Tedx digital transformation

Ninh Thuan Province adopts ambitious energy, tourism, farming goals

June 14, 2021 by ven.vn

Tran Quoc Nam, Deputy Secretary of the provincial Communist Party Committee and Chair of the provincial People’s Committee

Impressive development indexes have helped Ninh Thuan move ahead to rank among the top five provinces nationwide in terms of economic growth. Which spearhead sectors will the province focus on in the 2021-2025 period?

Given the province’s favorable conditions and difficulties, Ninh Thuan has identified four pillars of the local economy in the 2021-2025 period: (1) renewable and clean energy development; (2) tourism development; (3) building high-tech agricultural zones and farming areas associated with the commodity market; and (4) urban development associated with tourism promotion.

We have surveyed the province’s potential and advantages for renewable and clean energy development and found that it has the potential to generate nearly 20,000MW of electricity from renewable energy sources. Therefore, we have submitted to the government our plan to add about 6,000MW of electricity from renewable energy to the provincial power grid.

With its advantages for solar and wind power, as well as gas-fired and storage hydropower development, and suitable policies and mechanisms of the government and the province, we believe Ninh Thuan will become one of Vietnam’s top renewable and clean energy centers.

Along with exploiting renewable energy resources, we are also promoting urban development in combination with relaxation tourism to create high socioeconomic values.

To promote economic development, Ninh Thuan has appealed to investors to visit the province for surveys. Investors have already developed some large-scale projects in the province, such as the Ca Na Seaport Complex (first stage) of the Trung Nam Group, consisting of two wharfs with 70,000-tonne capacity, expected to be completed this year, gradually forming a logistics network in the province.

Phan Rang garlic is a specialty of Ninh Thuan Province

High-tech and clean agriculture associated with the commodity market is one of Ninh Thuan’s spearhead economic sectors. However, given water shortages and droughts, what kinds of farm produce will be prioritized and will investment in agriculture be promoted?

Ninh Thuan suffers some of the most severe natural conditions and harsh climate in Vietnam. The average rainfall throughout the province is around 700mm per year. The soil is depleted and lacks water due to drought all year round.

Such climatic and soil conditions hinder Ninh Thuan’s agricultural development but enable the province to expand the planting of specific crops such as grape, jujube, onion, garlic, asparagus, and develop sheep breeding. In recent years, the province has paid special attention to improving the quality of its farm products to enhance their competitiveness in the domestic market, paving the way for their presence in the global market.

To achieve this target, we are diversifying farming models and increasing investment in clean, organic and smart farming. Researchers recently launched a new grape variety which is selling well in the domestic market.

We will continue improving farm produce quality through scientific research and technology application, developing clean, organic and smart farming. To do this, we encourage scientists to research and transfer new farming techniques to farmers. For their part, farmers should be determined to learn and apply new technologies.

Ninh Thuan has attractive tourist sites

Tourism is also a major advantage of Ninh Thuan. However, this sector has yet to achieve breakthroughs in development. How will the province promote tourism development and increase its competitive advantages compared with neighboring localities?

A coastal province, Ninh Thuan has both the sea and forests, with special landscapes ideal to develop tourism.

Apart from landscapes, Ninh Thuan is also home to traditional cultures of the Cham and Raglai ethnic groups. The province’s great potential for tourism development remains untapped. Tourism investors have come to Ninh Thuan and are seeking opportunities to invest. We plan to create distinctive tourism products, including leisure tourist sites, tours to discover local culture and experience local farming. The harmonious combination of different tourism forms will make Ninh Thuan a special destination.

Ninh Thuan has great potential for renewable energy development

Which factors will you focus on during your tenure as the Chair of the provincial People’s Committee in order to improve the efficiency of the local administrative apparatus so that it can benefit businesses and people?

In the 2021-2025 period, highlighting the motto “Solidarity, creativity, discipline, development, acceleration, efficiency” and the spirit “Government goes alongside businesses”, Ninh Thuan will mobilize the entire political system to enhance the efficiency of the administrative apparatus at all levels, while at the same time accelerating administrative and institutional reforms, intensifying the application of information technology, and increasing the sense of responsibility in the implementation of public tasks. We will encourage businesses to promote digital transformation to increase productivity, improve quality and enhance competitiveness, keeping pace with global business development trends. Ninh Thuan will also continue improving the investment and business environment to help businesses overcome difficulties and promote creative startups.

