69) per share. The average selling price was VND23,043 ($1.01), 57.8 per cent higher than the initial price. The lowest selling price was VND20,800 ($0.92). Of particular note, an individual investor succeeded in buying 10,000 shares at the record price of VND14.8 million ($651.69) apiece. BSR earned VND5.57 trillion ($245.26 million) in proceeds, 1.5 times higher than its expectations. Four out of five executives report blockchain initiatives underway 84 per cent of executives surveyed by PwC report blockchain initiatives underway, while 15 per cent are fully live. The new research from PwC—Blockchain is here. What’s your next move?—surveyed 600 executives in 15 countries and territories, on their development of blockchain and views on its potential. As blockchain rewires business and commerce, the research provides one of the clearest signals yet of organisations’ fear of being left behind as blockchain developments accelerate globally, opening up opportunities including reduced cost, greater speed, and more transparency and traceability. A quarter of executives report a blockchain implementation pilot in progress (10 per cent) or fully live (15 per cent). Almost a third (32 per cent) have projects in development and a fifth (20 per cent) are in research mode. The US (29 per cent), China (18 per cent), and Australia (7 per cent) are perceived as the most advanced currently in developing blockchain projects. However, within three to five years, respondents believe China will overtake the US (30 per cent), shifting the early centre of influence and activity from the US and Europe. The survey reflects the early dominance of financial services developments in blockchain, with 46 per cent identifying it as the leading sector currently and 41 per cent in the short term (3-5 years). Sectors identified by respondents with emerging potential within 3-5 years include energy and utilities (14 per cent), healthcare (14 per cent), and industrial manufacturing (12 per cent). “What business executives tell us is that no-one wants to be left behind by blockchain, even if at this early stage of its development concerns on trust and regulation remain,” said Steve Davies, Blockchain leader, PwC. “A well-designed blockchain not only cuts out intermediaries, but also reduces costs, increases speed, reach, transparency, and traceability for many business processes. The business case can be compelling, if organisations understand what their end game is in using the technology, and match that to their design.” Blockchain’s biggest benefits will be developed and delivered through shared industry-wide platforms. But the study notes that this will not happen without industry specific companies—including competitors—agreeing on common standards and operating together. A well-designed blockchain not only cuts out intermediaries, but also reduces costs, increases speed, reach, transparency, and traceability for many business processes. The business case can be compelling, if organisations understand what their end game is in using the technology, and match that to their design. Despite the technology’s potential, respondents identified trust as one of the biggest obstacles to blockchain’s adoption. 45 per cent identified it as an obstacle to blockchain adoption; 48 per cent believe its regulatory uncertainty. Concerns about trust among users is highest in Singapore (37 per cent); UAE (34 per cent) and Hong Kong (35 per cent), reflecting in part the dominance of financial services in blockchain development. Concern about regulatory uncertainty was highest in Germany (38 per cent), Australia (37 per cent), and the UK (32 per cent). “Blockchain, by its very definition, should engender trust. But in reality, companies confront trust issues at nearly every turn. Failing to state a clear business case from the outset leads to projects stalling,” continued Davies. “Businesses need to put more effort into building into their design how they can tackle trust and regulatory concerns.” “Creating and implementing blockchain to realise its potential is not an IT project. It is a transformation of business models, roles, and processes. It needs a clear business case, an ecosystem to support it, with rules, standards, and flexibility to deal with regulatory change built in,” he said. One in three of those respondents who reported little or no involvement with blockchain cited the reason for the lack of progress as cost (31 per cent), uncertainty over where to start (24 per cent), and governance issues (14 per cent). “Blockchain is an indispensable trend in technology. The potential of blockchain applications in Vietnam is huge. We