BUSINESS NEWS IN BRIEF 3/1

Created 03 January 2019
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Thua Thien-Hue to have one more five-star tourist complex,Vietnamese exporters advised to strictly follow origin regulations,Yinson extends stay in Vietnam for 6 more months,Viet Nam should boost trade promotion for more exports to ASEAN

Thua Thien-Hue to have one more five-star tourist complex, Vietnamese exporters advised to strictly follow origin regulations, Yinson extends stay in Vietnam for 6 more months, Viet Nam should boost trade promotion for more exports to ASEAN

Agricultural sector speeds up restructuring, growth model reform

The agricultural sector is focusing on stepping up restructuring associated with growth model reform and new-style rural area building in order to effectively carry out the Government’s resolution on major tasks and measures to implement the 2019 socio-economic development plan and State budget estimates.

To achieve all set targets, the sector will work to build a smart agriculture, intensify international integration, adapt to climate change, increase the added value and boost sustainable development in combination with the building of prosperous and civilised new-style rural areas.

It aims for 3 percent in GDP growth, 3.11 percent in agro-fishery-forestry production value increase, and over 43 billion USD in agro-fishery-forestry export turnover. The forest coverage is projected to reach 41.85 percent, while the rate of new-style rural communes is aimed at 50 percent, and at least 70 districts will be recognised new-style rural areas.

The sector will implement three strategic breakthroughs in a synchronous, drastic and effective manner, including reforming and improving institutions to develop the socialist-oriented market economy in agriculture; building agricultural and rural infrastructure facilities modernly and synchronously; and increasing the quality of human resources and stepping up vocational training for farmers.

Attention will be also paid to increasing the sector’s competitiveness so as to raise national competitiveness, using science and technology to serve agricultural development with the focus on major export staples, and taking advantage of opportunities of the Fourth Industrial Revolution to develop hi-tech and organic agriculture.

The sector will effectively implement a project to develop 15,000 cooperatives and alliances of cooperatives during 2017-2020 and develop a cooperative model applying high technology in agricultural production and business. It strives to have 11,250 agricultural cooperatives which operate effectively by the end of 2019.

Quang Tri attracts strategic investors to wind power projects

The central province of Quang Tri has been luring strategic investors who have potential in capital and technology to involve in large-scale wind power projects.

After putting the 30MW Huong Linh 2 wind power plant with a total investment of 1.5 trillion VND (64.3 million USD) into operation in 2017, the Tan Hoan Cau Corporation Joint Stock Company has continued to invest in the Huong Hiep 1 wind power plant in Huong Hiep commune of the mountainous district of Dakrong. The 30MW project is expected to generate 126.3 million kWh of electricity per year. Built at a cost of about 1.55 trillion VND, the plant is scheduled to be completed in late 2020.

By January 2019, Quang Tri had one wind power plant put into operation, four under construction and dozens of others under survey.

According to Nguyen Duc Chinh, Chairman of the provincial People’s Committee, four wind power projects, each with a capacity of 30 MW, will become operational in the province in the time to come. 

Quang Tri boasts strength in attracting wind power investment. The locality has zoned off three wind power development areas on a total of over 6,700 hectares. The first area covers 2,789ha in Huong Son, Huong Lap and Huong Phung communes of Huong Hoa district, and the second spans 2,882ha in Huong Hoa district’s Huong Linh, Huong Lap and Huong Hiep communes.

Meanwhile, the third area covers 1,036ha in coastal areas of Gio Linh and Vinh Linh districts and Con Co island district. 

Chinh said that attracting investment in energy, including wind power, is one of the priorities of Quang Tri to turn the locality into an energy hub of the central region. To achieve this goal, the province has issued a number of policies to support businesses in terms of tax, insurance, contract and land.

Power boost after successful Vinh Tan 1 facility test

Helping to allay concerns of power shortages, a thermal power plant is to come into commercial operation ahead of schedule, featuring high-quality technology.

According to reports, no problems occurred during testing of the $1.75 billion Vinh Tan 1 build-operate-transfer (BOT) facility. The environmental protection systems were operating effectively in accordance with the design and emission parameters and dust content were reportedly lower than the specified threshold.

