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“VIETNAM BUSINESS NEWS”
The Economic Mirror Indochina’s
August 2014
Economy, International Cooperation, Investment,
Business, Markets & Prices, Culture
We report about the latest prime business news from various fields, as well as the
economic environment in particular for western business people. We publish the
informations, news and reports of the leading news sources which could appear
of special interest for our clients.
INDEX:
Subjects after Country marked:
V = Vietnam. C = Cambodia. M = Myanmar. L = Laos. O = Other Country's.
Topic of the Month
V – Vietnam - Labor costs, labor productivity and the real thing
Economy & Business
O - Why Chinese companies are setting up new plants in The States.
V - Foreign investors vital for economy
V - Gov’t greenlights auto industry plan
V - Rising Costs in China’s Pearl River Delta Causing Manufacturers to
Look to Vietnam
V - Vietnam: Asia’s Best Sourcing Destination
V - TPP provides US firms with huge prospects
V - Business outlook optimistic
V - The Trans-Pacific Partnership agreement will make Vietnam an alluring
destination for US manufacturers.
O - US - ASEAN Partnering and innovating for sustainable agriculture
Int'l Cooperation
V - Israel seek stronger agricultural partnership
V - Vietnam - New Destination of Supporting Industries
V - Business forum examines Vietnam-Germany economic ties prospects
Investment
M - More than 3,000 companies registered under foreign investment law
V - Terumo BCT opened new factory in Ho Chi Minh City
V - HCMC: FDI inflow centers on garment and textile sector
V - French businesses to increase investment in VN
V - Japanese businesses want to invest in Vietnam
M - Singapore tops FDI list
V - Foreign textile firms line up for TPP bonanza in Vietnam
V - B. Braun looks to invest extra US$270 million
V - Foreign investors pump millions of USD into tires
V - Denmark eyes green energy in Vietnam
Finance & Banking
O - The euro-zone economy
V - Standard & Poor's rates Vietnam for stability
Markets & Prices
V - 99.9% of Vietnamese enterprises are super small
V - India – leading pharmaceuticals supplier to Vietnam
V - Impressive Domestic Trade
V - Developing Safe, Sustainable Electronics Industry
V - Marks & Spencer to enter VN
V - Vietnam Leather - Footwear: Active in Global Economic Integration
V - Truck market sees steady growth
V - “China+1” policy helps major players ease reliance on China
M - Vietnam’s biggest pharmaceutical company to invest in Myanmar
V - Beer makers keep barrels rolling
V - Foreign Firms Dominate Vietnam’s Advertising Market
V - Big retailers flock to VN
V - Leather and Footwear Development - Focus on Increased Localisation
V - Robins Department Store officially coming to Ho Chi Minh City
V - Ford Vietnam churns out first EcoSport
V - VN companies listed in Asia Pacific’s top 500 retailers
C - New Registered Businesses Increase by 33 Percent
V - Non-alcoholic beverage market takes off
V - Luxury car dealers report steady sales despite economic slump
Export-Import
V - Procurement, import & export of merchandise of all kinds
V - Viet Nam's trade with Asia-Pacific up nearly 11%
V - Footwear, handbags exports up 19.2%
V - VN-EU FTA will benefit Vietnamese firms: experts
V - Dong Nai sees 15.8 percent rise in exports
Enterprises
L - Auto industry globalization: Tier I production reaches Laos
C - Aeon Mall Offers Sneak Peek Before Opening
Particular Reports
V & C - The Mixture of Communists and Capitalists is Vietnam's and Cambodia's Essence
V - Siemens Healthcare Day aimed at improving nation’s health
O - Chinese rise in Golf shows the economic change
Culture & Art
V - Unique fine arts products in Dong Ky
Tourism
V - Three Vietnamese hotels named best hotels in Asia
V - VN cited a top 20 world’s most beautiful country
M - Along the coast of Burma
Fairs & Exhibitions
V - Highlight Technologies, Hightlight Activity at Vietnam Manufacturing Expo 2014
VIETNAM - CAMBODIA - LAOS – MYANMAR. All Fairs 2014 in with organizer contact data
REPORTS
Topic of the Month
V – Vietnam - Labor costs, labor productivity and the reality
27.7.2014
The GTAI (German Trade and Invest) published in his Vietnam letter July 2014 issue:
..... Low wages and salaries are considered a significant advantage in Vietnam. The
country has been so successful as an "extended workbench" for labor-intensive
manufacturing. Yet, wages rise faster than labor productivity. In so doing, only a third of
the workforce, gets wages and salaries. Against the shortage of skilled workers have
better training and practice orientation as the only way. The labor laws are already very
demanding and protect workers extensively. ......
Basically this is correct
However the reality, i.e. that wages rise faster than labor productivity, looks quite different
in practice. Why? Because labor costs of $125 per month (skilled worker average-salary) in
2012 increased by 2014 only to $150. For $25 you can afford a little less labor productivity.
Because the same skilled workers in the economically advanced EU countries Germany, Austria,
Holland costs from €2000, equivalent to $2700, upwards and so is eighteen times more
expensive. Okay, he brings 100% labor productivity. But instead, here this is compensated by
additional working-hours, called overtime -the ever so beloved additional bread- with it they close
the productivity gap. They can then earn even $180 to $200. Which is still thirteen times less
expensive than in Central Europe. And if the right location, executives and company manager
have been chosen this balances the labor productivity, the product’s monetary value and profit.
Whether Manufacturer, Importer/Exporter or Trader the location Vietnam remains highly
interesting. Why? Because Vietnam offers long-term political, economic, on price-performance,
by skilled craftsman offering the best conditions for growth. Also flanked by long-term tax
advantages for foreign investors. EU & U.S. companies such as Adidas, BASF, B. Braun,
Deichman, General Electric, Helli Hansen, Daniel Hechter, Knauf, Mercedes, Michelin, Nike,
Puma, Ralph Lauren, Siemens, Triumph International, WMF, confirm this. Long ago they have
taken advantage of all these benefits.
Of course you have to say also that Vietnamese executives such as Robert Bosch Managing
Director Vo Quang Hue are usually the exceptions in Western companies.
Therefore, especially for SME's applies; bring the proven performer from the home country. He is
a key figure and the implementer to do so. Provided he has many years of experience not only
with the Asian labor productivity but preferably also with work experience in Japan or with a
Japanese company.
Site cost / rent, etc., are in the same relations.
Dipl.-Ing. Alex Narr, CEO Productionservice-Vietnam
Productionservice Vietnam has:
•The finger on the pulse of labor costs and productivity.
•Knows what to do to make this work and still remain thirteen times cheaper.
•Would you like us to do this for you?
PRODUCTIONSERVICE-VIETNAM handles all business activities to German quality standards in
Vietnam, Cambodia, Myanmar and Laos.
http://www.produktionsservice-vietnam.com/news.php shows all to know about market-entry and
business in Vietnam & Indochina in practice.
Economy & Business
O - Why Chinese companies are setting up new plants in The States.
PSV, 28.07.2014
The Global Times China published on June 18th 2014 (shortened report);
A growing number of labor-intensive companies in China are expanding their production lines into
the US where the costs are believed to be lower and local governments are issuing policies to
restore their manufacturing industry.
Golden Dragon Precise Copper Tube Group, a Chinese copper pipe maker in Xinxiang recently
announced that they finished a plant with 44.6 hectares in Alabama with an investment of nearly
$100 million. The plant aiming to produce 60,000 tons of seamless refined copper pipes every
year. Golden Dragon is not the first one to set foot in the world's biggest economy and will not be
the last one either.
Zhejiang textile manufacturer Keer Group in last December bought space in South Carolina,
planning to build a 150,000-square-meter plant in five years with investment of $218 million.
According to the Ministry of Commerce, Chinese companies' direct investment into the US surged
144 percent in the first five months through May 2014 from a year earlier, hitting $2.03 billion,
while the total amount dropped 10.2 percent year-on-year.
With China's labor costs spiking by 10 to 15 percent annually, experts say that an
increasing number of Chinese companies see less financial benefit in staying in their
home market.
Low costs
Li Changjie, president of Golden Dragon, believes that running a plant in the US requires less
expenditure and is more economical than in China, even though the company has to pay higher
salaries to local employees.
Keer will also see reduced spending, estimating that its US plant can save 750 million yuan ($120
million) every year due to cheaper cotton in the US, according to media reports.
(Note PSV: Based only on China can’t be a TPP member).
A report issued in April by US-based BCG (Boston Consulting Group) says that many emerging
markets that are known for low costs are not cheaper than the US any more. "China's
manufacturing-cost advantage over the US has shrunk to less than 5 percent," reads the report.
(Note PSV: Which "became expensive emerging countries" should that be? Except the now
affluent countries Brunei and Singapore certainly not Vietnam, neither other Indochina / ASEAN
countries).
Alex Narr, CEO of Productionservice-Vietnam (PSV) and “Vietnam Business News - The
Economic Mirror of Indochina” publisher, evaluates this maneuver of the Chinese
corporate leaders as follows:
BCG overlooked to mention the immense economic benefits which are offered by relocation of
production and all kinds of trading in the Indochina countries, especially Vietnam. In this field they
are also unbeatable in the long run. In addition is Vietnam’s political stability. None of Vietnam’s
neighboring countries can offer all these advantages! Vietnam’s site-costs are over 50% lower
than in China without a yearly increase of 10 – 15%. And is still 65% under the costs in the US.
Not to speak of the EU! One of the main reasons why the Obama administration is convinced
inter alia Vietnam to join the TPP is to build with these economic leading climber countries a
strong counterweight and economic independence before China's doorstep for all ASIA. But
mainly to use them as cheap production bases for U.S. entrepreneurs and a supply base for food
and consumer goods of all kinds into the expensive U.S. and Canada region. Only in Cambodia
are the production costs / wages even lower.
That Vietnam is in the top three attractive investment markets in the world is substantiated by
Frontier Strategy Group (FSG) as published in their Markets Sentiment Index in Wall Street
Journal. Nigeria, Argentina and Vietnam are the three leading countries.
Presumably the Chinese company leaders urge a shift from the realm of the center into the USA
not because of the costs. But accompanying this maneuver they elegantly ensure that their
belongings, heaped wealth and all their treasures are outside communist China. By these means
they also manage to circumvent some of the U.S. stay, work and visa requirements, which are
especially difficult for Asian people. Also U.S. citizenship gets so palpable. Dazzled by the glow of
the U.S. cost advantages the Chinese corporate leaders totally forget the many “real true” lowcost advantages of Vietnam and the Indochina countries. Additionally they would still be in the
East and predominantly communist-Governs too.
Against this urge even low costs are powerless. They are even mindless to how Vietnam's
number of ultra-rich has grown 116% within the last 10 years. Already there are over 110 UHNWI
millionaires & billionaires. A UHNWI (ultra-high net worth individuals) is defined as someone with
US$30m or more in net assets excluding their principle residence. And the number is forecast to
rise to 300 over the next decade.
This maneuver reveals that the Chinese corporate leaders and their families have only one
thing in mind – “Go West!” For this, they even buy higher production costs!
Mao Tse Dong great-grandfather, thought-leader revolutionary of the new Chinese way of
thinking revolves around these changes in his crypta. Meanwhile Ho Chi Minh smiles happily
down from heaven to see all his people doing so well in his loved Vietnam.
Dipl.-Ing. Alex Narr, CEO Productionservice-Vietnam (PSV)
V - Foreign investors vital for economy
VNS, July 25 2014
Workers at an electrical motor production line of Mabuchi Motor Viet Nam Company in
Bien Hoa Industrial Park 2, Dong Nai Province. Foreign direct investment (FDI) enterprises
greatly contributed to the country's socio-economic development, officials said. —
VNA/VNS Photo Danh Lam
Viet Nam has committed to ensuring a favourable, stable and safe environment for foreign
investors as they play a key role in the country's import and export activities, a ministry official
has said.
Speaking at a meeting held yesterday in HCM City, Tran Tuan Anh, deputy minister of Industry
and Trade, said foreign direct investment (FDI) enterprises had greatly contributed to the
country's socio-economic development, especially export turnover.
Last year, exports reached US$132 billion, up 15.4 per cent over 2012, of which FDI businesses
accounted for 67 per cent of the country's total export value, Anh said. Leading export items from
FDI firms included mobile phones, computers, textiles, footwear, machinery and spare parts.
Exports reached $70.88 billion in the first half of this year, of which FDI firms accounted for 67.5
per cent of the country's total export value.
To date, there are 16,589 FDI projects in Viet Nam with a total registered capital of $239.7 billion.
South Korea topped the list in terms of number of projects (3,827 projects), followed by Japan
and Taiwan.
Meanwhile, Japan topped the list in terms of capital with $35.7 billion,followed by Singapore and
South Korea, according to the Ministry of Industry and Trade.
Anh said FDI businesses have contributed to the balance of trade, which helped the country
achieve a trade surplus, stabilise foreign exchange and increase foreign currency reserve.
FDI firms achieved a trade surplus of $6.48 billion last year, up from $4.1 billion in 2012.
Also speaking at the event, Tran Thanh Hai, deputy chief of the Import-Export Department under
the Ministry of Industry and Trade, said that FDI firms' export growth had been 30 per cent yearon-year.
Foreign companies have helped to establish export-producing hubs that have adapted to each
region's feature, Hai added. For example, FDI businesses specialise in making mobile phones
and electronics in Bac Ninh and Thai Nguyen provinces and Hai Phong. They make automobiles
and motorbikes in Vinh Phuc Province. And they make electric wires and cables in Dong Nai,
Binh Duong and Long An provinces.
FDI businesses have created more jobs, thus enhancing human resource quality and labour restructuring.
FDI investment has had a positive impact on accelerating industrialisation and modernisation and
integration in the global economy. It has also helped create significant capital for the economy.
Some high-quality services have been created such as tele-communications, international
tourism, finance and banking, insurance, audit, shipping and logistics.
Challenges
Meanwhile, there has been a rapid increase in FDI firms' import turnover: from 43.5 per cent in
2010 to 56.71 per cent last year, said the ministry.
FDI businesses have not yet produced a great deal of high-value added and intensive products in
Viet Nam. They also depend heavily on imported materials. For example, mobile phones,
electronics and automobiles are mainly assembled from imported spare parts; and apparel and
footwear are just CMT (cut-make-trim) from imported materials.
FDI firms have not actually focused on technology transfer as committed. Also they have not
contributed to support industries in Viet Nam, and they have not developed large projects on
agriculture or projects in mountainous areas.
Besides challenges and solutions, the conference also discussed the outlook for FDI activities,
implementation of the export-manufacturing plan, and challenges in policies related to finance
and taxes, exports and imports, and customs procedures.
The event also discussed detailed recommendations on how to increase production and export of
FDI firms. Speakers said the country should focus on producing high-value exports with high
value added. It was also recommended to invest in production chains of materials, including
fabric making, weaving and dying, footwear materials, high-class plastic materials, electronic
components, and motorbike engines. Speakers also recommended that Viet Nam enhance its
value supply chain with companies in support industries. In addition, the country should continue
to transfer technology and improve the local value content of Vietnamese products.
Investment in large-scale agricultural projects and food processing industry in rural and
mountainous areas was also suggested.
There are 101 countries and territories with investment projects in Viet Nam.
V - Gov’t greenlights auto industry plan
VNS/VOV.VN, Jul 22nd, 2014
The Government has approved a new development strategy for the auto industry to enable
it to meet domestic demand and join world production.
Vehicles defined in the strategy include trucks, cars with more than 10 seats, cars with up to nine
seats, and specialised vans. Small and multifunctional vans for agricultural use and serving
customers in rural and mountainous areas will also be encouraged.
The support industry for the sector will use advanced technologies and enter partnerships with
leading world manufacturers to be eligible to supply spare parts for global vehicles.
By 2020, the auto support industry is expected to be able to meet about 35% of the demand for
domestic spare parts and accessories. It should also be able to satisfy more than 65% of local
needs between 2026 and 2035. The strategy also targets the export of about 90,000 made-in-
Vietnam cars by 2035, encouraging the production of environmentally friendly vehicles.
Meanwhile, technology will be upgraded to make products meet international standards. Several
auto industry centres will also be concentrated into one.
The strategy underscores the need to boost linkages and co-operation among auto makers and
assemblers, enterprises engaging in support industry, research and training centres in all
economic sectors.
Stumbling blocks
However, Vietnam’s automotive industry could face major difficulties under commitments to the
ASEAN Free Trade Area (AFTA), which will abolish auto import taxes in 2018. ASEAN + will
waive taxes on car imports between ASEAN member countries, as well as Japan, the Republic of
Korea and China, that are parties to the agreement. The tax cut poses a direct threat to Vietnam’s
fledgling auto industry, which will be unable to compete with the price and quality of imports. This
means the country has only five years to develop its auto industry to compete with an impending
influx of imports after 2018. However, the local auto industry is behind on most of its targets,
according to the Industry and Trade Ministry’s report. While the target for local diesel production
was set to reach 100,000 units by 2010, Truong Hai is the only company to invest in a factory
making diesel engines. It began production in 2014.
As many as 100,000 gearboxes and 100,000 transmission systems were forecast for production
in 2010, but no investment was made. Meanwhile, Vietnam plays host to only 210 auto parts
manufacturers, one fifth of Indonesia’s production base and one fifteenth of Thailand’s. Adding
insult to injury, most of these companies produce simple and low technology products with low
local contents.
Car imports from ASEAN countries in fact already have increased in volume in recent months.
According to the Customs Office, Vietnam imported 4,282 cars worth US$65 million from
ASEAN’s members in the first five months of this year, up 1,104 units in volume and US$12
million in value. Of these, car imports from Thailand and Indonesia accounted for 3,575 units and
707 units, worth US$58.5 million and US$6.8 million, respectively.
V - Rising Costs in China’s Pearl River Delta Causing Manufacturers to
Look to Vietnam
Vietnam Briefing, July 21, 2014
HCMC – China’s Pearl River Delta (PRD), long known as one of the key factory centers for
the world’s manufacturers (particularly those from Hong Kong) has now become too
costly for many companies to stay in the region.
According to a survey conducted by the Chinese Manufacturers’ Association of Hong Kong,
nearly 30 percent of the manufacturers interviewed said they were going to reduce their
investment in the PRD over the next three years.
Additionally, 32 percent of the manufacturers were planning on moving their factories to
areas with lower costs, such as Vietnam.
One of the key concerns for many of the companies in the PRD is the increasingly high wages
needed to pay workers. Labor costs have been rising at between 10 and 15 percent per year.
For many, it is no longer financially feasible to keep the amount of staff on hand that they were
previously able to.
In particular, original equipment manufacturers (OEMs) are seeing their profit margins squeezed.
China is actively pursuing a policy of encouraging the development of value-added industries in
order to keep its economy growing. The OEM industry is a labor intensive but low-profit industry
that is particularly sensitive to adverse changes in wages.
As a result of these changes in the region, the number of businesses that feel optimistic about the
business environment has declined from 50 percent to 43 percent.
The trail leads to Vietnam
Vietnam stands out as one of the key areas that companies from around the world are moving to
as they search for regions with low business costs and good workers. The country is well
positioned for businesses pursuing a China +1 strategy and Vietnam’s membership in the ASEAN
organization means that the country is part of a number of key regional free trade agreements.
