VIETNAM BUSINESS NEWS HEADLINES OCTOBER 13

Prices of Grade A offices in the capital have been forecast to rise over the next three years by seven percent annually due to low supply.

Do Thu Hang, Director of the Research and Consultancy Department at Savills, Hanoi, said Grade A offices accounted for 28 percent of the total supply of 1.8 million sq.m2 of office rentals in the city.

Currently, Grade A office rental costs are 31 USD per sq.m per month on average. Some offices in the inner city cost 35 USD.

“It is the highest price in seven years,” Hang said, adding that in the high-end office catalogue, Hanoi ranked fourth in terms of capacity and third in terms of rental prices in the country.

While high-end office space attracts 60 percent of foreign tenants thanks to strong developments in FDI and M&As in Vietnam, there are not many options left now. In the inner city, due to limited space for building due to local regulations, many offices are old and lacking modern utilities.

Offices in the Old Quarter were unlikely to be upgraded in the next 10 year, according to Savills, so in Hoan Kiem and Ba Dinh districts, there would continue to be a shortage, so tenants are being forced to move into new areas in the west of Hanoi.

At the same time, Grade B offices with the highest capacity and occupation rates of 94-95 percent have remained stable with rental price of 18 USD per sq.m per month, an increase of 1 percent per year.

Savills Vietnam stated that co-working spaces were becoming increasingly popular thanks to their flexibility in terms and hiring services. Co-working spaces have attracted a lot of start-up tenants and would draw others looking for offices with a variety of rental solutions.

In Hanoi, co-working spaces are increasingly popular with many different brands such as Regus, Up, Toong, Cogo, Tiktak, CEO Suite, Dreamplex and WeWork.

Over the past twelve months, Up has opened four new locations with a total size of about 15,500 sq.m; Toong has opened three new locations covering about 7,000 sq.m and Cogo has also opened five new facilities with a total area of about 11,500 sq.m.

According to Savills, innovation in real estate had continued after realty technology (Proptech) started to attract up to 1 billion USD per month globally./.

Vero officially in Vietnam

Regional PR and creative agency Vero recently announced the launch of a wholly owned offering in Vietnam.

The Vero office in the country includes a team of PR and digital-focused account managers, planners, creatives, and media and influencer relations specialists who share a goal of building impactful stories and delivering integrated campaigns for local and international brands.

Vero is an ASEAN based PR, social, digital and creative agency focused on serving clients in the largest, fastest growing ASEAN markets. In addition to Vietnam, it has offices in Thailand, Myanmar, and Indonesia and has operated through partnerships in Vietnam for the last decade.

“In Vietnam, earned attention remains at the core of what we do, and we are seeking to generate impact for our clients through great creative and great digital capabilities,” said Mr. Raphael Lachkar, Vero’s Director in Vietnam. “We are pleased to announce a wide array of digital services in addition to the existing public and media relations offering we have in Vietnam.”

The agency has already started supporting historical clients and new partners. Among other projects in 2019, Vero supported the launch and the first event in Vietnam of Asian martial art property ONE Championship, has been powering a regional PR campaign for Central Group Vietnam, and has partnered with Daikin to launch a full scale integrated corporate communication outreach.

Vero has also kick-started several research projects in Vietnam to gain insights and better serve clients. One research project focuses on the impact influencer marketing makes upon millennials in Hanoi and Ho Chi Minh City.

The study reveals that nearly 60 per cent of millennials are more likely to trust a brand after seeing an influencer post about it. The outreach team in Vietnam can match influencers, both macro and micro, to suit brand identities and key messaging and to reach a wider yet niche audience.

“The importance of Vietnam as a market in the ASEAN region cannot be underestimated,” said Mr. Brian Griffin, Managing Director of Vero. “There are a lot of really talented people in Vietnam and market forces are all headed in the right direction. Our goal is to provide clients with the most comprehensive marketing services offer in the large, fast-growing ASEAN region markets. And Vietnam is a very important part of this.”

Vietnam’s economy is expected to grow at more than 6.5 per cent through 2020. FDI is projected to surge this year, with a significant increase in quality investment. And Vietnam’s young, educated and tech-savvy workforce continues to attract Fortune 500 companies.

2019 has been a pivotal year for Vero in the region. The agency was shortlisted as Southeast Asia PR consultancy of the year by the Holmes Report, and landed Campaign Asia’s PR campaign of the year Gold Award. The momentum also allowed the agency to turn to new markets, launching an office in Jakarta and the Philippines and winning a number of new regional accounts for governments and multinationals.

Switzerland & World Bank to work with Da Nang

The Swiss State Secretariat for Economic Affairs (SECO), the World Bank, and the Da Nang City People’s Committee have announced a joint collaboration program to strengthen the city’s institutions and capacity to mobilize and utilize financial resources in a more effective, efficient, accountable, and sustainable manner.

The program provides advisory and capacity building support in four key areas of common interest – Fiscal Strategy, Medium-term Budgeting, Public Service Performance Reporting, and Public Debt Management – which were highlighted in the city’s Public Expenditure and Financial Accountability (PEFA) assessment. This support is expected to build a solid basis for broadening and deepening reforms and collaboration in the medium-term.

“Da Nang is an emerging growth pole with a long-term vision to be an international gateway and regional commercial hub,” said Mr. Ousmane Dione, World Bank Country Director for Vietnam. “But it is facing a host of challenges to deliver vital urban infrastructure and services in a fiscally-constrained environment. These challenges reinforce the need for more efficient resource mobilization, planning and implementation of spending programs within a medium-term framework that ensures long-term fiscal sustainability, and sound management of public debt and fiscal risks.”

This is the first partnership between SECO and the World Bank in support of public financial management reforms at the sub-national level in Vietnam. It complements their joint support for public finance management reform at the national level.

The Public Financial Management Reform Program (PFMRP), during 2019-2025, is funded by a $3 million grant provided by SECO and administered by the World Bank for the benefit of Da Nang.

