Thua Thien-Hue to revoke project licenses

The Thua Thien-Hue Industrial Park Management Board, in a review of suspended projects, has asked provincial authorities for permission to revoke the licenses of 13 projects with total registered capital of VND653 billion (US$30.8 billion). Companies with big projects to be revoked include Tai Sun Viet Nam Co., Thua Thien Hue Ceramic Tiles and Minerals Co, and Tsunoda Viet Nam Co. The province's committee also plans to revoke the licenses of 20 projects. Six of the projects are located in the Chan May -Lang Co economic zone, four are in industrial parks and the rest are in other areas of the province. … [Read more...]

Vietnam retailers revving up their competitive edge

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(VOV) - In a move certain to unleash fierce competition in the nation's retail market, Vietnam will fully open it to foreign retailers as of January 2015, in line with World Trade Organisation (WTO) commitments. When the gloves come off, tens of thousands of goods from ASEAN member countries will be duty free, which is certain to lead to intense price competition as competitors jockey to get the lion's share of the country's 90 million strong consumer market. However, in the lead up to January next year, foreign retailers seem to be revving their engines preparing for the race while domestic enterprises seem to be idling, downsizing and cutting back. … [Read more...]

Building Confidence in Vietnam Brands

By the middle of 2014, the "Buy Vietnamese" Campaign - a movement that encourages Vietnamese people to give priority to made-in-Vietnam products on their shopping list - has been in place for five years, with positive results. Consumers are increasing their appreciation for Vietnamese goods. According to surveys, 71 percent of consumers have confidence in high-quality Vietnamese goods. Domestic goods still account for a large share, some 80-90 percent, in supermarkets. According to recent surveys by the Trade Unions of the Ministry of Industry and Trade, since the campaign was launched, the localisation rate of inputs, resources and equipment and machinery increased an average of 25 percent. In many localities, 80 percent of consumers favour domestic garments and footwear, while over 58 percent are keen on fruits and vegetables. In more than 9,000 price stabilisation points, nearly 90 percent of goods are domestically made. … [Read more...]

Foreign investors dominate retail

HCM CITY (VNS) — Vietnamese retailers risk losing the domestic market, which will soon be dominated by foreign ones, the Lao dong (The Labour) newspaper reported on Wednesday. Currently, Viet Nam has about 700 supermarkets and trade centres, 40 per cent of which are owned by foreign retailers. Officials at the Ministry of Industry and Trade, say that the domestic commodity market will see a growth rate of 14 per cent on average this year and next. Looking at projections for 2015, total retail sales through modern distribution channels will have risen to 40 per cent, while traditional channels will retain the majority, with 60 per cent. Insiders say Viet Nam is a growing potential retail market with a population of 90 million - as the average income per capita of Vietnamese people rises, so does retail demand. New additions to the Vietnamese retail market from overseas, such as Lotte Mart, Aeon, and Parkson, illustrate the increasing appeal of the market. Korea's leading retail … [Read more...]

Obstacles block formation of supermarket joint venture

Hapro Mart is popular in Ha Noi. — File Photo

HA NOI (VNS) — Domestic retailers have failed to forge an alliance to compete with foreign rivals, experts have said. Four large domestic retailers - Satra, Hapro, Phu Thai and Sai Gon Co-op - planned to build a large retail group, VDA, with a strong trademark that could compete with foreign trademarks and would be the driving force in the local retail industry. However, the plan fell through for many reasons. Pham Dinh Doan, Phu Thai Group chairman, told Thoi bao Kinh Doanh newspaper that the greatest challenge had been acquiring land and infrastructure. Establishing the alliance required support from the government. In addition, the state should provide support for logistics services to the group because these services are poor in the domestic market, stated Dinh Thi My Loan, chairwoman of the Association of Viet Nam Retailers. Therefore, the group has planned to build a logistics system to complete the supply chain in the domestic retail market, but the group has faced … [Read more...]

Consumers opt for local goods

People shop at Hapro Market in Ha Noi's Hai Ba Trung District. A campaign launched three years ago to encourage Vietnamese consumers to purchase locally-made products is showing signs of progress. — VNA/VNS Photo Quang Quyet

HA NOI (Biz Hub)— A campaign launched three years ago to encourage Vietnamese consumers to purchase locally made products is showing signs of success, according to the Ministry of Industry and Trade. Up to 59 per cent of consumers have prioritised using Vietnamese goods, while 38 per cent have advised their families and friends to choose home made products and 36 per cent have stopped buying or have bought fewer imported goods, having replaced them with local goods, said Le Viet Nga, deputy director of the ministry's Department of the Domestic Market. According to the ministry's statistics, the number of consumers who believe the quality of local products has improved has increased to 77 per cent compared with just 23 per cent before the campaign was launched. After running the campaign for three years, locally made products accounted for 80-90 per cent of goods on shelves in supermarkets such as Big C (90 per cent), Saigon Co-op and Vinatex Mart (nearly 95 per cent). In order to … [Read more...]

