Vietnam’s Vingroup drives industrialization with diversification

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From medicine to cars, property developer muscles into ever more sectors

Vietnamese property developer Vingroup is fast becoming one of the country’s most diverse conglomerates, even as it still relies on the real estate business for the bulk of its sales. A report by Atsushi Tomiyama, Nikkei staff writer mentioned on May 01, 2018.

The company in early April announced its entry into the pharmaceuticals market, with plans to start building a plant this summer. Earlier, in March, it announced the acquisition of a feed company and plans for setting up a university. Its automobile manufacturing venture is moving forward with engineer training and international tie-ups.

For the Vietnamese economy, the rise of giants like Vingroup is driving growth and industrialization. But it is also a case of the rich getting richer, while smaller businesses often struggle to find their place, raising questions about sustainable growth.

Vingroup’s real estate operations generated 70% of its total sales last year, but the company is reaching far beyond its roots. With its pharmaceuticals brand Vinfa, the company plans to sell traditional Vietnamese herbal medicines while also handling Western drugs through partnerships with European, American and Australian players. The planned factory and research facility, to be located in the northern province of Bac Ninh, will entail a $97.7 million investment. Construction of the first phase of the 10-hectare development is to start in July at the earliest.

Apart from pharmaceuticals, Vingroup is moving into production of health food and supplements, to be sold at its Vinmart supermarkets and Vinmart Plus convenience stores. The company sees a chance to capitalize on increased health consciousness among Vietnamese consumers.

Vingroup made its bet on animal feed through organic farming subsidiary VinEco, acquiring a 60% stake in local company Viet Thang Feed. Around the same time, the conglomerate announced it would join the higher education market by opening a school called VinUni University. On April 3, Vingroup signed a strategic cooperation agreement with U.S. based Cornell University and the University of Pennsylvania, paving the way to offer education up to global standards.

Vinschool, the company’s education business, has been offering elementary and secondary schooling since 2013. Establishing a university has been a prized goal. VinUni University is to have three departments — business, industrial technology and health sciences — and the group hopes for synergies with the Vinmec hospital arm it created in 2014.

The group’s entry into the auto industry, announced last September with the support of the government, was met with serious skepticism due to the still-nascent state of domestic supply chains. Yet the VinFast project looks to be proceeding well: In January, the company bought a license from BMW to use proprietary manufacturing technology.

The details of the arrangement remain unclear, including the sum paid, but Vingroup appears set to absorb knowledge from a global automaker. Some Japanese industry executives believe the license may relate, in part, to key components like suspensions and engines.

As part of its push into the car business, Vingroup established a technical training center in the special economic zone of Hai Phong in early February. It is to become operational in August. The two-and-a-half-year program will offer two streams for electronics and industrial machinery training, including coursework and internships.

The plan is to accept 200 trainees by the end of its first fiscal year. Upon completion of the course, students will have certified skills equivalent to those needed for a German factory, thanks to cooperation with the German Chamber of Commerce and Industry.

VinFast is to start out producing electric motorcycles, due for release in the July-September quarter of 2018. In that quarter of 2019, the company intends to roll out Vietnam’s first two “national car” models, a sedan and an SUV. If all goes according to plan, this would bring Vietnam closer to the government’s publicized goal of national industrialization by 2020.

Vingroup has come a long way from its beginnings as a small real estate company in 2001. Now a giant corporation, it is powering the economy alongside the likes of VietJet Air owner Sovico Holdings and real estate company FLC Group — and helping to offset the slow privatization of state-owned enterprises.

The families behind these conglomerates are reaping the rewards. The total assets of the top 10 wealthiest owners of publicly traded companies were worth about 270.8 trillion dong ($12 billion) at the end of 2017, according to local newspaper Vietnam News, up 2.8 times from 96 trillion dong a year earlier. Vingroup’s family topped the list, followed by those behind Sovico, FLC and steelmaker Hoa Phat Group.

Many rich-listers leverage political connections as they expand their businesses. This leads to powerful companies generating more and more wealth. On the flip side, however, newer ventures appear to be left in the cold, struggling to raise funds and find talent.

This was first posted on Nikkei Asian Review

Indonesia May File WTO Complaint over Vietnam’s Car Import Policy

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Indonesia may file a complaint at the World Trade Organization (WTO) over Vietnam’s recent decision to tighten regulations related to car imports. Through Decree No. 116/2017/ND-CP on Overseas Vehicle Type Approval (VTA) (which has been in effect since 1 January 2018), Vietnam requires car exporters to obtain VTA certification first (from authorities in the exporting nation) before being allowed to export cars into Vietnam. This VTA details incoming vehicles’ quality, safety and environmental protection.

Indonesia Investment reported. Through the new regulation Vietnam requires international standards related to vehicle safety and emissions for incoming cars. And while Vietnam acknowledges that cars manufactured in Indonesia comply with the local Indonesian National Standard (SNI), it believes that the SNI is not fully in accordance with the desired international criteria. Indonesia, however, emphasizes that the local standard complies with international standards because both standards use the same process and test equipment.

Therefore, Indonesia regards the new Vietnamese regulation as an example of a non-tariff barrier that undermines the goals of the ASEAN free trade area (AFTA). The new regulation is also part of an effort by Vietnamese authorities to boost the development of Vietnam’s domestic automotive industry (where the Vingroup is eager to develop the country’s first national car).

In late February an Indonesian delegation – consisting of officials from the Ministry of Trade, Ministry of Transportation, Ministry of Industry, Ministry of Foreign Affairs, and the Indonesian Automotive Industry Association (Gaikindo) – visited Vietnam in an attempt to persuade Vietnam authorities to discontinue the new regulation. However, Vietnam said it would not withdraw the regulation.

Since the implementation of the regulation on 1 January 2018 shipments of Indonesian completely built up (CBU) units to Vietnam have ceased completely. Part of the problem is that Indonesian authorities only issue a VTA for the domestic market (based on domestic road conditions), not for export markets. A bigger problem is that the new regulation orders all car units that are shipped to Vietnam to undergo a safety and emissions check (prior to the implementation of the new regulation only the first shipment was required to undergo such tests).

In full-year 2017 Indonesia exported a total of 15,101 CBU units to Vietnam (the majority being Toyota and Daihatsu units). This made Indonesia the third-largest car exporter to Vietnam (with a market share of around 13 percent). Oke Nurwan, Foreign Trade Director at Indonesia’s Trade Ministry, stated earlier that the new regulation would lead to missed income for Indonesia of around USD $85 million in the December 2017 – March 2018 period.