Many investors have come to Ninh Thuan, considering it a safe destination. Do you have any message for domestic and foreign businesses?

We are willing to welcome and accompany domestic and foreign investors with our highest sense of responsibility. We will create the most favorable conditions for investors to carry out their projects successfully in Ninh Thuan. The success of investors and businesses will contribute to the province’s development and promote its image as a reliable destination.

A coastal province, Ninh Thuan has both the sea and forests, making it ideal for tourism development.

Hong Ha

Leading companies must take central role in economic recovery, says expert

June 14, 2021 by hanoitimes.vn

The economic recovery will base on large-scale corporations that are capable to deal with current difficulties.

Economist Nguyen Dinh Luong, former Vietnam’s Chief Negotiator of the US-Vietnam Bilateral Trade Agreement, in an interview with Hanoitimes talked up the role of industry-leading companies in helping the economy overcome Covid-19.

Economist Nguyen Dinh Luong. Photo: Kinhtedothi

The making of industry-leading companies is seen as a major step towards building a strong business community that could spur Vietnam’s economic growth. How do you view this vision in the current context of the Covid-19 pandemic?

The recent 13 ^th National Party Congress has stressed the significance of promoting the development of strong private and state-owned corporations that are capable of competing at regional and international levels in priority fields.

In the past and present, whenever the country is in a crisis, Vietnamese businessmen have shown their patriotism through specific action, an in this case their role of leading the economy back to the growing trend.

From the economic perspective, what do you think about the importance of these leading companies to the economy?

The Covid-19 pandemic has persisted for nearly two years and caused tremendous hardship for enterprises. A latest survey from the Vietnam Chamber of Commerce on over 10,000 enterprises revealed up to 87.2% of the total are affected by the pandemic.

Layoffs are seen mostly in private enterprises of micro and small size with respective rates of 36% and 35%. The burden to help the economy recover will mainly fall on the shoulder of large-scale corporations, mainly because they still have the resources to deal with current difficulties.

The fact that Vingroup owned by billionaire Pham Nhat Vuong donated four million Covid-19 vaccines to the Ministry of Health; Viettel provided VND450 billion (US$19.5 million) into the Vietnam Fund for Vaccination Prevention of Coronavirus Disease 2019 (VFVC); Electricity Vietnam, Vietnam Oil and Gas Group, and Vietnam Posts and Telecommunications Group each supported VND400 billion (US$17.4 million); demonstrating their strong financial capabilities.

Large scale corporations have strong links with global value chains, and therefore, would recover much faster than their smaller peers when the global economy returns to the growth path, not to mention their much stronger resilience against external shocks.

Should the government focus its support on large-scale enterprises?

Yes, I think so. In 2020, the government focused on freezing and delaying payment of taxes, land rental fees. This year, the business community is expecting more substantial supporting policies to recover and grow in the post-pandemic period.

Large enterprises, making up 80% of state budget revenue sources, are in needed of market opening, policies for production expansion, and easing border control for foreign experts to return.

During the Covid-19 period, Vingroup has set up pharmaceutical company Vinbiocare with registered capital of VND200 billion (US$8.7 million). The firm is actively working with foreign partners to transfer vaccine production technology to Vietnam. Recently, Vingroup has sealed a deal with Singapore-based Breathonix to acquire 30 Covid-19 breath testing systems, the first of its kind in the world, worth VND460 billion (US$20 million).

The system, which has received provisional authorization from Singapore’s Health Sciences Authority (HSA), could produce results with up to 90% of accuracy and in a non-invasive manner. Vingroup is expected to hand over the system to the Ministry of Health upon arrival in Vietnam

I think with a more open vaccine policy, major enterprises could find their own way to save themselves and also contribute to protecting public health.

What measures should the government focus on at the moment?

