RoK technology ventures seek opportunities in Vietnam
An event connecting technology ventures of Vietnam and the Republic of Korea (RoK) was held in Ho Chi Minh City on August 22 to strengthen cooperation and trade activities between businesses of the two countries.
It was organised by Vuccess Co., Ltd of the RoK, with support from the State Agency for Technology Innovation of the Ministry of Science and Technology, the Vietnam Trade Promotion Agency (Vietrade) of the Ministry of Industry and Trade, along with the Korea Institute of Science and Technology and Korea Techno-Ventures Foundation.
At the event, Vietnamese firms were updated on latest technology and cooperation opportunities through 11 leading businesses of the RoK in various fields, including information technology, communications, power-electronics, garment-textile, chemistry, construction, energy and environment.
Bui Hoang Yen from the Vietrade said that since Vietnam and the RoK established diplomatic relations in 1992, the bilateral friendship has been thriving. The countries have paid attention to fostering multifaceted cooperation, especially in economy.
The RoK is currently the third largest trade partner of Vietnam, as well as the country’s leading foreign investor.
Vietnam is viewed as a major market of RoK multinational corporations such as Samsung, Lotte and LG, as the companies have expanded investment in the country.
In addition, the RoK Government has introduced incentives for the effective implementation of the Vietnam-Korea Free Trade Agreement, which paves the way for small- and medium-sized enterprises from the RoK to enter the Vietnamese market.
Momo, Home Credit partner to promote cashless consumer finance
Momo e-wallet service and Home Credit Vietnam finance company entered strategic cooperation on August 22 to help their clients enjoy smooth, swift, convenient and economical financial services.
Under this partnership, consumer financial services will be gradually provided via their mobile apps, instead of being handled offline and using cash at transaction centres which lacks safety and is time-consuming.
Nguyen Ba Diep, Vice Chairman of the Board of Director of the M_Service company – owner of Momo, said the rate of Vietnamese people accessing financial services is still low, about 30 percent, due to various reasons, and the fastest way to improve the situation is applying technology. Momo has technology and needs specialist partners to facilitate access to financial services.
Branislav Vargic, Chief Operations Officer at Home Credit Vietnam, said his company has decided to further cooperate with technological partners to bring the best benefits to customers, helping them swiftly access financial services.
He described his firm’s cooperation with Momo as a landmark in the consumer finance sector’s advancing towards Industry 4.0.
[Video: More Vietnamese prefer cashless payments]
Experts said consumer finance plays an important role in economic development in Vietnam and the world, helping to promote consumption, people’s access to credit services and capital turnover. In Vietnam, the consumer finance market has grown continually, by nearly 30 percent each year.
Branislav Vargic said rising income will encourage consumers to spend more, especially in an expanding economy. This is a chance of the consumer finance market.
Meanwhile, consumers are switching to online transactions, instead of using cash, and this partnership will also help promote a safe consumer finance market, he added.
Home Credit has had 8.1 million clients in Vietnam and got over 2.5 million downloads for its mobile app with about 1.8 million clients managing consumer loans via this app. Meanwhile, Momo now has over 8 million app users and another 3 million using its services at transaction offices.
Ha Nam province attracts selective investments
Up to 41 of the 44 new projects in Ha Nam so far this year have invested in processing, manufacturing, and supporting industries, a result of the Red River Delta province’s efforts to selectively attract investments.
Tran Xuan Duong, head of Ha Nam’s industrial zones management board, said local industrial parks have welcomed 32 FDI projects and 12 domestic ones worth nearly 306 million USD in total since the year’s beginning.
The industrial parks in the province are currently home to 337 valid projects, including over 200 FDI projects worth over 2.5 billion USD and 136 Vietnamese-invested ones worth 25 trillion VND (1.1 billion USD).
He noted that Ha Nam prioritises investments in the supporting, processing, and manufacturing industries, as well as projects that use advanced technologies; produce products with high competitiveness in the global market; and are environmentally friendly.
It has also paid attention to the capacity and technological application of its investors, and as such most projects have been carried out shortly after receiving licences, he noted.
Duong said the board will step up the development of infrastructure at industrial parks and improve the management of businesses and environment there so that the zones can become a truly attractive destination for investors.
