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“VIETNAM BUSINESS NEWS”
The Economic Mirror Indochina’s
July 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
O - Asian business is reforming. Its emerging multinationals will change the way we
all live
Economy & Business
V - How works the Market Entry in Vietnam and Indochina ?
V - European firms feel more buoyant in Vietnam market
V - European business confidence continues rising
V - Vietnam strings out yarn forward rule
V - Textile and garment sector aims to reduce China reliance
V - Giants act to cut dairy, beef prices
V - German magazine “Der Spiegel” hails investment environment in Vietnam
M - Vietnamese investors’ rising interest in Myanmar
V - Vietnam's GDP forecast to rise greatly after EU free trade deal
V - HSBC: Manufacturing continues to rise
Int'l Cooperation
V - Foreign firms boost trade promotion in Vietnam
Investment
V - Vietnam in top three attractive investment markets in the world
V - Unilever Vietnam has become of the most successful foreign invested investor in
Vietnam
V - Korean investment grows in textile and garment sector
V - Vinatex set to launch IPO on July 22
O - Singapore- Potential Market for Vietnamese Agricultural Products
V - China and Hong Kong Increase Investment in Vietnam
L - WORLD BANK to boost LAOS SMEs
V - More foreign investors keen on Vietnam’s hotel sector
V - Developers remain uncertain of local property market
V - Important destination for real estate investors
V - Samsung plans $1 bln factory in Ho Chi Minh City
V - US businesses seek investment opportunity in Vietnam
V - Dong Nai attracts $600 million in FDI
Markets & Prices
V - Vietnamese fashion brands undergoing great hardships
V - Retail chains live well, separate shopping malls get worn out
V - AutoExpo 2014 kicks off in Ha Noi
V - Auto sales stay strong in May
V - Good times ahead for Vietnam hotel industry
C - Iconic English Automaker Rolls Into Cambodia
V - Hanoi named in Asia-Pacific top crowded retail markets
V - First Lamborghini showroom to be opened next month
Export-Import
O - Event Marketing - it's simply the old Trade Agency
V - Exporters urged to meet EU standards
L - Savannakhet export value reaches US$900 million
V - Garment and textile exports surge 16.4%
O - Exports to Spain enjoy strong growth
V - Seafood catch rises slightly
V - Indian animal feed suppliers to explore Vietnam market
V - Footwear exports continue to grow
Enterprises
M - Hilton plans to open five more hotels in Myanmar
V - JW Marriott Hanoi awarded best design in Asia
V - UNILEVER VIETNAM: Success Comes from Sustainable Development
Particular Reports
V - Choosing Your Sourcing Partner in Vietnam
V - Building “castles” becomes a fashion among the rich
Culture & Art
V - Where to admire Vietnamese contemporary arts in Saigon
Tourism
V - Experience homestay and explore Tay ethnic culture in Pac Ngoi
V - Guide to Hanoi
C - Sailing is the only freedom left on the planet
Fairs & Exhibitions
VIETNAM - CAMBODIA - LAOS – MYANMAR. All Fairs 2014 with organizer contact data
Topic of the Month
O - Asian business is reforming. Its emerging multinationals will change
the way we all live
Business power follows economic power. In the 1920s British firms owned 40% of the global
stock of foreign direct investment. By 1967 America was top dog, with a 50% share. Behind those
figures lie cultural revolutions. The British spread the telegraph and trains in Latin America.
American firms sold a vision of the good life, honed by Hollywood and advertising. Kellogg’s
changed what the rich world ate for breakfast, and Kodak how it remembered holidays. The next
corporate revolution, as we describe in our is happening in Asia. This too will change how
the world lives.
A Armade of global corporations from Asia - most logos the Western consumer
dont even know - yet
Asian capitalism has brawn. The continent’s share of global GDP has risen from a fifth to 28%
since 1984. ASIA is the world’s factory, a diverse region of rivals bound together by supply
chains. But it lacks brains and global savvy. Asia smelts 76% of the world’s iron and emits 44% of
its pollution, but hosts only a tenth of its most valuable brands and venture-capital activity. Its
multinationals punch below their weight, owning 17% of the world’s foreign direct investment.
Wealthy Japan and South Korea have a cast of superstars, such as Toyota and Samsung. But
few other firms command the world stage.
That is because Asian capitalism has been too cosy. In the boom between 2002 and 2010 easy
profits were made at home—growth was fast and labour and credit cheap. Two-thirds of big Asian
firms are state-controlled or “business houses” (often family-run). These incumbents tend to be
chummy with the government and get cheap land and loans. Half of all billionaire wealth in Asia
has been made in sectors, such as property, that are prone to cronyism, versus 15% in the West.
Outside Japan, Taiwan and South Korea, innovation has been neglected. Mahindra & Mahindra
and Great Wall, car champions from India and China, have a combined research-anddevelopment (R&D) budget that is 3% of Volkswagen’s.
For Western firms, Asia’s shortcomings have been a relief. The iPhone shows why: although
it is made by the hands of Chinese workers, it is the brains behind it, at Apple and at high-tech
component-makers in the rich world, that take nearly all the profits. Now, however, the rules that
have governed Asian capitalism for the past two decades are changing. Asian firms are having to
become brainier, more nimble and more global.
The immediate motivation is underperformance: growth has slowed, and Asian shares have
lagged American ones by 40% in the past three years. Three deeper trends are also at work.
First, labour costs are rising, not least in China, and East Asia’s workforce is ageing. Second,
Asia’s middle class is becoming more demanding. They are no longer satisfied with fake Louis
Vuitton handbags; they want clean air, safe food and more leisure, and are madly in love with the
internet. Third, competition has intensified from Western multinationals, which have invested $2
trillion in Asia. They also now use the same cheapish labour, and they generally have much more
sophisticated supply chains, brands and R&D.
With their home markets no longer quite so safe, Asian firms are adapting—and becoming
stronger. In response to rising wages, production (of clothes, for example) is shifting from China
to South-East Asia and Africa, led by Japanese firms which are also worried about a war with the
Middle Kingdom. Chinese firms such as Haier, which makes fridges, plan to automate factories
and get into cleverer products. And as the Chinese push upmarket, the Koreans are redoubling
efforts to stay ahead. Samsung’s spending on R&D rose by 24% in 2013. If they get their act
together, India and Indonesia, Asia’s bumbling giants, will attract lots of factory jobs. Their best
firms are also getting brainier. Once dismissed as “body shops”, India’s IT-outsourcing firms are
now leaders in big data.
Rising consumer aspirations are helping internet firms disrupt traditional industries. Alibaba, a
Chinese internet giant, is expanding into banking, telecoms and logistics. Analysts think it might
be worth $150 billion, more than China’s steel industry. China’s drive to reform its state-owned
firms is meant to make them more responsive to customers. Xi Guohua, the boss of China
Mobile, plans to give shares to his staff. Across Asia demand for health care is likely to create a
whole new generation of companies—the industry comprises only 4% of the region’s
stockmarket, compared with 12% in the rich world.
