BUSINESS NEWS IN BRIEF 10/12

Fayfay.com announces strategic partnership with Ho Chi Minh City tourism

Hong Kong-based Fayfay.com on December 6 announced that it signed a Memorandum of Understanding (MoU) with the Ho Chi Minh City Tourism Promotion Centre to promote tourism in Vietnam, with a special focus on the city.

The MoU was signed by Tran Ngoc Dong Quan, deputy director of the Ho Chi Minh City Tourism Promotion Centre, along with Kingston Lai and Kelvin Wu, the co-founders of Fayfay.com, at Bep Nha Luc Tinh Restaurant in Ho Chi Minh City, in the presence of industry experts and members of the media.

“Ho Chi Minh City is an important destination on Fayfay.com and we look forward to partnering with the Ho Chi Minh City Tourism Promotion Centre to showcase the city’s vibrant architecture, rich culinary scene, and authentic local experiences,” said Lai.

“We believe strategic joint promotional activities with the Tourism Promotion Centre will enable us to leverage our online platform and inspire Hong Kong travellers to visit Ho Chi Minh City,” added Wu.

As an e-commerce platform dedicated to authentic Vietnamese travel experiences, Fayfay.com not only focuses on curated on-the-ground packages, but also provides all the must-have travel essentials in one convenient place. On the site, travellers will find several resources, such as ‘Visa on arrival’ applications, SIM cards, and private transportation services. In addition, the site is full of opportunities to book memorable hands-on activities, such as lantern-making or silversmithing workshops.

“Hong Kong will be our focal market in the coming years, and we hope that travellers from the city will be inspired to visit Ho Chi Minh City thanks to the exceptional activities and experiences showcased on Fayfay.com,” said Quan. “Together with Fayfay.com, we hope to make a significant contribution to tourism in Vietnam through joint promotional events, roadshows, and media familiarisation trips.”

To celebrate the MoU, Fayfay.com and the Ho Chi Minh City Tourism Promotion Centre led a group of representatives of Hong Kong media agencies to visit Ho Chi Minh City on December 3-7, with flight sponsorship courtesy of Vietnam Airlines.

From the airline’s warm hospitality to the enticing street food, French-colonial architecture, thriving markets, and hands-on experiences, participating media representatives enjoyed an enriching introduction to Ho Chi Minh City.

Fayfay.com is a Hongkong-based e-commerce travel platform dedicated to local experiences in Vietnam. Meaning “fly, fly” in Cantonese, Fayfay.com aims to make visiting Vietnam as hassle-free and enriching as possible with a convenient one-stop shop for travel must-haves, authentic experiences, and keepsakes.

The platform taps into a shared passion for adventure by partnering with local merchants to take travellers beyond the tried-and-tested itineraries. The carefully curated experiences include everything from treks through breath-taking landscapes, delicious dining experiences, authentic encounters, and deep dives into the vibrant Vietnamese culture.

Yamaha motorbikes recalled to fix faults     

Japanese motorbike maker Yamaha is recalling 1,361 motorbikes with high engine displacement in Viet Nam to fix faults related to the engine cooling system and gear box.

The recall campaign is for Yamaha models R3, R25 and MT-03, which were manufactured between July, 2014 and November, 2017.

According to the explanation from Yamaha Motor Vietnam, the models with engine cooling systems faults have seen cooling liquid leak out through cracks in the rubber tubing because the pipes are not up to standard. In the models with shifting issues, it is difficult to shift up due to cracks in the gear shifter’s spring.

The campaign will take place until December 6, 2019 at all Yamaha agents nationwide. It is expected to take three hours and 40 minutes to fix each unit. All costs will be paid by Yamaha Vietnam.

As for the vehicles distributed by other companies, imported to Viet Nam as belongings or diplomatic assets of people working in Viet Nam, the firm will fix the faults for free if its parents organisation recommends doing so. 

Trend Micro and OCB sign security deal     

Orient Commercial Bank (OCB) signed a deal with Trend Micro on Thursday for security solutions to protect its online banking customers from cyberthreats.

It will provide 50,000 customers with the solutions Trend Micro developed on cloud to safeguard users from internet threats, information and data theft and fake digital banks, protect their privacy while they surf the web and find lost devices.

The companies said 59 per cent of Vietnamese have bank accounts and 81 per cent of them use digital banking.

