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BUSINESS NEWS 1/12

BUSINESS NEWS 1/12

Created 01 December 2018
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Red River Delta Industry and Trade Fair opens in Vinh Phuc,VN’s food safety demand a chance for producers,PropertyGuru Vietnam Property Awards launched,KIDO acquires cooking oil producer Golden Hope Nha Be

Red River Delta Industry and Trade Fair opens in Vinh Phuc, VN’s food safety demand a chance for producers, PropertyGuru Vietnam Property Awards launched, KIDO acquires cooking oil producer Golden Hope Nha Be

HCM City’s CPI falls 0.25 percent in November

The consumer price index (CPI) of Ho Chi Minh City in November fell 0.25 percent against the previous month but increased 2.98 percent year-on-year, announced the city’s Department of Statistics on November 29.

Among the 11 groups of commodities, seven saw price decreases month-on-month, with transport costs recording the highest decline of 2.09 percent due to two petrol price falls during the month. 

It was followed by the group of housing, electricity, water, fuel, and building materials, down 0.26 percent; and post and telecom services (0.11 percent); home appliances (0.03 percent); medicine and health services (0.02 percent); beverage and tobacco (0.01 percent); and culture, entertainment and tourism (0.01 percent). 

According to the department, there were also groups of commodities maintaining stable prices such as education and other goods and services, and restaurant and catering services.

In November, only the group of garment, headwear and footwear experienced a price increase of 0.03 percent compared to the previous month.

The price of gold rose by 0.03 percent while the price of US dollar went down by 0.04 percent month-on-month.

Meanwhile, in Hanoi, the CPI saw a decrease of 0.26 percent in November against the previous month and 4.17 percent year-on-year.

The country’s November consumer price index was down 0.29 percent from October, driven by cheaper petrol prices, the General Statistics Office (GSO) reported on November 29.

This month’s CPI rose 3.46 percent year-on-year and 3.24 percent from last December. The eleven-month figure picked up 3.59 percent from the same time last year.

Red River Delta Industry and Trade Fair opens in Vinh Phuc, VN’s food safety demand a chance for producers, PropertyGuru Vietnam Property Awards launched, KIDO acquires cooking oil producer Golden Hope Nha Be

 

Retail sales, services earn $172 billion in 11 months

Red River Delta Industry and Trade Fair opens in Vinh Phuc, VN’s food safety demand a chance for producers, PropertyGuru Vietnam Property Awards launched, KIDO acquires cooking oil producer Golden Hope Nha Be

Vietnam’s consumers spent 3 quadrillion VND (129 billion USD) on retail goods, accounting for three-fourths of the total revenue and up 12.3 percent from the same period last year. Several products enjoyed strong growth, including food and foodstuff (12.7 percent), clothing (12.3 percent) and home appliances (12.1 percent).

In November, consumers in the country purchased 385 trillion VND (16.54 billion USD) worth of retail goods and services, up 1.1 percent from October and 12.2 percent year on year.

Of the figure, they spent 288.6 trillion VND (12.4 billion USD) on retail goods, 47 trillion VND (2.02 billion USD) on accommodation and catering services and 3.4 trillion VND (146.1 million USD) on travel.  

Last year, retail sales and services earned 3.93 quadrillion VND (174.85 billion USD), surging 10.9 percent year on year.

The growth showed the people’s purchasing power was improving, largely due to the curbing of the consumer price index (CPI) at a hike rate of 3.53 per cent for 2017, below the government’s target.

Retail sales revenue also made up three quarters of the total figure, hitting 2.94 quadrillion VND (130.8 billion USD), a year-on-year rise of 10.9 percent.

The revenue of retail sales rose 14 per cent for automobiles, 13.2 per cent for gemstones and precious metals, 12.8 per cent for wooden products and building materials, 11.1 per cent for food, 10.2 per cent for cultural and educational products, and 9.6 per cent for clothing.

Meanwhile, turnover from accommodation and catering services stood at 494.7 trillion VND (22 billion USD), 12.6 percent of the total revenue and up 12 percent year on year. 

 

Heavy workload faces State capital management committee: forum

The recently-established Committee for the Management of State Capital at Enterprises (CMSC) will have a heavy workload to shoulder, needing great efforts exerted to overcome this challenge, according an expert.

A worker mans equipment on an oil rig of the State-owned Vietnam National Oil and Gas Group (Photo: pvn.vn)

Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management (CIEM), made the remark at a forum on State-owned enterprise (SOE) restructuring in Hanoi on November 30.

The CMSC, which made its debut last September, will manage 19 State-owned economic groups and corporations. According to consolidated financial statements on December 31, 2017, the total value of state equity at these 19 firms topped 1 quadrillion VND (43 billion USD) and the total asset value was 2.3 quadrillion VND.