Labor costs in Vietnam tend to be about 50 percent those of China and around 40 percent
of those reported in the Philippines and Thailand. The country’s workforce is seeing an
annual increase of 1.5 million people, and its workers are young and, increasingly, highly skilled.
Partly the result of Vietnamese government investment in education and training programs—often
in conjunction with foreign multinationals— over the next decade the country’s workforce is set to
provide highly-skilled workers in a range of industries.
Compared with other developing markets in the region, Vietnam is emerging as the clear leader
in low cost manufacturing and sourcing, with the country’s manufacturing sector now accounting
for 25 percent of Vietnam’s total GDP.
V - Vietnam: Asia’s Best Sourcing Destination
Alberto Vettoretti, July 8, 2014
Why should companies consider Vietnam as their sourcing destination and not
somewhere else in Asia?
There are a number of key advantages that make Vietnam stand out from the rest of Asia. Unlike
many other countries in the region, Vietnam’s government is very stable and committed to seeing
the country grow. Consumer confidence is strong and improving. Additionally, domestic
consumption is predicted to increase 20 percent per year, thus creating a strong local market for
foreign products.
Labor costs are currently 50 percent those of China and around 40 percent of those reported in
Thailand and the Philippines. The country’s workforce is seeing an annual increase of 1.5 million
people, and its workers are young and, increasingly, highly skilled.
The country also has improving infrastructure and remains a low cost manufacturing hub that
provides good financial incentives to foreign companies. An abundance of natural resources is
also helping to fuel the manufacturing boom in the country. Additionally, general costs of doing
business, such as rent and utilities, are among the lowest in Southeast Asia.
Importantly, Vietnam is a member of ASEAN, the Association of Southeast Asian Nations, which
is an incredibly significant market with a combined population of over 600 million people and a
combined GDP of about US$2.1 trillion.
Finally, with its strong connections both in the Asia region and in the West, Vietnam is well
positioned for any company pursuing a China +1 strategy.
What is the importance of Vietnam’s free trade agreements (FTA)?
Vietnam has a number of free trade agreements, but those of particular interest to foreign
companies are its FTA with ASEAN and ASEAN’s FTAs with India and China. This means that if
a company is manufacturing a product in ASEAN that fits into either China or India’s free trade
agreements, the product can be exported to either of those markets duty free.
Vietnam is also finalizing negotiations for an FTA with the EU. Furthermore, when the TransPacific Partnership (TPP) is concluded, the country will have tariff free access to some of the
largest markets in the world, such as the United States. Additionally, when the Regional
Comprehensive Economic Partnership (RCEP) negotiations conclude in 2015, Vietnam and the
ASEAN trade bloc will also be able to participate in free trade with China, India, Japan, South
Korea, Australia and New Zealand. Because of this, the RCEP is set to be a really exciting
opportunity for foreign companies.
The emergence of Vietnam as one of the world’s fastest growing economies is having a
significant impact upon shaping the future of foreign investment into Asia. While in the
mainstream media the country is often overlooked in favor of China business news, Vietnam is
now emerging as a serious alternative to China, and is in fact following roughly the same growth
trajectory that China embarked on twenty years ago. Today, it is Vietnam, not China, which is the
developing market of choice for many investors.
V - TPP provides US firms with huge prospects
VIR, 02/07/2014
Sesto Vecchi, a member of the AmCham Board of
Governors and managing lawyer of Russin & Vecchi, says the Trans-Pacific Partnership
agreement will help Vietnam’s economy develop, providing increased opportunities for
American investors and exporters.
The Trans-Pacific Partnership (TPP) will create a trading bloc that includes Australia, Brunei,
Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.
Although the specific chapters involving, for example, intellectual property, arbitration, human
rights, business with state-owned enterprises, and environmental issues are being negotiated
under a veil of secrecy, one sure effect is that the TPP will remove import tariffs among
participating countries. According to claims by Harvard Professor Robert Lawrence, Vietnam
stands to benefit more than any other country from the TPP.
Countries in the TPP make up at least 40 per cent of the total market for Vietnam’s exports.
The US alone, Vietnam’s largest export market, receives nearly 20 per cent of Vietnam’s
total exports. In 2013, US imports from Vietnam reached nearly $25 billion while US
exports totalled $5 billion.
Some tariffs for Vietnam’s garment exports in other TPP countries are currently as high as 25 per
cent. Vietnamese companies can expect export growth as a result of these significantly reduced
import duties. Professor Lawrence anticipates Vietnamese exports to increase by more than 37
per cent by the year 2025, far more than those of any other TPP member.
Vietnam’s economy is poised to take advantage of the TPP not just in terms of its exports, but it
will also likely experience the largest gains of any other country in terms of GDP. Experts predict
huge GDP increases by 2025. As Vietnam becomes wealthier and industrialised, US exports to
Vietnam should also increase.
The skills of Vietnam’s workforce and the country’s low business costs have already attracted
garment and shoe investments for years. The TPP will allow Vietnam to build on this.
Many investors are pursuing a China Plus One strategy, whereby investments in China are
balanced by investments in Southeast Asia. The TPP will reinforce Vietnam as a natural choice
for investors with such a strategy.
Experts and analysts agree however that Vietnam will have to overcome several challenges.
Although the country is a leading exporter of shoes and garments, its industries are focused
largely on the final stage of production. In order to enjoy the benefits of reduced tariffs, the
imports and materials used in production must come either from Vietnam or from other TPP
countries. Currently, the majority of Vietnam’s inputs come from countries that are not members
of the proposed TPP countries. The country-of-origin requirements are a hurdle but, at the same
time, should encourage the creation of local supply chains.
To take advantage of the reduced tariffs, Vietnamese and foreign investors will have to invest in
Vietnam in order to create the industries necessary for it to meet country-of-origin requirements.
Investors will want to seek opportunities to manufacture products that were previously imported.
Such a strategy will benefit Vietnam in two ways. One is through the creation of broader domestic
industries. Additionally, it will expand Vietnam’s exports so that it can take advantage of the
TPP’s low tariffs.
Vietnam is poised to experience rapid growth under the TPP. The US and Vietnam are likely to
become increasingly significant to each other’s economies as barriers to trade fall and
Vietnamese goods become relatively cheaper in the US. At the same time, as Vietnam’s
economy becomes larger and more sophisticated, the opportunities for American investors and
exporters will also grow.
V - Business outlook optimistic
VietNamNet Bridge, 02/07/2014
Most enterprises operating in Viet Nam were optimistic about the economic recovery,
saying business was bouncing back this year, according to the General Statistics Office
(GSO).
Goods are unloaded at the Vietsopetro Joint Venture 's service port in Ba Ria-Vung Tau
Province. Vietnamese enterprises are gradually stablising production and face fewer
difficulties than in previous years.
This was part of the release by the GSO yesterday (June 29) after conducting a survey over
business trends in 2014 among 7,675 enterprises across the country.
Director of the GSO's Industrial Statistics Department Pham Dinh Thuy said that Vietnamese
enterprises were gradually stablising production and faced fewer difficulties than in previous
years.
From January 2013 to March 2014, 5.6 per cent of enterprises stopped operations, 2.8 per cent
lower than in 2012. In the first half of this year, over 37,300 new enterprises were registered with
total capital of VND230.9 trillion (US$11 billion). This saw a decrease of 4.1 per cent in number
but an increase of 19.3 per cent in capital compared with the same period last year.
According to the survey, over 51 per cent of enterprises said they would maintain the same
labour force as last year, over 38 per cent said they would expand, while only ten per cent said
they might reduce their workforce. Over 60 per cent of enterprises said they planned to maintain
capital scale while 33 per cent said they planned to increase investments. Only 6.2 per cent
revealed they would slash investment.The correlative percentage of last year was 55.3 per cent,
30.8 per cent and 13.9 per cent. Other indicators including expected revenue, profits and export
value also showed a brighter outlook, Thuy said. For example, over 71 per cent expected higher
revenues than last year and 75 per cent expected higher profits.
However, Thuy said that up to 55.8 per cent of enterprises said they did not know or were unable
to assess the demands of foreign markets. "This proves that Vietnamese enterprises are mainly
small and medium-sized, and only a few big enterprises belong to the global production chain,"
Thuy said. "As a result, export enterprises are struggling to access the global market," he said.
In March, more than half of the enterprises said that they had not taken out loans, according to
the survey. Over 70 per cent said they did not need extra credit, and nearly 30 per cent said
procedures to take out bank loans were complicated and time-consuming. Nearly 19 per cent
blamed high interest rates and 14.3 per cent said they did not have the collateral to access loans.
"The percentage is quite high," Thuy said, adding that it might imply that enterprises were
cautious about expanding production or the economic recovery was unsustainable.
GSO General Director Nguyen Bich Lam said that many important indicators in the first half of
this year reflected the rebound from the bottom of Viet Nam's economy. Gross domestic
production GDP in the first six months increased 5.18 per cent compared with the same period
last year, and the consumer price index (CPI) had increased 1.38 per cent compared to last
December.
Viet Nam's industrial production is also improving, with estimated growth of 5.8 per cent seen in
the first half of this year, higher than last year's 5.3 per cent rise. Lam said that if there were no
major changes to the macroeconomy, Viet Nam could reach growth of 5.8 per cent and hold
inflation at 7 per cent as targeted by the National Assembly. The World Bank estimates the
economy will grow 5.4 percent this year, slower than the government target of 5.8 percent, and a
seventh straight year of growth below 7 percent.
V - The Trans-Pacific Partnership agreement will make Vietnam an alluring
destination for US manufacturers.
By Bao Tram, 01/07/2014
Herb Cochran, executive director of the American Chamber
of Commerce in Vietnam said, “The implementation of the Trans-Pacific Partnership (TPP)
agreement – if it is signed – would improve the general business environment in Vietnam and
therefore increase investment in terms of manufacturing from the US.”
The TPP is a high-standard regional free trade agreement under negotiation involving 12
countries including the US and Vietnam. “The TPP will offer duty-free entry into the US market for
products that meet the ‘rules of origin’ requirements. In addition, the TPP agreement will be the
mechanism by which we define the rules of the road, the standards countries should adhere to,
and the norms which create a sense of fairness among economies,” he said.
American firms are eager for Vietnam to sign up to the Trans-Pacific Partnership
In fact, many US companies are increasingly looking for more investment opportunities in
Vietnam. In March, a delegation of the US-ASEAN Business Council, including 33 US-based
companies such as Boeing, Dow Chemical, General Electric, Coca-Cola, PepsiCo, UPS,
ExxonMobil and Hewlett-Packard visited Vietnam to seek more business opportunities in the
country.
Alexander Fedman, president of the US-ASEAN Business Council, said this was the biggest
delegation of the council to ever visit Vietnam. Fedman said this was a reflection of increasing
interest by US investors in Vietnam. Some American companies have been planning to increase
investments in Vietnam. Coca-Cola last month inaugurated four production lines in Hanoi and Ho
Chi Minh City to increase production capacity in the Vietnamese market. This is part of its plan for
investing an additional $300 million in Vietnam from 2012 to 2015.
The US-based multinational oil and gas company ExxonMobil is planning a mega gas
development project, worth $20 billion, on Vietnam’s central coast.
Global chipset manufacturer Intel Corporation recently announced plans to close its factory in
Costa Rica and move part of its production to an existing factory in Ho Chi Minh City.
The US is the seventh biggest foreign investor in Vietnam, with 694 projects as of June 2014. The
combined investment commitment was $10.7 billion, according to the Ministry of Planning and
Investment.
But Cochran said the actual number could be much higher as they may be reported based on a
subsidiary company’s location, such as Singapore or Hong Kong, while the ultimate owner may
be a US company.
Cochran said US companies in Vietnam now faced challenges including availability of raw
materials, free movement of goods in the region and unstable laws and regulations.
However, if the TPP is signed, these issues could be handled, Cochran said. For example, the
TPP chapter on transparency, anti-corruption, and regulatory coherence will promote greater
transparency, participation, and accountability in the development of regulations and other
government decisions. In addition, the chapter on customs, trade facilitation, and rules of origin,
will help cut red tape in trade, which will also reduce costs and increase customs efficiencies,
making it cheaper, easier, and faster for Vietnam businesses to get their products to market.
O - US - ASEAN Partnering and innovating for sustainable agriculture
By Mai Thuy, 01/07/2014
The Development Strategy Institute under the Ministry of
Planning and Investment, US-ASEAN Business Council and Vietnam Business Council for
Sustainable Development today co-organised the “Agri-Vision 2020: Partnering & Innovating For
Sustainable Agriculture” forum which aims to create a multi-stakeholder dialogue towards
Vietnam’s vision for achieving agriculture’s strong growth and sustainability.
Speaker Jesus Madrazo vice president of Corporate Engagement Monsanto
The dialogue focused on addressing challenges through solutions in agriculture policy,
innovation, partnership, with a special reference to issues related to yield, availability and
deployment of agriculture inputs and technologies, effective research and development for farmto-fork linkages, conserving natural resources, improved market linkages, how farming can be
made more remunerative and productive and more.
“Agriculture is contributing to 20 per cent of Vietnam’s GDP, accounting for up to one quarter of
the national exports revenue, and creating jobs for half of the workforce during the past decade.
In Vietnam’s New Vision for Agriculture, the Vietnamese government has set agriculture as a core
driver for economic growth and considers Sustainable Agriculture Development as a strategic
priority,” said Dang Kim Son, general director of the Institute of Policy and Strategy for Agriculture
and Rural Development.
“Currently, state funding for agriculture remains modest while official development assistance
resources are on the decrease in recent years while resources from private sector and individuals
are also low. In these circumstances, the public private partnership (PPP) model can play an
important role as it helps utilise resources from science and technology as well as the
management experience of multi-national groups and corporations,” Son stressed.
Jesus Madrazo, vice president of Corporate Engagement, Monsanto, also member of the USASEAN Business Council said “Innovation has been proved as one of key elements to foster
inclusive growth globally. Improved seeds with plant biotechnologies that produce more using
fewer natural resources and improve farmers’ lives are an important tool in a small number of
sustainable solutions to help farmers feed and clothe the world’s growing population.”
He cited the case of the Philippines where farmers have increased corn yields by 60 per cent
using better seeds and crop management practices and rice farmers had yield increases from 515 per cent after enrolling in the national integrated pest management (IPM) programme.
Similarly, in India farmers have doubled cotton production within a decade using better seeds,
technologies and farming practices.
“The suite of innovation in product and/or partnership options should be as broad as possible.
This must be supported by policy that encourages innovation, competition, and investment in
agriculture; an efficient and predictable regulatory process; and implementation of IP laws, so that
Vietnamese farmers have access to the most innovative products and technologies, compete in
globally, and make Vietnam sustainable in agriculture,” said Madrazo.
It proves that in an ever-connected world facing the challenges of feeding a growing population,
using stagnant or diminishing natural resources, managing the impact of climate change, and
improving inclusive growth, no single institution can deliver maximum social, economic and
environmental impact.
It takes new partnerships between governments, the private sector and civil society groups.
There are significant opportunities for all participants in the food and agriculture ecosystem to
create public-private partnerships to enhance productivity and deliver inclusive green growth.
“As the challenges in agriculture are bigger than any one country, government, company or NGO,
it requires all players working together to help and Monsanto is committed to doing our part.
Monsanto believe ‘Improving Agriculture Improves Lives’ and we are focused on innovation in
products and practices, and partnerships – to enable farmers to improve lives by producing more
and conserving more to achieve sustainable agriculture development in Vietnam,” said Natalie
DiNicola, vice president of Sustainability & Signature Partnerships, Monsanto.
Monsanto has been partnering with Vietnamese farmers for over a decade: in 2013 with 800,000
corn farmers. The company spent more than $1 million onto seed R&D to develop seeds suited to
local agro-climatic conditions to enable farmers to increase corn productivity in line with the
Ministry of Agriculture and Rural Development (MARD) goals.
The company is taking a PPP approach on the Rice-to-Corn Rotation Initiative by the MARD in
Mekong Delta in partnership with farmers, local agriculture and the feed industry authorities.
Monsanto’s better seed, practices & market linkages helped 8,800 farmers in the Mekong Delta
earn over $1 million incremental income and saved 80 per cent of time, cost and labour from
2,200 ha and 4,400 ha rice-to-corn rotation in 2013 and 2014, respectively, according to the
Monsanto executive.
Int'l Cooperation
VN - Israel seek stronger agricultural partnership
VGP, 15/07/2014
VGP - A Viet Nam-Israel Commercial Committee made its debut on July 14 aiming to
support future cooperation between the two sides’ firms.
Co-hosted by the Viet Nam Chamber of Commerce and Industry (VCCI) and the Israeli Embassy
in Viet Nam, the event brought together leading businesses from both countries operating in
agriculture, including Israeli firms from the hi-tech agriculture industry.
Vietnamese Deputy Minister of Agriculture and Rural Development Le Quoc Doanh asserted that
Viet Nam always wants to work together with Israel, especially in agriculture, forestry and fishery.
Doanh said Viet Nam attaches special importance to attracting foreign investment in agriculture,
considering this as a vital leverage to promote the restructuring of its agricultural production and
rural economy.
VCCI Deputy Chairman Doan Duy Khuong said Viet Nam highly values Israel’s agricultural
science and technology development, adding that the two countries’ governments should pay
attention to building compact agreements, while reducing administrative procedures to facilitate
their businesses’ operation.
Israeli Ambassador in Ha Noi Meirav Eilon Shahar revealed that her country has a great interest
in Viet Nam’s agriculture. She said the debut of the Viet Nam-Israel Commercial Committee will
greatly support business partnerships and expressed hope that the two governments will work
closely to create the best possible conditions for their businesses’ growth.
According to VCCI, Viet Nam’s agriculture has grown strongly over the past two decades, making
the country the second largest rice exporter in the world.
Vietnamese agro-forestry and fishery products are now present in 160 countries across the world.
Meanwhile, Israel boasts an advanced agriculture that uses the state-of-the-art technology.
Two-way trade between Viet Nam and Israel in 2012 hit $1.1 billion.- VNA
V - Vietnam - New Destination of Supporting Industries
Nam Pham, July 08, 2014
According to a survey on Japanese overseas investment carried out by JETRO, the
localisation rate of Japanese companies in Vietnam is 27.8 percent while the rate is 50-60
percent in Thailand and China. This suggests that the localisation rate in Vietnam is still
very low. Furthermore, only 45 percent of enterprises are purchasing parts from local
businesses. To win in the international competition to become a future production and
export base, developing supporting industries is indispensable.
Japan’s close cooperation in promoting Vietnam’s supporting industries plays a vital role
in supporting Vietnam to enhance its competitiveness and advantages in international
economic integration.