have seen a great deal of events held in Vietnam that focus on the importance and application of blockchain in many industries and business fields. However, security in blockchain should also be taken into serious consideration. From a technical point of view, blockchain is one of the most secure technologies currently. Yet the risk from cyber-attacks still exists because blockchain still operates on a traditional platform. Therefore, we cannot remove the requirements of information security and privacy out of the development of blockchain,” said Robert Trong Tran, Cyber Security and Privacy leader at PwC Vietnam. The study identifies four key areas for focus in the development of internal or industry wide blockchain platforms. First, to make the business case, organisations can start small, but need to set out clearly the purpose of the initiative so other participants can identify and align around it. Second, to build an ecosystem, participants should come together from different companies in an industry to work on a common set of rules to govern blockchains. Of the 15 per cent of surveyed respondents who already have live applications, 88 per cent were either leaders or active members of a blockchain consortium. Third, it is neccessary to design deliberately around what users can see and do, partners need rules and standards for access permissions. Involving risk professionals including legal, compliance, cybersecurity from the start will ensure blockchain frameworks that regulators and users can trust. Fourth, managers should navigate regulatory uncertainty. The study warns that blockchain developers should watch but not wait as regulatory requirements will evolve over the coming years. It is vital to engage with regulators to help shape how the environment evolves. The study examines the views of 600 executives in 15 countries of Australia, China, Denmark, France, Germany, HK, India, Italy, Japan, Netherlands, Singapore, Sweden, UAE, UK, and the US. 14 per cent had no activity in place and 7 per cent have paused their development. Of the 15 per cent who already have live applications, 88 per cent were leaders or active members of consortia who were responsible for the blockchain infrastructure supporting their application. Companies that take a leadership role in a consortium have principal funding and control considerations, including IP ownership. VNG perseveres after losing almost two thirds of investment in Tiki According to VNG’s first half financial statement, after investing VND506 billion ($22.4 million) in Tiki, VNG’s investment is currently worth only VND185 billion ($8.2 million) at the moment. VNG has just released its financial statement for the first half of 2018, which outlined VND2.065 trillion ($91.4 million) in revenue, slightly down compared to the same period of last year. Of this, the online game segment continues providing the largest proportion of 81.5 per cent, with VND1.682 trillion ($74.4 million) in net revenue, while VNG gained VND313 billion ($13.85 million) from online advertisement revenue, capturing 15.2 per cent and up 31 per cent on-year. The remaining revenue of VNG in the first half of 2018 came from value-added services on telecommunications networks and internet (VND32.7 billion–$1.45 million), ringtones (VND16.2 billion–$0.72 million), and sales (VND8.4 billion–$0.37 million), which contributed VND38.7 billion ($1.7 million) in the first half of last year. Meanwhile, the revenue from financial activities was VND74 billion ($3.27 million), but VNG’s costs doubled, and the affiliated company made a loss of VND99 billion ($4.38 million) in the first half. As a result, VNG’s after-tax profit was VND244 billion ($10.8 million), down 58 per cent on-year. The statement showed that VNG continued pouring money into Tiki, although the e-commerce company has been posting consecutive losses. Specifically, VNG poured around VND384.4 billion ($17 million) into Tiki as of the end of 2017. On April 18, 2018, VNG invested an additional VND121.8 billion ($5.4 million) in Tiki, according to a contract to purchase newly issued shares. Thus, VNG made a total investment of VND506.2 billion ($22.4 million) in Tiki by June 30. In 2017, VNG recorded a loss of VND219 billion ($9.7 million) from Tiki. In the first half of this year, this loss rose by VND102 billion ($4.5 million). Thereby, the total losses in Tiki reached VND321.2 billion ($14.2 million) as of June 30 and the value of VNG’s investment in Tiki is only VND185 billion ($8.2 million). Earlier, in early 2016, VNG spent VND384.4 billion ($17 million) to acquire 38 per cent of Tiki, at a share price of VND104,300 ($4.6). At this price, Tiki was evaluated at over VND1 trillion ($44.25 million), making it one of the most valuable startup companies. At June 30, 2018, VNG’s total assets stood at VND4.364 billion ($193 million), up 1.5 per cent compared to the beginning of the year, including VND2.462 billion ($109 million) of deposits in banks. CapitaLand acquires prime residential site for US$61 million Singapore’s leading real estate developer CapitaLand has recently announced that it has completed its third acquisition within a month in Vietnam. The site is located in one of the fastest developing areas of Ho Chi Minh City—District 2—with a total area of over 60,000 square metres. This is the 13th residential development of CapitaLand in Vietnam. The development is expected to yield more than 100 landed residential units, targeted for completion by 2021. Lim Ming Yan, CapitaLand’s president and group CEO, said that the company was pleased to bag another highly coveted site in Vietnam, where its ninth residential development in the fast-growing District 2 of Ho Chi Minh City will be built. CapitaLand has been seeing year-on-year growth in home sales in Vietnam, which are continually contributing to the group’s earnings. As of June 30, 2018, 93 per cent of CapitaLand’s launched residential units in Vietnam have been sold. “We expect to hand over more than 30 per cent of the 2,680 units in Vietnam that have been sold in the second half of 2018,” Yan added. He added that this is CapitaLand’s third acquisition in August, as the company continues replenishing its land bank. “It is in line with our strategy to reconstitute our portfolio by deploying capital gain into higher yielding assets in high-growth markets such as Vietnam. CapitaLand will continue with our disciplined investment approach to build a sustainable residential pipeline, while ensuring an optimal mix between trading and investment properties, as well as a balanced allocation between emerging markets and developed markets,” he added. According to Chen Lian Pang, CEO of CapitaLand Vietnam, D2eight, the company’s first landed residential development in Vietnam, was sold out within a day of its launch on April 8, 2018. “This demonstrates customers’ confidence in CapitaLand’s projects and underscores the robust demand for quality landed residential properties in the market,” Pang said. According to Savills Vietnam, landed property transactions dominated Ho Chi Minh City’s residential transactions with a high absorption rate of 66 per cent in the second quarter of 2018. Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia. Earlier this year in March, CapitaLand announced a joint venture to develop a 0.9-hectare site in Tay Ho district in Hanoi to build an integrated development, catering to the needs for vibrant live-work-play spaces. This latest acquisition will add to CapitaLand’s existing S$1.1 billion (approximately $806 million) portfolio in Vietnam, comprising of two integrated developments, close to 8,000 quality homes across 12 residential developments, two retail malls, and more than 4,800 serviced apartment units in 21 serviced residences across seven cities—Ho Chi Minh City, Hanoi, Haiphong, Halong, Danang, Binh Duong, and Nha Trang. Da Nang works to increase traceability of seafood products The Da Nang People’s Committee has promulgated a plan on fisheries inspection, check, and control to ensure the origins of aquatic products. The plan has been disseminated to companies and fishermen so they are well aware of risk assessment and inspection criteria to prevent illegal, unreported and unregulated (IUU) fishing activities as instructed by the European Commission (EC).  In the last three months Pham Lieu, a fisherman from Da Nang city, has become familiar with declaring the origin of his aquatic products at Tho Quang fishing port.  Lieu says this procedure is important because the EC has tightened regulations for exporters and fishermen. He underscored the link between fishermen, local administrations, and enterprises to ensure the profitability of aquatic products. “Tho Quang fishing port officers are on duty around the clock to check the record of all catches. This will help ensure the quality of local seafood. For example, when you catch a fish of 50 to 70 kg, it can be sold for US$1,000  in Japan. If you can show a daily log that traces its origin, the fish will sell for US$350 or its price will drop by half without the log." Many ship owners see that, although it might take extra time to declare the origins of aquatic products, it will benefit them in the long run. Fisherman Nguyen Hau of Son Tra district says a daily log is indispensable