However, the convenience of digital banking notwithstanding, they face threats of personal information leaks or falling victim to cyberattacks, and the need for information security at banks is becoming more and more critical.

OCB told the signing ceremony it prioritised investment in information security systems.

That deal with Trend Micro would protect its system against viruses, ransomware, malware, and zero-day vulnerability exploit, and provide a comprehensive security solution to the server and clients, it said.

Trend Micro Incorporated is a global leader in cybersecurity solutions. 

SeABank to issue shares for capital hike

The Southeast Asia Joint Stock Commercial Bank (SeABank) will issue more than 222 million shares over the course of this month and 2019 in a move to raise its charter capital by more than VND2.22 trillion (US$94.87 million) to nearly VND7.69 trillion.

SeABank will issue 199 million shares to existing shareholders at a price of VND10,000 per share. Another 23 million shares will be issued to the bank’s staff, but the price has not been revealed yet. The deadline for shareholders to decide to buy more shares is December 8.

SeABank said the proceeds will be used to finance the bank’s business activities. VND1 trillion will be used for lending, VND850 billion will be invested in bonds from the Government and other credit institutions and VND350 billion will be invested in fixed assets.

After issuing the new shares, the bank will list its shares on the stock markets within a year.

Governor of the State Bank of Viet Nam Le Minh Hung has approved SeABank’s proposal to increase its charter capital from VND5.46 trillion to VND7.69 trillion.

SeABank’s shares are traded on the over-the-counter (OTC) market at VND12,000 apiece, some 20 per cent higher than the par value.

In the first three quarters of this year, SeABank’s profit was more than VND400 billion, up nearly 83 per cent against the same period last year and equivalent to 48 per cent of its VND829 billion full-year target.

As of September 30, the bank’s total assets reached VND126.47 trillion, inching up 1 per cent from the end of last year. The bank’s outstanding loans increased by 9.8 per cent to VND77.46 trillion while its mobilised capital rose by 15 per cent to nearly VND92.12 trillion. 

Hoa Binh to make investment policy decisions on 11 projects     

The People’s Committee of the northern province of Hoa Binh will issue investment decisions on 11 projects at the provincial investment conference on December 11.

These projects have a total registered capital of VND11.314 trillion (US484 million), and include major projects such as the water processing and treatment factory project in Southest Ha Noi by Aqua One Water Joint Stock Company. This project has a total investment of VND3.04 trillion and a planned capacity of 600,000 cu.m of water per day.

At the same time, the province plans to sign 18 memorandums of investment with a total capital of about VND68 trillion, according to the provincial People’s Committee office chief Nguyen Van Thang.

The upcoming investment promotion conference aims to summarise the results of 15 years of investment while promoting the potential and advantages of the province to domestic and foreign enterprises in order to attract key projects to the locality.

From the beginning of this year, the province has seen 69 new investment projects, including two foreign direct investment (FDI) projects.

Till date, there are 544 projects in Hoa Binh Province, including 37 FDI projects with total registered capital of $502 million and 507 domestic projects with registered capital of nearly VND64.89 trillion.

In 2018, there were 450 newly registered enterprises with a total registered capital of VND7.5 trillion. By the end of 2018, there will be 2,800 enterprises in the province with a total registered capital of VND36 trillion. 

HCM City ties up with VN-focused Hong Kong tourism site     

The HCM City Tourism Promotion Centre has tied up with Hong Kong-based Fayfay.com to attract travellers from Hong Kong and to promote Viet Nam’s tourism.

On Thursday, it signed a memorandum of understanding with the e-commerce travel site dedicated to Vietnamese travel experiences.

The MOU comes at a strategic time after visitors from Hong Kong to Viet Nam hit a record high in the first 10 months of this year.

“Hong Kong will be our focal market in coming years, and we hope that travellers from Hong Kong will be inspired to visit HCM City thanks to the exceptional activities and experiences showcased on Fayfay.com,” Tran Ngoc Dong Quan, deputy director of HTPC, said.

“Together with Fayfay.com, we hope to make a significant contribution to tourism in Viet Nam and HCM City through joint promotional events, roadshows and media familiarisation trips.”

Kingston Lai, co-founder of Fayfay.com, said: “HCM City is an important destination on Fayfay.com and we look forward to partnering with HTPC to showcase the city’s vibrant lifestyle and unique architecture, rich culinary scene, and authentic local experiences.”