In order to challenge foreign rivals, Asian firms are globalising, following the example of
Samsung and Toyota. Lenovo, a thriving Chinese computer firm, has Western-style governance
and many foreign staff. Huawei has overtaken Ericsson in telecoms equipment. India’s Sun
Pharma is now one of the world’s biggest generic-drugs firms. Tencent, China’s Facebook, has
hired the footballer Lionel Messi to advertise its services abroad. Sprawling business houses are
evolving into focused multinationals. Tata Sons is now a superb IT firm and luxury-car maker tied
to a ragbag of Indian assets.
Asian business needs to do much more. Big firms are spending 50% more on R&D than five
years ago, but must get better at breakthrough innovations. Conglomerates must focus on a few
areas where they can achieve global scale. Governments can do their bit, by freeing state firms
from meddling and ensuring that powerful incumbents do not stifle entrepreneurs.
Western firms should pay attention. In some industries—aircraft manufacturing, for example—
the barriers to entry are still immense, but in other sectors brands and technology will no longer
be a shield from emerging Asian competition. The threat to low-paid Western jobs may recede.
Haier’s Chinese workers are paid 25% of what its American workers get, up from 5% in 2000.
Instead it may be copywriters, scientists and designers who feel the chill of competition from the
East.
History suggests consumers will adapt fast. In 20 years, miracle cures for the old will come from
Japan, the best web apps from India and couture from China. And cornflakes, once a cuttingedge food, will be rivalled by congee and dosas, sold in boxes by a global brand.
Asian capitalism will change the world.
The Economist, 2. Q. 2014
Economy & Business
V - How works the Market Entry in Vietnam and Indochina ?
PSV, 26 .06. 2014
Irrespective if you interested in
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Vietnam / Indochina - the easiest, quickest and most cost effective solution for testing, start-up,
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V - European firms feel more buoyant in Vietnam market
Thanhnien News, June 18, 2014
Containers of goods are being loaded on a vessel for export at Cat Lat
Port in HCMC. Half of European companies in Vietnam expect that trade would be the most
beneficial sector from the EU-Vietnam FTA. Photo credit: saigonnewport.com.vn
European companies have expressed more confidence about Vietnam’s business climate given
that the EU-Vietnam Free Trade Agreement (FTA) is set to be concluded later this year, a survey
shows. The European Chamber of Commerce in Vietnam (EuroCham) said its latest quarterly
Business Climate Index survey, conducted last month, showed the index has risen to 66 from last
quarter’s 59. “A further increase by 7 points seems to underline the findings of last quarter’s
survey. Our members have a strong belief in the Vietnamese market and are very hopeful of a
strong implementable FTA,” Nicola Connolly, Chairwoman of EuroCham, said in a statement.
“We will continue to work with the Vietnamese government and the European Union to ensure
that the final agreement will provide practical benefits for our members in the years to come,” she
added.
Half of EuroCham members expect that trade would be the most beneficial sector from the
agreement. Thirty three percent point out manufacture and 10 percent say services.
The improved positive sentiment of European firms is linked not only to the ongoing trade
negotiations, such as EU-Vietnam FTA, but also the creation of ASEAN Economic Community in
2015, according to the survey.
In line with the creation of an ASEAN Economic Community, the survey asked respondents to
evaluate Vietnam’s competitiveness against other ASEAN countries across a number of different
criteria. According to the findings, competitive labor costs were perceived as a key reason for
European companies to settle their businesses in Vietnam. On the other hand, a comparatively
high percentage of the respondents assessed Vietnam as being less competitive in terms of
infrastructure (75 percent) and legal/administrative system (80 percent).
More investment, recruitment plans
Eighty-one percent of the respondents plan to maintain or increase their investment, compared
with 78 percent last quarter. This translates into a rise in recruitment plans with 55 percent
expecting to raise their headcounts, up 7 percent from last quarter. However, the number of
respondents expecting an increase in business orders has dropped to 64 percent from 70
percent. At the same time, the level of respondents expecting a reduction in business orders has
remained low -- 12 percent, compared to 15 percent last quarter.
The respondents remain somewhat confident in the macroeconomic outlook, with 46 percent
expecting ‘stabilization and improvement’ of the situation (slightly down from 47 percent last
quarter) and 26 percent fearing a further deterioration (up from the 23 percent last time).
The World Bank forecasts Vietnam’s economy to grow 5.5 percent this year.
V - European business confidence continues rising
The Hanoitimes, Wednesday, 18 Jun 2014
Business confidence and outlook among European businesses in
Vietnam have continued to increase this quarter, according to EuroCham Business
Climate Index survey. The survey, conducted by the European Chamber of Commerce in
Vietnam (EuroCham), shows that the business climate index (BIC) is back to its 2011
levels-having gone from last quarter’s 59 to 66.
This increase further underlines the commitment of European companies to the
Vietnamese market, according to EuroCham.
“It is encouraging to see the EuroCham Business Climate Index having continued its upwards
flight – to an impressive 66. A further increase by seven points seems to underline the findings of
last quarter’s survey. Our members have a strong belief in the Vietnamese market and are very
hopeful of a strong implementable free trade agreement,” EuroCham chairwoman Nicola
Connolly.
In addition to the EU-Vietnam Free Trade Agreement, the EuroCham said European investors are
also expecting on the creation of ASEAN Economic Community in 2015.
In line with the creation of an ASEAN Economic Community, the BCI survey also asked
respondents to evaluate Vietnam’s competitive advantages against other ASEAN countries
across a number of different criteria. According to the findings, competitive labour cost was
perceived as one of the main reasons for EuroCham members to settle their businesses in
Vietnam.
Compared to the results of last quarter’s BCI, the amount of respondents assessing their current
business situation as positive has remained relatively stable at 44 per cent, compared to 45 per
cent last quarter and last year’s 43 per cent. In addition, the number of respondents remain
negative perception has comparably declined from 29 per cent to 21 per cent. The business
outlook has seen a continued qualification with responses having positive assessment rising
above the midpoint to an impressive 57 per cent compared to last quarter 49 per cent and last
year 44 per cent.
Investment and recruitment plans continue to improve despite declining expected business
orders. Positive trend of increasing investment plans has come back with 81 per cent of
respondents intend to maintain or increase their investment level, compare to last quarter of 78
per cent.
The positive development in expected investment plans also transfers into the recruitment plans,
with the number of respondents expecting to increase their headcounts continuing to increase –
from 48 per cent last quarter to 55 per cent this quarter. Equally important is the fact that the
number of respondents expecting to reduce their workforce has further diminished – 11 per cent
compared to last quarter 15 per cent.
V - Vietnam strings out yarn forward rule
VIR, 16/06/2014
Vietnam may be allowed to stretch-out its implementation of the yarn-forward rule for the
garment and textile industry if it joins the currently under-negotiation Trans-Pacific
Partnership.
Vietnam appears to have convinced TPP negotiating countries to allow
an extended time frame for the yarn forward rule
Minister of Industry and Trade Vu Huy Hoang said at the bi-annual Vietnam Business Forum held
in Hanoi two weeks ago that Vietnam had asked the proposed Trans-Pacific Partnership (TPP)
members for a ‘transformation roadmap” in implementing the yarn-forward rule, or rule of origin,
to the country’s garment and textile industry.