Hieu said the establishment of the CMSC is a move to separate the State’s ownership and management of the SOEs. It is also a step towards setting up a modern and transparent governance framework for the SOEs.

The overlapping performance of the State’s management and ownership of its capital within various businesses has led to the urgent need for reform.

Pointing out two of the major challenges facing the CMSC, Hieu said this committee is a State agency but must work as a professional investor. Meanwhile, with such high requirements, the CMSC will have to devise mechanisms for attracting quality personnel.

Nguyen Van Khach, Vice Chairman of the National Financial Supervisory Commission, said the “super committee” needs to publicise its functions and tasks in managing and monitoring the State capital left at equitised enterprises. It is also responsible for accelerating and promoting the effectiveness of the divestment of State capital from the equitised firms.

Last year, Prime Minister Nguyen Xuan Phuc approved a plan for restructuring the SOEs, with a focus on State-owned groups and corporations, between 2016 and 2020. The Party Central Committee also issued a resolution emphasising that enhancing the restructuring and re-organisation of SOEs is a task of utmost importance.

In the first half of 2018, more than 28.05 trillion VND was collected from the work, including nearly 22.46 trillion VND from equitisation and 5.6 trillion VND from State capital divestment.

The total revenue from equitisation and divestment has reached approximately 198 trillion VND since 2016, according to the Steering Committee for Enterprise Reform and Development.

At the forum, policymakers, experts and representatives of SOEs discussed mechanisms, policies, and the current situation of SOE restructuring. They also looked into some obstacles facing equitisation and the impact of Industry 4.0 on this process. 

11-month index of industrial production rises 10.1 percent

Vietnam’s Index of Industrial Production (IIP) expanded 10.1 percent year-on-year in the first 11 months of 2018, according to the General Statistics Office (GSO).

The central coastal province of Ha Tinh led the nation with IIP growth of 93.2 percent in the January-November period. The result was mainly thanks to the Hung Nghiep Formosa Ha Tinh Steel Company.

Meanwhile, Nghi Son oil refinery helped the central province of Thanh Hoa hold second position, with its IIP rising by 33.6 percent. 

The capital city of Hanoi and Ho Chi Minh City reported IIP rises of 7.4 percent and 8 percent, respectively. 

In November alone, the IIP increased 9.6 percent compared to the same period last year. 

The processing and manufacturing sector reported the highest growth at 11 percent, followed by the electricity production and distribution, and the water supply and waste-sewage treatment sectors with 9.2 percent and 4.5 percent, respectively. 

Notably, after a period of decline, the mining sector regained its growth momentum by 0.2 percent this month, the GSO said. 

The IIP in the groups of private and foreign-invested enterprises respectively increased by 4.1 percent, and 3.4 percent. Meanwhile the State-owned sector reported a decrease of 0.9 percent in the month.

Red River Delta Industry and Trade Fair opens in Vinh Phuc, VN’s food safety demand a chance for producers, PropertyGuru Vietnam Property Awards launched, KIDO acquires cooking oil producer Golden Hope Nha Be

 

Ho Chi Minh City a rising startup hub: Japanese media

A Japanese newspaper has heralded Ho Chi Minh City as a “Silicon Valley of Asia” thanks to its upgraded infrastructure and growing financial areas. 

Nikkei Asian Review published the article on October 24.

The city built an incubator for startups in Saigon Hi-tech Park, in which giants like Intel and Samsung are based. It is also known as a cradle of startups with more than 800 operating ones. 

Over the past two years, the city has spent 90 million USD on start-ups and innovation programmes, formed partnerships with more than 20 foreign partners and has a total of 24 incubators and 12 startup spaces, leading to the launch of more than 760 start-ups. 

Ho Chi Minh City is also working to build creative urban areas in Districts 2,9 and Thu Duc. They are expected to be equipped with the most technological advances, modern tertiary education and become the best urban areas in the city. 

Foreign founders have chosen the city to start their own companies, many of them focusing on blockchain and digital currencies. 

Stewie Zhu, founder of DCC, a distributed credit provider on the blockchain, expressed his belief that Hanoi and Ho Chi Minh City would become two of the world’s blockchain hubs. 

He said he is impressed by investors’ enthusiasm in blockchain. 

To become the next Silicon Valley of Asia, Ho Chi Minh City must overcome other heavyweight rivals such as Singapore, Jakarta (Indonesia), Bangkok (Thailand) and Penang (Malaysia). 

