Seventy-nine were killed and another 79 injured so far in 113 traffic accidents nationwide during the Vietnam Reunification Day-Labour Day holiday combo that ended on May 1.
The National Traffic Safety Committee of Vietnam reported and released on Vietnam News, number was recorded from the beginning of the holiday on April 28 until May 1 when people started flocking back to big cities like Hanoi and Ho Chi Minh City.
Thirty seven accidents occurred on May 1 alone, killing 27 road users and injuring 33.
The traffic situation this year was slightly improved compared to that in the same period last year. The number of crashes went down by 12 while tolls of dead and injured also decreased by 19 and 11 respectively.
Accidents disproportionately occurred on roads with 112 crashes, killing 78 and injured 79 people. Only one accident was recorded on the rail tracks.
The main reason for the accidents, according to the National Traffic Safety Committee, was drunk driving, speeding and driving without helmets or in the wrong lane. The majority of those who died were motorbike drivers.
The committee also noted serious congestion on a number of national highways and particularly the gateways to Hanoi and HCM City on the first and last days of the holiday as city folks left and returned to the cities.
It received more than 140 phone calls and messages from citizens to complain mostly about overcrowded and overpriced coaches running from Hà Nội to other provinces like Thanh Hoa, Nghe An, Ninh Binh, and Yen Bai and vice versa.
The traffic police forces nationwide reported to have dealt with 25,904 traffic violations during the holiday, levied fines of up to VND13.9 billion (US$619,500) and revoked 872 driving licences.
First four months of 2018, there were more than 6,000 traffic accidents, with over 2,700 fatalities and over 4,600 injured, a drop of 349 cases, seven fatalities and 483 injured compared with the same period last year. A report by Vietnamese National Traffic Safety Committee appeals.
Facebook just wrapped day one of its F8 developer conference keynote, which comes at an unfortunate time this year after the Cambridge Analytica data scandal seems to have put Facebook at odds with how it is handling user data within its developer community. Nevertheless, the show had to go on, and Mark Zuckerberg tried his best to keep developers excited about continuing to build on his platform.
The CEO spent a brief moment of the keynote rallying developers to keep building and using their skills to bring people together. To do so, the company unveiled several updates coming to its product lineup, including the core Facebook app, Instagram, Oculus, and WhatsApp.
FACEBOOK DATING IS COMING
Facebook is already a combination of several services you use online — Facebook Marketplace is to Craigslist as Stories is to Snapchat — and now it appears the social network is coming after Tinder next. Today, Zuckerberg announced that Facebook will soon offer a dating feature that allows people to browse potential matches at inside groups or events you’re interested in attending. The feature will allow people to message each other using only their first names, and start conversations that are separate from the core Facebook or Messenger app.
Facebook did not say when the feature will launch, but just minutes after the announcement, Tinder and OkCupid parent company Match Group saw its stock plummet as low as 20 percent from $46.22 to $36.12 per share at the time this article published.
OCULUS GO
The $199 standalone virtual reality headset from Facebook is now available for purchase after Amazon accidentally put preorders up hours before the official launch. The new Oculus Go will support social experiences like Watch Party, multiplayer games, and even live shows such as concerts and experiential theater.
In addition to the headset, there will now be an Oculus TV hub for users to stream content from ESPN, Netflix, Showtime, and more. Some of these services have been available via Hulu for some time, but the new hub should add more options for those investing in the new headset.
MESSENGER REVAMP
Facebook has already admitted that it’s allowed Messenger to become extremely bloated after unbundling it from the core Facebook app, and now, it looks to be simplifying — at least visually. Messenger VP of product David Marcus says the overall refresh is focused on making things cleaner and faster, with an upcoming dark mode teased in a short promotional video.
ALL-IN ON INSTAGRAM STORIES
Most of the updates for Instagram today arrive to the app’s most popular feature to date: Stories. Soon, users will be able to user AR face filters from brands and influencers without waiting for Instagram to release its own. Users will also get more third-party integrations when uploading a story. For example, a GoPro clip could be cropped and ported right to Instagram Stories or you can share what you’re currently listening to on Spotify while offering a deep link within a story to open that song in a viewer’s own Spotify app.
Instagram is also continuing to transform into a full-fledged messaging app, with new video calling features that will allow group conferencing as well.
WHATSAPP GETS A FEW UPDATES, TOO
After a moment of thanking WhatsApp founder Jan Koum in regards to his recent departure, Facebook moved right into sharing stories about how impactful WhatsApp has been around the world. The Stories feature also appears to be taking off well on WhatsApp: Facebook revealed that 450 million users share a story on WhatsApp daily. Additionally, 65 billion messages are sent on WhatsApp every day.