“Vietnam and its secondary cities have been priority partners for Switzerland’s cooperation support for many years,” said Mr. Marcel Reymond, Head of Cooperation at the Embassy of Switzerland in Vietnam. “SECO focuses on effective economic policies and institutions, including public financial management reforms, among other areas. It appreciates Da Nang’s vision and ambition to drive reforms. The program needs a committed partner to build a policy feedback loop from the subnational level to the central government in order to leverage results.”

“To ensure the effective implementation of the program over the next six years, the city looks forward to establishing a joint Steering Committee with the World Bank and SECO as governing body to oversee the strategic focus of the program, discuss progress, and address challenges that may arise during implementation,” said Mr. Huynh Duc Tho, Chairman of the Da Nang City People’s Committee.

S&P assigns Nutifood preliminary ‘B’ long-term credit rating

Its rating was based on the expectation that Nutifood would successfully issue the proposed US-dollar senior unsecured notes and use the proceeds of the bond to repay debt of about US$115 million to fund product development, upgrade and expansion of production facilities, the global rating company said.

Nutifood has a small scale and market share in Viet Nam’s dairy market with 8 per cent market share, far behind the biggest player Vietnam Dairy Products JSC (Vinamilk) with 40 per cent and FrieslndCampina Vietnam Co Ltd with 17 per cent market share, according to Euromonitor.

Nutifood’s small scale will constrain the company’s earnings predictability for at least the next three years. S&P expect earnings before interest, taxes, depreciation and amortisation (EBITDA) to average VND1.7 trillion ($73 million) between 2019 and 2021. Vinamilk’s EBITDA is nearly eight times that of Nutiood.

The company, however, has a well-established brand in the niche segment of specialty milk with its ‘GrowPlus+’ brand increasing to become the second-largest brand in the milk formula segment with nearly 14 per cent of market share.

S&P expects it to remain focused on its core dairy business, which will still account for more than 90 per cent of its net revenue over the next two years.

The proposed note issuance will ensure liquidity for the next 24 months but also expose Nutifood to foreign currency fluctuations, given its revenues are substantially denominated in Vietnamese dong, S&P said.

Competition in Viet Nam’s dairy market will likely stay high, especially after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) removed import tariffs on dairy products from New Zealand, Singapore and Japan.

However, the stable outlook reflects S&P’s expectation that Nutifood will largely preserve its market share in the Vietnamese dairy industry over the next 24 months with its significant brand equity as the company continues to expand its operations.

Plastic shoe sales soar during rainy season in HCM City

The rainy season and flooding caused by high tides have caused inconveniences for local residents in recent weeks.

According to a shoe shop owner in District 3, many people have been visiting his store, especially during weekends. Thousands of plastic shoes are on display, many of which even covering the store’s walls.

Depending on the design, a pair of waterproof shoes can cost from VND200,000 to 500,000. Many are offered at a discount price at 50 per cent per pair, he added.

Nguyen Thi Thu, a resident in Binh Thanh District, said that she and her husband had bought two pairs of flip-flops. As Thu’s family lives in a small, flood-prone alley, it is essential for her to purchase these items.

A similar circumstance can be seen at another shoe store on Hai Ba Trung Street in District 1 where some customers bought plastic shoes that cost over VND1 million.

Nguyen Dinh Hung, a resident in District 7, toldTuoi Tre (Youth) newspaper that these expensive plastic shoes were easy to walk in and odourless.

In addition to the two stores, many shoe shops in HCM City are selling plastic shoes ranging from VND50,000 – 200,000 per pair.

Price variety

According to Tran Yen Vi, a shoe shop owner on Ly Chinh Thang Street in District 3, lightweight plastic shoes have been bestsellers in recent years.

Plastic shoes with back straps are particularly “in”, she said, adding that students tend to purchase these items.

Vi’s store offers about 100 types of plastic shoes. Their price depends on the thickness of the sole and the level of sophistication of the design, among other factors.

“Plastic shoes with stickers attached on them are popular this year,” Vi said, adding that each sticker can range from VND5,000 to 30,000 each.

Similarly, Hoang Anh Xuan from a shoe shop in District 1 said the number of shoe sales rise during the rainy season. About 10 other shops in the chain have gained a significant amount of revenue these days, she added.

Xuan said the chain had introduced about 50 designs of waterproof shoes this year, some of which sold out after a month of display. The rainy weather as well as beautiful designs and materials have all increased sales.

These shoes are pricey, ranging from VND795,000 to VND1.3 million per pair for children, and between VND695,000 and VND1.7 million per pair for adults.

Bac Lieu province works to give its shrimp brands

The Mekong Delta province of Bac Lieu will work closely with FLC Group and Viet Uc Group to build and develop brands for local shrimp products under a cooperative deal inked between the provincial People’s Committee and the two corporations on October 3.

The three sides will coordinate to register, manage and protect shrimp brands in Bac Lieu. The Viet Uc Group will help the province to develop its shrimp brands in line with national and international standards, while brand promotion campaigns will be designed and carried out by the locality, the Viet Uc Group and FLC Group, with promotional events held once a year at an FLC resorts or at high-tech shrimp farms owned by the Viet Uc Group.

Bac Lieu province has pledged to create the best conditions for the two businesses and local shrimp producers to develop their business and production value chains. Besides asking for support and advice from competent ministries and branches, the province will work to have local shrimp products labeled with the Vietnam Value tag.

According to Chairman of the provincial People’s Committee Duong Thanh Trung, Bac Lieu is the second largest shrimp producer in the country, with more than 135,000 hectares of shrimp breeding and a yield of some 150,000 tonnes per year. The province gains on average 600 million USD from shrimp exports annually.

The province is striving to become the national shrimp hub under the direction of the Prime Minister, he added.

