Vietnamese airlines offer promotions at VITM
National flag carrier Vietnam Airlines and budget airline Jetstar Pacific will launch various promotional programmes at the Vietnam International Travel Mart (VITM) 2019, which will take place from March 27-30.
Vietnam Airlines on March 25 said it will present 4,000 promotional codes for visitors who purchase online tickets at the event.
The carrier is set to offer discounts of up to 50 percent for domestic and 30 percent for international flights to Australia, Asian and European nations.
Other promotions will be introduced at the event such as weekend sales, among others.
Meanwhile, Jetstar Pacific will launch 11,000 cheap tickets for domestic and international flights. The prices will start at 11,000 VND (about 0.5 USD), excluding taxes and fees.
The two airlines will also work with travel agencies to introduce tour packages with special prices as well as their products and services for visitors of the VITM.
During the event, Jetstar Pacific will launch a programme to reduce greenhouse gas (GHG) emissions, which encourages passengers to donate a sum ranging from 8,000 to 30,000 VND per ticket. The proceeds will be allocated to projects minimising the impacts of GHG emissions, protecting endangered animal habitats and supporting schools in developing countries.
More information can be found at www.vietnamairlines.com and www.jetstar.com.vn, the Facebook page of the carriers, ticket offices across the country and hotlines 1900 1100 and 1900 1550, respectively.
VITM 2019, under the theme of “Green Tourism”, looks to popularise ecological, community-based, and agricultural tourism products; as well as environmental protection and climate change adaptation initiatives.
In addition, chances and challenges of tourism businesses amid the Fourth Industrial Revolution will be a key topic at the event.
It will include more than 500 booths showcasing tourism products and destinations, bringing together travel companies from 25 countries and territories.
The VITM is estimated to attract 85,000 visitors this year. Last year, it received 80,000.
The event will take place at the International Exhibition Centre, 91 Tran Hung Dao Street.
Digital trade and opportunities for Vietnam discussed
Vietnam has been earning significant revenue from digital trade, which could be higher in the future, Director of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung said at a workshop in Hanoi on March 26.
According to a report on “The Data Revolution: How Vietnam can capture the digital trade opportunity at home and abroad” released by AlphaBeta, the economic value of digital trade-enabled benefits to the Vietnamese economy is estimated to be worth 81 trillion VND (3.5 billion USD) in 2017 but this could grow to 953 trillion VND (41 billion USD) by 2030.
Besides, digital exports brought home 97 trillion VND, which will increase to 652 trillion VND ahead of 2030, the report said.
Economists suggested Vietnam work to reduce limitations relating to foreign investment, competition policies, and cross-border data flow.
Konstantin Matthies, a representative from AlphaBeta, said the Vietnamese Government and policy makers should consider the importance of digital trade in building economy and trade policies.
Experts advised businesses to make use of opportunities from digital trade by increasing connectivity with overseas markets and domestic productivity.
Vietjet offers promotional tickets to Japan every Wednesday
Vietjet is offering promotional tickets priced from zero VND every Wednesday on its all routes between Vietnam and Japan.
The promotion is applied from now to April 24, 2019 to mark the carrier’s new route between Ho Chi Minh City and Tokyo (Narita). The travel period is from April 1 to December 31, 2019.
The Ho Chi Minh City (Vietnam) – Tokyo (Narita) route will operate daily return flights from July 12, 2019. Flying time is around six hours per leg. The flight departs from Ho Chi Minh City at 00:05 and arrives at Tokyo at 08:00. The return flight takes off from Tokyo at 09:00 and lands in Ho Chi Minh City at 13:05.
With a network comprising 39 domestic routes and 69 international routes, Vietjet currently operates around 400 flights daily, carrying more than 65 million passengers to date.
An Giang targets 5.5 trillion VND from tourism in 2019
Tra Su melaleuca forest in An Giang province
The tourism sector of the Mekong Delta province of An Giang aims to welcome 9.2 million tourists and earn 5.5 trillion VND (over 237.1 million USD) in 2019.
To realise this goal, the sector will focus on attracting investment for upgrading and developing infrastructure in key tourism sites, and promote development links with other regional localities such as Can Tho, Ca Mau, Kien Giang, Bac Lieu, Hau Giang and Soc Trang to create attractive products.
