The 2018 Food Ingredients Vietnam to be held in HCM City in May will showcase a large variety of food and beverage ingredients and natural ingredients.
The exhibition has attracted more than 140 exhibitors from many countries and territories, Rungphech (Rose) Chitanuwat, business director of UBM Asia, the organiser, said.
The expo would also feature international conferences and professional seminars, and link up businesses, she said.
With more than 93 million people, of whom more than half are under 30 years of age, Việt Nam is one of the most promising food and beverage consumption markets in the region, and has a diverse range of raw materials for food and beverages, she said.
Speaking at a press conference in HCM City on March 22 to introduce the expo, Ly Kim Chi, chairwoman of the Food and Foodstuff Association of HCM City, said the country’s food and beverages sector has enjoyed strong growth in recent years.
The market is expected to maintain its high growth rate in the coming years and rank third in Asia, she said.
But now it has to import more than 80 per cent of its food and beverage ingredients since it is either unable to produce them or ensure consistent quality, she said.
Fi Vietnam would offer a great opportunity for businesses to source ingredients and establish links with the region’s leading producers and distributors, Chitanuwat said.
The exhibition this year would be 50 per cent larger than the preceding one (Fi Vietnam 2016), indicating the attractiveness of Việt Nam’s food and beverage market, she added.
To be held at the Sai Gon Exhibition and Convention Centre from May 16-18, the expo is expected to attract more than 4,700 food and beverage industry professionals from ASEAN member countries.
Microsoft and IBM dropped out of top 10 Vietnam’s best workplaces
Microsoft Vietnam and IBM Vietnam surprisingly got the dropped-ranks in the list of 100 best workplaces in Vietnam in 2017, according to the annual survey of Anphabe JSC in collaboration with market research company Intage.
Specifically, Microsoft Vietnam fell from the fourth rank in 2016 to 17th, while IBM Vietnam went from fifth to 14th.
In contract, the smaller-scale enterprises moved to the lead in the 2017 ranking. Unexpectedly, Vinamilk took over Unilever Vietnam’s leading position, with the runners-up being Viettel Group, Nestlé Vietnam, Vietcombank, Coca-Cola Vietnam, and Samsung Vina Electronics, respectively. These companies improved their rankings significantly over the year.
Viettel rose from the 2016’s seventh place to third place, while Vietcombank moved to the fourth place from sixth. Coca-Cola Vietnam in 2016 was not listed in the top 20, but secured the fifth place in 2017.
The 2016 champion, Unilever Vietnam, did not participate in Anphabe’s annual survey in 2017 and became the partner of the organisation board.
The survey of the top 100 best workplaces in Vietnam was implemented independently, with a rigorous process including in-depth interviews and quantitative-quality surveys, aiming to record salaried employees’ objective opinions.
VTVcab expects to acquire $261 million from IPO
Cable television provider Vietnam Television Cable Corporation (VTVcab) will put 42.3 million shares on sale at its initial public offering (IPO) with the expectation of acquiring VND5.96 trillion ($261.48 million) from the deal.
The Hanoi Stock Exchange recently released information about VTVcab’s IPO. Accordingly, it will offer 42.3 million shares, equalling a 47.84 per cent stake, on sale at the initial price of VND140,900 ($6.18). With the initial price, VTVcab is valued at VND12.45 trillion ($546.2 million).
According to the equitisation plan, after the IPO, the state will still hold 51 per cent in the firm.
The cable television provider was founded in 2012 under the direct management of Vietnam Television. The company mainly provides pay-TV services, advertisements, and wired telecommunication services.
Launched in 2012, it has become one of the country’s largest pay-TV players in terms of subscribers and service range, broadcasting 200 channels in cooperation with other television service providers. VTVcab is also involved in digital, customised, and Internet TV services.
It currently operates three subsidiaries, four affiliated companies, and 70 branches in 50 cities and provinces nationwide. It currently serves 2.5 million customers every year.
In 2016, VTVcab reported VND2 trillion ($87.7 million) in revenue and VND68.5 billion ($3.01 million) in after-tax profit, signifying increases of 11.3 and 5 per cent, respectively.
By the end of 2016, VTVcab’s payable debt is estimated at VND1.9 trillion ($83.4 million), including short-term debts of VND1.3 trillion ($57.03 million), which exceeds the company’s short-term asset value by more than VND500 billion ($21.9 million) million), causing concerns over VTVcab’s liquidity.
