Social News 28/6 KOICA helps Vietnam’s green urban planning project   KOICA helps Vietnam’s green urban planning project. Major products of the Technical Assistance Project for Establishment of Vietnam Green City Master Plan assisted by the Korea International Cooperation Agency (KOICA) of the Republic of Korea (RoK) were announced at a conference in Hanoi on June 27.  Addressing the event, Deputy Minister of Construction Phan Thi My Linh said after more than two years of implementation, with efforts of both Vietnamese and Korean experts, along with close coordination among the ministry, KOICA, and the authorities of Thai Nguyen and Kien Giang provinces - beneficiary localities, the project was finished with practical outcomes.  It focused on developing the Green City index of Vietnam and the Green City Urban Planning Decision Support System (GDSS); making pilot planning projects in Yen Binh urban area of Thai Nguyen and Rach Ra city of Kien Giang; and building a legal framework on green urban planning, she noted.  The Ministry and KOICE spent one year on preparing contents of the project before starting it, she said.  The project’s results are expected to significantly contribute to realising Vietnam’s national strategy on green growth, sustainable development, as well as help improve the country’s capacity in building and managing the green urban planning.  Products of the project will be useful documents for urban planning experts, thus supporting the management of urban development and planning in Vietnam in the future, Linh affirmed.  The Ministry expects that the project’s products, particularly GDSS, will be introduced to many localities throughout the country, towards enhancing the capacity of urban development and management and building the information system on planning management and urban development nationwide, she said.  Kim Jin-oh, Director of KOICA in Vietnam said with rapid economic growth and population expansion, Vietnam has been facing a serious of urban problems such as the lack of urban infrastructure facilities and environmental pollution. He said the Vietnamese Government has developed a Green Growth Strategy to balance economic development and environmental protection, while promoting efforts to devise relevant policies. Director of Thai Nguyen’s Department of Construction Hoang Duc Khanh said this is a practical project as it helps the State management agencies of Vietnam have a closer look at the planning-related issues. Thai Nguyen hopes to be selected for the project’s second phase, which will focus on green and smart urban development, he added.  Cooperation with KOICA in the project will be seen as a reference for the building of a project on smart urban development that will be submitted to the Government in the coming time, Deputy Minister Linh said.-VNA Viet Tri- Ba Vi bridge on Red River has last sections joined   The Viet Tri- Ba Vi bridge on Red River  The final segments of a bridge over the Red River connecting Viet Tri city of the northern province of Phu Tho with Hanoi’s Ba Vi district were joined on June 26, after three years of construction. Invested by the Phu My Group at an investment of more than VND1.46 trillion (US$63.64 million), the bridge was built under a build-operate-transfer (BOT) contract. The time of payback is expected to be about 20 years. The main bridge spans about 1.55 kilometres, plus 7.54km of approach road on the Hanoi side and 0.26km on the Phu Tho side, linking the National Road 32 in Hanoi with the National Road 32C in Phu Tho province. It is set to allow vehicles in late August and be put into commercial operation in October. A toll station will be located at Phu Cuong commune of Ba Vi district, with the fee starting from VND35,000 per car. Upon its completion, the bridge is expected to enhance connection of Hanoi with Phu Tho province and the north western region, creating synchronous traffic infrastructure in the area. Hanoi plans to build 14 bridges crossing the Red and Duong Rivers in the city by 2030, according to the municipal Department of Planning and Investment. 2 dead, 6 injured in tragic Nghe An accident   A passenger bus travelling on Highway 1A in the central province of Nghe An lost control and plunged into a paddy field, killing two people and seriously injuring six others on June 27. Six victims with serious injuries were sent to Nghe An General Hospital 115. The passenger bus was heavily damaged. 2 dead, 6 injured in tragic nghe an accident  hinh 1 After receiving notice of the accident, police in Hung Nguyen district, Nghe An province arrived at the scene to investigate the cause of the accident. ​Greenhouse cultivation warms Da Lat Once favored by holidaymakers in tropical Vietnam for its year-round temperate climate, Da Lat, the capital of the Central Highlands province of Lam Dong, is now warming at alarming rates due to the mushrooming of agricultural greenhouses on its outskirts and in nearby areas. ​The number of greenhouses in Da Lat and neighboring farming regions has grown by five times over the past five years, according to Dr. Vu Ngoc Long, former president of the South Institute of Ecology. Official reports put the total area of greenhouses in Da Lat and its proximity to around 5,600 hectares, but Dr. Long believes the actual number can be much higher. By the year 2020, Lam Dong looks to have over 17,500 hectares of ‘hi-tech’ farming land, meaning even more greenhouses will be built to realize this vision. “The statistics paint a gloomy picture of [the greenhouses’] impacts on Da Lat’s environment and landscape,” he said. “If you compare satellite photos of Da Lat in the old days and now, you would see green spaces being gradually replaced by vast swaths of white, the color of greenhouses. “The local agricultural industry is being dominated by greenhouses.” Greenhouses, despite their benefits, can have three major adverse effects on the environment -- raising air temperatures, reducing soil quality, and polluting the water system of an area, Dr. Long says. “The high density of greenhouses in Da Lat allows no room for ventilation, which leads to the build-up of hot air,” he explained The increase in outdoor temperature gives rise to a need for cooling systems inside the greenhouses, which emit hot air and other pollutants into the environment, worsening the situation. “The entire thing is a vicious cycle that only gets worse day by day,” Long said. According to the ecologist, the outskirts of Da Lat used to function as the city’s ‘air conditioner' that keeps its weather temperate throughout the year. As greenhouses begin to occupy this crucial space, coupled with increased construction in the city center, Da Lat is unsurprisingly getting warmer and warmer, he said. Readings show that the average yearly temperature in the Central Highlands city has climbed by 1-1.5 degrees Celsius over the past ten years. In areas with large numbers of greenhouses, this spike is even more noticeable, at around 3-5 degrees