One of the crucial issues facing startups is capital access. Vietnam is fine-tuning policies in this regard while Singapore, Indonesia and Malaysia have offered better incentives, making it easier for startups to pool capital and enjoy higher valuations. 

Changes in culture and education are also needed to create a favourable startup scene, given that easy capital access in the US’s Stanford and Berkeley universities has made Silicon Valley attractive to startups worldwide. 

According to experts, Ho Chi Minh City needs to choose suitable locations for creative urban areas, better understand investors’ needs and deal with traffic congestion.

 

Newly-established firms down in November

Vietnam saw declines in the number of newly-established companies and those resuming operation in November, said the General Statistics Office.

A total of 11,637 new enterprises were registered this month with total capital of 118.4 trillion VND (5.09 billion USD), down 10.5 percent and 22 percent, respectively, from the previous month. More than 3,400 others resumed operation, a month-on-month decrease of 1.4 percent.

The number of dissolved firms was 1,554 while 6.353 companies halted operations during the month.

In the first 11 months of 2018, more than 121,200 businesses were set up with 1.2 quadrillion VND worth of newly registered capital and 2.2 quadrillion VND worth of additional capital.

Close to 31,870 firms resumed operation in the January – November period, up 30.9 percent from the same period last year. These firms operational again brought up the economy’s total number of company to 153,100.

However, the number of firms suspending and dissolving operation rose alarmingly during the period, up 49.3 percent and 37.4 percent to over 83,100 and 14,800, respectively. Most of the dissolved companies were those with capital of below 10 billion VND. 

 

Refinery company fulfils tasks ahead of target

The Binh Son Refining and PetroChemical JSC (BSR) completed several tasks for the year on November 23, 38 days earlier than planned. 

In the past 11 months, the BSR manufactured 6.4 million tonnes of products, earning over 103 trillion VND (4.47 billion USD), up 32.9 percent from the plan. Its revenue to the State budget neared 11 trillion VND, 31.6 percent higher than the target. 

It also saved more than 824 billion VND in production costs, surpassing 70.76 percent of the yearly plan. Its Energy Efficiency Index averaged 103.4 percent compared to the 105 percent +/-1 percent plan. Six measures have been successfully launched, helping the BSR save about 1.9 million USD each year on average. 

The company optimised RON 95 petrol manufacturing to maximise profits and meet demand. 

In the eight years of operating the plant, the BSR added nearly 7 billion USD to the State budget, tripling its initial capital, accounting for 80 percent of its home central Quang Ngai province’s revenue to the State budget. 

According to the Vietnam Report, the BSR ranked seventh in the list of top Vietnamese companies 2017, and 14th in the list of the top 500 profitable enterprises. 

For 2019, the BSR has set the goal of operating Dung Quat oil refinery plant safely and stably. 

It will also continue divesting Vietnam’s National Oil and Gas Group (PetroVietnam)’s capital after equitisation and upgrading Dung Quat oil refinery plant as scheduled.

 

Yen Bai’s specialties introduced in Hanoi

Yen Bai’s specialties introduced at Big C Thang Long  supermarket in Hanoi

A programme to introduce specialties of the northern mountainous province of Yen Bai kicked off at the Big C Thang Long supermarket in Hanoi on November 30.

Jointly organised by Central Group Vietnam and the People’s Committee of Yen Bai province, the event aims to promote consumption and create added value for Vietnamese agricultural products. 

The programme will last until December 9 at 15 Big C supermarkets in the north. 

The event provides a chance for people in Hanoi and adjacent areas to buy Yen Bai’s specialties, which were certificated to meet food hygiene and safety standards, according to the organisers.

Products introduced at the event include dried meat, green tea, cinnamon, Seng Cu rice, five-colour steamed glutinous rice, Dai Minh pomelo, and Gioi Phien vermicelli. 

Representatives from the provincial Department of Industry and Trade said Yen Bai has focused on improving the quality of local products and ensuring requirements of food safety. 

Attention was also paid to building brand names and promoting products to consumers nationwide, thus fostering production and business development in local enterprises, they added. 

Le Thi Mai Linh, deputy head of Central Group Vietnam’s public relations, said as retailers, Big C and Central Group Vietnam regularly coordinate with ministries, sectors and localities to organise programmes to introduce agricultural products and local specialties. 

Big C and Central Group Vietnam have arranged numerous programmes to support many localities nationwide in promoting consumption of their farm produce, she said.

 

Vietnam urged to focus more on dynamic advantages to attract FDI

Vietnam must make more use of dynamic rather than static advantages to improve its efficiency in FDI attraction, said Dr. Dinh Trong Thang from the Central Institute for Economic Management (CIEM) on November 30.