“This proposal has been accepted in-principle by other countries,” said Hoang, implying that it
could be approved once the TPP takes effect in the future. “This means that in five years, or
maybe more, if the garment and textile supporting industry is still underdeveloped, other TPP
nations would still allow Vietnam to enjoy tax preferences under the TPP despite its importing
yarns and fabrics from non-members,” said Hoang. He said Vietnam introduced the proposal
because the country was at a lower level of development than other TPP members. Therefore, it
would be very difficult for the country to immediately implement the yarn-forward rule.
The TPP is a free trade agreement currently being negotiated by 12 countries including the US,
Australia, Malaysia, New Zealand, Singapore, Japan, Mexico, and Vietnam.
The yarn-forward rule, under the TPP, requires that the yarns, fabrics and final garments
exported within the TPP are produced in TPP countries. If Vietnam’s proposal is approved, it
would allow garment and textile companies to export apparel made from yarn and fabric
imported from non-member countries such as China, duty free to the US and the TPP markets.
Hoang admitted that the yarn-forward rule was essential to preventing external players from
benefiting from the agreement. However, he noted that Vietnam needed time to prepare. “While
implementing the roadmap, Vietnam has to urgently boost its supporting industry for the garment
and textile sector. This is an opportunity for foreign investors to get into yarn and fabric
manufacturing projects in Vietnam,” said Hoang, adding that Vietnam would welcome all foreign
investors interested in this industry.
With its advantage of cheap labour, Vietnam is one of the biggest garment and textile
exporters in the world. The country is an important manufacturing base of many brands
such as Nike and Adidas.
Since Vietnam started negotiating the TPP, many foreign investors have announced they would
increase their investments into the country’s garment and textile industry to enjoy duty-free
exports to the US market and other TPP member states.
For example, South Korea’s Hyosung, the largest spandex producer in the world, announced it
planned to invest an additional $50 million in the southern province of Dong Nai to expand
production. China’s Texhong Group has also invested in a $300 million textile factory in the
northern province of Quang Ninh with a similar expectation of benefiting from the TPP.
By Ngoc Linh
V - Textile and garment sector aims to reduce China reliance
VIR, By Hai Yen, 12/06/2014
The Vietnam Textile and Apparel Association (Vitas) just sent a dispatch to businesses in the
sector requiring them to supply data on their textile and garment materials and accessories,
fibres, yarns, fabrics and dyes imported from China during 2013-2014.
“Based on the figures provided by firms, Vitas will have up-to-date figures on the types of
materials and accessories imported from China, and will from there devise plans for investment
and development of supply sources from the domestic market as well as sourcing output market
distribution,” said Vitas deputy chairwoman Dang Phuong Dung.
Priority substitute markets for Vietnamese textile and garment firms to source materials are
Thailand, South Korea, Indonesia and India, Dung added.
In the Ministry of Trade’s most recent periodical meeting reviewing the situation in May and the
first five months, regarding measures to reduce imports from China, Deputy Minister of Industry
and Trade Do Thang Hai said investing in domestic material production would be most
sustainable for sectoral development.
In fact, domestic supply of fabrics has increased in recent years, but the production cost is still
pricey and mostly higher than that of imported products.
Chairman of Garmex Saigon Le Quang Hung said the company had yet to find another market to
supersede China in terms of price, after it conducted surveys in a number of regional countries
such as Malaysia and Indonesia.
Last year, total import value of the textile and garment sector came to $13 billion. Of this,
approximately $6 billion came from the Chinese market alone.
The import value of cotton, fibre, fabrics, and accessories in the first five months of 2014 was
estimated at $5.7 billion, with more than half coming from China.
V - Giants act to cut dairy, beef prices
Business Times, Jun 11th, 2014
Three large Vietnamese companies, Hoang Anh Gia Lai JSC (HAGL), Nutrition Food JSC
and Vissan Limited Company, will launch a joint venture aimed at reducing domestic
prices of dairy products.
According to an agreement signed by the three companies in HCM City on June 9, HAGL will
spend VND6.3 trillion (US$300 million) for building a dairy and beef cattle farm. Once completed
by 2015, the farm will have 236,000 cows.
Beef cattle will be imported from Thailand and Australia while cows will be from Australia, New
Zealand and the US.
The farm network will be located in Viet Nam, Laos and Cambodia.
Nutrition Food JSC will build a milk factory in Tra Da Industrial Park in September this year with
total investment capital of VND5 trillion ($238.09 million). The project will be carried out in two
phases.
The 2014-15 phase will produce about 290 million litres of fresh milk per year, while the second
phase will help raise the total capacity of milk to 500 million litres.
The factory’s equipment will be imported from Germany and Sweden. It will process milk
supplied by HAGL.
Meanwhile, Vissan Company will carry out its project on Vissan food processing industry complex
in southern Long An Province, with an investment capital of VND2 trillion ($95.238 million). The
complex will have an annual capacity of 100,000 tonnes and will sell all beef supplied by HAGL.
HAGL chairman Doan Nguyen Duc said the first batch of 60,000 beef cattle from Thailand will be
imported on June 16.
Source: VNS
V - German magazine “Der Spiegel” hails investment environment in
Vietnam
VIR, 09/06/2014
The German newspaper “The Mirror” recently ran an article praising
the Vietnamese investment environment as well as its open policies for foreign
businesses.
German investors and representatives from German Industry and Commerce Vietnam (GIC) as
part of the German Chambers of Industry and Commerce (AHK), praised the Vietnam
Government for offering favourable conditions for foreign investors.
Among German investors, Evert Helms CEO of Pepperl & Fuchs Company (P&F), specializing in
industrial sensor and processor technology, said he is happy to be working in Vietnam, not only
because his company is provided with the best conditions for production, but the more
importantly, that his company’s products exported to Southeast Asian markets enjoy tax
exemption. He said Vietnam has maintained political stability and the Vietnamese people have
always shown a progressive spirit. According to him, business activities of the P&F, with a team
of 5,600 employees worldwide and revenues of more than 500 million Euros per year, will
certainly achieve double-digit growth in Vietnam.
The P&F CEO also commended Vietnam's Labour Code with confidence and clarity, the same as
the EU standards. He advised small and medium sized German enterprises to come to Vietnam if
they intend to do business in this region.
Also, regarding the investment environment in Vietnam, General Director of Saigon Leather Tan
Tec, Uwe Hutzler appreciated the investment policy and preferential tariffs for foreign enterprises.
According to him, Vietnam has a more stable framework conditions than some other regional
countries.
The article quoted AHK Deputy Chief Representative in Vietnam, Peter Kompalla said there are
about 300 German enterprises doing business in Vietnam and dozens of businesses are looking
for partners in the country.
Meanwhile, German Bank for Reconstruction (KfW) Chief Representative in Hanoi, Ms Birgit
Erbel emphasized Vietnam’s admirable achievements. In 1993, the Southeast Asian country had
nearly 60% of the poor population but this rate has now dropped to below 12%. Besides, Vietnam
has recorded economic growth of 5% for years and is expected to reach 6.4% in 2018.