Last week, however, it was reported that Toyota Motor Manufacturing Indonesia obtained a VTA and can therefore resume shipments of car units to Vietnam (after months of zero exports). The company plans to export its Fortuner model, a sport utility vehicle, to Vietnam soon. This example shows that it is not impossible for Indonesian authorities to issue a VTA for a local exporter.

This was first posted on Indonesia Investment

Vietnam steel sector expects 22pct growth this year

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Vietnam’s steel industry has high potential to reach a production growth rate of 22 percent and expand export markets this year. Vietnam Plus reported.

However, this will be possible only if it overcomes difficulties such as trade defence lawsuits and high imports, according to the Vietnam Steel Association (VSA). The sector faced 30 trade defence lawsuits from other countries in 2017, many of which have continued into 2018.

These include anti-dumping cases for cold-rolled stainless steel, steel plates and H-shaped steel as well as trade defence cases related to pig iron, long steel and colour coated steel sheet.

By March 2018, Vietnam had exported 446,000 tonnes of steel products for 321 million USD, up 38 percent in volume and 63% in value compared to the same period last year.

The quality of Vietnamese steel has met the demand of choosy markets, such as the United States, Australia and Europe, rising to top position in regional and world markets.

However, in the first few months of 2018, Vietnam imported 1.2 million tonnes of steel worth 808 million USD, a drop of 5% in volume and an increase of 22% in value.

VSA Vice President Nguyen Van Sua said despite a fall in imports and rise in exports, the volume of imported steel remained high.

According to him, the domestic steel industry was still dependent on imports as the domestic production process was yet to be synchronised, along with low capacity in producing steel for the mechanical manufacturing sector. Meanwhile, domestic firms are unable to produce many input material products, such as hot-rolled steel and pig iron, thus making production slow and expensive.

With the recent market recovery and extensive economic integration, especially the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the upcoming signing of the free trade agreement between Vietnam and the European Union, the Vietnamese steel sector has the opportunity to expand markets, making the growth target of more than 20 percent feasible.

But the fact is when Vietnam increases steel exports, the import market will strengthen trade defence measures.

Mr Tran Tuan Duong, General Director of Hoa Phat Group, said Vietnamese firms should maintain the domestic market, while for export activities, they should adhere to the regulations of free trade agreements and actively cooperate with other countries when faced with anti-dumping lawsuits to avoid losing markets or paying high taxes.

According to Mr Duong, market protection solutions are not enough and businesses themselves should enhance their competitiveness and make use of all opportunities for development.

A representative of the Vietnam Steel Corporation said obstacles to exports mostly came from trade barriers and defence measures of importing countries. Therefore, the corporation would continue to improve efficiency in production and business by enhancing market forecasts and having flexible production and business activities according to market development.

Despite the lack of capacity and experience, Vietnamese firms could still fight trade defence in the context of integration, the representative said.

VSA highlighted the need for cooperation with countries in the face of trade defence problems, along with the development of professional teams to deal with investigation and data gathering to protect steel firms in domestic and foreign markets.

 

Source : VIETNAM PLUS

Qatar to supply oil products to Vietnam over 15 years

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The state-owned Qatar Petroleum (QP) has signed an agreement to supply Vietnam with up to two million tonnes of LPG and Naphtha per year for a period of 15 years, the company’s management announced in statement today. middleeastmonitor.com reports today, April 30, 2018.

The agreement was signed between the Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) and Long Son Petrochemicals Company Limited (LSP), a subsidiary of Vietnam’s Siam Cement Public Company Limited

The long-term agreement will commence with the start of Vietnam’s first green-field petrochemical complex, which is being constructed on Long Son Island, 100 km southeast of the country’s Ho Chi Minh City. The facility is expected to begin production in 2022, according to QP’s statement.

“This agreement has a significant importance for us, as it is the first time that Qatar is selling LPG and Naphtha on long-term basis, and for the first time, directly to Vietnam,” QP’s CEO, Saad Bin Sheridan Al-Kaabi, said.

Kaabi added that the deal “reflects the trust of the markets and customers in QP,” stressing that it “will expand Qatar’s footprint into the growing markets of Southeast Asia.”

On 5 June 2017, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Doha, accusing it of “supporting and financing terrorism.” Qatar denies the allegations.

Economists say that Gulf state’s economy has notably recovered from the boycott and is becoming one of the region’s fastest-growing.

Although the blockade has disrupted the Gulf state’s imports and triggered withdrawals of billions of dollars of deposits from Qatari banks, it developed new trade routes, deposited state money in its banks and helped local firms to develop output of some key goods instead of importing them.

Vietnam Airlines plane lands on runway under construction

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Crew members have reportedly been suspended after a Vietnam Airlines A321 landed on a runway that was closed and under construction at Nha Trang Cam Ranh International Airport.

Airlive reported that the incident occurred on flight VN7344, from Ho Chi Minh City to Cam Ranh in Vietnam.

Passengers were held up after the plane landed on a runway that was not yet connected to the airport. The aircraft also suffered minor damages.

A total of 203 people were on board, including seven crew members and the captain, who was US citizen working for Vietnam Airlines since January 2018.

According to Airlive, both pilots have been suspended while an investigation into the incident is underway.

Passengers and luggage were transported to the airport, but it was unclear how the plane was recovered.

Vietnam morning news – May 01

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Estimated Reading Time: 5 minutes

Vietcombank to offload 10% stake to maximum ten foreign investors
Vietcombank, Vietnam’s largest lender by market value, will offload a 10 per cent stake to a maximum of ten foreign investors in the first half of this year after it received government approval for the sale, it announced at its recent annual shareholders’ meeting.
— DealStreetAsia

Three foreign airlines get exemption from import tax
Deputy Prime Minister Vuong Dinh Hue has agreed with the proposal of the Ministry of Finance to exempt three airlines from import tax.
— Nhan Dan Online

Techcombank to start trading on HoSE from June 4
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is poised to commence trading on the Ho Chi Minh City Stock Exchange (HoSE) on June 4 following its nearly $1-billion IPO, the bank announced on April 27.
— DealStreetAsia

What’s Behind Vietnam’s More Vocal Stance Against China?
Vietnam sounded off twice last week against China over a long-festering maritime sovereignty dispute, after months of silence. But analysts expect to see angry phases like this one alternate more often with silent ones.
— VOA

Int’l press highlights Vietnam’s impressive economic development
Over the past week, the international press has run numerous articles highlighting the impressive development of Vietnam’s economy.
— Nhan Dan Online

Vietnamese dairy products in spotlight at Asia’s biggest food, hospitality show in Singapore
The largest of its kind in the food and hospitality industry in Asia – attracted the participation of more than 4,000 exhibitors from 70 countries and territories throughout the world.
— Bizhub