According to a representative of Vinh Tan 1, the successful test not only demonstrates the high quality of the project, but also creates a solid foundation for the company.

The 1,240MW project is the first thermal power plant in Vietnam to apply pulverised coal combustion technology. It is slated to play an important role in supplying power to the country’s southern region, as concerns over power supply shortages are growing due to the delays in the Song Hau 1 and Long Phu 1 thermal power plants.

The Vinh Tan venture’s investment proposal was approved by the Vietnamese government in 2006 and a BOT contract was signed in 2013. To keep up with contemporary technology trends and to mitigate causing harm to the environment, the joint venture had proposed the Ministry of Industry and Trade’s (MoIT) approval to shift into using advanced supercritical boiler technology which helps boost the plant’s power generation efficiency while reducing input fuel volume, as well as ash and cinder emission volumes annually.

As this is the first power plant in Vietnam to use supercritical boiler technology to burn anthracite coal in water, its success would lay the foundations for effective, economical and environmentally-friendly coal usage in the sector.

The high performance ratios of Vinh Tan 1 plant’s electrostatic precipitator system (99.5 per cent), seawater flue gas desulfurisation system (more than 90 per cent) and selective catalytic reduction system (over 68 per cent) ensure the plant will always meet all required environmental standards.

During facility operation, the environmental surveillance system will work around the clock and transmit surveillance data related to exhaust gas, cooling water and others to the Binh Thuan Department of Natural Resources and Environment for supervision.

Vinh Tan 1 is expected to provide more than 7.2 billion kWh per year, increasing the southern region’s electricity supply and helping reduce the region’s dependence on hydropower, especially during the dry season and droughts.

The country’s electricity demand is expected to see an increase of more than 10 per cent per annum in the coming years due to the rising population and accelerating economic growth.

Southern Vietnam, the country’s largest economic hub, which includes Ho Chi Minh City, faces a particularly critical situation with the current imbalance between the existing supply and the increasing demand for electricity. There is therefore urgent need for the development of power generation infrastructure in the region.

At a recent visit to southern provinces, Deputy Prime Minister Trinh Dinh Dung urged the acceleration of the pace of constructing thermal power plants and called on investors to upgrade transmission projects as a main task for the next few years.

Tran Viet Ngai, president of the Vietnam Energy Association, also expressed concerns about the power supply in the southern provinces. He called for synchronised solutions to minimise power shortages, including ensuring progress on schedule, operational safety, quality management of power projects, as well as environmental protection and effective power usage.

Da Nang port handles first cargo batch of 2019

On the morning of 1 January, Da Nang Port Joint Stock Company in the central coastal city of Da Nang handled its first ton of cargo during the first day of 2019.

A total of more than 500 TEUs were unloaded from the Singaporean Wanhai 265 cargo ship which docked at the port of Da Nang on New Year’s Day. Throughout 2018, the port of Da Nang handled over 8.65 million tons of cargo, up 7.7% compared to the previous year.

The port of Da Nang continued to retain its position as the leading container port in the central region and one of Vietnam’s largest ports. The port has also contributed to the city’s tourism development as it welcomed 109 cruise ships carrying 200,000 tourists and crew members onboard last year.

Nguyen Huu Sia, general director of Da Nang Port Joint Stock Company, said at present the port can handle up to 12 million tons of cargo. This has proved that Tien Sa port has become the major logistic hub of the central region.

Mr Sia also underlined the importance of building a new Lien Chieu cargo port and affirmed his desire to make drastic improvements to turn Tien Sa port into Da Nang’s tourism destination for cruise ships in the future.

Dak Nong to host investment promotion conference in 2019     

The Central Highlands province of Dak Nong will introduce its investment potential and opportunities to more than 800 delegates and businesses at a forthcoming investment  promotion conference here next month.

Despite its vast advantages in developing hi-tech farming, processing and mining industries, trade and service, ecological tourism and renewable energy, the province’s results in investment attraction remained modest, according the provincial Department of Planning and Investment director Luu Van Trung.

Trung told baodautu.vn that the province attracted only small-scale projects which have failed to make effective contributions to provincial socio-economic development and the improvement of local people’s lives.