Attention will be paid to promoting the image of the locality and its tourism potential in and outside the country, while creating favorable conditions for enterprises in this field to invest in expanding and the forms of culture, resort and and eco-tourism.
An Giang is also calling for investment to developing large-scale modern entertainment centres and introducing incentive policies for tourism development to attract more investment in the field.
According to Vice Director of the provincial Department of Culture, Sports and Tourism Pham The Trieu, An Giang received about 3.2 million domestic and foreign visitors in the first quarter of this year, up 10.34 percent year-on-year.
The locality earned 1.85 trillion VND from tourism activities in the period, 23.33 percent higher than the same period last year.
At present, An Giang has 90 accommodation establishments for tourism and 21 travel agencies. The locality boasts 15 tourism sites, including one provincial-level tourism area and one national tourism site.
Last year, An Giang saw 8.5 million arrivals and raked in 4.8 trillion VND, up 16.44 percent and 29.73 percent year-on-year, respectively.
Vietnamese firms urged to swiftly capitalise on CPTPP
The tra fish processing factory of the Southern Fishery Industries Co. Ltd
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will bring more opportunities than challenges to businesses, so they should swiftly make use of this deal to promote export, heard a workshop in Ho Chi Minh City on March 26.
The CPTPP, which officially took effect in Vietnam on January 14, gathers 11 member states, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam that altogether make up 13.5 percent of the global GDP.
Nguyen Thi Thu Trang, Director of the WTO and integration centre at the Vietnam Chamber of Commerce and Industry (VCCI), said the CPTPP opens up chances for Vietnam to access new markets that it hasn’t signed bilateral trade agreements with like Canada, Mexico and Peru. It will also help the country seek new partners in the field of public procurement in traditional markets.
Competition in the global market is inevitable, even with or without the CPTPP, and this pressure affects all enterprises, not only Vietnamese ones.
However, competition with foreign firms will help Vietnamese manufacturers diversify material supply sources and production technology while reducing input costs. Food, beverage, textile-garment, footwear, plastics and transport vehicle industries are forecast to have major chances to promote production and exports.
Additionally, the CPTPP will also foster e-commerce and create more chances for Vietnamese firms to take part in distribution services, Trang said.
She added Vietnam and other members have complementary export structures while their targeted market segments are different, so their products do not directly compete with one another. On the other hand, the CPTPP enforcement also means the Government will further improve the business climate and provide more favourable conditions for trade, thus facilitating the development of enterprises.
A problem facing Vietnamese companies amid the CPTPP implementation is how to capitalise on opportunities, especially the capability to meet rules of origin to benefit from preferential treatment and overcome non-tariff barriers.
At the workshop, lawyer Vu Xuan Hung, deputy head of the arbitration affairs division at the VCCI branch in HCM City, said Vietnamese businesses’ capitalisation of free trade agreements remains modest.
Tariff reduction commitments under the CPTPP are very high. However, there are even more non-tariff barriers that are hard to satisfy than tariff ones, he said, noting that many countries have set up technical standards to hamper the import of certain commodities. If enterprises fail to meet these standards, they will be unable to export goods, let alone preferential tariff treatment under the agreement.
Hung added if businesses actively improve their products’ quality to meet other CPTPP members’ requirements, opportunities to expand markets are vast.
Participants in the event urged local firms have a good grasp of the CPTPP’s articles and devise suitable production strategies so as to overcome non-tariff barriers and promote exports right at present.
Can Tho to launch five new urban projects in 2019
A view of Can Tho city
The Mekong Delta city of Can Tho will kick-start the construction of five new urban areas this year.
The municipal People’s Committee has just approved the addition of these projects to the investment list of building new urban and residential areas in the city for the 2018-2020 period.
Three of the urban areas will be located in Cai Rang district, one of which is the Nam Can Tho new urban area, known as Riverine Can Tho City, which is designed to be a high-end residential area along with an office, trade, resort and entertainment complex.
Invested by the Nam Can Tho Development and Investment JSC, the project is worth over 2.6 trillion VND (112 million USD) and will cover 99.86 ha. It is scheduled to be put into operation in 2024.