Online transactions to be paid via banks compulsorily
E-commerce transactions will be required to make payment via banks or authorized payment intermediary services compulsorily.
— The Hanoi Times

Fuel price as main driver to the CPI hike in April
Vietnam’s consumer price index (CPI) in April moved 0.08% against last month, pushing up the four-month figure by 2.8 percent year-on-year, reported the General Statistics Office (GSO) on April 29.
— The Hanoi Times

Vietnam loses as CBN supports cashew exporters
Vietnam processing firms are closing shops as cashew exporters in Nigeria are exploiting new markets to boost their income.
— New Telegraph Online

Vinhomes seeks up to $1.4b in Vietnam’s biggest equity issue
Vinhomes JSC, the residential property developer of conglomerate Vingroup JSC, launched an equity issue of up to $1.4 billion on Monday, making it the country’s biggest-ever IPO in a market, drawing strong interest from global and local funds.
— DealStreetAsia

High inflation risk looms ahead
Authorities should closely watch on inflation to timely take appropriate measures as it is under pressure to rise significantly next time, experts suggested.
— The Hanoi Times

Vietnam Airlines mulls cargo business
Vietnam Airlines Corp., which has been transforming its fleet with new wide-body planes and expanding services, is looking to further boost growth by starting a dedicated cargo unit.
— Manila Bulletin

Over 14,500 new enterprises established in Vietnam in April
The number of newly established Vietnamese enterprises in April was 14,510, with the total registered capital at VND133.5 trillion (US$5.87 billion), according to the General Statistics Office (GSO).
— Nhan Dan Online

15 billion USD projects proposed for Van Don
Businesses proposed to develop three large-scale projects, expected to cost about 10-15 billion USD, in Van Don special economic zone during a recent meeting with Quang Ninh’s leaders.
— VietnamPlus

Another Record Stock Listing Underway In Vietnam
The residential property division of Vietnamese conglomerate Vingroup, Vinhomes, launched an equity issue of up to $1.4 billion on April 30, making it the country’s biggest-ever IPO, with a lot of interest from global and local funds, Reuters reported.
— Investvine

Cai Mep – Thi Vai port complex expected to become the economic centre of the south
The party secretary of the southern province of Ba Ria-Vung Tau, Nguyen Hong Linh, has proposed that the Ministry of Transport and the Government consider developing Cai Mep-Thi Vai Port complex and Long Thanh international airport into the economic centre of the south.
— Bizhub

Qatar to supply oil products to Vietnam in 15 years
The 15-year agreement marks Qatar’s first long-term contract to sell LPG and naphtha directly to Vietnam.
— VnExpress

Mitsubishi Motors to resume exports to Vietnam
Mitsubishi Motors expects to resume shipments to Vietnam as early as June, complying with stricter inspection requirements on imported cars that went into effect at the beginning of the year.
— Nikkei Asian Review

HCMC advised to combat airport flooding by preventing littering
Trash blocking drainage canals is one reasons for regular flooding at Tan Son Nhat Airport.
— VnExpress

Sunseap Receives Approval for $150 million Solar Project in Vietnam
Sunseap International, a unit of Singapore’s Sunseap Group, has received the green light for a $150 million solar farm in Vietnam. The company stated it is the largest in the country to-date.
— Renewable Energy Magazine

Việt Nam Red Cross launches Humanitarian Month
The Việt Nam Red Cross (VNRC) in collaboration with the Hà Nội Red Cross Society launched the Humanitarian Month (from May 1 to 31) at a ceremony on April 28 in Hà Nội.
— Viet Nam News

Vietnamese fashion products displayed at Hong Kong Fair
More than 30 leading Vietnamese manufacturers of garments, textiles and fashion accessories as well as garment-related industries have displayed their products at Hong Kong’s largest one-stop sourcing fashion show.
— VietnamPlus

Vietnam’s leading laboratory technology event celebrates its 10th year
Analytica Vietnam, a spin-off of the analytica in Munich, celebrates its tenth anniversary: From April 03 to 05, 2019, the sixth episode of Vietnam’s leading trade fair for analysis, laboratory technology and biotechnology will be held at the Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City.
— Environmental Technology

Vietnam Airlines Considers Creating Cargo Unit to Boost Revenue

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Vietnam Airlines Corp., which has been transforming its fleet with new widebody planes and expanding services, is looking to further boost growth by starting a dedicated cargo unit. Nguyen Dieu Tu Uyen reports on Bloomberg, Monday, April 30.

The Southeast Asian nation has become a major manufacturing hub, with companies such as Samsung Electronics Co. annually producing billions of dollars in devices, providing an air freight opportunity for the national carrier, Vietnam Airlines Chief Executive Officer Duong Tri Thanh told Juliette Saly in a Bloomberg Television interview.

Investments by companies such as Samsung, LG Electronics Inc. and Nestle SA have made the country a manufacturing powerhouse, fueling economic growth that’s been among the fastest in the region. Gross domestic product rose 7.4 percent in the first quarter and the government forecasts growth of as much as 7.5 percent this year. The government is also looking to attract more visitors and develop tourism as a key industry.

“We expect a higher number of international passengers, especially from Japan and Korea, and more middle-class passengers domestically, thanks to Vietnam’s fast economic growth,” Thanh said.

The carrier is seeking dominance in the country the International Air Transport Association says will be among the world’s top five fastest growing air travel markets in the next 20 years. Competing with the nation’s largest private carrier, VietJet Aviation Joint Stock Co., the state-owned

The national carrier — which sold an 8.8 percent stake to ANA Holdings Inc. in 2016 — forecasts serving 23.4 million passengers this year, up from 22 million in 2017.

In 2016, Vietnam Airlines signed a deal with Airbus SE to buy 10 A350 wide-bodied aircraft with a list price of $3.1 billion. It also earlier ordered 19 Boeing Co. 787-9 Dreamliners. It plans to have 110 planes by 2020 and 150 by 2030, versus 92 planes now.

The airline is planing a route to Los Angeles by late 2019 or early 2020. Last year, it formed a venture with Air France to add 17 more destinations in Europe to the original three.

The state-owned airline, currently listed on Hanoi’s Unlisted Public Company Market — the so-called over-the-counter regulated market — plans to list shares on the country’s benchmark stock exchange in Ho Chi Minh City no later than the third quarter, Thanh said. The government has pledged to reduce its stake to 51 percent around 2019 to 2020, from about 86 percent now.