The director described the upcoming event as a good chance for Dak Nong to provide foreign and domestic businesses with up-to-date information about provincial investment opportunities.

The event is slated to be held on January 14, 2019.

Statistics from the Foreign Investment Agency (FIA) revealed that the province lured only one foreign-invested project, worth US$48 million, in 2018. The latest addition has brought its total number of foreign-invested projects up to 12, capitalised at $145 million.

Currently, the province ranks 53rd among 64 localities in terms of foreign direct investment attraction, FIA’s data showed.

The unsatisfactory performance was due to the provincial’s disadvantageous geographic location (far from the country’s major economic hubs), poor transport system, insufficient infrastructure facilities and low-skilled personnel resources, enternews.vn cited head of the provincial Investment Promotion Centre Le Van Mot as saying.

In order to further improve the efficiency of attracting investment and creating a transparent investment environment, Dak Nong has issued preferential policies to encourage businesses to invest in the province, he said. Besides, the province would continue to promote administrative procedure reform with a focus on slashing time for fulfilling procedures and implementing a “one-stop shop” mechanism to better facilitate businesses.

Perfecting infrastructure facilities, improving the quality of human resources, solving difficulties facing investors in a timely manner and assisting them in accessing financial packages to develop their projects would also be included, he added. 

Start-ups urged to pay more attention to intellectual property     

Vietnamese start-ups are still not paying adequate attention to registering intellectual property, although this type of intangible asset plays a significant role in their future development.

Phan Ngan Son, Deputy Director of the National Office of Intellectual Property of Viet Nam (NOIP), said that entrepreneurship was developing rapidly but start-ups were currently focusing on raising funds, while little attention was being paid to registering their intellectual property.

Son said that intellectual property was of significant importance to socio-economic development – a valuable intangible asset to businesses, especially start-ups, which helps enhance competitiveness and create added value.

He cited statistics showing that several decades ago, most of the assets of US companies were tangible assets while intangible assets accounted for just below 20 per cent. In 2005, intangible assets of the S&P 500 firms accounted for 80 per cent of their total market value and 87 per cent in 2015.

It was necessary to enhance firms’ awareness of intellectual property, Son said.

According to Tran Le Hong from NOIP, several start-up firms had not identified the right time for registration of intellectual property, which might result in unexpected disputes.

Hong said that enhancing awareness of intellectual property should start from universities, but few universities were currently providing training on the subject.

Deputy principal of the University of Foreign Trade, Le Thi Thu Thuy, said that the Ministry of Science and Technology needed to enhance cooperation with the Ministry of Education and Training to put intellectual property onto the syllabus.

The Ministry of Science and Technology was implementing an intellectual property development programme between 2016-20, with a focus on providing support to start-ups and entrepreneurs.

The ministry’s report showed that there were around 3,000 start-ups in Viet Nam, nearly doubling the figure at the end of 2015.

Prime Minister Nguyen Xuan Phuc previously affirmed that the Government was committed to protecting intellectual property rights, innovations and ideas because these were valuable intangible assets for start-ups.

Phuc also urged ministries to provide support to start-ups and enhance their awareness of intellectual property to promote their development. 

Viet Nam should boost trade promotion for more exports to ASEAN     

Viet Nam should promote trade more overseas to bring in new customers and boost exports to the ASEAN region.

That was the message from Le Hoang Tai, deputy head of the Trade Promotion Department under the Ministry of Industry and Trade (MoIT).

He said the ministry would make it easier for local enterprises to enhance export of their products to the ASEAN market.

It would deploy measures to have more trade promotion programmes, improve product quality and remove difficulties for businesses.

Especially for Thai market, the ministry needs coordination from the Ministry of Agriculture and Rural Development (MARD) to negotiate with the Thai authorities to import of more fruits and vegetables because right now, only five types are allowed.

Each year, the ministry had cooperated with many domestic and foreign agencies to carry out trade promotion activities to the ASEAN market, he said.

There have been three groups of trade promotion activities carried out including organisation of delegations of Viet Nam’s enterprises joining international trade fairs and visiting regional markets for seeking business opportunities as well as arranged delegations of ASEAN’s businesses to Viet Nam to find partners.