Meanwhile, the Hai Dang urban area – invested in by the joint venture of Saigon Real Estate and Investment Management JSC, Hai Dang Real Estate Investment JSC, Hai Dang Investment Construction JSC, and Quoc Loc Phat JSC – will cover 54.1 ha with a total investment of nearly 4.4 trillion VND. It is expected to be put into use in 2025.
The Zone 1, Lot 6C urban area project will be built on 26.98 ha with a total investment of 955 billion VND by Hong Loan Real Estate Trading and Construction JSC and completed in 2023.
In Ninh Kieu district, the joint venture of Hai Phat Investment JSC, Civil Engineering Construction Corporation No.5, and Dai Dong A Investment JSC will invest 4.16 trillion VND in a new urban area in An Binh ward. The project is set to be put into operation in 2021.
In An Thoi ward, Binh Thuy district, the GD Land Ltd., Co. and CADICO JSC joint venture will be responsible for a new urban project worth 465 billion VND. The project will cover 30.04 ha and be put into operation in 2023.
Cashew prices forecast to continue falling
Cashew prices are sitting much lower than they were at the same time last year. (Photo: congthuong.vn)
Cashew prices are low at present, according to the Vietnam Cashew Association (Vinacas).
Over recent days, the price of fresh cashew nuts has stood at just 28,000-30,000 VND per kilo at farms in Binh Phuoc province and 30,000-32,000 VND for nuts delivered to factories. The price of dried cashews was about 36,000 VND per kilo.
In the same period last year, the price was 40,000-42,000 VND per kilo for fresh cashews and 50,000 VND per kilo for dried cashews.
According to traders, the prices are still going down and there is no sign of an imminent recovery.
Tran Huu Hau from Vinacas said prices have increased slightly from the record low in late February of 20,000-24,000 VND per kilo for fresh cashews because processing facilities temporarily stopped producing cashews during the Tet holidays.
Nguyen Van Tuan, the owner of a cashew farm in Ba Ria-Vung Tau province, said the price of cashews in his province is higher than in other areas due to their better quality and convenient location. However, the price of fresh cashews at the farm dropped to 29,500 VND per kilo from 32,000-33,000 VND at the beginning of last week.
Now that it is the harvest season, many farmers are worried they will face pressure from traders to reduce prices even further, he said.
According to the association, domestic cashew output is only about 400,000 tonnes while the annual demand of domestic enterprises is about 1.5 million tonnes. The cashew processing industry has depended on imported materials to meet demand.
Ho Ngoc Cam, Director of Phuong Minh Agro-Forestry Product Import and Export Co. Ltd, said enterprises have imported a small volume of raw cashews while prices of domestic cashews have dropped dramatically.
If factories import large quantities, the price is expected to reduce further on the domestic market, Cam said.
According to Cam, raw cashew prices in Africa are currently about 1,300-1,400 USD per tonne, 600-700 USD lower than the same period last year.
Global price reductions are due to oversupply, with many cashew-producing countries in the middle of their harvest seasons including Vietnam, Ivory Coast, Nigeria, Benin, Mozambique and Ghana, according to the Ministry of Industry and Trade’s Export Import Department.
The average export price of Vietnamese cashews in the first two months of the year was 8,197 USD per tonne, 20.1 percent lower than the same period last year, according to the General Department of Customs.
Vietnam exported 47,700 tonnes of cashews in the first two months of this year, earning 390.9 million USD. Exports increased by 4.2 percent in volume but reduced by 16.7 percent in value year on year.
The Export Import Department expected prices to recover in the long term. In the second quarter of 2019, global prices are likely to recover due to increased demand in China and some other countries.
The department also expects prices this year to be higher than in 2017 and 2018.
According to the International Nut and Dried Fruit Council, the demand for cashew nuts this year is expected to increase from April 2019 and be stable until the end of the year.
An Giang province to represent Vietnam at 16th China-ASEAN Expo
An overview of the China-ASEAN business and investment summit held within the 15th CAEXPO (Source:caexpo.org)
An Giang (VNA) – The Mekong Delta province of An Giang will represent Vietnam at the 16th China-ASEAN Expo (CAEXPO 16) to be held in Nanning, China’s Guang xi province, in September this year.
Vice Chairman of the provincial People’s Committee Le Van Nung had a working session on March 26 with a delegation of the Trade Promotion Agency under the Ministry of Industry and Trade on preparations for the national pavilion at the event.