Enterprises, regardless of their sizes, are facing common issues of market access, working capital, workforce, and supply chains, which the government should take into consideration when drafting rescue packages.

There should also be different scenarios for these packages to be disbursed as quickly as possible once the pandemic is contained. Experiences from the US and other countries show they have set up various pandemic scenarios for each state, city and planned to take actions accordingly.

In this regard, priorities should be given to enterprises that have fulfilled their tax obligation, while the government should provide them with financial support for Covid-19 prevention measures.

Meanwhile, enterprises that have gone bankrupt or suspended operations should be included in social protection packages.

How could the government turn this crisis into an opportunity for stronger growth?

In addition to short-term support, the government should focus on administrative reform by saving costs and expenses for enterprises, especially in investment, trade procedures, and measures to help them gain greater market access.

On the other hand, while there has been a shift in foreign investment capital into Vietnam, measures are needed to strengthen the linkage between local and foreign enterprises, while the domestic market should be the focus of local firms.

Another key issue is the urgency for major economic corporations to embark on the digital transformation process, as this is the key step to help them reduce operational costs during the pandemic.

Thank you for your time!

Visa summit highlights rising regional security focus

June 14, 2021 by www.vir.com.vn

The annual Asia-Pacific Visa Security Summit was organised online for the first time. How would you evaluate the outcomes of the summit?

visa summit highlights rising regional security focus

Pavan Muttireddy, director of Southeast Asia Risk Services at Visa

The summit is Visa’s largest event in the region and we have hosted it in various cities for 16 editions. Even though we had to move the summit online this year, we were able to welcome more than 1,500 partners and clients, which is double the number that we would have hosted normally. This serves as a signal to us that the industry believes that collaboration and shared learnings are more important now than ever.

Commerce is at a pivotal moment and we have seen an acceleration of all forms of digital commerce, whether it is using digital payments at the point of sale or being comfortable with buying online. At the summit, we also discussed a wide range of disruptions caused by the pandemic and these include changing consumer behaviours, the future of money movement, and how security must be a fundamental consideration for all innovative new ways to pay.

What key trends do you think will shape the global payments landscape in Asia-Pacific in the coming year?

Our Visa Consumer Payment Attitudes study identified three prevalent trends in consumer priorities.

First off, contactless payments have emerged as a health and safety priority among consumers, businesses and payment services providers. The pandemic has not only disrupted leisure spending with consumers giving up travel, fine-dining and luxury items but has also pushed consumers away from the use of cash and towards more modern payment alternatives that help them avoid personal contact and potential exposure.

Our study also showed 56 per cent of consumers carrying less cash in their wallets and conducting fewer cash transactions. Indeed, one in two Visa face-to-face payments in the Asia-Pacific are now contactless which demonstrates the growing preference for contactless payments over cash.

The very same sentiments have also elevated demand for e-commerce and expectations for speedy and quality service. Among active advocates of e-commerce, 85 per cent of them are purchasing on their applications once a week or more often and are discovering the convenience and potential savings on offer in e-commerce.

However, the substantial gain in consumer spending has also highlighted gaps in the payments ecosystem that require urgent attention. As consumption moves online, so have fraudsters, resulting in rising e-commerce fraud, elevating security concerns among all stakeholders.

According to our study, up to 51 per cent of Vietnamese consumers worry about their phones being infiltrated with malwares and viruses, and 41 per cent are concerned about information exposure when third parties gain unauthorised access to their devices. These are barriers to even greater adoption of digital payments that have to be addressed by innovations that are built around security.

How will these trends come into play in the Vietnamese context?

In Vietnam, like in many other countries, the pandemic has greatly accelerated changes in consumer behaviour, commerce and hence digital payments. According to our Visa Consumer Payment Attitudes study, QR code payments, mobile contactless payments, and online wallet payments are the categories that experienced the highest increase in usage. We believe that heightened levels of consumer interest in digital payments will remain even after the pandemic, as most respondents lauded the security and convenience aspects of new payment methods.

