BUSINESS NEWS IN BRIEF 4/8

PetroVietnam signs deals on Sao Vang-Dai Nguyet gas field exploitation

A series of trade agreements on exploiting the Sao Vang-Dai Nguyet gas field was inked between the Vietnam National Oil and Gas Group (PetroVietnam) and its partners in Hanoi on July 31.

The agreements included a gas sales and purchase and a gas supply agreement. 

The stakeholder participation in the Petroleum Sharing Contract includes the operator Idemitsu Kosan Co Ltd with 43.08 percent; Teikoku Oil (Con Son) Co Ltd, 36.92 percent; and PetroVietnam, 20 percent.

Speaking at the signing ceremony, PVN General Director Nguyen Vu Truong Son said the signing of trade agreements achieved after over two years of negotiations among sides involved.

He said the event is very significant for the gas filed to turn out the first flow of oil and gas in the third quarter of 2020, with an estimated annual output of 1.5 billion cubic metres of gas and of 2.8 million barrels of crude oil and natural-gas condensate.

The production of oil and gas from the Sao Vang-Dai Nguyet field will contribute to the country’s budget collection and ensure gas supply for the southeast region, He stated

The Sao Vang-Dai Nguyet gas field is located in Nam Con Son Basin, approximately 300km south-east offshore Vung Tau City at about 110-130m water depth.

Earlier, on August 4, 2016, the Prime Minister issued Decision No 1550/QD-TTg approving petroleum reserves of the Sao Vang-Dai Nguyet field as the basis for the development of the field.

On March 7, 2017, the Ministry of Industry and Trade issued Decision No.706/QD-BCT approving the outline development plan. Nine months later, the Prime Minister issued Decision No 1996/QD-TTg approving the field development plan.-VNA

Vietnam – attractive destination of Chinese enterprises

Chinese enterprises are eyeing to expand their business and investment in the Association of Southeast Asian Nations (ASEAN), in which Vietnam is considered one of the most attractive destinations.

The statement was made by Guo Chuan Wei, Director in charge of trade and investment at the ASEAN-China Centre (ACC) at the Vietnam-China Trade Forum held by the Vietnam Chamber of Commerce and Industry – Ho Chi Minh City chapter, the ACC, and the Department of Commerce of China’s Jilin province on August 2.

Guo said that China is an economy with strong production capacity, and its enterprises are constantly expanding their presence abroad. Meanwhile, Vietnam has an impressive economic growth in Southeast Asia. In addition, the two countries hold a lot of advantages complementary to each other and have geological positions favourable to trade exchange.

They are the reasons why Chinese firms want to expand cooperation with Vietnam, he added.

Secretary of Jilin’s provincial Party Committee Ba Yin Chao Lu told participants that Chinese firms in general and those in Jilin in particular have been expanding trade and investment activities in Vietnam, with attention paid to potential areas of automobile manufacturing and assembly, and farm produce import and export.

He said Jilin will encourage its big companies to do business in Vietnam while inviting Vietnamese firms to invest in the province. 

VCCI Deputy Chairman Vo Tan Thanh highlighted the fact that China is currently one of the largest and potential markets of Vietnam.

Last year, two-way trade exceeded 93.6 billion USD, accounting for 22 percent of Vietnam’s total foreign trade. The bilateral trade value reached 38.7 billion USD in the first five months of 2018 and is likely to surpass 100 billion USD for the first time this year.

As of April, China ranked seventh out of 126 nations and territories investing in Vietnam with nearly 1,900 projects worth over 12.5 billion USD.

Seen from the local aspect, Nguyen Huynh Trang, deputy director of Ho Chi Minh City’s Department of Industry and Trade, said that as of July, China ranked 19th among 98 nations and territories pouring capital into the city with 126 projects and total investment capital of nearly 158 million USD. The city’s exports to and imports from China both recorded a year-on-year rise of 15 percent in the first half of this year.

According to Trang, there remains a lot of potential for cooperation between the city and Chinese localities, including Jilin.

Intensifying exchanges between businesses, and trade and investment promotion will create good opportunities for the two sides’ enterprises to establish long-term and effective cooperation, she added.

Symposium talks information security in businesses

Vietbuild Can Tho 2018 opens

The Vietbuild Can Tho 2018 International Exhibition, a traditional playground for domestic and foreign construction and real estate exhibitors, opened in the Mekong Delta city of Can Tho on August 2. 

Speaking at the opening ceremony, Chairman of the Vietnam National Real Estate Association Nguyen Tran Nam said visitors could meet design consultants and see new construction materials, real estate projects, advanced technologies used for interior and exterior décor, and necessary household utensils. 