In a joint statement on the Japan visit by Vietnamese President Truong Tan Sang in March 2014,
Japanese Prime Minister Shinzo Abe announced that Japan will continue to cooperate closely to
implement action plans for the six sectors chosen in the Vietnam Industrialisation Strategy in the
framework of the Vietnam - Japan Cooperation towards 2020, with a vision to 2030, namely
agricultural and aquatic product processing; electronics; automobile and automotive parts;
agricultural machinery; environment industry and energy saving; and shipbuilding. Prime Minister
Shinzo Abe announced that Japan will cooperate to help develop supporting industries in
Vietnam and assist the country to complete industrialisation and modernisation targets by 2020
by enhancing industry policymaking and policy enforcement capacity of Vietnam.
Currently, the Government of Japan has provided some soft loans for Vietnam to develop
specialised industrial zones in Hai Phong, Ba Ria - Vung Tau and Hanoi to better serve the
development of supporting industries. With the primary target of serving Japanese investors, the
Hanoi Southern Supporting Industrial Park (Hanssip), covering 640 ha at present and 2,000 ha in
the future, hired design consultants in accordance with Japanese technologies and standards.
Vietnam - Good choice for supporting industry development
In recent years, Vietnam has become the top choice of global electronics like Intel, Samsung, LG,
Foxconn, HP and Nokia. According to the statistics by the General Department of Vietnam
Customs, the country’s electronics exports expanded 68 percent in 2012 and 35 percent in 2013,
led by telephone exports with respective growth of 85 percent and 67 percent.
In the first quarter of 2014 alone, exports of machines, equipment, tools and spare parts
manufactured in Vietnam reached US$529 million, up 15.61 percent year on year. In particular,
industries supportive of the motorcycle manufacturing industry achieved the greatest success.
The presence of big firms like Honda has exerted a strong pull on parts suppliers to Vietnam to
do business without any support policies from the Government.
Showing in the deep interest of Japanese enterprises to Vietnam at the Vietnam – Japan
Economic Summit in September 2013, Mr Hiratsuka, JETRO Executive Vice President, said:
"The China Plus One policy focuses on labour-intensive industries but, unlike other countries,
Vietnam is a new destination for support industries (automobile, machinery, electronics). At
present, [Japanese] companies are shifting a part of their production networks in China to
Vietnam. Doing so, the effort of integrating into Asian economies is expected to serve as the
leverage for Vietnam to join the Asia supply chain.”
One Japanese company interested in the development of supporting industries in Vietnam is
Sanko Fastem Vietnam. At first, the company supplied high-quality anchoring systems imported
from Thailand and the company is currently studying a plan to build a factory in Vietnam. CEO
Seiji Masuda said Vietnam is still a better option than other countries in the region because of
various reasons such as political stability. There is a tendency of shift production bases from
China to Vietnam; Thailand is still politically unstable, Indonesia’s culture is very different to most
Japanese companies; and Myanmar is still a new market. In recent years, although Vietnam’s
economy increased at a slower pace than previous years, capital investment from Japan to
Vietnam remained very stable.
In need of mutual efforts
The development of support industries aimed to promote supply chains for enterprises is very
important. Vietnam needs specific policies to carry out its missions like setting up joint ventures;
conducting joint research and development on electronics parts; inviting and creating long-term
business environment for training specialists; creating an assured business environment for small
and medium-sized enterprises (SMEs); enhancing the role of the Vietnam Chamber of Commerce
and Industry (VCCI) in connecting Vietnamese and Japanese enterprises; and building a powerful
production system.
To attract more investors from Japan, Mr Sato Motonobu, Chairman of the Japan Business
Association in Vietnam, said in a recent petition sent to the Government of Vietnam that the
Government of Vietnam needs to further improve the investment environment. "Vietnam and
Japan have strategic partner relations and Japanese firms are keen to further expand investment
in Vietnam, and we are willing to invest. Therefore, resolving issues and problems currently facing
Japanese businesses is the fastest way to increase investment."
V- Business forum examines Vietnam-Germany economic ties prospects
26/06/2014
A business forum took place in Berlin, Germany, on
June 25 to look at prospects of the cooperation between Vietnam and Germany as well as
of the European Union (EU) – Vietnam Free Trade Agreement (EVFTA).
Opening the function, Vietnamese Minister of Industry and Trade Vu Huy Hoang said bilateral
relations have been flourishing, especially since the establishment of their strategic partnership in
2011.
From 2000 to 2013, two-way trade turnover jumped by 7.5 times to 7.7 billion USD and stood at
2.34 billion USD in the first four months of 2014.
Germany is currently the largest European trade partner of Vietnam, accounting for 20 percent of
the Southeast Asian country’s total exports to Europe, he noted. In addition, there were nearly
230 German projects in Vietnam with a registered capital of 1.246 billion USD as of the end of
May. There are a lot of good opportunities for the two countries to expand their cooperation,
particularly when Vietnam and EU are working hard to soon conclude EVFTA negotiations in
2014, the minister stressed. During the forum, participants scrutinised opportunities as well as
challenges of investment cooperation and sought ways to boost trade ties. They said the EVFTA
will have major impacts once it takes effect since apart from benefits, the agreement will also
require Vietnamese enterprises to ensure their goods meeting EU’s strict regulations.
The Vietnamese side asked German businesses to consider cooperation in the supply of material
sources and supporting industries to help Vietnam ease its dependence on imported materials.
At the event, Vietnamese officials answered queries about policies on German firms in Vietnam.
Earlier, Minister Hoang had a working session with German Vice Chancellor Sigmar Gabriel, who
is also Minister for Economic Affairs and Energy. They discussed measures to strengthen
bilateral partnership in economics, trade and investment, speed up the progress of EVFTA
negotiations, and prepare for the Asia – Pacific Conference of German Business in Ho Chi Minh
City this November.
Vice Chancellor Sigmar Gabriel affirmed that his country supports the conclusion of EVFTA
negotiations this year. –VNA
Investment
M - More than 3,000 companies registered under foreign investment law
Eleven Myanmar, 19 July 2014
A Vietnamese investment project on Industry (1) Road in Yangon (Photo -EMG)
A total of 3,032 foreign-based companies and more than 70 joint ventures have registered
to open offices and to operate 720 projects under the foreign investment as of June,
according to the Directorate of Investment and Company Administration.
"The investment commission gave approval to mostly garment factories, shoe factories and other
manufacturing businesses. This will create employment opportunities for the citizens. On the
other hand, labour rights should be ensured. It is bad if foreign investors could not ensure labour
rights after getting approval for investment," said an executive from the Union of Myanmar
Federation of Chambers of Commerce and Industry.
The government-approved foreign investment reached over US$46 billion last June. Meanwhile,
the actual foreign investment was recorded at $36 billion.
Energy sector represents the largest amount of foreign investment as it accounts for $19.28
billion. Oil and gas sector follows next with the total foreign investment of $14.37 billion.
V - Terumo BCT opened new factory in Ho Chi Minh City
By Nhu Ngoc, 18/07/2014
Terumo BCT, a global leader in blood component, therapeutic apheresis and cellular
technologies, today opened of its new manufacturing factory near Ho Chi Minh City.
The $100 million manufacturing facility supports the expansion of Terumo BCT’s business
globally. When manufacturing operations begin in early 2015, the new manufacturing facility will
provide increased production capacity.
According to Terumo BCT, the factory in Vietnam will produce whole blood bags and disposables
for automated collections. Once fully staffed, the building is expected to accommodate more than
900 new associates.
Terumo BCT is a global medical device manufacturer headquartered in Lakewood, Colorado.
With the opening of the Vietnam facility Terumo BCT products will be manufactured in seven
countries, including Belgium, China, India, Japan, Northern Ireland, the US and Vietnam.
“This completion of this manufacturing facility represents a continued commitment to our
customers on every continent, by providing global capacity and advancing manufacturing
techniques that will be used in Vietnam to increase product speed to market and enhance our
ability to meet customers’ needs,” said Craig Rinehardt, executive vice president, global
operations, Terumo BCT.
Yutaro Shintaku, president and representative director at Terumo Corporation, said Terumo
BCT’s new Vietnam facility was the most recent example of how Terumo Corporation was
investing in its capabilities globally.
“We are optimistic about the opportunities this new facility provides for us to participate in the
region’s growth and live our mission of contributing to society through healthcare,” he said.
V - HCMC: FDI inflow centers on garment and textile sector
VGP, 16/07/2014
Industrial parks and processing zones in Ho Chi Minh City (HCMC) absorbed nearly US$
265 million of FDI in the first half of 2014, of which 82% came to the garment and textile
sector.
The HCMC Industrial and Export Processing Zone Management Board reported that the city lured
a total of US$ 333.47 million in investment capital in the first six months (meeting over 60% of the
year's target). The figure posted a year-on-year increase of 55.49%.
In the January-June period, domestic investment valued over VND 1.4 trillion, up 1.2% against
the same period last year with 37 newly-licensed projects.
Meanwhile, the city attracted US$ 264.67 million in FDI, representing a year-on-year increase of
80.69% with 19 newly-registered projects and 16 others increasing capital.
Noticeably, the FDI inflow focused on high-class fabric.
The management board also announced that they would establish two industrial
parks specializing in auxiliary industries to serve the mechanic engineering, electronics and IT
industries./.
V - French businesses to increase investment in VN
VGP, 14/07/2014
France is the second European largest investor in Viet Nam, with
many of its businesses continuing to invest in the Southeast Asian country, which is
expected to create a new investment movement.
French Trade Counselor and French agency for international business development (Ubifrance)
Chief Representative in Viet Nam Marc Cagnard revealed that as many as 15 French business
delegations arrived in Viet Nam to seek for investment in 2014.
The French businesses highly valued the potentials of Viet Nam as well as its opportunities to
enhance production and competitiveness in ASEAN, he said.
In June, Schneider Electric Viet Nam officially launched its second factory in Amata Industrial
park in southern Dong Nai Province.
The French investment capital into Viet Nam will surge in the future as the French companies
have strengthened their investment in Viet Nam, especially in retails, tourism, medical equipment,
green technology, telecommunication and new technology, added Mr. Marc Cagnard.
V - Japanese businesses want to invest in Vietnam
Business Times. 14.7.2014
Around 30% of Japanese businesses that are intent on investing overseas consider Vietnam as
their prime choice, according to a recent survey by Japan External Trade Organisation (JETRO).
JETRO reported that it will conduct a fact-finding tour in the near future of key industrial zones in
northern Vietnam, such as Hanoi, Hung Yen, Bac Ninh, Ha Nam, Haiphong and Quang Ninh for
26 Japanese businesses.
JETRO chief representative in Hanoi Atsusuke Kawada said his agency anticipates that the visit
will facilitate Japanese businesses gain a better understanding about the northern region’s
investment environment, encouraging them to invest in the country.
M - Singapore tops FDI list
Eleven Myanmar, 08 July 2014
Foreign investment exceeded US$2 billion in the first five months of the year, with funds
from Singapore accounting for $1.9 billion of the total, the Directorate of Investment and
Companies Administration said.
Investment from Thailand ranked second, at $114 million. Investment from mainland China was
$51 million, while Hong Kong investment totaled $42 million. Japan, Malaysia and South Korea
followed, with $26 million, $24 million and $22 million respectively. Investment from the United
Kingdom was $14 million, while investment from Sweden was $14 million. Investment from
Brunei and Samoa was $3 million each, while investment from India was $0.9 million.
The commodity-production sector received the most investment while the tourism and
communications sectors came second and third. Cumulative foreign investment as of the end of
last year was $44 billion.
Myanmar has, over the past two years, rewritten its foreign investment laws and regulations in
order to attract more investment. It has offered tax holidays and other incentives. This has
prompted a flood of investment into several sectors, including the garment sector, which some
analysts expect to become a regional leader over the next five years. The sector has, however, is
seeing a large number of strikes and other protests by workers who say conditions in factories
are poor and that they cannot survive on their basic wages and are, as a result, forced to work
overtime in order to pay for basic necessities such as food and rent.
V - Foreign textile firms line up for TPP bonanza in Vietnam
VNS, 05/07/2014
Foreign investment in the textile and garment sector is increasing rapidly as international
firms seek to take advantage of the benefits Viet Nam's will potentially derive when the
Trans-Pacific Partnership Agreement comes into being.
A worker at Shinwon Ebenezer, a Korea-invested garment firm in northern Thai Nguyen Province.
Foreign investment in the textile and garment sector is increasing rapidly as firms look to take
advantage of the Trans-Pacific Partnership Agreement when it comes into effect.- VNA/VNS
Photo Trong Dat
Several companies from mainland China, Hongkong, Taiwan, Japan, the US and South Korea
have made large investments in the sector, according to Thoi Bao Tai Chinh (Finance Times)
newspaper.The textile and garment industry in the TPP member countries is expected to benefit
the most from the trade deal. For instance, products made from domestically sourced materials or
imported from other TPP member countries will enjoy zero tariff when exported to signatory
countries. According to Le Tien Truong, vice chairman of the Viet Nam Textile and Apparel
Association, up to 60 per cent of the country's textile and garment exports go to member
countries.
Analysts estimate that once Viet Nam becomes a TPP member the average tax on Vietnamese
garments will come down from the current 17-18 per cent to zero. In that scenario, exports to the
US market could increase three-fold from US$8.6 billion last year to $20 billion in 2020. It is with
an eye on such opportunities that foreign firms are scrambling to invest in the Vietnamese textile
and garment industry.
In June South Korea's Dong-IL Corporation began building a $52 million yarn factory in Dong Nai
Province's Long Thanh District. The plant will have an annual capacity of 9,000 tonnes of fibre
when it opens in mid-2015.
In HCM City, Forever Glorious, a subsidiary of Taiwan's Sheico Group, announced it would set up
a $50 million weaving-dyeing-garment production chain for premium sports garments.
In March city authorities had issued a licence to China's Gain Lucky Limited, a subsidiary of
Shenzhou International, for building a $140 million centre for fashion design and garment
manufacture. The company produces garments for brands like Nike, Adidas, and Puma.
Also in March Hong Kong-based Esqual Group opened a $25 million garment plant in the
northern province of Hoa Binh.
Not long ago the northern Province of Nam Dinh issued an investment license to China's Jiangsu
Yulun Textile Group for a $68 million textile, dyeing, and yarn plant at the Bao Minh Industrial
Zone.
Besides the new investments, many existing foreign garment firms have increased their
investments to expand their activities.
Speaking about the strong foreign investment flow into the sector, Dang Phuong Dung, deputy
secretary of the Viet Nam Textile and Apparel Association, said the chronic bottlenecks in the
weaving and dyeing sectors in terms of intensive investment, experience, technology, and
workforce have been addressed.
According to analysts, the fact that more and more foreign firms are investing in the textile and
garment industry would encourage Viet Nam to quickly wrap up final negotiations for the
agreement.
Becoming a TPP member would offer not only the textile and garment industry more opportunities
to develop but also its support industries and even the economy as a whole, they said, pointing
also to other obvious benefits like employment generation.
V - B. Braun looks to invest extra US$270 million
Business Times, Jul 1st, 2014
Germany’s pharmaceutical company B. Braun
Melsungen AG is planning to invest an additional US$270 million in Vietnam in order to
satisfy increasing healthcare demand across the globe.
According to a local source, B. Braun will expand its investment capital in Vietnam over the
coming seven to nine years. The boost in investment aims to meet a rising healthcare demand in
both Vietnam and abroad. The additional investment will create 1,000 to 1,300 direct jobs, and
spark the creation of 2,000 to 2,500 secondary jobs.
The expansion includes a US$ 45.5 million medical equipment factory which is expected to be
completed within 2014, and another medical equipment plant worth US$97 million which is
expected to become operational in 2016.
Moreover, B. Bruan will also build a new pharmaceutical factory worth US$66.3 million. This
factory plans to cover 10,000 squares metres and is expected to start operating in the fourth
quarter of 2015. All the projects will be implemented in Thanh Oai district, Hanoi, where the
German healthcare company is already running an intravenous set production factory.
“B. Braun has commenced procedures to seek construction permits and land acquisition for new
projects,” said the source.
The investment underlines Vietnam’s importance in its manufacturing strategy, and follows its
initial successes in the country. The expanded investment is part of the firm’s wider US$4 billion
expansion plans and is aimed primarily at building or expanding production facilities in Germany
and around the globe.
B. Braun has maintained a presence in Vietnam since the early 1990s in the form of a joint
venture. In 1992, the company initially opened a representative office in Ho Chi Minh City,
followed by other offices in Hanoi, Danang, Can Tho and Hue. B. Braun set up its first
Vietnamese production facility, an IV solutions plant in Hanoi, in 1996. Today, B. Braun Vietnam
is a wholly-owned subsidiary of the B. Braun achieved US$75 million in revenue and created
around 1,000 jobs in Hanoi, reported the source.
B. Braun is not the only European pharmaceutical company to have increased investment capital
in Vietnam. Last year, France’s biggest drug maker Sanofi announced it would start building a
US$75 million plant in Vietnam to satisfy the burgeoning healthcare demand in Asia.
V - Foreign investors pump millions of USD into tires
Vietnam Plus, 30/06/2014
Foreign tire manufacturers have flocked to Vietnam with plans to turn the country into
their production base as well as a new consumption market, the English language news
website VietNamNet Bridge reported.
According to tirebusiness.com, the Vietnamese market’s scale is rather small, with a value of 800
million USD. That’s miniscule compared with the 235 billion USD world market. However, this
does not mean that the market will remain small forever. Quite the opposite: foreign investors are
seeing great opportunities to make profits in the Vietnamese market.
Analysts say domestic manufacturers currently hold 40 percent of market share, while foreigners
hold 60 percent. That larger share includes the most lucrative market segment, passenger car
tires, which have selling prices much higher than other products because of the high technologies
required.
According to Huynh Tan Vuong, Marketing Director of Kumho Tire Vietnam, the Vietnamese
market has great potentials, with an annual growth rate of 20-25 percent. The promising market
has attracted the world’s leading tire manufacturers: Bridgestone, Michelin, Kumho, Yokohama
and Goodyear. The Republic of Korea’s Kumho recently announced its plan to pump an
additional 100 million USD into Vietnam to expand its tire factory in Binh Duong province, which
had initial funding of 200 million USD. Once the expanded investment, slated for 2015, is
completed, the factory will churn out 5.6 million products a year, nearly double its current output
of 3 million.
The Japanese Bridgestone has received an investment license to increase the investment capital
of its factory in the northern city of Hai Phong from 574 million USD to 1.2 billion USD. The
factory has an expected capacity of 9 million products per annum, or 9 times bigger than
Vietnam’s Casumina’s Radial, to be reached by 2017. Meanwhile, the first commercial batches of
goods are expected to hit the market by June.
The most outstanding feature of Kumho and Bridgestone-made tires is that they are radial tires
made with modern technologies. Domestic manufacturers make mostly bias tires, using Chinese
technologies.
The two manufacturers not only have been making money with passenger car tires, but also
trying to make tires for pick-ups and vans, a market segment long considered the “playing field” of
domestic enterprises. A source said that the products now amount to 23 percent of Kumho’s total
products.
As the domestic market remains small, all the tire manufacturers have been boosting export to
earn more money.
Vuong of Kumho Tire Vietnam said more than 95 percent of the company’s products are exported
to the Northern American markets, the Middle East, Asia and Australia. The same percentage for
export is expected by the managers of Bridgestone’s factory in Hai Phong city.