There is generally high awareness of the most popular contactless payment methods in Vietnam. There is a very diverse landscape for both QR payments and e-wallets with both domestic and foreign entrants offering consumers choices in the market. Vietnamese consumers are also relatively quick to adopt new technology and are open to trying solutions offered by small-scale, home-grown service providers in the QR code payment and e-wallet segments.

Consumers who already use contactless payments say it is safer and more convenient than carrying cash. Although 86 per cent believe it is safe when it comes to paying via smartphone, Visa believes more work needs to be done with the industry to earn consumers’ trust.

How is Visa addressing these rising security concerns and the changing security landscape?

As retail moves increasingly onto digital platforms, consumer expectations for safer and more convenient shopping experiences are elevated. In particular, they expect service providers to protect their transactions as well as personal and financial details.

One of the solutions Visa has introduced to reinforce security is Visa Token Service (VTS), which turns payment information like card numbers and other account details into randomised tokens. Even if the token is stolen, it does not contain any actual card information, rendering it useless to fraudsters.

This past year, VTS has been growing at a tremendous pace as more issuers and merchants invest in security. It had taken Visa more than five years to issue 1.4 billion tokens worldwide, but now we have crossed the two billion mark in just 10 months. VTS is now one of the largest payments security platforms in the market, safeguarding clients’ data while empowering consumers and vendors with card-on-file capabilities that make shopping a breeze on e-commerce platforms so consumers don’t need to fill a form every time they make a payment.

Another security feature that improves convenience for card users is Visa Secure, which uses the latest EMV® 3-D Secure technology for e-commerce purchases. It adds another layer of defence so financial institutions and sellers can be confident that the transactions are genuine. This security feature can reduce merchant risks from lost sales and offers to boost the shopping experience for customers.

At Visa, we are recommending that organisations emphasise significantly on promoting the culture of cybersecurity and have a robust governance framework in place with a mandate to protect it from data compromises.

By Hoang Anh

Technology retailers enter new businesses amid market saturation

June 14, 2021 by bizhub.vn

An FPT shop in the southern province of Dong Nai. FPT said that the company’s two retail chains, FPTShop and F-Studio by FPT, which sell digital products such as mobile phones, tablets and laptops, were still the main revenue spinners but non-core businesses also brought significant revenues. Photo cfptshop.com.vn

At FPT Digital Retail Joint Stock Company’s annual general meeting recently, shareholders gave the green light for plans to diversify from core businesses and enter some new product categories.

This is not the first time the company is eyeing new products.

In the first quarter of this year the company reported sales of VND4.67 trillion(over US$203 million), a year-on-year increase of 14 per cent.

An FPT spokesperson told Dau Tu Chung Khoan newspaper that the company’s two retail chains, FPTShop and F-Studio by FPT, which sell digital products such as mobile phones, tablets and laptops, were still the main revenue spinners but non-core businesses also brought significant revenues.

The Long Chau Pharmacy Store chain for instance is expected to report sales of VND582 billion (over $25.3 million) in the period, up 144 per cent. Its consolidated profit before tax was up 265 per cent to VND39 billion ($1.7 million).

Last December MobiFone and FPT Retail signed a deal to sell co-branded sim cards at FPT Shop nationwide. Customers who buy MobiFone-FPT Shop sims get special deals when shopping at FPT Shop.

The positive results from such non-core businesses have encouraged FPT Retail to consider entering more new product categories.

In April FPT Shop began selling Xiaomi’s IoT household appliances, and, together with Garmin, opened the first Garmin Brand Store in Ha Noi, the first in Viet Nam.

With the new product categories lending a hand, FRT expects to generate sales of VND 6.4 trillion ($713 million) in 2021 and pre-tax profits of VND120 billion representing year-on-year increases of 12 per cent and 320 per cent.

Similarly, non-core products have also made an important contribution to electronics retail giant Mobile World Joint Stock Company (MWG)’s turnover.

In the first three months of this year its consolidated net revenues were VND30.83 trillion, up 5 per cent from the same period last year, and after-tax profit was VND1.34 trillion, up 18 per cent.

But interestingly its food and grocery chain, Bachhoaxanh, was a leading contributor, with 19.3 per cent of MWG’s revenues after registering 32 per cent growth. Its core business, the Thegioididong chain, accounted for only 26.8 per cent of revenues after they fell by 1 per cent.

