Gareth Ward What is your impression of Vietnam and its growth momentum? Do British investors see the country as an attractive business destination and what changes are they looking for in Vietnam? I have been here for only two months, but already feel the dynamism of the economy. The UK is rated as the third-largest EU investor in Vietnam, but I believe that the real figures from UK companies are even higher, because many of them invest via their subsidiaries in Singapore or Hong Kong. More British investors are now looking at the Vietnamese market because of its growth potential, openness to global trade, and focus on improving the business environment. For new investors, the availability and consistency of information are always important. Therefore, British companies want more transparency and access to information about business opportunities, processes, and regulations. Vietnam is working on its strategy to keep pace with the Fourth Industrial Revolution. In what ways can the … [Read more...] about Uniting with Britain to maximise potential
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BUSINESS IN BRIEF 27/7
PV Gas posts higher-than-expected H1 results PV Gas reported better-than-expected business results for the first six months of the year.Total revenue reached over VND37 trillion (US$1.6 billion) while net profit was VND5.32 trillion ($231.4 million), up 12 per cent and 30 per cent, respectively, against the same period last year.With these results, the company has completed 66 per cent of its revenue target and 83 per cent of its profit target set for the whole year.The operating profit margin, which measures how efficiently a company is at generating profits from its revenue, reached 14 per cent.The company paid VND2.53 trillion to the State budget, equivalent to 87 per cent of its yearly plan and up 21 per cent year-on-year.Up until June, total assets hit nearly VND66.2 trillion and owner’s equity reached VND45.8 trillion.In the latter half of this year, GAS expected global oil prices to remain high compared to its plan, which will support the company’s … [Read more...] about BUSINESS IN BRIEF 27/7
LEL Express to pioneer e logistics
The second automatic sorting centre of Lazada E-Logistics Express (LEL Express) in Hanoi is expected to improve LEL Lazada's services. Vu Duc Thinh, director of LEL Express talked with VIR's Nguyen Huong about the new facility. Vu Duc Thinh, director of LEL Express at the opening ceremony of the automatic sorting centre in Hanoi on June 12 This is the first automatic sorting centre of Lazada in the northern area. How does it measure up against the facility you opened in Ho Chi Minh City in November last year? The capacity of this second centre is over 10,000 items per hour, and it has an area of 10,000sq.m. Along with the centre in Ho Chi Minh City, the total capacity of LEL Express’ automatic sorting line is tens of thousands items per hour. Could you share more about the processes and operation of this system? What cutting-edge technology does it sport? With the capacity of 10,000 items per hour, the automatic sorting hub is expected to match the goods volume of … [Read more...] about LEL Express to pioneer e logistics
BUSINESS IN BRIEF 24/6
Wood exports continue expanding in first months of 2018 An upturn has been seen in exports of wood and wooden products, with export value in the first five months of 2018 reaching 3.3 billion USD, up 8.2 percent from the same period last year. The top four markets were the US, China, Japan and the Republic of Korea (RoK), together accounting for 78.1 percent of total export revenue. Strong growth was seen in the RoK and the US markets, with 45.3 percent and 9.7 percent respectively. In the first four months of 2018, Vietnam earned 1.1 billion USD from exporting wood and wooden products to the US, 367.3 million USD from China, 350.7 million USD from Japan and 288.8 million USD from the RoK. However, Nguyen Quoc Khanh, President of the Handicraft and Wood Industry Association of Ho Chi Minh City, warned that the US, the largest market for Vietnamese wood and wooden products, has prioritised the domestic wood sector by reducing corporate income tax from 35 percent to 25 percent. He … [Read more...] about BUSINESS IN BRIEF 24/6
Banks begin tightening screws on property credit
The central bank has instructed commercial banks to maintain credit growth in these sectors within safe limits.— Photo zing.vn Huynh Quang Khanh invests in real estate by leveraging credit. Seventy per cent of his investment comes from banks. He has borrowed VND1 billion at an interest rate of 9.5 per cent from a bank in Tan Phu District and also asked some of his relatives to borrow on his behalf from that bank. Khanh, 54, of HCM City’s Tan Phu District, said he was told by the lender that the interest rate had been increased to 12 per cent. “I am looking to sell some of my land to reduce the loans because I am afraid the interest rates would continue to rise and I will be unable to afford,” he said. While Khanh complains about the increase in the rates, Nguyen Cong Tang of Thu Duc District is unhappy that a bank refused to lend him 70 per cent of the value of a house he wants to buy. He said in the past the bank was always ready to lend him the money but now … [Read more...] about Banks begin tightening screws on property credit