The pavilion will take the theme of “An Giang – Vietnam’s rice granary”, introducing the development of the province towards becoming an economic, cultural and tourist centre of the Mekong Delta.
An Giang plans to hold business conferences and workshops in the framework of CAEXPO 16 in order to gain market information, seek partners, call for investment and promote the province’s brands.
According to deputy director of the Trade Promotion Agency Le Hoang Tai, the 16th CAEXPO will take place from September 20-23 with the attendance of many high-ranking officials of China and ASEAN countries. Firms from China and ASEAN will display their goods at hundreds of pavilions.
CAEXPO has become an important annual gathering for not only Chinese and ASEAN enterprises but also those from other regions.
The ASEAN (Association of Southeast Asian Nations) comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Lam Dong trade, investment, tourism opportunities introduced in RoK
Doan Van Viet, Chairman of the Lam Dong People’s Committee, addresses the conference
Hundreds of businesses in the Republic of Korea (RoK) participated in a conference in Seoul on March 26 to seek trade, investment, and tourism opportunities in Vietnam’s Central Highlands province of Lam Dong.
Addressing the event, Doan Van Viet, Chairman of the provincial People’s Committee, introduced the locality’s major characteristics and socio-economic development situation for the Korean firms.
He highlighted the province’s advantages in year-round cool weather conditions and convenient transport system with easy connections to key economic regions of Vietnam.
Viet said that Lam Dong has favourable conditions for socio-economic development, especially in high technology agriculture and tourism.
Da Lat city – Lam Dong’s cultural-political centre – has become a famous national tourism site and an ideal destination for foreign visitors, he noted.
He suggested that Korean businesses invest directly in projects in which the province is calling for investment, or partner with Vietnamese firms to expand projects already underway in Lam Dong.
The official held that businesses of both sides can collaborate in designing tours between the two countries and trading goods between the RoK and Lam Dong.
Viet pledged that the local administration will always accompany businesses in building a smooth, transparent, and friendly investment environment and sustainable ecology environment. Lam Dong is willing to support businesses in removing any obstacles facing them and creating optimal conditions for investors in the province, he stated.
Meanwhile, Vietnamese Ambassador to the RoK Nguyen Vu Tu said that the conference was held at a crucial time as many Korean businesses are highly interested in the Vietnamese market.
He expressed his belief that the event will help Korean investors explore the economic situation of Lam Dong and Vietnam in general.
According to the diplomat, the Vietnam-RoK partnership has grown in all fields. The two sides will mark 10 years of the Vietnam-RoK strategic cooperative partnership in 2019, he noted, adding that the sound political relationship and close people-to-people exchange are among factors ensuring the efficiency of economic activities between the two countries.
The Korean government is implementing its “New Southern Policy” with the aim of promoting cooperation with the Association of Southeast Asian Nations (ASEAN), in which Vietnam is among the prioritised partners, said the ambassador.
On the occasion, Lam Dong province and a number of its firms signed several memoranda of understanding with Korean partners, and introduced their major products to Korean enterprises.
WB, Binh Duong discuss infrastructure cooperation
At the working session
Country Director of the World Bank (WB) in Vietnam Ousmane Dione held a working session with authorities of the southern province of Binh Duong on March 26 to discuss cooperation in infrastructure development.
Dione spoke highly of Binh Duong’s economic achievements over the past few years, with economic growth at 14 percent and nearly 2.3 billion USD in state budget revenue in 2018.
The province has increased investment in social and technical infrastructure while adopting effective steps in high-quality education projects, contributing to attracting quality investment in the near future.
He lauded the province’s role in the WB-funded Di An wastewater treatment plant which, he said, was on schedule and effectively addressed environment pollution.
The WB pledges to fund other wastewater treatment projects in Binh Duong and wants to turn the bilateral infrastructure and human resources training partnership into a model for others, he said.
Chairman of the provincial People’s Committee Tran Thanh Liem thanked the WB for assisting Binh Duong in a number of projects, especially those regarding the environment, thus effectively helping to reduce pollution in the locality.
He expressed his wish that the bank would continue providing funding for Binh Duong to carry out new projects, especially those in household wastewater treatment.
Da Nang ready for collaborating with Canadian firms
A view of Rong (Dragon) Bridge in Da Nang
Da Nang has been ready in terms of both infrastructure system and human resources to host Canadian investors, stated an official of the central city.