As an e-commerce platform dedicated to Viet Nam travel experiences, Fayfay.com not only focuses on curating on-the-ground packages but also provides all the travel essentials.

On the site, travellers can find several resources such as immigration support, SIM cards and private transportation.

The website is full of opportunities to book memorable hands-on activities such as lantern-making and silversmithing.

Nguyen Thi Anh Hoa, deputy director of the HCM City Department of Tourism, said China was an important inbound market for the city’s tourism.

Last year, HCM City welcomed 532,644 people from China or 13.3 per cent of all Chinese visitors to Viet Nam, a year-on-year increase of 33 per cent.

In the first six months of this year, the number of Chinese visitors to the city was 495,356, a 21.8 per cent year-on-year rise.

Chinese travellers to Viet Nam usually stay for six to seven days, spending an average of US$639 per trip.

With an increasing number of direct flights between Viet Nam to major Chinese cities, it was expected more and more travellers from China would come, she added. 

Firms have social responsibility     

Highly capable and diverse boards of directors that adhere to social responsibility are crucial for corporate sustainability, experts said during a forum in HCM City on December 7.

The forum was held by Viet Nam Institute of Directors (VIOD) and Viet Nam Corporate Governance Initiative (VCGI), both of which focus on promoting good corporate governance practices.

Amar Gill, managing director of BlackRock, a New York-based global investment management corporation, said that to achieve corporate sustainability, a company has to focus on its operation and long term vision, and examine its management capability and impact on the environment and society.

In addition to keeping the best interests of shareholders, boards of directors need to carefully monitor business strategy planning and implementation as well as effective resource allocation.

Risk management regarding finance, business operations and climate change is also crucial.

Gill also said that companies must keep track of their impact or “footprint” on the environment and society and minimise the negative impact.

If not, they risk losing their “social licence to operate”, which refers to stakeholders’acceptance of a firm’s business practices.

Vu Thi Thuan, chairwoman of Traphaco, a Vietnamese pharmaceutical company, said that companies should manage their risks well as investors always look to the future.

In the case of Traphaco, the company invested in its own ingredient zones to harvest high quality materials, because it could not afford a shortage of materials or low quality ingredients.

She also said that awareness of the importance of climate change and management to ensure sustainability should be improved.

Boards should also have diversity, including people of different backgrounds and experiences, and both men and women.

“The diversity of board members helps them evaluate issues from a variety of perspectives before making decisions, and complements each other to increase the effectiveness of the boards of directors,” said Dr. Vu Bang, a member of the Prime Minister’s Advisory Group and the chairman of VCGI.

However, Vu Quang Thinh, CEO and board member of Dynam Capital, which specialises in asset management, said that the diversity of many boards of directors in Viet Nam, especially in family-owned businesses, is limited.

Many boards of directors in Vietnamese companies are composed primarily of relatives, as opposed to fully independent members.

Many Vietnamese board members generally have similar backgrounds and experiences, which mean they may be used to a limited number of ways of operating.

Viet Nam’s corporate governance has seen improvement over the years due to development of regulations and assistance from consultant firms and business groups, according to VIOD.

Nonetheless, it is still lackluster compared to other ASEAN countries. More regulations to ensure clarity and fairness, as well as higher quality and responsible boards of directors, are required.

US ambassador wants ’free and open’ Asia

Speakers at the Indo-Pacific Dialogue held in HCM City. 

 A “free and open” Asia is vital to achieve the mutual goal of all nations to ensure peace, stability and prosperity regionally and globally, speakers said on December 7 at a regional economic forum held in the city.

Speaking at the Indo-Pacific Dialogue, US Ambassador to Viet Nam Daniel J. Kritenbrink said: “Our vision for a free and open Indo-Pacific excludes no nation”.

The US has a long tradition of partnership in the Indo-Pacific region, which encompasses more than half the earth’s surface and more than half the human family.

Two-thirds of global trade happens in the region, and its economic potential and strategic importance are growing by the day, Kritenbrink said.

This year, the US provided more than half a billion US dollars in security assistance to the region, including US$385 million in foreign military financing, more than the prior three years combined.

Over the past two years, American businesses have announced more than 1,500 new projects and more than $61 billion in new investments across this region.

“We conducted $1.8 trillion in two-way trade with Indo-Pacific nations in 2017,” Kritenbrink said.