It will also make use of ministries and sectors’ support in promoting investment and reforming administrative procedures. Additionally, the board will actively grasp businesses’ situation to remove obstacles from their activities and ensure their compliance with environmental protection regulations, he added.
Bac Ninh attracts 332.5 million USD in FDI in 7 months
The northern province of Bac Ninh licensed 116 new foreign direct investment (FDI) projects worth 332.5 million USD in the first seven months of 2018, according to the provincial Department of Planning and Investment.
The province also allowed 69 existing FDI projects to increase their capital by 536.7 million USD and revoked 14 projects with investment capital of more than 149.6 million USD.
In July alone, the province issued new investment registration certificates for 20 FDI projects with total registered capital of more than 120.5 million USD, allowed nine projects to increase capital totalling 62.6 million USD and revoked two projects with the investment of nearly 97.2 million USD.
Some large investment projects of Bac Ninh include the ultra-clear laminated glass factory project in Yen Phong Industrial Park, a film and membrane production plant in Que Võ III Industrial Park and Lotte Cinema Bac Ninh.
To date, Bac Ninh has granted investment registration certificates to 1,246 valid FDI, with capital amounting to more than 16.7 billion USD.
OCB issues over 39.6 million USD worth of shares
The Orient Commercial Joint Stock Bank (OCB) has successfully issued shares worth more than 900 billion VND (over 39.6 million USD) to increase its chartered capital.
According to the bank, 90.01 per cent of its existing shareholders bought 90.38 million shares at price of 10,000 VND apiece among 100.4 million offered shares, equal to 20.5 percent of the bank’s chartered capital.
OCB said that the additional capital was to increase the bank’s financial status and meet the capital adequacy ratio (CAR) of Basel II standards.
In addition, OCB issued 69.55 million shares to pay dividends in 2018, equal to 14.2 percent of the bank’s chartered capital.
After the two issues of nearly 160 million shares, OCB’s chartered capital increased from 5 trillion VND (220.3 million USD) to nearly 6.6 trillion VND (290.7 million USD).
The State Bank of Vietnam has recently permitted OCB to open five new branches and two new transaction offices, raising its network to 39 branches and 88 transaction offices nationwide.
OCB reported that its total assets by the end of June rose 7.7 percent against early this year to 90.83 trillion VND (4 billion USD). The bank’s pre-tax profit in the first half of this year surged sharply by 2.6 times year-on-year to more than 1.3 trillion VND (57.3 million USD), helping the bank meet 65 percent of its annual profit target.
According to OCB Chairman Trinh Van Tuan, the bank plans to list on the HCM Stock Exchange in the second half of this year. After the listing, OCB’s market capitalisation is expected to reach 1 billion USD.
Vinalines holds roadshow for upcoming IPO
Vietnam National Shipping Lines (Vinalines) is welcoming all investors interested in becoming shareholders of the corporation during its initial public offering (IPO) scheduled for September 5 at the Hanoi Stock Exchange.
Vinalines Acting General Director Nguyen Canh Tinh said at a roadshow in Hanoi on August 20 that, as a leading maritime business, Vinalines specialises in seaport exploitation, and marine transportation and services.
The corporation will offer more than 488.8 million shares for sale, equal to 34.8 percent of its chartered capital, at the coming IPO. The initial bidding price is 10,000 VND (0.44 USD) per share.
Investors will have to complete registrations and make deposits for the IPO before 15:30 on August 28. Auction tickets should be submitted no later than 16:00 on August 31.
At present, Vinalines operates 14 seaports nationwide and owns the largest area of maritime storage in Vietnam through nine associated companies and subsidiaries. It also owns a fleet of 84 vessels, accounting for 25 percent of the total deadweight tonnage of the domestic sea transport market.
The firm said in recent years, it has successfully restructured and cut down its debt from 9.1 trillion VND (equivalent to 400.8 million USD) in 2014 to 2.61 trillion VND (114.9 million USD) in 2017.
Last year, it posted 15.79 trillion VND (695.6 million USD) in consolidated revenue.
Vietnam, Malaysia firms seek partnership opportunities
Vietnamese enterprises were updated on information related to the market and business community of Malaysia during an event in Kuala Lumpur on August 20.