The country has relied heavily on static advantages, like low costs in terms of labour, land and natural resources, to lure FDI but these resources are finite, Thang told a workshop reviewing the efficiency of Vietnam’s FDI attraction policies co-held by the CIEM and German Development Cooperation Agency (GIZ) in Hanoi.

Resources for investment are very important, said CIEM President Nguyen Dinh Cung, adding that if the issue is overlooked, it is not only the investment that is wasted but resources could also become depleted.

Thang added that Vietnam should attract FDI in a more proactive manner which must base on strengths and weaknesses of each city and province so each of them would develop different ways to enhance their FDI attractiveness. It is essential to achieve consistency among investment attraction goals, priority investment portfolio and measures to promote and attract investment, he said.

He further emphasised that the country needs to provide firms incentives based on their business performance so as to welcome more long-term and effective projects.

Le Thuy Trung, Deputy Director of the Ministry of Planning and Investment’s Department of Industrial Economy, said that current investment policies have failed to produce expected results. For example, the local automobile industry has been mainly built on assembly of parts with dearth of technology transfer. 

Similar trend is seen in the electronics, garment-textile and footwear sectors. In electronics, local content only accounts for 10 – 20 percent of the products while in garment-textile and footwear sectors, which are Vietnam’s key currency earners, most of materials have to be imported, leading to low added value.

Trung suggested that the country should exert more efforts to encourage use of advanced and clean technologies and technology transfer, and these need to be incorporated into laws. 

 

US pushes food exports to Việt Nam

US Deputy Chief of Mission McClelland makes a speech at the expo. 

The US Mission believed in building a fruitful partnership with Việt Nam that offered new and sustainable opportunities for both US and Vietnamese food companies.

The statement was made by the US Deputy Chief of Mission McClelland at a US food and beverage show held in Hà Nội on Thursday.

The event drew the participation of 15 US enterprises to advertise food and beverage products as well as seek Vietnamese importers.

According to McClelland, the US agricultural relationship with Việt Nam had grown significantly over the past 10 years, from US$1 billion in exports in 2008 to $3 billion in 2017.

“Much of the credit for this growth goes to food businesses and myriad stakeholders that aim to bring safe US food and beverage products to consumers in Việt Nam,” McClelland added.

Talking about the difficulties US food products faced entering the Vietnamese market, Francis Lee, director of United Base Company Limited, said previously, importers in Việt Nam always compared prices and the US food was often more expensive than others. However, in the past few years, people had concentrated more on the quality and safety of products rather than price alone.

“Việt Nam’s economy has started to grow, and there are a number of Vietnamese people now willing to pay higher prices for better quality and for expensive products. For example, US cherry exports to Việt Nam have increased spectacularly from 1,000 boxes in the summer of 2011 to 200,000 boxes in 2018,” Lee told Việt Nam News. 

 

PVN top list of 500 most profitable companies     

Viet Nam National Oil and Gas Group (PVN) tops the list of 500 most profitable companies, according to a ranking announced by Viet Nam Report Company.

This was released at an award ceremony at the Viet Nam National Convention Centre on Thursday.

PVN was followed by Viettel Group, Samsung Electronics Viet Nam Co Ltd, Honda Viet Nam Company, PetroVietnam Gas Joint Stock Corporation, Viet Nam Dairy Products JSC, Joint Stock Commercial Bank for Foreign Trade of Viet Nam, Hoa Phat Group JSC, Viet Nam Joint Stock Commercial Bank for Industry and Trade, and Vingroup JSC.

The ranking aims to honour enterprises that are profitable and have the potential to become the backbone of the Vietnamese economy and contribute to promoting Vietnamese brands to the international business community.

Experts also said the finance-banking, information, retail distribution, petroleum, real estate and public services (water, electricity) sectors would have high prospect for profit increase in 2018-19 period.

The increasing profit would be thanks to a stable economic growth, improved investment environment and increasing number of middle-income people, changes of consumption habits and rapid urbanisation. In addition, the efforts to save business operation and management costs would also contribute to improving their profitability.

Viet Nam Report also released the Viet Nam Earnings Insight 2018, saying that most of the firms highly appreciated the Government’s macro-economic efforts to curb inflation, adjust exchange rates and improve information and legal documents publication.

More than 97 per cent of enterprises rated efforts to maintain economic stability and improve the business climate as “good” or “excellent” in the first nine months of the year. Enterprises expressed discontent in the effectiveness of administrative services, infrastructure and access to land.

The survey also said businesses in the Profit500 have promoted investments while focusing on building high quality human resources, meeting with requirements of the Fourth Industrial Revolution.

