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Google offers support for Vietnam business community

by hanoitimes.vn

US-tech giant Google looks to build long-term cooperation with Vietnam.

Google, with its experience, is willing to support the development of Vietnamese enterprises and looks to build long-term cooperation with Vietnam, according to Scott Beaumont, president of Google in Asia Pacific.

President of Google in Asia Pacific Scott Beaumont. Photo: VGP.

Enterprises with high level of digitalization would grow twice as fast as others, and Google wants to help local firms master online business skills, said Scott in an online meeting with Minister – Chairman of the Government Office Mai Tien Dung on July 22.

Scott said Vietnam has been successful in mitigating negative impacts of the Covid-19 pandemic, and this shows the world how to efficiently tackle the health crisis.

According to Scott, during the outbreak, Google had supported the Ministry of Health in providing official information and instructions to the people and businesses via YouTube.

Based on this experience, Scott said Google could cooperate with the Government Office in developing the national public service portal.

The successful implementation of the portal has been one of Vietnam’s achievements in the post-Covid-19 period, Scott added.

Under the framework of the “Vietnam Digital 4.0” program, Google is collaborating with the Ministry of Industry and Trade in providing online training for small and medium enterprises (SMEs), while assisting large scale enterprises to find new export markets.

Meanwhile, Google is working with Vietnam National Administration of Tourism to promote domestic tourism, one of the key solutions to boost Vietnam’s economic growth, Scott informed.

Minister of the Government Office Mai Tien Dung at the meeting. Photo: VGP.

At the meeting, Minister Dung said 96 days have passed without new Covid-19 cases in the community in Vietnam.

Dung said with the GDP growth of 1.81% in the first six months of 2020, Vietnam targets to reach a growth rate of 3 – 4% for this year.

Since its launch on December 9, 2019, the national public service portal has integrated 800 public services with nearly 200,000 accounts, 51 million visitors and 201,000 applications under processing.

Dung, however, said this is just a first step towards the building of e-government and is looking forward to cooperating with Google in promoting the portal.

Dung asked Google to set up a channel for the portal on YouTube for spreading the benefits of public online services for citizens and businesses.

The minister stressed the US is Vietnam’s key partner and the Vietnamese government is willing to support US firms in doing business in the country.

Local authorities are maintaining frequent communication with US companies to address their issues for more balanced trade relations, Dung informed.

Japan donates medical equipment to help Hue hospital combat Covid-19

by english.thesaigontimes.vn

Japan donates medical equipment to help Hue hospital combat Covid-19

The Saigon Times

A healthcare technician checks medical equipment, which is part of a donation made by JICA worth more than US$456,000 to the Hue Central Hospital yesterday, April 9 – PHOTO: VNA

HCMC – The Japan International Cooperation Agency (JICA) donated medical equipment to the Hue Central Hospital in the central province of Thua Thien Hue on April 9 to support the hospital combat the Covid-19 pandemic.

The equipment included an extracorporeal membrane oxygenation machine, a mobile digital X-ray machine and a color Doppler ultrasound machine, which have a combined value of 50 million yen (over US$456,000), according to the Vietnam News Agency.

Addressing the handover ceremony, Yakabe Yoshinori, Head of the Japanese Consulate Office in Danang City, spoke highly of the Hue Central Hospital’s efforts in providing sufficient and quality healthcare services to residents in the central region, especially during the Covid-19 pandemic.

Yoshinori expressed his hope that the equipment donated by JICA will help the hospital effectively respond to the Covid-19 pandemic and improve the quality of its medical services.

Professor Doctor Pham Nhu Hiep, director of the Hue Central Hospital, thanked the Japanese Government and JICA for supporting the hospital over the years and their contributions to Covid-19 infection prevention and control in Vietnam as well as Hue and the central region in particular.

JICA has carried out many programs to support the Hue Central Hospital over the past 17 years, including a US$27,243 project to upgrade the infrastructure of the hospital and another project to improve the quality of human resources for the healthcare system in the 2010-2015 period.

On the same day, the Hue Central Hospital signed a cooperation agreement with Vinbrain, an Artificial Intelligence software supplier in the healthcare sector, to enhance the application of information technology in the services offered by the hospital.