According to plan, the company expects to earn VND2.95 trillion ($129.4 million) in revenue this year and the figure will increase to VND4.46 trillion ($195.67 million) by 2022.
Meanwhile, the firm’s profit is expected to increase from VND74 billion ($3.24 million) in 2018 to VND116 billion ($5.08 million) in 2021. In 2022 alone, profits will reach VND283 billion ($12.4 million), 1.4 higher than in 2021.
2018 AGMs promise heavy dividends
Thanks to the positive business performance of Vietnam-based firms in 2017, shareholders expect large dividends in the 2018 season of annual general shareholders’ meetings (AGM).
Specifically, Vimeco JSC (VMC) stated that the firm would pay cash dividends to its shareholders on April 16. In 2017, the construction and real estate firm secured a total of VND2.27 trillion ($100.56 million) in revenue, a 56 per cent rise against the same category in 2016, and a total after-tax profit of VND231 billion ($10.23 million), which was eight times as high as in 2016.
A representative of Vimeco noted that the firm expected to issue bonus shares in the ratio of 1:1 to raise its charter capital from VND100 billion ($4.43 million) to VND200 billion ($8.86 million).
In particular, the firm planned to issue a collective 10 million shares at the starting price of VND10,000 ($0.44), commensurate with 20 per cent of the current market price (VND50,000 ($2.21) per share recorded on March 19).
Previously, several Vietnam-based firms, such as TV2, VCS, and SVI, paid unusually large dividends to shareholders with the dividend payout ratio of 60-80 per cent cash and bonus shares. To date, the highest payout dividend ratio of 660 per cent was paid by Vinacafe JSC (VCF).
Additionally, in the upcoming AGM on March 28, FPT Telecom JSC (FOX) planned to fix the payout dividend rate at 80 per cent, 30 per cent of which would be paid in cash and 50 per cent in shares.
The firm noted the total capital expended for the dividend payout plan mounted up to VND1.205 trillion ($53.38 million). After paying its shareholders dividends in shares, FOX’s charter capital would grow from VND1.5 trillion ($66.45 million) to VND2.26 trillion ($100.11 million).
To add, the recent AGM of Power Engineering Consulting JSC 2 (HNX: TV2) had the dividend payout plan approved, which specified the dividend payout ratio of 110 per cent, in which 10 per cent will be cash and 100 per cent bonus shares, effective in the second quarter of 2018.
Due to the optimistic business performance accomplished in 2017, TV2 is currently at the top spot with the leading EFS of VND39,268 ($1.74) per share.
Le Duc Khanh, head of Investment Advisory at PetroVietnam Securities Inc, noted that over the past three years, the dividend payout rate offered by firms in the sectors of pharmaceuticals, construction materials, consumer goods, food processing, chemicals, steel manufacturing, and insurance tend to surpass the payout rate offered by firms in other sectors.
Belarus moves to set up automobile joint venture in Vietnam
Belarus is going to establish a joint venture to manufacture cars in Vietnam to cash in on the growing local demand.
At a meeting with Deputy Transport Minister Le Dinh Tho yesterday, Vladimir Goshin, the Belarusian Ambassador to Vietnam, said that based on the protocol signed between the two governments in March 2016, the “MAZ-Asia” joint venture is now going to take shape.
Belarus is also completing the necessary procedures to import completely-built-up (CBU) cars to Vietnam, meeting the regulations of Decree No.116/2017/ND-CP.
The ambassador proposed the Ministry of Transport (MoT) to support the operations of the MAZ-Asia joint venture as well as provide guidance on car imports.
Tho, in response, welcomed the establishment of the automobile JV, and that MoT will continue to create favourable conditions for Belarusian businesses and MAZ-Asia.
Regarding the copied certificate of eligible imported automobile class issued by competent foreign authorities (Vehicle Type Approval–VTA), Tho confirmed that the ministry will give detailed guidance.
Vietnam saw a sudden surge in automobile imports earlier this month after imports hit a record low in the first two months of this year.
According to the General Department of Customs (GDC), from March 2 to March 8, car businesses registered to import 2,020 cars of all kinds to Vietnam, with a total value of $44.42 million, most of which were cars with nine seats or less.
Most of the imported cars came from Thailand, with the rest from Japan, the US, and the UK. The vehicles were shipped through Haiphong and Saigon ports.
The number of vehicles imported was at a record low in the first two months of this year. Specifically, cars having less than nine seats only reached 18 units in January and 13 units in February, as car importers failed to meet the demand of the government’s Decree 116, which stipulates the conditions for production, assembly, import, and trading of automobiles, as well as their warranty and maintenance services.