A business delegation, comprising representatives of 40 Vietnamese enterprises operating in different fields, led by the Research Institute for Medium and Small Enterprises, has been on a working visit to Malaysia to seek cooperation opportunities with local partners.
Vietnamese Commercial Counsellor in Malaysia Pham Quoc Anh also informed the enterprises about recent cooperation between the two countries’ businesses, especially in export-import of farm produce and consumer goods.
Malaysia firms are looking to seek Vietnamese partners for expanding their production and business in Vietnam, he said.
Representatives from Vietnamese enterprises expressed their hope to collaborate with Malaysian partners, thus implementing investment projects and building their production establishments in Malaysia.
Through direct meetings between the two sides’ enterprises arranged in the framework of the event, many Vietnamese firms set up links with Malaysian partners.
Malaysian firms said the exchange is very practical and useful, helping them to effectively connect with Vietnamese businesses.
Experts: Room for technological use in agriculture remains huge
Room for technological application in agriculture remains huge, experts said during a seminar held in Hanoi on August 21.
According to the Institute of Policy and Strategy for Agriculture and Rural Development, in recent years, agriculture enjoyed huge scientific and technological contributions with new studies on rice varieties, animal husbandry, and fruit cultivation.
Nguyen Do Anh Tuan, head of the institute, admitted that however, high-tech agriculture accounts for only 0.2 percent of the gross domestic product, compared to 0.4 percent in nearby countries and 1-2 percent in Thailand and Malaysia.
Nguyen Hoang, from the US’ University of California (Davis campus), said in the long term, representatives from businesses and cooperatives should be allowed to join research and investment funds, appraisal processes, and workforce training systems to form a chain in smart agricultural ecosystems.
He said in developed countries, universities, agricultural ministry’s centres, and private firms are in charge of developing agricultural technology.
According to him, intersectional projects could be done on the back of close collaboration among the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Science and Technology, and units collecting overseas information.
Agricultural encouragement units, local authorities, and businesses could consult such information when considering manufacturing and distribution decisions, he said.
Hoang suggested that the Government allow firms and foreign experts to join project appraisal to increase the practicability of products.
Experts said Vietnam should actively establish partnerships with countries that take the lead in science and technology, such as the US and Germany, so as to access new technological advances and step up technological transfers.
Tuan said Vietnam remains weak in preservation and processing so it could do with learning about new technologies in classification, biology, and nanotechnology to care for plants and animals through digital systems.
Vietnam would benefit from liaising with foreign partners to consult their modern agricultural models and ecosystems to shape a smart agriculture sector, he said, adding that research institutes and universities need to build a channel to popularise products.
Renewable energy aids electrification target achievement
A workshop on renewable energy development to meet rural electrification targets and energy access was held in Hanoi on August 21 as part of the Vietnam Renewable Energy Week 2018 underway in the country.
The event was co-organised by the Vietnam Sustainable Energy Alliance (VSEA) and the Climate Change Working Group (CCWG).
The rural electrification programme for the 2013-2020 period set a target of providing electricity for all households in the countryside, islands, and remote or mountainous areas by 2020, said Dinh Duy Phong from the Electricity and Renewable Energy Authority (EREA) at the workshop.
As of 2015, some 40 communes (or 70.1 percent) had been connected to national grid, while over 165,800 households (accounting for only 17.7 percent) had access to power, he noted.
Although the programme has had to encounter many challenges, independent and off-grid renewable energy projects are emerging as economically-efficient solutions widely used by many communities, Phong added, mentioning two villages in the Tinh Bien border district, in the Mekong Delta province of An Giang, as some of the first having all households using solar power.
Assoc. Prof., Dr. Le Anh Tuan, Deputy Director of the Research Institute for Climate Change at Can Tho University, said the installation of solar panels in homes is the right path of response to climate change, especially given the specific ecological conditions in the Mekong Delta.
Developing renewable energy – such as solar, wind, biomass, tidal, and geothermal power – is suitable for this region as in the long run, the price of renewable energy is not higher than that of thermal electricity. Meanwhile, it is costly to develop thermal power in the Mekong Delta since the price of this power type grows approximately 2 percent annually, Tuan said.