Research on retail, food and beverage sectors showed that consumers’ behaviour has been significantly changed in the wave of economic and cultural integration; the popular internet connection trend and requirements to higher quality products.

The e-commerce trend was expected to strongly develope in the future thanks to internet connection and the increasing rate of smartphone users in Viet Nam. This could contribute to establishing omni-channels in the future – a favourite model for all scales of business to rapidly increase their sale.

Viet Nam Report also awarded the Top 10 most reputable companies in the food and beverage sector and Top 10 most reputable companies in retail sector.

 

Tepco becomes shareholder of DEEP C Green Energy     

Japanese Tepco Power Grid (TEPCO) officially became a shareholder in DEEP C Green Energy (DCGE), a company established under the DEEP C Industrial Zones umbrella, according to a signing ceremony held on Thursday at the Belgian Embassy in Tokyo.

Since 1997, DEEP C has been successfully developing 3,400ha of state-of-the-art industrial parks and ready-built-factories in northern Hai Phong City and Quang Ninh Provinces.

Two years ago, pushed by the mission of providing its tenants with highly reliable and stable power, DEEP C saw the need to establish a company focusing solely on power, being DCGE.

In addition to distribution power, DCGE started exploring new ventures in producing its own electricity from wind, solar and waste-to-energy.

TEPCO, the largest energy producer and distributor in Japan, recently expressed the ambition to expand its power grid business for the first time outside of Japan.

The partnership with DEEP C in Viet Nam marks the company’s first milestone of expansion abroad.

The company, which was founded in 1951 in Tokyo, will share experience in enhancing the power infrastructure standards, improving operation efficiencies and installation of the renewable energy farms.

Tenants in the DEEP C Industrial Zone benefit from various advantages such as the strategic location (being adjacent to the deep water port of Lach Huyen and directly connected to the new highway network), the best tax package commonly available in Viet Nam and reliable utility provisions such as power, water, wastewater treatment and telecom.

Being an ideal investment location for companies form various sectors such as automotive, petrochemicals, supporting industries and logistics, the DEEP C cluster is home to more than 90 international projects with the likes of Bridgestone (Japan), Chevron (USA), Knauf (Germany), and Pyeong Hwa Automotive (South Korea). 

 

KIDO acquires cooking oil producer Golden Hope Nha Be     

Food producer KIDO Group announced on Thursday it has bought out Sime Darby’s 51 per cent stake in cooking oil producer Golden Hope Nha Be to become its sole owner.

It did not disclose the price.

KIDO, which earlier bought Tuong An Vegetable Oil Joint Stock Company and Viet Nam Vegetable Oils Industry Corporation (Vocarimex), said the acquisition of Golden Hope is part of its plans to expand cooking oil production to become the industry leader.

Golden Hope Nha Be, owned by Vocarimex and Sime Darby, with the former holding a 49 per cent stake, is one of the leading companies in the industry and has an annual turnover of around VND1.3 trillion (US$57 million).

Its brands include Marvela and Ong Tao.

KIDO did not reveal any information about future plans for Golden Hope either.

KIDO, established in 1993, has grown into a giant food producer with products ranging from chilled foods like ice cream and canned foods to cooking oil or instant noodles.

 

PropertyGuru Vietnam Property Awards launched     

The fifth annual PropertyGuru Vietnam Property Awards were launched in Ha Noi this week.

The awards, instituted by Kohler, celebrate excellence in development and design, recognise corporate social responsibility and sustainable development, and acknowledge exemplary achievements in design and construction, building communities, customer care, and public facilities.

There are more than 40 competition categories and special awards.

The awards will be judged by an independent panel of experts chaired once again by Thien Duong, managing director of Transform Architecture.

As usual, the gala event will take place at the InterContinental Saigon Hotel in HCM City, which will host more than 500 guests, including top executives from leading brands.

The success of 2018 programme gave away 43 awards to more than 25 companies and public-private entities, including CapitaLand Vietnam, KIEN A Corporation, Alpha King, and SonKim Land Corporation, which went on to win the Best Boutique Developer (Asia) award at the regional 2018 Grand Final ceremony in Thailand. 

 

VN’s food safety demand a chance for producers  

Red River Delta Industry and Trade Fair opens in Vinh Phuc, VN’s food safety demand a chance for producers, PropertyGuru Vietnam Property Awards launched, KIDO acquires cooking oil producer Golden Hope Nha Be   

Increasing demand for safe and traceable foods is throwing up plenty of opportunities for food producers, the 7th IFC International Food Safety Forum heard in HCM City on Wednesday.

The two-day forum, hosted by the International Finance Corporation, discussed how investments in food safety and fostering a food safety culture could help companies unlock business opportunities, create jobs and contribute to economic growth.