Celsius. Destruction of hillside forests to build greenhouses has also led to the degradation of soil quality, which is why there have been increased reports of landslides in the areas in recent years, Dr. Long explained. According to Dr. Vu Ngoc Long, the definition of hi-tech agriculture has not been fully understood by both policymakers and farmers in Vietnam. “The application of modern technology in farming is not all about greenhouses,” he said. “In fact, greenhouses are only a last resort when there is a need to grow crops in extreme weather conditions, while Da Lat’s climate is already ideal for growing greens and flowers.” According to Dr. Long, there is no reason to build greenhouses in Da Lat when they can be built basically anywhere else and still yield the same result, as the temperature inside such buildings can be monitored and adjusted. In European countries and the US, greenhouses are only constructed in locations where conservation is not as important as food production, he added. Lao students arrested for drug trafficking    Police in central Ha Tinh province have apprehended two Lao nationals who were trafficking a large amount of drugs into Vietnam's central province of Ha Tinh. The two suspects are identified as Phan Sai Lot Dala, born in 1993, residing in Laos's Kham Muon province, and Can, born in 1995, living in Bolykhamxay province, also in Laos. They are both final year students at Ha Tinh University. lao students arrested for drug trafficking hinh 1 They were caught red-handed at 8pm on June 25 at Ha Tinh City bus station while they were in the process of smuggling 200 amphetamine pills and 15 bricks of heroin from Laos to Ha Tinh province. Further investigation is still underway. Foreign organisations support children, disabled people in Thua Thien-Hue The central province of Thua Thien-Hue has received support from many foreign organisations in caring for children and people with disabilities in the forms of gifts and welfare projects. According to Head of the provincial People’s Committee Office Hoang Ngoc Khanh, the province has received 976 wheelchairs worth US$65,684 from the US-based Giving it Back to Kids organisation. Earlier in 2017, the Giving it Back to Kids organisation also presented people with disabilities in Thua Thien-Hue with 520 wheelchairs at total value of VND1.04 billion (US$45,760). Meanwhile, the Australian Blue Dragon Children’s Foundation provided nearly VND2.5 billion (US$111,364) as non-refundable aid to a project to prevent local children from migrating and falling victims to labour abuse. The project will be implemented by the provincial Women’s Union in two years from 2018. It aims to reduce the number of disadvantaged children in Phu Loc and Phu Vang districts who migrated in search for livelihood and became victims of labour abuse, and help such children return home. Major activities of the project include bringing children back to their family and help them re-integrate into the society, and assist women and children with high risks of labour abuse. The project will improve skills, capacity of leaders of the province and localities as well as community in preventing free migration and working at early age among children. The project also aims to create a safe and healthy environment for children who used to be children labourers and their families by supporting schools, building houses and raising awareness of relevant parties. Finland shares experience in smart city development with Binh Duong   Finland shares experience with the southern province of Binh Duong in developing a smart city and innovation ecosystem during a workshop on June 27. (Photo: baobinhduong.vn) Finland shared experience with the southern province of Binh Duong in developing a smart city and innovation ecosystem during a workshop in the provincial capital of Thu Dau Mot on June 27. The workshop aims to introduce Finland’s successful models in developing smart cities and innovation ecosystems, particularly in terms of smart operation and infrastructure. Furthermore, through the workshop, Finnish experts will identify key elements for the adoption of proper solutions to support the province in this matter. Speaking at the event, Vice Chairman of the provincial People’s Committee Mai Hung Dung lauded Finland as a global leader in innovation. The country has been in the Top 10 performers on the Global Innovation Index (GII) and the Global Competitiveness Index (GCI) for years, he said, adding that the Finnish success in economic growth and fostering sustainable development through innovation is a valuable example for Binh Duong. Dung also spoke highly of the long-standing friendship between the two countries, which would aid cooperation between Binh Duong and Finland. During the workshop, speakers shared experience in developing a smart city and innovation ecosystem with a focus on innovating the industry for economic growth, delivering friendly and convenient services to people and enterprises and building a city of innovation. Quang Nam’s tourism village pursues green tourism   A corner of Triem Tay community-based tourism village A green tourism week was launched in Triem Tay community-based tourism village, a major destination in the central province of Quang Nam, on June 27 with an aim to raise public awareness of ecological environment protection. A project launched in 2015 has given the Triem Tay community-based tourism village a facelift, helping it earn the certificate “ASEAN Community-based Tourism 2017-2019” in March 2017. Thanks to funding from the International Labour Organisation (ILO), UNESCO and local budget, many facilities such as community cultural house, piers and reception houses at Triem Tay wharf have been built over the past three years. Ancient houses in the village are preserved, while residents’ homes have been repaired and upgraded and roads and dykes built. Under the project, local residents have been involved in selecting outstanding local features and developing them into tourism sites, such as the Triem Tay orchard, the traditional mat weaving hamlet, the ancient houses of Mr Pho Ba and Mr Nghe Phung, and the uninhabited Triem Tay islet. Triem Tay village is located near the well-known Hoi An World Heritage Site and surrounded by several tourist attractions, such as Kim Bong wood carving and Phuoc Kieu bronze casting villages. It takes about 10 minutes to go to Triem Tay village from Thanh Ha pottery village by boats or just 5 minutes from Cam Kim and Kim Bong carpentry village (Hoi An city) by roads. It is an ideal place for walking, sailing, flying kites, and trying hands at weaving sedge mats and planting vegetables. More than 30 households voluntarily set up their own organisation called Triem Tay agricultural cooperative, including 7 service groups of food, art performances, gardening, sailing, craft village, accommodation and tour guide. Last year, the village welcomed nearly 10,000 visitors. Gala Vgong’s Got Talent marks