Addressing an investment promotion seminar with the participation of Canadian investors in the city on March 26, Vice Chairman of the municipal People’s Committee Ho Ky Minh said that in 2018, Da Nang continued building its hi-tech park and completed the first phase of an IT park, while calling for investment in the software parks No. 2 and 3.
The city has designed preferential policies for investors, said Minh, revealing that investment attraction is the city’s focus in 2019.
Along with building a dynamic city that is friendly to investors, the city will speed up the building of e-government and smart city, while expanding partnership with foreign localities, he said.
Minh called for cooperation of Canadian agencies and businesses, especially in areas of mutual interest such as education and training, sustainable investment, smart city and climate change response.
According to the official, as of March 3, Da Nang was home to 704 foreign-invested projects with total investment of 3.55 billion USD. The city’s export revenues were estimated at 1.6 billion USD in 2018. Last year, Da Nang welcomed 7.66 million visitors, including 2.87 million foreigners.
Da Nang has been among leading localities in provincial competitiveness index (PAPI) and the index of readiness for ICT application for many years, he added.
At the seminar, Canadian investors lauded the competitive edges of Da Nang and incentives that the city offers to investors. They expressed their interest in collaborating with the city in construction, hi-tech agriculture, education and tourism.
Bryon Wilfert, Chairman of Canada Trade Link, said that Da Nang is a dynamically developing city with various preferential policies for investors. According to him, Canadian firms see good prospect for investment in areas prioritized by the city, including hi-tech agriculture, food processing, education, and IT.
Giaohangtietkiem admits to allow shippers throw around goods
Giaohangtietkiem (GHTK) officially admitted its fault in letting its shippers throw customers’ goods when classifying items during the Lunar New Year 2019 rush.
Dang Minh Nam, head of GHTK’s Legal Department, said that the company received feedback on broken goods from customer N.G.N. and resolved the case. Specifically, on March 2, the delivery company compensated 100 per cent of the good’s valuation.
In addition, Nam also confirmed that GHTK apologised and has taken responsibility for all cases related to broken goods due to the shippers’ faults.
The case came to light after customer N.G.N.’s recording showed the company’s shippers throwing goods around in early March. The clip went viral across social networks, drawing an avalanche of outrage from commenters.
According to Nam, the clip was recorded during the Lunar New Year 2019, when due to the huge amount of goods ordered for the Tet occasion, shippers had to do extra work to classify items.
“After the case, we have tightened control in the firm, aiming to ensure that each department does its duty without fault,” Nam said. “GHTK will keep improving working procedures. In the future, we may apply modern technologies to scan and sort items.”
According to GHTK’s representative, the company has taken strict measures to sanction the staff appearing in the clip, but he refused to go into details.
Da Nang, Sun Group strive to turn Ba Na Hills into world destination
Golden Bridge built by Sun Group in Da Nang city.
The People’s Committee of Da Nang and Sun Group are striving to build the Sun World Ba Na Hills into a global destination.
The plan was revealed at a ceremony held in the central coastal city of Da Nang on March 25 to mark the 10th anniversary of the opening of Sun Group’s first cable car system, Ba Na – Suoi Mo.
Ba Na belongs to Truong Son mountain range in Hoa Ninh commune, Hoa Vang district, 25km southwest of Da Nang. Its tourism centre is located at the top of Chua Mountain, 1,489m above sea level.
The Ba Na – Suoi Mo cable car system was put into operation on March 25, 2009. It won two Guinness World Records for being the longest one-line cable car service in the world at 5,042.62m, and having the highest difference in height between the departure and destination points at 1,291.81m.
With 94 cabins, the system can serve 1,500 visitors per hour.
The Ba Na Hills tourism site is known as an outlandish fairyland with a diverse floral system.
The French village with ancient castles is how some imagine a miniature Paris looks.
The complex includes 10 flower gardens, a large amusement park and Debay Ancient Wine Cellar, a unique architectural work dug by the French deep into Ba Na Mountain.
The resort’s hotel, Mercure Danang French Village Ba Na Hills, consists of 20 high-class restaurants and hosts daily carnival shows.
The resort is perhaps best known for the Cau Vang (Golden Bridge), which opened in June 2018 and soon after it went viral, with images of the large hand sculpture holding the bridge spreading across the world.