Executives representing key players in the global food industry discussed the case for companies to adopt food safety standards and practices.

Gabor Fluit, general director of De Hues Vietnam, a subsidiary of the Dutch-based Royal De Heus Group, said 10 years ago when his company first entered the Vietnamese market, there was very little talk about food safety.

However, with the economy booming, consumers’ demands are increasing and people with high incomes are becoming more and more concerned about the quality and origin of the food they eat, he said.

“That is an opportunity for food producers to produce safe and traceable food to meet the demand of consumers in Viet Nam.”

He said if local producers could do so, there would be a double benefit: consumers could buy local products instead of imports and the high quality would enable producers to export.

The Government needs to enhance monitoring of food safety issues by collecting samples without prior notice at restaurants, supermarkets and wet markets, he said.

“If anyone violates regulations, their licence should be suspended immediately. This will increase consumers’ trust.”

Foreign experts and practitioners also shared their experiences in instilling a food safety culture and promoting stronger standards across food supply chains.

Rana Karadsheh, regional industry director of manufacturing, agribusiness and services for IFC, said investment in food safety management systems is a prerequisite for growing a country’s agribusiness sector.

“Internationally-recognised standards have a proven track record of delivering results that include better risk management and better access to markets. In addition, for investors a strong, effective food safety management system is a sign of a sustainable business.”

Agribusiness is one of IFC’s focuses. It recently invested VND230 billion ($10.2 million) in Vietnamese food producer PAN Farm JSC to support the expansion of its seed business and new export-quality flower, fruit and vegetable operations.

Nguyen Quoc Hoang, general director of PAN Food, said the IFC also brings in experts to help his company develop food safety standards. Thanks to this the company got a global food safety certificate last year.

The forum resumes today with more panel discussions on risk management in small holder supply chains and private sector investment in food safety. 

 

International industrial machinery expo opens in HCM City     

More than 310 exhibitors from 15 countries and territories are displaying their products at the Viet Nam International Exhibition on Industrial Machinery Equipment, Material and Products (Vinamac Expo) that has opened in HCM City.

On show are industrial machinery and equipment, metals, metallurgy, metal pipes, steel, metalworking, automation technologies and systems, chemicals, paints and coatings, digital textile printing technologies and equipment, and others.

There will be seminars and conferences on new trends and new technologies in metal working.

According to the organisers, the expo aims to enhance trade promotion and co-operation between local and foreign businesses in the machinery equipment sector.

Dao Phan Long, chairman of the Viet Nam Association of Mechanical Industry, said the mechanical engineering industry would use advanced technologies to make products of international standards, and would further enter the global value chain and make efficient use of energy.

The sector would develop a professional, disciplined and highly skilled workforce and design and manufacture enough products to meet domestic demand, he said.

It would focus on developing a number of sub-sectors like tractors, agricultural machinery, construction equipment, industrial equipment, and electrical equipment, he added.

Organised by the Viet Nam Advertisement and Fair Exhibition JSC, the annual event is being held together with the Viet Nam International Exhibition on Chemical Industry and the International Textile Printing Technology and Equipment Exhibition at the Sai Gon Exhibition and Convention Centre.

They will go on until December 1.

 

VN big market for German tool makers     

Viet Nam was the fourth biggest market among ASEAN countries for German machine tool manufacturers, following Thailand, Indonesia and Singapore, according to the German Machine Tool Builders Association (VDW).

Christoph Miller, head of the trade fair department at VDW, said: “For German manufacturers, ASEAN is a major customer region with a highly dynamic character. More and more production is being generated in the ASEAN region or being relocated from other markets into the ASEAN region. For the most part, these trends are emerging from the automotive and automotive supply industries, electronics, shipbuilding and general machinery construction.”

The overall potential of the ASEAN region shows that after the strong years from 2012 to 2015, current machine tool consumption has stabilised at a level of about three billion euros (US$3.4 billion), based on total imports to each country. Drivers here are Thailand and Viet Nam, he said.

Among export markets for the German machine tool industry, ASEAN as a whole region is ranked seventh. The two biggest markets in the region – Viet Nam and Thailand – are also major export markets for the German automotive industry, ranking 14th and 16th, respectively.

Overall, it is clear that Asia – with China as the biggest export market, followed by Japan, South Korea and ASEAN – is a major export region for the German machine tool industry, he said.

VDW, together with major machine manufacturers and control system manufacturers, has launched a project to define a universal interface based on the OPC Unified Architecture format (a machine to machine communication protocol for industrial automation developed by the OPC Foundation), he said.

According to VDW, Germany will debut high technologies and new solutions in metalworking at METALEX 2019, which will be transffered to countries in the ASEAN region.