US total investment in the Indo-Pacific is now more than $1.4 trillion, which is more than that from China, Japan and South Korea combined.

According to the Asian Development Bank, developing countries in the Indo-Pacific need $1.7 trillion in infrastructure investment every year, or $26 trillion by 2030.

No government has this amount of money, but countries that rely on state-dominated funding for development will come up short by crowding out the high-quality private-sector investment their economies need most, according to Kritenbrink.

The US aims to unleash the power of the private sector, which can access the $70 trillion in private capital located in the world’s financial centres.

Only if countries welcome private investment will those trillions of dollars get off the sidelines, into their economies, and build productive enterprises that create jobs and prosperity.

“The US is committed to supporting the development of a strong, prosperous and independent Viet Nam that contributes to international security, engages in free, fair, and reciprocal trade, and respects human rights and the rule of law,” Kritenbrink noted.

On security, the US is working to enhance Viet Nam’s military capabilities so it can play a more active role in advancing its own interests, according to the ambassador.

As for trade, the US is looking at ways to reduce its trade deficit and promote fair and reciprocal trade between the two countries.

“We have identified energy as a priority sector of opportunity for US exports and investment in Viet Nam, including power generation, oil and gas exploration, liquid natural gas (LNG) imports, and wind and solar power,” he noted.

Pham Quang Vinh, deputy minister of Foreign Affairs, who was the previous Vietnamese ambassador to the US, said that Viet Nam welcomed all initiatives and efforts to better connect the region and achieve its goals.

“We particularly appreciate initiatives that aim to strengthen trade and economic cooperation in the region, especially in infrastructure and energy,” he said.

Viet Nam and the US have developed a comprehensive partnership over the past years in all areas, he added.

Speaking on the sidelines of the meeting, Vinh told Viet Nam News that the US is one of Viet Nam’s top 10 foreign investors with nearly 900 ongoing projects valued at more than $10 billion. The US is also Viet Nam’s third largest trading partner.

Viet Nam will continue its efforts to reform administrative procedures, and build a strong and sustainable economy based on innovation and technology, he said.

“We expect the dialogue today will further strengthen the partnership between the US and Viet Nam through concrete and effective projects,” Vinh said.

“We welcome the US, working alone or in partnership with others such as Japan, India, Australia and South Korea to invest more in Viet Nam in such areas as infrastructure, energy, railway and aviation, among others.”

Last year, US and Viet Nam bilateral trade continued to grow, totalling $54.7 billion, with potential for fair and free trade still largely untapped.

In July, Secretary of State Michael Pompeo announced the “Indo-Pacific Economic Vision” to increase Vietnamese and American trade and trade in the Indo-Pacific region in general.

Other topics at the dialogue included macroeconomic trends, credit outlook and capital flows for the Southeast Asian region, and digital trade.

The event also discussed financing infrastructure for Viet Nam and other Southeast Asian nations.

The Asian Economic Forum is an economic-focused “think tank” with research interest in public policy. It offers a platform for regional Asian communities and global stakeholders to meet and discuss ideas and solutions for the long-term sustainable economic development of Asian economies and the stability of their underlying financial markets. 

Centre founded to support co-operatives     

A support centre for co-operative development was opened in Ha Noi on December 6 to help Vietnamese co-operatives get more involved in agricultural value chains.

Nguyen The Phuong, director of the centre set up by the Viet Nam Cooperative Union for Agricultural Consumption (UCA), said it would help co-operatives join sustainable value chains.

UCA Chairman Pham Anh Tuan said Viet Nam had been strongly integrating into the global economy, meaning to bring both opportunities and challenges to the nation, especially for agriculture.

“The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is scheduled to take effect in January 2019. Besides exporting farming products to large markets under CPTPP, Viet Nam’s export products will face challenges posed by competition from products from other CPTPP member nations including Australia, New Zealand and Japan.”

Therefore, Vietnamese goods would have to meet the other countries’ standards while being safe and cheaper than agricultural products from other signatories, or they would lose in the domestic market, said Tuan.

“To do that, it is necessary to boost land accumulation, mass production and high-tech application to improve quality and labour productivity and reduce production costs,” Tuan said.

He said the UCA, founded more than two years ago, would have to do much more to contribute to Viet Nam’s agriculture.