In particular, many green construction materials, electrical devices, systems for smart homes are also on display. 

According to the organising board, the exhibition attracts features 600 stalls of more than 200 exhibitors, including 178 domestic and 29 joint ventures and foreign ones from nine countries and territories worldwide, namely the US, Germany, UK, Japan, the Republic of Korea, Thailand, Malaysia and China. 

A seminar on environment protection in cement production, daily night music shows, and an exchange with businesses will also be held.

The event will last till August 6.

Cần Thơ told to build brand names for farm produce

Businesses in the Cuu Long (Mekong Delta) city of Can Tho are facing challenges providing clean agricultural products that conform to international standards, experts said on July 31 at a seminar held in the city.

Tran Giang Khue, deputy head of the National Office of Intellectual Property in HCM City, said that enterprises should be aware of branding, which plays a major role in the operation of an enterprise.

“Branding of a product is an intangible asset which will increase value over time,” he said. “Branding and intellectual property rights should be a top priority.”

As soon as a business has a creative idea or invention, it should proceed with intellectual property protection activities immediately to protect business secrets, including solutions, designs and trademarks, he added.

When intellectual property rights are ensured, company competitiveness is improved, which encourages creativity and sustainable development.

Nguyen Hoang Cung, director of Dai Thuan Thien Clean Agricultural Products Co. Ltd, said that businesses should seek to acquire certificates needed to protect their intellectual property rights.

Businesses should differentiate themselves from other rivals and have a strong commitment to product quality, which is the core value of a brand, he said.

When dealing with farmers, companies should help them become aware of their responsibilities, such as strictly following contracts and not breaking contracts when other traders offer higher purchase prices.

Businesses also need to strictly control the buying of products from farmers to create “clean and competitive” agricultural products not only in the country but also for the international market.

A representative of Thanh Dat Clean Agricultural Cooperative in Vinh Thanh District said the challenges for clean agricultural produce suppliers included high costs and strict procedures.

He said that customers without awareness of product quality often expect a much cheaper price.

Experts recommended that businesses work closely with the media to disseminate information to customers about clean products and to inform them that higher prices may result.

Enterprises also need more support from promotion centres and reputable distribution channels in order to create consumer trust about their product quality.

In addition, enterprises need to seek markets when starting the first steps of production instead of delaying when the products are ready for sale.

Enterprises should also establish their prestige through the Corporate Social Responsibility (CSR) Pyramid, which includes economic, legal, ethical and philanthropic domains, experts said.

The top of the pyramid is the philanthropic domain, indicating that benefits produced by businesses go beyond society’s expectations.

The seminar was held by the Department of Science and Technology in collaboration with the National Office of Intellectual Property under the Ministry of Science and Technology, and the Can Tho Farmers Association.

Solutions to building farm produce brand names in Can Tho discussed

Businesses in the Mekong Delta city of Can Tho are facing challenges providing clean agricultural products that conform to international standards, experts said on July 31 at a workshop held in the city.

Tran Giang Khue, deputy head of the National Office of Intellectual Property in Ho Chi Minh City, said that enterprises should be aware of branding, which plays a major role in the operation of an enterprise.

“Branding and intellectual property rights should be a top priority, he said, adding as soon as a business has a creative idea or invention, it should proceed with intellectual property protection activities immediately to protect business secrets, including solutions, designs and trademarks.

When intellectual property rights are ensured, company competitiveness is improved, which encourages creativity and sustainable development.

Nguyen Hoang Cung, Director of Dai Thuan Thien Clean Agricultural Products Co. Ltd, said that businesses should seek to acquire certificates needed to protect their intellectual property rights.

Businesses should differentiate themselves from other rivals and have a strong commitment to product quality, which is the core value of a brand, he said.

When dealing with farmers, companies should help them become aware of their responsibilities, such as strictly following contracts and not breaking contracts when other traders offer higher purchase prices.

Businesses also need to strictly control the buying of products from farmers to create “clean and competitive” agricultural products not only in the country but also for the international market.

A representative of Thanh Dat Clean Agricultural Cooperative in Vinh Thanh district said the challenges for clean agricultural produce suppliers included high costs and strict procedures.

He said that customers without awareness of product quality often expect a much cheaper price.

Experts recommended that businesses work closely with the media to disseminate information to customers about clean products and to inform them that higher prices may result.

Enterprises also need more support from promotion centres and reputable distribution channels in order to create consumer trust about their product quality.

In addition, enterprises need to seek markets when starting the first steps of production instead of delaying when the products are ready for sale.

