Creating favourable conditions for logistics development
After two years of implementing the Prime Minister’s Decision 200/QĐ-TTg on the action plan for improving the competitiveness and development of Vietnam’s logistics by 2025 the logistics industry in general and the capacity of logistics enterprises have made significant progress.
According to the Vietnam Association of Logistics Service Enterprises (VLA), along with the GDP growth rate, industrial production value, export and import turnover or value of retail sales and consumer services, Vietnams’ logistics service has reached a relatively high growth rate over recent time, rising from 12% to 14%.
In addition, logistics infrastructure has also been improved over the past two years. The number of logistics centres, distribution centres, dry ports and bonded warehouses are increasing and they are also being upgraded technically. Many logistics centres have applied information technology in goods management, tracking and origin tracing. Some centres are even fully automated. On the other hand, the number of schools, institutes and foundations participating in logistics training is increasing, the training programmes have been upgraded towards professionalism, in line with reality, meanwhile teaching staff has increased in number and improved in level.
However, besides the achieved results, the development of the logistics industry still has some limitations. Specifically, logistics activities of Vietnamese enterprises have achieved some initial results, but the logistics industry has not fully exploited the geotechnical advantages and the achieved results are not commensurate with the potential of each locality. In addition, the infrastructure for logistics activities and the connection between commercial infrastructure, transport infrastructure, information technology infrastructure across the country and in the region are not high.
Additionally, the weakness of Vietnamese logistics enterprises is the cost of services is still high but the quality in providing some services is inadequate in the context of fierce competition in Vietnamese market. Most notably, although the Government and ministries, branches and localities have made efforts over the past two years to build a legal framework to create a clear business environment for logistics activities, the implementation of regulations in practice still face many difficulties.
Some regulations are still overlapping, which is considered to be the main cause giving rise to many inappropriate administrative procedures and specialised inspections. In addition, the coordination of research and planning of ministries, branches and localities has not really promoted its effectiveness; some provinces and cities have potential but commercial and transport infrastructure have not been adequately invested in so logistics activities have not developed adequately.
Experts recommend that in order to develop logistics industry more favourably in the coming time, it is first of all necessary to have a breakthrough in the renovation of state management, innovation of organisation, operation and mechanism and policy on investing in transport infrastructure, commercial infrastructure and information technology infrastructure in accordance with practical requirements. In particular, it is necessary to review the planning and construction of logistics centres to effectively connect with seaport systems, domestic roads and regions to create convenient and highly efficient goods transportation routes.
Furthermore, it is necessary to have policies to encourage socialisation in investment. In the immediate future, it is especially necessary to prioritise the allocation of central and local budget funding for key construction items in the region, which have economic geographic advantages to develop logistics industry. In addition, it is advisable to open up and develop markets for logistics, creating conditions for Vietnamese logistics service enterprises to catch up with the development level of the world. Logistics enterprises are enterprises that have significant contact with foreign countries, gaining a lot of experience regarding integration and competition, so the enterprises should apply more proactive and methodical development strategies to expand the scope and scale of operation to provide high quality service with reasonable costs for customers.
OCB borrows $100 million from IFC
OCB plans to use an IFC loan to finance lending to smaller businesses and promote innovative finance to improve supply chain linkages in Vietnam.
IFC, a member of the World Bank Group, will provide a loan of $100 million to Vietnam’s Orient Commercial Joint Stock Bank (OCB). The IFC-led financing package, combined with advisory services, will boost lending to small- and medium-sized enterprises (SMEs), especially women-owned or -led ones, and will promote supply chain financing in Vietnam.
Making up 98 per cent of Vietnam’s enterprises, SMEs are the primary engine of job creation in Vietnam, employing more than half of the labour force and contributing about 40 per cent to the gross domestic product. Yet around 60 per cent of SMEs have unmet financing needs – a $21 billion financing gap. Access to finance is therefore key to unlock the potential of SMEs.
The long-term financing package comprises of $57.16 million from IFC’s own account and $42.84 million from the multi-investor Managed Co-Lending Portfolio Programme (MCPP) managed by IFC.