Hanoi encourages use of environment friendly bags

Shopkeepers in Dong Xuan market mobilized to use paper bags (Photo: VNA)(CPV) - In order to communicate to all people the harmful effects of plastic bags on the environment, thereby raising awareness of the units, organizations and individuals of environmental protection, Hanoi directs the departments, sectors, districts and related agencies to promote the implementation of a program restricting the use of plastic bags, for the sake of the environment, and replacing them with environment friendly bags in daily life. Under the plan, from now until the end of the year, Hanoi will focus on directly communicating to pupils of primary schools and students of universities at six locations of Nam Thanh Cong primary school, Hoang Dieu primary school, Dich Vong A primary school, Foreign Trade University, National Economics University and University of Transport and Communications. At the locations, pupils and students will be introduced to and offered environment friendly bags which can … [Read more...]

BUSINESS IN BRIEF 22/6

ADB-funded project brings power to Lai Chau province Households in 31 mountainous communes in northern Lai Chau province on June 19 gained access to electricity as a project to expand and improve the province's rural power grids started generation. The generation is part of an Asian Development Bank (ADB)-funded programme to develop renewable energy, expand and improve power grids in remote rural areas. The two-phase programme has a total investment of over 948 billion VND (45 million USD), including 30 million USD funded by ADB. Its first phase is expected to complete later this month, with 5,758 households in Lai Chau province and 7,944 others in Dien Bien province gaining access to electricity. Once becoming fully operational by the end of 2014, the programme will provide electricity to 14,487 households in 48 communes in eight districts of Dien Bien province and 16,207 households in 53 communes in Lai Chau province's six district, including Than Uyen, Tan Uyen, Phong Tho, Tam … [Read more...]

“Buy Vietnamese Goods” Campaign receives great response

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(VEN) - Vietnamese goods have accounted for the majority of items on sale in the domestic market thanks to improved consumer awareness and changes in Vietnamese consumer tastes, plus greater business awareness of the need to improve product quality while reducing prices, according to reseach made during the three-year "Buy Vietnamese Goods" Campaign. On the occasion of the Year of the Snake, Vietnam Economic News' Bao Ngoc interviewed Deputy Minister of Industry and Trade Ho Thi Kim Thoa, member of the Central Steering Committee for the campaign about these remarkable results. Over the past three years, Vietnamese consumers have generally appreciated Vietnamese goods, with the percentage of consumers saying they "like" textile goods and footwear accounting for 80 percent, and food, and fruits and vegetables more than 58 percent. According to a report delived at the preliminary conference on three-year implementation of the campaign organized by the Central Steering Committee on … [Read more...]

BUSINESS IN BRIEF 2/5

New corrections weaken market uptrend After the release of positive data related to the consumer price index and trade deficit, shares rebounded on both national stock exchanges last week. "However, the economy does not seem to be brighter as the ease in the index was mainly due to spending reduction, decreasing industrial production and more inventory," commented FPT Securities Co analyst Le Thi Bich Hang. On the HCM City Stock Exchange, the VN-Index closed the month of April at 473.77 points, up 1.85 per cent over the previous week. Daily market value on the bourse averaged VND1.34 trillion (US$63.8 million), or 67 per cent of the previous week's figure. Meanwhile, on the Ha Noi Stock Exchange, the average value of trades in a session totalled VND734.7 billion ($34.98 million), declining 26.5 per cent compared to the previous Friday's close. The HNX-Index added 2.6 per cent to 79.86 points. Speculative cash flow was fairly strong last week, said Hang, focusing on penny … [Read more...]

HCM City’s inflation slows in October

A woman checks the products at a Hapro Mart store.

HCM City's consumer price index (CPI) this month increased by 0.18 percent over last month, according to the municipal Statistics Office. The increase was lower that the CPI rise of 0.45 percent for October 2010, the office said. This contributed to a rise of 14.69 percent from the beginning of this year and 18.55 percent for the same period of last year. In the last two months, there has been a big price hike in the education sector, up 2.16 percent because school fees rose between 0.42 percent and 7.13 percent depending on the grade. This was followed by medicine and health services, up 1.11 percent; household appliances, up 1.1 percent; and catering services, up 0.06 percent. But prices for houses, electricity, tap water, fuel and building materials declined 0.8 percent. Transport also fell 0.27 percent, 0.4 percent for post and telecom services and 0.3 percent for other goods and services. To help curb inflation, Ho Chi Minh City's authorities require enterprises to supply … [Read more...]

Foreign distributors cannot “bully” domestic retailers

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VietNamNet Bridge - Contrary to the predictions given before, when Vietnam began joining WTO that domestic distributors would be "swallowed" by foreign groups, Vietnamese enterprises have been growing and becoming more and more competitive. The prediction that a series of big distribution groups would land in Vietnam cannot raise any worries any more. Some foreign distributors are really eyeing Vietnam, but most of them are the Asian names, and not big. The more worrying thing for domestic retailers is the rapid expansion of existing foreign distributors, who have been successful in Vietnam. … [Read more...]