on every of his voyage. When fishermen strictly follow the regulations, the seafood will be worth more, Hau stressed, adding that careful preparation is better for the fishermen. Using fishing logs has standardized fishing. The Da Nang Department of Agriculture and Rural Development has worked with the Border Guards Command and functional agencies to set up a Fisheries Control Office to set risk assessment and inspection criteria to prevent illegal, unreported and unregulated (IUU) fishing activities. A coordination mechanism among the relevant agencies has been built to ensure round-the-clock inspection, control the departure and arrival of fishing vessels and handle violations of fishing laws in waters under the city’s management. Lieutenant colonel Nguyen Tong Khuong of the Da Nang Border Guards Command said enforcing declarations of origin faced some initial difficulties, but now the process is working smoothly. “In normal weather, the captain must contact the Border Guards at least once a day and declare the co-ordinates of his vessel so we can deliver early danger warnings when necessary and closely monitor the ship’s operation,” Khuong said. In the first half of this year, Tho Quang port received as many as 55 returning vessels each day and traced the origin of their aquatic products. The department has coordinated with the Border Guards Command and district People’s Committees to organize classes at which aquatic exporters and ship owners or captains have learned about the new regulations of the 2017 Law on Fisheries, IUU prevention activities, and proper certification of aquatic products. Similar classes have been held for all local fishermen. Mekong Delta region makes up 18% of GDP Mekong Delta localities collected more than VND243.2 trillion (US$10.46 billion) for the budget in 2016-2018, and made up 18% of the country’s GDP, according to an official from the Ministry of Planning and Investment (MPI). In the period, the region’s average gross regional domestic product (GRDP) growth reached 7.5%, while per capita income in 2018 is estimated at US$2,217, said Nguyen Tuan of the MPI’s Local and Territorial Economy Department at a recent conference in Can Tho city. Tuan said that in 2016-2018, the region earned US$45.8 billion from exports, achieving 47.6% of its target for 2016-2020 at US$96.3 billion. He said the Mekong Delta has experienced good economic growth and positively transformed its economic structure. The region is the country’s top group in terms of the provincial competitiveness index (PCI), thanks to its improved investment environment and reformed administrative procedures, he said. The Mekong Delta comprises Can Tho city and 12 provinces – Long An, Dong Thap, Tien Giang, Vinh Long, Tra Vinh, Ben Tre, An Giang, Hau Giang, Soc Trang, Bac Lieu, Ca Mau and Kien Giang. Known as the country’s rice bowl, the region has seen low foreign investment, ranking only fourth out of six major economic regions in foreign direct investment attraction, reflecting inefficientsupport policies for enterprises, noted Tuan. He added that only 58% of labourers in the region are trained, lower than other regions. Under the public investment plan for 2016-2020, the Mekong Delta was allocated VND184 trillion (US$7.91 billion). So far, the region has received 57% of the funds, or VND105 trillion (US$4.51 billion). In 2019, total capital demand of 19 localities in the Mekong Delta and Southeast Region is estimated at more than VND136.5 trillion (US$5.86 billion), up 11.4% compared to 2018 and equivalent to 69% of the capital planned for 2019-2020. A report by the MPI showed that demand accounts for nearly 32% of the total planned investment of the country in 2019. Rice exports to follow strong upward trend Vietnam’s rice exports are likely to continue their vigorous growth in the late months of the year as the demand from China, the Republic of Korea (RoK), the Philippines and African countries is increasing. The Philippines intends to import an additional 500,000-800,000 tons of rice from now to the end of the year while the RoK will buy 92,783 tons. Indonesia and African countries have an increasing demand for rice imports to cope with production decline due to the impact of floods. Meanwhile, Cambodia’s rice output has dropped sharply after large areas of rice fields were destroyed by floods. This offers an opportunity for Vietnam to access and supply high-grade rice for Cambodia’s traditional markets such as China and the EU. It’s noteworthy that a new governmental decree on rice exports which will come into effect as from October 1, 2018 will facilitate rice exporters, especially small