The carrier forecasts a pretax profit of 2 trillion dong ($87.8 million) this year, rising from about 1.85 trillion dong in 2017, Thanh said. Vietnam Airlines’ unconsolidated pretax profit jumped 30 percent in the first quarter to 875 billion dong, with a 25 percent growth in its number of international passengers, according to Thanh.

Shares of Vietnam Airlines rose 9 percent to 37,600 dong at the close in Hanoi trading Friday.

Vietnam Airlines and ST Aerospace Supplies last week signed an agreement in Singapore to form a joint venture to provide aircraft component maintenance, repair and overhaul services in Vietnam. The agreement will help the airline have a quicker maintenance turnaround on its aircraft as well as create an opportunity to service other airlines in the region, Thanh said.

Source: Bloomberg

Vinhomes launches Vietnam’s biggest equity issue in choppy markets – term sheet

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Vinhomes JSC, the residential property developer of conglomerate Vingroup JSC VIC.HM, launched an equity issue of up to $1.4 billion on Monday, making it the country’s biggest-ever IPO in a market, drawing strong interest from global and local funds. Reuters reports.

The issue eclipsed an equity offering from Vietnam Technological and Commercial Joint Stock Bank, which was priced at the top-end of an indicative range and raised roughly $922 million last week.

Shares of Vinhomes are being marketed in a range of 110,500 Vietnamese dong to 114,700 Vietnamese dong per share ($4.85-$5), implying a market value of $13 billion to $13.5 billion for the company, which is betting on an increase in home sales in one of Southeast Asia’s fastest growing economies, the term sheet showed.

There was no response from Vinhomes to a Reuters query sent on a market holiday.

The IPO comes at a time when Vietnam’s markets have dropped as much as 15 percent from record highs hit earlier this month, but analysts view the correction to be short-lived.

Vinhomes says it is the dominant player in the high-end property segment in Hanoi and Ho Chi Minh City, with a 48 percent market share and an overall market share of 15 percent across all residential segments.

Local and global investors have agreed to take in about three-quarters of the initial equity offering, underscoring huge support for the issue, the term sheet showed.

Earlier this month, Singapore wealth fund GIC [GIC.UL] came in as a pre-IPO investor and took a roughly 7 percent stake for about $853 million by buying shares from Vingroup and other shareholders.

Vinhomes’ IPO, which will be listed on the Ho Chi Minh Stock Exchange, will rank the company among the biggest listed local firms. The issue consists of secondary shares.

Vinhomes is majority-owned by Vingroup, the country’s biggest conglomerate, which operates in real estate, education, healthcare, entertainment, retailing and automobile manufacturing sectors.

Roadshows for the issue kicked off in Hong Kong on Monday, followed by London, New York, Singapore and Boston, the term sheet showed. The shares are set to be priced on May 7 and expected to be listed on May 17.

Reporting by Anshuman Daga; Editing by Sherry Jacob-Phillips.
 
This article originally appeared on Reuters

Vietnam morning news – April 30

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Estimated Reading Time: 5 minutes

Vietnam Trade Surplus at $3.1b
Vietnam recorded a trade surplus of $3.1 billion as of April 15, according to the latest statistics of the General Department of Vietnam Customs.
— Financial Tribune

Vietnam Airlines jet lands on runway under construction
Vietnam Airlines has reportedly suspended crew of an A321 after the jet mistakenly landed on a runway under construction.
— Stuff

Textile, garment exports soar to nearly US$8 billion
Vietnam’s export turnover of textile and garment products soared by 13.4 percent year-on-year to US$7.62 billion in the first quarter, equal to 22.4 percent of the annual target, the Vietnam Textile and Apparel Association (VITAS) reported.
— The Hanoi Times

Vietnam’s tea industry feels pressure from decline in exports
Vietnam’s tea exports to Pakistan, the biggest export market, dropped by 40 percent this year in comparison with the same period last year.
— VietnamNet Bridge

Vietnam asked to lift unfair restriction on Thai cars
Thailand has demanded Vietnam to lift what it alleged as discriminatory import restriction on cars exported to Vietnam, including cars from Thailand.
— Thai PBS

Thailand, Vietnam won’t sell rice at cheaper prices
After Thailand and Vietnam — the only countries with existing rice trade agreement with the Philippines — refused to sell their rice to the country at a cheaper price, the National Food Authority (NFA) is now all set to conduct another government-to-government (G2G) bidding with the two governments.
— Manila Bulletin

VietShrimp 2018 draws over 100 local, foreign businesses
VietShrimp 2018, the second fair on technology in the shrimp industry of Vietnam, has taken place in the southern province of Bac Lieu province, drawing the participation of over 100 domestic and foreign businesses and groups.
— VietnamPlus

Vietnam drafts FDI attraction strategy in new stage
Vietnam’s FDI attraction strategy in the next decade will shift from profit-based incentives to efficiency-based incentives in a move to maximize the spillover effects and added value of the investment source.
— The Hanoi Times

Vietnam’s import up 10.1 pct in first 4 months
Vietnam spent nearly 70.4 billion U.S. dollars importing goods in the first four months of 2018, seeing a year-on-year rise of 10.1 percent, and a trade surplus of roughly 3.4 billion U.S. dollars, the country’s General Statistics Office said on Sunday.
— Xinhua

Wood exports can help 2018 target
Viet Nam can reach its export value target of US$9 billion for forestry products this year through the export of wooden products, said an expert.
— Bizhub

Dorufoam expands export to Russia, Europe, American markets
General Director of Dong Phu Rubber Technology Jsc Dam Duy Thao has said the company plans to ship its wholly Vietnamese natural products to Russia, European and American markets apart from traditional markets of China and Cambodia.
— VietnamPlus

Vietcombank plans to raise capital by 10%
The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) plans to add 10 per cent to its tier-1 capital in 2018 through issuing shares for foreign investors.
— Bizhub

Vietnam struggles to find investors for trans-national expressway
Local investors can’t raise enough funds while foreign ones find the project too risky.
— VnExpress

Export promotion targets sustainable growth
This year’s export promotion will focus on the country’s key industrial products, seafood and agricultural produce, Tran Thanh Hai, deputy director of the Ministry of Industry and Trade (MoIT)’s Import-Export Department, said.
— The Hanoi Times

No new sugarcane plants in Vietnam until 2020
The Ministry of Agriculture and Rural Development has agreed with the plan not to build more new sugarcane plants between now and 2020 with an aim to promoting the industry’s competitiveness and sustainable development.
— Borneo Bulletin

Vietnam’s CPI up slightly in April
Vietnam’s consumer price index (CPI) in April went up 0.08% monthly and 2.75% annually, pushing up the four-month figure by 2.8% year-on-year, reported the General Statistics Office (GSO) on April 29.
— Nhan Dan Online