Vietnam-Australia ties   A performance at the event  Hundreds of audiences were impressed by stellar performances staged by Vietnamese students in Wollongong (Vgong) at the Gala Vgong’s Got Talent event held in New South Wales, Australia, on June 16. The event was part of the activities to mark 45th anniversary of the Vietnam-Australia bilateral ties and cherish the establishment of the United Association of Vietnamese Students in New South Wales (UAVS) with the participation of Vgong as a member. It drew the participation of the Consul General of Vietnam in Sydney as special guest, students and guests from major universities in New South Wales such as the University of Wollongong (UoW), Sydney University, University of New South Wales, University of Technology of Sydney and Macquarie University. Vietnamese Consul General in Sydney Trinh Duc Hai stressed that education and training is among four pillars in bilateral cooperation under the agreement between the two countries to lift up ties to strategic partnership, which was reached during Prime Minister Nguyen Xuan Phuc’s visit to Australia in March. He expressed his hope that the UoW will play an important role in the bilateral education collaboration. After the establishment of the UAVS, the association of the Vietnamese intellectuals in New South Wales was set up, whose president and members are professors and researchers at the UoW. Pro-Vice Chancellor of the University of Wollongong Paul Gollan, for his part, highlighted that the university is proud of activities of the Vgong, one of the most active and effective clubs in connecting Vietnamese students in Australia. The UoW has long-standing relations with Vietnamese partners and universities, he said, adding that Vietnam is in top five countries with the most students pursuing study at the university, mostly in engineering, information and technology and business. The university also welcomes a line-up of leading researchers and scholars from Vietnam and last year many Vietnamese students received major awards and scholarships of the university, he underlined. Before the gala night, Hai had a meeting with the university’s executive board to discuss measures to foster education cooperation between the UoW and the Vietnamese universities and institutions in the fields of science and technology and business. VNN

BUSINESS IN BRIEF 28/6 VEAM to debut on UPCoM in July         The Vietnam Engine and Agricultural Machinery Corporation (VEAM) will trade 1.33 billion shares on the Unlisted Public Company Market (UPCoM) on July 2. VEAM’s code is VEA and it will debut at VND27,600 (US$1.22) per share, the Ha Noi Stock Exchange said in a statement on Tuesday. At that price level, the value of the firm is estimated at VND36.6 trillion ($1.5 billion). The company has a charter capital of VND13.3 trillion. It plans to move to the HCM Stock Exchange in the third quarter of this year. VEAM used to be a State-owned enterprise and was equitised on January 21, 2017. Current shareholders include the Ministry of Industry and Trade (holding 88.47 per cent of capital), Hoa An Trade and Investment Co. Ltd (six per cent) and foreign investors (3.05 per cent). VEAM posted VND6.56 trillion in total revenue in 2017, a yearly increase of four per cent. Its post-tax profit in 2017 rose by 13 per cent year-on-year to VND5.1 trillion. The company targets VND3.54 trillion in total revenue and VND4.9 trillion in post-tax profit in 2018. It expects to pay 28 per cent dividend, almost nine times the 3.7 per cent dividend payout rate in 2017. In the first quarter of this year, VEAM recorded VND1 trillion in post-tax profit, an annual increase of 27 per cent.  Hanoi sees 12,100 new enterprises in six months Up to 12,100 new enterprises were established in the capital city of Hanoi in the first six months of 2018, with total registered capital of 124 trillion VND (around 5.46 billion USD), reported the municipal People’s Committee. The figures represent a reduction of 3 percent in the number of businesses but an increase of 31 percent in the amount of capital compared to the same period last year. During the period, nearly 1,950 firms resumed their operations, down by 1.5 percent year-on-year, while more than 4,300 stopped operations, surging by 51 percent over the same period last year. Hanoi also saw 720 firms completing dissolution procedures in the first half of the year, 32 percent higher than last year’s corresponding period, the report said, adding that as of June, the city is home to some 251,500 enterprises. From January to June, the city’s total social investment capital reached an estimated 128.9 trillion VND (5.67 billion USD), up by 10 percent year-on-year. The registered capital of investment projects outside the State budget hit 80 trillion VND (3.52 billion USD), up 19 percent year-on-year, while foreign investment stood at 1.2 billion USD, up by 9.5 percent compared to the same period last year. To date, the city has 4,325 valid foreign direct investment (FDI) projects, capitalised at 27.94 billion USD, of which 15.4 billion USD has been disbursed. Gia Lai shifts to planting fruit trees with high economic value The Central Highlands province of Gia Lai has worked to replace traditional key farm produce like rubber, coffee and pepper with fruit trees, which generate more income. The province is home to more than 7,200ha of fruit trees, up nearly 1,200ha against 2016. The area is mainly to grow banana (1,700ha), mango (more than 1,000ha), durian (560ha) and dragon fruit (350ha), among others.  It aims to have 10,000ha under fruit trees by 2020, focusing on fruits with geographical indication tags. In addition, Gia Lai will promote high-tech agriculture and processing of farm produce, along with clean and renewable energy and tourism, said Chairman of the provincial People’s Committee Vo Ngoc Thanh.  The province will support businesses as well as seek domestic and foreign partners to achieve sustainable economic growth, he added. Duc Co border district is among localities with the strongest efforts to restructure agricultural production, with more than 350ha of fruit trees at present. Durian, the district’s staple, is grown on 200ha of land along with rubber and coffee gardens. The district’s durian output hits between 8-12 tonnes per hectare annually, raking in high income for growers. Similarly, KBang district has replaced coffee with fruit trees in more than 500ha of land. Tran Thi Lan, a farmer in the district’s Son Lang commune, earns more than 200 million VND (8,700 USD) in profit a year by growing organic oranges.  Major businesses have also started to invest in Gia Lai’s fruit sector. Notably, Hoang Anh Gia Lai Joint Stock Company planted more than 900ha of fruit trees in the province using a banana variety from South America, Thai durian, avocado and passion fruit.  