He added that renewable energy may look more expensive in Vietnam but in the future (around 2030) its price will stay at the same level as the thermal electricity, not to mention no environmental impacts.
Nguy Thi Khanh – Executive Director of the Green Innovation and Development Centre (GreenID), a member of VSEA – believes that to fulfil the rural-electrification targets, it is not only technical matter but also how to access funding. This remains the biggest barrier in accessing green technology, which provides green solutions like solar panels or ways to save power at home.
We look forward to a helping hand from financial providers or green development programmes in Vietnam that can support cities and communities in the implementation, said Khanh.
She also unveiled that the GreenID will launch a renewable energy project that draws the initial participation of 100 households in Hanoi.
Co-hosted by the VSES and CCWG, the Vietnam Renewable Energy Week 2018 is taking place in Hanoi, Ho Chi Minh City, and Can Tho from August 21-26 to create a forum for multi-stakeholders to find solutions for removing obstacles and accelerating renewable energy development for all in Vietnam.
It also aims to raise public awareness of the feasibility and benefits of renewable energy and call for concrete actions.
Renewable energy plays an important role in Vietnam’s rural development, helping to create greater income for farmers and modernise agricultural production.
Apart from bringing economic benefits to rural areas, renewable energy is also a domestic energy source that can help Vietnam become more proactive in its energy supply and reduce its dependence on fluctuations in global oil, coal, and gas prices.
In 2015, the Prime Minister approved a renewable energy development strategy by 2030 with a vision towards 2050, which targets an increase in the ratio of power generated from renewable energy to 32 percent by 2030 and 43 percent by 2050.
Cao Bang moves to promote border economy
The northern mountainous province of Cao Bang is mobilising resources to invest in improving infrastructure and build policies to promote border economic development, with the hope of creating breakthroughs in the trade and service sectors.
These efforts are aimed at helping Cao Bang tap its potential and utilize strengths, increasing the local budget revenue, creating more jobs, and raising the incomes of the local population.
Along with cash crop cultivation and tourism, border economy has been determined as one of the three key economic sectors of Cao Bang. Local authorities have put forward many policies to promote infrastructure development and attract investors to the region.
Border trade has also significantly contributed to the new-style rural area development in the province.
A series of infrastructure projects have been implemented in the locality in recent times, including the road connecting to the border gate at Duc Long commune of Thach An district, with a total investment of more than 41 billion VND (1.78 million USD); a project to upgrade the road connecting Dong Khe town and Na Lan open path, with a total cost of 117 billion VND (nearly 5.1 million USD); and a transformer station project to ensure power supply for warehouse businesses.
The Na Lan open path is often bustling with import and export activities, with a turnover hitting nearly 36 million USD in the first seven months of 2018, and the total value of goods temporarily imported for re-export reaching nearly 146 million USD.
As much as 22 billion VND (955,801 USD) was collected during the period in fees for usage of infrastructure and service facilities, greatly contributing to the district’s budget.
Officials from Duc Long commune said that import-export activities have promoted trade and service development and generated jobs for locals. The average per capita income of the commune reaches 26 million VND per year, meeting the income criterion set out in the national target programme on new rural development.
At the border economic zone in Tra Linh district, infrastructure construction has had much promotion under the aim of forming a Tra Linh (Vietnam) – Long Bang (China) border economic cooperation area, which will serve as a hub for goods from China to enter ASEAN member countries through Hai Phong port and vice versa.
Head of the management board of Tra Linh border gate economic zone Nong Son Binh said projects to build parks and extend main roads are underway, aiming to provide top infrastructure facilities for export-import enterprises operating in the locality.
In addition to investment from the State budget, the Tra Linh border economic zone has attracted another six investors which have registered to implement warehousing, trade, and service projects with a total registered capital of 3.67 trillion VND. By now, three warehouses for import-export activities goods have been put into operation.
During the last five years, Cao Bang’s border economic development recorded positive results. The locality has so far invested in 26 infrastructure projects worth 963 billion VND (41.83 million USD).
To date, the locality has attracted 60 investment projects with a total registered capital of over 413 million USD, including 10 foreign-invested projects valued at 48.96 million USD. Of the number, 26 projects have become operational, making it easier for import and export activities.