The Vietnamese Government aims to develop Vietnam into an industrialized country by 2020,
she added.
M - Vietnamese investors’ rising interest in Myanmar
ELEVEN Myanmar, 08 June 2014
More than 50 business groups from Vietnam have been conducting market research in
Myanmar in order to look for investment opportunities, said Pho Nam Phuang, director of
Investment and Trade Promotion Centre, on Friday.
The research is being conducted at shopping malls and supermarkets in Yangon and Mandalay,
she said in the press conference at Union of Myanmar Federation of Chamber of Commerce and
Industry.
“The research will cover customer’s habits and obstacles to Vietnamese companies operating in
Myanmar. The results would be submitted on relevant ministries in coordination with UMFCCI,"
said Myo Thant, joint secretary general of UMFCCI.
Myo Thant said Vietnam’s ITPC did another research on the distribution system last year. In a
related development, Vietnam plans to hold Ho Chi Minh City Expo 2014 at Tatmadaw Hall,
Yangon from June 26 to June 30. The event will showcase agricultural equipment, construction
machinery, interior design decorations, leather products, garments, cosmetics and commodities
from over 80 Vietnamese enterprises. The Vietnamese traditional food fair is to take place also.
“Along with the products from Ho Chi Minh City, the Myanmar merchandises will also on display
at the expo. We plan to meet with business corporations in Mandalay too,” said Pho Nam
Phuong. In addition, the Vietnam-Myanmar Trade & Tourism Fair will be held at UMFCCI building
on June 26.
V - Vietnam's GDP forecast to rise greatly after EU free trade deal
VIR - Source Tuoitrenews, 07/06/2014
If Vietnam and the European Union (EU) reach a free trade agreement
by the end of this year, as expected, Vietnam’s economy will benefit the most from a
higher gross domestic product (GDP) growth rate, said a senior EU official.
Vietnam’s annual economic expansion rate, hovering around 5-6 percent recently, may enjoy an
additional 15 percent growth rate every year, Tomaso Andreatta, representative of the European
Business Association in Vietnam (EuroCham), said Thursday at the Vietnam Business Forum
2014 (VBF).
The mid-term VBF 2014, hosted by the Ministry of Planning and Investment in Hanoi, aimed to
offer a platform to discuss both opportunities and challenges and the socio-economic impacts of
the Trans-Pacific Partnership agreement (TPP) and Vietnam-EU Free Trade Agreement (FTA).
The relationship between the EU and Vietnam is growing, not only in politics but also in
development and economic integration. The development of bilateral cooperation in the two fields
was reinforced by the confidence of European investors in the Vietnamese market, which was
reflected in the business confidence index (BCI) in the first quarter of 2014. It jumped from 50 to
59 points, surpassing the middle average for the first time since 2012. After the FTA is signed,
real wages of skilled laborers may increase by up to 12 percent, real salaries of common workers
may rise by 13 percent and exports may go up by nearly 35 percent, Andreatta added.
However, the potential benefits may be undermined if Vietnam does not make a comprehensive
commitment to the terms of international trade and ensure the effective enforcement of these
provisions, Andreatta said, adding that he hoped the Vietnam-EU FTA will be signed by year-end.
It is important for Vietnam to ensure the signing and implementation of the FTA with the EU and
others, such as other regional countries, as the ASEAN Economic Community will be officially
established by 2015.
Andreatta said that protectionist policies need to be quickly removed so that businesses can
adapt to the international standards of quality, price, and branding. However, the EuroCham
representative also stressed their deep concern over the issue of foreign ownership, especially in
the banking sector. The share ownership of foreign investors in Vietnam-listed companies,
excluding securities firms, is still limited to 49 percent under the current regulations. Therefore,
EuroCham urged the Ministry of Finance to ease or remove the limit entirely for foreign investors.
Moreover, in the banking sector, restrictions on foreign ownership rates are not clear. Foreign
investors are not only concerned over the limitation of ownership rates, but also concerned about
the actual control of a credit institution in Vietnam. As a result, EuroCham called for the removal
of the limits of share ownership of foreign investors in domestic banks and increased activities,
presence, and direct control of foreign investors in credit institutions.
The VBF is a policy channel between the Vietnamese government and the international business
community that is held annually with the aim of building a favorable business environment,
attracting investment and promoting sustainable economic development in Vietnam.
Minister of Planning and Investment Bui Quang Vinh said in a press conference to introduce the
VBF late last month that he hoped “Vietnam will receive more candid comments and long-term
sincere commitments, helping the country establish the continued faith of foreign investors
through the mid-term VBF 2014.”
Pinning high hope
The EU will continue to be the most important market for goods exported from Vietnam, JeanJacques Bouflet, Minister Counselor and head of the Trade and Economic Section of the EU
Delegation to Vietnam, said at a business forum on the FTA held by the Vietnam Chamber of
Commerce and Industry (VCCI) in Ho Chi Minh City last month. At the business forum, the
experts said that an FTA between Vietnam and the EU, which is expected to be signed in
October of this year, is likely to benefit businesses on both sides.
Currently, goods exported from Vietnam to the EU are entitled to the EU Generalized System of
Preferences (GSP), a preferential tariff system which provides a formal system of exemption from
the more general rules of the World Trade Organization. However, GSP tariff preferences under
the EU are unstable for regular GSP reviews conducted every three years.
Jean - Jacques Bouflet said the time for Vietnam to define a legal framework for a more stable
relationship in bilateral trade is when the country achieves a strong level of competition in the
international market. "The FTA is certainly an appropriate answer for this because the preference
for Vietnamese products will be guaranteed by a treaty," he said. This will allow Vietnam to enjoy
lower export tariffs than GSP preferential tariff rates when exporting goods to the EU.
If the Vietnam-EU FTA is signed, tariffs for most of Vietnamese export products to the EU will
gradually reduce to 0 percent. In addition, the FTA is expected to have generated greater effects,
such as increased quality investment flows from Europe, the acceleration of the process of
sharing expertise and transfer of green technology, and the creation of more employment
opportunities and an increase in income for the people of Vietnam, he added.
Up to now, Vietnam and the EU have completed seven bilateral FTA negotiations and the next
round of talks is expected to take place this month. According to the VCCI in HCMC, the EU has
surpassed the U.S. to become the largest export market of Vietnam and the second largest trade
partner of Vietnam in 2012. Bilateral trade turnover between Vietnam and the EU in 2013 reached
US$33.6 billion, up 16 percent from the previous year.
Currently, the EU is one of the largest investors in Vietnam, with 1,401 investment projects and a
total registered capital of $18.02 billion spread over various fields such as industry, construction,
and services. According to statistics, Vietnam mainly exports garments, footwear, coffee, furniture
and seafood to the EU, and in exchange receives imports of machinery, medicine, aircraft,
equipment, and vehicles from the EU.