Meanwhile, Director of the Directorate of Fisheries’ Department of Aquaculture Nhu Van Can said the fishery sector contributes about 3 percent of the nation’s GDP. As a key export, Vietnamese shrimp has been sold in more than 90 countries and territories. Last year, the product earned the nation over 3.55 million USD, accounting for 45 percent of the sector’s value.

However, Can said promotions for Vietnamese shrimp are still lagging behind the industry’s potential and development. Thus, he recommended Bac Lieu province and the corporations to develop shrimp brands in tandem with ensuring quality, building rational prices and expanding consumption markets./.

Most enterprises positively evaluate business environment

Most enterprises forecast that business situation in the last quarter of this year will be more optimistic than the previous quarter, according to the recently released survey on business situation of enterprises conducted by the General Statistics Office of Vietnam.

Particularly, 52.1 percent of enterprises said that business tendency in the last quarter of this year will be better; 12.1 percent forecast that the situation will be more difficult; and 35.8 percent predicted that business situation will be stable.

Earlier, in the third quarter of this year, 43.3 percent of enterprises expected better business situation than previous quarter; 18.3 percent rated that the situation would be worse; and 38.4 percent considered business situation to be steady.

Foreign direct investment sector continued to give the most optimistic evaluation with 90.1 percent of enterprises forecasting that business situation in the fourth quarter will be better and maintain stability. This proportion in state-owned and non-state enterprises was 82.8 percent and 87.5 percent respectively.

At the present, the number of orders in general and export orders that domestic firms received has strongly increased. As for orders in general, in the fourth quarter of this year, 47.9 percent of enterprises will see increasing number of orders; 11.5 percent will suffer a decrease in the number of orders; and 40.6 percent will have a stable number of orders. As for export orders, 40.9 percent of enterprises are expected to have more export orders; 11.6 percent are expected to have less export orders; and the number of export orders of 47.5 percent of enterprises will remain unchanged.

Vietnam racks up US$5.9 billion trade surplus over nine-month period

Vietnam has enjoyed consistent growth in export turnover amid numerous difficulties, with a trade surplus of approximately US$5.9 billion, representing one of the positive aspects of the country’s economic picture during the first nine months of the year.

According to statistics released by the Ministry of Industry and Trade, the total import-export turnover during the reviewed period stood at an estimated US$382.72 billion, of which export turnover surged by 8.2 per cent to US$194.3 billion. Furthermore, import turnover rose 8.9 per cent to US$188.42 billion on-year.

After reaching growth rates of 5.3 per cent and 7.2 per cent during the year’s first quarter and second quarter, respectively, exports showed significant improvements during the third quarter, bringing the total export turnover for the nine-month period to a rise of 8.2 per cent.

Although the growth rate has suffered a slow down in comparison to the same period in 2017 and 2018, it has met the export growth target of 7 per cent to 8 per cent set by the National Assembly this year.

Pham Tat Thang, former director of the Vietnam Industry and Trade Information Center under the Ministry of Industry and Trade, highlighted the role of domestic enterprises that have made remarkable export achievements in the reviewed period.

The growth rate of export turnover among domestic firms reached 16.4 per cent, doubling the country’s growth rate and representing a three-fold increase in comparison to the growth rate of FDI businesses.

With regard to the domestic sector, although agro-fisheries exports fell by 5.7 per cent, the processed industrial exports increased by 10.3 per cent against the same period last year. The export of several commodities, including wooden products, garments and textiles, plastic and rubber products, also enjoyed strong growth.

This robust growth can be attributed to the nation’s efforts to improve the overall business climate and accelerate international economic integration, all of which have served to facilitate the production activities of enterprises, especially in the field of industrial production.

During the remaining months of the year, exports of goods are expected to maintain their current growth trajectory, focusing on traditional commodities such as apparel and textiles, footwear, and furniture.

In addition, the increase in the purchasing power during the upcoming Lunar New Year is predicted to contribute to the export growth of goods for the remainder of the year.

The Ministry of Industry and Trade has worked out solutions for boosting exports and helping domestic firms improve their production capacity and engage in the supply chain of foreign enterprises.

India’s import restriction hits Vietnamese agarbatti makers

Many makers of agarbatti incense sticks and similar products in Hanoi are halting or reducing their production following India’s recent decision on curbing the products from Vietnam.

The Directorate General of Foreign Trade of India said in a notification “Import policy of agarbatti and other odoriferous preparations which operate by burning …is revised from free to restricted”.

The decision has made an impact on Vietnam which accounts for 90 percent of India’s agarbatti imports.

In the past, each month an agarbatti workshop can sell about 100 tonnes of incense sticks, earning nearly 90,000 USD. However, since early September, many units have faced difficulties in exporting their products. Some of them even considered close-down.

Quang Phu Cau commune in Hanoi’s Ung Hoa district has five hamlets with 3,300 agarbatti production units, which mainly export their products to India. The recent move to curb import of agarbatti products from Vietnam has made impacts on the trade village.

Vietnam’s Ministry of Industry and Trade said India’s restriction on its import of agarbatti from Vietnam because Vietnamese products are much cheaper than those of the same kind in India. In addition, products imported from Vietnam have also enjoyed preferential tariffs from the ASEAN-India Trade in Goods Agreement, hurting many Indian agarbatti businesses./.

Annual sustainable development reports are a necessity

Listed companies should find a way to include sustainable development in their business strategies as they seek to improve operations, experts said on Monday.

Doing so will make the business more attractive to potential investors and shareholders as they now pay more attention to green business strategies, according to Tran Thi Thanh Tu, head of the financial-banking department at the University of Economics and Business under the Vietnam National University.

As companies look for financing sources from green investors, it will make their business more profitable and reputable in the long term, she told a seminar on green finance and sustainable development.

However, many of the 200 surveyed companies do not care about sustainable development and green finance as they consider the two things “luxury commodities” given their limited resources, Tu said.