The ministry is also planning to host trade fairs in Myanmar to show the country what goods are available in Viet Nam.

Nguyen Duong Kien, deputy head of the South East Asia, South Asia and Regional Cooperation Division under the ministry’s Asia and Africa Market Department, said Myanmar had just opened its market in recent years and was in need of high quality goods.

In the past, enterprises had concentrated on exporting to Bangkok, and ignored other areas of Thailand, Kien said.

Now, they should pay attention to those provinces and cities or they should take advantage of the East-West economic corridor to export Vietnamese goods to the region, including seafood, vegetables and fruits that have potential in this market.

Pham Tat Thang, head of MoIT’s Trade Research Institute, said local enterprises should focus further on improving quality and design of product as well as branding to meet the demand of ASEAN markets.

ASEAN is recognised as a major export market of Viet Nam. However, there are many key products that are not exported or are shipped in small quantities to other ASEAN countries such as seafood, wood products, food and steel, according to MoIT.

To increase this, Kien said local enterprises should study demand and standards of goods to have strategies in place on production and trading of suitable and good-quality products. In addition, the enterprises should pay attention to meet Halal standards because the market includes some Islamic countries.

Tran Thi Ha, from the Ministry of Finance’s Institute of Financial Strategy and Policy, agreed that Vietnamese companies should know more about regulations and technical standards or necessary conditions for export goods to Islamic countries because there are a lot of Muslims in Indonesia and Malaysia. This was a potential market that local businesses had ignored in the past.

The State needed to develop trade and investment promotion centres, Ha said, that would create necessary links at the national and regional levels with enterprises.

The State relevant agencies also needed to update new regulations and policies on importing goods of the regional countries, she said, so the local enterprises could have suitable changes in production and business plans to promote further their exports to regional markets.

This should include business strategies following demand of customers in each ASEAN country and team-up with distributors to boost consumption of Vietnamese goods.

According to Kien there is no distribution network of Vietnamese people in ASEAN countries but local enterprises can cooperate with distribution systems and retail stores of overseas Vietnamese people in each ASEAN markets to bring Vietnamese goods to local consumers in ASEAN.

One of the reasons why Vietnamese goods are difficult to enter the Thai market as well as ASEAN countries is that Viet Nam does not have access to large retailers there.

According to the MoIT, ASEAN is a key export market of Viet Nam, having fast growth in export value. Between 2010 until 2017, Viet Nam’s export value more than doubled from US$10.3 billion to $21.7 billion. Thailand, Indonesia, Malaysia and Singapore are the countries importing most goods.

Kien said ASEAN countries are close and have similarities in culture and consumption habits so Vietnamese enterprises could save money for market and product research as well as transport costs.

When the ASEAN Trade Agreement officially came into effect in 2010, most of the tariff lines were reduced to zero to create better conditions for Viet Nam to increase exports.

However, Kien said less than a third of businesses had taken advantage of the reductions. Viet Nam’s export goods to ASEAN had accounted for 2.2 per cent in Thailand, 2.7 per cent in Malaysia and 2 per cent in Indonesia.

He said local enterprises had not boosted their products to Thailand because they thought products won’t compete with Thai products in price and quality.

Meanwhile, some Thai groups had bought Vietnamese manufacturing enterprises to take advantage of free trade agreements (FTAs) and to dominate the Vietnamese market.

"Viet Nam market is also a transit point for Thai goods, with more than 90 per cent of Thai fruits exported to China via Viet Nam," Kien said.

Many Vietnamese key export products had entered Malaysia and Indonesia but the market share of those products was still small such as rice, seafood, coffee, iron and steel, processed foods and household goods. Even in neighbouring Laos, Vietnamese goods had accounted for only 7 per cent of the market.

Thua Thien-Hue to have one more five-star tourist complex, Vietnamese exporters advised to strictly follow origin regulations, Yinson extends stay in Vietnam for 6 more months, Viet Nam should boost trade promotion for more exports to ASEAN

Official trade of birds nests to China to increase exports     

Demand for bird’s nests in China is increasing, offering opportunities for Vietnamese firms, but new measures are needed to enable producers to export the product directly to China, rather than carrying it over the border, according to the Ministry of Agricultural and Rural Development.