While WhatsApp is not getting a refresh quite as dramatic as Messenger, it will be receiving a few minor updates such as group video calls and stickers. Features targeted at businesses are to come, though the company did not outline specifically what during the keynote.
Perhaps what Facebook didn’t say is equally important to note. During the keynote, Zuckerberg did not mention Cambridge Analytica’s Aleksandr Kogan at all, and he only used moments in the opening remarks to poke fun at himself about when he testified in Congress early last month and to inform developers that app reviews are back on after a brief pause to investigate potential bad actors. Clearly, it was a move to excite developers than warn them — with Zuckerberg looking and sounding more upbeat than he has been in recent public appearances.
Twitter user Jane Wong has done some digging through Instagram’s code and in the process discovered several unreleased features that could be released in the future.
Instagram is reportedly testing these features with some users, but has yet to officially announce them. It’s possible these features might never see the light of day. We’ve reached out to Instagram for comment.
But if Instagram does release them, Snapchat might be in deep trouble. The new features would give Instagram users more control over their account and content and further drive them to dump Snap.
Mute users
I’m pretty sure we all want the ability to mute a user without offending them with an unfollow. Whether it’s a muting co-worker or annoying friend, giving users a mute button would be a godsend.
Slow-motion for Stories
Instagram Stories is already larger than all of Snapchat and adding new features will only further that lead. In recent months, Instagram’s added a “Type” feature that lets users write text-based stories and a “Focus” feature that takes portrait-style photos and videos with a blurred background.
Calendar view for Instagram Stories archive
Currently, you can see your archived Instagram Stories in a grid. But wouldn’t it be nicer if it was a little easier to browse through? Enter: calendar view.
Calendar view looks like a much cleaner way to see how often you post to Stories.
Video calling
Rumor has it Instagram is preparing to bring a video calling feature to the app. Snapchat already lets users video call with each other and while this would be another catch-up feature, it’d be yet another way to keep locked within its walls. Who needs Snapchat, FaceTime or Skype if Instagram lets you do it?
Ivanhoe Pictures has partnered with Pacific Horizon Pictures to devise a slate of local-language films in Vietnam.
Among their first planned movies is a remake of Indian survival drama “Trapped.” The pair are also close to a joint acquisition of remake rights to Colombian thriller “The Hidden Face.” The variety.com – a subsidiary of Penske Business Media, LLC reported.
The ambition is for the two companies to co-develop material, that Ivanhoe will co-finance and which Pacific Horizon would executive produce for audiences in Vietnam.
Pacific Horizon is a startup production company founded by Louie Nguyen investor and producer at HK Films (“Sweet Twenty,” “The Housemaid”,) and by veteran U.S. producer Rick Ambros. It has offices in Ho Chi Minh City and Los Angeles.
“(Pacific Horizon Pictures’) insight and understanding of the Vietnamese film industry is invaluable and we are eager to continue expanding Ivanhoe’s local language slate with this exciting partnership,” said John Penotti, president and CEO of Ivanhoe.
Ivanhoe’s upcoming projects include the Warner Bros. co-production “Crazy Rich Asians,” set for release in the U.S. on August 17, 2018; and the 3-part Netflix series “Ghoul,” a Hindi-language thriller produced by Ivanhoe, Blumhouse Productions, and Phantom Films set to premiere on Netflix India in 2018. Ivanhoe also has a four-year, multi-picture co-financing pact with Fox International Productions (FIP) to produce local-language films in India, South Korea, China, Japan, and Taiwan.
Vietnam manufacturing growth picks up in April with sharp increase in new orders and output, particularly strengthening firms in export markets, according to an industry gauge. A report by Nikkei mentioned.
The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, rose to 52.7 in April, up from 51.6 in March. A reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity.
With the rise of client demand, production rose at faster rate. Employments growth has been registered in 25 successive months. However sharp input cost inflation contrasts with weak pace of rise in output prices.
Andrew Harker, Associate Director at HIS Markit which compiles the survey, said “the ability of Vietnamese manufacturers to secure new business was at the forefront of the latest PMI survey, with new export business up particularly sharply in April.” Harker adds that their “competitive pricing” explains their “will to accept reduced margins in exchange for securing greater volumes of new work.”
Best Western Hotels & Resorts has plans to open a new BW Premier Collection beachfront resort in Vung Tau, Vietnam.
The Saint Simeon Resort, BW Premier Collection is currently under construction in Ba Ria-Vung Tau province on Vietnam’s south-central coast. The 135-room hotel is opening in the first quarter of 2019 and is near Ho Chi Minh City and Long Thanh International Airport.