Da Nang hopes to welcome 8.19 million visitors in 2019, including 3.19 million foreigners, a year-on-year rise of 6.9 percent and 11 percent, respectively.
The local tourism sector aims to gross 27.4 trillion VND (1.18 billion USD) in revenues, up 13.9 percent against the previous year.
In 2018, the city served 7.66 million holidaymakers, a year-on-year rise of 15.5 percent, including 2.87 million international tourists, a yearly increase of 23.3 percent. Total revenue collected from tourism activities was estimated at 24 trillion VND, an annual increase of 23.3 percent.
Shrimp businesses advised to increase competitiveness
Processing shrimp for exports
Shrimp enterprises should seek ways to increase competitiveness to realise the sector’s export target of 4.2 billion USD in 2019, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Businesses need to increase the quality of their products to international standards and use communication strategies to encourage customers in the Western and Eastern Europe to buy shrimp certified by Aquaculture Stewardship Council (ASC).
Processing and export firms should make use of free trade agreements (FTAs) to reach the projected export turnover of 1 billion USD in Europe.
The combined export turnover in the US, Japan, the Republic of Korea and China is expected to hit 3 billion USD.
Besides choosy markets, businesses see China as a large consumer of Vietnamese shrimp. However, to export to China, they must meet the higher quality criteria set by the neighbouring country.
Deep processing is considered an effective solution for shrimp exporters given fiercer competition from India and Ecuador.
Vietnam is home to nearly 100 shrimp processing plants with an average annual capacity of about 500,000 – 700,000 tonnes.
Last year, the shrimp sector recorded a year-on-year decline of 7.8 percent to 3.6 billion USD in export value.
TMS Group looks for partners
The design of TMS Hotel Quy Nhon Beach project. — Photo courtesy of TMS Group
TMS Group will organise a series of investment promotion events in Japan at the beginning of April to look for potential partners in the fields of real estate, health and high-tech agriculture.
Specifically, TMS Group will hold investment promotion conferences in Tokyo, Osaka and Fukuoka on April 8, 9 and 10, respectively.
Within the framework of the event, TMS Group will provide guests with useful information about the investment environment as well as new investment trends in the fields of real estate, health, education and agriculture in Viet Nam.
In addition, TMS will introduce some typical real estate projects that the group is implementing in Viet Nam such as TMS World Binh Thuan in Binh Thuan Province, TMS World Quang Binh in Quang Binh province, TMS World Thai Nguyen in Thai Nguyen Province, TMS Metropolis Bac Giang in Bac Giang Province or TMS Green Diamond in Vinh Phuc Province.
Hapro sells Chu Dau shares to BRG Group
Chu Dau pottery in Viet Nam.
Ha Noi Trade Corporation (Hapro) is planning to transfer 420,000 shares in Chu Dau Ceramic JSC to BRG Group JSC.
Chu Dau JSC is one of ten affiliates of Hapro. As of 2018, Hapro owned 51 per cent of Chu Dau JSC. After the transfer, the corporation will hold 30 per cent.
The shares, equivalent to 21 per cent of the company, will be sold for VND13,500 each, or VND5.67 billion (US$243,800) of the total. The transfer will be conducted within three months.
Chu Dau pottery dates back to the 13th-14th centuries, and flourished in the 15th-16th centuries. In the seventeenth century, Chu Dau pottery was lost due to a feudal war between the Trinh and Mac.
In 2001, Hapro decided to establish Chu Dau Ceramic Enterprise, which is now Chu Dau Ceramic JSC, with a charter capital of VND20 billion to restore this Vietnamese ceramic line.
Hapro is a member of BRG Group. BRG acquired Hapro through Motor N.A Vietnam Co., Ltd. with 65 per cent of charter capital. Two other major shareholders include An Phu Trading and Investment and Import Export Company Limited (17.7 per cent) and Thanh Cong Automotive Trading Company Limited (15.31 per cent).
Nguyen Thi Nga, chairman of BRG Group, is also currently the chairman of Hapro. BRG Group has invested in many high-end hotel, golf and real estate projects.
FLC proposes new airline catering service processing area
A meal on a Bamboo Airways flight. — Photo bambooairways.vn
FLC Group has submitted a proposal to the Ministry of Transport for a new airline catering service processing area at Tan Son Nhat International Airport.