Vietnam continues corruption fight with charges pressed against top military officers
Multiple executives at a defense ministry’s company have been arrested under power abuse charges.
— VnExpress

Agribank tackle account hack
Three out of twelve account holders at the Vietnam Bank for Agriculture and Rural Development (Agribank) had been reimbursed in full on Friday, following a series of unauthorised transactions from their accounts on Wednesday night.
— VietnamNet Bridge

Companies scratching heads over future
After mobile operators announced a temporary halt of scratchcard payments in the past few days, digital and online gaming businesses said they had been hit hard.
— Bizhub

Qatar Petroleum signs 15-year deal to supply LPG, naphtha to Vietnam
Qatar Petroleum (QP) said on Sunday it has signed an agreement to supply Vietnam with up to 2 million tonnes per year of LPG and naphtha.
— Hellenic Shipping News

E&Y: Where is fintech in Vietnam?
Vietnam can expect its fintech ecosystem to grow in the near future should it pay attention to the funding issue, growing talent in the field, and a legal framework to support such growth.
— VietnamNet Bridge

Multi-channel shopping is vital for e-commerce growth
Multi-channel shopping is on the rise, becoming a vital factor which will help retail businesses expand sales channels, thereby increasing their reach to customers and enhancing the competitive edge given the online shopping boom in Viet Nam.
— Bizhub

Saigon downtown streets will be closed for public holiday

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Saigon will block some main downtown streets as a firework show will be organized, over the Saigon River Tunnel on Monday night, from 21h00 to 21h15 on April 30. Normally, 15 minutes should be reserved to get there as the traffic will be heavy.

A report on VNExpress International mentioned, all vehicles will be banned from parts of Hoang Sa and Truong Sa Streets from Le Van Sy Bridge to Tran Khanh Du Bridge through District 1, 3 and Phu Nhuan to make way for a traditional marathon run from 6 a.m. to 11 a.m. on this Sunday.

The section of Le Duan between Pham Ngoc Thach and Pasteur corners in front of the Independence Palace will be closed to traffic between 8 a.m. and 1 p.m. on Sunday and from 5.30 a.m. to 1 p.m. on Monday, the city’s transport department said.

A closing ceremony of the annual HCMC Television cycling race will be held on the street section.

On Nguyen Hue walking street, between Le Thanh Ton and Ton Duc Thang when the city authorities are planning to organize celebrations to mark the 43rd anniversary of the end of the Vietnam War and the 132th International Labor Day. Duration is from 6 a.m. to 10 p.m, Monday, April 30, 2018.

Between 8 p.m. on Monday and 4 a.m. on Tuesday, motorbikes will be banned from the Saigon River Tunnel, from Ky Con to the area of Thu Thiem Bridge on both sides. There will be a 15-minute firework show over the tunnel on Monday night. Road users are advised to take alternative routes to avoid traffic congestion.

Vietnam’s largest city last year scrapped firework parties for its Reunification Day on April 30, following the Communist Party’s call for austerity but brought back the lights for the country’s National Day on September 2, to a lot of fanfare.

Reunification Day and Labor Day are two of public holidays in Vietnam.

Downtown streets in Saigon will be closed this weekend for Reunification celebrations. Source: Google map
By Huu Nguyen

Lotte Duty Free to open new store in Da Nang downtown

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Lotte Duty Free plans to bolster its Vietnam footprint with a new duty free downtown store scheduled to open in Da Nang city later this year. Travel retail business news channel confirmed on its report.

Scheduled to open in two stages, the mixed category shop will occupy more than 1,000 sq m of retail space when fully open.

“Vietnam has very good potential; it’s an up-and-coming country,” commented Kim Joon Soo, Senior Vice President and Head of Merchandising HQ at Lotte Duty Free. “We will partially open our Da Nang downtown shop in October. The grand opening will be in December.”

NHA TRANG OPENING

News of the store follows the unveiling of 1,208sq m of duty free space over two stores at Da Nang Airport, as reported in October.

At that time, the South Korean travel retailer actively seeks to promote duty free outlets in Vietnam and reviews potential openings in Hanoi, Ho Chi Minh and other major cities in Vietnam over the coming years.

In line with that strategy, Lotte is completing final preparations to soft open a mixed category duty free arrival and departure shop at Cam Ranh International Airport close to Nha Trang.

Cam Ranh Airport’s New International Terminal

As reported in November, Lotte Duty Free secured a 10-year contract to exclusively operate 1,811sq m of mixed category duty free space at the new terminal – Lotte’s second airport duty free shop [and soon-to-be third outlet in Vietnam – Ed] and seventh overseas.

Sales from the concession are expected to reach KRW700bn ($655m) over the duration of the contract.

“We will enter Nha Trang’s Cam Ranh Airport; now we are renovating the shop,” continued Joon Soo. “Even though it’s a small area to begin, we will partially open the shop.”

Located 35km from Nha Trang, a growing beach holiday destination popular with Chinese, South Korean and Russian tourists, Cam Ranh International Airport is Vietnam’s fourth largest airport.

International airlines serving the airport include China Southern Airlines and Sichuan Airlines along with South Korean carriers Korean Air and Asiana Airlines.

When fully open later this year, Lotte’s new Nha Trang Airport arrival and departure shop will be more than five times larger than the company’s current 330sq m duty free departure shop in Da Nang Airport.

“Nha Trang Airport is a bigger market than Da Nang Airport where we also have a duty free shop,” said Kim. “It’s mostly Chinese passengers there; Nha Trang has more Chinese passengers. Nha Trang also is favoured by Russian tourists.”

As reported in the May Asia Pacific by travel retail business news channel, Lotte Duty Free’s overseas sales grew by 45% year-on-year to total KRW140bn ($131m) in 2017 – a welcome distraction from troubles on the domestic front.

Its Da Nang Airport store in particular recorded a surplus in its first year of trading, we understands.

This was first published on travel retail business, edited by Vietnam Insider

Vietnam: A bicycle tour gives a close-up look at the country and its people

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There’s no place in Florida to adequately train for a bicycle ride up a long mountain trail like the spectacular climb to the Hai Van Pass in Vietnam. The ride takes you up 1,627 feet from nearly sea level, through a lush forest, to a windy overlook with photo-inspiring views of the South China Sea. The abandoned bunkers at the pass are sober reminders that French and then American soldiers fought there in the mid 20th century.

The winding, 6-mile Hai Van Pass road was the most serious challenge during a two-week cycling tour of Vietnam that my wife and I took in late December.