In 2017, the company shipped nearly 700 tonnes of fruit to China and Thailand, with total export revenue exceeding 430,000 USD. A project to build one of the nation’s most modern fruit and vegetable processing factories in the province is set to be completed in July 2018. Invested by the Dong Giao Foodstuff Export JSC (DOVECO) to the tune of 300 billion VND, it is expected to yield 40,000 tonnes of products per year and generate jobs for thousands of local labourers.  Once operational, the factory is estimated to rake in 2 trillion VND (87.3 million USD) of revenue, including 80-90 million USD from exports, per year. Universal Robots introduces two new tech platforms Universal Robots, the pioneer in collaborative robots (cobots), is setting a new standard for collaborative automation platforms in Vietnam with the introduction of its new flagship e-Series cobots. The firm plans to begin shipping units to customers from the beginning of August. The new range follows Universal Robot’s co-founder, Mr. Esben Østergaard, being awarded the 2018 Engleberger Award, the “Nobel Prize” of robotics. Demand for automation and robotics continues to grow in Vietnam, particularly in the automotive, electronics, textile, footwear and food processing industries. Electronics is the largest export sector in the country, contributing $71 billion in 2017, and is a high adopter of cobots. The Vietnamese Government has unveiled the 2011-2020 Strategy for Science and Technology Development to enhance economic competitiveness and speed up industrialization, prioritizing the importance of industrial robots and hi-tech automation. “Cobot demand is growing in Vietnam as automation is increasingly becoming a necessity for businesses to achieve greater production efficiencies amid rising operational costs, labor shortages, and increasing competition,” said Ms. Shermine Gotfredsen, General Manager, Southeast Asia and Oceania, at Universal Robots. “With the e-Series and G3 product lines, we now offer customers two distinct technology platforms, catering to a wider range of business needs.” The new e-Series cobot platform includes technological advances that enable faster development for a wider variety of applications. Improvements include the ability to economically address even more applications, thanks to greater precision and sensitivity provided by a built-in, tool-centric Force/Torque sensor. Like other Universal Robots offerings, the new e-Series offers unparalleled convenience. It takes just one hour to unpack the cobot, mount it and program the first task. A wrist-join-tool communication interface reduces production line integration time and complexity. Meanwhile, from a service standpoint, all joints can be replaced in two to six minutes. A re-designed intuitive and responsive-touch user interface expedites program development by simplifying programming to a few clicks on a new lightweight, wide-screen Teach Pendant. Looking at the big picture, e-Series users can expect a fast return on investment with a cobot system ready for any future application and with long-term productivity gains. “Our e-Series platform is leveraging our years of experience as the market leader within collaborative robots,” said Mr. Jürgen von Hollen, President of Universal Robots. “The ‘e’ in e-Series underpins our key vision and overall product philosophy, specifically Empowering people and making it Easy for Everyone.” With the e-Series launch, Universal Robots now provides two different technology platforms. For customers interested in cobot capacity expansion for proven applications, the G3 is an ideal choice. The e-Series benefits businesses with advanced applications and diverse or uncertain future needs. Forum connects Vietnamese startups at home and abroad The forum “Connecting Vietnamese startups at home and abroad” was kicked off in Ho Chi Minh City on June 26, bringing together about 400 startup experts, local and foreign investors, innovation and startup support providers and students. In his opening remarks, Secretary of the municipal Party’s Committee Nguyen Thien Nhan said he expected that through the forum, experts will help the city and tackle problems that hinder its development, one of which is the lack of connectivity between the scientist circle and businesses. To address the weak point, the city must foster the development of the local technology market in a bid to give firms better access to technological products, he said, adding that technology and business must go together when a new enterprise is formed. Nhan moved on to say that after the recent visits to the US and Israel, the city’s leaders believed that it is very important to bring together Vietnamese people at home and overseas as experience sharing from such connectivity will support a business from the start, from market research, personnel recruitment to developing a business plan and making the product available on the market. To grow faster, the city must rely on people, especially Vietnamese people overseas, the official stressed. The forum, co-held by the Ministry of Foreign Affairs and the city’s People’s Committee on June 26 - 27, aims to share entrepreneurship advice and startup experience, connect entrepreneurs at home and abroad and introduce them to potential investors and investment funds.  It is also an opportunity for the startups to discuss with local policymakers their challenges and needs for support. Greater connectivity urged between domestic, FDI firms in electronics Very few domestic firms in support industries supply parts for FDI enterprises in the electronics industry, according to Nguyen Mai, President of the Vietnam Association of Foreign Invested Enterprises (VAFIE). Though FDI in Vietnam has almost reached 190 billion USD to date, accounting for more than one fourth of the country’s total investment, its spillover effects on local companies have yet to expand as expected. “FDI firms themselves want Vietnamese small- and medium-sized enterprises (SMEs) to be their local suppliers in order to help them reduce cost and improve competitiveness. But many problems have remained to hamper the effective connectivity among them,” Mai said. Electronics has become one of the economy’s key sectors, making Vietnam among the world’s 12 leading electronic workshops and the third largest one in ASEAN, said President of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc. The electronics led all industries in export turnover in 2017, earning the country more than 70 billion USD, 2.5 times higher than the textile-garment industry and nearly 5 times higher than the footwear, Loc noted. The number of electronic firms in Vietnam doubled over the past five years. The workforce in the sector also tripled, from nearly 239,000 workers in 2011 to 611,500 at the end of last year, he cited, adding that the electronics has maintained a big magnet for FDI into Vietnam. Despite such success, the VCCI chairman voiced concern over the fact that there is only one Vietnamese company among every 100 large firms in the electronics industry. Some 99 others are FDI enterprises, he said. These 99 firms contributed to 