Enterprises should also establish their prestige through the Corporate Social Responsibility (CSR) Pyramid, which includes economic, legal, ethical and philanthropic domains, experts said. 

The top of the pyramid is the philanthropic domain, indicating that benefits produced by businesses go beyond society’s expectations.

The event was held by the Department of Science and Technology in collaboration with the National Office of Intellectual Property under the Ministry of Science and Technology, and the Can Tho Farmers Association.

Textile export earnings forecast to up 1 bln USD against target

Vietnam’s garment-textile export turnover is expected to hit 18.5 billion USD in the second half of 2018, bringing the year’s export value to 35 billion USD, 1 billion USD higher than the target set for the year, heard a press conference in Hanoi on July 30. 

According to CEO of the Vietnam National Textile and Garment Group (Vinatex) Cao Huy Hieu, enterprises need to build production and business strategies, focusing on using technologies in production, calling for investment and improving the quality of labourers.

Garment firms were also advised to increase investment for design, and fostering original design manufacturing to increase added value for their products. 

They should also make great efforts to increase labour productivity, Hieu added.

To reach double-digit growth in the year, Vietnamese garment-textile firms should adapt to the market situation in tandem with expanding sales domestically and diversifying products, he stressed. 

The country’s garment-textile export turnover hit 16.5 billion USD in the first six months of 2018, up 16.49 percent compared to the same period last year. 

Notably, garment items contributed 12.86 billion USD to the total, up 15.27 percent year-on-year. Meanwhile, the revenue from fabric overseas shipments reached 787 million USD, a yearly rise of 31.83 percent. 

Strong export growth was reported in most traditional markets for Vietnam’s textiles, including the US, the EU, the Republic of Korea (RoK), China, ASEAN and member nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

Items with good growth in the period were fabrics, T-shirts, jackets and dresses. 

Vietnam is among the world’s five biggest garment-textile exporters and producers.  Experts said Vietnam has many opportunities to expand in the field thanks to free trade agreements. 

The signing of the European Union – Vietnam Free Trade Agreement in 2018 is hoped to help Vietnam’s textile and garment industry make deeper inroads into this market. 

In 2017, the garment-textile sector raked in 31.2 billion USD from exports, a year-on-year rise of 10.23 percent.

FDI firms in Binh Duong call for increased overtime hours of workers

A majority of foreign-invested firms in the southern province of Binh Duong asked for workers’ overtime maximum to be increased to raise production efficiency while meeting with the local administration on July 30.

A representative of the Rheem Vietnam Co. Ltd, based at the Dong An 2 Industrial Park, said workers’ overtime maximum being limited at 30 hours each month and 200 hours a year (300 hours in special situations) is hindering businesses’ operations.

Their activities now depend much on “business seasons”, especially unplanned orders, so it is necessary to ask employees to work overtime, it said, asking the People’s Committee of Binh Duong province to propose authorised agencies increase workers’ overtime limit.

The firm said labourers also want more overtime so they can earn more money.

Echoing the view, a representative of the Mondelez Kinh Do Vietnam JSC, based at the Vietnam-Singapore Industrial Park 2, said the overtime maximum of 300 hours is unfeasible as it is not easy to recruit new workers, so most businesses have to exceed this limit. Authorised agencies should raise workers’ overtime hours to match the reality, the representative said.

At the dialogue, Deputy Director of the provincial Department of Labour, War Invalids and Social Affairs Pham Van Tuyen admitted that regulations on overtime hours are an obstacle to businesses. He promised submitting proposals to relevant agencies to have suitable solutions.

Many other problems relating to customs procedures, social insurance for foreigners or investment incentives were also pointed out by foreign direct investment (FDI) firms at the event.

Secretary of the provincial Party Committee Tran Van Nam assured that Binh Duong will always provide the best conditions for foreign enterprises. Investors’ opinions will help the province improve the local investment climate, he said.

Issues under the provincial administration’s jurisdiction will be solved as soon as possible while those under central agencies will be gathered and sent to relevant units, he noted.

Binh Duong, an industrial hub in the south of Vietnam, currently ranks third in FDI attraction, after Ho Chi Minh City and Hanoi, with 3,397 projects worth 30.9 billion USD. In the first half of 2018, it attracted 718 million USD of foreign investment.

Forum talks technological application in energy use

Intensifying technological application to increase energy efficiency is one of the important solutions to challenges facing the domestic energy sector, heard a forum in Hanoi on July 31.