According to Deputy General Director of the provincial Department of Customs Le Viet Phong, the sector has enhanced its dialogues with local enterprises and listened to their opinions and proposals, towards rolling out measures to facilitate import-export business operations.
He noted, however, that Cao Bang has no industrial parks, concentrated agricultural, nor forestry production areas for export, so it serves only as an area for goods transit.
The management board of the Cao Bang economic zone has been working hard recently on administrative reform in order to create favourable conditions for the clearance of goods at customs.
Head of the management board Nguyen Kien Cuong proposed that relevant ministries and sectors approve a master plan on building the Vietnam-China cross-border economic cooperation area; clarify policies on investment incentives and encouragement in the locality; and support Cao Bang in building and effectively implementing the Tra Linh-Long Bang cross-border economic cooperation area project.
In the 2013-2018 period, the import-export turnover of goods through Cao Bang province reached 9.48 billion USD. The revenue from border economic activities top 2.24 trillion VND per year, making up to around 30-50 percent of the locality’s total budget.
Forum discusses optimising supply chain, business strategy
A forum discussing how to optimise supply chains and competitiveness for enterprises in Vietnam took place in Hanoi on August 21.
The event was held by the Institute for Brand and Competitiveness Strategy (BCSI) in partnership with Portland State University from the United States.
Speaking at the forum, President of the BCSI Council Nguyen Van Nam said the concept of global supply chains is not new to Vietnamese companies. Since Vietnam’s shift from a centrally planned to market economy three decades ago, the country has set up trade relations with more than 180 countries and drawn investment from over 100 countries.
However, most firms only participate in the secondary supply chain, so the products they make don’t have high added value, he said.
About 21 percent of small- and medium-sized enterprises in Vietnam joined the global supply chain while the percentages in Thailand and Malaysia are 30 percent and 46 percent, respectively. Thus, Vietnamese enterprises are less likely to benefit from the spillover effects of FDI firms through the technology transfer, know-how and management skills, he added.
Jay Fortenberry, Lecturer at Portland State University and Chairman of the Fortenberry Group, said to optimise supply chains and improve competitiveness, Vietnamese businesses must better manage supply chain costs and customer demand.
It’s crucial that enterprises are in control of their customer services, the internationally-recognised leader in supply chain management noted.
Daniel Wong, Lecturer at Portland State University, said Vietnamese firms are pioneers in leveraging the industrial revolution 4.0. They have been applying advanced technology and IT solutions, and that means they are on the right track, he noted.
Besides these strengths, Vietnamese entrepreneurs still have many “gaps”, especially in terms of knowledge, as they lack specialists in their businesses. They should enhance management skills to better manage their company, Wong added.
Wong used to serve as Vice President of Logistics and Supply Chain Management at North Pacific and Director of Supply Chain process improvement at Longview Fibre Company in Longview, Washington, the US.
Tra fish exports to US enjoy strong surge
Vietnam’s tra fish export turnover to the US surpassed that to China to hit 58.5 million USD in July, making up 30 percent of the country’s total export value of tra fish.
Reports delivered at a conference in the Mekong Delta province of An Giang on August 21 said Tra fish exports to the US and the European Union (EU) have recovered recently.
Tra fish export turnover to the US in the first seven months of 2018 reached 255.3 million USD, 15.6 percent higher than in the same period last year.
Meanwhile, Vietnam’s exports of tra fish to the EU in the period hit 139.1 million USD, a yearly increase of 16.5 percent.
Notably, tra fish exports to the Netherlands and Italy soared by 43 percent and 83.1 percent, with respective values of 38.1 million USD and 14 million USD.
The US-China trade war is a good opportunity for Vietnamese tra fish exporters to gain market share in the US, experts said.
In January-July, Vietnam’s tra fish export turnover hit 1.198 billion USD, up 19.3 percent year-on-year.
China remained the biggest importer of Vietnamese tra fish, followed by the US and the EU.
Total export turnover of tra fish to China reached 289.8 million USD in the last seven months, an annual rise of 40.6 percent, making up 24.2 percent of total export turnover for the product.
According to General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe, Vietnam’s exporters are facing many difficulties in selling their products in China because the country has erected technical barriers to tra fish products imported from Vietnam.