95 percent of the sector’s export turnover and 70 percent of sale revenue of electronic products in the local market. “Most of FDI firms in the electronics sector are just assembling workshops in Vietnam,” Loc explained, stressing the need to improve connectivity between the domestic and FDI firms. The Ministry of Industry and Trade’s Industrial Policy and Strategy Institute (IPSI) conducted a survey last year, interviewing 194 domestic manufacturers of mental, electrical, electronic, plastic and rubbery parts. The findings show that there were very few of them supplying parts for FDI producers in the fields of manufacturing, automobile, electronics, industrial machine and others. To solve this problem, the Vietnam Electronic Industries Association (VEIA) has been coordinating with the VCCI and the Government of Japan to carry out several projects to increase the number and the quality of employment in the electronics sector and foster cooperation between FDI firms and local SMEs. These projects have benefited 127 companies through a series of training events and policy dialogues. It could be the start of an era with improved connectivity between domestic and FDI firms towards the formation of a better electronic supply chain in Vietnam. Vietnam firms advised to penetrate into Middle East market Besides traditional markets such as the US, EU and Japan, Vietnamese enterprises should make inroads into the Middle East market, according to experts. The Middle East is a market with more than 400 million people and 16 countries. This region imports some 40 billion USD worth of food per year, which is projected to hit 70 billion USD by 2035. Over the past few years, trade between the Middle East and Vietnam has grown to reach 8.06 billion USD in 2016 and 12 billion USD in 2017, with Vietnam exporting 9 billion USD and importing 3 billion USD worth of goods. Vietnam mainly exported mobile phones, footwear, garment-textile, rice, pepper, wood and timber products, cashew nuts, fruits and vegetable and coffee. According to the Ministry of Industry and Trade, Middle Eastern nations have big purchasing power with annual average gross domestic product per capita of 60,000 – 127,000 USD. Consumption products and farm produce are the two main import products in the region. Moreover, the Middle East is an entrepot to other markets in North Africa and Central Asia.  President of Intimex Group and Vice Chairman of the Vietnam Coffee and Cacao Association Do Ha Nam said the Middle East has big demand for rice, coffee, pepper and aquatic products. He advised businesses to penetrate the market through Dubai because this is one of the most open economies and the gateway of goods to the region. Businesses should participate in trade fairs in Dubai to meet with partners from the Middle East and neighbouring regions. The Ministry of Industry and Trade suggested Vietnamese exporters study business customs as well as regulations and certificates to export to the Middle East. Deputy head of the ministry’s Asia-Africa Market Department Le Thai Hoa said the Middle East is known as a potential market with high import demand without strict quality requirements. To enable domestic firms to boost exports to the region, the Vietnamese Government will simplify administrative procedures on tax and reduce time for customs at international ports, he said. Recently, the Ministry of Industry and Trade abolished thousands of unnecessary administrative procedures to aid local exporters, he added. Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI) branch in Ho Chi Minh City Nguyen The Hung said the agency has held a number of exchange programmes and survey tours for Vietnamese businesses to explore foreign markets. To increase connectivity between Middle East and Vietnamese enterprises, the United Arab Emirates’s Relam Investment and Vietnam’s MIG Holdings signed a cooperation agreement to launch Trade Hub in Vietnam – a platform operating in many countries to connect online trade.  The Trade Hub is set to go into operation in July 2018, connecting manufacturers, services suppliers, financial organisations and investors. IMF helps with public investment management assessment A training conference on Public Investment Management Assessment (PIMA), which was developed by the International Monetary Fund (IMF), took place in Hanoi on June 26.  The Party Central Committee's Economic Commission and IMF co-organised the conference, where an IMF expert introduced the PIMA tool and fielded participants’ questions on the tool and its applications in real-life situations.  According to the IMF, the PIMA evaluates 15 institutions that shape public investment decision-making at the three key stages – planning sustainable development across the public sector; allocating investment to the right sector and projects; and implementing projects on time and on budget. Speaking at the conference, vice chairman of the commission Ngo Van Tuan highlighted the importance of the event, expecting public personnel using PIMA to work closely with IMF experts in making assessment and recommendations. Jonathan Dunn, IMF Resident Representative in Vietnam and Laos, said this is an efficient tool to study public investment. Ensuring the optimisation of public investment is needed in order to improve fiscal health, he noted. Dunn said he wants to help the Vietnamese Government identify priorities for the upcoming period and looks for further cooperation with Vietnam. The same day, the Party Central Committee's Economic Commission convened a meeting of its steering committee for compiling PIMA reports. Workshop seeks to optimise agri-silviculture More than 100 delegates from Southeast Asian countries gathered at a workshop in the central city of Da Nang on June 26 to seek measures for harnessing the potential of agro-forestry for a prosperous and resilient ASEAN. Participants discussed the role and contributions of the agri-silviculture, or the combination of growing of agricultural crops with simultaneously raised and protected forest crops, in ASEAN member countries’ strategy.  They highlighted a number of issues, including the agri-silviculture in association with restoring and protecting of river basins, and agro-forestry combination in managing disasters and restoring capacity. Dr. Nguyen Phu Hung, head of the Department of the Science-Technology and International Cooperation under the Vietnam Administration of Forestry, said that the workshop aims to raise awareness of the role of agri-silviculture in ensuring food security and enhancing the recovery capacity amidst climate change, natural disasters and other extreme weather conditions in Southeast Asian countries.  