Deputy Minister of Science and Technology Tran Van Tung pointed out that to meet the increasing demand for energy, Vietnam has maximised hydropower at home, while importing primary energy to serve electricity production. 

Therefore, it is necessary to diversify the supply source of new and renewable energy; as well as improve the capacity, efficiency, sustainability, and adaptation of the domestic energy sector, he said. 

The official also stressed the need to fulfill international commitments towards sustainable development goals. 

Other delegates at the forum said that Vietnam has shifted from an agricultural-based economy, using traditional fuels, to an industrial one fueled by synthetic and modern energy forms. 

Nguyen Van Thanh, deputy head of the Electricity and Renewable Energy Department under the Ministry of Industry and Trade, said that Vietnam’s demand for commercial energy has increased 9.5 percent during the 2000-2015 period, which is higher than the country’s GDP growth during the period. In particular, hydroelectricity saw an annual rise of 27.6 percent; coal, 12.2 percent; petroleum, 6.2 percent; and natural gas, 13.4 percent. 

Delegates said Dung Quat and Nghi Son Oil Refineries are expected to fulfil only 16.5 percent of the target of 20-30 million tonnes of crude oil set by 2020, thus affecting the implementation of the national energy development strategy by 2020 with a vision towards 2050. 

Given this, the Vietnamese Government has rolled out a policy framework aiming to diversify its energy supply source, developing new and renewable energy, particularly solar and wind power, they noted. 

The Ministry of Science and Technology will also work on the application of new and renewable energy, as well as scientific and technological solutions, to efficiently and economically make use of energy. 

At the same time, the ministry will step up international integration to apply the world’s scientific and technological advances in manufacturing energy equipment. 

Hoa Phat enjoys 27 percent profit growth in H1

Hoa Phat has posted revenue and post-tax profit gains of nearly 27.6 trillion VND (over 1.19 billion USD) and over 4.4 trillion VND (190 million USD) in the first half of 2018, representing rises of 30 percent and 27 percent from the same period last year, respectively.

The results mean that the group has already completed 55 percent of its annual profit target of 55 trillion in revenue and 8.05 trillion VND in after-tax profit this year. 

In the second quarter alone, Hoa Phat’s revenue hit over 14.4 trillion VND (over 621.5 million USD), while its post-tax profit stood at 2.2 trillion VND (94.9 million USD), a respective 34 percent and 43 percent higher than those of the corresponding period last year.

The firm produced 1.1 million tonnes of construction steel in the first six months, a slight increase from the same period last year.

Hoa Phat has still maintained its leading position in the country’s steel industry with a market share of 22.2 percent as its products are mostly consumed domestically.

Its high-quality wire rod steel products have continued to receive orders from both inside and outside the country. It sold a total of 116,00 tonnes of this product, including 58,000 tonnes to Australia, Japan, Malaysia, and the Philippines, accounting for more than half of its export volume.

More investment needed for agriculture sector

Vietnam’s agriculture sector, from production to exports, has developed impressively in recent times, but its progress is still yet to meet its full potential.

To develop the sector sustainably, the Government and relevant ministries have carried out a number of preferential policies, but the number of enterprises investing in this field remains quite modest.

According to the Ministry of Planning and Investment, as of June 30, only 49,600 enterprises (or 8 percent of the nation’s total firms) invested in agriculture.

Many enterprises said that although the State and localities have paid special attention to investing in infrastructure serving agricultural production, the infrastructure, in fact, has yet to meet their requirements.

In addition, land-related policies have often failed to meet businesses’ expectations. The mechanical industry supporting agriculture also remains limited, with many prevailing unreasonable administrative procedures and business conditions.

Do Ha Nam, General Director of Intimex Group JSC, said that agricultural exports are facing difficulties during their transportation phase. Some of the key roads experience regular traffic congestions, while seaports are often overloaded. Unsmooth logistics affect the quality of farm produce, as well as costs and timing of business deals as vegetables and fruit have limited expiration dates.

Improving logistics infrastructure to facilitate the travel of goods will help attract more investors in agriculture and boost the development of other production sectors, Nam added.

Acknowledging this issue, on April 17, the Government issued Decree No.57 on encouraging businesses to invest in agriculture and rural areas, which reflected its resolve to improve investment attraction in this field.

However, Ho Quoc Luc, Managing Director of Sao Ta Foods JSC in Soc Trang province, said that although the decree has a lot of positive adjustments and preferential policies to develop the agricultural sector, there is no document guiding the implementation of the decree.

As such, in order to find an effective solution for agricultural development, a national conference seeking ways to encourage enterprises to invest in agriculture commenced in the Central Highlands province of Lam Dong on July 30. 