Bachhoaxanh’s gross profit margin in March stood at 25 per cent, and it is expected to go up thanks to adding several new food products and fast moving consumer goods to its line-up.

A company spokesperson said the effort was always to diversify the mobile phones and electrical and electronic devices sold to give customers more options. But the company would also focus on further developing the new product and fast moving consumer goods categories to tap a promising market of $60 billion, much higher than the phone and electronic devices market which is only worth $10 billion.

DigiWord Corporation (DGW) recently floated plans for entering the medical and cosmetics retail market at its AGM. A company executive, Lu Tran Anh Dung, admitted to Investment and Securities magazine however that DGW only wanted its shareholders to apply their minds to the proposal at this time so that it could move rapidly if any opportunities come in future.

DGW also expected to enter other new product categories in the coming years, he said.

It already had a strategic partnership with Nestle to sell the latter’s nutrition products through its distribution channels. This fetched DGW revenues of VND81 billion in the first quarter of this year, a year-on-year increase of 29 per cent.

DGW also owns a 21.86 per cent stake in pawn chain operator Vietmoney.

Analysts said technology retailers had managed to sustain growth though the market had gradually become saturated because they had shown the flexibility to enter other businesses.

Raw material prices rise across the board, hit bottom lines

Since May 2020, when they bottomed out, the prices of PVC resins have been increasing relentlessly due to a supply shortage and rising logistics costs.

According to Viet Dragon Securities Joint Stock Company, they topped their historic high of $1,216 per tonne reached in February 2018 to reach $1,400 in March this year.

The prices of petrochemical products including PVC resins have increased by 26 per cent this year, while oil prices are up 19 per cent.

Market observers attributed the drastic price hikes to a global supply disruption caused by the pandemic and power shortages in the US that caused refineries to stop production.

A spokesperson for Binh Minh Plastics Joint Stock Company (BMP) said the sharp rise in the prices of PVC resins had badly hit the company’s profits.

So, though the company hiked the prices of its plastic products twice by a total of around 14 per cent since February this year, its gross profit margin decreased to 17.9 per cent in the first quarter compared to 24.1 per cent a year earlier, the lowest rate since 2006.

A similar situation also plagues businesses in other sectors.

Seafood company Vinh Hoan Joint Stock Company saw its profit margin decline within a year from 14.4 per cent to 7.5 per cent.

For Minh Phu Seafood Joint Stock Company, it went down from 3.6 per cent to 0.8 per cent and for Sao Ta Food Joint Stock Company, from 6.4 per cent to 3 per cent.

The Dry Cell & Storage Battery Joint Stock Company (PINACO) saw the margin fall from 15 per cent to 14.2 per cent between October 2020 and March due to a sharp increase in the price of two main raw materials the company uses, zinc and lead, according to a spokesperson.

The Mercantile Exchange of Viet Nam reported that on May 12 the prices of several metals increased, zinc by 0.1 per cent to $2,995.50 per tonne and lead by 0.2 per cent to $2,217.50.

Ngo Tri Long, former rector of the Ministry of Finance’s Price and Market Research Institute, said the prices of materials used in industrial production and construction such as plastic, steel, bricks and sand are up 20 per cent this year.

Steel, which accounts for around 20 per cent of the cost of a building, increased by 40 per cent.

Le Nhu Thuy My, director of the Nhan Quoc Ceramic Tiles Company in Dong Nai Province, said there had been a slight increase in the prices of ceramic tiles due to a rise in packaging, fuel and transportation costs.

According to the General Statistics Office, in the first four months of this year the prices of raw materials used in industrial production have increased by 4.64 per cent year-on-year.

The price of raw materials and fuel used for agriculture, forestry and fisheries increased by 6.77 per cent, while those used in industrial production increased by 4.95 per cent.

How have businesses reacted to their rising costs?

Vinamilk has decided to increase prices.

KIDO Group Joint Stock Company, one of the country’s leading food processors spends 60 per cent of production costs on soybean oil and palm oil, whose prices have increased by 67 per cent and 76 per cent since last year.