The event also created opportunities for speeding up cooperation among regional countries, organisations and sponsors in boosting agro-forestry development. Recently, agri-silviculture has proved great benefit in economy, society and environment. Currently, the application of model with a purpose to ensure food security and climate change adaption in Southeast Asia has been modest due to a lack of adequate policies for agri-silviculture development. Therefore, the building of guidelines on developing agri-silviculture in the Southeast Asian region is considered a priority and most practical activity in the context of climate change, disasters and extreme climate conditions. VPBank to buy back 73 million shares      The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) will buy back more than 73.2 million shares as treasury shares. The shares were issued by the bank as preferred bonus shares on July 8, 2015. VPBank will buy the shares at nearly VND34,000 (US$1.5) per share, it said in a filing to the HCM Stock Exchange. The total value of the deal is estimated to be nearly VND2.5 trillion ($111 million). The transactions will be carried out between July 9 and 20. VPBank has some 2.4 billion outstanding shares at the moment, of which more than 1.3 billion shares are listed on the HCM Stock Exchange under code VPB. VPB fell 1.1 per cent to close Tuesday at VND32,550 per share. VPBank recently announced the bank would finalise the list of shareholders who will receive 20 per cent cash dividend on Friday. The value of the dividend is estimated to be VND146 billion. VPBank was approved by the State Bank of Viet Nam in late May to increase its charter capital to nearly VND25.3 trillion from the current VND15.7 trillion via five share issuances. The bank earned VND2.6 trillion in pre-tax profit in the first quarter of 2018, a yearly increase of 36 per cent.  VinFast partners with global auto part suppliers      VinFast Manufacturing and Trading Company, a member of property developer Vingroup, recently organised a successful workshop in Frankfurt, Germany, with the participation of automobile part suppliers. The event brought together more than 300 prestigious suppliers from around the world and proved the attractiveness of VinFast’s large-scale automobile production project, affirming the company’s commitment to roll out auto lines of international standards. To produce high-quality cars that meet international standards, VinFast has paid great attention to seeking capable partners supplying spare parts and components. At the workshop, the company talked about the potential of the car market in Viet Nam, the objectives and visions of VinFast as well as the scale and progress of the project. Viet Nam today is emerging as one of the most potential consumer markets in the world, although the car ownership rate of the Vietnamese people is quite low---only 23 vehicles per 1,000 people, while the equivalent in Thailand is 204 vehicles per 1,000 people, and the minimum in developed countries is 400 vehicles per 1,000 people. However, with rising incomes, estimated at more than US$3,000 per head by 2021, combined with increasingly improved infrastructure and attractive demographic characteristics, it will be the premise for the Vietnamese automobile market’s purchasing power, which is expected to grow strongly in future. But Viet Nam does not have a Vietnamese car brand, and the domestic automobile industry still stands at the import and assembly stage. Based on research findings and after waiting for the appropriate time, Vingroup decided to invest in the project of producing automobiles and electric motorbikes with an aim to build a Vietnamese automobile brand meeting international standards. It also plans to contribute to the development of a leading auto industry in Viet Nam. As a Vietnamese automotive brand with international vision, VinFast has set a large production target, with an expected capacity of 250,000 cars in the first phase and 500,000 cars in the next phase, becoming the leading car manufacturer in Southeast Asia. The product portfolio of the company is also extremely rich, including gasoline types (sedan, SUV, hatchback), small electric vehicles and electric buses. VinFast has partnered with many prestigious corporations all over the world, including BMW, Magna Steyr, AVL, EDAG, Pininfarina, ItalDesign, Bosch and Siemens. It has built a team of experienced leaders from the world’s leading companies in automobile production. VinFast is a leading company in Viet Nam with the cooperation of partners in the supporting industry. The company has allocated 70ha of land to Phase 1 of the project in the northern city of Hai Phong for part supplies and supports maximum efforts in infrastructure and implementation procedures. According to VinFast, these are the parameters that prove the company will have a large demand for components and spare parts and establish long-term international partnerships. “VinFast is not only important for Vingroup, but also for Viet Nam, so we are working hard together with our partners for the successful implementation of this project,” said James DeLuca, general director of VinFast Production and Trading Company Limited. “We also recognise the indispensable role played by suppliers in this unique project and believe that the essential foundation for the two sides to go further is based on the relationship and cooperation. Therefore, we hope to further strengthen the relationship between the two parties and hopefully after the seminar in Germany, the suppliers will become part of the VinFast family,” he added. At the workshop, international suppliers expressed great interest in the Vietnamese automobile market, particularly in the VinFast project, and appreciated the scale of production as well as the historical mission of the project. According to industry representatives, with the vision of large-scale production and international standards, VinFast will have many potential customers. Some suppliers have expressed their desire for a long-term cooperation with VinFast through setting up of component factories in the project complex in Hai Phong. Vietjet to pay additional 20% dividend Vietjet Air plans to pay an additional 2017 dividend of 20 per cent of charter capital, according to its latest report. The registration date is July 2, corresponding to an ex-rights date of June 29. After this payment, Vietjet will then pay the previously-approved 2017 dividend to shareholders of 60 per cent, of which 40 per cent is in cash. Vietjet has regularly paid high dividends over the years, at time at more than 100 per cent. It has approved a 2018 dividend of 50 per cent. The Petro Trading JSC (Petechim) recently registered to buy 100,000 Vietjet shares after buying all 150,000 shares registered in the session previous. Vietjet’s high growth continued in the first quarter of 2018. Revenue stood at VND12.56 trillion ($558 million), an increase of 146 per cent year-on-year, thanks to growth in passenger air transport, ancillary services, and sales and leaseback revenue. After-tax profit of the parent company’s shareholders reached VND1.366 trillion ($60.7 million), a 263 per cent increase year-on-year. Pre-tax profit was $358 million, or 25.5 per cent of the annual target. Earnings