Simplification of business conditions remains limited: conference

The speed of red tape cutbacks for business conditions still remains limited in spite of great efforts made by the Government and relevant ministries and sectors, heard a conference held by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on July 31. 

Speaking at the event, VCCI Chairman Vu Tien Loc said that businesses have only seen a few points in the framework adjusted, rather than the complete abolishment of the bottlenecks, adding that this causes a lot of anxiety for businesses. 

According to reports from the VCCI, about 1,000 legal documents are issued annually, with about 50 percent related to businesses. 

There are around 10-20 laws adopted by the National Assembly and 200 decrees and decisions issued by the Prime Minister each year. The remaining stipulations are circulars issued by various ministries and ministry-level agencies. 

Loc said that over the past two years, there has been a clear trend of economic institutions becoming increasingly oriented towards the market economy, adding that business barriers and excessive State intervention in the market have gradually been removed. 

The Government has asserted its views on market economy institutions, but the translation of these views into specific legal regulations is still restricted, Loc stressed. 

However, the situation showed positive changes in the first half of 2018, with many legal documents issued to remove difficulties for enterprises, especially decree-level documents. 

Dau Anh Tuan, head of VCCI’s legal department, highlighted efforts made by the Government and relevant agencies in the first six month of the year to cut down business conditions, saying that they helped remove barriers facing enterprises’ activities. 

He also pointed out results in administrative reform, which contributed to reducing the burden of State administrative management. 

The transparency of court judgments in business disputes has helped promote fair and credible competition that is protected by the justice system. 

For examples, there are new decrees on business conditions in areas under the management of the Ministry of Industry and Trade, in particular Decree No.87/2018/ND-CP on gas business, and Decree No.109/2010/ND-CP on rice exports, Tuan said. 

Legal provisions on the quality of products and goods, and technical standards are also the focus of the Government’s business law reform in line with the market economy, he noted. 

At the beginning of 2018, a number of regulations related to quality control of commodities were also issued that will have a great impact on businesses, Tuan said.

Decree No.15/2018/ND-CP on food safety is truly revolutionary as it brings great benefits to food firms that are struggling with procedures concerning food safety, he noted. 

At the conference, VCCI representatives suggested enhancing the business community’s consultation in legal review work, promoting supervision mechanisms, and expanding proposals in adjustment schemes of business-related laws set out by ministries. 

Vietnam-Argentina business forum held in Hanoi

A Vietnam-Argentina business forum took place in Hanoi on July 31 as one of the activities during the official visit to Vietnam by Argentine Minister of Foreign Affairs and Worship Jorge Faurie.

Addressing the function, co-hosted by the Argentine Embassy in Vietnam and the Vietnamese Ministry of Industry and Trade, Minister Jorge Faurie said he is pleased with the fine bilateral relations and the growth in two-way trade.

He stressed that celebrating the 45th anniversary of bilateral diplomatic ties (October 25, 1973-2018) is an important milestone in the cooperation between the two nations. 

He expressed his hope that the Vietnam-Argentina relationship will continue to thrive in the time to come with the increase of visits and all-level delegation exchanges.

Argentina will do its best to boost and diversify trade ties and multi-faceted cooperation with Vietnam, he said, adding that Argentine businesses pay attention to collaboration in biodiversity, services, pharmaceuticals and technology with Vietnam.

Affirming Argentina as the second largest trade partner of Vietnam in the Latin American region, Doan Thi Thu Thuy, deputy head of the Ministry of Industry and Trade’s Trade Promotion Department, said Vietnam is the fifth largest import market of Argentina globally.

Two-way trade has seen encouraging growth in recent years, hitting 3 billion USD in 2017. Vietnam exports to Argentina garment materials, footwear, machinery, equipment and spare parts, while importing animal feed, materials, corn, wheat and some seafood products from the Latin American country.

These outcomes reflect the efforts made by diplomatic, economic, industrial and agricultural agencies of the two countries, Thuy said, adding that trade connection activities have been organised regularly and effectively with the active and responsible engagement of both sides’ business communities.

At the forum, representatives from Vietnamese and Argentine businesses studied bilateral trade and economic relations and investment opportunities as well as promoted connections in the fields of foodstuff, processed food, beverages, fruit, animal feed and pharmaceuticals.

Vietjet Air reports robust growth in revenue

Vietjet Air announced its business results in the second quarter of 2018 with the robust growth in core business activities, including air transport and ancillary revenue. 