Building Trade Centre, Supermarket System in Hanoi: In Need of Stronger Drives

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Markets & Prices Last updated: Friday, January 25, 2013 Building Trade Centre, Supermarket System in Hanoi: In Need of Stronger Drives Posted: Thursday, June 16, 2011 In 2010, the total turnover of goods and service revenues in Hanoi reached VND885 trillion, accounting for 80 percent of retail sales in the north of Vietnam. This result was significantly contributed by trade centres and supermarkets in the capital city. Big names like Vincom, Intimex, Hapro Mart and Metro have become gradually familiar to consumers and created a new shopping style and trend for the citizens. However, the development of trade centre and supermarket system in the city still exposes numerous weaknesses like limited presence, small area and inconsistent quality. To deal with such limitations, Hanoi will build an additional 350 supermarkets and trade centres from now till 2020 - a five-time increase from now. This is a challenging target for Vietnam and it requires consistent and effective policies … [Read more...]

Local confectionery goods a hit for Tet

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Consumers are turning their back on generic imports instead choosing more expensive local goods as Tet approaches. Prices of confectionery products increase by 30% At present, Vietnamese-branded confectionary products account for 90% at big supermarkets in Hanoi like BigC, Fivi Mart and Hapro Mart. Prices of these products have increased by 30% against last year. Mrs. Ha from Dich Vong Ward, Cau Giay District, said, "Currently imitation products are flooding the market and it is not easy to distinguish them with true products, therefore, I think that spending more to buy good products, particularly Vietnam's high-quality products, is safer for our health." Mrs. Hoa, owner of a shop on Son Tay Street, shared that the limited supply has pushed the confectionery prices up. In addition, wholesalers did not build up reserves of the products this year due to rising costs. Also, fees for labourers and transport are higher than previous years. Jam products this year mostly have … [Read more...]

Campaign to cut plastic bags use

Sunday without Plastic Bags programme aiming to reduce the use of plastic bags (for illustration only. Photo: etieudung)

A programme aiming to reduce the use of plastic bags has been launched by the Hanoi Department of Environment and Natural Resources. The plan will be deployed widely throughout the capital, which will include all 10 districts, 18 suburban districts and one town. The programme, Sunday without Plastic Bags, will kick off next August 1 at Ho Tay Waterpark, Hanoi. Leaders from the State, representatives from enterprises and foreign organisations, volunteers and the public will join in the campaign condoning the use of plastic bags. Other activities will be organised including a walk around West Lake and a bicycle ride for the environment. On the occasion, environmentally-friendly bags will be distributed for free at grocery stores, outdoor markets and department stores in the city. People can also receive the utility bags if they exchange their waste paper at the organising board's outlets. Students will volunteer to ride bicycles on August 1 during the month of August to … [Read more...]

Hanoi to cut plastic bags use

A programme aiming to reduce the use of plastic bags has been launched by the Hanoi Department of Environment and Natural Resources. The plan will be deployed widely throughout the capital, which will include all 10 districts, 18 suburban districts and one town. The programme, Sunday without Plastic Bags, will kick off next August 1 at Ho Tay Waterpark, Hanoi. Leaders from the State, representatives from enterprises and foreign organisations, volunteers and the public will join in the campaign condoning the use of plastic bags. Other activities will be organised including a walk around West Lake and a bicycle ride for the environment. On the occasion, environmentally-friendly bags will be distributed for free at grocery stores, outdoor markets and department stores in the city. People can also receive the utility bags if they exchange their waste paper at the organising board's outlets. Students will volunteer to ride bicycles on August 1 during the month of August to … [Read more...]

High prices linger following Tet

The Lunar New Year (Tet) festival is ten days old but the 'imprint' of Tet remains in many products, particularly meat, vegetables and bulbs. Of course, their prices are not as high as before Tet but are still much higher than usual. People are wondering whether they will eventually return to normal or if a new level of prices will be established. Surveys by VOV reporters in Hanoi indicate that the prices of many types of meat, fish, shrimp, vegetables and bulbs doubled or tripled for several days after Tet. But in recent days, the fever has cooled on a number of commodities. In Hoe Nhai market, water dropwort sells at VND7,000 per bundle, a decrease of VND8,000 from the fifth day of the Lunar New Year; kohlrabi, VND4,000 per bulb, down by VND15,000 from the fourth day of Tet; and scallion, VND15,000 per tael, a decrease of VND5,000 per tael. Nguyen Thu Lan, a local grocer, said the scarcity of vegetables came from the fact that farmers will only grow vegetables again after the … [Read more...]

Vietnamese Retail Market Moving at Slow Pace

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The phrases "the most attractive market in the world" and "the potential market" have become popular in the Vietnamese retail market.. However, the market has not yet seen remarkable changes after January 1 this year when Vietnam officially opened the market. Is the retail market going down and unattractive? Absence of new investors Unlike the forecast about attraction of big investors, the Vietnamese retail market has received a small number of investors with no huge projects since early this year. According to the Ministry of Industry and Trade (MoIT), it has received most of foreign investors' projects to build small wholly foreign-owned supermarkets, retail and wholesale centres, but no the chain projects. Vice Head of the Information & Planning Department under the MoIT, Hoang Thi Tuyet Hoa said, no new retailers have asked for business registration since Vietnam opened its market two years ago. Despite being licensed to open 15 supermarkets and trade centres in … [Read more...]