Bicycle touring, we discovered, lets you experience a country up close. You see how people live, smell the cooking, and hear children call “Hallo” as they rush to the road to try for a side-arm high five.

John, a 44-year-old Australian graphic designer who spends most weekends on a mountain bike, was first in our six-person tour to make it to the top of Hai Van Pass. It took him 38 minutes of pedaling, and he would have been close to the reputed record of 35 minutes if not for a chain malfunction.

The rest of us took up to an hour and a half to reach the summit. Some pedaled constantly; others took short walking breaks.

My strategy: Start slowly and stay in the highest gears, the ones you don’t use in Polk County. Your feet spin quickly, and you go slowly, but it worked. I got to the top without getting off the bike — except when our tour leader rode up behind and noticed my rear tire was going flat. He phoned the truck that was trailing us, and the driver stopped for an emergency repair.

Riders who don’t feel up to the challenge of the long uphill climb could hop on the bus that ferried us between rides, but nobody in our group chose to do that.

We were four men and two women ranging in age from 33 to 64: two Lakelanders, the Aussie I mentioned, a Danish-Canadian dual citizen and two Brits.

Intrepid Travel, the Australian company that organized the tour, is careful to vary the intensity of the rides. The ride preceding our intense mountain climb was a post-lunch, leisurely 9-mile circle around a placid lagoon. (Our 37-mile ride before lunch started slowly through villages and farmland and shifted to moderate speeds when we hit largely open roads.). We didn’t even get on our bikes the next day, letting our tired leg muscles recover as we strolled, shopped and dined through the old city of Hoi An, a UNESCO World Heritage site.

A typical day on the bicycle tour starts with breakfast at the hotel at 6 a.m. All of the hotels we stayed in were comfortable, though the quality varied from spartan to semi-luxury. (Our guide described one of the nicer lodgings as a three-star hotel built to look like five stars.) Buffet breakfasts typically offer familiar Western dishes (omelets, pancakes, cereal, breads) and Asian meats, noodles, rice, veggies and fruits.

By 7, we were either on our bikes or on the bus. On lighter days, we might bike 20 miles. Toward the end, when we had all built capacity, there were several 50+-mile days.

Our group was accompanied at all times by a local tour guide and a mechanic. We stopped every dozen miles or so for snacks of fresh fruit, sweets, nuts and limeade.

We also stopped for cultural tours most days. In Hue, for example, we visited both the abandoned French and American bunkers on a strategic hill overlooking the Perfume River and the ancient walled city.

Lunches were uniformly excellent. Most were at non-touristy restaurants that we probably would have passed by without a guide who knew where to get tasty food reflecting regional cuisines.

All of the restaurants and hotels that Intrepid uses are locally owned. The company emphasizes low-impact travel and local economic sustainability. All Intrepid employees in Vietnam are locals, according to our guide, and I presume that is true of the other 120 or so countries where Intrepid offers tours.

A bicycle tour in Vietnam

Vietnam is a long, narrow country, and the temperatures varied greatly from north to south, but everywhere we went we saw trees and flowers familiar to Floridians. (We had a Polk County moment when we biked past an orange grove on our third day.)

It’s 1,082 miles from Hanoi, where we started our trip, to the end point in Ho Chi Minh City. (That’s the official name; we were surprised that many locals still call it Saigon.) No, we didn’t bike that far. A significant distance was covered in an overnight train ride as well as bus journeys through mountainous areas and locations where the main route was a superhighway.

Mostly, we biked on country roads, although we did get to compete with ever-present motorbikes and honking cars through some harried city riding. The mountain bikes issued by Intrepid carried us over just about every kind of surface: asphalt, concrete, dirt, gravel, pebbles, potholes, grated bridges, rain-flooded pavement, even a slender creekside path.

The Vietnamese people we encountered were warm and hospitable. If there is any resentment over American fighting in the 1960s and ’70s, we didn’t detect it among the people we met. However, the official line of foreign aggression is abundantly clear when visiting museums about the conflicts the Vietnamese call the Resistance War Against France and the Resistance War Against American

You sense that people are grateful for both the tourism and industrial investment that resulted as relations between the U.S. and Vietnam eased over the last two decades. In cities, particularly in the South, you now see Western luxury brands, and in markets you can get deals on clothing made in Vietnam for American and European companies such as North Face and Adidas.

English skills are seen as a key to advancement. In a lakeside park frequented by tourists in Hanoi, we were approached repeatedly by children who wanted to practice their English skills with us.

And did I mention the food? Our meals were excellent and inexpensive. After two weeks, I thought I had refined my chopsticks technique — until one night when we had dinner with the family of a young Vietnamese friend from Tampa who was home visiting her folks. Her amiable mom watched me picking up spotted snails and rice with chopsticks, and wondered aloud whether I’d be more comfortable with a fork. I smiled and pressed on with my chopsticks.

——-

IF YOU GO

Tour host: Intrepid Adventures specializes in small-group travel emphasizing low environmental impact and local economic sustainability. https://www.intrepidtravel.com, 800-970-7299.

Cost: 15-day Vietnam bicycle trips start at $1,743, including hotels, bike use, 13 breakfasts, 11 lunches and two dinners.

Visa: U.S. citizens must arrange in advance for a tourist visa. You can avoid sending your passport to the Vietnamese embassy in Washington by arranging for a “visa on arrival” through one of several agencies recognized by the Vietnamese government. We used Vietnam Visa Center, https://vietnamvisacenter.org. Cost for a one-month, single-entry visa is $20 and an extra $50 cash when you pick up the visa at the arrival airport.

Weather: Vietnam is hot and humid, not unlike Florida. If you go in the winter, though, be prepared for temperatures in the 40s and 50s in the North.

Training: Those who bicycle long distances regularly won’t need special preparation, although hill work is recommended; nearby places include Lake Hollingsworth neighborhoods, the Ridge and Clermont. My wife and I gradually built to longer distance riding of up to 60 miles in the months before the trip and were happy we did.

Shoes: Shoes with thick soles are recommended. I opted for 5 Ten mountain biking shoes with a grippy sole. They were comfortable both on the bike and during walking tours. (Those who brought clip-in shoes and their own pedals had to change shoes often when we hopped off the bikes for tours.)

Saddles: Intrepid allows riders to bring their own bike seats. I did and was glad to change into it after I tried the one that came on the bike the first few days and ended up sore. My wife brought a noseless seat and was the only person on our tour who did not feel the need to wear padded shorts.

Apps: Because you’ll have a little time to explore some of the cities, it helps to download an offline map and a country guide to your mobile. I found the Maps.me and Triposo Vietnam apps helpful.