According to the Viet Nam Cooperative Alliance, co-operative groups and co-operatives make up nearly 4.8 per cent of the country’s GDP. There were 21,026 active co-operatives as of June 30 this year, up 934 against the previous year. More than half were in agriculture or agricultural service.

Viet Nam wants to have at least 15,000 agricultural co-operatives and co-operative unions operating by 2020. 

Viet Nam aims to become furniture hub     

Vietnamese wood and furniture firms need to improve their designs, distribution and brands to enable Viet Nam to become a global furniture hub, a conference heard in HCM City on Friday.

Huynh Van Hanh, deputy chairman of the Handicrafts and Wood Industry Association of HCM City (Hawa), said Viet Nam was among the world’s largest furniture exporters, trailing only China, Germany, Italy, and Poland.

He quoted Prime Minister Nguyen Xuan Phuc as saying at a recent conference that Viet Nam must become one of the world’s quality furniture production hubs and the industry must pay more attention to environmental protection and use timber from legal sources.

“Our business community has said no to illegal timber and we strictly use legal timber for our furniture production.

“To achieve the target, we must build brands for Vietnamese furniture so that when people talk about Viet Nam, they will talk about Vietnamese furniture brands.

The industry uses a lot of technology and machinery and so human resource training must be enhanced, requiring enterprises to collaborate with universities and colleges and vocational training centres, according to Hanh.

Besides, companies need to improve their design capacity, build their own brands and develop supporting industries for the sector.

Pham Phu Ngoc Trai, chairman of Global Integration Business Consultants, said Vietnamese wood processing firms had certain advantages but had not invested in trade.

According to Nguyen Quoc Khanh, Hawa chairman, wood and forestry product exports have been worth US$9 billion so far this year and the full-year figure is expected to exceed $9.5 billion, a year-on-year increase of 16 per cent.

The US-China trade tension offers opportunities for Vietnamese firms to increase exports to the US since Vietnamese products enjoy zero tax there while Chinese products attract 10 per cent and it could even become 25 per cent if the trade war escalates.

But over 93 per cent of the 4,500 wood processing firms in Viet Nam are small, preventing the sector from developing to potential.

“We have opportunities to improve efficiency in the sector’s value chain,” he said.

He called on businesses to invest more in advanced equipment and technologies to improve their productivity and competitiveness.

“Next year the wood and furniture industry is likely to achieve a breakthrough,” he said.

“In fact, we will become the world’s largest hub for design and production of quality furniture products for the world market.

“We hope that in the near future we will become major suppliers for large global furniture projects.”

EVFTA and CPTPP

Deputy Minister of Industry and Trade Tran Quoc Khanh said if both the EU-Viet Nam Free trade agreement and the Comprehensive Progressive Tran-Pacific Partnership Agreement (CPTPP) come into force next year, they would have a great effect on Vietnamese furniture exports.

The preferential tariffs would help Viet Nam’s wooden industry, known for its quality, to get more new export orders, he said.

Consumers in the EU and other major markets such as the US and Japan are increasingly demanding the use of legal timber in making furniture, and so Viet Nam must strictly comply with the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade that Viet Nam and the EU signed last October, according to Khanh.

Speaking about the US-China trade tension, he said some experts reckoned it would be an opportunity to increase exports to the US and there would even be a shift in investment from China to Viet Nam.

They could be right since in international trade a tax difference of 10 per cent is large, he said.

“In general, there is an opportunity to boost exports but it is not as large as we thought.”

Besides, the opportunity might entail risks since China could use the Vietnamese market to evade US taxes, he said.

“I call on businesses not to indulge in such fraud, and the ministry, customs agencies, and relevant agencies must enhance measures to prevent it.”

Organized by Hawa, the seminar attracted more than 300 wood and furniture businesses. 

Vietjet announces new route linking Phu Quoc with RoK capital

Budget carrier Vietjet Air on December 7 announced the opening of a new route linking Phu Quoc island in the southern province of Kien Giang with Seoul of the Republic of Korea.

The event was witnessed by Vietnamese National Assembly Chairwoman Nguyen Thi Kim Ngan, Speaker of the RoK’s National Assembly Moon Hee-sang, and Vietjet Chairwoman Nguyen Thanh Ha, among others.

The Phu Quoc – Seoul route will operate daily return flights from December 22, with a flight time of around 5.5 hours per leg. Tickets for the air route are now on sale at www.vietjetair.com.