Vietnam, with its cheap labour force, abundant rubber supply and zero export tariff (versus
8 percent in China) provides great advantages to the tire industry.
The Southern Rubber Industry Corporation (CSM) in the south, the Da Nang Rubber JSC (DRC)
in the central region, and Sao Vang Rubber JSC (SRC) in the north are the three biggest
Vietnamese manufacturers in the field.-VNA
V - Denmark eyes green energy in Vietnam
Vietnam News, 27/06/2014
Denmark is seeking measures to boost its investment in green energy in
Vietnam as only a few of local businesses are operating in this field, Danish Ambassador John
Nielsen told reporters at a conference in Ho Chi Minh City on June 27.
He said the price of electricity in Vietnam is too low in comparison with the world’s average level
so it is difficult for foreign investors to fix a price that is suitable to the market. He suggested the
Vietnamese Government expand policies to lure foreign investors in the realm.
Turbines of the Bac Lieu wind power plant (Photo: VNA)
Denmark has facilitated 300 pilot projects for over 150 long-term Vietnamese partners since its
74-million-USD business support programme was launched in Vietnam in 1997.
Vietnam is one of the countries successfully implementing the programme, which focuses on
renewable energy, energy efficiency, environmental sanitation, waste treatment, food, healthcare,
and education, he said, adding that Denmark will continue the programme in the country with an
annual aid of between 5-7 million USD.
The ambassador further said that his country will offer official development assistance (ODA)
totalling 90 million USD for Vietnam in the 2014-2015 period.
At present, more than 130 Danish businesses are investing in Vietnam , mainly in information
technology, food, and pharmaceuticals.-VNA
Finance & Banking
O - The euro-zone economy
Jul 19th 2014 | LISBON
Losing the plot. Industrial production makes up only a fifth of
the euro-zone economy.
AS IN a complex film script, at least two storylines have been in play for the euro zone this year.
One is brightly lit, featuring the revival of both consumer and business confidence, the return of
investors to the troubled economies in peripheral Europe and the continuing recovery from the
double-dip recession. The other is sombre, focusing on the weakness of that upturn, the onset of
disturbingly low inflation and the continuing fragility of over-indebted economies and their banks.
The past few days have brought a reminder that this second story is not yet fully told.
A crisis at Banco Espírito Santo (BES), one of Portugal’s biggest banks, prompted a plunge in
Portugal’s stockmarket and lesser tumbles elsewhere. Angela Merkel, Germany’s chancellor, said
that the episode illustrated how swiftly market nerves could return and how fragile the
construction of the euro remained.
Renewed worries about banks have coincided with some gloomy economic numbers. Industrial
production fell by 1.1% in May compared with April, leaving it up only 0.5% over the past year
(see chart). The decline may have been exaggerated by temporary factors, such as workers
taking additional time off after public holidays, but industrial output is still 13% lower than at its
peak in April 2008, before the financial crisis. Business surveys have also been signalling a
cooling in the euro zone since April. Investors’ confidence in the German economy,
Europe’s powerhouse, is waning, according to the ZEW index.
Industrial production makes up only a fifth of the euro-zone economy. But its poor
performance in May makes it likelier that the overall recovery, which started in the spring of 2013,
remained feeble in the second quarter. To date, GDP growth has averaged only 0.2% a quarter
(an annualised rate of 0.9%).
Another worry about the recovery is that it has been so uneven. What little growth there was in
the first quarter was driven by German output, which expanded sharply. The French economy,
the second-biggest in the euro area, stagnated while Italy’s, the third-biggest, contracted.
Unemployment is still disturbingly high in much of the euro zone. Though the overall jobless rate
has fallen since its peak last year it remained at 11.6% of the labour force in May. That average
disguises the fact that in Germany the rate was 5.1% compared with 12.6% in Italy and 25.1% in
Spain.
Against this background, it is unsurprising that inflation is stuck at just 0.5%. Although the
European Central Bank (ECB) took steps to counter “lowflation” in early June, the worry is that it
has still not done enough. In a survey of the euro-zone economy published on July 14th the IMF
urged the ECB to adopt quantitative easing—creating money to buy assets including sovereign
bonds—if inflation remains too low.
Lowflation represents a particular threat to highly indebted countries like Portugal. The
Portuguese example had been one of the brightest exhibits in the sunny storyline as yields on
government debt plummeted and the country emerged from its bail-out in May. But this month
brought shadows. The setback to industry was gravest in Portugal, where production fell by 3.6%
compared with April, leaving it only 0.3% higher than a year earlier. Moreover, GDP contracted in
the first quarter of 2014 after staging a recovery during 2013.
However, it is alarm about the viability of BES that really rattled the equity markets, in Portugal
and beyond. The problem seems to lie in the complex ladder of holding companies above the
bank. In June BES disclosed accounting irregularities and an “extremely negative” financial
situation at one of these companies, which revealed this month that it had missed payments on
some of its debt.
The central bank insists that BES, which was the only big bank in Portugal not to have been
bailed out during the euro crisis, has enough capital to withstand its parents’ problems. It has
forced the bank’s founding family to make way for new managers with no connections to the
family or the bank’s previous board. After losing two-thirds of their value in a month, BES’s shares
recovered slightly this week.
Yet the problems at BES underscore the significance of the ECB’s root-and-branch investigation
of bank balance-sheets. Worries about what may be lurking on them have contributed to the
credit drought that has enfeebled the economies of southern Europe. Suspicion that banks lack
sufficient capital to absorb souring debts remains widespread. The ECB must allay it when it
publishes its findings this autumn if the sunny storyline is to prevail over the film noir.
V - Standard & Poor's rates Vietnam for stability
Vietnam News, 01/07/2014
Vietnam's improving external liquidity and moderate foreign debt position supports its
creditworthiness
Standard & Poor's affirmed its ‘BB-' long-term and ‘B' short-term sovereign credit ratings on
Vietnam late last week, with the outlook on the long-term rating being stable.
The rating agency said that although the stabilisation measures undertaken over the past two
years have dampened growth, they have also restored macroeconomic stability, resulting in
relatively low and stable inflation, higher confidence in the local currency, and a much improved
external liquidity.
Vietnam's improving external liquidity and moderate foreign debt position supports its
creditworthiness.
The sovereign's external borrowings remain modest with low-cost debt and long maturity, and
S&P projects that the gross external debt will decline to about 30 percent of the GDP in the next
three years, while the gross external financing needs will remain in a comfortable range of
between 80 and 90 percent of the sum of the current account receipts and usable reserves in this
period.
"The favourable outlook for Vietnam's external profile is based on our expectation of little or no
commercial external borrowing by the sovereign, along with continuing overall balance-ofpayment surpluses, driven by net inflows of foreign direct investments of about 4 percent of the
GDP and a dynamic export sector," S&P said.
It said that Vietnam's growth potential is robust, given an export manufacturing sector that is welldiversified and increasingly oriented toward higher value-added goods, a rising share of services
and manufacturing in economic output, and the growth of the private sector. Exports are also
expected to get a further boost from recent and pending free-trade agreements, the agency said.
The stable outlook on the ratings reflects S&P's expectation that over the next 12 to 18 months,
Vietnam's policy stance will ensure macroeconomic stability, cementing the economic
improvements and gains in policy credibility. The outlook also incorporates S&P's expectations
that the Government's key reform objectives targeting the banking sector and State-owned
enterprises will continue, and the risks and inefficiencies posed by these sectors will reduce, S&P
said.
"We may raise the ratings if there are indications that Vietnam is able to generate per capita real
GDP growth of more than 5.5 percent in the next five to 10 years without causing macroeconomic
imbalances. We may also raise the ratings on signs of improved institutional and governance
effectiveness, likely based on greater macroeconomic policy consistency and tangible progress in
structural reforms," it said.-VNA
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V - 99.9% of Vietnamese enterprises are super small
VCCI, S. Tung,
Of the more than 500,000 operating enterprises in Vietnam, up to 95-96% are small and
super-small ones. If household-scaled businesses are added to the statistics, the
percentage of small, super-small and micro-enterprises may account for 99.9%.
Speaking at the dialogue between Prime Minister Nguyen Tan Dung and the business community
on Monday in Hanoi, President of the Vietnam Chamber of Commerce and Industry (VCCI), Mr.
Vu Tien Loc, said that of over 500,000 enterprises currently operating in Vietnam, 3,000 are
state-owned enterprises, nearly 8,000 are enterprises with foreign investment and the remaining
majority (97-98%) are private firms.
According to Loc, despite nearly 30 years of innovation with booming business opportunities,
particularly in the areas of natural resource development, real estate, securities and banking,
Vietnam has not yet had a generation of big companies and big brands that can compete with
international rivals.
Vietnam also lacks mid-sized businesses, ones which are able to access new technology and
become partners of transnational corporations and engage in the global value chain.
Loc added that of more than 500,000 operating businesses, large enterprises account for only
about 2% and the ratio is similar for midsize enterprises. The remaining 95-96% of firms are small
and super-small enterprises. Micro-enterprises (with less than 10 employees) account for 66-
67%. If household-sized businesses are taken into account, the percentage of micro-enterprises
may account for 99.9%, Loc said.
Given the problems that the business community is facing, VCCI gathered and submitted a report
to the Prime Minister with over 300 specific recommendations. Among the petitions, the business
community asked the government to continue innovating the legal system on business to
guarantee property rights, business freedom and equal competition of businesses.
V - India – leading pharmaceuticals supplier to Vietnam
Business Times, Jul 25th, 2014
India shipped pharmaceuticals worth US$131 million to Vietnam in the first half of 2014, a
13.54% rise year-on-year, making it the largest supplier of the products to the country.
The Vietnam Industry and Trade Information Center (VITIC) reports that India made up 13.6% of
the total US$963.3 million worth of pharmaceuticals Vietnam imported in the past six months.
France came in second with US$106.6 million in value, down 17.33%, and Germany stood
third with US$95.9 million, up 35.18%.
Overall, top ten pharmaceutical exporters to Vietnam were India, France, Germany, the Republic
of Korea, the UK, Italy, Switzerland, the US, Belgium and Thailand, accounting for 69.5% of the
total value (US$670.1 million).
V - Impressive Domestic Trade
VCCI, Huong Ly, July 24, 2014
The Ministry of Industry and Trade of Vietnam said retail revenue was estimated at
VND1,438,962 billion in the first six months of 2014, representing a year on year rise of
10.73 percent. The consumer price index (CPI) in June 2014 rose 0.3 percent over May.
V - Developing Safe, Sustainable Electronics Industry
VCCI, D.N, July 24, 2014
The information technology industry made revenue of US$25.5 billion in 2012, up 86.3
percent year on year. IT export turnover reached US$20 billion, up 82 percent over 2011 and
equal to 17.5 percent of the country’s total exports. However, environmental pollution related to
this industry is a significant challenge to the environment and public health.
Currently, electronic wastes are being recycled or sent to landfill in case of uselessness.
However, recycling technology is too backward. In order to develop a safe, sustainable electronic
industry, the Prime Minister issued the Decision No. 50/2013 dated August 9, 2013 on collection
and treatment of wastes. This decision defines responsibilities, rights, collection and treatment of
waste products in Vietnam. This decision is applicable to manufacturers, importers, consumers,
organisations and individuals involved in collection and treatment of waste products in Vietnam.
From early 2015, waste products like batteries, electronic devices, consumer and industrial
electrical equipment, chemicals used in industry, agriculture, fisheries, human medicines,
lubricants and greases will be collected and processed. In 2016, photocopiers, televisions,
refrigerators, air conditioners, washing machines and discarded tires must be recovered. In 2018,
outdated transport vehicles like motorcycles, mopeds and cars will be collected and treated by
authorities.
V - Marks & Spencer to enter VN
VGP, 21/07/2014
VGP - Marks & Spencer (M&S), one of the largest British retail clothing and food
companies has announced its plan to set foot on Vietnamese market.
M&S is to open a 1200 sqm flagship store at Vincom Center in Dong Khoi, District 1 in Ho Chi
Minh City this summer, offering products across womenswear, menswear and lingerie as well as
accessories, footwear and sleepwear.
With access to prime locations at key shopping malls across Viet Nam and unrivalled local
knowledge, Central Group is the ideal partner for us to open our new stores across the country,
said Bruce Findlay, regional director for Asia at Marks & Spencer.
Chief Executive Officer of the Central Group revealed that the purchasing power of a nation with
over 90 million people is targeted by retails investors, adding that increases in foreign investment
in Viet Nam have promoted economic growth and consumption.
V - Vietnam Leather - Footwear: Active in Global Economic Integration
Vietnam Business Forum, July 21, 2014
Trans-Pacific Strategic Partnership Agreement (TPP) and several free trade agreements are
expected to be signed soon and they will provide huge opportunities for the breakthrough
development of Vietnamese leather - footwear industry. However, to seize these opportunities,
businesses need to identify their market positions and products as well as satisfy requirements
for quality and model.
Vietnam Business Forum interviewed Dr Doan Duy Khuong, Vice President of the Vietnam
Chamber of Commerce and Industry (VCCI), on this issue. Thu Ha reports.
Vietnam has been gradually deepening its integration into the world economy. The WTO entry in
2007 has brought a lot of remarkable achievements in promoting economic growth, especially
international trade. Currently, Vietnam is pushing up negotiations of some trade agreements,
including the Trans-Pacific Strategic Partnership Agreement (TPP), the Vietnam - EU Free Trade
Agreement and the Free Trade Agreement between Vietnam and the Customs Union (Russia,
Belarus and Kazakhstan). The effect of these trade agreements is forecast to be greater than the
WTO entry, particularly for export-oriented industries like leather - footwear. Trade agreements,
including TPP, will actually open up golden opportunities and provide new boosts for Vietnamese
leather, footwear and handbag companies to develop in both scale and quality. When TPP takes
effect, exports and imports among member countries will enjoy preferential tariffs, which may be
reduced to zero in the long term. This advantage will help Vietnamese footwear edge up its
competitiveness against products from some rivals like China and India. They are the worldleading exporters of leather, footwear and bags but they are not TPP members.
The FTAs between Vietnam and the EU and between Vietnam and the Russia Customs of
Union - Belarus - Kazakhstan, which are under negotiation, also present great opportunities.
These are important trading partners and traditional markets of Vietnam and the big importers of
Vietnamese leather and footwear. Compared with other exporters in the region, Vietnam holds
considerable advantage in footwear export to the EU market. The FTA with the EU will
substantially support Vietnam. If the FTA negotiations with the EU and the Customs Union of
Russia - Belarus - Kazakhstan are concluded, the Vietnamese leather - footwear industry will
have competitive advantages over other countries.
Besides, many foreign parts manufacturers will locate their projects in Vietnam and this is another
plus for the leather - footwear industry. US and EU footwear and handbag firms will relocate their
production bases from China to Vietnam to enjoy TPP treatments. If Vietnam misses this
tremendous opportunity, it will be unable to address its inherent weakness: Reliance on foreign
inputs.
For years, leather, footwear and handbag are key exports of Vietnam. In 2013, this sector fetched
US$10.32 billion from exports, up 18 percent over 2012 and exceeding the full-year target by 3
percent. Strong growths are expected when the above FTAs take effect. Nevertheless, in reality,
Vietnamese leather - footwear enterprises still have a lot of weakness and face with numerous
difficulties.
The biggest challenge for Vietnamese leather, footwear and handbag firms is how to approach
TPP countries when inputs are mainly imported from non-TPP members. According to statistics,
the localisation ratio of this sector is just 50 - 55 percent and the rest is offset by imports.
The sector will encounter difficulties in production mode because many companies are offshore
contractors for foreign partners. Many take on low-value stages in the global supply chain.
In addition, they will see difficulties with non-tariff barriers because their competitiveness,
technical competence and designing capacity are weak while importers always demand strict
quality, delivery, technical specifications. To penetrate into developed markets like the US and
Japan, they cannot limit themselves with average products but they must look to higher grade
product lines.
Besides, they lack experience in building independent brands. This is very important when
branding and intellectual property are of deep concern as now.
V - Truck market sees steady growth
Business Times. 15.7.2014
The domestic truck market has seen significant growth since the Ministry of Transport’s
decision to increase control and oversight of overloaded vehicles and ensure the safety of
all drivers on the roads.
The ministry in April said overloaded trucks were a major cause of traffic accidents and road
damage.The policy appears to have been successful, as the number of traffic accidents since
April has decreased and the transport sector seems to be more competitive, especially the truck
market.According to independent market watchdogs, the tightened controls on overloaded trucks
have caused a slower flow of goods, particularly at local ports.
An official of the transport ministry, who declined to be named, said that as many as 60 per cent
of container trucks owned by local firms are no longer eligible to carry containers, under the new
policy. Most of the owners of the trucks had initially registered their vehicles to carry far less
weight than the actual load of their containers. With such a change, transport firms have had to
buy or arrange to use other trucks suitable for their goods.
Huynh Trung Thanh, director of a transportation cooperative in Thu Duc District, said: “We have
had to lower the load of many vehicles to avoid being punished, so our carrying capacity fell by
half. To meet our regular customers’ demand, we are going to buy between five and 10 container
trucks.”
Dinh Nam Dinh, chairman of the HCM City Cargo Transportation Association, also said that many
local transport companies would have to purchase more vehicles if they wanted to keep their
customers. “Some companies will even have to double their number of vehicles to maintain their
carrying capacity. The vehicles that they want to buy now will be those with high carrying capacity
such as container trucks, heavy-duty trucks and medium-duty trucks,” Dinh said.
Sale increase
According to several truck trading companies in HCM City, the number of both domestically
assembled and imported trucks sold recently has increased significantly, particularly eight- and
10-tonne vehicles.
A representative of the Nam Viet Motor Company, a distributor of Japan’s Hyundai Motor
Company in Viet Nam, said in May the number of Hyundai trucks sold was up 89 per cent
compared with the same period last year. “In the first five months of the year, the company
achieved a 130 per cent growth in selling trucks,” he said. In addition to an increase in the
number of sold trucks, the domestic market has also seen a sharp price surge of vehicles of this
kind, analysts said.
For instance, the new price of heavy trucks is hundreds of millions of dong higher than it was
before, while the price of container vehicles has also gone up by VND300 to 400 million
(US$14,120-18,800).
Anticipating that the demand for trucks would rise following the ministry’s decision in April, many
major truck trading companies such as Thaco, Hyundai, Hino Motors Vietnam and Isuzu Vietnam
began to make preparations to supply the market. However, according to market watchdogs, both
manufacturers and importers have not been able to meet demand due to the sudden increase.
Tran Tuan Hung, director of a transport company in Tan Binh, said he wanted to buy five
medium-duty trucks that were domestically assembled but he was told that he would have to wait
at least six months. “I now have to buy imported vehicles, but I don’t know if I can receive them
immediately or not,” Hung said. — VNS
V - “China+1” policy helps major players ease reliance on China
Business Times, 11.7.2014
Vietnamese textile and garment companies have been pursuing the “China+1” policy in an effort
to escape reliance on China as its biggest material supplier. “China+1” is the strategy followed by
Japanese investors over the last many years as well.