Speaking at a HCM City forum about the bird nest sector last Friday, Deputy Minister Phung Duc Tien said the swift-bird breeding industry had been developing rapidly in the country, mostly in the south, but unofficial trade resulted in low value and profits.

More than 5,000 structures had been built to breed the birds in 36 provinces and cities, producing around 50 tonnes of nests a year.

But exports to China accounted for only 8 per cent via unofficial cross-border trade, he said.

Zhang Yaqin, president of Guangdong Bird’s Nest Industry Association, said China was the largest import market for edible bird’s nest.

Official imports of bird’s nests that have received certificates from the Chinese Academy of Inspection and Quarantine (CAIQ) went up from 81 tonnes in 2017 to 84 tonnes in the first 10 months of last year.

Luo Yining, vice chairman of China’s Medical Pharmaceutical Materials Association, and president of Southeast Yandu (Xiamen) Industrial Development Co., Ltd., said China in 2011 banned imports of bird’s nests of unclear origin because of a scandal involving the sale of fake bird’s nests.

In 2015, China lifted the ban, replacing it with strict rules aimed at improving safety and traceability.

Currently, Malaysia, Indonesia and Thailand have all completed legal procedures to export bird’s nests into China.

But Viet Nam still cannot export officially into China because of several reasons, including the lack of regulations on management and development of the bird’s nest industry, quality standards for the product, and export standards, according to Luo. Vietnamese bird’s nests are considered to have very good quality and suited for direct import to China.

But China currently applies very strict regulations on importing bird’s nests, especially unprocessed bird’s nest, including regulations that the import must go through ports with adequate equipment, and must be preliminary processed at enterprises designated by the General Administration of Customs of China.

He said his company, which specialises in processing raw bird’s nests and was appointed by the General Administration of Customs, wanted to cooperate with Vietnamese firms in conducting quarantine bird’s nest before export to China.

Tien stressed that his ministry would support the development of the bird nest industry and co-operation with China to directly export bird’s nests to the market.

The recently adopted Law on Animal Husbandry includes a provision on the management of the bird’s nest industry, an important foundation for the industry to meet the requirements to export to China and other markets in the coming time, he said.

At the forum, the Viet Nam Farms and Agricultural Enterprises Association and Yen Quan Company signed strategic cooperation agreements with China’s Medical Pharmaceutical Materials Association and Southeast Yandu to promote direct exports of Vietnamese bird’s nests to China.

Organised by the Vietnamese Bird’s Nest Farms Association, the forum saw the participation of leaders of 10 Chinese companies and 30 Vietnamese bird’s nest farms.

Hà Nội electricity strives to supply enough power

Thua Thien-Hue to have one more five-star tourist complex, Vietnamese exporters advised to strictly follow origin regulations, Yinson extends stay in Vietnam for 6 more months, Viet Nam should boost trade promotion for more exports to ASEAN

The Hà Nội Electricity Corporation (EVN HANOI) is speeding up the progress of major works to achieve the city’s electricity development plan in the 2016-2025 period.

EVN HANOI has also invested in upgrading and building power grid infrastructure in suburban areas, in order to enhance the quality of electricity supply for residents and production.

Decision No 711/ QD-UBND dated February 9, 2017, of the Hà Nội City People’s Committee approved the detailed planning for development of medium-voltage electrical network in 2016-2025. According to this plan, the demand for electricity will increase from 1,900 kWh/person/year in 2015 to 2,839 kWh/person/year in 2020 and 4,109kWh/person/year in 2025.

Deputy General Director of EVN HANOI, Nguyễn Anh Dũng, said it had implemented a number of big-investment works since 2016.

According to Dũng, by 2020, EVN HANOI plans to invest VNĐ20 trillion in completing 220kV and 110kV transformer stations, transmission lines and medium and low voltage power grids.

In 2018 alone, units of the corporation completed eight power supply works to better supply the city’s rural residents.

The increasing demand for electricity, lack of transformer stations in suburban areas, and unsynchronised line infrastructure are three main challenges Hà Nội’s electricity sector faces over coming years.