V - HSBC: Manufacturing continues to rise
The Hanoitimes, 05 Jun 2014,
Overall business conditions in the manufacturing sector strengthened in May amid an ongoing
increase in client demand as output increased for the eighth consecutive month amid another
solid expansion in new business, according to the HSBC Vietnam Manufacturing PMI report.
The report released on June 2 said headline seasonally adjusted Purchasing Managers' Index
(PMI) - a composite indicator designed to provide a single-figure snapshot of operating conditions
in the manufacturing economy - posted 52.5 in May from 53.1 in the previous month.
The PMI is based on data compiled from monthly replies to questionnaires sent to purchasing
executives in around 400 manufacturing companies. An index reading at 50 indicates a neutral
level, above 50, a positive level, and below 50, a negative one. Growth of new orders was
recorded for the sixth successive month in May, with the solid rate of expansion only slightly
weaker than April's record high.
Panellists reported that improving economic conditions have helped to support client demand.
New export orders also rose in May, albeit at a slight rate. Higher customer demand led to
another rise in production during the month, the eighth time in a row. Some panellists reported
that purchase of materials in recent months enabled them to raise their output.
Backlogs decreased modestly following a rise in the previous month.The recent changes to
transportation rules again have an effect on the manufacturing sector in May as suppliers'
delivery times lengthen to the largest extent in the survey's history as new tonnage rules meant
that suppliers have to make more trips to deliver the same amount of goods. The rules also
impact the cost of shipping, in turn pushing the rate of input cost inflation up for the second month
running to the fastest since March 2012. Despite the sharp rise in input costs, manufacturers left
their output prices largely unchanged during the month. While some panellists reported having
passed on higher cost burdens to their clients, others indicated that efforts to stimulate demand
led them to reduce their charges. Employment increased for the second month running in May,
though the rate of job creation slowed and was only slight. Higher production requirements led
some panellists to raise staffing levels.
Increased output requirements also led to a rise in purchasing activity during the month. Input
buying has now increased in each of the past nine months, with the rate of growth remaining solid
despite easing from that seen in April. Stocks of purchases decreased modestly as inputs are
used in the production process. Stocks of finished goods also fell marginally following a rise in the
previous month.
Commenting on the Vietnam Manufacturing PMI survey, Trinh Nguyen, Asia Economist at HSBC,
said: "The latest PMI shows that the manufacturing sector in Vietnam is competitive, with activity
still expanding, albeit at a slower pace. The concern really is the added costs to manufacturers,
which come at a time when exporters already incur high logistic costs.
Profit margins are being squeezed, as weak domestic demand makes it hard for manufacturers to
raise output prices despite rising production costs.
"We expect the SBV to keep rates steady to support domestic demand," Nguyen added.
VOV
Int'l Cooperation
V - Foreign firms boost trade promotion in Vietnam
Source VOV, 10/06/2014
The British Business Group Vietnam (BBGV) opened an information
centre in HCM City on June 10, with the aim of creating more trade and investment
opportunities for UK and Vietnamese businesses.
BBGV Chairman Nick Holder said the newly-built centre - part of a cooperation agreement
between the BBGV and the UK Trade & Investment (UKTI).is designed to provide them with
updated information on market research, seeking partners, and trade transactions, he added.
The centre will function as a prestigious venue assisting small-and-medium sized UK enterprises
to operate efficiently in Vietnam with its market research, consultancy, and information services.
The same day, the Italian Chamber of Commerce (Icham) officially announced the name of four
Vietnamese restaurants winning “Golden Q” certificate for their excellent quality- La Hostaria,
Pendolasco Italian Garden Restaurant, Pendolasca Italian Restaurant, and Gourmet Shop
Pomodo.
An ICHAM representative said the certificate honours those Vietnamese restaurants meeting
Italy’s quality standards.
A certificate presentation ceremony scheduled to take place in HCM City on June 12 will provide
an opportunity for Vietnamese and Italian businesses to meet and establish a partnership in
various fields, particularly economics and trade.
Investment
V - Vietnam in top three attractive investment markets in the world
Intellasia | Vnexpress | - 6/19/2014
Last week, the information services firm Frontier Strategy Group (FSG) published Frontier
Markets Sentiment Index on Wall Street Journal. This index shows the interest level of
multi-national large companies in the US and Europe to 70 primitive markets in the world.
Accordingly, the three leading countries are Nigeria, Argentina and Vietnam.
FSG has surveyed 200 member clients, including Coca-Cola, general Electric, Novartis, Dell, and
Akzo Nobel. Matt Lasov – FSB’s Global Head of Advisory and Analytics explained “We have
collected data on countries that these companies are considering to invest further. Gradually, we
will have an overall picture of their priority markets, i.e. which countries they will expand and
which countries will be ignored”.
This survey has both reflected the current attitude of the companies toward primitive markets, and
revealed future developments. The attitude is calculated on the basis of the percentage that a
company will select a certain country into the potential list. If 50 out of 200 corporations eye on a
country, its percentage will be 25 percent.
The survey result also shows a clear difference among regions. Out of 20 leading countries, there
are as many as nine companies in Africa. Alexander Benard – CEO of Schulze Global has set up
a $100 investment fund in Ethiopia. “We think that this country has a huge potential”, he said.
Meanwhile, the South East Asia has one representative – Vietnam with the level of interest of
24.7 percent. The Middle East has three representatives including Saudi Arabia, Iraq and Kuwait.
The Latin America only has two representatives including Argentina and Venezuela.
Myanmar – an attractive investment destination – is gradually losing its appeal when it was only
chosen by four percent of the companies. This shows that leaders in these companies are not
ready enough to welcome foreign investment in all sectors.
Besides, it is no surprise when Ukraine is the country that receives least attention, with 12.5
percent decrease. Though, investors still have profits in the financial market, they do not consider
it as a long-term option.
In general, the attention of corporations to primitive markets has dropped. Eighty countries in the
survey have reduced their percentage compared to last year.
Lasov says that the reasons are not attributed to the background things of these countries but
mainly due to the fact that these companies have started to go back to developed countries.
“Over the last few years, developed countries have recovered and gained the attention of the
companies. Meanwhile, companies have realised that the population in some primitive markets
are too little. Therefore, it seems not worth to develop or manage a business in such small
markets”, he said.
Success – Telegram:
V - Unilever Vietnam has become of the most successful
foreign invested investor in Vietnam
V - Korean investment grows in textile and garment sector
VIR, 19/06/2014
Korean investors are showing greater interest in Vietnam’s textile and garment sector.
In early June, a big fibre manufacturing plant was launched in the southern province of Dong Nai,
marking a growing presence of Korean investment in Vietnam’s textile and garment sector.
The $52 million project, belonging to Dong-IL Vietnam Limited under the Dong-IL group, is
located in Dong Nai’s Loc An-Binh Son Industrial Park and is Dong-IL’s first project in the country.
The plant has an estimated capacity of 9,000 tonnes per year and will come on-line mid next year
to supply the domestic market, as well as other Asian markets. Dong-IL Vietnam’s managing
director Suh Min Sok said he expects the project to help attract other Korean investors to the
Vietnamese market.