Vietnamese enterprises which want to take initiative in the textile and garment material supply
may want to follow Japan’s lead. At least five major players in the textile and garment sector,
Thanh Cong, Garmex Saigon, Gia Dinh, Saigon Garment 2 and Saigon Garment 3, have vowed
to “take actions” to escape the reliance on China.
Thanh Cong Textile & Garment Company is one of a few companies that will be able to enjoy
preferential export tariffs of zero percent when Vietnam becomes a member of the Trans Pacific
Partnership Agreement (TPP). The agreement, with the “yarn forward” principle, will only grant
preferential tariffs to those companies which make products with materials from TPP-member
countries.
Thanh Cong in Vietnam is known as one of two companies that have closed-end production lines.
The only material it has to import is cotton to make fibre. Fifty percent of the cotton needed for
Thanh Cong is imported from the US, while the remaining comes from other TPP-member
countries. “We are sure we can take the initiative in the material supply,” said Phan Thi Hue, chair
of Thanh Cong.
The other four, Gia Dinh, Saigon 2, Saigon 3 and Garmex Saigon, still have been importing
materials in large quantities from China. However, they have been trying to cut down the
percentage of China-made content in their products.
Garmex Saigon, which only outsources for foreign partners, is now focusing on making products
for export under the FOB (free on board) model.
A senior executive of Garmex Saigon said that in 2011 and earlier years, Garmex had to import
70 percent of materials needed, while the proportion fell to 50 percent and it will go down further
in the future. “Two years ago, Garmex Saigon successfully persuaded an US partner to accept
products with Vietnamese-made fabric,” said Le Quang Hung, Chair of Garmex Saigon. “Since
then, we have bought one million square meters of fabric from domestic sources,” Hung added.
Gia Dinh Textile & Garment has also succeeded with the FOB-model. It has poured VND400
billion into a textile factory, which is expected to provide cotton fiber to domestic enterprises that
make shirts and sport T-shirts.
Meanwhile, Saigon 2 and Saigon 3 have been the pioneers in seeking domestic fabric supply
sources.
The former now buys fabric from several Japanese invested enterprises in Vung Tau City, while
the latter has successfully reduced Chinese-made material content to 20 percent.
However, analysts noted that it would be foolhardy to expect domestic textile and garment
enterprises to escape reliance on China overnight. Vietnam can only do this step by step.
NCDT
M - Vietnam’s biggest pharmaceutical company to invest in Myanmar
Business Times. 11.7.2014
Hau Giang Pharmaceutical Company (DHG) is negotiating with a local company in Myanmar to
open a joint venture project, according to Bloomberg news service. DHG said it would spend
VND91 billion ($4.5 million) on this project to produce medicine. The construction of the plant
could begin next year if the two parties reach an agreement. DHG’s Chair Pham Thi Nga
confirmed the possible investment, but noted that the company was still in the survey period. “We
have just conducted a survey to understand market demand and especially the law in Myanmar,”
she said. Lacking information, Nga said she could not say much about the expected profits from
this market. However, DHG’s moves are said to be consistent with its goal of increasing export
revenue by 25% within five years.
This also takes place in the context of Vietnam authorities who are conducting a number of
measures to tighten the sale of drugs without a prescription from a doctor, one of the causes of
increasing resistance to antibiotics. “We are preparing for the reduction of antibiotic sales due to
tighter control,” Nga told Bloomberg.
In Vietnam, 78% of antibiotics are sold through drugstores without prescriptions from doctors,
according to a report by FPT Securities Co. issued in January. Last year, 41% of DHG revenue
came from antibiotics. The company also sells analgesics, nutritional food, respiratory,
cardiovascular and digestive medicine and skincare products.
“Myanmar is similar to Vietnam 10-15 years ago, but they can grow faster. Myanmar does not
have many pharmaceutical companies. Therefore, they have given some special incentives for
pharmaceutical companies. We will gain an advantage if we cooperate with a local company,”
said Nga.
According to the International Monetary Fund (IMF), Myanmar’s population is about 65 million
compared to about 90 million in Vietnam.
Over the past decade, Myanmar’s average economic growth was 8.7%, raising the country’s
GDP per capita in 2013 to $869, compared to 6.4% and $1,902 in Vietnam.
DHG shares have risen by 15% this year, raising capital value to VND8.6 trillion ($1 =
VND21,000). Its revenue rose 20% to VND3.53 trillion last year. DHG is not Vietnam’s first
business to seek investment in Myanmar. Many large enterprises such as Hoang Anh Gia Lai
Group, FPT and the Bank for Investment & Development of Vietnam (BIDV) have invested in this
market.
V - Beer makers keep barrels rolling
Business Times, 10.7.2014
Breweries are running at full throttle as the Vietnamese thirst continues to expand. Both domestic
and foreign companies realise the potential for sales in a nation that has gained a reputation for
beer drinking. All are raising production to handle the thirst.
Hirofumi Kishi, general director of Sapporo Viet Nam, told Tuoi Tre newspaper his company had
approved a plan to raise production from 40 million to 100 million litres a year. The company will
install more equipment to raise capacity and develop distribution strategy. It is focusing on HCM
City and other southern provinces before expanding to Ha Noi. Sapporo started doing business in
the country in 2010 when it set up a joint venture with the Viet Nam National Tobacco
Corporation. In 2011, it began operations in southern Long An Province, focusing on sales in
HCM City.
The Saigon Beer-Alcohol-Beverage JSC, commonly known as Sabeco, recently started work on
the Sai Gon-Kien Giang brewery project in the Mekong Delta province of Kien Giang. The
US$28.4 million plant, expected to produce 50 million litres of beer annually, follows the
groundbreaking ceremony for a similar project in Can Tho. In HCM City, where Sabeco is
headquartered, the company also plans to increase the capacity of the Sai Gon-Cu Chi Beer
Factory. Upgrading will enable its 24 Vietnamese breweries to produce more than two billion litres
of beer a year against the present 1.8 billion litres. This will make the company the leading beer
supplier in Viet Nam. With the new expansion, Sabeco is expected to reach its milestone to
produce two million litres of beer a year, given its current capacity of 1.8 million litres.
Heineken is now produced by Viet Nam Brewery Limited (VBL), a joint venture between Viet Nam
Satra and Singapore-based Asia Pacific
Breweries Ltd (APBL). The company wants to raise production capacity to 420 million litres a year
from the present 150 million litres. Dutch beer was the first major foreign beer brand to enter the
country and it still dominates sales of foreign brands.
An 86 million euro (US$117 million) beer factory built by Slovakian BTG Holdings and
capable of producing 190 million litres annually will make its debut next year.
Meanwhile, the American Anheuser-Busch InBev, the world’s largest brewer, is expected to start
brewing here by the end of the year with a factory capable of producing 100 million litres of beer
annually.
The market survey company Eurowatch reported that each Vietnamese adult consumed an
average of 32 litres, making Viet Nam the third-largest per capita consumer in Asia, just behind
China and Japan, and Southeast Asia’s biggest beer drinking country.
A recent report by the Viet Nam Beer, Alcohol and Beverage Association said the country
consumed more than 3 billion litres of beer last year.
Nguyen Van Viet, chairman of Viet Nam Beer and Beverage Association (VBA) said beer
consumption in Viet Nam this year was expected to increase by 7 per cent above the 3 billion
litres consumed last year.
Beer makers were in fierce competition to keep market share because of difficulties in the
economy, Viet said, adding that they would consider themselves lucky if they continued to grow
by about 7 per cent.
Pham Thi Hong Hanh, general director of Sabeco, said the pressure from foreign brands was
truly challenging.
Although foreign beer makers had smaller market shares, their products had much higher
commercial values.
Sabeco is up against foreign brands such as Heineken, Sapporo, Tiger and Budweiser which
have higher trade value. The capacity of foreign production may be lower than Sabeco’s, but their
revenues are sometimes higher.
In 2012, Sabeco spent VND500 billion ($22.7 million) on marketing activities. In 2013, this
reached about VND1 trillion ($45 million).
However, experts said it is still lagging behind amounts spent by other foreign beer makers.
VNS/VNN
V- Foreign Firms Dominate Vietnam’s Advertising Market
Vietnam briefing, July 10, 2014
HCMC – Foreign advertising companies have taken control of the Vietnamese market, reaping
millions of dollars in revenue every year. According to statistics, over 90 percent of advertising
revenue in Vietnam is now in the hands of foreign advertising firms. These firms have been on a
buying spree of local companies and now own around 80 percent of Vietnam’s advertising firms.
Foreign firms began snapping up local firms in 2008, and now, the ten largest Vietnamese
advertising firms have all been acquired. Local firms often have little choice but to sell since they
struggle to compete against the foreign firms, which have much more experience and deeper
cash reserves.
The Omnicom Group, from the United States, has taken over three of the top ten Vietnamese
companies. In 2008, they bought BCI Brandcare, followed by the purchase of Biz Solutions by
Omnicom’s subsidiary, TBWA Group – this established the Biz Tequila joint venture. TBWA also
bought XPR Campaigns and established Campaign Solutions, which has emerged as one of the
top international agencies in Vietnam.
Around the same time in 2008, GroupM, a subsidiary of the U.S. firm WPP, bought 30 percent of
the Dat Viet Group VAC. WPP is also the largest partner of Smart Media JSC, a company
founded by CNPT, Vietnam Television, Mobifone, VNPost and Goldsun.
In 2012, the world’s largest PR firm Edelman bought the Vietnamese AVC Communication and
created the Vietnamese firm AVC Edelman. Richard Edelman, the president and CEO of
Edelman, was quoted in the media as saying that multinational corporations operating in Vietnam
had sought their services and a merger with a local firm had proved to be the quickest way to
enter the market.
The Vietnamese PR industry continues to have roughly 200 wholly Vietnamese-owned
companies, all of which are struggling to remain financially sound in the face of foreign
competition.
Nguyen Quoc Bao, director of the Ho Chi Minh City-based Awareness ID Public Relations, says
that his company receives offers to sell shares to foreign companies almost every year.
While the status of local firms tends to go up when they are acquired by foreign companies,
Nguyen says that “We want to maintain an independent Vietnamese PR firm that survives without
relying on foreign resources… There are many ways to raise our status, such as by making use
of our deep understanding of the local market, constantly training our staff and specializing our
services.”
However, other Vietnamese working in the local advertising industry feel that mergers are good
for business since they can raise the profile of local brands and help bring them up to
international standards.
There is much work to be done if Vietnam’s local advertising firms wish to seriously compete with
the foreign firms. According to Do Kim Dung, director of the Vietnam Advertising Research and
Training Institute, Vietnamese advertising firms need to become more professional and improve
their attitudes towards customer service so that they can compete with the international firms. He
added that advertisers must put gaining the trust of their customers in front of everything else,
including market share.
V - Big retailers flock to VN
VGP, 09/07/2014
Several leading regional retailers and famous beverage, fast food and fashion band names
have rashly penetrated into and enlarged their market shares in Viet Nam.
At the beginning of 2014, Japanese corporate retail group AEON officially marked its presence
in Viet Nam with the AEON Mall Tan Phu Celadon shopping mall. As scheduled, the retailer
would expand its foothold in Binh Duong province in Q4.
Viet Nam's first McDonald's restaurant was officially opened in early 2014. The chain joined other
Western fast food chains already present in the country such as Subway, Burger King and KFC,
catering to an increasingly brand conscious local middle class.
Starbucks Coffee Company, the largest coffee chain in the world, intended to open its eighth
store in Q3.
American ice cream Dairy Queen made debut in January, 2014 at District 1 in HCMC and
plans to open around 60 stores within the next five years.
Marc Townsend, CEO of CBRE Viet Nam forecast that the inflow of international retailers would
surge sharply in the coming time.
In 2015, Viet Nam will open its retail market in accordance with its commitments to the World
Trade Organization (WTO). This is expected to open the door for more foreign retailers to join the
domestic market./.
V - Leather and Footwear Development - Focus on Increased Localisation
VCCI, July 04, 2014
Vietnam is one of the 10 biggest exporters of footwear in the world and the second biggest
exporter to the US market, its leather - footwear industry is still prone to instability
He pointed out that the instability is resulted from the low localisation ratio of the leather and
footwear sector, which is currently accounting for only 40-45 percent (mainly sewing threads and
shoe soles) while the most important materials - tanned leather and artificial leather, are
imported. Not only input materials, the industry is short of technical expertise and design capacity
to independently develop domestic brands and production lines. Most footwear technologies and
production methods in Vietnam are transferred by foreign companies. Besides, although labour
costs are low, most Vietnamese workers in the sector have poor skills and professional
knowledge, thus resulting relatively low labour productivity.
Kiet said the Vietnamese leather - footwear industry is now best at production organisation stage,
which includes production lines, human resources and production technologies. “If we fail to
increase added value and output in three other stages (product design and research, production
capacity generation, and product distribution), the leather - footwear industry will not be able to
grow up in the next five years,” he added.
The leather - footwear is an important economic sector as it is a big forex earner for Vietnam.
According to statistics, the sector now has 812 active businesses and employs over 624,000
workers.
The sector saw an average annual growth of 10-15 percent from 2010 to 2013. In 2013, it earned
US$10 billion from exports, accounting for 8 percent of the country’s total exports. In the first four
months of 2014, it raked in export turnover of US$3.717 billion. It was expected to earn US$14
billion from exports in 2014.
However, according to experts, the Vietnamese leather - footwear sector also has huge
potential, particularly when Vietnam is expected to conclude the Trans-Pacific Partnership
(TPP) Agreement this year and the Free Trade Agreement with the Customs Union of
Russia - Belarus - Kazakhstan is under good negotiation. Ms Pham Thi Thu Hang, General
Secretary of VCCI, said Vietnam’s footwear is very competitive in price on global markets
and is currently present in most major markets like North America, the EU and Japan.
Mr Phan Chi Dung, Director of the Department of Light Industries under the Ministry of Industry
and Trade, said, to grasp the opportunity when Vietnam officially signs free trade agreements
(FTAs), many foreign investors are promoting investment in footwear material production, thus
opening up a bright prospect for this industry. He said "Although they do not come in a greater
number, foreign investors, typical of rich experience and strong financial resources, are rapidly
carrying out their investment projects to enjoy investment incentives and increased profit."
According to the Vietnam leather - footwear development master plan to 2020, with a vision to
2025, leather - footwear will become a key export. The sector targets annual growth at 9.4
percent in the 2011 - 2015 and at 8.8 percent in the 2016 - 2020 period while raising the
localisation ratio to 60-65 percent in 2015 and 75-80 percent in 2020.
Thanh Thao
V - Robins Department Store officially coming to Ho Chi Minh City
Source VOV, 04/07/2014
Thailand’s leading retailer Central Group plans to open its Robins Department Store at Ho Chi
Minh City-based Crescent Mall in November, 2014.
After the first launch in Hanoi’s Royal City, Robins Department Store, is gaining great favours
from Hanoi people for the good products, affordable prices and attractive marketing programs as
well as meeting the needs of a wide range of consumer lifestyles.
This second Robins Department Store in Vietnam will spread over four floors covering more than
12,000 square meters. The store designed by the Dubai-based Zebra Group, will bring a new
shopping experience to all valued customers. It plans to offer thousands of quality products
carefully selected from leading local and international brands along with marketing programs that
focus on interests and lifestyles of local consumers. Customers can also enjoy benefits from
The1Card, Thailand’s number 1 loyalty program initiated by Central Group. The campaign has a
great success in Robins Hanoi, Vietnam since launched in March, 2014.
V - Ford Vietnam churns out first EcoSport
02/07/2014
Ford Vietnam last week started rolling out its all-new EcoSport urban SUV at the
company’s Hai Duong assembly plant.
Ford Vietnam launched its EcoSport production line in late June. Ford Vietnam is the fifth
plant in the world to construct the vehicle, joining India, China, Brazil, and Thailand,
reinforcing the strategic role of Vietnam in the region.
“The all-new EcoSport is the next proof point of our ongoing product-led transformation and
aggressive growth plan for Vietnam,” said Jesus Metelo Arias, Ford Vietnam’s managing director.
“Designed to break through the boundaries of today’s compact car and SUV segment, the all new
EcoSport sets a completely new standard for design, technology and value for money.”
Built on Ford’s global B-segment chassis, the EcoSport is an alternative to a compact car with
room for five adults and storage, but also versatility and smart connectivity that will appeal to
lifestyle customers who are independent and love exploring the world around them. The all-new
EcoSport’s high driving position, rugged capability, superior fuel economy and convenient
features make it just the right vehicle for both city streets and mountain roads.
Powered by Ford’s global 1.5-litre Ti-VCT engine mated to Ford’s six-speed automatic
transmission or five-speed manual, the EcoSport will be available at Ford showrooms nationwide
starting in July. Two weeks ago Ford Vietnam announced a record performance for May with
overall retail sales rising 51 per cent against last May’s 932 units. This month was also the bestever sales month for the Transit model, and also saw continued high demand for both the Ranger
and Fiesta nameplates. “We’re continuing to make significant progress on our One Ford plan, as
strong sales across our lineup reflect the widening consumer appeal of the Ford brand in Vietnam
for our segment-leading vehicles,” said Arias.
Ford also maintained its lead in the pickup truck segment in May, as the Ranger delivered retail
sales that increased 130 per cent to 308 units. So far this year, total sales of the Ranger have
jumped 164 per cent to 1,348 units.
V - VN companies listed in Asia Pacific’s top 500 retailers
VGP By Thuy Dung, 01/07/2014
Five Vietnamese companies have been listed among top 500 retailers in the Asia Pacific
in 2014, according to the Retail Asia Publishing Pte and the Euromonitor (Asia) Pte Ltd.
They include Saigon Union of Trading Cooperatives, with a total retail revenue of US$1,105
million in 2013, Big C chains (under Casino Guichard Perrachon SA) with US$534 million,
Nguyen Kim Trading JSC with US$490 million, Saigon Jewelry Co.Ltd with US$487 million and
Mobile World JSC with US$395 million.
The five companies are mentioned, by the groups, in top ten Vietnamese retailers in 2014
together with Phu Nhuan Jewelry JSC (US$225 million), Pico JSC (US$156 million), Parkson
Commercial Centre under Lion Group (US$133 million), Viet Thong A Import Export Trading
Production Corp (US$102 million) and Tran Anh Digital World JSC (US$95 million).
C - New Registered Businesses Increase by 33 Percent
By Kang Sothear | June 25, 2014
The number of newly registered businesses in Cambodia increased 33 percent between January
and June this year compared to the same time period last year, according to the latest figures
from the Ministry of Commerce released Tuesday.
The total number of new businesses increased from 1,401 to 1,868 between January 1 and June
15, the figures show.
Locally owned businesses increased from 910 to 1,214, while foreign-owned companies
increased from 490 to 654. The majority of the foreign-owned companies came from South
Korea, China, Japan, Thailand and Malaysia.
The ministry’s data does not say what kinds of businesses registered.
Ken Ratha, spokesman for the Ministry of Commerce, said the increase was because of the
country’s investment law and location in the region.
“Businesspeople are increasingly interested in Cambodia’s investment law and its connectivity
between the country and other countries in the region, which allows for easy market access,” he
said.
“Foreign businesspeople are more interested in the general business environment in Cambodia
even though the political situation is not yet stable.”