Air transport revenue in the second quarter reached 8,588 billion VND (378.3 million USD) compared to 5,648 billion VND (248.8 million USD) in the same period of 2017 (an increase of 52.05 percent). Profit before tax of air transport in the second quarter reached over 950 billion VND (41.8 million USD) compared to 661 billion VND (29.1 million USD) in the same period last year (an increase of 43,7 percent). In which the proportion of ancillary revenue was up to 24 percent, approximately 16 USD per passenger, the highest ever.

Accumulated air transport revenue in the first six months of 2018 reached 16,478 billion VND (726 million USD), an increase of 52.6 percent. Air transport profit stood at 1,686 billion (74.3 million USD), an increase of 53.4 percent over the same period of 2017, equivalent to 56.2 percent of the 2018 plan.

In the second quarter of 2018, Vietjet Air carried over 5.8 million passengers, an increase of 28 percent, of whom 4.2 million were domestic passengers, up 12.7 percent, and more than 1.6 million international passengers, up 96 percent over the same period of 2017.

Thanks to the strong growth of fleet, including the modern Airbus A321 Neo and expansion of longer routes to Northeast Asia, international flights promoted the sales of meals, souvenirs, baggage etc. in flights, the ancillary revenue in the first half of 2018 reached 3,807 billion VND (167.7 million USD), a 50 percent increase over the first half of 2017.

In the first six months of 2018, Vietjet Air continued to lead the domestic passenger traffic and be the best operating flight growth airline with 59,944 flights, up nearly 22 percent. The on-time performance stood at 83 percent.

Total revenue of the first six months 2018 stood at 21,197 billion VND (933.8 million USD), an 29 percent increase year on year. Profit before tax of Vietjet Air in the first half of this year reached 2,378 billion VND (104.7 million USD), up 26 percent.

According to its plan, in 2018, Vietjet Air will receive 17 Airbus aircraft. In the first six months, Vietjet Air received 4 Airbus A321 aircraft. In the second half of the year, Vietjet Air will receive 13 aircraft. As a result, in the last six months of the year, Vietjet Air will record additional revenue from this aircraft delivery. 

In the middle of July, Vietjet Air signed agreements to purchase 100 Boeing 737MAX aircraft worth 12.7 billion USD and 50 Airbus A321 NEO worth 7 billion USD, assuring that by 2025 the company’s new fleet will be synchronized, well-equipped and fuel efficient, serve for the plan to establish aviation alliance in the region and in the international market.

Started operating new modern aircraft which could save up to 15 percent of fuel costs, efficient management program as well as international flight network expansion, Vietjet Air continued to boost the foreign currency ticket sales, increase the proportion of ancillary revenue and decrease fuel cost because the fuel price in foreign countries is lower than in domestic market by around 30 percent due to taxes, fees. 

In addition to manage flexibly the load factor of domestic routes in the low season, focus on the international routes and wet-leasing abroad, help increase efficiency, boost the foreign exchange earnings, stabilize the revenue.

Vietjet Air is the first airline in Vietnam that operates a low-cost, modernized carrier model to provide a wide range of services to its customers. Apart from air transportation, Vietjet Air also provides consumer goods and services to the customers through the application of advanced E-Commerce technology. 

Vietjet Air is an official member of the International Air Transport Association (IATA) with IOSA Safety Certificate. In addition to the “Top 500 Leading Brands in Asia 2016” and “Best Recruiting Brand in Asia” for many consecutive years, Vietjet is also honoured to be the Best Asian Low Cost Carrier awarded by TTG Travel Award in 2015. Besides that, Vietjet Air is also honored as the Top 3 Fastest Growing Facebook Fanpage award by Socialbakers.-

Retail revenue high in first seven months

Apart from impressive growth of industrial production index, trade and service activities in the seven months of this year were fairly active as local spending grew. 

A report from the General Statistics Office showed the total retail of consumer goods and services in July was estimated at 371.5 trillion VND (16.36 billion USD), up 1.6 percent month-on-month and 13.3 percent year-on-year. 

During the month, revenue from goods retail reached 277.1 trillion VND, up 1.6 percent monthly and 14 percent annually. Meanwhile, accommodation and dining generated 45.9 trillion VND, up 2.1 percent and 6.4 percent, respectively, and tourism revenue hit 3.5 trillion VND, marking a respective increase of 2.3 percent and 9.2 percent. 

In the first seven months, the total retail of consumer goods and services amounted to 2.49 quadrillion VND (100 billion USD), up 11.1 percent annually. Of the figure, 1.87 quadrillion VND was from goods retail, accounting for 75.2 percent and up 11.7 percent year-on-year. 