Notably, OCB aims to use at least 50 per cent of the loan proceeds to finance Women SMEs, with support from the Women Entrepreneurs Finance Initiative (We-Fi). “OCB sees SMEs as an important target segment to realise its strategy to become a leading retail and SME bank in Vietnam. IFC’s financing package helps reinforce the bank’s continued commitment to expanding lending to this segment,” said Nguyen Dinh Tung, OCB chief executive officer.
In addition to funding, in partnership with the Swiss State Secretariat for Economic Affairs (SECO) and IFC, OCB will receive assistance with developing its supply chain finance (SCF) business.
IFC and OCB’s partnership started in 2011 with a trade finance guarantee of $20 million under IFC’s Global Trade Finance Programme. IFC provided additional financing with a $25 million loan in March 2012 and a revolving short-term loan of $10 million. This partnership allows the bank to increase financing to more SMEs and women-owned businesses and help more local companies increase trade and create employment opportunities.
Pork price forecast to drop sharply
Pork prices on the local market are dropping by some VND5,000-VND8,000 per kilogram versus those recorded in late February, due to the spread of African Swine Fever (ASF). The price is forecast to continue falling in the coming time.
Data from the Domestic Market Department under the Ministry of Industry and Trade shows that the live pig price hovers between VND34,000 and VND36,000 per kilogram in the northern region, where multiple provinces were hit by ASF.
Localities in the Central and Central Highlands regions saw the pig price ranging between VND32,000 and VND41,000. Meanwhile, the pig price in the south remains relatively higher than in other regions, at VND39,000 to VND45,000 per kilogram.
With the complicated development of ASF, the pig price may fall even further in the coming days, remarked a representative of the Domestic Market Department.
A sudden rise in the pork supply was recorded at wholesale markets as many farming households rushed to sell their pigs to avoid being hit by ASF. In addition, the demand for pork in schools and industrial zones has fallen sharply, resulting in the pig price fall.
At a regional symposium on pig farming, held on March 27 in Hanoi, Fred Unger, an expert with the Centre for International Migration and Development, at the International Livestock Research Institute, noted that ASF and the blue-ear pig disease have prompted many locals to boycott pork products.
Also, the reduction in pork consumption among the locals was ascribed to the abnormally high number of children testing positive for porcine tapeworms in Bac Ninh Province, stated the expert. ASF does not infect humans, so the locals do not have to worry about eating pork at present, the expert stressed.
However, the local livestock sector has been negatively affected by the spread of ASF as no vaccines against the disease have been successfully produced to date. It also faces many obstacles including low productivity and unstable product quality, he said.
The tropical climate and household farming near residential areas, which failed to meet hygiene standards, are considered the causes of the disease’s outbreak.
The large number of culled pigs accounts for a mere 0.1% of the country’s total pig supply, according to the Ministry of Agriculture and Rural Development. Data from the General Statistics Office showed that the pig farming business is seeing healthy growth, with the total number of pigs raised in the country last month seeing a 3% year-on-year increase.
The Domestic Market Department confirmed that the domestic supply of pigs still meets demand for pork consumption among the local people, as well as for processing activities.
More local firms enter best workplace ranking in Vietnam
Foreign-invested firms dominate rankings of best workplaces, but Vietnamese peers are more conspicuous in the top 20.
Vietnamese dairy giant Vinamilk remained the best company to work in the country for the second year in a row as per the 2018 “Best Places to Work” survey, which listed the 100 best workplaces in Vietnam.
Vinamilk was followed by Vietcombank, Nestle, Samsung Vina Electronics and Vietnamese telco giant Viettel. This continued Vietnamese firms’ dominance of the top five, while the number of local firms in the top 20 went up from six the previous year to eight last year.
The survey results were released on March 27 by local career network service Anphabe and U.S.-based market research firm Nielsen.
In its sixth year, the survey was the largest ever conducted, collecting feedback from a pool of 75,481 respondents working in 24 different sectors. Rankings were based on salary levels, bonuses, welfare and work-life balance for employees.
Once again, multinational giant Unilever failed to show up in the top 100 listing.(See the complete top 100 in 2018 here)
Many Vietnamese firms on the list also improved their rankings last year, including Techcombank (16th to 9th), Vietnam’s largest private conglomerate Vingroup (31st to 23rd), PNJ (51st to 27th), and budget carrier Vietjet Air (70th to 62nd).