V - Non-alcoholic beverage market takes off
Business Times, Jun 23rd, 2014
The Vietnamese non-alcoholic beverage industry was once described as a sleeping
princess who would awaken soon, and that finally has come true.
The “big guys” in the beverage industry just needed a short time since the day they jumped into
the market to make a wide range of products, including bottled mineral water, green tea, bottled
instant coffee, fruit juice, nutritious drinks, tonics and carbonated drinks.
In 2006, “Tra Xanh Khong Do” (Green Tea) was the only product of this kind available in the
market, which brought Tan Hiep Phat, the brand’s owner, big profits. However, just several years
later, the green tea market witnessed a boom with the appearance big brands such as Real Leaf
(Coca Cola), Vfresh (Vinamilk), Lipton Pure Green (Pepsi), C2 (URC) and Thien Tra Vedan
(Vedan).
The presence of the big names in the market is seen as evidence of the attractiveness of the
market. A report from Vinaresearch, a market survey firm, showed that 86 percent of polled
consumers said they used nutritious drinks for additional vitamins and other nutrients
Euromonitor, also a market survey firm, pointed out that a Pepsi or Coca Cola carbonated drink
can is priced at VND5,000, while a green tea or fruit juice can is sold at VND7,000. This showed
that Vietnamese consumers are willing to pay more money for the products that are good for their
health.
The fast growing market, plus the high margin of profit, have prompted many investors, who were
never interested in the beverage industry before, to jump on the bandwagon. T&T Group, for
example, inaugurated a factory making collagen for skin care in late 2013.
The increasingly high demand in the market has helped manufacturers get rich overnight. The
Quang Hanh Natural Mineral Plant, for example, earns revenue of VND30 billion a month from its
salted lemon juice – Faith – in Hanoi. A senior executive of the company said that Quang Hanh
has more than 1,000 agents and distributors in the north, only after four years of market
development, and that it doesn’t need to look for more agents in Hanoi.
Tran Minh Khoa, a distributor of the C2 brand green tea in the districts of Binh Tan and Binh
Chanh in HCM City, has revealed that he sold VND12 billion worth of products in the last spell of
hot weather.
The beverage market growth in Vietnam has been backed by the growing tendency of fast food
consumption. Euromonitor reported that the fast food market’s growth rate was 17 percent in
2013, or 15 percent higher than 2012. A 7 percent growth rate is expected to be maintained in the
next five years.
Meanwhile, Vietinbank Securities Company analysts estimate that the total revenue of the nonalcoholic beverage market reached VND11.87 trillion in 2013 with 2,083 million liters of products
sold. The market growth is expected to slow down from 2014-2018 to 14.2 percent from 19.35
percent in the 2009-2013 period. There are 135 beverage manufacturers, domestic and foreign,
in Vietnam.
V - Luxury car dealers report steady sales despite economic slump
VNS 2.Q.2014
Luxury car sales in Viet Nam seem to be unaffected by the struggling economy, with most
brands reporting better business in the country.
An Audi distributor in Viet Nam said with the increasing demand for luxury cars, the company
expects to double its target of its best-selling model for this year. “We plan to order 20 units of
Audi A8L by the end of this year, but with this momentum, we will double the import volume,” said
Tran Tan Trung, director of Lien A Quoc Te Company, an official Audi distributor in Viet Nam.
With a retail price of VND4.8 billion (US$228,000), the car is a rival to Mercedes-Benz S500,
BMW 750Li and Lexus LS 460. But Audi A8L is not the only best-selling model from the Audi
family. The brand boasts 40 per cent sales surge since the beginning of this year. Last year Audi
sold 600 units in Viet Nam, up 80 per cent year on year.
Toyota’s luxury brand Lexus, which recently came to Viet Nam, hopes to sell 400 units in the first
year of setting up its official distributorship in the country. According to market insiders, most of
Lexus’ models in Viet Nam are experiencing stock-out status as buyers have to wait for a few
months to receive their orders.
Even Mercedes Benz Viet Nam, which has a factory in HCM City for over a decade, is facing a
stock out. The company, in the first quarter sold 521 units, of which 60 are premium S class
models. In addition, it already sold 10 units of luxury four-wheel-drive G-class model at a price of
VND7 billion ($330,000) each, after just months of entering Viet Nam. In 2013, Mercedes-Benz
saw a 70 per cent growth year on year.
One of the keys to the recent growth in sales has been the reduced car registration fees in Ha Noi
and HCM City. This reduction has caused a significant decrease in the cost of luxury cars.
According to Duong Dinh Giam, director of Viet Nam’s Industrial Policy and Strategy Institute, Viet
Nam is expected to go through a period of “automobilisation” once annual per capita income rises
above US$3,000. “Viet Nam will soon reach a tipping point – incomes are seeing strong growth
year over year.” he added. According to the IMF, during 2013, per capita income was $1,901.
Meanwhile, famed Italian supercar maker Lamborghini said it will open its first showroom in Ha
Noi later this month and it will initially sell one model to start with – the Lamborghini Aventador LP
700-4.
Other luxury car brands, such as Bentley and Rolls-Royce, have also entered the market in the
past year. Previous brands that were available for sale include Mercedes, Lexus, Audi and
Porsche.
According to the Custom Office, in the past few years between 3,000 and 5,000 luxury
automobiles have been sold in Viet Nam annually. In 2013, there was a marked increase in the
import of cars. As many as 34,500 cars, valued at $709 million, were imported, marking an
increase of 25.9 per cent in volume and 15.2 per cent in value, year-on-year. Meanwhile, car
imports in the first five months jumped to a record 20,000 units worth $383 million, up 52.1 per
cent in volume and 45.8 per cent in value year-on-year. Most of the car imports were luxury
sedans and sport utility vehicles, according to the Custom Office.
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V - Viet Nam's trade with Asia-Pacific up nearly 11%
VGP, By Thuy Dung, 24/07/2014
VGP – Trade between Viet Nam and the Asia-Pacific reached US$86 billion in the first half,
up 10.7% against the same period last year and accounting for 61.8% of the total.
According to the Asia-Pacific Market Department under the Ministry of Industry and Trade (MoIT),
Viet Nam earned US$32.26 billion from exporting to the Asia Pacific, a year-on-year increase of
12% and making up 46% of the year’s plan.
Viet Nam’s exports to Northeast Asia, Southeast Asia and Chinese-speaking market witnessed
increases of 9.8%, 3% and 20.8%, reaching US$10.2 billion, US$9.4 billion and US$10.6 billion,
respectively.
Exports to the Pacific Ocean, including Australia and New Zealand, saw a surge of 21.3%
to US$1.98 billion.
Viet Nam’s imports from the Asia-Pacific are estimated at US$53.8 billion in the reviewed period,
up 10.1% and accounting for 78.31% of the total.
The figure included US$25.4 billion worth of goods from Chinese-speaking market, up
16%; US$16.1 billion from Northeast Asia, up 4.5%, US$11 billion from Southeast Asia, up 4.3%
and US$1.2 billion from the Pacific Ocean, up 28.9%.
Border trade value between the two countries jumped 13% to US$2.61 billion in the first six
months of the year, according to the Viet Nam-China border trade steering board.
During the period, border trade, with monthly growth averaging 4%, accounted for over 24% of
the total bilateral trade turnover between the two countries and resulted in a surplus of US$800
million.
V - Footwear, handbags exports up 19.2%
VGP, By Thuy Dung, 17/07/2014
Footwear and handbags earned US$940 million from exports in June, bringing their total
export value in the first half to US$5.7 billion, a year-on-year increase of 19.2%, according
to the Viet Nam Leather and Footwear Association.
The export turnover of footwear and handbags witnessed increases of 17.8% and 40.7%,
respectively, from the same period last year.
Viet Nam is now listed among the five largest footwear exporters in the world. The US and
the EU are the second largest importer of the products of Viet Nam, after China.
The export turnover in other potential markets such as Australia, Russia, the Middle East and
Latin America saw a remarkable growth over the past few years.
The country has advantages in exporting to the EU as the General System of Preferences (GSP)
Regulations which aims at facilitating the EU market access for goods from developing countries,
including Viet Nam, came into effect from January 1st , 2014.
Currently, a lot of foreign investors are seeking investment opportunities and expanding orders in
Viet Nam such as the Target Sourcing Services, Dansu and Lancaster/Sequoia Paris.
Other international trade agreements signed by the end of this year and 2015 will open more
chances of getting firmer niches abroad for Viet Nam’s footwear and handbags.
V - VN-EU FTA will benefit Vietnamese firms: experts
Vietnam News, 15.7.2014
The Vietnam and EU Free Trade Agreement (FTA) would benefit
Vietnamese enterprises, according to economic experts.
The FTA will enable the country to make annual gains of about $1.5 billion by 2020 when
export tariffs are cut.
They said the FTA with the EU would improve Viet Nam's business climate thanks to a
transparent legal framework after the negotiations. The FTA with the EU would conform to World
Trade Organisation (WTO) standards. Viet Nam had made strong commitments to improve many
domestic policies and regulations, said former minister of Industry and Trade Truong Dinh Tuyen
in the Vietnam Economic Times. The country's export turnover to the EU market wass predicted
to increase by four per cent annually after the FTA is finalised.
The import-export tariff on most Vietnamese products exported to the EU would gradually
drop to zero, creating an opportunity for Vietnamese enterprises.
However, to be able to enjoy the advantages of the FTA, domestic businesses needed to be fully
aware of technical barriers to trade imposed by the EU relating to quality and points of origin for
products. Le Trieu Dung , Deputy Director General of the Multilateral Trade Policy Department
under the Ministry of Industry and Trade, said local producers needed to increase investment to
improve product quality. The improvement of production would also have a positive effect in the
long term.
According to Tran Ngoc Quan Deputy Director of the Ministry of Industry and Trade's European
Market Department, Vietnamese businesses should make every effort to raise product quality to
meet technical standards required by the EU market to raise their competitiveness and boost
export turnover.
Export potential
According to the General Statistics Office (GSO), in the first six months, the EU has taken the
lead in Viet Nam's export markets with a total import turnover of $13.1 billion, an increase of 12.8
per cent over the same period last year. Viet Nam mainly exports apparel, footwear, coffee and
furniture and seafood to the EU, while the EU exports machinery, drugs, equipment, vehicles and
raw materials for apparel, fertiliser and steel.
Le Ky Anh , an expert with the EU delegation to Viet Nam, said exporters would have more
chances to export seafood, coffee and rice products after the FTA was signed.
Ngo Van Sinh, a senior official from the Agro-Forestry Fisheries Quality (NAFIQAD), said the EU
was an important market for Viet Nam's fisheries sector. Since 2006, EU has surpassed the US
and Japan to become Viet Nam's largest seafood export market.
The eighth round of FTA negotiation concluded on June 28, and both sides are now planning to
finish the negotiations this October. The FTA will enable the country to make annual gains of
about $1.5 billion by 2020 when export tariffs are cut. The estimated increase in gross domestic
product is about 2-2.5 per cent, and wages are estimated to improve by around 5 per cent.
Likewise, imports from the EU will increase by 25-35 per cent, reflecting the greater
reduction in tariffs.
V - Dong Nai sees 15.8 percent rise in exports
Vietnam News, 02/07/2014 |
Dong Tien garment-textile company of southern Dong Nai province
The southern province of Dong Nai earned 6.053 billion USD from exports in the first half of this
year, a 15.8 percent rise year-on-year, fulfilling 50.8 percent of its yearly target.
Of the total, the foreign-invested sector contributed 5.112 billion USD, up 17.5 percent over the
same period last year.
Bo Ngoc Thu, head of the provincial Department of Planning and Investment, attributed the
results to the stable production by foreign invested enterprises, including many newly-established
ones which were kept busy with orders. At the same time, the province also worked hard to ease
difficulties for local firms in terms of market and capital, while joining many trade promotion
events abroad, especially in Dubai , he said.
Particularly, good signs were seen in the export of agricultural products. According to the Dong
Nai Statistics Office, the province shipped abroad nearly 130,000 tonnes of coffee for 276 million
USD in the six months, up 33 percent in volume and 30.3 percent in value. Meanwhile, it also
earned 70 million USD from exporting about 11,000 tonnes cashew nut, a rise of 12.6 percent in
volume.
Local agricultural firms held that the export of farm produce enjoyed favourable conditions in both
output and price, together with rising demand from a number of markets, especially those in
Africa and Middle East .
In order to reach the target of 12 billion USD in exports for this year, Dong Nai will help local
enterprises expand their market by connecting them with foreign importers and sending them to
trade and investment promotions and trade fairs abroad, including those in Germany, Myanmar,
the Republic of Korea and Japan, said Thu.-VNA
Enterprises
L - Auto industry globalization: Tier I production reaches Laos
By Stephen Moore, July 23rd, 2014
Japanese Tier I Toyota Boshoku (Kariya) is perhaps the first auto-related company to
invest in a production facility in the impoverished Southeast Asian country of Laos. In
April this year, the company started the manufacture of automobile seat covers in the Lao
People's Democratic Republic. Production capacity is 200,000 units/year.
Toyota Boshoku Lao has commenced production of automotive seat covers
The Lao facility of the Toyota group company is supporting the automobile seat production of the
company in Thailand. The seat covers will be supplied to Toyota Boshoku's Thai production
base.
According to Toyota Boshoku, Laos is conveniently located for distribution to Thailand, which is a
major regional automobile production hub. This is primarily on account of the East-West
Economic Corridor, an economic development program initiated in order to promote development
and integration of four Southeast Asian countries, namely: Myanmar, Thailand, Laos and
Vietnam. This corridor is centered on a 1,450-km road linking Myanmar in the west with Vietnam
in the east.
Further, Laos is said to possess stable electricity supply and other infrastructure. In addition,
because of the similarities between the Thai and Lao languages, Thai managers will be able to
provide work-site instruction and training. Savannakhet Province where the plant is located is
adjacent to the Thai border.
A third of the population of Laos live below the international poverty line, meaning living on less
than US$1.25 per day, so any investment in industry is surely a bonus for this developing
economy. It remains to be seen if further auto industry investment will come to this Laotian
province, as well as to emerging Myanmar.
C - Aeon Mall Offers Sneak Peek Before Opening
By Kang Sothear and Joshua Wilwohl | June 21, 2014
Aeon Mall opened its doors on Friday for an invite-only preview to its four-story shopping
center in Phnom Penh, which cost an estimated $205 million.
Patrons walk out of Aeon Mall on Friday evening following a preview of the four-story shopping
center. (Siv Channa/The Cambodia Daily)
At the mall Friday, hundreds of people previewed some of the 190 shops that will open at the end
of the month, including Philippine-based clothing store Penshoppe and British-owned shoe store
Clarks. At Penshoppe, dozens of people streamed in and out, some purchasing items while
others perused the offerings. “I feel so strange and it is much bigger than other malls I used to go
to,” said Tep Ratha, 27, outside Penshoppe.
When opened, the mall will include outlets for clothing brands such as Levis, Mango and Puma. It
also will include high-end shops such as the British salon chain Toni & Guy. There will also be a
1,000-square-meter ice rink, a Hang Meas TV studio that will broadcast live shows, food courts
and a seven-screen Cineplex complete with bowling lanes. On Friday, there were still signs that
the mall required some finishing touches. The walkways smelled of paint and were strewn with
scaffolding, dozens of shops remained boarded up and workers in construction hats dotted the
crowd, hanging signs and welding metal.
“We open officially June 30,” said one Aeon Mall representative who declined to give his name
because media were not invited to Friday’s event. The representative said, however, that the mall
would open for customers June 28 for a three-day sale, which Aeon has advertised for the past
two weeks in local newspapers and at universities.
Oum Roath Kema, 43, attended Friday’s preview with her relatives. She said the mall is a step up
from other shopping centers in the country. “It is very nice and more modern than others in the
city; even its [restrooms] are like ones in other countries,” she said. “I see that our country has
developed a lot and this mall creates a lot of jobs for our young people, especially the educated. I
also have a relative now working here too,” she said.
Particular Reports
V & C - The Mixture of Communists and Capitalists is Vietnam's and
Cambodia's Essence
PSV, 29.8.2014
From where all comes from? From WTO and all kind of
political door opener. Mainly through foreign investors which use the immense economic benefits
of local production, import and export of all kind of trading in the Indochina countrys, especially
Vietnam. In this field they unbeatable also in the long run. In addition comes Vietnam's political
stability. Site and production-costs in Vietnam and Cambodia are over 50% lower then in China
and without a yearly Increasing by 10-15%. And still 65% under the costs in U.S. Not to speak of
the EU! One of the main reason why the Obama adminstration convinced inter alia Vietnam to
join the TPP to build with this economic leading climber countrys a strong counterweight and
economic independence before China's doorstep for all ASIA. But Mainly use as cheap
production base for U.S. entrepreneurs and supply base for food and consumer goods of all kinds
into the expensive U.S. and Canada region. Only the production costs / wages are in Cambodia
even lower.
Additionally Vietnam is in the top three attractive investment markets in the world as Frontier
Strategy Group (FSG) published In Their Markets Sentiment Index on Wall Street Journal.
Nigeria, Argentina and Vietnam are the three leading countries.
When real estate prices, they still in the basement, begin to recover then Vietnam's number of
ultra-rich will continue to rise. Now are over 110 UHNWI millionaires & billionaires. A UHNWI
(ultra high net worth individuals) is defined someone with U.S. $ 30 million or more in net assets
excluding their principle residence there until now. And the number is forecast to rise to 300 over
the next decade. Cambodia has a very similar structure of millionaires just all a few sizes smaller
and more secret.
This show and consumer hunger is underlined by Rolls-Royce, one of the world's most lavish car
manufacturers and distributors, which anounced its official entry into the Cambodian market.
Opening a 465-square-meter showroom in Phnom Penh, Veal Vong commune's. The price of a
car Reaches $ 450,000-about 175 times the country's per capita annual income-company
executives said. They fielded enough interest in the luxury vehicles to justify opening in one of the
world's poorest countries.
Cham Prasidh, senior minister and minister of industry and handicrafts said Monday did luxury
products in Cambodia were on the rise and that there was enough room in the market for RollsRoyce to sell its cars. "There's a lot of okhnas (new-riche) now in Cambodia who have money to
buy this cars," he said. "Thank you for making this car for sale for Cambodians, and I hope more
Cambodians can afford the cars." Chinese media reported Monday did Mr. Prasidh estimated
there were more than 10 Rolls-Royce cars in Cambodia.
First Lamborghini showroom to be opened next month in Hanoi from CT Wearnes Vietnam Co.
Ltd. for the local market with a showroom at Interserco Trade Center in Hanoi. In previous years,
foreign auto makers brought expensive cars such as Lexus, Audi and Porsche to Vietnam. More
luxury car brands, including Rolls-Royce and Bentley, have entered this market since the end of
last year.
Rising demand of high-income people for expensive cars has encouraged more major car
manufacturers of the world to have their showrooms opened in the country. Potential buyers of
Lexus, Audi, Porsche, Rolls-Royce, Bentley and Lamborghini in Vietnam are singers, actors and
“business people of all couleur”
Before customers had to order the luxury cars through local car importers and had to pay high
maintenance for service before the showrooms of prosthesis brands were inaugurated in
Vietnam.