FLC said the ministry had already issued a decision to approve detailed planning for the airport by 2020 with an orientation to 2030.
According to the plan, the airport would have an airline catering service processing area together with a car parking area and an office building.
Bamboo Airways, a member company of FLC Group, launched its first flight on January 16, becoming the fifth airline in Viet Nam.
The airline now has 10 aircraft operating on 14 routes with 40 flights a day. It plans to expand its fleet to 40 this year with 37 routes.
The number of customers travelling by air has been increasing, pushing the demand for airline catering services.
“The airline catering service processing area would provide more choices to airlines which want to expand and diversify catering services,” the group said.
In Viet Nam, Noi Bai Catering Services (NCS) in the north and Viet Nam Aviation Catering Services (VACS) in the south are the only firms offering the service.
NCS’s financial report last year showed that it earned billions of dong a day by providing catering services to airlines.
MoF urges PVN to accelerate divestment in sensitive sectors
PVN has been asked to accelerate its divestment from enterprises which operate in sensitive sectors, such as securities and investment funds. — Photo pvn.vn
The Ministry of Finance (MoF) has asked the Vietnam Oil and Gas Group (PVN) to accelerate its divestment in enterprises operating in sensitive sectors.
This request was part of an MoF document in response to PVN’s petition on restructuring, equitisation and divestment in enterprises.
According to the MoF, the Prime Minister issued document No 1182/TTg-DMDN approving the list of State-invested enterprises undergoing divestment and equitisation between 2017 and 2020.
Therefore, the MoF requests that PVN implement measures under the direction of the PM, with a focus on accelerating divestment in enterprises within sensitive sectors (real estate, investment funds, securities and insurance) such as PetroVietnam Trade Union Finance Investment Joint Stock Company (PVFI), Green Indochina Development JSC and PetroVietnam Insurance Company.
Regarding the timeline for the equitisation process, the MoF stated that Decree No 126/2017/ND-CP dated November 16, 2017 of the Government specified regulations on selecting strategic investors and the organisation of auctions among strategic investors.
The MoF’s document emphasised that the selection of strategic investors should be done at the time of the equitisation plan to ensure the selection of suitable investors, accompanying the development of enterprises after equitisation.
Central city and Korea push for more investment
Representatives of Da Nang’s Investment Promotion Agency and Korean Nemo Partners sign a Memorandum of Understanding.
Da Nang’s investment promotion agency (IPA) and Korean Nemo Partners Trading Management Service company on March 25 inked a Memorandum of Understanding (MoU) on calling for more investment from Korea.
Following the MoU, Nemo Partners, in co-operation with IPA, will host a series of conferences, promotions, dialogues and business matching events between Vietnamese and Korean businesses as well as introducing potential investment opportunities of Da Nang in Korea.
Lee Sung-woo, CEO of Nemo Partners, said the company had launched liaisons in the US, China, Myanmar, Libya, UAE, Myanmar, Cambodia and Viet Nam.
Lee said Nemo and IPA plans to host a business matching day for start-up businesses in Korea to help them find partners in Da Nang in the summer of 2019.
“We have offered consultancy for Korean companies investing abroad, and Da Nang will be a popular destinations for Korean investors in the coming years,” Lee said.
“A Korean software firm, Enjoy Works, has connected with a local company in Da Nang to develop IT projects in central Viet Nam,” he said.
Lee added that an IT company, Autech Otis from Korea, would introduce a smart parking project in Da Nang at a business matching event this May.
Korea is the fifth largest foreign investor in Da Nang with total investment of $310 million.
Hai Phong needs VND3.5 trillion to develop logistics by 2020
A view of Hai Phong Port. Hai Phong would need more than VND3.5 trillion (US$147 million) to invest in developing logistics services in the next two years. — Photo haiphongport.com.vn
Hai Phong needs more than VND3.5 trillion (US$147 million) to invest in developing logistics services in the northern port city over the next two years.
According to the logistics services system development planning to 2025 recently passed by the municipal People’s Committee, the city plans to attract private investment in developing logistics services, including from foreign investors, adding that incentive policies would be offered to create favourable conditions for investors.