Overall, there were 27 local firms in the top 100 list.
FDI inflows see on-quarter peak
Inflows of registered foreign direct investment surpassed US$10 billion during the first quarter of this year, reaching peak levels over the last three years, according to a source from the Ministry of Planning and Investment (MPI).
FDI disbursement was estimated at US$4.12 billion in the first quarter of 2019, up 6.2 per cent on year.
Vietnam Economic Times cited data from the MPI Foreign Investment Agency as showing that the registered, additional, and share capital of foreign investors amounted to US$10.8 billion, up 86.2 per cent on year. Previously, foreign direct investment (FDI) inflows during the first quarter of previous years stood at lower levels, with only US$4.03 billion in 2016, US$7.71 billion in 2017, and US$5.8 billion in 2018.
As many as 785 new projects were granted investment licenses in the first quarter of the year, with total registered capital of US$3.82 billion, a year on year rise of 80.1 per cent.
The three-month period saw nearly 280 projects add a combined US$1.3 billion to their total registered capital, or 72.5 per cent of the figure seen over the corresponding period last year. One project recorded the largest single injection of registered capital with an additional US$110 million.
FDI disbursement was estimated at US$4.12 billion in the first quarter of 2019, up 6.2 per cent on year.
The FDI sector earned a total of US$41.45 billion from exports, including crude oil, representing 70.8 per cent of the country’s total export turnover. The figure edged up 2.7 per cent on year.
Manufacturing and processing industries topped the attraction of FDI with US$8.4 billion in the three-month period, or 77.7 per cent of the total FDI registered.
They were followed by the real estate sector with US$778.2 million, equal to 7.2 per cent of the total FDI in the reviewed period. Meanwhile, US$383.2 million was registered in the science and technology sector.
Hong Kong (China), with US$4.4 billion in FDI, was ranked first among foreign investors in Vietnam in the first quarter of this year, accounting for 40.7 per cent of the total.
Following Hong Kong (China) were Singapore with US$1.46 billion (13.5 per cent of the total) and the Republic of Korea, with US$1.3 billion (12.2 per cent).
Hanoi was the largest FDI receiver across the country, with an influx of US$4.15 billion in the first three months of this year, or 38.4 per cent of the total.
The capital city was followed by Ho Chi Minh City which lured US$1.57 billion in registered FDI or 14.5 per cent of the total, and Binh Duong with US$625 million or 5.8 per cent of the total.
FPT Retail forecasts 2019 profit up 20 per cent
FRT held its Annual General Meeting (AGM) of Shareholders in HCM City on Wednesday. — Photo vietnambiz.vn
FPT Digital Retail JSC (FRT) is aiming for VNĐ17.8 trillion (US$76 million) and VNĐ418 billion in net revenue and post-tax profit this year, up 16 per cent and 20 per cent year-on-year, respectively.
The information was released during the company’s annual shareholders’ meeting held in HCM City on Wednesday.
The company, under the umbrella of leading technology, outsourcing and IT services group FPT Corporation, operates in the field of retail trade. Major products include electronics and appliances, computers and software.
At the meeting, shareholders approved the plan to pay 2018 dividends at a rate of 25 per cent, of which 10 per cent will be paid in cash and 15 per cent in shares.
In 2018, the company’s after-tax profit reached VNĐ348 billion. It planned to spend VNĐ170 billion on dividends.
The payment is expected to take place in the second or third quarter of this year. After the share issuance, its charter capital will increase to VNĐ790 billion ($34 million).
In 2019, FRT’s board of directors plans to pay dividends in cash at a rate of no less than 10 per cent.
Nguyễn Bạch Điệp, chairman and CEO of FRT, said the company planned to expand its Long Châu pharmacy chain to 70 stores to increase its presence nationwide.
Although the number of Long Châu pharmacies was still small, the monthly revenue from each store was around VNĐ3 billion, much higher than the revenue from normal stores that brought in VNĐ300-400 million per month, Diệp said.