HDBank gets core banking system
HDBank gets core banking systemBy Quoc Hung - The Saigon Times DailyHCMC - The HCMC-based Housing Development Commercial Joint Stock Bank, or HDBank, announced last Friday that it had succeeded in applying a core banking technology solution for modern services.The bank uses SunGard’s System Access SYMBOLS through cooperation with two other partners including HP and Oracle companies to help it modernize its core banking operations.This system allows the bank to develop modern banking services, local and international payment card services, and hi-tech services such as Internet Banking and Home Banking.System Access SYMBOLS’ technology gives it the integration, as well as Internet banking capabilities that are critical in network expansion plans.The new core banking software enables HDBank to centrally manage their business and customer information, as well as support HDBank’s growth plans.The system allows the bank carry out 10,000 transactions per second and manage … [Read more...] about HDBank gets core banking system
BUSINESS IN BRIEF 15/1
Leather, footwear sector targets 20 bln USD in export earningsVietnam sets a target of earning between 19.5 - 20 billion USD from leather and footwear exports in 2018, up 10 percent from 2017, heard a conference in January 12.According to the Vietnam Leather, Footwear and Handbag Association (LEFASO), the leather and footwear industry is expected to grow 5 percent from last year, with the localisation rate reaching 55 percent. Footwear and handbags will remain Vietnam’s top four and 10 exports, respectively.Addressing the event, LEFASO Vice President Phan Thi Thanh Xuan highlighted positive signs in the world’s economy and increasing consumption demand, saying that these create both favourable conditions and challenges to Vietnam in exports and investment.In order to help Vietnamese exporters realise the target, the association will actively participate in relevant policy making while luring foreign and domestic investment in support industry, thus increasing the … [Read more...] about BUSINESS IN BRIEF 15/1
Farming with phones and without soil
The world of information technology has come into farming in the central region. Nguyễn Quốc Phong has brought those skills with him to farm in a way that soil is not used to grow crops. Rather, crops are fed water with special food for plants in the liquid. Farmers can use their smart phones to tell them when it is time to water their plants that are grown in this way. By Hoài Nam After working with the military-run telecom group Viettel for seven years, Nguyễn Quốc Phong decided he wanted to do something else. The 33-year-old man from Núi Thành District in Quảng Nam Province has since used his IT know-how and experience to study and promote hydroponic farming, launching a startup of his own. Hydroponics is a subset of hydroculture, the method of growing plants without soil, using mineral nutrient solutions in a water solvent. Terrestrial plants may be grown with only their roots exposed to the mineral solution, or the … [Read more...] about Farming with phones and without soil
Agriculture sector acts to lure more investments
According to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan, the MARD will review 508 administrative procedures and propose simplifying or cutting out 287 out of these administrative procedures, or 56.5%.It will also review a total 345 business and investment conditions and propose that 118 of which be amended and cut out, equivalent to 34.2%.Eighteen out of 40 specialised inspection procedures will be reviewed, while quarantine and clearance time will be shortened from 24 hours to no more than four hours for goods transported by land or air and no more than 10 hours for those transported by sea.In 2017, the MARD actively implemented Resolution 35/NQ-CP on supporting and developing enterprises by 2020, and Resolution 19-2017/NQ-CP on the further implementation of key tasks and measures to improve the business environment and enhance the national competitiveness in 2017, with a vision to 2020, according to Tuan.It focused on connecting enterprises … [Read more...] about Agriculture sector acts to lure more investments
Social News 23/12
Vietnam’s air force marks US Christmas bombing of HanoiThe air force of Vietnam held a ceremony on December 21 to mark the 45th anniversary of the victory over the US Christmas bombing of Hanoi in 1972, known in Vietnamese as the Dien Bien Phu Victory in the air.The function is attended by Prime Minister Nguyen Xuan Phuc, Minister of Defence General Ngo Xuan Lich and Secretary of the Hanoi Party Committee Hoang Trung Hai.In a celebratory speech, Lt General Le Huy Vinh, commander of the air force, recalled the force’s resounding triumphs during the war against the US, notably the victory against US Operation Linebacker II in December of 1972.During the 12-day operation, Vietnamese soldiers and people fought heroically and shot down 34 B-52 aircraft and other strategic bombers, forcing the US to return to the negotiation table and sign the Paris agreement on ending the war and restoring peace in Vietnam.The victory provided a significant momentum for Vietnam to step up its … [Read more...] about Social News 23/12