Of the sum needed for the 2018-20 period, only 15 per cent would come from the State budget, which would be spent in land clearance, providing training and developing human resources. The rest was expected to be raised from the private sector.
The sum for the 2021-25 period was VND9 trillion and another VND4.55 trillion was needed for the 2026-30 period. Funding from the State budget will account for 18 per cent and 20 per cent of these figures, respectively.
The city encouraged investment in logistics infrastructure, transportation and the application of technology in facilitating logistics.
Hai Phong plans to build a modern logistics system to make the northern port city a national logistics hub with international-level competitiveness.
The city targets to reach a logistics services growth rate of around 25-30 per cent per year and the logistics industry would contribute up to 20 per cent of the city’s gross regional domestic product (GRDP) by 2020.
By 2030, the logistics industry was expected to grow at around 30-35 per cent per year and contribute up to 30 per cent of the city’s GRDP.
The percentage of outsourcing logistics services was set to increase from 40 per cent in 2020 to 65 per cent in 2030.
Focus would be placed on developing third-party logistics services first (outsourcing the organisation of logistics to third parties), then gradually develop a fourth-party logistics model (outsourcing the organisation and management of logistics) then fifth-party logistics model (focusing on utilising the most appropriate technologies).
The city would build three major cargo transportation corridors, including Hai Phong – Ha Noi, Hai Phong – Ha Long – Mong Cai and Hai Phong – Thai Binh – Nam Dinh – Ninh Binh.
Six logistics centres will be built by 2025 with a total capacity of handling 90.65 million tones of cargo per year which would increase to 104.35 million tones cargo by 2030, including Lac Huyen, VSIP, Trang Due, Nam Dinh Vu, Tien Lang and one at Cat Bi Airport.
Diversifying logistics services was critical to promoting the development of the logistics industry in the northern port city, the local authorities said, adding that the city would focus on developing services which were directly connected with the port and airport system.
Hai Phong added that enhancing international cooperation was also important to the development of logistics services.
According to Chairman of Hai Phong People’s Committee Nguyen Van Tung, Hai Phong was the gateway of the northern region’s seaway which handled the largest volume of cargo in the northern region. It ranked second by cargo volume passing through Viet Nam.
In 2018, Hai Phong’s port system handled more than 24 million tones of cargo.
Hai Phong would be selective in attracting foreign direct investment (FDI) with a focus on promoting high-tech application, enhancing efficiency of resources and protecting the environment, Tung said.
The city targeted to attract investments in high technology, part-supplying industry, renewable energy, infrastructure development and agriculture projects.
Energy-consuming and polluting projects would not be welcomed, the city stressed.
Statistics showed that the city so far attracted 629 FDI projects with a total registered capital of US$17 billion.
TMS Group looks for Japanese partners
The design of TMS Hotel Quy Nhon Beach project (Photo courtesy of TMS Group)
TMS Group will organise a series of investment promotion events in Japan at the beginning of April to look for potential partners in the fields of real estate, health and high-tech agriculture.
Specifically, TMS Group will hold investment promotion conferences in Tokyo, Osaka and Fukuoka on April 8, 9 and 10, respectively.
Within the framework of the event, TMS Group will provide guests with useful information about the investment environment as well as new investment trends in the fields of real estate, health, education and agriculture in Vietnam.
In addition, TMS will introduce some typical real estate projects that the group is implementing in Vietnam such as TMS World Binh Thuan in Binh Thuan province, TMS World Quang Binh in Quang Binh province, TMS World Thai Nguyen in Thai Nguyen province, TMS Metropolis Bac Giang in Bac Giang province or TMS Green Diamond in Vinh Phuc province.
These are real estate projects with prime locations of land with great potential for tourism, attracting the attention of many domestic and international corporations.
Nguyen Xuan Phuong, CEO of TMS Homes, a member of TMS Group, said through these upcoming conferences, TMS Group hoped to find Japanese partners who can cooperate in deploying potential projects in key areas that the group will focus on investing in the future. The forms of investment are various, from capital contribution to joint ventures to implement projects or buy and sell, transfer projects.
Established in 2004, TMS Group started with supplying human resources, mainly for Japanese partners. Currently, TMS Group is a multidisciplinary economic group with a number of subsidiaries and representative offices in Vietnam and in some countries in the region such as Australia and Japan.