Earlier, Bentley Motors Bentley announced Hanoi as its first dealership in Vietnam and opening of
the first showroom for this luxury car brand.
This business sidelight of show- and consumer-hunger demonstrates the mixture of
communists and capitalists makes in Vietnam and Cambodia all possible. Assuming the
factory for the world runs on. But their low prices ensure this further
Dipl.-Ing. Alex Narr, CEO Productionservice-Vietnam
V – Siemens Healthcare Day aimed at improving nation’s health
By Thanh Tung, 21/07/2014
On the occasions of the second annual Siemens
Healthcare Day, held in Ho Chi Minh City last week, the company’s vice president and
head of Healthcare Sector Fabrice Leguet provided VIR with some information on the
performance of the health sector.
Can you give a brief introduction about Siemens healthcare Vietnam?
Siemens Healthcare Sector was established in Vietnam in 1993. Over more than two decades,
we have provided a broad spectrum of imaging and laboratory diagnostics systems and solutions
to numerous hospitals and clinics throughout the country.
Siemens offers our customers products and solutions for the entire range of patient care, from
prevention and early detection to diagnosis, treatment and aftercare. By helping to optimise
clinical workflows for the most common diseases, we also make healthcare faster, better and
more cost-effective.
We are the number one supplier of diagnostics solutions in the Vietnamese market, combining
the strengths of both In Vitro and Imaging diagnostics.
What is your view of Vietnam’s healthcare industry?
Vietnam’s healthcare industry has been developing very fast and the trend will continue. There
are more and more hospitals and clinics being equipped with state-of-the-art technology which
support early detection of threatening diseases and enables doctors to provide more timely and
accurate diagnosis and treatment, thus saving hundreds of thousands of lives each year. The
demand for high quality patient care services is on the rise.
There will be more five-star hospitals in Vietnam like Vinmec in the future and Vietnamese people
won’t have to travel to neighbouring countries like Singapore or Thailand to receive world-class
healthcare services at a very high cost.
The Vietnamese government also supports the industry’s development with no import tariffs on
medical equipment.
However, Vietnam’s healthcare industry is facing many big challenges such as its fast growing
population, increasing chronic diseases, overloaded infrastructure and lack of qualified medical
staff, and funding shortages in particular. Increasing population means increasing demand for
healthcare services and pressure on infrastructure. Increasing chronic diseases means more
complex and costly treatments. And yet, most hospitals in Vietnam are currently subsidised by
the government, which has a limited budget.
So what can Siemens do to help Vietnam tackle these challenges?
We can provide our support according to three pillars - innovation, service and education and
knowledge transfer.
Regarding innovation, we aim to provide Vietnamese healthcare providers with the most
innovative medical technologies to properly screen, diagnose, and treat patients. This means the
most advanced applications being used in leading hospitals, teaching and research centres, and
also cost-efficient and high-quality solutions for routine clinical applications in smaller institutions.
As for service, this is of utmost importance as all of our systems need to be properly maintained
to limit downtime and keep performance at the highest level. For some patients, availability of
equipment is a question of life or death. For investors, it’s a question of getting the most out of
their investment. We invest heavily in people and technical training and we are expanding our
global state-of-the-art service processes in Vietnam. Our service team was awarded The Best
Service Team Award in ASEAN.
Vis à vis education and knowledge transfer; we as a company feel responsible for doing our part
in bringing incremental knowledge to the healthcare community: knowledge to the ‘users’ with
intensive application and technical training, in order to make sure our technology is used to its full
potential. We have organised many clinical workshops and symposiums like Down Syndrome
Screening, Women’s Health or Oncology where we invite high-profile speakers from all over the
world, as well as Siemens’ senior experts from our headquarters. Regarding technical training,
we have co-operated with the Vietnamese Ministry of Health to organise a series of workshops
for service engineers and technicians working in hospitals throughout the country.
As you mentioned, a limited budget is always a big problem for both the public and private
sectors, how can Siemens help address this?
We understand very well this issue because it’s common everywhere around the globe, and
luckily we already have a solution. At Siemens, our definition of innovation is broader than only
high-end innovation. We pursue a two-pronged strategy in this field. On the one side we drive
innovation in the high-end to help science institutes and teaching hospitals drive research to fight
the most threatening diseases like cancer. On the other side, we simultaneously work on making
high quality medical equipment available at affordable prices so that more people can benefit
from it, also with middle and entry-level hospitals and clinics.
We have products and solutions suitable and affordable to all market segments ranging from
cutting-edge technology solutions for leading medical and academic institutes - for example the
Siemens syngo.plaza PACS (Picture Archiving and Communication System), which we installed
at Cho Ray Hospital in Ho Chi Minh City last year - to a wide range of diagnostic and therapy
solutions for medium to large-sized urban, community health systems such as computed
tomography (CT), magnetic resonance imaging (MRI), and down to basic healthcare solutions for
provincial and district hospitals such as ultrasound, X-ray units and so on.
We also strongly support the public-private partnership (PPP) model in healthcare projects.
Siemens has been established as number one supplier of imaging systems in Vietnam’s
market for many years. What about In Vitro Diagnostics? How do you see the development
trend of this newer, yet highly potential division?
Our laboratory diagnostics (DX) organisation in Vietnam was established 3 years ago. Despite
being relatively young in Vietnam, our global DX teams have been in the business with renowned
products and solutions for many years, making Siemens a leader globally. With this legacy the
division in Vietnam has made excellent achievements in a short period, in terms of both business
performance and personnel.
They have managed to win a number of important contracts such as the supply of the first
Siemens Aptio™ Automation platform in Vietnam at the Medic Centre in Ho Chi Minh City in
September 2013.This was also the first installation of its kind in the ASEAN region. It represents
Siemens’ latest innovation and vision for how we can help laboratories by combining workflow
excellence with clinical excellence. It allows our customers to have access to the newest assays
while managing the laboratory effectively and intelligently.
The team itself has been expanding rapidly to now having large scale operations, and we will
continue to invest in people and training.
I’m very positive about the development of the DX business in Vietnam because currently most
hospitals and clinics are extremely overloaded with hundreds of thousands of tests per day,
whereas the testing systems often work slowly and are wearing down. More than ever,
Vietnamese hospitals and clinics need faster and stronger systems like Siemens Aptio and
Versacell automation while Vietnamese patients desperately need to say goodbye to the long
queues and endless wait times for results.
Siemens Healthcare Day was held for the second time in Ho Chi Minh City last week. Can
you share the key message of this year’s event?
The theme of our first Siemens Healthcare Day, which took place in Ho Chi Minh City in 2012,
was: “A happier world begins with a healthier world”. At this event, we provided customers with
the latest updates on Vitamin D testing and liver disease detection and treatment with noninvasive methods.
This year, we are focused on Quality, Confidence and Excellence. Quality means assuring topnotch lab diagnostics for our customers and their laboratories. Confidence means building trust in
our technology and our solutions, giving customers certainty in our ability to partner with labs to
deliver accurate test results. Excellence means creating the ultimate level of clinical excellence
and workflow efficiency.
We wish to accompany our customers on a journey for quality diagnostic testing to create
confidence in our common goal of delivering quality patient care with answers – answers that
have the potential to change lives and in doing so, achieving excellence together in the world of
laboratory diagnostics.
O - Chinese rise in Golf shows the economic change
The Economist, by Dan Washburn
The Forbidden Game - Golf and the Chinese Dream
ZHOU XUNSHU came from a village so poor that the grown-ups tore down
his primary school for the bricks. They did not know much about book-learning, but they knew
good building materials when they saw them. As an adult Mr Zhou took a job as a security guard
at a golf course in Guangzhou, though he had no idea what golf was. It was while standing guard
that he learned about the game. He watched the players through his binoculars, observing their
strategies, squinting to make out the numbers on their shiny clubs. He wished he could afford to
play, too.
Birdies, bribes and bulldozers
One day Mr Zhou’s bosses were testing some new drivers. “Can I have a try?” he piped up.
People laughed at him—a security guard wants to put his rough hands on a club that would cost
three months’ salary! But someone let him have a go and, to gasps of disbelief, he smashed the
ball over the hill at the end of the driving range—dead straight. Mr Zhou was hooked.
Dan Washburn, a journalist who lived in China for a decade, uses golf as a barometer of change.
Under Mao Zedong the sport was banned, like so many things that were decadent and fun. When
the country began to open up under Deng Xiaoping, a few golf courses were allowed, to entertain
foreign investors. As China grew richer, more and more locals wanted to try the sport. Suddenly
more golf courses were being built in China than anywhere else, despite the fact that their
construction was technically illegal.
For Mr Washburn golf is symbolic not only of China’s economic rise but also of “the less
glamorous realities of a nation’s awkward and arduous evolution from developing to developed:
corruption, environmental neglect, disputes over rural land rights and an ever-widening gap
between rich and poor”.
He tackles these great themes indirectly, by interweaving the stories of three men whose lives
were affected by the golf boom. One is Mr Zhou, whose rise from peasant to professional golfer
is, as Mr Washburn puts it, “the stuff of movies”. Hugely talented but utterly skint, Mr Zhou
struggled for years to make a living playing a rich man’s game. He travelled to tournaments on
slow trains because he could not afford to fly and slept in sordid flophouses miles from the
courses.
When he earned enough to buy a flat in Chongqing, he urged his parents to come and live with
him. They would be able to rest after 60 years sweating in the fields, he said. Finally they agreed,
and came and filled his flat with live roosters. But they were homesick for their dirty village. As
soon as their son flew away for a tournament, they went home to their friends and their corn.
Anecdotes like this bring China to life in a way that outlandish-but-true statistics—some 250m
peasants have moved to Chinese cities—cannot.
The book’s other main characters are Martin Moore, an American who builds golf courses, and
Wang Libo, a lychee farmer whose land is bulldozed to make way for one. Both tales are as
gripping as they are revealing.
Mr Moore, a laid-back, outdoorsy southerner, knew nothing about China before he accepted a job
in the remote city of Kunming. But he soon realised that he was not in Florida any more. The local
mayor insisted that he join him for a booze-up and a public execution. Mr Moore watched
drunkenly as two drug-smugglers were placed on a stool and shot. He couldn’t refuse this grisly
hospitality because golf-course-developers cannot operate without friends in government.
The tycoons Mr Moore worked for were as ambitious as they were tough. One course was never
enough—they wanted ten, or even 36. They wanted the biggest and most opulent golf resorts in
the world, and they wanted them built “faster, faster, FASTER”. Every step required bribes for
officials to look the other way. When the central government cracked down, Mr Moore’s workers
had to fill in bunkers and pretend that the project was something other than a golf course.
Many new courses appeared to make no economic sense—the owners couldn’t plausibly recoup
their costs by charging green fees. Mr Washburn explains that golf was often a marketing tool to
sell luxury villas nearby. Many Chinese officials have heaps of cash and no easy way to invest it,
especially if it has been illicitly earned. Buying property is considered both prestigious and a safe
investment, even though China’s property market swings more wildly than a drunk golfer.
The victims of China’s golf boom are the same people who suffer from other mega-developments:
the peasants. When well-connected developers bulldoze villages, the inhabitants are
compensated, but they do not get a choice. Mr Washburn describes peasants who rioted after
receiving barely a tenth of the payout to which they were entitled. Their protest earned them only
tear gas and jail.
That said, Chinese peasants are hardly passive in the face of injustice. Of the 187,000 mass
protests that the Chinese government admits occurred in 2010, two-thirds were over land grabs.
Some villagers use trickery to boost their compensation—when rumours spread that a new golf
course is to be built, phoney graves suddenly pop up on the site, since developers must pay for
each one they move.
Mr Wang fared better than many. Realising that he could not fight the Communist Party, he took
the cash for his land and opened a shop to sell cigarettes and drinks to the construction workers
building a golf resort. “Everything is possible”, he tells Mr Washburn, “if you have money.”
Culture & Art
V - Unique fine arts products in Dong Ky
Located 20 km from Hanoi, Dong Ky village in Bac Ninh province is renowned for its
traditional craft of making wood furniture inlaid with mother of pearl. The craft has been
practiced in the village for hundreds of years.
In Dong Ky village, all the locals participate in the production of traditional wood furniture.
Woodworking begins in the village at an early age. It is no exaggeration to say that the artisans of
Dong Ky have talent in their blood for this craft which is passed from generation to generation.
Nguyen Van Son is only 20 years old but he already has 10 years of professional experience.
When he was little, after school, he helped his family to polish and varnish the wood. Then his
father taught him to shave and chisel the wood. When he was 15 he started learning to carve
simple designs. Today he has mastered all stages of production: ” The most important steps in
this profession are chiseling and painting, because they determine the beauty of the products.
That is why chiselers and painters are better paid. I can earn 200,000 VND a day doing those
tasks”
According to Nguyen Duy Toan, Head of the Toan Loc cooperative, the wood furniture and fine
arts wood products of Dong Ky are popular not only in Vietnam but also abroad because they are
all hand-made: “To make simple products such as a bed or wardrobe, we can use machines. But
no machine can make fine arts products, so Dong Ky fine arts products are all made by hand by
our experienced wood workers”
Dong Ky artisans diversify their products trying to suit every taste. Mr. Toan again:“Previously,
our products were made from home-grown trees and only wealthy families could afford
sophisticated products which took the artisans more than a year to finish. Due to increasing
demand and unreliable sources of materials, we have to increase our competitiveness. To this
end, we need to diversify our products and improve their quality to better meet customer
expectations”
Dong Ky village has 200 households and companies specializing in the production and trade of
fine furniture. The trade has generated thousands of jobs and woodworking is the main source of
wealth for the village. Many families generate annual revenues of 40 billion VND or more. Some
have even grossed a hundred billion VND in one year. Dong Ky wood furniture and fine arts wood
products are exported to Europe, Africa and America. More than ever, protection of the local craft
is needed. Vu Quoc Vuong is President of the Dong Ky Fine Arts Products Association: “To
expand the local trade, we plan to build a brand for our products. Before offering our products on
the market, we must ensure their consistent quality. This year, we will participate in an exhibition
to introduce our products”.
In addition to its high quality wood products, Dong Ky is also renowned for having numerous
cultural relics. The village festival is held on the 4th day of the first lunar month and is among the
most original in Vietnam because it still preserves many traditional rituals. Dong Ky village is
undoubtedly a favorite travel destination.
VOVworld
Tourism
V - Three Vietnamese hotels named best hotels in Asia
VGP, 16/07/2014
The Sofitel Legend Metropole Ha Noi, the Nam Hai in Hoi An, and the Park Hyatt
Saigon were named on the list of Top hotels and resorts in Asia, according to US-based
magazine Travel + Leisure.
A corner of the Sofitel Legend Metropole Ha Noi
According to the 2014 World's Best Awards, the Sofitel Legend Metropole Ha Noi also entered
the list of ‘Top 100 Hotels Overall’ category and ranked seventh in the ‘Top City Hotels in Asia’
category.
The Nam Hai in Hoi An moved two steps forward in comparison with the 2013 rankings and
secured the 10th place in the‘Top Resorts in Asia’ category.
Park Hyatt Saigon ranked 24th among the ‘Top City Hotels in Asia’ category.
Travel + Leisure polled responses from over 17,000 readers who rated resorts and hotels on a
five-point scale across five standards, including cuisine, position, architectural space, room
design and service quality, via a secure website./.
V - VN cited a top 20 world’s most beautiful country
13/07/2014
VGP - Rough Guides, a global leading publisher of travel guides, has chosen Viet Nam one
of the top 20 world’s most beautiful countries.
According to Rough Guides website, it’s no surprise that Viet Nam made the top twenty. From
the impressive rock formations of Ha Long Bay to the terraced fields of mountainous Sa Pa, Viet
Nam has a huge wealth of easily accessible natural beauty.
Ha Long Bay has been prominently featured by many renowned tourism websites throughout the
world as one of the most romantic destinations for lovers, and a top 100 trip you must take in your
lifetime. It also currently ranks sixth among the world's top ten destinations for sailing cruises.
Touropia Magazine in turn has selected the marvelous terraced fields of Sa Pa as one of the top
11 in the world, while the US-based Travel and Leisure selected it as one of the 7 most
spectacular. Sa Pa ethnic minority groups also create a special cultural identity, appealing to
tourists.
Viet Nam is also famous for its stunning beaches, such as Cua Dai in Hoi An and Non Nuoc in
Danang, the magazine reported.
Top of the world’s most beautiful country is Scotland, followed by Canada, New Zealand, Italy,
South Africa, Indonesia, the UK, Iceland, and the US.
Other countries in the list are Slovenia, Mexico, India, Finland, Switzerland, Peru, Norway,
Ireland, Croatia and Viet Nam./. - VOV
M - Along the coast of Burma
Burma has opened up, yes - but there's a far-flung coast that's still untouched. Anthony Sattin
heard whispers of a wonderworld of perfect islands, home to the curiously elusive sea gypsies
and with not one but thousands of pristine beaches, many as yet unnamed. He overcame tightlipped monks, mosquitoes and rumours of tigers to reach them. But how did it pan out?
A year ago I was sitting on the worn teak floor of an old monastery prayer room up in Burma's
Shan Hills. There was a handful of monks, some helpers, my guide and cook. And there was
Max, an Englishman who had lived in the country for many years and who had just asked me to
name my special places in the world. I mentioned an oasis in the Egyptian desert and an island I
had seen on the Mekong River, down by the Lao/Cambodian border - it was so lush and
beautiful, and the people were so friendly and unspoiled. Paradise. 'Just one island, eh?' Max
shrugged and then sat closer, conspiratorially, and told me about the Mergui Archipelago.
We unfolded a map and I followed his finger over the page, up the Thai coast, north of Phuket, up
beyond Ranong, across the border into Burma, and then out into the Andaman Sea. Islands were
marked, but there were few place names. This was the Mergui. 'Eight hundred islands - maybe
more. One hotel. Fantastic beaches. And the Moken, sea gypsies: the only people who live
there.'
The Burmese coastline has been off-limits to most of us since the end of World War II. But as a
result of Aung San Suu Kyi's pronouncement that it is now politically acceptable to visit the
country, and the subsequent easing of restrictions by the military regime, Burma has begun to
open up, and so have the islands.
Island villages of the Mergui Archipelago, Burma
That first night, we dropped anchor on the calm side of a small island, hoping to sleep out of the
breeze and swell; the mosquitoes had the same idea. When I woke in the morning, we were
already on open water, the many shades of blue sea and blue sky broken only by a sea eagle golden-brown, white, extended, magnificent - following a fishing boat in search of breakfast. Miles
away, I could see islands in the haze. At first, they were mere specks on the horizon, coming into
focus as we drew closer. What had seemed flat now rose into a dark hump, what was blue
became a thick, green, jungle-clad rock, and what I thought was a large, boxy building on a
golden fringe of sand turned out to be a string of tin-roofed shacks.