and medium sized enterprises, to boost exports of organic and other high quality rice to big markets with strong demand such as China, the EU, Africa, Iraq, Cuba and the UAE. According to the Agro Processing and Market Development Authority (AgroTrade) under the Ministry of Agriculture and Rural Development, the country exported around 441,000 tons of rice valued at US$209 million in August, bringing the total rice exports in the first eight months of this year to about 4.4 million tons worth US$2.2 billion, up 6.8% in volume and 22.1% in value against the same period last year. UK shares experience in land registration with Vietnam The United Kingdom’s experience in land registration and land information system (LIS) was shared at a seminar co-hosted by the Vietnam General Department of Land Administration and the UK Embassy in Vietnam on August 31. In her opening remarks, Deputy Minister of Natural Resources and Environment Nguyen Thi Phuong Hoa said that the implementation of the Land Law 2013, land registration work and the building of the LIS have so far gained positive results.  More than 70 percent of the nation’s surface area has been measured and mapped, while 96.9 percent of land that requires certification of land ownership certified.  A total of 117 out of the 713 administrative units at the district level in 32 cities and provinces have officially put land-related databases into use. The databases of Hanoi, Ho Chi Minh City, the northern city of Hai Phong, the central city of Da Nang, and Binh Duong, as well as Ba Ria-Vung Tau and Vinh Long provinces have been connected to the Vietnam General Department of Taxation, Hoa said. Victoria Abbott, a representative from HM Land Registry of the UK, shared that her office has only one land registration system with 14 bureaus across the country. Maintaining the system is complicated work, as land registration is related to ensuring the upkeep of land use rights. Along with obeying legal regulations, land planning and withdrawal may depend on political priorities, she said. The official stressed that the registration of land-use rights aims to balance and protect people’s rights related to land, within the legal framework. Joy Bailey, also from the UK’s land registry office, said that the Vietnam General Department of Land Administration could consider applying a similar approach. LIS may have bureaus across the nation, but is controlled by only one office to ensure consistency, she added. At the seminar, participants also made recommendations on development orientations for land administration in general, and on land registration and the building of LIS in particular.  Quang Ninh serves 9.2 million tourists in 8 months The northern coastal province of Quang Ninh welcomed 9.2 million tourists during the first eight months of this year, up 25 percent year-on-year and completing 77 percent of its target for the whole year.  The provincial Department of Tourism reported that the number of international holidaymakers to the locality exceeded 3.2 million, a rise of 18 percent against the same period last year, and fulfilling 65 percent of the yearly target.  During the period, the local tourism sector completed 73 percent of the yearly target, earning more than 16 trillion VND (685 million USD), up 29 percent year-on-year.  To gain such achievements, Quang Ninh has stepped up communication works in order to promote local tourism, while also intensifying its inspection of tourism services across the province.  Competent local authorities will scale up efforts to monitor the tourism business environment, increase tourism promotion, and pay attention to special and attractive tourism products for time to come.  In 2017, Quang Ninh received 9.87 million tourists, including 4.28 million foreigners, up 18 percent and 23 percent respectively. The tourism sector pocketed over 17.88 trillion VND (786.9 million USD), up 30 percent compared to the previous year, and contributed 3.2 trillion VND (140.8 million USD) to the State budget, accounting for 11.9 percent of the local budget collection. The province is hosting the National Tourism Year 2018 themed “Ha Long-Heritage, Wonder, Friendly Destination”. In 2019, the annual ASEAN Tourism Forum (ATF 2019) is scheduled to take place in Quang Ninh from January 14-19 under the theme “ASEAN: The Power of One”. First launched in 1981 in Kuala Lumpur, Malaysia, ATF is the biggest annual and alternated event under the ASEAN tourism cooperation umbrella with a view to promoting the Association of Southeast Asian Nations (ASEAN) as one tourist destination. It involves all the tourism industry sectors of the 10 ASEAN