WMC Group appoints new Vice President, Sales & Marketing
The Windsor Property Management Group (WMC Group) has announced the appointment of Mr. Stephane Laguette as Vice President, Sales and Marketing.
Mr. Laguette will play a key role in driving the group’s ambitious plans to establish itself as one of Vietnam’s leading hospitality brands, paving the way for continual growth and expansion.
“I am very excited and honored to be a part of the WMC Group, one of the fastest-growing hospitality and property management companies in Vietnam,” he said. “With flagship properties such as The Reverie Saigon, one of the top hotels in the world, it is also a great responsibility and I am determined to bring all my energy to the role in order to continue the WMC Group’s great success.”
Mr. Laguette brings a wealth of experience to the role, with a career spanning three decades in the hotel industry. He also possesses a deep understanding of the Asian market from his time in region-wide roles in sales, marketing and communications based in Bangkok and Singapore, in addition to stints in the Middle East, Mexico and the Caribbean.
He has a proven track record in leading and developing sales and marketing specialists in the fields of revenue growth, generation of sales leads, events management, and the creation of attractive media coverage. He is also a strong motivational leader and highly effective in building and coaching multicultural teams.
His top priority, he said, would be to bring additional creativity to the sales and marketing functions, to help tell the story of the group’s properties and help increase revenue across all of its hotel and restaurant holdings.
The WMC Group is a hospitality and property services management company headquartered in Ho Chi Minh City. Its diverse management portfolio includes hotels, serviced apartments, offices, restaurants, and commercial shopping centers.
It is now embarking on a dynamic path of expansion and growth to become one of Vietnam’s leading hospitality and property management groups.
E-commerce: Much room left for growth
E-commerce will become more vibrant and continue to expand its market in Vietnam, as per the view shared by many business representatives and experts at a discussion panel within the framework of Vietnam Access Day 2018, an event held by the Viet Capital Securities JSC (VCSC) on March 13-15 in HCMC.
At the panel, Raphael Wilhelm, co-founder of SoNice, said Vietnamese people’s income is growing fast, which prompts them to spend more. Moreover, product offerings on the platforms are now widely diverse, offering consumers multiple choices. This is the driving force for e-commerce development, he said.
According to Wilhelm, Vietnam’s e-commerce market comprises two categories: official transactions through online trading sites or mobile shopping applications such as Lazada or Tiki, and unofficial transactions between customers and customers (C2C) via Facebook, Instagram and the like.
“The first type is currently valued at about US$2 billion,” Wihelm said. “The other is much larger in scale, at some US$6 billion. In my experience, the scale of both types will grow by an estimated 20% per year. In the next five or six years, the size of each will be twice as large.”
Bob Willett, a member of the board of directors of Mobile World Group, however, predicted the growth would be over 20%.
“Many things remain inadequate in this market,” he said. “They’re not on the customer side, but on the retailers. For example, there are many problems in reaching to customers. That has limited the development of e-commerce. Still, it is impossible to stop this inevitable growth momentum.”
However, on the size of the e-commerce market, there were comments that brought up different numbers. Andy Tran, Head of Marketing and Business development at Tiki, said the size of the e-commerce market in Vietnam was currently less than US$4 billion. It would be only some US$1 billion if only official online shopping transactions on the platforms providing such services were taken into account.
“Even with C2C deals on social networking sites like Facebook included, the figure would be no more than US$2-3 billion,” said Tran. “Therefore, e-commerce in Vietnam only accounts for 2-3% of the total retail value of goods. Perhaps, the most optimistic data is some 8-10 million Vietnamese people out of 90 million have once done shopping online.”
These figures suggest this type of commerce is still a nascent industry and has thus plenty of room for growth. Moreover, young people are its main customers, and the number of this group will definitely rise in the future.
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Vietnam attends tea & coffee expo in Singapore
Vietnamese tea and coffee enterprises are exhibiting their products at the International Coffee & Tea Industry Expo 2018, which opened in Singapore on March 22.
On display at the expo are techniques for planting, processing and preserving tea and coffee and materials and products from countries around the world.
vietnam attends tea & coffee expo in singapore hinh 0 The three-day event, which is expected to welcome 11,000 visitors, serves as a venue for exhibitors to seek customers and establish partnerships.