FRT’s pharmaceutical retail segment is divided into three channels, via hospitals, clinics and pharmacies. The company is aiming to hold 30 per cent market share of the country’s pharmaceutical retail industry via pharmacies in the next three to four years.
Under this plan, the pharmaceutical retail segment is expected to contribute about 40 per cent of FRT’s revenue, estimated at VNĐ10 trillion.
In the future, the company will also focus on developing logistical services, increasing selling points and improving personnel training.
This year, FRT also aims to collect VNĐ1 trillion in revenue from sales of electronic accessories, an increase of VNĐ350 billion compared to last year.
At the meeting, shareholders also approved a plan to issue 680,000 shares under the Employee Stock Ownership Plan (ESOP) programme at a price of VNĐ10,000 per share.
In the last six years, FRT has accepted installment payments for the sale of its products. Revenue from this accounts for 32 per cent of the total.
FRT shares have dropped 33 per cent this year, from VNĐ71,600 per share on January 2 to end Wednesday at VNĐ47,000 per share.
Explaining the sharp decline, FRT’s board of directors said the company had been trading on the market only bfor less than a year so they had little experience in stock prices.
Stock prices fluctuated due to market movement, they said, adding that the price was far different compared to the real value of the company’s shares. The company said it would hire consultants to take action to improve this issue for shareholders.
Sustainable coffee production project benefits Lam Dong farmers
The Vietnam Sustainable Agriculture Transformation project (VnSAT) has proven effective in the Central Highlands province of Lam Dong, helping enhance coffee production effectiveness in the locality and change local farmers’ awareness of sustainable coffee farming.
Pham Trung Dung, Director of the project’s management board said the project focuses on training coffee production techniques to local farmers, and building sustainable cultivation and production models
Local farmers have been supported in building infrastructure facilities and purchasing equipment for cultivation and production.
In the last three years, training courses on cultivation technique were offered to some 10,000 farmer households in Lam Dong.
Hundreds of sustainable re-planting and production models and water-saving irrigation models for coffee were formed.
Attention was also paid to developing cooperatives, aiming to promote production and consumption links.
So far, the project has provided more than 33 billion VND (over 1.4 million USD) for developing infrastructure facilities, rural roads and storehouses in Lam Ha and Di Linh districts, as well as and Loc Phat and Loc Thanh communes in Bao Loc city.
VnSAT’s management board said it will continue to implement sub-projects on infrastructure, production device and water-saving irrigation in Bao Lam, Lam Ha and Di Linh districts, and Bao Loc city.
The sustainable coffee cultivation area in the Central Highlands region reached 22,000 ha, exceeding the set target, with profit growth 4.5 percent.
VnSAT began in December in 2015 in eight Mekong Delta localities: An Giang, Dong Thap, Hau Giang, Kien Giang, Long An, Soc Trang and Tien Giang, and Can Tho; and the five Central Highlands provinces of Dak Lak, Dak Nong, Gia Lai, Kon Tum and Lam Dong.
The project is expected to help increase the number of agricultural products with export value worth more than 1 billion USD.
In the Central Highlands region, the VnSAT project provided advanced technologies to about 63,000 farmers for use on 69,000 ha.
The total added value is expected to be around 48 million USD to 50 million USD for each year from 2015 to 2020.
Mekong Delta steps up tourism development
An aerial view of Cai Rang Floating Market in the Mekong Delta city of Can Tho
This year, the Mekong Delta region will focus on enhancing tourism promotion and connectivity in the north, central and Central Highlands regions, as well as foreign markets in Southeast and East Asia.
Tran Viet Cuong, Chairman of the Mekong Delta Tourism Association, made the statement at a tourism promotion conference for the region held in Hanoi on March 27.
As part of the Vietnam International Travel Mart (VITM) 2019, which began the same day, the conference aimed to introduce the region’ natural resources, tourism products and activities.
It also called for partnerships in human resources training and investment in tourism development.
Spanning 40,548 km2, the Mekong Delta comprises of Can Tho city and the provinces of An Giang, Bac Lieu, Ben Tre, Ca Mau, Dong Thap, Hau Giang, Kien Giang, Long An, Soc Trang, Tien Giang, Tra Vinh and Vinh Long.