About 440 listed companies were evaluated for last year’s sustainable business awards. However, only 23 firms made it to the final assessment and those firms were the largest companies by market value.

Some of the finalists were the Vietnam Dairy Products JSC (Vinamilk), insurer Bao Viet Holdings and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

According to Nguyen Viet Thinh, CEO of the Vietnam Institute of Directors, only 11 companies last year had independent sustainable development reports, which was almost double the number recorded in 2017. But it was still modest compared to the size of the Vietnamese business community.

Notably, the top 10 companies nominated for the awards had their sustainable development reports included in the annual reports. The largest firms by market capitalisation maintained a good quality of reports for six straight years.

Thinh said the sustainable development report must be finalised in the April-May period and the sooner it gets done the better.

Data should be collected consistently during the financial year and the report should be treated as a long-term opportunity for the business, he added.

Even top companies with best sustainable development reports have not performed data analytics to see how they have changed through the years, Thinh said.

He suggested the board of directors must play a major role in making sustainable development strategies popular to investors and shareholders, thus improving the company’s transparency and corporate governance.

“The board of directors must be strongly committed to delivering sustainable development activities and ensure the company stays on its path towards a sustainable business operation,” he said.

According to Nguyen Cong Minh Bao, Director of the Global Reporting Initiative (GRI) Vietnam, reputational risks and benefits, regulatory requirements and CEO’s directive, operational risks and benefits, investors’ interests and requirements, and market growth opportunities are among the most common factors that prevent a business from striving towards sustainable development.

Hoang Duc Hung, deputy director of PricewaterhouseCoopers (PwC) Vietnam, told attendees that compiling a sustainable development report requires the company to have sufficient human and financial resources.

Small- and medium-sized enterprises (SMEs) have to establish a specialised unit to monitor the compilation of sustainable development reports, Hung said.

“Financial and non-financial strategies must be developed within the business. And anyone responsible for preparing the firm’s sustainable development report must make sure the system and workflow are passed to the next generations, saving expenses and workloads for the business.”

“Sustainable development reports must be standardised so that they are collectable at the end of the year,” Hung said.

Geographical indications should be effectively exploited

Although Viet Nam has many products with geographical indication (GI) certification, the country has failed to exploit the benefits, according to experts.

Hung Yen longan is one example.

There are many varieties of longan nationwide, but Hung Yen’s long longan, known as the fruit for kings, is famous for its thick pulp and sweet taste.

Hung Yen’s long (cage) longan was ranked 13th in the top 50 famous fruits of Viet Nam and was registered with a national trademark and geographical indication.

However, many consumers still find it difficult to distinguish between Hung Yen longan and longan from other localities.

Bui Xuan Tam, Director of Ne Chau Longan Cooperative in Hung Yen City’s Hong Nam Commune, said longans from other provinces often imitate Hung Yen longan.

“When thinking about Hung Yen, consumers immediately think of long longan, but in fact, there are nearly a dozen varieties of longan in the province,” he said, adding that the province has created a development strategy for Hung Yen longan.

In the future, Hung Yen would recommend growers of delicious longan varieties, which were favoured by consumers, and expand the farming in accordance with VietGAP (Vietnamese Good Agricultural Practices) standards.

Nguyen Van Quan, head of office of Hung Yen Province’s Department of Agriculture and Rural Development, said longan without certificates were cheaper than those cultivated by renowned producers.

“It was a challenge to manage the sale of longan as they were sold by street vendors,” he said.

A survey conducted by the Ministry of Industry and Trade (MoIT) showed that only 9.5 per cent of enterprises and organisations regularly use GI.

Leaders of the MoIT said enterprises got support in terms of capital during the development of GI but after that they didn’t know how to take the next step.

Another reason was that GI was not granted to the right subject, they said.

GI violations were still taking place in many localities with specialties like Luc Ngan lychee, Ngoc Linh ginseng or Phu Quoc fish sauce.

Recently, intellectual property development has been a concern and invested by localities. The number of products protected by GI has risen to 73 – mainly agricultural products such as fruits and seafood.

The GI has affected the perception of businesses and people about the product’s reputation and value. Therefore, the value and price of the product went up substantially.

Nguyen Xuan Ha from Hoa Binh Province’s Cao Phong Orange JSC, said after obtaining GI, the price of orange doubled compared with before.

The economic value of orange cultivation was raised from VND250 million to VND700 million (US10,800 – $30,000) per one hectare.

In the past, traders used to bring oranges from other localities to Cao Phong District and sold them under this brand. However, Ha said, since the Cao Phong Orange Association was established, the issue has been solved because it was producers who best knew how to identify counterfeit products and who brought the products to the localities.

Cha muc Ha Long (Ha Long grilled squid pie) had a similar experience.

After building a brand, the price of the product increased by 13-17 per cent, while consumption rose by 33-35 per cent, creating more jobs for local residents.

The current trend of the market requires products of clear origin and trademarks protected by authorities. Therefore, the registration of GI for products is very important in order to improve their value and competitiveness.

With the registration of GI, Vietnamese products are protected in the domestic market as well as have the opportunity to increase export output, particularly to demanding markets like the European Union or Japan.

Effective exploitation of GI

The GI registration is the first step in establishing ownership and legal factors related to local specialties.

In order to develop sustainably, it is necessary to have close coordination between ministries, including the Ministry of Science and Technology, the Ministry of Agriculture and Rural Development, and the Ministry of Industry and Trade in building and managing geographical indications, according to Do Thang Hai, deputy minister of industry and trade.

Localities, enterprises and trade associations also play an important role, he said.

Dao The Anh, Deputy Director of Field Crops Research Institute, said experience from some countries showed that small businesses and enterprises didn’t have enough financial capacity. Thus, the Government will support the use of GI through dissemination on these products’ information to consumers.

Currently, this support is feasible because the country has the “One Product One Commune” Programme (OCOP). The OCOP programme, which aims at promoting local products, would facilitate the exploitation and use of GI.