Unlike Dong-IL, Sea-A group has been operating in Vietnam for nearly six years and has a
garment plant based in the north-central province of Thanh Hoa. It is run by Winners Vina
Limited, a unit under Sea-A. The $12 million facility turns out seven million products a year and
has a workforce of 3,000.
Winners Vina is already envisaging a second garment plant in Vietnam, in which it will
invest $15 million and employ 6,000. Its products will primarily be for export. “The move is
to satisfy growing orders from US importers, mostly leading retailers such as Target,
Walmart, Kohls, Kmart, Sears and Tesco,” said a company source.
With more than 500 businesses based in Vietnam and nearly $2 billion in total committed capital,
Korean investment has helped bolster Vietnam’s textile and garment industry, and in particular
helped increase export value to Korea, which is now Vietnam’s fourth largest export partner in
terms of value, after the US, the EU and Japan.
Vietnam’s textile and garment exports to Korea have jumped sharply in recent years, from less
than $300 million in 2009 to nearly $1.2 billion in 2013 and an estimated $750 million in the first
five months of this year.
This has given Vietnam’s textile and garments a 24.2 per cent market share in Korea, only behind
China with 43.2 per cent.
The Korean firms who led exports to their home country in April-May 2014, based on Vietnam’s
General Department of Customs statistics, included Unico Global Vietnam, PS Vina, Daesung
Vina, Sung Woo Vina, Shinsung Vina, and I&Y Vina.
The fifth negotiation round for the Vietnam-Korea free trade agreement (FTA) was wrapped up in
late May and both sides have reportedly ramped up efforts to conclude the talks by October this
year.
The Vietnam Textile and Apparel Association forecasted Korean investment in Vietnam could
make a major leap following ratification of the FTA.
V - Vinatex set to launch IPO on July 22
Source SGT, 18/06/2014
Vietnam National Textile and Garment Group, or Vinatex, will launch an initial public
offering (IPO) on July 22, one year slower than earlier scheduled.
Vinatex said on June 16 that it plans to hold a pre-flotation briefing on June 23 and organize
seminars to introduce investment opportunities in the group in Hanoi and HCMC on July 2 and 4
before the IPO on the Hochiminh Stock Exchange.
According to Vinatex’s equitization plan approved by the Government, the group has total
chartered capital of VND5 trillion. After the group goes public, the State will retain a 51% stake
while 24% will be offered to strategic investors, 24.4% put up for public tenders and 0.6% sold to
employees.
Vinatex has completed divestments from financial and credit institutions, recovering over 85% of
capital in the sectors so far in line with Decision 320/QD-TTg of the Prime Minister.
Vinatex is expected to obtain VND25.2 trillion in revenue in the first half this year, up 10% yearon-year. Its domestic earnings are put at VND11 trillion, a year-on-year increase of 10%.
Vinatex’s export revenue is estimated to reach US$1.62 billion in the first half of this year, up 15%
over the year-ago period. Its major exports include the United States, Europe, Japan and South
Korea, with shipments to South Korea gaining the highest growth rate of 30.1% to US$874
million.
Vinatex said outbound sales from the United States had soared 14.5% and accounted for up to
44.5% of the group’s total export revenue in the January-June period.
O - Singapore- Potential Market for Vietnamese Agricultural Products
VCCI, June 18, 2014
"Many Singaporean investors tend to invest in the agro-processing and seafood sectors in
Vietnam, especially in the Mekong Delta". It is mentioned at the Vietnam-Singapore
Business Forum 2014 (VSBF), held recently in the Ho Chi Minh City. The event was hosted
by the Vietnam Chamber of Commerce and Industry (VCCI), with the support of the
International Enterprise Singapore (IE Singapore), the Singapore Embassy in Vietnam, the
Singapore Business Federation (SBF), and the Vietnam Ministry of Planning and
Investment of Vietnam (MPI).
According to the report presented at the forum, the bilateral trade turnover of Vietnam and
Singapore reached US$8.36 billion in 2013 and has remained stable in the last 3 years. Vietnam
mainly exports such commodities as rice, seafood, pepper, cashew nuts, fruits and vegetables,
and coffee; in 2013, the export turnover of these commodities is around US$360 million,
accounting for 13.5 percent of the total export turnover. And the import turnover of Vietnam from
Singapore is less than about 4.4 percent of the total import value. In the first four months of 2014,
the export turnover has reached US$159 million, in which, coffee is the most vibrant export
commodity. In just April 2014, the coffee export earned US$5.2 million, more than 3 times that of
2013.
According to Vo Hung Dung, Director of Can Tho Branch of VCCI (VCCI-Can Tho), Singapore is
a potential market for the high value agriculture products. Singapore is not only a market, but also
the important trade port of Vietnam to export agricultural products to the world. Singapore's
investment in the agro-processing sector can create new channels to export agriculture and
fishery products of Vietnam to many countries around the world. This market is also connected to
the major markets around the world. However, this market also has certain requirements for
consistent quality, the origin of products, beautiful packaging, and high quality. Therefore, if
Vietnamese businesses want to penetrate this market, they need to understand carefully and take
steps accordingly.
Sharing views on the investment environment, Ms Edlyn Khoo, Centre Director of IE Singapore
Office in Ho Chi Minh City, said the governments of two countries upgraded the relations to
strategic partnership in September, 2013. This has been and will be bringing many business
cooperation opportunities for enterprises of the two countries. The Singaporean companies
specialising in food processing, hospitality, and fast food are doing well in Vietnam and are
expanding their business. According to Ms Edlyn Khoo, Vietnam is a country with strong
economic fundamentals, including the increasing number of working age population and rich
mineral resources. The Singaporean companies are the potential partners, which bring both of
services and expertise to improve the strength of Vietnam. Meanwhile, the business environment
and stable safety continue to be a key factor in the investment decisions. The deeper cooperation
between the two sides will not only benefit businesses, but also gain positive influence on the
local community through the creation of employment opportunities and knowledge transfer.
Emphasising the potential of Mekong Delta, Vo Hung Dung, Director of VCCI - Can Tho,
confirmed that along with the development of energy and tourism, the Mekong Delta will be the
major centre of rice production and processing and exploitation of the aquaculture, fisheries and
seafood, which greatly contribute to the exports of agricultural and fishery products of Vietnam.
The Mekong Delta produces over 40 percent of agricultural and fishery products of the country
and plays a key role in ensuring national food security. This is also the region that accounts for
nearly one fifth of the total consumer and retail goods, 10 percent of the industrial outputs and
nearly 10 percent of businesses throughout the country. The Vietnam- Singapore Business
Forum 2014 is an important platform for the two countries to cooperate in the field of investment.
Mr Norman Lim, President of Singapore Business Group, said that Singapore has imported many
seafood products and processed agricultural products from Vietnam, particularly from the Mekong
Delta. Therefore, it is necessary to trigger the establishment of Vietnam and Singapore Industrial
Park (VSIP) in the Mekong Delta to develop strong ties between the two countries in the fields of
agriculture, forestry and fishery.