To promote the export of seafood and tra fish in particular to China, Vietnamese exporting firms need to ensure the quality of their products, VASEP said.
SCB sets up partnership with three Hong Kong banks
Saigon Joint Stock Commercial Bank (SCB) has signed a strategic agreement on comprehensive and long-term cooperation in banking with three banks from Hong Kong.
The deal was inked during an investment promotion event held by the Vietnam Chamber of Commerce and Industry (VCCI) in coordination with Hong Kong Trade Development Council (HKTDC) in Ho Chi Minh City on August 20.
Under the agreement, SCB and three Hong Kong banks – Hang Seng Bank Limited, Chong Hing Bank Limited and The Bank of East Asia Limited – committed to exchanging experience in investment and financial management, increasing business relations and making research and investment, particularly in providing credit to local and foreign enterprises.
Earlier at the event, all four banks inked a cooperation agreement on syndicated credit financing with Union Square Company Limited, a real estate firm. Accordingly, the four banks will support financial investment and ensure a stable financing resource for Union Spare to help it expand.
The two deals will open up new opportunities for cooperation, development and experience sharing among SCB and the three foreign banks. They are also expected to allow the banks to diversify and optimise their financial services, increase business efficiency and heighten their status on the financial market.
SCB is one of Vietnam’s five largest private commercial banks with total assets estimated at 476 trillion VND (almost 21 billion USD) and charter capital of approximately 14.3 trillion VND (630 million USD) as of the end of June 2018. Founded 26 years ago, the bank has branches across 28 cities and provinces and nearly 6,000 employees.
Meanwhile, Hang Seng Bank Limited is one of four Asian banks listed among the world’s strongest banks for five consecutive years. The Bank of East Asia Limited (BEA) is a group of leading financial services in Hong Kong, and Chong Hing Bank Limited has 39 branches in Hong Kong.
Vietjet begins selling tickets on Hanoi-Tokyo route
Vietjet has started selling tickets on its newest international route connecting Vietnam’s capital city of Hanoi and Tokyo capital city of Japan.
This is the carrier’s third flight to Japan, along with the other two routes connecting Vietnam’s Hanoi and Ho Chi Minh City with Osaka, to further meet with travelling and trading demands between the two countries.
The Hanoi-Tokyo route will operate a daily return flight, starting on January 11, 2019 with flight time of more than five hours per leg. The flight departs from Hanoi at 00:55 and arrives at Tokyo at 08:00 (local time). The return flight takes off at 09:30 at Tokyo (local time) and lands in Hanoi at 14:00.
To welcome the new route, Vietjet offers three golden days from August 22-24, 2018 with 2.5 million tickets priced only from 0 VND on website www.vietjetair.com. The promotional tickets are applied on all domestic and international routes to Tokyo, Osaka (Japan); Seoul, Busan, Daegu (the Republic of Korea); Hong Kong; Kaohsiung, Taipei, Taichung, Tainan (Taiwan); Singapore; Bangkok, Phuket, Chiang Mai (Thailand); Kuala Lumpur (Malaysia); Yangon (Myanmar); Phnom Penh, Siem Reap (Cambodia) with flight period from September 5, 2018 to June 30, 2019.
Especially the Hanoi-Osaka route is from November 8, 2018, Ho Chi Minh City- Osaka route from December 14, 2018 and Hanoi-Tokyo route from January 11, 2019.
The promotional tickets are available via sales channels during Vietjet’s golden hours from 12:00 to 14:00 (GMT 7) everyday on www.vietjetair.com (also compatible with smartphones at https://m.vietjetair.com) or www.facebook.com/vietjetvietnam (just click the “Booking” tab).
Payment can be easily made with international debit and credit cards, including Visa/ MasterCard/ AMEX/ JCB/ KCP/Union; or with any ATM card issued by 34 Vietnamese banks and registered with internet banking.
Aiming to be a Consumer Airline, Vietjet has continually opened many new routes, added more aircrafts, invested in modern technology, while offering more add-on products and services to serve all demands of customers.
Since launching operations in 2011, Vietjet has been a pioneering airline, winning the hearts of millions of travelers thanks to its exciting promotions, entertainments, especially during the festive seasons and on various holidays through the year. With high-quality services, diverse ticket classes and special low-cost airfares, Vietjet offers its passengers flying experiences on new aircraft with comfy seats and delicious hot meals served by dedicated and friendly cabin crews, and many more enticing add-on services.