Once a product obtains GI registration, it should be quickly included in the OCOP Programme to get support in terms of marketing capacity and production as well as improve its quality, he said.

Da Nang-based brewer to export from 2020

The 7 Bridges Brewing Company plans to double its sales through 2020 and begin to meet export demand, Mr. Stanley Boots, Founder and CEO, told VET. “Since commencing business in April 2017, we have seen steady growth in our sales and production aligning well with the general and excellent growth of the Vietnamese beer market.”

The concept of 7 Bridges Brewing Company formed in the summer of 2016 and R&D started in September 2016. During that time, the founder was brewing test batches aiming for commercial production, which commenced in April 2017 once the license was issued. R&D is a key element of its business model and involves constant re-investment in production systems, sales outlets, and product recipes.

7 Bridges and its brewing partner, the Danang Craft Brewing Company, which handles production, have invested more than $1 million into development of a joint brewing project. Both companies saw growth of more than ten-fold in sales and production between April 2017 and August 2019.

Looking at current regulations in the industry after investing in Vietnam for many years, Mr. Boots believes frequent policy shifts pose challenge for investment in Vietnam. This is especially true in respect of detailed tax rules.

“We maintain a team of three accountants plus outsourced accountants and still find it challenging to satisfy tax filing procedures,” he explained. “Our local tax office has been helpful, but we can’t deny that the rules are complex and policies seem to shift frequently.”

“We are consulting our legal team about this. However, this stands as an example of an additional cost to doing business in Vietnam, where new decrees and circulars are released to the surprise of businesses, causing them to spend more on legal support and compliance.”

Vietnam’s special consumption tax (SCT) on beer and alcohol eats deeply into the potential margins for domestic beer sales. It is therefore rather attractive to export beer, which will then not be subject to such high taxation, for both brand growth and improving margins at the production level.

“We are looking at several regional markets for export and have already commenced exports to Singapore,” Mr. Boots said. “To continue our growth, we will need to increase capacity. This means additional investment in the brewery.”

Bringing financial literacy to investors

Speaking at a conference titled ‘Ring the Bell for Financial Literacy’, Nguyen Thi Viet Ha, a member of the board of directors of the Ho Chi Minh Stock Exchange, said: “The Vietnamese stock market currently has two million active accounts, a fairly small rate compared to Viet Nam’s population.

“Many investors and the public still have limited financial knowledge. Improving the financial knowledge and financial skills of investors and the public is crucial to increasing the number of investors participating in the market.”

Nguyen Anh Vu of the Banking University of HCM City told a talk show titled ‘The importance of Financial education for Investors’, held as part of the conference, that when a person has better financial literacy, they would see more good investment opportunities.

Truong Hien Phuong, senior director of KIS Vietnam Securities Corporation, said most stock investors depend on their own information sources and understanding of companies or advice from brokerage firms.

The best way for them is to seek consultancy from professional organisations, but they should themselves have solid financial knowledge to make rational investment decisions, make higher returns and reduce risks, he said.

Speakers from intermediary organisations and financial education agencies shared their experiences in educating investors and the public in financial knowledge and offered recommendations to operators and regulators to improve financial literacy.

Organised by HOSE, the Institute of Chartered Accountants in England and Wales and Smart Train, ‘Ring the Bell for Financial Literacy’ event was held to coincide with the World Investors Week (WIW), a week-long campaign organised by the International Organization of Securities Commissions (IOSCO) and World Federation of Exchanges (WFE) from September 30 to October 4.

Within the framework of WIW, ‘Ring the Bell for Financial Literacy’ was held by 33 global stock exchanges to raise public awareness of financial literacy and connect market operators and intermediary organisations with financial academies to improve accountability in training and investor protection.

According to IOSCO, the need for investor education and financial literacy has never been greater than today as the financial marketplace continues to evolve and innovate, investment products get complicated and financial services become increasingly diversified.

Workshop discusses impacts of climate change on economic development

CGE is an economic model that uses actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. Applying the CGE model, the impacts of climate change on economic development has been analysed through changes to the productivity, output, quality and structure of the agricultural sector and its sub-sectors.

“Climate change needs urgent attention at global, regional and national levels. Developing countries like Viet Nam are the most vulnerable to climate change because they lack the knowledge and capacity to cope with its negative impacts,” said FTU Deputy Rector Pham Thu Huong.

Huong said the workshop would open a new chapter for studies on climate change in Viet Nam.

Presentations at the workshop focused on building models to evaluate the impacts of climate change on various aspects of economic development in Viet Nam.

Participants also discussed policies and recommendations to adapt to climate change in Viet Nam.

At the event, the FTU, the Centre for Data Science and Service Research – Graduate School of Economics and Management of Tohoku University (Japan), the Faculty of Economics and Business Management of National University of Laos, and the Climate Change Research Centre at the Viet Nam Institute of Meteorology, Hydrology and Climate Change signed an agreement on furthering co-operation in research and education on climate change and economic development. They also launched a network to expand joint research and education on climate change.

Hai Duong’s industrial production value rises 12.3 percent

Industrial production value of the northern province of Hai Duong hit 174.6 trillion VND (over 7.5 billion USD) in the first nine months of 2019, equivalent to 84.1 percent of the plan set for the year, and up 12.3 percent against that of the same period last year.

Sectors that saw stable growth in the reviewed period are production of ignition kit and engine wire (32.9 percent), footwear (20.3 percent), electricity production (20.2 percent), electronic integrated circuit (15.7 percent), and garment and textiles (13 percent).

With remarkable socio-economic achievements, Hai Duong province has become an economic spotlight in the Red River Delta and the northern key economic region.

In the first half of this year, the provincial economy grew about 7.2 percent. The industry and construction sector expanded 10.1 percent.

Besides, foreign investment attraction in Hai Duong province saw an increase.