Speaking at the event, Vietjet Chairwoman Ha said that Vietjet was the first airline that offered flights to Phu Quoc International Airport in 2012, and it launched the first flight linking the RoK and Vietnam in 2013. 

Vietjet Chairwoman Nguyen Thanh Ha makes remarks on launching Vietjet’s Phu Quoc-Seoul route at Vietnam-RoK Business and Investment Forum in Seoul (Photo: Vietjet Air)

Since then, Vietjet has quickly gained the trust and love of locals, the business community and tourists travelling between the two countries while also actively contributing to the promotion of trade and tourism between the two countries and across the region. The airline has carried more than two million passengers between the two countries, she added.

Dubbed “the Pearl Island”, Phu Quoc covers an area of about 570 sq.km, making it the largest island in Vietnam. As a well-known tourist spot, Phu Quoc has attracted strong levels of investment in hotels and resorts in recent years.

With this new service linking Phu Quoc and Seoul, Vietjet has not only created more convenient traveling opportunities to locals and tourists in both countries but will also further fly the flag for this stunning island, contributing to more investment and tourism growth future. 

Vietjet is the first airline in Vietnam to operate as a new-age airline offering flexibly-saving ticket fares and diversified services to meet customers’ demands. It provides not only transport services but also uses the latest e-commerce technologies to offer various products and services for consumers.

The airline currently operates seven other routes between the RoK and Vietnam, including Seoul – Hanoi/Ho Chi Minh City/Hai Phong/Da Nang/Nha Trang, Hanoi – Busan and Danang – Daegu.

Vietnam Logistics Forum spotlights regional economic links

The sixth Vietnam Logistics Forum convened in the northern coastal province of Quang Ninh on December 12, with businesses and authorities exchanging ideas and measures to increase investment in green logistics and connections among economic regions.

At the forum, Deputy Prime Minister Vuong Dinh Hue said cooperation for the development of green logistics services is a top priority, urging ministries, sectors, localities, business associations, and enterprises to work together for better results and competitiveness. 

He noted that Vietnam has implemented various mechanisms and policies to encourage investors to take part in the building of logistics infrastructure and production chains. 

The official recommended a range of measures regarding the growth of the sector, including applying advanced technologies, forming regional links, and facilitating trade among ASEAN member states.

As heard at the event, Vietnam has signed 14 free trade agreements to date, opening a larger window for partnerships and creating favourable conditions for foreign businesses to invest in its logistics.

In 2018, the local logistics sector, now consisting of some 3,000 enterprises, is estimated to grow between 12 and 14 percent. According to a report from the World Bank (WB) released on July 24, Vietnam’s position in the Logistics Performance Index (LPI) for 2018 rose 25 levels compared to 2016, jumping to 39th place among 160 surveyed countries.

Vietnamese firms mainly provide domestic logistics services such as transport service, airport, seaport, warehouse services, and cargo handling services. A few of them also provide international logistics services by acting as agents for foreign enterprises.

Nighty percent of the total number of Vietnamese logistics companies have registered capital of under 10 billion VND (430,000 USD), and only five percent have more than 20 billion VND (860,000 USD). Just over 360 firms hold memberships in the Vietnam Logistics Business Association (VLA), reflecting a low level of connection among the group.

Currently, many localities have yet to consider developing logistics as a basic sector in support of other sectors. As a result, many locations hold potential, but lack funding for logistics development. To address these shortcomings, relevant agencies are working on administrative reforms that will cut the number of procedures and promote e-governance practice.

VLA Vice President Dao Trong Khoa said that trade promotion and the expansion of international cooperation in logistics have helped the sector maintain its growth momentum. 

PetroVietnam surpasses production targets for 11 months

The Vietnam National Oil and Gas Group (PetroVietnam) has reported an oil and gas production output of 22.1 million tonnes in the first 11 months of 2018, surpassing its target by 5.4 percent and fulfilling 96.8 percent of its yearly plan.

The firm’s oil production in the period reached 12.84 million tonnes, exceeding the target by 5.6 percent.

Along with oil and gas, the firm also enjoyed high production of other products, including 18.99 billion kWh of electricity, 1.477 million tonnes of nitrogenous fertilizer, and 8.53 million tonnes of petroleum.