Germany is eyeing the ASEAN market due to the region’s dynamic and strong development. In addition, the Industry 4.0 trend will provide opportunities for German companies to launch high technologies and new solutions in metalworking, together with know-how, to ASEAN and Viet Nam in particular, it said.

According to the Viet Nam Customs, Viet Nam’s machinery and equipment imports were worth $24.58 billion in the first nine months of the year, accounting for 14.2 per cent of the country’s total import revenue.

China, South Korea, Japan and Germany were the biggest suppliers of machinery and equipment to Viet Nam.

According to experts, more and more firms have invested in machinery and equipment to increase productivity and efficiency to improve their competitiveness in the global market. 

 

Top 100 products and services honoured     

The top 100 quality products and services most trusted and used by consumers were announced at a ceremony held in HCM City on November 29 by Tu Van Tieu Va Dung magazine published by Vietnam Economic Times.

The “Cool Products Awards 2018” nominated products and services in seven fields: finance-banking-insurance, food and retail services, fashion-cosmetics-beauty services, household appliances-interior decor, pharmaceuticals and healthcare equipment, tourism-resorts-real estate, and telecommunications-technology.

The awards are based on consumer votes for product and service quality, safety and payment methods that help save costs and offer convenience for customers, sustainable and environmentally-efficient manufacturing, business ethics and brand prestige, and others.

From January to October, the organising board received 21,000 votes and online feedback from 61,000 people nationwide on more than 5,200 products and services.

This year’s awardees include BIDV, HD Bank, FPT Retail, Sabeco, TH True Milk, 28 Corporation, Lock & Lock, OPC Pharmaceutical Joint-Stock Company, and the Reverie Saigon.

Speaking at the event, Nguyen The Hao, deputy editor in chief of the Vietnam Economic Times, said in the context of increasing competition in the consumer goods market, quality is a core factor, but it is not enough to ensure a win for businesses in competition.

Businesses need to create a differentiation and impression for their brand value and products, he said

At a panel discussion on consumers’ trust in the digital era held as part of the awarding ceremony, delegates said that consumer confidence in the digital age is based on two main tiers: quality and business value.

Competition among businesses amid global integration is also based on cultural and ethical factors, of which business ethics is a decisive factor.

Reality shows that business ethics plays an important role in the sustainable development of a business, as well as its profit growth, they said.

It is not difficult to choose a product but consumers want more from a quality product. They want to know values that a product or brand brings to the community through its production and business practices, they added.

Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy, said in the current revolution, consumers are concerned about convenience, culture, humanity and green aspects of a product or service.

Unlike previously when businesses usually sell what they have, businesses now must make products based on market demand, he said.

The awards have been presented annually since 2006. 

 

Red River Delta Industry and Trade Fair opens in Vinh Phuc     

The Red River Delta Industry and Trade Fair kicked off in the northern province of Vinh Phuc on Thursday. The fair features 350 stalls showcasing industrial products, handicrafts, local specialties, consumer goods, household appliances and farm produce.

Speaking at the opening ceremony, director of Vinh Phuc’s Department of Industry and Trade Nguyen The Truong said the fair was part of the 2018 national trade programme held by the Ministry of Industry and Trade.

The fair aims to promote trade and investment activities to create opportunities for enterprises in the Red River Delta region in particular and the whole country in general to introduce brands and expand the consumption market.

At the same time, it is an opportunity for enterprises to exchange information, seek partners, exploit the potential of localities and expand international co-operation. The event also introduces Vinh Phuc Province’s achievements in industrial development, agriculture, trade, services and tourism to visitors at home and abroad.

The fair will run till December 5. 

 

CBRE to manage Ha Noi luxury housing property     

CBRE announced on Wednesday it has been hired to manage Ha Noi luxury apartment project D’. Le Roi Soleil.

Developed by Tan Hoang Minh Group on Xuan Dieu Street near West Lake, the property measures nearly 10,000 square meters, will have two 25-storey residential towers, an eight-storey service tower and underground parking.

Being built in neoclassical European architectural style, it has three sides facing the West Lake and the other facing the Red River.

It is in the final stages of completion. 

 

Bac Lieu looks toward 1 billion USD in shrimp export earnings

The southern coastal province of Bac Lieu has made shrimp farming one of the five pillars for local socio-economic development with the goal of raising shrimp export revenue to 1 billion USD by 2025. 

The province sets the target based on its natural advantages, including 56km of coast and three big river mouths and three eco-systems of salt, brackish and fresh water. Nearly half of the province’s natural area (257,000 sq. km) can be used for shrimp breeding. Bac Lieu currently produces 115,800 tonnes of shrimp a year, ranking third in the country. 