member states, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The hosting of ATF in 2019 creates a golden opportunity for Vietnam in general and Quang Ninh in particular to promote tourism. A wide range of activities will be held as part of the forum such as formal meetings between officials of ASEAN National Tourism Organisation (NTO) and meetings between ASEAN tourism ministers and their counterparts from China, Japan, the Republic of Korea and India. Other events include association meetings involving ASEAN Tourism Association, Federation of ASEAN Travel Association, ASEAN Airlines Association, and ASEAN Hotel & Restaurant Association, exhibition and business appointments seeking to facilitate the trade of regional and individual tourism products of ASEAN member states, and a tourism conference. Implementing the Comprehensive Plan for Tourism Development in Quang Ninh, the province has been striving to become an international tourism centre and a leading tourism destination in Vietnam with modern infrastructure and diverse, high-quality and competitive tourism products.  By 2020, Quang Ninh aims to welcome 15-16 million tourists, including 7 million foreigners, and rake in 30 trillion VND - 40 trillion VND (1.3 billion USD - 1.7 billion USD) in revenue. The tourism sector is expected to contribute 14-15 percent to the gross regional domestic product (GRDP).  With a range of stunning landscapes, clear turquoise sea and spectacular limestone pillars together with numerous tourism investment projects, Quang Ninh boasts huge potential to develop tourism. The province has a coastline of more than 250 kilometres and over 2,000 islets, two-thirds of the total number in Vietnam. The spectacular stretch of coast connects the UNESCO-recognised World Heritage Site of Ha Long Bay with majestic natural scenery, Bai Tu Long Bay, Van Don and Co To islands and Tra Co beach with Cat Ba National Park in the northern port city of Hai Phong. Along with the renowned Ha Long Bay, Quan Lan, Minh Chau, Ngoc Vung, Dai beaches in Van Don island district and Tra Co and Vinh Thuc in Mong Cai city have grown in stature among domestic and international tourists thanks to their breathtaking sea and coral reef.-VNA Romanian IT companies to hire Vietnamese programmers Romania is looking to begin recruiting IT specialists from Asian countries like Vietnam for temporary contracts of up to two years to fulfill a shortage in the local workforce, according to online news website Romania-insider.com. Romania has some 178,700 employees working in the local information and communication technology (ICT) sector, of whom 84,000 run tasks in IT services. Some 6,000-7,000 IT students graduate from their local universities annually, but the market demand is double that figure. Meanwhile, Romanian specialists who work abroad often choose not to return home, despite the fact that the IT sector pays the highest average salary in the local economy. As a result, recruiting specialists from Asian countries like Vietnam has become a necessity. Razvan Rada, General Manager of Head Hunting IT, said in the last few months, the agency has started seriously considering the selection and recruitment of IT specialists from Asia, including Vietnam, adding that the employees would work in Romania for limited periods. To date, Romanian employers have been recruiting workers from Vietnam, Nepal, and the Philippines mostly in the fields of hospitality, manufacturing, and construction. VinaCapital splash out on Tam Tri Medical Group The Vietnam Opportunity Fund (VOF), managed by VinaCapital Group, on August 31 announced its 25-million-USD investment in the Tam Tri Medical Group, which owns four private hospitals in Da Nang, Nha Trang city, Ho Chi Minh City and Dong Thap province. With the investment, VOF is now the biggest shareholder of Tam Tri, which in turn can use the funding to purchase new equipment, expand its own hospitals and acquire new ones. Andy Ho, chief investment officer of VincaCapital, noted Vietnamese are estimated to spend more than 2 billion USD on healthcare services overseas, which offers a great opportunity for high-quality medical facilities at home. He said VincaCapital believes Tam Tri is capable of seizing such opportunity. CEO of Tam Tri Medical Group Nguyen Huu Tung said the cooperation with VincaCapital will help the group develop itself into a leading healthcare system in Vietnam. Tam Tri Group now has 700 medical staff and accommodates 500 beds. The company, growing at a rate of 30 percent on an annual basis, is eyeing a nationwide expansion, with a focus on Ho Chi Minh City, the central and southern regions, particularly the Mekong Delta.