In the January-November period, thanks to high outputs and higher oil prices than expectation, total revenue of the group hit 542.34 trillion VND (23.32 billion USD), exceeding the target by 16.8 percent and surpassing the yearly plan by 2.2 percent.

The firm contributed 108.12 trillion VND (4.64 billion USD) to the State budget in 11 months, 46.7 percent higher than its target for the whole year.

Particularly, at the end of November, many member companies of the group completed their goals, with three companies exceeding their yearly financial targets from 30-63 percent, namely BSR, PVGas and PVTrans.

Customs budget collection reaches 12.14 billion USD in 11 months

The customs sector collected over 284.2 trillion VND (12.14 billion USD) in taxes as of November 30, a year-on-year rise of 7.27 percent.

The figures were revealed by the General Department of Vietnam Customs at a press conference in Hanoi on November 5.

The outcomes were attributed to the surge in import-export turnover which hit 439.96 billion USD, up 13.3 percent against the same period last year. 

Of which, the export earnings reached 223.76 billion USD, up 14.5 percent year-on-year. Meanwhile, the import value was 216.2 billion USD, a year-on-year rise of 12.1 percent. 

As of November 30, 2018, the customs sector collected and handled tax arrears worth more than 1.4 trillion VND (59.8 million USD). 

The department has signed cooperation agreements with 39 banks, including 24 which are piloting e-tax payment systems.

As a result, by the end of November 2018, the customs sector collected over 269.9 trillion VND (11.5 billion USD) of taxes through the banking system.

Le Manh Hung, Deputy Director of the Foreign Trade Agency under the General Department of Vietnam Customs, revealed that 3,235 businesses have so far conducted e-tax payments.

The implementation of e-tax payment systems is to supplement current payment channels to facilitate enterprises making payments to the State budget, as well as to support enterprises to open more accounts at foreign banks and large businesses, he added.

Vietnam increases export of industrial, aquaculture products to China

Vietnam has seen a gradual increase in its proportion of industrial and agricultural, forestry, and aquatic products exported to China, and a reduction in its export of raw materials, fuels, and minerals, heard a forum in Ho Chi Minh City on December 5. 

The Vietnam-China economic and trade cooperation forum 2018 was held by the Vietnam Chamber of Commerce and Industry (VCCI) and the China Council for the Promotion of International Trade (CCPIT). 

China is now a major trading partner of Vietnam, while Vietnam is the eighth largest trade partner of China in the world. Their two-way trade in the first 10 months of 2018 reached 86.7 billion USD, up 13.6 percent over the same period in 2017.

China has ran 2,041 investment projects with a combined registered capital of 12.78 billion USD in Vietnam to date, ranking seventh among the 129 countries and territories investing in Vietnam. 

Representatives from Vietnamese firms said their main exports to China are electronics, computers and spare parts, farm produce, and footwear, while China is a large market supplying Vietnam with a wide range of items such as machinery, equipment, fabrics, and steel. 

Vo Tan Thanh, Vice Chairman of the VCCI,said that in terms of trade ties, Vietnam and China are making good progress as both sides have carried out their policies of economic reform and international integration for many years.

With many similarities and geographical advantages, China is always one of the markets with great potential for Vietnam, he noted. 

The forum aims to update the two sides’ business communities on trade and investment-related information, he said, adding that it also creates a venue for them to seek and set up partnership, contributing to the bilateral trade and investment cooperation in the time to come. 

Yu Haiyan, vice head of the CCPIT,said that China is promoting reform and opening up its market, providing opportunities for foreign investors, including those from Vietnam.

Business associations and trade promotion organisations of Vietnam and China have continuously connected the two sides’ business communities in many fields, she noted, stressing that the CCPIT is one of the units actively carrying out many trade activities, contributing to fostering cooperation enterprises in particular and the two countries in general.

Yang Xiuyou, Vice Secretary General of the Shenzhen municipal People’s Committee,said the locality will continue to create favourable conditions for the two countries’ enterprises to expand economic and trade bonds, especially in equipment production, electricity, and renewable energy. 

He suggested that Vietnamese firms foster cooperation with his locality in science and technology, IT, energy preservation, environmental protection, and new materials, as well as join fairs, exhibitions, and investment and trade promotion activities in Shenzhen. 

According to statistics, in recent years a great number of Chinese companies have sought to invest in Vietnam, as the Southeast Asian nation becomes an increasingly attractive destination for foreign investors. 