The region is renowned for eco, spiritual, cultural-historical, community-based agricultural and sea-island tourism, with highlights including tours to Cai Rang floating market, Temple of Ba Chua Xu Nui Sam, and Ca Mau Cape, don ca tai tu music and Ngo boat racing. The 13 localities are working to develop meetings, incentives, conferences and exhibitions (MICE) tourism.
The number of local hotel facilities amount to 53,000, while the tourism workforce consists of 77,000 labourers.
RedDoorz hotel chain to expand across Viet Nam
A RedDoorz hotel in HCM City. The hotel chain announces plans to expand to Ha Noi and two other cities in Viet Nam. — File Photo
RedDoorz, an international affordable hotel chain operating in Southeast Asia, aims to expand to three more cities in Viet Nam by the end of this year.
The chain came to the country last October, and is currently the biggest in HCM City with over 40 hotels.
It aims to replicate that status in the country with over 200 hotels in at least four cities, its current targets for expansion being Ha Noi, Da Nang and Vung Tau.
Amit Saberwal, founder and CEO, said that Viet Nam has high online usage and e-commerce rates and a young population and is a dynamic market.
It works with small private hotels (3 stars and below), providing them with technologies and staff training to improve their incomes, and offering bookings on its website, he said.
Launched in 2015 RedDoorz has over 680 hotels in over 40 cites in four Southeast Asian countries.
MB Securities sees profit up 78 per cent
MBS held its AGM of shareholders on Tuesday in Ha Noi. — Photo ndh.vn
MB Securities Corp’s (MBS) hopes to earn revenue and pre-tax profit of VND1.17 trillion (US$50 million) and VND360 billion in 2019, up by 11 per cent and 78 per cent year-on-year, respectively.
The information was released during the Annual General Meeting (AGM) of Shareholders of the company on Tuesday in Ha Noi.
Last year, MBS reported revenue of more than VND1.05 trillion, up 24.5 per cent compared to 2017 and exceeding 19.6 per cent of the yearly plan.
Of the estimate, revenue from brokerage activities, including financial service revenue, exceeded VND708 billion, accounting for 67 per cent. Revenue from investment banking services reached VND88.7 billion, 8.4 per cent of total revenue.
Pre-tax profit in 2018 was VND202.7 billion, 8.4 times higher than the previous year and exceeding 26.7 per cent of the yearly plan.
This year, MBS has set ambitious goals but the management board has a rather cautious view on the market in 2019.
The company plans to carry out three share issuances to increase its charter capital from VND1.2 trillion to VND1.74 trillion, including offering 35 million shares to existing shareholders, five million shares under Employee Stock Ownership Plans (ESOP) programme and dividend payments at a rate of 10 per cent.
Vu Thi Hai Phuong, Chief of Supervisory Board of Military Commercial Joint Stock Bank, the major shareholder of MBS, praised the company for completing its restructuring process in 2018, seven years after beginning.
She said the company needed to make efforts to complete and exceed the 2019 goals.
At the meeting, MBS’s board of directors said that seeking partners had been the company’s mission in recent years. In the past five years, many investors from Japan and South Korea were interested in the financial investment segments of the company, especially securities.
MBS’s plan to move its shares from the Ha Noi Stock Exchange to the Ho Chi Minh Stock Exchange (HOSE) would bring benefits, the company said.
When MBS trades on a floor with higher standards, it will attract more professional investors, MBS leaders said.
Last year, the company paid dividends in cash at a rate of 5 per cent but the company will pay in shares this year at a rate of 10 per cent.
Explaining this, the board of directors said MBS was currently in a strong development phase, needing to invest, to mobilise capital, so it is not reasonable to allocate money at this time.
The company is focusing on providing investment loans and advisory services for 70 to 100 leading companies in the sectors of banking, insurance, securities, real estate, construction, construction materials, retail, manufacturing, power distribution and export.
Long An Province seeks funds for transport projects
The HCM City- Trung Lương expressway through Long An Province.
The Mekong Delta province of Long An has asked the Ministry of Transport to provide funds for transport infrastructure projects including N1, N2, and No.62 national route projects.