VITA proposes opening doors to tourists with vaccine passports

by english.thesaigontimes.vn

VITA proposes opening doors to tourists with vaccine passports

By Dao Loan

Vietnam attracted many international tourists before the Covid-19 outbreak. The Vietnam Tourism Association has proposed reopening the tourism market to tourists holding vaccine passports – PHOTO: DAO LOAN

HCMC – The Vietnam Tourism Association (VITA) has proposed that the Government allow it to collaborate with the Vietnam National Administration of Tourism to welcome back international tourists holding vaccine passports, digital proof of Covid-19 vaccination.

According to VITA, since the Covid-19 pandemic forced the country to close its doors to international tourists, many travel companies have turned to domestic tourism. The number of local tourists at some attractions has even been higher than pre-pandemic levels.

However, as revenues from domestic tourism account for only 30% of the total, resuming international tourism is still a priority.

VITA said Vietnam can begin resuming international tourism as Vietnamese travel companies have effectively implemented anti-Covid-19 measures. Moreover, the spread of Covid-19 has eased in parts of the world thanks to massive vaccination campaigns.

Covid-19 vaccine passports will be an effective tool to resume tourism services. Some countries in the region have decided to use digital health passes to help the tourism sector recover.

Therefore, VITA suggested the Government allow it and the Vietnam National Administration of Tourism to receive tourists from certain countries that have seen steady declines in Covid-19 cases.

Speaking to The Saigon Times, VITA chairman Nguyen Huu Tho said Vietnam should prioritize opening the market to tourists from the Asia-Pacific region, which account for 75% of the country’s total international arrivals. Many countries in this region have also effectively fought the pandemic.

Besides, VITA said the Government should introduce more incentives and supporting policies for travel companies. In addition to incentives on taxes, fees and electricity payment, the association suggested the Government allow travel companies to change their inbound certificates into domestic tourism certificates because since the pandemic broke out until now, travel companies have only been able to serve local tourists.

Data of the Vietnam National Administration of Tourism showed that as of late 2020, there were more than 2,500 inbound travel companies in the country. To obtain an inbound certificate, travel companies have to deposit VND500 million, while it is just VND100 million for a domestic tourism certificate.

VITA once again suggested offering accommodation facilities the same electricity prices as production facilities in line with the Politburo’s Resolution No. 08/NQ-TW and the Government’s Resolution No. 103/NQ-CP.

The association also proposed halving value added tax and reducing land tax for tourism companies in 2021. Excise tax for golf courses should also be cut by half.

After hearing these suggestions, Deputy Prime Minister Vu Duc Dam asked the Ministry of Planning and Investment to work with the Ministry of Culture, Sports and Tourism and other ministries and departments to conduct research on appropriate policies to support businesses in the tourism sector. The proposals will be submitted to the prime minister for review and approval in the second quarter of this year.

Southern Economic Region slow in development

by sggpnews.org.vn

However, this region is showing signs of neglect and decline in recent times. In a talk with Saigon Investment, Dr. NGUYEN DINH CUNG, former Director of the Central Institute for Economic Management, shared his view on this issue.

JOURNALIST: – Sir, there are many opinions that the Southern Economic Region is facing many bottlenecks, which are limiting its ability to accelerate in growth, such as a deteriorating infrastructure, overload of urban transport, and increasing environmental pollution. What is your opinion on this state of decline and related issues?

Dr. NGUYEN DINH CUNG: – First of all, in terms of a region, frankly speaking, it is just an accumulation of neighboring localities, with no significant links. All regional activities are just superficial. The localities have no motivation, and no need to coordinate and connect into becoming a strong economic zone.

One obvious reason is that the same socio-economic indicators are applied to all localities. Thus, local governments have to compete with each other to attract investments, to take care of their home province first, so they have no need to connect with the neighboring provinces. For example, connecting Ho Chi Minh City with Vung Tau is a number one priority for these two provinces, but may not be the number one priority for Dong Nai province. Likewise, connecting Tay Ninh with Ho Chi Minh City may be the number one priority of Tay Ninh, but Ho Chi Minh City has many other concerns that need to be addressed first.