Statistics from the Ministry of Planning and Investment’s Foreign Investment Agency show that the province lured 450 million USD in foreign direct investment (FDI) in the first half of this year, ranking 10th among the 46 localities that received capital of this kind in the period./.

Vinh Phuc: aquaculture output up nearly 5 percent

The northern province of Vinh Phuc yielded over 16,500 tonnes of aquatic products in the first nine months of this year, up nearly 5 percent year-on-year.

Of the figure, over 1,500 tonnes were caught, down nearly 2 percent, and the remaining were farmed, up over 5 percent annually.

Since the beginning of this year, the provincial agriculture sector has encouraged residents to expand intensive and semi-intensive aquaculture, develop large-scale concentrated production connectivity models, guide farming households on how to adopt VietGAP standards, and actively respond to natural disasters to mitigate losses./.

Dak Lak’s industrial production up 4.87 percent

The Central Highlands province of Dak Lak’s industrial production value has surpassed 10.76 trillion VND (467.8 million USD) since early this year, or 65.21 percent of the 2019 target and up 4.87 percent annually.

Specifically, the mining sector recorded 180 billion VND, up 9.3 percent year-on-year; the manufacturing and processing, over 8.2 trillion VND, up 1.8 percent; production and electrical and water supply, more than 2.37 trillion VND, up 2.33 percent.

The growth was a result of improved capacity at Hoa Phu industrial park, the operation of five solar power plants and water supply projects in Ea Na commune, Krong Ana district./.

Seminar talks Laos’ economic prospects

The Vietnamese Embassy and the Vietnam Business Association for Cooperation and Investment in Laos held a seminar in Vientiane on October 11 to discuss Laos’ economic prospects and impacts on Vietnamese enterprises in the country.

Attending the event were Vietnamese Ambassador to Laos Nguyen Ba Hung; Lao Deputy Minister of Planning and Investment and Vice Chairman of the Laos – Vietnam Cooperation Committee Khamphoi Keokinnaly; Chairman of the Lao National Assembly’s Committee on Planning, Finance and Auditing and Chairman of the Laos – Vietnam Friendship Association Central Committee Vilayvong Bouddakham; and former Director of the Lao National Economic Research Institute Bouasone Bouphavanh, among others.

Speakers gave initial forecasts about Laos’ economic prospects and its impacts on enterprises in Laos, including those from Vietnam.

They answered questions regarding land use planning, legal documents and export-import procedures, among others.

Speakers from Lao ministries and agencies vowed to do their best to advise the Lao government to provide all possible support to Vietnamese firms in the country, thus contributing to fostering the great friendship and comprehensive partnership between the two nations.

Vietnamese enterprises contribute an estimated amount of nearly 70 million USD to Laos’ social welfares each year, focusing on health care, education, infrastructure and housing for the poor in remote and mountainous regions.

Since 1989, Vietnam has carried out 413 projects worth nearly 4.1 billion USD in Laos, ranking third among 54 countries and territories investing in the country, according to data from the Lao Ministry of Planning and Investment./.

Vietjet reschedules flights to Japan due to super typhoon Hagibis

Vietjet Air has announced it will adjust schedules of flights to and from Japan’s Tokyo and Osaka from October 11-13 as super typhoon Hagibis is approaching the country.

Accordingly, passengers on four flights namely VJ822, VJ823, VJ932, VJ933 between Hanoi/Ho Chi Minh City and Tokyo (Narita) at night on October 11 and in the morning of October 12, will be scheduled for other flights when the weather is better.

Vietjet also rescheduled 16 hours later for flights VJ828, VJ829, VJ938 and VJ939 between HCM City/Hanoi and Osaka on October 12; and five hours later for flights VJ822, VJ823, VJ932, and VJ933 between HCM City/Hanoi and Tokyo, which was planned to depart at night on October 12 and in the morning October 13.

Passengers can visit the airline’s website www.vietjetair.com for further information.

Hagibis is forecast to be the strongest storm to hit Tokyo since 1958.

Over 1,000 flights in Japan have been canceled or rescheduled due to effects caused by the storm, according to Reuters and Bloomberg./.

Hanoi Gift Show 2019 to welcome over 1,000 importers

The annual Hanoi Gift Show 2019, the eighth of its kind, is expected to welcome 1,000 handicraft importers and over 10,000 visitors, Deputy Director of the municipal Department of Industry and Trade Nguyen Thanh Hai told a press conference on October 11.

Hai said the event, scheduled for October 17-20, will feature 650 stalls by domestic and foreign handicraft makers.

It will also include a zone for display of products made with artistic creativity, exquisite design and superb workmanship.

Hoang Minh Lam, Deputy Director of the Hanoi Centre for Industrial Promotion and Industry Development Consultancy, said an international seminar discussing the sustainable development of handicrafts on the back of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will also be held, attracting domestic and foreign speakers.

The “Match and Meet” event will draw 1,000 handicraft importers and suppliers, connecting together to negotiate contracts.

According to Nguyen Thi Luong, Director of the Hien Luong Bamboo & Rattan Export Co., Ltd, the show gives the exhibitors access to many new customers, explore the market’s new trends and learn from others’ experience in improving management and bringing products to the world market./.

Vietnam Seaports Association proposes raising service fees

The Vietnam Seaports Association (VPA) proposed raising service fees at its annual meeting held in the southern province of Ba Ria-Vung Tau on October 10.

Chairman of the VPA Le Cong Minh pointed out the uneven development of infrastructure and logistics services at seaports.

He said while the amount of goods handled in the north and the Mekong Delta reduces, that in southern Ho Chi Minh City, Dong Nai and Ba Ria-Vung Tau provinces increases and makes up nearly 60 percent of the country’s market shares.

Container goods via Cai Mep-Thi Vai (Ba Ria-Vung Tau), for example, rose by 21 percent in 2018 and 26 percent in the first half of 2019, he noted.