per share in the quarter were VND3,026 ($0.13); among the highest on Vietnam’s stock market. Vietjet currently operates 55 A320 and A321 aircraft with more than 385 flights daily, carrying more than 55 million passengers to date on 82 routes covering destinations in Vietnam as well as international destinations such as Hong Kong, Singapore, South Korea, Taiwan, China, Thailand, Indonesia, Myanmar, Malaysia, and Cambodia. It plans to expand its network across the Asia-Pacific region and is continuing to expand its regional network. It has recently signed contracts to purchase new aircraft from the world’s leading aircraft manufacturers. For the second consecutive year it was honored in Nhip cau Dau tu magazine’s “Vietnam’s 50 Best-Performing Companies 2017” awards and is a member of the “Billion-Dollar Club” of companies that have market capitalization in excess of $1 billion. Technical transfer programme brings together Vietnamese, RoK businesses Representatives from businesses and universities of the Republic of Korea introduced cutting-edge technologies in various fields at a B2B matching programme in Ho Chi Minh City on June 26. The programme was jointly held by the Saigon Innovation Hub (Sihub), the Busan United Management of Technology Centre and the overseas Korean business association. It aims to connect Vietnamese businesses with RoK firms and universities in terms of technical transfer and supply-demand connectivity.  One of the spotlights of the programme is the B2B Match event, which featured more than 50 meetings between Vietnamese and RoK enterprises who came to seek business opportunities.  Huynh Kim Tuoc, Sihub CEO, described the RoK as an important partner among 100 partner countries of Sihub as the RoK is one of the leading nations in applying technologies in innovations.  Within the framework of the programme, Sihub signed a cooperation agreement on technological development with the Busan United Management of Technology Centre. The agreement is expected to create a commercial bridge between Vietnamese and RoK firms.  The event forms part of Sihub’s cooperation activities with RoK partners, aiming to expand its reach globally in 2020.  So far Sihub has inked cooperation agreements with many RoK partners, including Shinhan Futures’ Lab and the overseas Korean business association. WHO backs Vietnam's new tax proposal on sugary drinks World Health Organization (WHO) experts have expressed strong support for a new tax on sugary drinks proposed by the Ministry of Finance. The proposal, which will go into effect in 2019 if passed, will impose a 10% special consumption tax on different type of beverages, including sweetened drinks. While the tax aims to prompt a shift from unhealthy consumption habits, it has been criticized by business representatives and experts who say the industry is already taxed heavily. The tax proposal comes in the wake of Vietnam being put on high alert over its consumption of sugary drinks, which has skyrocketed over the last 15 years. The WHO noted that a fourth of Vietnam’s population was already obese or overweight. Guilermo Paraje, a WHO consultant, said the 10% special consumption tax will increase the average price of sweetened drinks in the Vietnamese market by 5%, and provide a VND4 trillion (US$173.9 million) boost to the state budget. He further suggested three tax proposals that would increase the tax contribution to VND12 trillion - one liter of sweetened beverages will be taxed VND3,500; VND35 per gram of sugar in every 100 milliliters of a drink; or a 40% tax on factory price. All three options will increase average soda prices by 20%. “People will substitute sugary drinks with water or other products, leading to alternative jobs. The industry has also experienced industrialization so there are not many job opportunities in this sector,” Paraje said. Dr. Jun Nakagawa, WHO representative in Vietnam, said excessive consumption of sugar was the leading cause of overweight and obesity, which are linked to many health risks such as diabetes, heart disease and gout. Vietnam has added sugary drinks to the list of items to be placed under stricter control and tax regulations, along with cigarettes and alcohol. The government has banned the sale of soft drinks in all school canteens across Vietnam. Truong Tuyet Mai, deputy director of the National Institute of Nutrition, said that Vietnamese people are forecast to consume over 5 billion liters of sweetened drinks in 2018, nine times more than in 2000, and the figure is estimated to reach 11 billion by 2025. The new 10% special consumption tax would also accrue to other beverages, including carbonated or non-carbonated soft drinks, juices, flavored water, energy drinks, instant tea, pre-packed coffee and flavored milk. US newspaper calls for recognition of Vietnam’s market economy The Washington Times has recently posted an article calling on the US government to recognize Vietnam’s market economy, and it said that Vietnam has become the US’s comprehensive partner and relations between the two countries have expanded. The Vietnam-US Bilateral Trade Agreement (BTA) signed in 2001 sent a positive signal to investors, but the US has not yet formally recognized Vietnam’s market economy. Policy experts are optimistic about Vietnam’s progress toward meeting the standards of a market economy, it said. The paper quoted Professor Carl Thayer of New South Wales University, who said if Vietnam is recognized as a market economy, it will enjoy lower US tariffs. Vietnam has implemented the Doi Moi (renewal) policy since 1986, bringing prosperity to many people and expanding the middle class. Vietnam’s broadband service allows people to access multiple sources of information internationally, facilitating Vietnam’s integration into the global economy. It also boosts Vietnam’s leadership in ASEAN. The article said the US should recognize Vietnam’s market economy to improve Vietnam-US relations, strengthen maritime safety and security through joint naval exercises, and deploy regular maritime patrols in the East Sea. Vietnamese farm produce shines at Rungis International Market More than 30 Vietnamese agricultural businesses are running fruit and spice stalls as part of a Vietnam farm produce week starting June 26 at the Rungis International Market in Paris. It took the Ministries of Industry and Trade, Agriculture and Rural Development, and Hanoi Promotion Agency one year of preparation for the event to take place, marking the first large-scale introduction of Vietnamese agricultural products to French importers. Speaking at the opening ceremony of the event, Stéphane Layani, President and Director General of the Rungis International Market, praised the quality of Vietnamese farm produce, particularly lychees, dragon fruit and coconuts. He said he believes the products will be a hit in France and also Europe and other parts of the world. Vietnam can be considered an agricultural power but it lacks a large wholesale market