The proposals were made at a meeting held by the Ministry of Transport and the provincial authority on Monday about transport management and infrastructure in the provincial area.
It also asked for approval for an expressway project through HCM City-Long An-Tiền Giang Province, and to allow the province to use land along Belt Ring Road No.2 and No.3 project to call for investment.
In addition, the province asked the ministry to dredge Soài Rạp River to allow big vessels to enter the province’s port.
At the meeting, Minister of Transport Nguyễn Văn Thể considered all the proposals of the province and directed units to prioritize research and funding for N1, N2, and No.62 national route projects.
In addition, the ministry has directed units to carefully inspect and propose investment for projects such as Belt Ring Road No.2 and No.3, and HCM City- Long An- Tiền Giang expressway, which play an important role in socio-economic development of the province and nearby cities.
According to the province’s report, the waterway and road transport system of the province has contributed to the socio-economic development of the province and the Cửu Long (Mekong) Delta region.
However, the transport system in the area still has many shortcomings.
At the meeting, the province’s authority said the section of the national road project passing through Long An was behind schedule, and some roads were in poor condtion.
In addition, the intersections which connect the province and HCM City on National Route No.1 and No.50 were small and led to traffic jams.
These shortcomings hindered the socio-economic development of the provinces and cities in the region.
Paper industry needs plans to sprout
The paper industry contributes about 1.5 percent to the country’s gross domestic product. However, the sector has not developed a growth strategy. This lack of development plans has led to imbalanced growth in the sector’s production structure and capacity.
Vietnam has about 300 enterprises working in pulp and paper industry, supplying 4.5 million tonnes of paper products every year.
Besides restrictions on scale and technical skill, the industry faces imbalanced production structure and capacity.
Vietnam has become one of the biggest forestry and wood products exporters, however, most of the enterprises have to depend on importing scrap paper sources as their input materials.
It’s forecast that the industry will see a bright prospect for growth in the coming time if timely and more practical solutions are introduced by the State’ managing and relevant units.
IFC credit package boosts lending to Vietnamese SMEs
Representatives of OCB (left) and IFC (right) sign the agreement. (Photo courtesy of IFC)
The International Finance Corporation (IFC) – a sister organisation of the World Bank and member of the World Bank Group – and the Orient Commercial Bank (OCB) on March 27 signed a cooperation deal on a 100 million USD credit package and a consultancy programme to promote supply chain financing.
Under the agreement, IFC will provide a loan worth 100 million USD to the OCB with a term of three years, including 57.16 million USD from IFC’s own account and 42.84 million USD from the multi-investor Managed Co-Lending Portfolio Programme (MCPP) managed by IFC.
The IFC-led financing package, combined with advisory services, will boost lending to small- and medium-sized enterprises (SMEs), especially women-owned or managed, and will promote supply chain finance in Vietnam.
Comprising 98 percent of Vietnam’s total enterprises, SMEs are the primary engine of job creation in the country, employing more than half of the labour force and contributing about 40 percent to gross domestic product. Yet, some 60 percent of SMEs have unmet financing needs, creating a 21 billion USD financing gap. Access to finance is key to unlock the potential of SMEs, according to IFC.
Speaking at the signing ceremony, OCB General Director Nguyen Dinh Tung said the bank sees SMEs as an important target segment to realise its strategy to become a leading retail and SME bank in Vietnam.
“IFC’s financing package helps reinforce the bank’s continued commitment to expanding lending to this segment, enabling SMEs to further grow and improve their performance in the context of increased competition,” he added.
In addition to funding, in partnership with the Swiss State Secretariat for Economic Affairs, IFC will help OCB develop its supply chain finance business. While Vietnam is an export driven economy, few local banks offer a full range of supply-chain financial services to smaller businesses. With IFC’s support, OCB will develop a supply chain finance electronic platform to support the financing of commercial transactions.
“This financing package with its large mobilisation component is expected to have a catalytic impact for gender finance in the Vietnamese banking sector, which is at a critical juncture of mobilising long-term private funding to support the country’s crucial goals of developing SMEs and accelerating economic growth,” said Vivek Pathak, IFC Regional Director for East Asia and the Pacific.