“Best Western continues to expand across Asia at a rapid pace–introducing new brands and welcoming new hotels tailored to meet the needs of today’s travelers,” Ron Pohl, SVP and COO for Best Western Hotels & Resorts, said in a statement. “We’re excited to bring the BW Premier Collection brand to Vietnam, as its hotels are known for their local flare and upscale amenities-delivering a truly unique guest experience. We look forward to Saint Simeon Resort becoming a preferred hotel for travelers visiting the beautiful port city of Vung Tau.”
“Vietnam is an important market for Best Western and we are delighted to secure yet another fantastic property in such an exciting destination-Vung Tau,” Olivier Berrivin, Best Western’s MD of international operations, Asia, said in a statement. “With its prime beachfront location and close proximity to Ho Chi Minh City, we fully expect this elegant resort to become extremely popular with local and international guests alike.”
Saint Simeon Resort will be the company’s fourth BW Premier Collection property in Asia. The brand’s first property in the region—the Hotel Nagasaki, BW Premier Collection in Japan—opened in 2017. Amaranth Suvarnabhumi Airport recently joined the BW Premier Collection portfolio in Thailand. Construction is also underway on the brand’s second Thai hotel, BluPhere Pattaya, BW Premier Collection. The property is slated to open in 2019.
The Saint Simeon Resort will also be Best Western’s second property in Vietnam. The group also has plans to develop a Best Western Premier hotel and resort in the southern island of Phu Quoc. The 565-room Best Western Premier Sonasea Phu Quoc is expected to open in January 2019.
PV Gas forecasts lower earnings for 2018
The PetroVietnam Gas Corporation (PV Gas), a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam), is targeting 55.7 trillion VND (2.47 billion USD) in its total revenue and 6.43 trillion VND (283.2 million USD) in post-tax profit for 2018, heard the company’s annual shareholder meeting last week. — VietnamPlus
Vietnam’s Vingroup drives industrialization with diversification
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. — Nikkei Asian Review/ VI
EC delegation to inspect IUU fishing in Vietnam
The delegation will inspect the country’s implementation of the EC’s nine recommendations related to the fight against illegal, unreported and unregulated (IUU) fishing. — VietnamNet Bridge
NSRP releases first commercial petroleum product
Nghi Sơn Refinery and Petrochemical LLC (NSRP) in Nghi Sơn Economic Zone in Thanh Hóa Province launched its first shipment of refined product, GASOLINE RON 92 (MOGAS92), on May 1. — Viet Nam News
Recent Agribank thefts may have featured skimming devices
A set of skimming devices includes an ultra-small camera set up with a sighting on the ATM’s keypad, a card skimmer inserted into the card slot, and a keypad skimmer placed over the ATM’s keypad. — VietnamNet Bridge
Slovakia May Have Assisted in Vietnam’s Alleged Abduction of Oil Executive: Reports
Slovakia may have inadvertently assisted Vietnam’s secret police in spiriting away a former state oil executive who was allegedly kidnapped from Germany, according to media reports and sources, who say fallout from the incident has “cast a shadow” on a trade deal between Vietnam and the EU. — Radio Free Asia
Goods, services sales value in April up 9.5%
The total retail sales value of goods and services in April was estimated at more than VND 350.5 trillion (US$ 15.4 billion), 1.7% higher than last month and 9.5% higher than in the same period last year, according to a report by the General Statistics Office (GSO). — Nhan Dan Online
Vietnam’s largest casino to open gates next year
Macau’s biggest junket operator Suncity Group Holdings Ltd. is undaunted in its ambition to start operating Vietnam’s largest casino in the central province of Quang Nam. The project is expected to be launched next year. — VietnamNet Bridge
From Doi Moi reforms to Vietnamese billionaires
After more than 30 years of Doi Moi, the Vietnamese economy has begun to see its own local billionaires who while contributing to national development, are in need of a facilitating environment to continue prospering. — VietnamNet Bridge
Salinity intrusion is leading to freshwater troubles in coastal Vietnam
In recent years, increased salinity intrusion in the Mekong Delta, due to changing climate and fluctuations in river water levels especially during the dry season in coastal regions, has affected agriculture especially rice farming livelihoods. — Mekong commons
HCM City to get high-quality farm products from Long An
Agricultural businesses in the Mekong Delta province of Long An are looking at ways to increase supplies of their products to Ho Chi Minh City, the largest economic centre in the southern region. — VietnamPlus
ACA Investments pours extra $100 million in retail and logistics ops
ACA Investments, Japan’s leading fund management company and an affiliate of Sumitomo Corporation, will spend $100 million on conducting M&A deals in the retail and logistics sectors in order to increase its presence in Vietnam. — VietnamNet Bridge
Eximbank embattled after scandals
Eximbank is facing an uphill battle to regain the trust of its shareholders and depositors, following a series of embezzlement and fraud scandals. — VietnamNet Bridge
S Korea appoints ex-Samsung executive as Vietnam ambassador
South Korea has been criticised for naming Kim Do-hyun, a former Samsung executive, as the country’s new ambassador to Vietnam, home to one of the electronics group’s biggest operations. — Financial Times
Vietcombank breaks its earning record of all time Bank for Foreign Trade of Vietnam (Vietcombank, HSX: VCB) continued its impressive performance in the first quarter of 2018, posting pre-tax profit record high of more than 4.3 trillion VND (189.4 million USD). — Vietnam Insider
The number of foreign visitors arriving in Vietnam in April was estimated at 1.3 million, raising the total figure for the first four months of 2018 to 5.5 million, up 29.5% over the same period last year.