According to Trần Xuân Hùng, Head of the Planning Department of EVN HANOI, summer is still the most stressful period for the electricity industry.

For example, this year, out of 21 days during the prolonged hot weather (from June 4 to 24), 16 days saw power consumption reach over 60 million kWh/day, an increase of several times against a normal day.

During the four hottest days of July, power consumption reached over 70 million kWh/day.

The city’s electricity industry faces other difficulties, including construction sites, the process of approval for ODA (Official Development Assistance) invested works and compensation for site clearance, that have slowed down the progress of projects.

About 40km from the city centre, Phú Xuyên district’s economy remains under-developed despite its potential for high-tech agriculture, industry and tourism. One of the reasons is the lack of a complete power grid infrastructure.

Nguyễn Văn Thảo, Director of An Gia Trading and Construction Engineering Joint-Stock Company (in Phú Xuyên District), said the company had been sharing power with surrounding residential quarters, so the power capacity was very weak.

“It has greatly influenced the process of production and profits of the company,” he said.

Nguyễn Tạ Tấn, a resident living in Phú Xuyên District’s Mỹ Lâm village, said that local people shared a 110kV transformer station with Thường Tín district for a long time.

“The demand is increasing, but the ability to supply electricity for both production and living in the area is limited,” he said.

According to EVN HANOI, just this district among 29 districts (12 inner districts and 17 suburban districts) in the city has no 110kV transformer station to serve the needs of local socio-economic development.

In the capital’s construction plan, the district is defined as a satellite urban area with a series of industrial parks and urban areas. Therefore, building a new transformer station here will be important, said Trần Xuân Hùng. 

Lotte Card dreams big for consumer financing business in Vietnam

During the first half of this year, Lotte Finance Vietnam will focus on rolling out customized loan products for Lotte affiliate employees and other Korean workers.

Lotte Card has set ambitious targets for its consumer financing business in Vietnam after becoming the first South Korean credit card operator to offer the services in the Southeast Asian country, Korea Herald reported.

“Our vision is to become the most popular finance company here by providing users with convenient payment processes that may be used anywhere in the country,” said said Lotte Card CEO Kim Chang-kwon at the launch ceremony of Lotte Finance Vietnam last month.

Lotte Card, South Korea’s fifth-largest credit card company in terms of net assets, established its Vietnam office in 2009. Since then, the company has sought a more active role in Vietnam’s growing financial market. In March 2018, the company bought out Vietnamese consumer financing and credit card firm TechcomFinance, a subsidiary of Vietnam Technological and Commercial Joint Stock Bank (Techcombank).

Before the acquisition, TechcomFinance held credit card, installment finance, and consumer lending licenses in the country.

During the first half of this year, Lotte Finance Vietnam will focus on rolling out customized loan products for Lotte affiliate employees and other Korean workers. Once the local sales network takes shape, the company will expand its business to other regions through partnership agreements with local companies, according to the company’s representatives.

“Vietnam is currently in the process of converting the conventional cash payment (system) into a new non-cash payment system,” said CEO Kim Chang-kwon.

Yinson extends stay in Vietnam for 6 more months

The Lam Son FPSO is capable of producing 15,000-20,000 barrels of oil per day (bopd) and has a storage capacity of up to 650,000 barrels of oil.

Malaysia’s Yinson, through its Vietnam joint venture PTSC AP, has entered into an addendum to the interim contract with Vietnam’s PTSC to extend the charter of the FPSO PTSC Lam Son for the petroleum operations within the Lam Son field, offshore Vietnam for another six months, according to Offshore Energy Today.

The FPSO charter, which was set to expire on December 31, will keep the unit working for PetroVietnam Technical Services Corporation (PTSC) until June 30, 2019.

The Lam Son FPSO is capable of producing 15,000-20,000 barrels of oil per day (bopd) and has a storage capacity of up to 650,000 barrels of oil.

PTSC AP is a joint venture company owned by Yinson and PetroVietnam Technical Services Corporation (PTSC) each holding 49% and 51% interest in it, respectively.