IFC has provided to date more than 400 million USD in financing for women entrepreneurs in Vietnam.
Germany supports VN in operating water plants
Representatives of Aone Deutschland AG and AquaOne Water JSC (Vietnam) signed the MoU. — Photo baodautu.vn
Germany’s Aone Deutschland AG and AquaOne Water JSC (Vietnam) on Monday signed a memorandum of understanding (MoU) on operating water plants for AquaOne with total investment of US$100 million.
The MoU was signed at a meeting between Germany’s Federal Minister for Economic Affairs and Energy Peter Altmaier and Chairman of Ha Noi People’s Committee Nguyen Duc Chung in Ha Noi.
Speaking at the meeting, Altmaier said: “I am deeply impressed with the socio-economic development of Viet Nam. Germany wants to cooperate with Viet Nam to continue to improve this growth.”
He was also impressed by the achievements that German businesses have made in Viet Nam and added that the German government always wants its businesses to work with Vietnamese enterprises.
In the afternoon of the same day, the German business delegation visited the Ha Noi People’s Committee to look for investment opportunities in the capital.
On the Viet Nam side, Ha Noi People’s Committee Chairman affirmed the joint venture project between AquaOne and Aone Deutschland AG is a symbol of friendship between Viet Nam and Germany.
Viet Nam’s biggest dairy farm opens in Tay Ninh
A Vinamilk worker feeds dairy cows. — Photo anninhthudo.vn
Vietnam Dairy Products Joint Stock Company (Vinamilk) on Wednesday inaugurated a dairy farm with more than VND1.2 trillion (US$52 million) of capital in the southern province of Tay Ninh.
The farm – the largest of its kind in Viet Nam – covers 685ha in Long Khanh Commune, Ben Cau District. With a herd of 8,000 cows, the farm provides 100,000 litres of fresh milk per day, equivalent to 40 million litres of milk annually.
Speaking at the plant’s opening ceremony, Vinamilk General Director Mai Kieu Lien said her company wishes to help the domestic dairy industry develop into a hi-tech agricultural industry in Viet Nam and Asia.
Vinamilk also strives to bring the quality of the local dairy sector closer to those in the developed world, Lien said.
In 2018, Vinamilk launched a high-tech dairy farm in central Thanh Hoa Province. Built with an investment of VND700 billion, the 40ha farm has the capacity to hold a population of 4,000 milking cows.
The farm is the first of its kind to be built in the Vinamilk Thanh Hoa dairy farm complex, which is designed to have four high-tech farms with a combined milk supply of 110 million litres per year by 2020.
Vinamilk recorded a total of VND52.56 trillion in net revenue in 2018, up 3 per cent year on year. However, its post-tax profit slid to VND10.2 trillion from VND10.3 trillion in 2017.
As of December 31, 2018, total equity capital and total assets were VND26.3 trillion and VND37.3 trillion, respectively. The company’s total cash was VND1.52 trillion and total savings were VND8.7 trillion.
Nemo Partners TMS to bridge Danang and Korean investors
Earlier this week, Danang Investment Promotion Agency has signed a memorandum of understanding to co-operate with Nemo Partners TMS from South Korea to promote investment in the city.
The MoU signing ceremony between Nemo Parners TMS and Danang IPA
According to the co-operation deal (MoU), the Danang Investment Promotion Agency (Danang IPA) will co-ordinate with Nemo Partners TMS to organise a seminar on investment promotion in the city, carry out projects, research and development (R&D) activities with local startup companies, hold investment days (D-day), and connect more Korean enterprises to the city, especially in areas where the city is looking to attract Korean capital and expertise, such as high-technology and information technology.
Nemo Partners TMS specialises in strategic consultancy, human resources, business, and technology with a wide network of Korean companies and partners. The company is currently present in seven countries, including the US, China, Vietnam, Myanmar, Cambodia, Libya, and the United Arab Emirates.
In recent years, Nemo Partners TMS has been co-operating with Danang IPA to organise investment promotion activities in Korea and introduce supporting companies like Hansung, Autech Otis Group, and KT Telecommunication Corporation to invest in Danang.