Towards the goal, the provincial administration has issued resolutions and policies to stimulate the growth of this spearhead industry. The Government’s approval of the establishment of a hi-tech shrimp farming zone in Bac Lieu provides another important condition for the province to become a national shrimp farming centre. 

Secretary of the provincial Party Committee Nguyen Quang Duong said the province is accelerating the restructuring of agriculture in the direction of industrialization and modernization, promoting investment in and the application of scientific-technological advances, especially bio-technology, to raise agricultural productivity, quality, efficiency and competitiveness, and strengthening the linkage between farming, processing and marketing. 

As a result of those policies, 10 companies and 300 households in Bac Lieu have applied technology in shrimp farming on a total area of 1,600 ha, which produce from 25-50 tonnes of products each farming season and high profit of between 500-700 million VND (around 21,500 – 30,000 USD) per ha per season. 

Bac Lieu is leading the Mekong Delta and the country as well in producing high-quality shrimp fry with an output of 25 billion fry a year, accounting for more than half of the Mekong Delta’s output and one quarter of the country’s.

The province is also a hub of shrimp processing, ranking third in the country in total design capacity of local factories.  

Bac Lieu has been chosen by the Ministry of Agriculture and Rural Development to develop shrimp farming in accordance with criteria set by the World Organisation for Animal Health (OIE).

A shrimp farm of the Viet-Uc Seafood Corporation in the province has become the first in Vietnam to meet OIE-recommended standards set for a disease-free shrimp breeding facility. 

Experts said this is a big step forward for the shrimp industry, giving Vietnam’s shrimp the “gold ticket” to enter markets with strict import requirements in the world.   

Chairman of the provincial People’s Committee Duong Thanh Trung said the province will continue to expand the area of shrimp farming following international standards such as Natuland, GlobalGAP, ASC and BAP, thus enhancing local shrimp products’ value and achieving sustainable development. 

 Under the province’s shrimp farming development plan, the area of shrimp farming will be expanded by an average 0.38 percent a year during 2021-2025 to 141,000 ha, including nine hi-tech farming zones.  

The annual shrimp output from farming will increase to an estimated 251,000 tonnes. In addition, seafood catches are projected at 125,000 tonnes.

The industry and trade department forecast that shrimp export will earn the province 606 million USD this year, up 14 percent from 2017.

 

Hai Phong: Private sector expected to be engine of local economy

The northern city of Hai Phong sets to have about 33,000 operational enterprises by 2020 in an effort to develop the private sector as an engine of the local economy.

To this end, the port city has taken various moves to improve business climate and support the growth of startups and small- and medium-sized enterprises (SMEs).

Being aware of innovative startups’ potential, the city has adopted a plan on local startup ecosystem development to 2020, said Director of the municipal Department of Science and Technology Duong Ngoc Tuan. 

Under the plan, the city expects to have 100 startup projects, 20 percent of which get funding from investors; and have 50 startup businesses, of which at least 20 are recognised as hi-tech firms.

Hai Phong has further improved a business environment. This year, the municipal People’s Committee opened 11 dialogues with enterprises to learn about their problems and help them remove barriers. The Hai Phong Economic Zone Authority has also held such type of dialogue to promptly resolve difficulties for investors. 

As a result, the time required to complete business registration was cut by 23 percent while the time for a business to obtain an investment permit was reduced by 45 percent. 

Furthermore, the city is drafting new policies to support local SMEs, in which more than 256 hectares of land will be zoned off to develop industrial clusters and areas for processing of agricultural, forestry and aquatic products and preferential land lease rates will be offered to the SMEs in these areas.

The SMEs will be supported to participate in supply chains in the fields of industry, agriculture, forestry and aquaculture.

As of November 22, Hai Phong has lured 295 FDI projects, worth over 13.4 billion USD, to its economic zones and industrial parks. The number of projects invested by domestic firms stood at 136 with the total capital of approximately 136.2 billion VND (5.9 million USD).

In this year, the city expects to grant business licences to 3,175 new enterprises who registered combined capital of over 19.4 trillion VND (840.1 million USD), up 5.34 percent and 8.45 percent, respectively, from the previous year.

The city estimates to collect about 70.7 trillion VND (3.06 billion USD) for the State budget, including 43 trillion VND (1.86 billion USD) from export and import activities.

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Vietnam’s total revenue from retail sales and services has continued to grow strongly, reaching 4 quadrillion VND (172 billion USD) in the first 11 months of this year, a year-on-year increase of 11.5 percent, according to the Statistics Office of Vietnam

 

Source: VNN - Bridge

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