By Barry Friedman, Special to The Ledger

Discover U Minh National Park in the Mekong Delta

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Discover Somewhere New? A not too far distance from Mekong Delta centre we have U Minh National Park (UMNP), the perfect place to chill and have a picnic. Vietnam News reports.

If you’re a nature lover and favour adventure trips, the U Minh National Park in the Mekong Delta should be at the top of your destination list, especially if you live in southern Việt Nam.

Trần Vĩnh Tuấn, a 46-year-old visitor from HCM City, is so fond of the park that he comes every month or two. “I can fish, breathe the fresh air, and listen to the singing of hundreds of birds,” he said.

“Living and working in HCM City, I have to deal with air and noise pollution. But here, I always feel relaxed and recharged to go back to work the next day.”

The park’s name U Minh, which refers to darkness, remains a mystery to some. It was so called because of the lack of sunlight caused by the density of trees. Even locals at times found it difficult to navigate.

Separated by the rivers Trẹm and Cái Tàu, the park has two major areas called U Minh Thượng (Upper Park) and U Minh Hạ (Lower Park).

The first is located in Kiên Giang Province’s An Minh District, about 65km from Rạch Giá City, and the latter is in Cà Mau Province, 25km from Cà Mau City.

Greenery: Boats are designed to travel in special flooded forested areas where land travel is impossible. — Photo hcmcgo.com

Every year, thousands of people visit the park for various outdoor activities, including a climb up to a 24-metre high observatory where there is a panoramic view of the vast forests and waterways.

U Minh Thượng, which covers 21,000 hectares, has a core area of 8,000 ha where many rare and endangered birds live. It contains a total of 187 bird species, 39 amphibian species and 34 fish species.

Widely considered the Mekong Delta’s richest region in terms of plant and animal life, with over 243 species of plants, U Minh Thượng has 32 mammalian species, including the hairy-nosed otter and fishing cat.

U Minh Hạ is also amazingly diverse, with more than 8,000 ha of indigo blue trees and a buffer zone of 25,000 ha that protects all flora and fauna.

Wildlife: A bee nest in U Minh Hạ. — VNA/VNS Photo Duy Khương

In 2014, the park management began offering services for tourists, including fishing, and nature discovery and sightseeing trips. Accommodations and boat tours, as well as souvenirs for tourists, are all now available.

Many tourists like to rent boats to travel on the park’s interlacing canals or walk through forested areas, while others prefer fishing or, with the help of locals, spreading nets (with the help of locals) to catch fish that can later cook if they wish.

In recent years, more tall towers have been built where visitors can look for rare animals and plants hidden in the forests.

The park has around 60 kinds of freshwater and brackish-water fish, as well as wild boars, monkeys, weasels, snakes, turtles and pangolins, many of which are listed in the Red Book.

Tourists are also allowed to grill, fry or boil food, or order cooked dishes at the park. The most popular are grilled freshwater fish, grilled snake with water lily, fried field mouse, and young lotus leaves.

Other activities that are bit more adventurous include exploring the flooded indigo forests where people can fish, or trekking to the old barracks of the National Liberation Front armed forces.

Another favourite activity in the indigo tree forest, especially for Vietnamese tourists, is a visit to the house of Uncle Ba Phi, a man famous for his folk stories and comedies loved by generations of local children. Tour guides tell interesting stories about Phi’s fictional giant pythons and crocodiles in the wild.

To protect the environment, the government in recent years has allocated land and forested areas to local residents who make living by planting trees, fishing, trawling, and making wood products, among other activities.

The residents of the area have a deep love for U Minh and take great care in preserving the area, according to authorities.

The park is open year-round, but tourists should be aware that during March and April, when forest fires can break out more easily because of the dry weather, activities in the park are limited in scope and number. — VNS

Revolutionary base

The U Minh National Park is well known for its rich biodiversity, but few people are aware that is also famous for being a former revolutionary base during military conflicts in Việt Nam.

In the last two wars against the French and American, the U Minh mangrove forest was used as a revolutionary base for the South Việt Nam Liberation armed forces.

Colonel Phạm Hoàng Kiệt said the area was chosen as a base because U Minh residents were known as hard-working and heroic. The local residents not only supported soldiers, but also protected the leaders of revolutionary movements and their head agencies.

The park, which has great significance in the nation’s history, serves as a vivid reminder for today’s youth of the patriotism and revolutionary tradition of older generations.

In 2015, the local government built the Security Historical Relics Complex Zone 9 in Kiên Giang Province’s U Minh Thượng District to express respect for and gratitude toward fallen Vietnamese soldiers during the wars with the French and Americans.

Now, visitors to the park can discover wildlife and also learn about local history through images and relics of past wars.

By Van Chau

Vietnam market is still very potential with Japanese Investors

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Japanese FDI inflow to Vietnam in 1Q/2018 is lower than South Korea and Singapore, but Mr. Mochizuki Masashi – Senior Director of Japanese Customers, who has more than 24 years of experience working at Sumitomo Mitsui Banking Corporation, says that it is too early to compare FDI in 2018 between countries investing in Vietnam. “We don’t worry too much about the ‘downtrend’ of Japanese investment,” he added.

Mr. Mochizuki Masashi – Senior Director of Japanese Customers

 

1. Reporter: When SMBC started its investment in Eximbank in 2008, it’s said that one of expectations of the Tokyo-based bank is increasing its support and financial services to Japanese customers in Vietnamese market. I am wondering whether SMBC has gained the targets.

Mr Mochizuki: Since the beginning of the strategic partnership, the 2 banks have built a mutual cooperation structure for supporting Japanese customers’ activities in Vietnam. In principle, Japanese customers are introduced by SMBC and we have enjoyed opportunities to transact with such Japanese customers. In return, we provide banking services which SMBC cannot provide in this market, such as retail services. Consequently, this synergetic collaboration can create value-added service for Japanese customers as well as attract more Japanese customers to transact with SMBC in Vietnam.

2. Reporter: In the first quarter of this year, Japanese investment in Vietnam is lower than others such as South Korea, Hong Kong and Singapore. As a strategic partner of Eximbank which is providing corporate advisory and financial services for Japanese investors, do you worry about that? Could you explain about such low investment from Japan in early months of the year?

Mr Mochizuki: In accordance with the statistics figures disclosed by GSO (General Statistics Office of Vietnam), Japanese direct investment to Vietnam is lagging behind compared with Korea and Singapore.
(FDI progress in 1Q 2018 / Top3)

However, as shown below, Japanese FDI showed a great result in 2017, and 1Q 2018 result above only consists small portion of total FDI capital.