According to Yinson, the value of the interim contract is approximately US$27.3 million, based on the December 31, 2018, expiration date.

Vietnamese exporters advised to strictly follow origin regulations

Thua Thien-Hue to have one more five-star tourist complex, Vietnamese exporters advised to strictly follow origin regulations, Yinson extends stay in Vietnam for 6 more months, Viet Nam should boost trade promotion for more exports to ASEAN

The Ministry of Industry and Trade (MoIT) has advised Vietnamese exporters to strictly abide by regulations related to products’ origin as many members of the World Trade Organisation (WTO) have strengthened trade safeguard tools to protect their domestic industries.

According to the Trade Remedies Authorities of Vietnam under the MoIT, in nearly six months from May to October of 2018, the world’s 20 largest advanced and emerging economies (G20) launched 85 trade defence cases, including 63 anti-dumping cases, 19 anti-subsidy cases and 3 self-defence cases.

To ensure the effectiveness of trade remedies, the countries have kept a close eye on imports to uncover fraud.

Investigations into trade remedy avoidance against Vietnamese enterprises have also increased.

As of December 2018, 19 investigations were launched on export products from Vietnam, mostly steel, fibre, household appliances and electronics.

Vietnamese products facing high risks of investigation are plywood exported to the US as well as truck and bus tyres to the European Union.  

In that context, the MoIT and the Vietnam Chamber of Commerce and Industry (VCCI) have sought to tighten the issuance of origin certificates, with special attention on products with high risk of fake Vietnamese origin certificates being used.

The MoIT has also work with the Ministry of Finance to watch for abnormal signs in exports to some markets to avoiding damaging Vietnam’s prestige and the interests of exporters.

The MoIT also asked for businesses’ help in monitoring the market and providing information in violation cases.

Thua Thien-Hue to have one more five-star tourist complex

Construction of a 368 million USD tourist complex has started at Chan May – Lang Co economic zone in Phu Loc district, the central province of Thua Thien – Hue, with its first phase slated to become operational at the end of 2019. 

The Minh Vien – Lang Co complex will house hotels, a resort, a conference hall and support facilities all at five-star standards on 102 ha of land. 

The entire complex is scheduled to be completed in the first quarter of 2024. 

Chairman of the provincial People’s Committee Phan Ngoc Tho said the new tourism site is expected to help attract more visitors to the Lang Co Bay and Thua Thien – Hue province. 

The Chan May – Lang Co economic zone has so far attracted 43 investment projects with total capital of nearly 40 trillion VND (1.72 billion USD). In 2018 alone, the zone’s management board granted investment licences to 18 projects operating in industry, tourism, industrial park infrastructure, non-tariff areas and urban areas with 5 trillion VND in total capital.  

Several big foreign investors have come to the zone to seek investment opportunities, including J.W from the Republic of Korea which is interested in infrastructure and automobile part production. The Sunjin group, also from the RoK, in coordination with the Phuong Trang group, is researching investment in bus assembly, gasoline storage and distribution and a resort in Lap An lagoon.

Ba Ria-Vung Tau targets 9.11 percent growth in industrial production

The southern province of Ba Ria-Vung Tau will strive for a growth of 9.11 percent in industrial production in 2019, according to the provincial People’s Committee. 

In 2018, the local industrial production value, excluding crude oil and gas, surpassed 252 trillion VND (10.8 billion USD), a rise of 8.72 percent year-on-year. The growth is attributable to higher steel prices compared to 2017 and additional 19 industrial projects which began operation this year.

In the year, the province’s industrial staples recorded increases ranging from 0.82 percent to 46.49 percent.

The management board of the provincial industrial parks said infrastructure and investment climate of the province has been strongly improved, thus drawing more investors. Businesses spent more than 1.89 trillion VND (81.27 million USD) on industrial parks’ infrastructure this year.

Besides, local industrial parks attracted 54 projects in 2018 with registered capital totalling 2.2 billion USD in various fields, including liquefied gas, zinc bullion bar and screw production, plastics and automobile accessories, among others.

To date, about 2,680 ha of provincial industrial parks have been occupied, accounting for nearly 47 percent of the total area. In 2018, local firms created jobs for around 2,600 workers, raising total number of those who work in industrial parks to more than 58,000.