The company could pass on the costs to its suppliers since it dominates the niche market for vegetable oils, an industry insider said.

But it would also probably increase prices by around 12 per cent, he added.

Analysts said however it was not easy for most companies to hike prices due to the COVID-19 pandemic, which had badly hit the incomes of both corporate and individual customers.

The Tien Phong Plastic Joint Stock Company (NTP) decided to increase its inventories of raw materials until the market calms down.

This way, it had managed to overcome the worst effects of the raw material price hikes, a company spokesperson said. VNS

Vietnam and Australia foster innovation cooperation

June 14, 2021 by en.qdnd.vn

At the meeting, the Australian Ambassador affirmed that Australia is a reliable partner of Vietnam.

She highlighted positive outcomes of the Aus4Innovation development assistance program and announced that Australia would increase sponsorship for the first phase of Aus4Innovation with an extra AUD3.5 million until 2022 to support several new program initiatives and prepare for the second phase, expected to be conducted until 2025.

Minister of Science and Technology Huynh Thanh Dat spoke highly of the bilateral cooperation in science and technology, especially achievements resulting from the Vietnam-Australia strategic partnership.

He affirmed that the increase in the sponsorship will help realize Aus4Innovation’s initiatives by 2020 and create a firm foundation for the second phase in 2025.

Minister of Science and Technology Huynh Thanh Dat and Australian Ambassador to Vietnam Robyn Mudie promised to promote cooperation in innovation activities and create favorable conditions for the implementation of Aus4Innovaiton program, contributing to the socio-economic development of the two countries.

The AUD10 million ($7.7 million) program is being carried out from 2018 to 2022 to strengthen Vietnam’s innovation system. The program focuses on Digital Foresighting, Science Commercialization Partnerships, Competitive Grants, and Innovation Policy.

Translated by Song Anh

VN jumps three places in global innovation index

July 26, 2019 by vietnamnet.vn

Vietnam has jumped three ranks on the 2019 Global Innovation Index (GII) to place 42nd out of 129 economies around the world.

WIPO helps Vietnamese firms in IP protection Stepping forward with high-tech

VN jumps three places in global innovation index

Deputy Minister of Science and Technology Pham Cong Tac speaks at the ceremony. — VNA/VNS Photo Huy Le

The latest ranking was announced by the World Intellectual Property Organisation (WIPO) in New Delhi, India on Wednesday.

With this jump, Vietnam has leapt 17 spots since 2016. This year’s result is also the highest ranking Vietnam has ever achieved.

Switzerland, Sweden, the US, the Netherlands and the UK remain at the top.

The GII 2019 ranks economies based on 80 indicators, from traditional measurements like research and development investments and international patent and trademark applications to newer indicators including mobile-phone app creation and high-tech exports.

This year’s theme was “Creating Healthy Lives – The Future of Medical Innovation.”

Through the theme, GII 2019 focuses on how medical innovation, including the use of artificial intelligence, genomics and mobile health applications, will transform the delivery of healthcare.

Speaking at the ceremony, Deputy Minister of Science and Technology Pham Cong Tac said Vietnam’s science-technology and innovation sector has made important contributions to national economic growth over recent years, especially in the fields of health care, agriculture and industry.

Growth based on capital and cheap labour is gradually slowing. In order to maintain momentum, Vietnam is shifting to a growth model based on technology and innovation, he said.

The new GII report also stated that Vietnam and the Philippines made significant progress this year. “Both economies improved in most of the GII areas and gained top ranks in high-technology imports and exports,” it said.

Sacha Wunsch Vincent, head of the WIPO’s Composite Indicator Research Section, Economics and Statistics Division and Co-Editor of the GII, hailed Vietnam as a model country among those surveyed by the WIPO over the past three years.

GII’s 80 indicators provide a comprehensive overview of innovation, including political environment, education, infrastructure and business sophistication.

Last year, Vietnam ranked 45th out of 126 countries and economies, up two places from 2017.

Published annually since 2007, the GII is now a leading benchmarking tool for businesses, policy makers and others seeking insight into the state of innovation around the world.

VNS