(FDI achievements in 2017 / Top3)

Considering the situation, it can be said that it is too early to recognize/decide investment trend of 2018 at this moment, and we don’t worry too much about “downtrend” of Japanese investment.

3. Reporter: In recent years, many Japanese companies have increased their investment in agriculture, retail and financial services in Vietnam instead of manufacturing. What has Eximbank done to meet demands of those companies?

Mr Mochizuki: In addition to the conventional banking services, we’ve started variety of services to meet our Japanese customers’ demand, and supply chain financing is one of our focused programs which will support not only Japanese Investors but also Vietnamese local suppliers/distributors/end-users; and this program can be applied for many industries including food, agriculture sectors, and retail industry. Following the increasing trend of direct investment, we’ve started our support program for Japanese Direct Investors, and this program can streamline investment process and help achieve more investment in a variety of industries including financial services.
Regarding the strategic investment of SMBC at Eximbank, we talked further with Mr. Yutaka Moriwaki – Member of the Board of Directors – Senior Director and Head of the Eximbank Restructuring Project.

Mr. Yutaka Moriwaki – Member of the Board of Directors – Senior Director and Head of the Eximbank Restructuring Project

4. Reporter: As a strategic partner of Eximbank, what has SMBC done to provide technical support for the Vietnam-based bank as well as to enable the bank to meet Japanese standards, including corporate governance, quality and risk management?

Mr Moriwaki: Since the investment by SMBC on Eximbank in 2008, we have a Strategic Alliance Agreement aimed at mutually complementing know-how and experience of SMBC in the areas of wholesale and retail banking, corporate governance and other banking business.

5. Reporter: There have been ups and downs in Eximbank in recent years, what does SMBC evaluate the situation? Does SMBC decide to maintain its investment in the local bank?

Mr Moriwaki: I’m not in the position to comment on SMBC’s views, but from our own perspective as Eximbank’s representatives, Eximbank’s business trend is showing marked improvement under the current management.
I believe the most important mission now is to improve corporate governance as well as risk management platform to support sustainable growth.
That’s why Eximbank looks to SMBC to support not only for business promotion, but also for enhancing capabilities and knowledge transfer in other functions such as strategic planning and risk management.

6. Reporter: Eximbank used to be a strong and well-known bank, what is SMBC doing to help the bank take back the position?

Mr Moriwaki: Eximbank set up a Mid-term strategy recently. Among several initiatives, one example of SMBC’s support is to enhance trade finance solutions for corporate clients by special product skills as well as SMBC’s overseas network to regain “Export Import Bank” brand name.

7. Reporter: Could you share about business strategy of SMBC in Vietnamese market?

Mr Moriwaki: I’m not in the position to comment on the business strategy of SMBC. From Eximbank’s perspective, we appreciate the collaboration with SMBC by sending personnel and delivering expertise to support our initiatives including the current “New Eximbank” project.
Talking about progress of “New Eximbank”, in 2017, we focused on fixing problem of Eximbank foundation, namely, (1) HR system reformation, (2) Build Mid-term Strategy, and (3) Reorganization of HO to enhance support to sales network.
In 2018, we will start implementing Mid-term strategy in place.

8. Reporter: Could you share more about Mid-term strategy of Eximbank?

Mr Moriwaki: BOD has approved mid-term strategy earlier this year. Our goal is that Eximbank will regain market leadership position in some focused segments to be the leading high-quality commercial bank in Vietnam.
In business, while we are targeting to grow our total assets by 20%, we plan to improve NIM (Net Interest Margin) and fee business such as Bancassurance, Credit Card, and settlement business. SME/MME is the core customer base where we selected 10 focused industries to provide more customer-oriented products and services, while we also enhance business with Large corporate and FDIs leveraging on our trade finance solution capabilities.
For internal control, we will upgrade our IT to improve critical features such as Customer Relationship Management (CRM), and Management Information System (MIS), as well as credit risk management. In order to improve productivity of our operation, we will proceed with Centralization of operation.

In 2017, Eximbank announced “New Eximbank” project with the support from strategic partner, Sumitomo Mitsui Banking Corporation (SMBC). Objective of the project is to regain market leadership in Trade finance, enhance providing solution capability as well as building a solid customer base
In internal control, Eximbank is putting in place KPI and performance evaluation system, reviewing and reforming remuneration system, reorganizing Head Office in 7 divisions and reducing number of Deputy CEO, reviewing and reforming Credit Process

Thank you very much.

 

By Nguyet Tran, Vietnam Insider

Hue Festival exploding into life this holiday

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Event duration: 27 Apr 2018 – 02 May 2018

One of the most anticipated cultural events in Vietnam, the 10th Hue Festival invites travellers from all over the world to experience the unique heritage of Vietnam’s former imperial city. Elaborate performances will be staged at historical venues around Hue, including the Hue Citadel and An Dinh Palace. During the six-day festival there will also be street parades, sampan racing, a cuisine fair, and much more to look forward to.

Hue Festival, one of Vietnam’s largest which is held very two years, is coming back with artists from across the world. VNExpress International reports.

The festival will start with an opening ceremony at 8 p.m. on Friday, 27 April at Ngo Mon Square in the former imperial capital of Vietnam and wrap up on May 2.

Performing along 15 art troupes from Vietnam are 24 troupes from 19 other countries including Australia, Belgium Brazil, China, France, India, Mongolia, Morocco, the Philippines, South Korea, Thailand and the United Kingdom.

With its theme “Cultural Heritage with Integration and Development”, the week-long cultural event is accompanied by a street carnival, an international food festival and a hot air balloon show and dance performances.

The former royal city was the seat of the Nguyen Dynasty which ruled the country from 1802 until the end of feudal Vietnam in 1945, so traditional court music and dragon boat racing should also not be missed.

According to the information from Mr. Huynh Tien Dat, deputy director of the Hue Festival Center, the biggest highlight of the festival will be an art performance to honor five UNESCO-recognized world heritages including the complex of Hue monuments, royal court music, woodblocks, imperial archives of the Nguyen Dynasty and the Chinese-script poetry on Hue royal architectural works.

This would be a perfect opportunity for international visitors to see how the heritage city has come a long way from the imperial capital of Vietnam’s last ruling family to a rising tourism star in the central region, officials said.

Authorities are pinning their hopes on the festival to drive up the province’s tourism industry and help Thua Thien-Hue fulfill its target of drawing 4-4.2 million tourists this year, with foreign arrivals accounting for 40-45 percent, and fetching VND4.2 trillion ($185.2 million) in tourism revenues.

By Vo Thanh
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