- K-Foorand Vietnam 2018 brings 11 leading Korean brands to Hanoi Eleven leading food brands from the Republic of Korea (RoK) will hit the shelves of Vinmart supermarkets in Hanoi for the first time within the framework of K-Foorand Vietnam 2018. Accordingly, 86 products will be offered for sale at four Vinmart supermarkets at 234 Pham Van Dong, 72A Nguyen Trai, 54A Nguyen Chi Thanh and Ham Nghi in Hanoi. K-Foorand is a trade promotion program for 11 Korean food companies held as part of activities to enhance trade between Vietnam and the RoK conducted by the Korea Food Industry Association (KFIA). A KFIA representative said customers at K-Foorand Vietnam 2018 will be able to directly buy high quality Korean products at reasonable prices. Korean food companies taking part in the program include Nongshim, Daesang, Binggrae, Sahmyook, Dr. Chung’s Food, Paldo, Our Home, LCA Global, Samyang, Maeil and Korea Jiseng. The companies sell products such as consumer products, beverages, processed food, soya milk, instant noodles, ginseng extract health supplements, chili sauce and seaweed soup. These high quality products meet the food hygiene and safety standards of the KFIA and Vietnam quality management agencies. Customers to the participating stores have the chance to take part in promotional programs to win prizes with total worth of VND300 million. E-procurement underpins adaptation to Industry 4.0 E-procurement is considered an emerging and inevitable trend which will assist with Vietnam’s participation in the Fourth Industrial Revolution. In the era of Industry 4.0, the impacts of geographical boundaries and space on industry will be mostly eliminated. Instead, innovation in automation, digitalisation, and connection between real and virtual worlds is creating the starting point for the replacement of traditional trade and business with Industry 4.0. E-procurement is gradually replacing traditional procurement, and is becoming part of Industry 4.0, enhancing transparency and efficiency in state budget management. According to the Vietnam National e-Procurement Centre, in 2017, the number of e-procurement packages more than doubled compared to 2016, reaching 8,200 packages with the total value of approximately VND9 trillion ($398.23 million). In just the first seven months of 2018, about 8,900 packages were procured online, exceeding the total for the entirety of 2017. Notably, the largest package was worth VND194 billion ($8.6 million). Established in 2009, the Vietnam National e–Procurement System (VNEPS) is managed by the Vietnam National e-Procurement Centre under the Ministry of Planning and Investment’s Public Procurement Agency. The system supports enterprises and bidders to approach thousands of business opportunities from publicly funded projects in all categories – goods, civil works, consulting, and non-consulting services. VNEPS meets the four requirements established by Forbes for Industry 4.0, and opens up precious opportunities for enterprises to participate in public procurement. Connectivity One major challenge for enterprises wanting to expand into public procurement is information access. VNEPS is the solution for this challenge. Simply put, VNEPS is an e-commerce intermediary platform helping to connect enterprises with procuring entities in public-funded projects. These projects will be opened for competitive procurement on the VNEPS website: http://muasamcong.mpi.gov.vn. By registering a membership profile, bidders are able to access all information about the projects and procurement opportunities, and participate in the bids easily and conveniently. The system brings an advantage of removing geographical obstacles. With only an internet-connected laptop, every bidder, anytime, anywhere, is able to participate in procurement packages on the system. All trading and information exchange processes between bidders and procuring entities during bid preparation and bid evaluation are conducted completely online via the system. Information transparency All procurement information, including procurement plan, invitation for prequalification, invitation for bids, bidding documents, and bidder selection results, is made public on the system. Users can easily access this information on the VNEPS website. Besides, an e-procurement mobile application, named “Mua Sam Cong: Dau thau”, is now available on the iOS and Android mobile platforms. Users can access information about bidding packages with this app anytime, anywhere. VNEPS helps to reduce the risk of collusion by keeping the quantity and identities of participating bidders confidential until opening of