In regard to the issue of how to connect two economies towards a stronger ASEAN community,
Dr Doan Duy Khuong, Vice President of VCCI, said the VSBF 2014 is an important event, which
contributes to a more comprehensive partnership between Vietnam and Singapore in various
fields, including production and processing of agricultural, forestry and fisheries. The VSBF 2014
will continue to connect the two countries and create a solid foundation for enterprises to explore
new investment opportunities, especially in the context of the Agreement on Strategic Partnership
being signed, and as the ASEAN countries are heading towards an ASEAN Economic
Community by 2015.
It is known that Singaporean enterprises have made several field trips to Da Lat in the past two
years to achieve two business objectives of importing agricultural products from Da Lat and
transporting machinery and equipment from Singapore to Vietnam. Some Singapore companies
have also directly researched a number of provinces in the Mekong Delta, such as Can Tho, Vinh
Long and Ca Mau to survey the probability of investing in manufacturing of food, fisheries and
aquaculture.
V - China and Hong Kong Increase Investment in Vietnam
Vietnam Briefing, June 16, 2014 b
HANOI – Vietnam’s Department of Foreign Investment (DFI) has reported that, in the first
five months of this year, the country saw a steep rise in foreign direct investment (FDI)
capital from Hong Kong and China.
Thirty-eight countries and territories invested in Vietnam between January and May. Hong Kong
contributed US$630 million in newly registered FDI, making them the second largest investor into
Vietnam, and accounting for 11.5 percent of total investment into the country. Hong Kong’s FDI
was a fourfold increase over its investment during the same period last year.
China ranks as the seventh largest foreign investor during the same period, with a total
investment of US$300 million – a threefold increase year on year.
Made in Vietnam
According to the DFI, investment into the textiles and garment industry rose for the first time since
mid-2012, with large-scale projects seeing investment from businesses located in China, Hong
Kong and Taiwan.
RELATED: Foreign Garment and Textile Manufacturers Weave Their Way to Success in Vietnam
An example of a key foreign investment can be seen in the decision of the Economic Zone
Management Board of Long An province to grant an investment certificate for Hong Kong’s Huafu
Company Ltd. to invest US$136 million in a textile and dying plant. This project is expected to
break ground next year. The plant will occupy 20 hectares and manufacture 300,000 tons of fiber
and dye 20,000 tons of cotton annually.
Additionally, there are a number of Chinese and Hong Kong textile and garment companies
already present in Vietnam who have announced plans to expand their businesses and
investments.
The Trans-Pacific Partnership (TPP) is also spurring the growth in investments for the textile
industry. Out of the 12 countries negotiating the deal, Vietnam is predicted to benefit the most
due to a clause that would cut tariffs on textiles and apparel, which are among the nation’s top
exports.
To take advantage of the forthcoming tax reductions, foreign companies are shifting their
factories to Vietnam. Chinese investors are boosting their investment in Vietnam because they
want tariff-free access to the United States. Additionally, Vietnam boasts cheap abundant labor
and is improving its ease of doing business.
Building Vietnam
Besides the textile and garment industry, China and Hong Kong investors have also increased
their level of investment in Vietnam’s real estate market.
Vietnam was recently names by U.S.-based Association of Foreign Investors in Real Estate as
the fourth emerging marketing in the world for property investments. A proposed law to allow
foreign ownership of real estate is carefully being studied by the Vietnamese government in order
to further boost the local property market.
Two key investment projects are the US$200 million apartment building project in Binh Thanh
District in HCMC by the Hong Kong-based Sunwah Group, and China’s Texhong Group’s
US$215 million project to develop infrastructure in Quang Ning province’s 660-hectare Hai Ha
Industrial Park.
L - WORLD BANK to boost LAOS SMEs
Vientane Times, June 14, 2014
The World Bank approved a fund with a goal to support the growth and expansion of small and
medium enterprises in Laos. The financing comes in a US $10 million in credit and US $10 million
grant which is hopefully to help diversify the nation's economic base. The loan and grant will allow
SMEs in Laos to easily access funds thereby expanding their business operations and making
jobs as well as income for the nation.
Less than 20% of SMEs in the matopm can access long-term credit which makes it difficult for
businesses to compete against other SMEs in the area, according to the World Bank.
The SME Access to Finance Project goal is to give long term funds with which SMEs can expand
their business premises, buy equipment, upgrade technology infrastructure, and scale up
business operations. The project will be executed by the Department for Small and Medium
Enterprise Promotion as per the direction of the Lao Ministry of Industry and Commerce.
The project will be implemented by giving a line of credit to commercial banks for the purpose of
giving long-term credit to SMEs in local currency. The World Bank and the international finance
Corporation will support the establishment of a risk sharing facility to encourage commercial
banks to lend with restricted collateral.
V - More foreign investors keen on Vietnam’s hotel sector
Thanh Nien News, June 13, 2014 10:01
A luxurious resort in the central city of Da Nang. Photo credit: baodanang.vn.
Vietnam’s hotel industry is becoming more attractive to foreign investors thanks to better hotel
quality, improved infrastructure and brighter economic outlook, according to a CBRE report.
As prices continue to rise in Hong Kong, Singapore and Tokyo, investors are now propelled to
look for quality hotels growing in Southeast Asia, real estate services firm CBRE said in its recent
report.
However, they have interests only in investment opportunities with good and attractive yields and
without many risks.
Robert McIntosh, executive director of CBRE Hotels in Asia Pacific, said, “The longer term
outlook [for Vietnam’s hotel sector] appears positive at present. The quality of the infrastructure
and hotels has improved considerably over the last few years and this has led to a more stable
and resilient tourism market.”
“Hotel performance is expected to improve in the medium term and foreign investors are
increasingly attracted to the opportunities and returns Vietnam offers,” he said.
Hotel occupancy across Vietnam has strengthened over the last three years. Occupancy rates in
Hanoi and Ho Chi Minh City are now inching closer to other major cities such as Jakarta and
Kuala Lumpur, according to the report.
Hotel supply for both Hanoi and HCMC is expected to increase a total of 8 percent over the next
three years. This rate is less than in Kuala Lumpur and Jakarta where supply may grow by 20
percent and 40 percent, respectively.
Meanwhile, local tourism demand in Vietnam has improved between 7 and 8 percent each year
over the last three years.
International tourism demand has also grown, 13.9 percent in 2012 and 11 percent in 2013. The
first five months of this year showed a more impressive figure -- more than 26 percent.
One of the reasons for the interest in Vietnam tourism could be attributed to Thailand’s political
turmoil as tourists shift their visits from Thailand to other Southeast Asian countries.
V - Developers remain uncertain of local property market
VNS Hanoi, June, 12 2014
Statistics by HCM City Department of Planning and Investment revealed that enterprises
only owned 15–20 per cent of the total investment capital, and the remaining 70–80 per
cent capital was resourced from banks.
HA NOI (VNS) — Viet Nam's property market is revising but depending too much on the financial
market, which makes investment still risky, so developers should take prudential steps towards
the market.The warning was delivered at a member meeting of Viet Nam Real Estate Association
(VNRE) earlier this week.