It is expected that many Chinese firms will seize opportunities to invest and expand business in many fields in Vietnam.

Hoa Binh to host investment promotion event

A conference to promote investment in the north western mountainous province of Hoa Binh is set to take place on December 11 in Hoa Binh city of the province, heard a media conference on December 6.

Prime Minister Nguyen Xuan Phuc will attend the event, along with 440 Vietnamese and foreign guests, said spokesperson and chief of the office of the Hoa Binh People’s Committee Nguyen Van Thang.

At the conference, the chairman of the provincial People’s Committee will present investment decisions to 11 projects with total registered capital of about 11.31 trillion VND (about 486 million USD). 

In addition, as many as 18 memoranda of understanding totalling about 68 trillion VND (2.92 billion USD) are expected to be inked at the event. 

On December 12, three events will kick off in Hoa Binh’s Cao Phong district concurrently, including a citrus festival, a five-day agricultural fair and a forum on the development of citrus trading in the northern mountainous region. 

Real estate in Saigon the most sought after in Vietnam

Saigon leads Vietnam in real estate interest, drawing 300 million internet searches in the last 12 months.

According to a report recently issued by Batdongsan.com.vn, one of the biggest property portals in Vietnam, Hanoi is the second most searched city when users look up real estate at 170 million searches.

The two cities are followed by central Da Nang City, southern Bien Hoa town, northern Hai Phong City, central Nha Trang town, and Vung Tau Town and Can Tho City in the south in terms of popularity. Overall, the leading position of Saigon real estate is predicted to continue to remain the same because of its housing market is still seeing a lot of actions.

Consumer data collected from Internet queries also showed the level of interest given to real estate in each specific area.

Saigon attracted the highest level of interest, at 41.8% of recorded consumers, the largest in Vietnam, while Hanoi had 29.7%. Central Khanh Hoa Province, Da Nang, and southern provinces of Dong Nai and Binh Duong recorded modest numbers, fluctuating between 3 to 4.5%. Interest is measured by saved searches, favorites and number of queries.

The report also reveals that budget and midrange apartments in Saigon and Hanoi, which are priced between VND20-VND30 million (US$860.47 – US$1,290) per square meter, with an area of around 60-70 square meters are the type of high-rise apartments that attracts the most attention from Internet users.

Meanwhile, in regards to content posted on the website of this organisation, foundation land (land serving as the foundation for housing projects to be built on) tops the board in the number of posts published, at 1.2 million posts.

The land is also the most indulgent hunting with nearly 120 million searches, showing the habit of clinging to land, ownership of real estate in the territory of the Vietnamese, said the report.

In addition, separate houses attached to land are also highly sought after, at nearly 120 million searchers. This shows the Vietnamese consumers’ preference to own land, or possess properties attached to land, according to the report.

DHL Express opens Hanoi East Service Centre

DHL Express, the world’s leading international express delivery provider inaugurated its Hanoi East Service Centre at Sai Dong B Industrial Park, Long Bien District, Hanoi on December 7.

Covering an area of 5,800 square metres, this is the largest DHL’s service centre in the capital city with a total investment capital of VND143 billion.

The centre is equipped with modern equipment to optimize procedures and support trade between Vietnam, nations in the close by region and across the globe.

The new facility will especially provide support to businesses in Hanoi’s central trading area in and those located in the city’s northern and southern areas and Nam Dinh city.

Shoeib Reza Choudhury, general director of DHL-VNPT Express Ltd said the inauguration of the new facility is part of DHL’s strategy to expand its business operations to overseas markets to meet the demands for international express delivery.

Yasmin Aladad Khan, Senior Vice President, DHL Express, South East Asia, said DHL Express regards Vietnam as a highly potential market and one of the rising stars in the region, noting that Vietnam’s economy has played an important and strategic role in the emerging economies of the Asia-Pacific Economic Cooperation (APEC) Forum.

Ms Yasmin Khan emphasized that located in one of the fastest growing economic zones and industrial parks in northern Vietnam the new service centre is expected to serve as a bridge stimulating the development of Vietnam’s economy which sees remarkable improvement in the logistics industry.

With a global network of express delivery and more than 100,000 staff, DHL Express is available in 220 nations around the world with 120 destinations. DHL now has more than 4,500 service centres, meeting the demands of more than 8 million customers. DHL Express first set foot in Vietnam 30 years ago.