bids. Specifically, no entity – not even the system administrator – is able to know that information before the bid opening. Therefore, an equal and competitive environment exists for all bidders participating in e-procurement. A cost-saving technical platform Bidding documents (request for proposals) can be downloaded free of charge via VNEPS, and the bid participation fee is only VND330,000 or $14.6 (including VAT). Thanks to the system, bidders can also save transportation, printing, and accommodation costs to participate in bidding. Human resources and time spent on procurement are reduced significantly when many steps can be done online. For firms, e-procurement helps reduce expenses and increase efficiency. For procuring entities, the reduced cost can enhance the effectiveness of state budget usage. According to estimates, bidding packages average 9.23 per cent cost-saving ratings, approximately VND475 billion ($21 million). Taking the northern province of Son La as an example, 53 e-procurement packages in 2017 had cost-saving rates of 9.5 per cent compared to 1.2 per cent in traditional procurement conducted in this province. E-procurement also helped cut down human resources costs to open a bid, from 10-12 people to fewer than three people when conducing e-procurement. Simplified procurement process The whole e-procurement process on the system is simplified and optimised throughout: from preparing and advertising procurement plans and bidding documents, preparing and submitting bids, and opening bids, to evaluating and announcing bidder selection results. Information on the system can be saved and used for multiple actions. For procuring entities, bidding information submitted on the system such as bidder selection plans, invitations for tenders, and bidder selection results are linked with each other. The system automatically fills those information in relevant forms. Bid prices are automatically calculated and updated from priced bill of quantities or price schedules, so that the system can prevent distortion and adjust mathematical mistakes in every package. For bidders, information like business information, financial capacity, implemented contracts – can be prepared in advance in the bidder’s profile and then those can be used when preparing bids. In 2018’s last quarter, the Ministry of Planning and Investment plans to issue a circular regarding sample for bid evaluation report forms for e-procurement, in which the examination of bidder’s qualification can be done automatically by the system. The system is being continuously upgraded to improve transfer speed and file upload size. As more and more steps are done online, more time and money will be saved. Doosan drives the first pile for the Nghi Son 2 thermal power plant The $2.79 billion build-operate-transfer (BOT) Nghi Son 2 thermal power plant officially started construction in the central province of Thanh Hoa by driving in the first pile on August 27.   Nghi Son 2 is a 1,330MW thermal power plant being built by Doosan that is scheduled for completion in July 2022. The project is invested by Nghi Son 2 power company (NS2PC), which is a joint venture between Marubeni Corporation from Japan and Korea Electric Power Corporation (KEPCO) from Korea. To launch the project, NS2PC made an initial payment of $170 million to Doosan on June 24, 2018. The first piles being driven at the construction site of Nghi Son 2 in Thanh Hoa province Nghi Son 2 will produce the power needed to continue fuelling Vietnam’s remarkable economic growth and development. For perspective, the plant will generate enough electricity to power 6.8 million four-person households in Vietnam and will improve the living standards and provide economic opportunities across the country. The construction of Nghi Son 2 will feature two separate high-tech, high-efficiency 665MW supercritical boilers, high-efficiency turbines, and generating units. The two units will be constructed side-by-side, but operate independently to allow for greater flexibility and efficiency. In 2012, Doosan Heavy Industries & Construction won contracts worth more than $6 billion to build Mong Duong 2, Song Hau 1, and Vinh Tan 4 thermal power projects in Vietnam. Doosan Heavy Industries Vietnam employs thousands of Vietnamese workers and has played an important role in the development of the country’s engineering sector and its economic growth. Doosan Group is a global multinational focusing on power, water, and other infrastructure developments worldwide. The company is headquartered in Seoul, South Korea, and operates in 38 countries, over 42,600 employees and $22 billion in annual revenue. VNN