In brief, Ho Chi Minh City and other provinces in the Southern Economic Region have not yet created organic links to become a unified entity. They have not created links with other regions and localities as well, so it is not possible to take advantage of regional relations to create a development momentum for the whole region. For example, Ho Chi Minh City is next to two major industrial and manufacturing centers, Binh Duong and Dong Nai, but the leading service industry of Ho Chi Minh City is real estate, while logistics services in Binh Duong and Dong Nai are their highlight.

Southern Economic Region slow in development ảnh 1 The gateway routes connecting Ho Chi Minh City with neighboring areas in the East and the South West are always severely congested.

– Sir, besides the need to complete twelve socio-economic targets of the region first, what are the other reasons?

– The root cause is that the retained budget ratios of the provinces in this region, including Ho Chi Minh City, are still very low, much lower than those in the North with the same economic scale. Regional budget revenues account for 40% of the national budget revenue, but only 20% of budget expenditure. The industrial provinces around Ho Chi Minh City such as Binh Duong and Dong Nai can only retain 36% and 47% of the budget revenue, respectively. The industrial provinces around Hanoi such as Vinh Phuc, Bac Ninh, and Hai Duong can retain budget at 53%, 83%, and 98%, respectively. Ho Chi Minh City alone is the highest budget contributor, but the retained rate is the lowest in the country, at only 18%.

Consequently, Ho Chi Minh City and the Southeast region lack resources to invest in and re-invest in upgrading the internal transport infrastructure and associated transport systems. The gateway routes connecting Ho Chi Minh City with neighboring areas in the East and the South West are always severely congested, making production, services and export costs too high, thereby reducing competitiveness and attractiveness for investors.

If we look at the results of Foreign Direct Investment (FDI) in Ho Chi Minh City, we will see that the scale of FDI projects in the area is getting smaller and smaller. Specifically, the average size of one FDI project in the Southern Economic Region is about USD 10 mn, significantly lower than the national average of USD 12.42 mn, while the average scale of one project in Ho Chi Minh City is even lower, only USD 5.56 mn. This means that Ho Chi Minh City is gradually lacking projects of large-scale, high-tech and modern corporate governance that are capable of leading development growth.

– Sir, according to you, how can localities in the region closely link and support each other in the most effective way?

– I must emphasize that there are fierce challenges facing the Southern region which require multi-sectoral and multi-local solutions that can only be resolved when localities build links and solve problems together. In order to do that, besides building a quality regional plan, it is necessary to let localities see practical benefits from joint activities and support each other. This means localities must have enough resources to solve their internal pressing problems, as well as participate in regional projects.

In my opinion, the first focus should be on traffic connectivity. If we let the provinces settle for themselves, it will be very difficult and take a very long time. This is where it is necessary to use public investment from the central government, and effectively stimulate development.

Besides, the governments of the provinces and cities must have a global view, so that each locality can bring into full play its own quintessential strengths. For example, Ho Chi Minh City should focus on high-tech projects, high value-added services, and should avoid more labor-intensive projects and production, because it will further stress the situation of infrastructure overload, while the value added is too small.

– Thank you very much.

Anh Thu (interviewer)

Robust growth trends projected for investment in healthcare

by vov.vn

Kim Dental, Vietnam’s largest private dental care platform, has recently raised US$24 million in a series B round. The investment was led by ABC World Asia, a private equity fund dedicated to investing across Asia, seeded by Temasek. Proceeds from the round, which saw the participation from existing backer Aura Private Equity, will support Kim Dental in expanding the delivery of affordable and reliable oral health services across Vietnam.

Kim Dental owns and operates a fast-growing network of 19 dental clinics across four cities. The clinics provide dental check-ups and treatments as well as more advanced orthodontics, prosthodontics, oral surgery, and implants. Kim Dental employs 120 dentists and dental surgeons, as well as over 600 clinical and operational staff serving over 23,000 patients per month. Kim Dental also operates a dental laboratory to support its clinic network with in-house production of crowns, dentures, and bridges.

Huynh Minh Viet, CFO of Kim Dental said, “With this successful round, we’re now well-positioned to expand our delivery of international quality dental care to the fast-growing communities across the country, thus improving community access and helping to elevate the standards of oral healthcare in Vietnam, so that we achieve more positive overall healthcare outcomes in our country.”