Vietjet 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 also provides consumer goods and services to the customers through the application of advanced E-Commerce technology.
Vietjet 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 honored to be the Best Asian Low Cost Carrier awarded by TTG Travel Award in 2015. Besides that, Vietjet is also honored as the Top 3 Fastest Growing Facebook Fanpage award by Socialbakers.
Currently, Vietjet operates 60 A320, A321 aircraft with more than 385 flights daily, carrying more than 60 million passengers up to date, with 94 routes covering destinations in Vietnam as well as international destinations such as Japan, Hong Kong, Singapore, the Republic of Korea, Taiwan, China, Thailand, Myanmar, Malaysia and Cambodia.
Vietjet plans to expand its network across the Asia-Pacific region and is continuing to expand its regional network. Recently, Vietjet signed a contract agreement to purchase new, modern aircraft from the world’s leading aircraft manufacturers.
Mekong Delta urged to apply hi-tech in fish farming
Minister of Agriculture and Rural Development Nguyen Xuan Cuong has urged the Mekong Delta provinces, especially An Giang, to apply advanced technologies in tra (pangasius) fish production.
Speaking at a conference held on August 21 in An Giang province, Cuong said that catfish exports are likely to exceed 2 billion USD as no other country has the advantage that Vietnam does in this sector.
He said one of the key solutions for pangasius farming was “sustainable development” through cutting-edge technologies.
“Provinces must re-plan production and diversify their products, with priority given to value-added products. They should also diversify export markets,” he added.
Nhu Van Can, Director of the Department of Aquaculture under the Directorate of Fisheries, said in the first seven months, the catfish industry faced a number of challenges, including barriers from import markets. |
An anti-dumping duty and a catfish inspection programme prevented local seafood enterprises from promoting exports of catfish to the US market.
Vietnam’s catfish exporters found it more challenging to export to this market after the US Department of Commerce (DOC) imposed high anti-dumping duties on frozen catfish fillets imported from the country.
DOC has announced that nine Vietnamese enterprises entitled to separate tariffs will be subject to 3.87-7.74 USD per kg, a record-high rate.
Exports of catfish to the EU continue to decline. In addition, Saudi Arabia continues to suspend imports of seafood products from Vietnam.
While China remains a consumer of Vietnamese pangasius products, it is likely to become a potential catfish supplier to the world, which also poses a barrier for the Vietnamese pangasius industry.
Despite challenges, exports in the first seven months continued to increase by 19.3 percent over the same period last year, reaching 1.198 billion USD.
In the first seven months, catfish exports to China reached 289.8 million USD, accounting for 24.2 percent of the market share, and up 40.6 percent over the same period.
Many businesses at the conference said the quality of the breed is the most important factor. They also proposed producing seed varieties with high technology to limit diseases.
Regarding the high-quality catfish breeding project, most of the participants agreed that it will be a new step for the catfish industry.
It is expected that the catfish chain of Vietnam will be strictly controlled, from the first to final stage in the production chain.
In March, the Ministry of Agriculture and Rural Development approved a project on producing high-quality catfish species in the Mekong Delta.
The project aims to contribute to the development of the catfish industry in a sustainable manner to meet the requirements of national and international markets.
Under the project, the three-level catfish fingerling production chain will meet 50 percent of the demand for high-quality catfish in the Mekong Delta by 2020, and 100 percent of demand for high-quality catfish species by 2050.
The project will build up a chain of catfish production in the region, focusing on An Giang and Dong Thap provinces in the region.
The concentrated area for catfish species must be in line with the local land use planning, with an area of 50 hectares or more, convenient for water sources and environmentally sound, in accordance with regulations.
In a recent interview granted to Vietnam News, Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), said in order to export aquatic products to foreign markets, enterprises must comply with requirements on quality, food hygiene and safety.
Vietnamese businesses have been focusing on improving the fisheries production chain, from seed production to cultivation, processing and exporting, he said.
Many companies have been awarded international certificates and are qualified to export catfish fish to high-end markets such as the US and the EU, he said.