I didn't expect the island villages to be untouched by the 21st century, but I had pictured houses
on stilts. And there were stilt-houses, several rows of them. There was also a primary school run
by a young woman from the mainland whose name translated as Miss Green. There were stalls
selling food and a café. The customers were settled gypsies and mainland Burmese. The whole
place was carpeted with discarded glass and plastic, and empty bottles of 'finest palm toddy'.
Paradise lost.
We moved on, and that afternoon, on another island, found the monks we had seen boarding a
ferry in Kawthaung. They and a crowd of people had come to celebrate the blessing of a plot for a
new monastery building.
Beaches of the Mergui Archipelago, Burma
The next morning, we moored off what looked like a slice of flawless sandy beach. A fishing boat
had had the same idea, so we motored over in the inflatable to visit it. Six mainland fishermen
were squeezed onto a small wooden vessel with a wheelhouse and a higher sleeping platform their home for weeks on end. They had huge light bulbs strung from bamboo booms to hang over
the sea at night and attract squid, which would then be put on ice in the hold. By day they sat
along the sides of the boat with hand lines, fishing for snappers and whatever else they could sell
to Thai fishermen, who paid more than they would get in Burmese ports. They allowed us to
inspect their boat, gave us some fish for our dinner and then we headed to the beach.
The beach. The word doesn't quite conjure the perfection of the place, of sand so fine it felt like
flour between my toes. Small crabs scuttled away from my footprints, and then ran back. At the
end of the sand there were not just trees and plants, but jungle: thick, rich, self-sustaining and
apparently untouched. Orange flowers on one tree reminded me that there are also supposed to
be tigers on some of these islands. Swimming back to the boat for lunch through the clearest
water, I pondered the joyous question of how many miles it was to the nearest town, to industry,
to a hotel and an internet connection. As I got closer, I noticed one of the boatmen scanning the
water. 'You know what they call this place?' he asked as we swam up to the ladder. 'Shark
Island.'
Fairs & Exhibitions
V - Highlight Technologies, Hightlight Activity at Vietnam Manufacturing
Expo 2014
VCCI, ,July 18, 2014
“With this upward trend of the supporting industry, we are ready to bring 200 leading
brands form 25 countries to Vietnam Manufacturing Expo 2014 which is a “Community
Platform” for manufacturers and subcontractors to source new solutions, new parts, new
suppliers, new partners, and new knowledge to keep up or lead the change that the AEC
will bring,” announced Mr. Duangdej Yuaikwarmdee, Deputy Managing Director of Reed
Tradex Co., Ltd, the leading exhibition organizer in ASEAN.
Vietnam will be the world’s fastest-growing auto market by 2020. For auto manufacturing
enterprises, auto parts manufacturers and auto trader and distributors, Vietnam market is growing
and attractive, he noted.
Whether you produce parts or molds and are interested in upgrading your production
technologies & innovations, or search for new parts suppliers or business partners, this event will
answer your needs. This 2014 edition will also include international pavilions from Japan,
Singapore, Taiwan and Thailand. Together with “The Stars of Technology Pavilion”, A special
showcase that features the high-tech machinery and live robot demonstrations from the worlds’
renown brands such as Hexagon, Panasonic, Saeilo, Tesa and MICO for visitor’s first-hand
experiences, Vietnam Manufacturing Expo endeavors to promote the growth of Vietnam’s
industry.
In addition, for the first time this year in “Vietnam Manufacturing Expo 2014”, we have
prepapred “Koma Taisen” – a special tournament that gathers together small and medium
sized manufacturing association (SME's) from all over Japan who put all their souls in
designing and making Koma (spintop) to participate in spintop fight battles as one of the
highlight activities!
The Koma (spintop) must have a diameter of 20mm or less, smaller than a one yen coin. These
small Koma are designed and created with highly sophisticated unique “in-house” manufacturing
techniques from participants from all over Japan. Koma are great because at first glance you can
not notice the initial quality, however they have been manufactured with professional precision.
The Koma enters the ring against a competitor and fight to determine the winner through a
collision. The overall winner of the competition will win all the Koma (spintop) against all the other
participating competitors.
This competition is designed to promote the prosperity of the manufacturing industry through
competition of Koma showcasing skills and technology, as well as providing the opportunity for
participating companies to promote their high professional skills to the world.
VIETNAM - CAMBODIA - LAOS – MYANMAR. All Fairs 2014 in with organizer contact data
Vietnam:
The 5th International Pro-Pack, Plastics & Rubber Technologies and Materials Exhibition for
Vietnam
4-Mar-2014 to 6-Mar-2014
Ho-Chi-Minh City / Vietnam / Asia
Plastics & Rubber Machinery, Processing & Materials, Equipment, Products and
Services. Organizer: [email protected]
The International Mining and Minerals Recovery Exhibition and Conference
11-Mar-2014 to 13-Mar-2014
Hanoi / Vietnam / Asia
Mining equipment and supplies. Organizer: [email protected]
The 5th International Livestock, Dairy, Meat Processing and Aquaculture Exposition
19 - 21 March, 2014, Saigon Exhibition and Convention Center (SECC)
Organizer: E-mail: [email protected]
The 3rd International Precision Engineering, Machine Tools and Metalworking Exhibition &
Conference
1-Apr-2014 to 3-Apr-2014
Hanoi / Vietnam / Asia
Metal-Cutting, Metal-Forming, Cutting Tools, Test & Measurement, Industrial Tools &
Components, etc. Organizer: [email protected]
Vietnam Textile & Garment Industry Expo
10-Apr-2014 to 13-Apr-2014
Ho-Chi-Minh City / Vietnam / Asia
Textile Equipment Machinery & Parts, Garment Machinery and Parts, Fabric, Fiber,
Filament, Material, Accessories and Supplies, Yarns, Leather Processing, Footwear
Industry, Leather Goods. Organizer: [email protected]
LIFESTYLE VIETNAM 2014
18-Apr-2014 to 21-Apr-2014
Ho-Chi-Minh City / Vietnam / Asia
Home Decor and Handicrafts, Indoor and Outdoor Furniture, Houseware and Storage,
Home textiles and embroidery, Gifts & Ethnic items, Garden Accessories, Personal
Accessories, Footwear fashion, Toys, Supporting services, etc.
Organizer: [email protected]
The 7th Vietnam International Exhibition and Conference on Cosmetics, Beauty, Hair & Spa
24-Apr-2014 to 26-Apr-2014
Ho-Chi-Minh City / Vietnam / Asia
Perfumery, Cosmetics and Personal Hygiene, Natural Health Products, Health Food &
Beverages, Dietary Supplements, Professional Care Products, Equipment & Solution for
Beauty Salons, Salon Furnishing Spa & Wellness Facilities, Packaging & Processing
equipments, Raw Materials, etc. Organizer: [email protected]
The 11th International Jewelry + Watch Vietnam (10th IJV)
8-May-2014 to 11-May-2014
Ho-Chi-Minh City / Vietnam / Asia
Diamonds, Gemstones, Gold Jewelry, Platinum Jewelry, Pearl, Diamond and Gemset
Jewelry, Semi-Finished Jewelry, South Sea Pearls & Tahiti Pearls, Wedding Jewelry,
Bejeweled Watch, Brand Name Watches, Jewelry Tools & Equipment.
Organizer: [email protected]
Saigon International Autotech & Accessories Show 2014
29-May-2014 to 1-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Vehicles Car, Transportation, Supporting Industry - Motor Parts, Supporting Industry Motor Plus, Others. Organizer: [email protected]
Vietnam International Security System & Fire Protection Equipment and Technology Exhibition
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Security & fire protection system, products, equipment and technology.
Organizer: [email protected]
The International Exhibition on Refrigeration, Air-Conditioning, Heating & Ventilation Systems
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
HVACR system, equipment, materials, products, technology and services.
Organizer: [email protected]
Vietnam International Construction & Building Exhibition
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Construction & building machinery, equipment, materials, decorative, technology and
services. Organizer: [email protected]
Vietnam International Lighting Equipment & Technology Exhibition
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
lighting equipment, materials, technology and products.
Organizer: [email protected]
International Exhibition on Metalworking & Machine Tools, Equipment and Technology
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Turning Machines, Milling Machines, Boring Machines, Grilling and Tapping
Machines,Grinding Machines, Gear cutting machines, Modular machines & modular
units, Metal Forming Machine and special purpose machines, Machine tool components
and auxiliary equipments. Organizer: [email protected]
International Exhibition on Plastic Technology, Machinery, Product and Raw Material
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Machinery, ancillary equipment, moulds, raw materials, regenerated and composite
materials, semi-finished and finished products for the plastics and rubber industry.
Organizer: [email protected]
International Exhibition on Industrial Automation
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Turning Machines, Milling Machines, Boring Machines, Grilling and Tapping
Machines,Grinding Machines, Gear cutting machines, Modular machines & modular
units, Metal Forming Machine and special purpose machines, Machine tool components
and auxiliary equipments. Organizer: [email protected]
International Exhibition on Printing & Packaging Technology, Machinery and Equipment
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Machinery, ancillary equipment, moulds, raw materials, regenerated and composite
materials, semi-finished and finished products for the plastics and rubber industry.
Organizer: [email protected]
International Exhibition on Food Packaging Machinery, Material and Technology
26-Jun-2014 to 28-Jun-2014
Ho-Chi-Minh City / Vietnam / Asia
Machinery, ancillary equipment, moulds, raw materials, regenerated and composite
materials, semi-finished and finished products for the plastics and rubber industry.
Organizer: [email protected]
The 12th International Precision Engineering, Machine Tools and Metalworking Exhibition &
Conference
8-Jul-2014 to 11-Jul-2014
Ho-Chi-Minh City / Vietnam / Asia
Metal-Cutting, Metal-Forming, Cutting Tools, Test & Measurement, Industrial Tools &
Components, etc. Organizer: [email protected]
International Footwear & Leather Products Exhibition - Vietnam
16-Jul-2014 to 18-Jul-2014
Ho-Chi-Minh City / Vietnam / Asia
All kinds of footwear, Bags & Suitcases, Leather Garments & Leather Products, Fashion
Accessories, Brand Name Products. Organizer: [email protected]
Vietnam Manufacturing Expo 2014
27-Aug-2014 to 29-Aug-2014
Hanoi / Vietnam / Asia
Machine Tools, Metalworking Technology, Tools and Tooling, Sheet Metalworking
Technology, Welding Technology, Parts and Components for Cars and Ships, OEM and
REM Parts, Wire and Tube Technology , Test Equipment and Tools, CAD/CAM/CAE
Systems, Electronic Assembly, and many more.
Organizer: [email protected]
IFBO International Franchise Business Oportunities
4 - 6 Sept. 2014, TBECC
Ho Chi Minh City, Vietnam
Organizer: Tan Binh Exhebition Center TBECC
E HCMC 2014 - The 10th International Travel Expo, Ho Chi Minh City
11-Sep-2014 to 13-Sep-2014
Ho-Chi-Minh City / Vietnam / Asia
Adventure Travel, Airlines, Convention/Exhibition/MICE Organiser,
Cruise Operators, Hotel/Resourt, Nature/National Parks, Restaurants,
Spa & Wellness Travel, etc. Organizer: [email protected]
The 5th International Architectural, Building, Maintenance & Engineering Technologies Exhibition
17-Sep-2014 to 19-Sep-2014
Ho-Chi-Minh City / Vietnam / Asia
Air-conditioning, Refrigeration & Ventilation Technologies, Architectural Lighting & Fitting,
CCTV & Network Camera, Escalators & Lift, Facility Property Management, Fire
Protection Solution, Home & Building Automation,etc.
Organizer: [email protected]
Elenex Vietnam 2014
17-Sep-2014 to 19-Sep-2014
Ho-Chi-Minh City / Vietnam / Asia
1) Electrical Installations, Transmissions & Distribution,
2) Lighting Technologies. Organizer: [email protected]
Industrial Automation Vietnam 2014
17-Sep-2014 to 19-Sep-2014
Ho-Chi-Minh City / Vietnam / Asia
Automation & Control Software, Cable/Cable System, Communications & Bus System,
Control Systems & Software, Drive & Actuator, Enterprise Networking,
Industrial PC, Linear Motion Control, Plant Automation & Monitoring Systems, Process
Automation, Test & Measurement, Vision System, etc.
Organizer: [email protected]
PHARMEDI 2014 - Vietnam International Exhibition on Products, Equipment, Supplies for
Medical, Pharmaceutical, Hospital & Rehabilitation
24-Sep-2014 to 26-Sep-2014
Ho-Chi-Minh City / Vietnam / Asia
Medicines & Healthy Foodstuff, Pharmaceutical manufacturing and packaging
equipment, Diagnostic Equipment, Hospital furnitures & Equipment.
Organizer: [email protected]
METALEX Vietnam 2014
9-Oct-2014 to 11-Oct-2014
Ho-Chi-Minh City / Vietnam / Asia
Machine Tool and Machining Centers, Sheet Metalworking, Welding Technology, Factory
Automation, and etc. Organizer: [email protected]
NEPCON Vietnam 2014
9-Oct-2014 to 11-Oct-2014
Ho-Chi-Minh City / Vietnam / Asia
Surface Mount Technology Equipment and Services, Test and Measurement Equipment
and Services, Electronics Manufacturing Services, and etc.
Organizer: [email protected]
VIETSTOCK Intn’l. Fair 2014
Vietnam’s premier intn’l feed, livestock and meat industry show
15 – 17. October. 2014 SEEC, Ho-Chi-Minh City / Vietnam / Asia
Organizer: [email protected]
23rd Vietnam International Industrial Fair
21-Oct-2014 to 24-Oct-2014
Hanoi / Vietnam / Asia
Machine tools (Metal cutting, Metal forming), Packaging - Printing & related converter
machinery, Plastic, Automation, etc. Organizer: [email protected]
2014 14th Vietnam International Food Processing Industry Exhibition
22-Oct-2014 to 25-Oct-2014
Ho-Chi-Minh City / Vietnam / Asia
Food Processing Machinery & Equipment, Technology Equipment.
Organizer: [email protected]
2014 14th Vietnam International Plastics & Rubber Industry Exhibition
5-Nov-2014 to 8-Nov-2014
Ho-Chi-Minh City / Vietnam / Asia
PLASTIC MACHINERY, CHEMICALS AND RAW MATERIALS, MACHINERY
AUXILIARY INDUSTRY, HEAT AND CONTROL EQUIPMENT, MOULD, HYDRAULIC
AND PNEUMATIC, etc. Organizer: [email protected]
VIETWATER - Vietnam’s No. 1 International Water and Wastewater Industry Show
12 – 14 November 2014
Ho-Chi-Minh City / Vietnam , SECC
Organizer: [email protected]
Cambodia:
The 6th Cambodia Gems & Jewelry Fair
12-Jun-2014 to 15-Jun-2014
Phnom Penh / Cambodia / Asia
Fine finished jewelry collections. Organizer: [email protected]
Cambodia International Machinery Industrial Fair
15-Aug-2014 to 18-Aug-2014
Phnom Penh / Cambodia / Asia
1.Plastics & Rubber 2.Printing & Packaging 3.Food Processing 4.Agriculture 5.Medical &
Pharmaceutical Equipment 6.Metalworking & Automation 7.Tools & Hardware 8.Auto
Parts 9.Energy & Electricity Engineering 10.Water Technology.
Organizer: [email protected]
Cambodia Int'l Textile & Garment Industrial Exhibition (CTG 2014)
15-Aug-2014 to 18-Aug-2014
Phnom Penh / Cambodia / Asia
machinery & accessories, Spinning machinery & accessories, Looms, Yarn processing
machinery & accessories, Weaving machinery & accessories, Bleaching & washing
machines, Chemicals and dyes, Steaming machinery, Cloth processing machinery &
accessories, Embroidery equipment, etc. Organizer: [email protected]
Myanmar:
International Food and Machinery Expo 2014
9-Jan-2014 to 12-Jan-2014
Yangon / Myanmar / Asia. International Food and Machinery. Organizer: Myanmar
Professional Services. Adress: 6F, Kyaung Gone St, Sanchauung Tsp, Yangon
Person : Dr. Zar Ni Mg. TEL : +95-9-43096666
Livestock Myanmar 2014 Expo - Myanmar's 1st International Feed, Livestock & Meat Industry
Show
23-Jan-2014 to 25-Jan-2014
Yangon / Myanmar / Asia
ANIMAL IDENTIFICATION AND MICROCHIP, ANTIBIOTIC, BREEDER SYSTEM,
BROILER EQUIPMENT, CHECK WEIGHERS, CONVEYOR, EGGS HANDLING
EQUIPMENT, FEED INGREDIENTS, FOOD PACKAGING, INSURANCE,
PHARMACEUTICALS / CHEMICALS, VACCINES, VETERINARY EQUIPMENTS etc.
Organizer: [email protected]
MMT2014 - Myanmar Manufacturing Equipment, Components & Engineering Technology 2014
26-Feb-2014 to 28-Feb-2014
Yangon / Myanmar / Asia
Machine Tools, Hardware & Tools, Measuring Instrument, Weighing Machine, Welding
Machines, Water Treatment, Compressors, Hydraulic & Pneumatic Tools, Workshop
Machines, Cutting Tools & Machines, Drills, Machine for Milling, Shearing, Boring,
Shaping, Burnishing and Polishing and Others. Organizer: [email protected]
Cosmobeaute Myanmar 2014
6-Jun-2014 to 8-Jun-2014
Yangon / Myanmar / Asia
Perfumery, Cosmetics and Personal Hygiene, Natural Health Products, Health Food &
Beverages, Dietary Supplements, Professional Care Products, Equipment & Solution for
Beauty Salons, Salon Furnishing Spa & Wellness Facilities, Packaging & Processing
equipments, etc. Organizer: [email protected]
Manufacturing Myanmar 2014
2-Oct-2014 to 4-Oct-2014
Yangon / Myanmar / Asia
Factory Equipment, Metal cutting Machine Tools, Surface & Heat treatment, Material
handling & Storage, Welding Technology, Sheetmetal Technology, Software &
Prototyping Systems, Measurement & Testing Technology, Mould & Die, Hand Tools &
Tooling. Organizer: [email protected]
THE 3RD INTERNATIONAL LIVESTOCK, DAIRY, MEAT
7-8 OCTOBER 2014
TAMADAW YANGON – MYANMAR
PROCESSING AND AQUACULTURE EXPOSITION
Organizer: Ms Nguyen Thi Cam Giang (Ginny). [email protected]
INTERMACH MYANMAR 2014 - Myanmar's 2nd International Industrial Manufacturing and
Subcontracting Exhibition
29-Oct-2014 to 31-Oct-2014
Yangon / Myanmar / Asia
Machine Tools, Molds&Dies, Welding Equipment, Sheet Metal, Machinery, Accessories,
Hand/Power Tools, Hydraulic/Pneumatic, Logistics&Transport, Material Handling,
Plastic&Rubber, Pumps, Valves, Fitting, Hardware, Automobile, Electrical&Electronics,
Engine parts, Plastics, Rubber parts. Organizer: [email protected]
Myanmar Int'l Machinery Industrial Fair 2014
Nov. 15 to 18.
Organizer: Myanmar Industrial Association (MIA) and Yorkers Trade and Marketing Service Co.,
Ltd. Hong Kong
Laos: Up to now no fairs known
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