The Nhan Dan Online, a local news channel reports. Foreign tourists visiting Vietnam in April rose 25.2%, attracted by a wide range of events such as the Festival of Vietnamese Ethnic Groups in Hanoi, and the Asian Food and Culture Festival in Hanoi and Quang Ninh province.
Of the total visitors in the first four months, 4.1 million came from Asia, with Chinese tourists topping the list at 1.7 million, followed by 1.1 million from the Republic of Korea.
Visitors from Europe were estimated at more than 843,000, of which Russian tourists accounted for the largest share at an estimated 262,000.
The numbers of tourists coming from the Americas and Oceania were 357,000 and 163,000 respectively.
During the period, nearly 15,000 Africans tourists also visited Vietnam, an annual increase of 22.5%.
Bank for Foreign Trade of Vietnam (Vietcombank, HSX: VCB) continued its impressive performance in the first quarter of 2018, posting pre-tax profit record high of more than 4.3 trillion VND (189.4 million USD).
Vietnam News Agency reported. According to the accumulated financial report of Vietcombank, which had posted a record pre-tax profit of more than 11 trillion VND (484.5 million USD) last year, its pre-tax profit in the first quarter of 2018 skyrocketed by 59.3 percent against the same period in 2017, the highest quarterly growth rate gained by the bank so far. With this surge, the bank met one third of its annual plan by the end of March.
In the first quarter of this year, the bank’s credit segment brought in more than 6.19 trillion VND (272.6 million USD) of net profit, up 17S.5 percent compared to the same period last year. Its net profit in the service segment posted a surge of 35.5 percent to 881 billion VND (38.8 million USD).
Net profits from other services accounted for 1.6 trillion VND (70.4 million USD) from January to March, 2.8 times higher than the first quarter of 2017, while capital contribution and share acquisition were estimated at 351 billion VND (15.4 million USD), 3.5 times higher than that of the first quarter.
Vietcombank set aside 66.71 trillion VND (2.93 billion USD) in the first quarter to buy bills issued by the State Treasury and the State Bank of Vietnam, raising its total value of the investment channel to 68.71 trillion VND (3 billion USD) by the end of March.
The bank’s equity was at 56 trillion VND (2.46 billion USD) as of March 31, 2018, up 6.7 percent compared to the start of the year. Its deposits were at 731 trillion VND (32.2 billion USD), up 3.2 percent, while lending rose by 6.29 percent to 577.6 trillion VND (25.44 billion USD).
The bank expects its total assets to grow by 14 percent and capital mobilisation and credit to grow by 15 percent, while keeping bad debt to less than 1.5 percent.
Advertising company WPP PLC (WPP.LN) said Tuesday that it has acquired full ownership of a number of agencies in the Asia-Pacific region for an undisclosed price in a share swap with Japan’s Dentsu Inc. (4324.TO). MarketWatch reports.
WPP said it has acquired full control of the Y&R and Wunderman joint-venture agency assets across Southeast Asia and in Taiwan, as well as Dentsu Sudler & Hennessey in Japan.
The deal includes Y&R in Vietnam, Malaysia, Singapore and Thailand; as well as Wunderman in Taiwan and Thailand, said WPP.
In exchange, Dentsu has acquired full control of the Dentsu Y&R and Wunderman Dentsu agencies in Japan, the Japanese company said in a statement.
WPP said the deal marks its commitment to expanding in key markets via a “strong pan-Asian network offering,” and that its Asia-Pacific companies generate revenue of almost $4.8 billion, including associates.
On Monday, WPP said a strategic review of its assets is underway in the wake of the surprise exit of former chief executive Martin Sorrell due to an internal probe into an allegation of personal misconduct.
Joint Chief Operating Officer Mark Read told analysts in a call on Monday that selling down some of WPP’s minority stakes is an option to reduce the company’s debt.
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.
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.
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.
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.
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.