Deputy Minister of Transport Nguyen Van Cong agreed with the proposal of the VPA, saying Vietnamese seaport service fees are even lower than that of Cambodia.

He added that the ministry had worked with the Government and the Ministry of Natural Resources and Environment to seek ways to address difficulties in the field./.

Forum promotes diversity and inclusion in business

Business leaders, representatives of civil society, international organizations and consumers all agreed that promoting diversity and inclusion makes business sense at an event on inclusive business on October 11.

The Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Union of Science and Technology Association (VUSTA), the UN Development Programme (UNDP) and the Centre for Social Initiatives Promotion (CSIP) jointly held the Inclusive Business Forum in Ho Chi Minh City on the eve of the Vietnam Entrepreneur’s Day.

“UNDP believes in leaving no one behind, that is the best and the only way forward to achieving sustainable development and protecting our single planet,” said Dao Xuan Lai, UNDP Assistant Resident Representative in Vietnam.

“Many Vietnamese businesses are already greening their investments, generating decent jobs, creating opportunities to reduce inequalities in the workforce and challenging stereotypes, including for Persons with Disabilities and LGBTI persons. The Inclusive Business Forum provides a space to recognize and promote these leaders in business,” Lai said.

Participants at the forum said with a diverse work staff, regardless of their background, sexual orientation, gender identity, or being differently abled, businesses in Vietnam can tap into a pool of new talents and innovative ideas to keep up with rapidly changing markets.

The Inclusive Business Forum showcased examples of the innovation, business, and equality case for diversity and inclusion and discussed how these seemingly competing interests could not only complement but mutually reinforced each other.

CEOs, directors, managers and business leaders of multinational corporations, Vietnamese businesses, SMEs discussed the challenges and solutions associated with integrating diversity and inclusion into business operations, and to explore potential areas of collaboration for future endeavours.

Phu Nhuan Jewelry Joint Stock Company (PNJ) talked about their progressive marketing campaigns in using same sex couples to model their jewelry. This messaging helps to challenge stereotypes and combat discrimination against LGBTI, while PNJ can develop their consumer base by opening up their product and service lines to niche market segments.

Meanwhile, Francesco Tran Van Lieng, President of Vinacacao, said: “Vietnamcacao focuses on enhancing the social responsibility by keeping pace with 4.0 technology trend to help the disabled and less competitive labour forces to integrate into the working environment and contribute to the business growth, thereby redistributing benefits to society.”

The forum is part of the En Xanh (Blue Swallows) programe, the first in Vietnam to seek and honour business initiatives for sustainable development.

The programme, jointly held by the VCCI, VUSTA, UNDP and the CSIP, runs from August to October 2019./.

Intellectual property system works to adapt to 4th Industrial Revolution

A seminar themed “Intellectual Property Rights (IPRs) Protection And Enforcement in Industry 4.0” took place in Ho Chi Minh City on October 10 to exchange experience between Vietnam and Japan in the field.

Co-organised by the Intellectual Property Office of Vietnam (IP Vietnam) and the Japan Patent Office (JPO), the event was the 8th of its kind since 2005.

Speaking at the function, Le Ngoc Lam, Deputy Director General of IP Vietnam, said an effective IP system is necessary amid the 4th Industrial Revolution.

He suggested Vietnam need to complete and renovate protection mechanisms targeting new areas emerging from the revolution like artificial intelligence (AI), the Internet of Things (IoT), 3D printing and nanotechnology, among others.

The enforcement capacity of IPRs in cyberspace is also important, Lam added.

The official said IP agencies should apply new technologies, particularly blockchain, big data, and AI, in their operations and push for regional and global patent cooperation.

Manabu Niki, head of the JPO’s international cooperation division, said in 2017, the JPO came up with a plan to apply AI in its classification of inventions and searching for technical conditions and brands.

In response to the booming of IoT in Japan, the agency has added examples of the technology in its assessment manual and set up an IoT assessment team, he noted./.

Ocean accounting helps study sea’s value: workshop

Ocean accounting, which is built based on the System of Environmental-Economic Accounting (SEEA), helps experts and policy-makers evaluate the actual contribution the seas make to the economy, heard a workshop held in Hanoi on October 11.

The event was held by the Ministry of Natural Resources and Environment’s Institute of Strategy and Policy on Natural Resources and Environment (ISPNRE) in collaboration with Germany’s Hanns Seidel Foundation and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

Experts said that SEEA is a framework that integrates economic and environmental data to provide a more comprehensive and multi-purpose view of the interrelationships between the economy and the environment, and the stocks and changes in stocks of environmental assets. SEEA provides criteria to build physical data on the environment, and link it with the monetary data in the System of National Account (SNA).

Michael Bordt, an ESCAP expert, laid stress on the significance of ocean to livelihoods, nutrition and economic growth in Asia-Pacific, saying ocean accounting will help experts estimate exact statistics on the total contribution of the fishery sector to the economy as well as maximum sustainable yield.

Meanwhile, Nguyen The Chinh, ISPNRE director, said the institute is joining hands with ESCAP to carry out a pilot study on national ocean accounting to integrate information from all scientific sectors, policy frameworks and mechanisms to follow the progress of implementing the Sustainable Development Goals (SDGs).

The move is also aimed at improving interdisciplinary policies to optimise sustainable ocean exploitation and reduce the risks of ecosystem degradation and natural disasters, he added.

Chinh said the workshop created opportunities for the institute to share and consult related stakeholders on the initial findings of the pilot study in Quang Ninh province which focused on pollution from the mainland and the impacts of tourism on the ocean.

At the event, experts shared their views on identifying mainland pollution sources, the impacts of tourism on the ecosystem in the piloted areas, and opportunities to expand ocean accounting cooperation in other localities./.

Hanoi’s garment firms try to go green

Vietnam is one of the world’s largest garment producers, but experts have called on enterprises to brush up their green credentials for the domestic market.