Consumers mostly bought necessities such as food (up 12.6 percent), apparel (12.4 percent), household appliances (12.3 percent) and stationery (10.3 percent).

Vietnam promotes trade, investment ties with Algerian province

The Vietnamese Embassy in Algeria held a meeting to introduce potential for bilateral cooperation and trade and investment ties between the two nations in Médéa province on July 30.

The event was attended by leaders of the Médéa Chamber of Commerce and Industry and about 50 local businesses.

In his speech, Vietnamese Ambassador Pham Quoc Tru noted the countries’ long-standing friendship, stressing the potential fields they can enhance partnerships in, including agriculture, industry and tourism.

He called for stronger cooperation to boost bilateral trade as expectations of senior leaders of both nations.

Médéa entrepreneurs asked for more information about the Vietnamese market, especially investment procedures and import tariffs. They said they want to increase collaboration with the Vietnamese side to export agricultural products (grapes, apples, olive oil, wine and chicken), ceramics, animal food, apparel and footwear to the Southeast Asian nation.

Benrekia Mohamed, Chairman of the Médéa Chamber of Commerce and Industry, called on Vietnamese companies to step up investment in the province, particularly in mining, processing farm produce and sharing experience in ceramics production.

Tru said the Vietnamese Embassy will provide the best possible conditions to help the two sides’ businesses strengthen connections and bolster trade and investment.

He also invited Médéa travel firms to take part in the Vietnam-Algeria tourism cooperation forum, scheduled to be held in Algiers this November.

Also on July 30, the embassy’s officials visited ECD Foods, an agricultural product processor and exporter in Médéa, whose leaders also expressed interest in the Vietnamese market and asked for favourable conditions to promote trade ties with Vietnamese companies.

HCM City’s capital mobilisation sees 13.8-percent growth

Capital mobilisation by banks in Ho Chi Minh City exceeded 2.135 quadrillion VND (about 92 billion USD) as of early July, up 1.69  percent from the previous month and 13.83 percent year-on-year, said the municipal Department of Statistics. 

Of the amount, commercial joint stock banks accounted for 51.74 percent, up 11.04 percent from the same month last year. Saving deposits made up 46.58 percent of the total, a 6.26 percent yearly increase. 

Capital mobilisation in foreign currencies accounted for 10.72 percent of the total, up 4.77 percent compared to the same period of last year, while the mobilised capital in Vietnamese Dong witnessed a year-on-year increase of 15.02 percent. 

As of early July, total outstanding loans surpassed 1.912 quadrillion VND (over 82 billion USD), up 16.73 percent annually and 8.59 percent compared to December of 2017. Those of commercial joint stock banks accounted for more than 1.002 quadrillion VND (more than 43.1 billion USD), or 52.42 percent of the total and up 12.6 percent year-on-year. 

The department said total outstanding loans are likely to maintain high growth compared to previous years, making it easy for local enterprises to access loans, thus promoting economic development. 

In the first seven months of 2018, the city’s State budget collection was estimated at nearly 214.5 trillion VND (nearly 9.25 billion USD), reaching 56.92 percent of the target, up 7.17 percent year-on-year. 

Of the total, domestic collection reached 142.55 trillion VND (6.14 billion USD), up 10.18 percent, while tax revenues from crude oil and import-export activities were 13.82 trillion VND (595.8 million USD) and 58 trillion VND (2.5 billion USD), up 41.74 percent and down 4.86 percent year-on-year, respectively. 

The local budget collection in the period was 44.6 trillion VND (1.92 billion USD), up 1.95 percent year-on-year.-

Industrial production expands 10.9 percent in seven months

Vietnam saw strong growth in its industrial production index (IIP) in the first seven months of 2018 thanks to the expansion of many major economic sectors, especially processing and manufacturing, which recorded the highest expansion in the recent seven years.

According to the General Statistics Office, the IIP in July grew 14.3 percent over the same period last year, pushing total growth in the first seven months to 10.9 percent, higher than 7.1 percent in the same time last year.

Particularly, the processing and manufacturing industry maintained high growth at 13.1 percent, contributing 9.9 percentage points to total expansion. It was followed by power manufacturing and production which increased 10.7 percent.

Some sectors in the secondary industry (dominated by the manufacturing of finished products) also saw high growth, such as refined oil production (up 64.1 percent), mineral mining support services (up 25.2 percent) and electronics, computers and optical products (up 16.4 percent).

Many primary products rose substantially against the same period last year, including crude steel (up 41.1 percent), passenger cars (32.9 percent), liquefied petroleum gas (up 32.7 percent), synthetic fibres (up 19.1 percent), refined sugar (up 18.9 percent), seafood feed (up 18.5 percent) and televisions (up 14 percent).