Participants are focusing on highlighting their unique characteristics in making coffee and tea, and tea and coffee enjoying culture in their countries.
Tran Thu Quynh, Vietnamese Commercial Counsellor in Singapore emphasised the significance of the event for Vietnamese tea and coffee firms, saying it helps them promote their products to international friends.
In the framework of the event, seminars and discussions with experts will be held, aiming to update enterprises on development trends, as well as difficulties and challenges facing the regional tea and coffee industry.
The global demand for coffee is projected to increase to 10 million tonnes by 2020. The Southeast Asian region is forecast to become a promising market for tea and coffee enterprises.
Vietnam, RoK businesses sign cooperation deal
The Republic of Korea’s (RoK) Small and Medium Enterprise Innovation Association (INNOBIZ) has signed a cooperation deal with TNG Holdings Vietnam (TNG) as a means to improve their strategic partnership.
vietnam, rok businesses sign cooperation deal hinh 0 Accordingly, TNG will serve as a partner to supply products and services through its companies, providing solutions for land rental in industrial zones more than 3,000ha in size, and in real estates, commercial centres and high-grade apartments, offices, real estate management, recruitment, protection, office/industrial cleaning services, and renting houses and providing other services for experts. The partnership will create the best possible conditions for INNOBIZ members when they invest and operate in Vietnam.
INNOBIZ will introduce TNG as a strategic partner to its members seeking investment and development opportunities in Vietnam.
In addition, within the framework of the deal signing, Maritime Bank is serving as a partner to supply financial solutions, and banking and finance services to INNOBIZ members while they operate in Vietnam.
The signing of the cooperation deal marks a new level of cooperation between INNOBIZ and TNG for the enhancement of economic development, which will help to attract further Korean investment into Vietnam.
INNOBIZ has more than 18,000 members, mainly operating in development and the application of advanced technologies in production and trading. In recent years, INNOBIZ has played an important role in promoting partnership between its members and Vietnamese businesses.
Deputy PM wants auto market issues addressed
Deputy Prime Minister Trinh Dinh Dung has asked relevant ministries and agencies to make life easier for automakers and auto importers, the Government news website reports.
The Government Office has issued a notice on a conclusion by Deputy PM Dung at a meeting late last week on the implementation of Government Decree 116/2017/ND-CP on auto manufacture, assembly, import, maintenance and warranty services. Many auto traders have seen the decree as an impediment to car imports.
The notice states the local auto market is growing strongly, and car consumption is forecast to rise strongly in the years to come as the economy expands.
Therefore, the sector should gradually meet the demand for cars, and guarantee the rights and benefits of consumers and their safety, protect the environment, and ensure the number of the vehicles in line with infrastructure.
In the notice, Dung stressed the need for implementing a strategy for developing the local auto sector in an effective manner, thereby increasing the ratio of local auto content, developing supporting industries, and building Vietnamese auto brands.
The Government reaffirms its stance on its equal treatment for local and international auto manufacturers and assemblers in an attempt to develop the local auto sector, satisfy the market demand, and bolster socio-economic growth.
The notice states that many liberal policies and regulations have been issued. Specifically, Decree 116/2017/ND-CP on auto manufacture, assembly, import, maintenance and warranty services and Circular 03/2018/TT-BGTVT guiding the implementation of the decree have received support from local residents and automakers, though many traders take an opposite view.
Some have voiced their complaints over difficulties and obstacles in implementing the decree, especially relating to the import of cars.
Thus, the Ministries of Transport and Industry-Trade are told to solve business difficulties and obstacles, and streamline policies and regulations on development of the auto industry. If necessary, they should petition the Government to amend the decree and its circular in a way that ensures the principles of equality, transparency and competition in line with international commitments and practices.
They also are assigned to scrutinize the imports of auto within the ASEAN in accordance with the ASEAN Trade in Goods Agreement (ATIGA) which sets certain kinds of products subject to zero tariffs.
Car imports into Vietnam have almost ground to a halt since early this year as Decree 116 tightens control on car imports by setting out stringent quality, technical safety and environmental protection requirements.
The decree requires local car importers to obtain vehicle type approval (VTA) certificates from exporting countries but authorities in many car exporting countries do not issue such certificates.
In the week ending February 1, only 23 automobiles, with three of them being cars of less than nine seats, were imported into the nation, according to Tuoi Tre newspaper.
In a bid to facilitate car exports to Vietnam, Thai and Indonesian governments have agreed to issue VTA certificates for car importers in Vietnam.
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