Therefore, to maintain export market share, the most important prerequisite is still quality, he said, adding the price of products is also a key factor.
Many companies have updated technology in the value chain, thus the production cost should be further optimised to compete with other aquatic products such as whitefish, tilapia or American catfish, Hoe noted.
VASEP is seeing a recovery in the EU and South America, as well as good growth in the Chinese market with increasing demand for high value products. This shows that Vietnamese catfish is still attractive in the world market.
The seminar was held to review the production and consumption of catfish and implementation of the high-quality pangasius breeding project.
Sci-tech application key to developing smart agriculture
Vietnam needs to optimise the opportunities and achievements from the Fourth Industrial Revolution (Industry 4.0) to develop smart agriculture, heard a workshop in Hanoi on August 21.
The event was jointly held by the Ministry of Planning and Investment, the Ministry of Science and Technology, the Ministry of Foreign Affairs, and the Ministry of Education and Training as part of the Vietnam Innovation Network 2018.
Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said agriculture is one of the most important economic sectors of Vietnam, making up to over 15 percent of the country’s gross domestic product (GDP) in 2017, up nearly 3 percent against 2016, with many high value export items.
The agricultural sector is currently encountering a number of challenges and difficulties such as climate change and small-scale production, he added.
The workshop helped connect experts, research agencies, education facilities, and enterprises to conduct joint research projects and promote the application of science and technology in developing smart agriculture, he noted.
Nguyen Hoang from the US’s University of California (Davis) said Vietnam is capable of leading the world’s agricultural race thanks to its favourable natural conditions and plethora of encouraging policies for the development of high-tech smart agriculture.
A key principle is making use of the internet to set up a network of young experts and intellectuals in the field, he suggested.
The workshop introduced smart agricultural development models from around the world which could be applied in Vietnam, such as building a clean and safe habitat, establishing agriculture startup firms, using robotic technology to grow clean vegetables, and building high-tech aquaculture.
Participants also suggested building an infrastructure database for the sector and reviewing policies and strategies to support agricultural development in Vietnam.
Forum discusses solutions to expand capital-financial market
Officials and experts talked challenges and solutions to expand the capital – financial market of Vietnam at a forum in Hanoi on August 21.
Addressing the event, part of the Vietnam Economic Forum, Deputy Prime Minister Vuong Dinh Hue said it is necessary to look into the imbalance between the credit market and the capital market, between credit and other added services in banks’ credit activities, and between the short-term and long-term markets, particularly the bond market.
He cited the figure of 53 percent of businesses operating unprofitably as of the end of 2016, saying that one of the reasons for this is the lack of capital.
Many companies depend on bank loans to operate, so their financial expense is very high, plus other high expenses like market access and logistics costs, which hampered their business performance, the Deputy PM said.
Deputy Governor of the State Bank of Vietnam Nguyen Thi Hong said over the past years, the financial market hasn’t developed as expected, but the stock and money markets have grown strongly and become the main sources of capital for the economy.
The stock market has recorded many breakthroughs in recent years with total market capitalisation surpassing 70 percent of the country’s GDP in 2017. In the money market, the credit-to-GDP ratio is about 130 percent. Government bonds (G-bonds) still dominate the bond market, while corporate bonds account for only 1.25 percent.
All of them are short-term capital sources whilst the demand for medium- and long-term loans is big, thus putting pressure on credit institutions, Hong said.
Tran Van Dung, Chairman of the State Securities Commission of Vietnam, said Vietnam’s capital – financial market aims to ensure the balance among the banking market, the stock market and the bond market.
The country now has a very developed G-bond market and will boost the corporate bond market in the time ahead, he added.
At the forum, other speakers called for solutions to existing flaws of the domestic capital – financial market such as the shortage of medium- and long-term capital sources.
Ketut Kusuma, a senior specialist at the World Bank, said the structure of Vietnam’s long-term capital market has shown many positive signs. To expand the long-term market, the country should increase data and information transparency, modernise the legal framework and the market’s infrastructure, and improve its monitoring capacity.
For the stock market, it needs to integrate the equitisation of State-owned enterprises into the market development strategy. Meanwhile, the G-bond market should continue to be reformed to join global emerging market indexes, he added.
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