However, some products saw declines in production due to lower demand, such as crude oil (down 11.3 percent), mobile phones (down 0.9 percent) and urea fertiliser (down 3.5 percent).

All 63 cities and provinces posted higher growth in industrial production against 2017’s corresponding period, of which Ha Tinh led with growth of 149.3 percent, thanks to the steel manufacturing by Formosa Ha Tinh Steel Corporation, followed by Thanh Hoa (where Nghi Son Refining and Petrochemical LLC started operations). 

The GSO reported that as of July 1, 2018, the number of labourers working in the industrial sector increased 3 percent from the same period last year, with a 0.3 percent rise in the State-owned sector, 3.6 percent in the non-State-owned sector and 3.1 percent in the foreign direct investment sector.

In the first seven months of 2018, processing and manufacturing was the most attractive sector for investors, luring more than 13.6 billion USD of foreign direct investment.

The GSO predicted that in the rest of the year, the IIP may slow down, reflecting the increasing importance of sustainable development. 

The office recommended strengthening connectivity among businesses and the enhancement of their capacity to join supply chains, thus making industry grow more sustainably.

Along with promptly implementing targets stated in Resolution 23-NQ/TU of the Party Central Committee on building industrial policies, it is necessary to continue reducing business conditions, simplifying administrative procedures, enhancing the quality of online public services and using advanced technology to boost the growth of industry.

The office also stressed the need to handle stagnant and ineffective projects by the end of 2018, thus giving more resources to the development of industry.

Growth in VN-Argentina trade     

Argentina is the second largest trade partner of Viet Nam in Latin America and Viet Nam is the fifth largest import market for Argentina globally, experts said at a Viet Nam – Argentina business forum in Ha Noi on Tuesday.

The business forum, co-hosted by the Argentine Embassy in Viet Nam and the Vietnamese Ministry of Industry and Trade, is part of activities during the official visit to Viet Nam by Argentine Minister of Foreign Affairs and Worship Jorge Faurie.

Two-way trade between Viet Nam and Argentina has seen encouraging growth in recent years, hitting US$3 billion last year.

Viet Nam exports to Argentina include garment materials, footwear, machinery, equipment and spare parts, while importing animal feed, materials, corn, wheat and some seafood products from the Latin American country.

These outcomes reflected the efforts made by diplomatic, economic, industrial and agricultural agencies of the two countries, Doan Thi Thu Thuy, deputy head of the Ministry of Industry and Trade’s Trade Promotion Department, said.

She also added that trade connection activities were organised regularly and effectively with the active and responsible engagement of both sides’ business communities.

At the forum, representatives from Vietnamese and Argentine businesses studied bilateral trade and economic relations and investment opportunities as well as promoted connections in the fields of foodstuff, processed food, beverages, fruit, animal feed and pharmaceuticals.

Addressing the meeting, Minister Jorge Faurie said he was pleased with bilateral relations and the growth in two-way trade. He stressed that celebrating the 45th anniversary of bilateral diplomatic ties (October 25, 1973-2018) is an important milestone in the co-operation between the two nations.

He expressed his hope that the Viet Nam-Argentina relationship will continue to thrive with the increase of visits and all-level delegation exchanges.

Argentina would do its best to boost and diversify trade ties and multi-faceted co-operation with Viet Nam, he said, adding that Argentine businesses paid attention to collaboration in biodiversity, services, pharmaceuticals and technology with Viet Nam. 

VN, Japan firms seek connection in agro-fishery, food trade

A business networking programme for Vietnamese and Japanese businesses in agro-fishery and food sectors took place in Hanoi on August 2.

Organised by the Japan External Trade Organisation (JETRO), the event attracted 32 Japanese firms which produce seafood (oyster and fish), children’s food, and supplement products, among others. The Japanese companies aimed to expand their presence in a dynamic market with high demand for the quantity and quality of food products like Vietnam.

The event featured the display of Japanese products to help Vietnamese buyers get more information, thus facilitating trade of goods. 

A JETRO representative said the programme consists of a connection area for new importers and distributors seeking partnerships and an expansion area for veteran firms wanting to expand their business network. 

Last year, a similar programme drew the participation of more than 300 Vietnamese buyers, with many contracts signed. 

According to JETRO, Vietnam is a potential destination for Japanese food products. Vietnamese consumers’ increasing awareness of food safety has increased their demand for Japanese products which hold good reputation for quality and food safety standards. 

VN, Chinese province talk business