Speaking at the signing ceremony, Le Trung Chinh, Vice Chairman of the Danang City People’s Committee, said that Korean enterprises and investors were ranked fifth among countries investing in the city with a total capital volume of approximately $310 million.
This number, however, is still inadequate, so he invited Nemo Parners Company to bolster efforts, helping to connect big and enthusiastic investors to Danang city and vowed to provide favourable conditions to Korean businesses.
Over 4.5 million foreigners visit Vietnam in Q1
Foreign visitors to Hanoi
Over 4.5 million foreigners are estimated to visit Vietnam in the first three months of this year, a rise of 7 percent year on year, the Vietnam National Administration of Tourism (VNAT) said on March 29.
The foreign visitors coming by air and by road rose 4.5 percent and 26.2 percent year on year, while those entering by sea declined by 37.4 percent.
The visitors hailing from Asian markets recorded an increase of 7.5 percent year on year, said the VNAT under the Ministry of Culture, Sports and Tourism.
Up to 1.2 million Chinese people spent holidays in Vietnam in the reviewed time, accounting to 37.8 percent of the total Asian visitors. The figure, however, showed a drop of 5.6 percent from the same time last year.
Thai tourists recorded the highest rise with 49.3 percent, followed by those from Taiwan (China), 26 percent; the Republic of Korea, 24.1 percent; Malaysia 11.1 percent; and Japan, 8.3 percent.
Visitors from Europe and the Americas posted rises of 6.1 percent and 6.3 percent from the same time last year.
During the reviewed period, 24.9 million local tourists were served.
Revenue from tourism activities totaled 175 trillion VND, rising by 8.35 percent from the January-March period in 2018.
French parliamentarian backs EU-Vietnam free trade agreement
An apparel factory of the Far Eastern New Apparel Vietnam company in Bac Dong Phu Industrial Park of Binh Phuoc province
President of the France-Vietnam Friendship Group at the French National Assembly Stephanie Do said the group strongly backs the signing and ratification of the EU-Vietnam Free Trade Agreement (EVFTA), which she described as a gateway for EU and Vietnam to access each other’s market more easily.
In an interview granted to the Vietnam News Agency’s correspondent in Paris ahead of an official visit to France by Chairwoman of the Vietnamese National Assembly Nguyen Thi Kim Ngan, the MP said the EVFTA plays an important role in promoting economic and commercial exchange, benefiting both the EU and Vietnam.
She noted that France is the 16th biggest foreign investor in Vietnam, but accounts for less than 1 percent of the Vietnamese market.
France wants to develop strongly bilateral relations in all aspects, so as to enhance France’s position in Vietnam both in friendship links and economic and trade exchange, Stephanie Do said, adding that the French Government has expressed the wish in many high-level visits, such as the visit by Prime Minister Edouard Philippe in 2018 and the upcoming visit by President Emmanuel Macron.
The MP said the French-Vietnamese relationship has never been stronger than now, not only in friendship links but also in strategic cooperation across various fields like economy, health care and education.
Mentioning the Vietnamese community in French, which numbers around 300,000, Stephanie Do said more and more Vietnamese French want to join the political scene. She said she had coordinated closely with the Vietnamese Embassy in France and many associations to promote the Vietnamese culture in France and help the French discover the rich and interesting culture of Vietnam.
The MP voiced her hope that the two sides will increase cooperative activities through close ties with the Embassy and representative missions of Vietnam in France.
Chairwoman of the Vietnamese National Assembly Nguyen Thi Kim Ngan is scheduled to pay an official visit to France from March 30 to April 3 at the invitation of President of the National Assembly of France Richard Ferrand. This is the first official one by a NA leader of Vietnam after 11 years, aiming to accelerate the Vietnam-France strategic partnership.
- BUSINESS NEWS OCTOBER 8
- BUSINESS NEWS OCTOBER 9
- BUSINESS NEWS OCTOBER 10
- Business support for free is being offered
- Ministers agree to delay 30% ruling changes until 2021
- Real Madrid latest news as Julen Lopetegui is sacked
- Stretching targets for party business
- Choppered: Downdraft for the offshore helicopter business
- World News in Brief: October 9
- Senior hire and double sci-tech client win for Influential