Director of the Department of Industry and Trade of Hanoi Le Hong Thang told producers gathered at a networking event held by the department on October 11 to commit to environmentally-friendly garment production.

Thang said the textile and garment industry had always been one of Vietnam’s key industries, with export turnover of 30.4 billion USD last year, accounting for 13 percent of total exports. However, the sector was to blame for great amounts of environmental pollution, with huge water and energy use, as well as the discharge of toxic chemicals.

As one of Vietnam’s garment hubs, Thang said: “It is time for Hanoi to pioneer sustainability in the industry – reducing emissions and waste to protect the environment. This is also a way for local enterprises to increase their competitiveness in domestic and international markets.”

Nguyen Hai Duong, CEO of the M2 clothing chain, which has mostly served local consumers for the last 18 years, said: “We changed the way we serve our customers as their behaviours changed. We introduced products with less harmful materials and adopted recycled packaging. Though such things cost more, our customers are happier with their purchases.”

Duong’s chain is now expanding to other areas outside Hanoi.

Nguyen Quoc Trung, who has exported products made from bamboo to Germany for the last 15 years, now sells hessian jute bags, which can be used for shopping instead of plastic ones.

He told Vietnam News: “With more environmental awareness, consumers are paying more for eco-friendly products. We see a big local market and we don’t want to miss out.”

Buying a bag at Trung’s booth, Nguyen Linh Chi told Vietnam News: “The bag looks trendy and it also helps protect the environment. People of my age are now paying more attention to the environment.”

Chi added: “Doing something serious may be hard but buying products like this is easy.”

According to Trinh Quoc Vu, deputy head of Energy Saving under the Ministry of Natural Resources and Environment, with some 6,000 factories employing more than 3 million people, the industry is both economically and socially important for the country. However, the sector has an adverse environmental impact. Intensive water extraction, use and discharge of wastewater and high energy consumption for water heating and steam generation are all environmental concerns.

In contributing to sustainable development in Hanoi, the Department of Trade and Industry encouraged suppliers, manufacturers, distributors and local consumers to help ensure the sustainable development of the industry.

It set criteria for sustainable development from the very beginning of the production cycle, such as the use of dyes with low formaldehyde content, to using recycled materials for packaging./.

Nearly 200 outstanding Hanoi enterprises honoured

Close to 200 businesses representing over 270,000 enterprises in Hanoi were honoured at a programme held at the Opera House on October 11 night for their outstanding performance as well as their important contributions to the development of the capital city and the nation.

The programme “Business Night 2019” was held by the Hanoi Association of Small and Medium-sized Enterprises on the occasion of the 65th anniversary of Hanoi’s liberation (October 10) and the 15th anniversary of Vietnam Entrepreneurs Day (October 13).

Speaking at the event, Chairman of the municipal People’s Committee Nguyen Duc Chung said over the past years, Hanoi has stepped up administrative reform and increased the application of information technology to reduce time and costs for businesses.

The city has issued many policies to support startup and innovation with a goal of building Hanoi into a startup and innovation centre of the country and a venue that connects resources of the startup ecosystem, he said.

Appreciating the great contributions of the local business community, especially SMEs, to the city’s general development over the past time, Chung said he believes that in 2020 and following years, the business community will continue playing a core role in the capital’s development and prepare firm conditions for their international integration.

Also at the event, local businesses donated over 3 billion VND (129,300 USD) for the Hanoi Fund for Children to help poor children and families with difficulties in the city.

With the business community’s contributions, in 2018, the Provincial Competitiveness Index of Hanoi leapt 15 places to ninth position among the country’s 63 provinces and cities.

The favourable environment has helped raise the number of enterprises established in the city since 2016 to almost 93,000, an increase of 22.5 percent compared to the 2011-2015 period, with a combined capital of 280.1 trillion VND, 1.17 times higher than the capital registered between 2011 and 2015.

Hanoi has attracted 20.28 billion USD in foreign direct investment (FDI) since 2016, rising over three-fold from 2011-2015 and making the city the best performer in FDI attraction nationwide.

|The private economic sector has become an important driving force of the local economy with its proportion increasing from 37.5 percent of the GRDP in 2015 to 39 percent in 2018.

Hanoi posted average annual economic growth of 7.2 percent between 2016 and 2018. The size of its economy has also expanded, with GRDP hitting 920.27 trillion VND (39.6 billion USD) last year./.

Seminar talks Laos’ economic prospects

The Vietnamese Embassy and the Vietnam Business Association for Cooperation and Investment in Laos held a seminar in Vientiane on October 11 to discuss Laos’ economic prospects and impacts on Vietnamese enterprises in the country.

Attending the event were Vietnamese Ambassador to Laos Nguyen Ba Hung; Lao Deputy Minister of Planning and Investment and Vice Chairman of the Laos – Vietnam Cooperation Committee Khamphoi Keokinnaly; Chairman of the Lao National Assembly’s Committee on Planning, Finance and Auditing and Chairman of the Laos – Vietnam Friendship Association Central Committee Vilayvong Bouddakham; and former Director of the Lao National Economic Research Institute Bouasone Bouphavanh, among others.

Speakers gave initial forecasts about Laos’ economic prospects and its impacts on enterprises in Laos, including those from Vietnam.

They answered questions regarding land use planning, legal documents and export-import procedures, among others.

Speakers from Lao ministries and agencies vowed to do their best to advise the Lao government to provide all possible support to Vietnamese firms in the country, thus contributing to fostering the great friendship and comprehensive partnership between the two nations.

Vietnamese enterprises contribute an estimated amount of nearly 70 million USD to Laos’ social welfares each year, focusing on health care, education, infrastructure and housing for the poor in remote and mountainous regions.

Since 1989, Vietnam has carried out 413 projects worth nearly 4.1 billion USD in Laos, ranking third among 54 countries and territories investing in the country, according to data from the Lao Ministry of Planning and Investment./.