Binh Dinh works to make it more popular among tourists

The central province of Binh Dinh welcomed more than 4 million tourists in 2018, up 10.6 percent from last year, and it is still making efforts to become a destination of more holiday makers in the time ahead.

Among visitors to Binh Dinh, there were over 286,400 foreigners and 3.8 million domestic holiday makers, respectively rising by 8.3 percent and 10.8 percent.

The province recorded a surge of almost 55 percent in tourism revenue to reach 3.3 trillion VND (142.1 million USD), according to Director of the provincial Tourism Department Nguyen Van Dung.

He attributed the tourist number increase partly to the improved infrastructure and services at accommodation facilities. Additionally, many two- or three-star hotels and resorts have been put into operation this year.

Binh Dinh is stepping up attracting investment in tourism infrastructure, the official said, noting that provincial authorities have given permission to 26 tourism projects, including nine hotels, 15 tourist areas, one safari park and one soft skill training centre.

Some major projects have become operational, including the Nhon Ly resort, villa and entertainment complex of the FLC Group; the Trung Luong camping site and Crown Retreat Quy Nhon Resort of the Trung Hoi Tourism Co. Ltd; and Huong Viet Hotel.

They have given a facelift to Binh Dinh and promoted its standing in the tourism industry of Vietnam, he added.

The province aims to welcome 5.1 million tourist arrivals in 2019, up 25 percent from this year, and earn 6.5 trillion VND from the industry.

To that end, promotion activities will be enhanced while priorities will be given to bettering tourism infrastructure and services, Dung noted, adding that Binh Dinh is also working to boost community-based tourism in some coastal areas of Quy Nhon city and develop human resources in the sector.

Binh Dinh is rich in cultural and historical traditions and boasts many scenic sites along its 134km-long coast.

Notably, Quy Nhon city has diverse terrain including plain land, hills, mountains, rivers, lakes, sea and islands. Along with relic sites and beautiful natural landscapes, visitors to this city can also explore traditional arts and festivals, craft villages, the Binh Dinh martial art, as well as local food. 

Thai Nguyen aims to attract more investments

The northern mountainous province of Thai Nguyen has attracted 62 projects with total registered capital of about 113.5 trillion VND (4.8 billion USD) since it hosted the investment  promotion conference last July. 

The locality is now home to 882 valid investment projects, including 753 projects valued at around 140 trillion VND (6.02 billion USD) run by domestic investors and 129 foreign-invested projects worth some 7.2 billion USD. 

After Samsung Group of the Republic of Korea (RoK) landed in Thai Nguyen in 2013, the province has welcomed a  new wave of investment, including those from big groups like Vingroup, T&T and FLC. 

The investment inflows have helped spur local socio-economic development, thus helping Thai Nguyen advance quickly on the road to become an industrialised province. 

Hoang Thai Cuong, Director of the provincial Department of Planning and Investment, said Thai Nguyen has launched specific action plans and assigned tasks to departments and localities in efforts to attract more investments. 

The Department of Planning and Investment has focused on administrative reform, helping reduce time and cost on administrative procedures of investors and businesses, he added.  

Thai Nguyen is committed to creating a favourable business environment for businesses, and providing optimal support to firms that want to expand operation, change production and business plans, and gain investment licences. 

The province has also assisted enterprises in labour training and electricity supply, and land clearance while offering them tax incentives. 

According to Nhu Van Tam, Vice Chairman of the provincial People’s Committee, Thai Nguyen is speeding up the building of a public service centre and has issued a resolution on improving the local business environment and provincial competitiveness index. 

It has also developed mechanisms in support of investment in infrastructure in industrial clusters, amended and supplemented policies on investment in agriculture and rural areas, and facilitated land clearance for major projects, especially high-tech, smart and environmental-friendly ones, he said.

Thua Thien-Hue to have one more five-star tourist complex, Vietnamese exporters advised to strictly follow origin regulations, Yinson extends stay in Vietnam for 6 more months, Viet Nam should boost trade promotion for more exports to ASEAN

 

Source: VNN - Bridge

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