to distribute products, he said, noting that Rungis is a trustworthy location for Vietnamese farm produce to reach European consumers. Layani said Rungis is willing to cooperate with Hanoi to build a wholesale market meeting European standards. Chairman of the Hanoi People’s Committee Nguyen Duc Chung said the model of the Rungis market, which spans over 230 hectares, records 9 billion EUR in annual revenue and offers top quality farm produce, can be applied in Vietnam, particularly Hanoi. He stated Hanoi wants to work with Semmaris, the company that manages the Rungis International Market, to study the feasibility of investing in a wholesale market in Hanoi following the Rungis model. The event, featuring a space of Vietnamese culinary delights cooked by French chef Didier Corlou, received a warm welcome from visitors. Vietnam’s fruit, vegetables and seafood are now available across 180 countries and territories. Earning US$36 billion from agro-forestry-fishery exports in 2017, Vietnam was ranked among 15 biggest exporters of the products in the world. HCM City seeks investment for container depot HCM City is calling for investment in a new inland container depot (ICD) project with total costs of VNĐ5.8 trillion (US$ 250 million) in Long Bình Ward in District 9. The city’s People’s Committee asked the District 9 People’s Committee soon to outline a 1/2000 zoning plan which includes the ICD construction project, and then submit it to authorised agencies for approval. If the zoning plan is approved, the city’s Department of Planning and Investment will select investors for the ICD project.  SHB wins Business Excellence Award 2018 The Saigon Hanoi Commercial Joint Stock Bank (SHB) has been selected by the World Confederation of Business (Worldcob) as the only representative in Vietnam to receive the Bizz – Business Excellence Award 2018. The Bizz honours outstanding businesses and entrepreneurs in 120 countries around the world. To win the award, businesses must meet a number of strict requirements pertaining to leadership, management systems, quality in products and services, innovation and creativity, corporate social responsibility, and results obtained. The annual award ceremony is held in European, Asian and American cities. In 2018, Worldcob conducted a survey of Vietnamese enterprises and selected SHB as the only business to be awarded. SHB General Director Nguyen Van Le said the Bizz award recognised the bank’s efforts over the past years to bring the best products and services to customers, partners and shareholders. At the same time, it affirms the firm position of SHB in Vietnam’s financial market and reach further in the global arena, he added. Established in 1993, SHB is one of the five largest private banks in Vietnam. In the first quarter of 2018, its total assets exceeded 286.9 trillion VND (12.6 billion USD), including more than 12 trillion VND (527.4 million USD) of charter capital and 18.8 trillion VND (826.2 million USD) of equity capital. The bank mobilised 264 trillion VND (11.6 billion USD) of capital in January-April. The loan outstanding balance reached 202.5 trillion VND (8.9 billion USD), a year-on-year rise of 2 percent. SHB posted a pre-tax profit of more than 500 billion VND (21.9 million USD), up 63.5 percent against the same period last year. Over the years, SHB has won a number of prestigious domestic and international awards including Home Loan Product of the Year, Auto Loan Product of the Year, and Credit Card Initiative of the Year by the Asian Banking & Finance magazine. Most recently, SHB has won the Best Bank award in Vietnam 2018 from the US Global Finance magazine. The annual award was evaluated based on the growth of financial indicators such as total assets and profit, quality of products and customer services and technological development. New ideas crucial for retail success Maximising the shopping experience with the help of digital in-store solutions is key for future success in the consumer goods sector, delegates said at a seminar held in HCM City on June 27. Ho Mai Ho, General Manager of the FMCG (fast-moving consumer goods) sector at DKSH Vietnam, said joint research by DKSH and Smollan revealed that while the Vietnamese retail sector had healthy growth, the proliferation of retail channels made end-consumer reach more challenging.  In an ever-growing market, the retail sector had undergone changes, with a broader array of shopping channels available than just a decade ago, he said. Retail sales in Vietnam would continue to expand, he noted.  While traditional trade accounts for about three-fourths of total sales, modern trade channels have been growing in recent years and will continue to expand.  With the average household size shrinking, consumption demand had changed and families tended to buy less at a time, Ho said, adding that Vietnamese shoppers were increasingly buying from modern trade channels.  Bjorn Kruizenga, business development manager for Southeast Asia at DKSH Smollan Field Marketing, said that up to 70 percent of shopper decisions globally were made in-store, and 20 percent of shoppers made impulse and unplanned purchases.  For 28 percent of products, the choice of brand to buy is usually made before reaching the store. In addition, about 25 percent of consumers notice that the category they impulsively bought was featured in a display.  Finally, one in 10 shoppers would switch to another brand inside the store, he said. Maximising the shopping experience in-store was therefore key for a successful retail execution, he added. Ho said the company’s digital in-store solutions helped maximise the shopping experience and ensure shelf availability to consumer brands by providing them with smart data to track their key performance indicators. Field marketing in the last “mile” of the value chain had become an integral component for DKSH over the years, because it converted shoppers into buyers and helps drive sales for its clients, he said.  To increase market share, FMCG brands could choose to launch new products or expand to more outlets or online channels, he said.  "However, this requires significant R&D and marketing investments, while space on supermarket shelves is often limited."  "Despite the growing popularity of e-commerce platforms, most FMCG sales are still transacted at physical points-of-sale."  Thus, it was critical to optimise the supply of existing products in the retail space and maximize the retail availability and visibility at every opportunity, Ho said. Field marketing teams play a crucial role in being the enabler between FMCG brands and retailers to help both parties drive an optimal end-to-end supply of products to shoppers.  Ho said that e-commerce in Vietnam, despite accounting for just 0.3 percent of total retail sales in the country in 2016, would develop strongly in the coming time.  Enterprises need to invest and conduct research about e-commerce to map out appropriate plans for the future, he said. VNN