Meanwhile, SK Group is said to be mulling over an investment in Vietnam’s largest pharmacy retail chain, Pharmacity, with an expected value of up to US$90 million, according to Dealstreetasia.

Phamarcity is Vietnam’s largest pharmacy retailer with approximately 500 drugstores. The company has a plan to open its 1,000th store this year.

If the deal is concluded, it would make up SK Group’s second investment in Vietnam’s pharmacy and healthcare market. Last May, SK Investment III, a subsidiary of the Republic of Korea’s third-largest conglomerate SK Group, received 12.32 million shares of Imexpharm Corporation, equivalent to 24.9%.

Michael Han, head of SK Group’s Representative Office in Vietnam said, “There are dozens of industries and companies that we are trying to get to know better here, and healthcare happens to be one of them. It does not necessarily mean that an investment is imminent though.”

However, Han remains upbeat about Vietnam’s healthcare and pharmacy market. Historically, this sector’s growth has been backed by people’s growing concerns about the wellbeing of their family members, environmental factors, rising household income, and the high urbanisation rate – which leads to changes in lifestyles and a higher demand in personal healthcare.

“We believe that the robust growth will continue into the foreseeable future. We have seen a similar trend in the Republic of Korea over the last 20 years or so. In terms of market size, Vietnam is still at the emerging stage, with estimated total value of US$7 billion in 2019, growing at a robust pace of 8% from 2019-2024,” he said.

Meanwhile, a consortium led by Singapore’s state investor GIC Pte. Ltd. has agreed with Vietnam’s largest conglomerate Vingroup to buy a stake in its medical unit, Vinmec, for over US$200 million. However, Vingroup will remain the controlling shareholder of the unit after the deal, Vingroup said in statement last December.

Other funds like Vinacapital and Mekong Capital have seen the prospects of the market and decided to cash in on local healthcare and pharmaceuticals. Last August, VinaCapital invested in Thu Cuc International General Hospital by purchasing a 30% stake for US$26.7 million. In 2019, Mekong Capital also financed pharmacy chain Pharmacity out of its Mekong Enterprise Fund III.

Private equity investments in healthcare are on the rise. Nguyen Thi Vinh Ha, head of advisory at Grant Thornton Vietnam, cited the firm’s survey showing that healthcare is among the most attractive industries for investors, with its growth prospects coming from higher healthcare spending per capita.

“However, the shortage of qualified personnel and inadequate healthcare infrastructure results in a huge supply gap, and the increasing ageing speed of the Vietnamese population will further boost the healthcare demand,” Ha added.

VPBank, AXYS Group join hands to help businesses go online

by vietnamnews.vn

VPBank and AXYS Group sign cooperation agreement to launch a programme that help Vietnamese firms develop their online business in a sustainable manner in HCM City on April 8. — Photo courtesy of AXYS

HCM CITY — Vietnam Prosperity Commercial Joint Stock Bank (VPBank) and AXYS Group that specialises in providing online and business processing outsourcing services have launched a programme to help firms develop their online business.

The lender and AXYS’s member companies like Mắt Bão, CHILI, MIFI, ODS, and Navee will help them build a comprehensive online business platform.

Participating businesses can choose from between VPBank’s basic support packages on its Simplify portal or the advanced package from the CHILI professional e-commerce website that is integrated with the EcomPay payment gateway.

They will get preferential treatment in domain name registration from Mắt Bão.

They can also improve their sales and customer care systems through the use of ODS’s CloudFone switchboard, MIFI’s e-invoice solution and NAVEE’s advisory on online marketing solutions.

They will get priority access to credit from VPBank for future expansion.

The programme is expected to enable firms to save up to 70 per cent in costs for going online and on human resources, according to AXYS.

Lê Thị Diễm Phương, head of card and payment solution – SME division at VPBank, said “We realised that AXYS Group has a sustainable online business eco-system, and decided to … develop this project together.”

Huỳnh Ngọc Duy, CEO of Mắt Bão, said: “With nearly 20 years’ experience in e-commerce, AXYS Group believes it can fulfil the mission of helping Vietnamese businesses build sustainable online business platforms.” — VNS