Statistics by HCM City Department of Planning and Investment revealed that enterprises only
owned 15–20 per cent of the total investment capital, and the remaining 70–80 per cent capital
was resourced from banks. The system's outstanding loans allocated in the real estate sector as
of December 2013 reached VND268 trillion (US$12.6 billion), and bad debts were escalating at
fast paces, stated Tran Kim Chung, deputy head of Central Institute for Economic Management.
On the contrary, ratio of Return on Asset and Return on Equity of real estate, construction and
construction material production companies is 50 per cent lower than the average ratio of the top
500 enterprises in Viet Nam. However, their financial leverage ratios are 50 per cent higher than
the average ratio.
"No country earning very low income per capita uses such high financial leverage ratio like Viet
Nam," independent economist Le Xuan Nghia noted, adding: "Risks caused by financial leverage
are unpredictable." The dependence on the financial market becomes worse when the money
movements go through downturn periods. In the last decade, there were four financial crises and
this pace was a real danger to all markets, especially real estate. Banks tightened lending policy
and charged high interest rates, which pushed many property investors into troubles, such as
debt burden, stockpile or no capital for project completion. "That is the reason why real estate
companies should never together inflate prices of real estate projects despite a recent rebound.
Pricing must be done very carefully," Nghia pointed out.
Experts noted that developers should focus on feasible projects and stop digging for new
projects, and also cut average apartment price to VND500–700 million ($23,580–33,000) each,
and to VND2–3 billion ($94,300–141,500) per terrace house.
Potential albeit risky
Despite obvious risks, a large number of economists remarked that the real estate market of Viet
Nam appeared attractive after bottoming out and showing signs of recovery, the government
news portal reported.
Dang Duc Thanh, dean of the Viet Nam Economists Club, stated that real estate prices in Viet
Nam fell by a half against 2007 and costs of numerous departments bottomed out.
Experts assumed that in the period from the third-quarter of 2014 to early 2015, the domestic real
estate market will improve if the government continues to support enterprises to handle high
inventory levels and non-performing loans and raise liquidity for the real estate market. According
to Neil MacGregor, managing director of Savills Viet Nam—a real estate developer, the domestic
real estate market is in an attractive period. Neil MacGregor claimed that Viet Nam was standing
at the bottom point of a real estate cycle while other Asian markets remained at the other side
and are likely to be on the decline in the next few years. Hence, Viet Nam is believed to serve as
an important destination for investors in Southeast Asia. He also revealed that customers of
Savills Viet Nam from Japan, Singapore and the Republic of Korea were intending to join longterm and large-scale projects on housing development in Viet Nam.
Phan Thanh Mai, VNRE's general secretary, stated that eight commercial banks were working on
a pilot programme to connect investors, bidders, material providers and banks to remove
difficulties and handle high inventory levels in the real estate market.
The move has defrosted the real estate market. — VNS
V - Important destination for real estate investors
Source VGP, 09/06/2014
A large number of economists said that the real estate market of Viet Nam is attractive
after bottoming out and showing signs of recovery.
Mr. Dang Duc Thanh, Dean of the Viet Nam Economists Club said that real estate prices in Viet
Nam fell by a half against 2007 and costs of numerous departments bottomed out.
In the period from Q3, 2014 to early 2015, the domestic real estate market would recover if the
Government continues to support enterprises to handle high inventory levels and non-performing
loans and raise liquidity for the real estate market so that buyers and sellers would be able to
meet each other.
According to Mr. Neil MacGregor, Managing Director of Savills Viet Nam – a real estate
developer in Viet Nam, the domestic real estate market is in an attractive period.
Mr. Neil MacGregor said that Viet Nam is standing at the bottom point of a real estate cycle when
other Asian markets remain at the other side and are likely to be on the decline in the next few
years. Hence, Viet Nam serves as an important destination for investors in Southeast Asia.
He also revealed that customers of Savills Viet Nam from Japan, Singapore, and the Republic of
Korea are intending to join long-term and large-scale projects on housing development in Viet
Nam.
Phan Thanh Mai, Secretary General of the Viet Nam Real Estate Association said that eight
commercial banks are piloting a program to connect investors, bidders, material providers and
banks to remove difficulties and handle high inventory levels in the real estate market. The move
has defrosted the real estate market.
V - Samsung plans $1 bln factory in Ho Chi Minh City
Thanh Nien News, June 06, 2014
South Korean electronics giant Samsung's build third factory in Ho Chi Minh City with the
total investment of over US$1 billion.
The plant will be established at the Saigon Hi-Tech Park in District 9, Tuoi Tre (Youth) newspaper
quoted Le Manh Ha, vice chairman of HCMC People’s Committee as saying on Thursday.
An unnamed official at the Ministry of Planning and Investment told the newspaper that
Samsung’s latest plant will be designated for the production of LCD screens and relevant
components. He said that in order to be eligible for preferences like tax-breaks and land rentals
as stipulated in Vietnam’s Law on High-tech Technology, Samsung has made several
commitments--including the construction of a research and development center in HCMC.
Samsung also agreed to spend at least 1 percent of its annual income on R&D activities for three
years after plant goes into operation, and increase that rate to over 1 percent in its fourth year,
the newspaper reported.
Under the agreement, at least 60 percent of Samsung’s annual revenues will have to come from
its hi-tech products during the factory's first three years of operation--though that rate must rise to
70 percent in its fourth year.
Samsung opened its first factory in Vietnam in 2009 in the northern province of Bac Ninh with an
initial investment of $670 million that was later adjusted upwards to $2.5 billion.
Last March, it started building another northern factory in Thai Nguyen Province with an
investment of $2 billion. Both of the factories are expected to export $35 billion worth of Samsung
cell phones this year, Tuoi Tre reported.
V - US businesses seek investment opportunity in Vietnam
The Hanoitimes. 03 Jun 2014, 10:07
Representatives of leading US businesses met with Vietnam
Fatherland Front (VFF) Central Committee President Nguyen Thien Nhan on June 2,
expressing their desires to deeper penetrate the Vietnamese market.
The businesses including those operating in insurance, energy and education and training said
during their one-day visit, they are scheduled to discuss with government officials and the local
business community measures to boost bilateral trade relations and accelerate the Trans-Pacific
Partnership (TPP) agreement negotiations.
They expected to work with ASEAN governments and business partners, to speed up the
establishment of the ASEAN Economic Community (AEC) in 2015 as planned.
VFF President Nhan briefed the guests on Vietnam’s socio-economic development, its
competitive advantages, and major development goals and orientations by 2020.
Nhan and US executives examined Vietnam’s economic situation, its investment opportunities,
ASEAN community building efforts, and TPP negotiations. The US delegation’s visit to Vietnam is
conducted by the US-ASEAN Business Council which is the leading organisation in promoting
US-ASEAN trade relations. Its members include the US’s largest groups which are operating in
ASEAN member states.
VOV
V - Dong Nai attracts $600 million in FDI
VOV, 02/06/2014
In the five months leading up to June 1, southern Dong Nai province has garnered US$588.2
million in foreign direct investment (FDI), according to the provincial Department of Planning and
Investment.
The Department reported that newly committed FDI for 28 new projects amounted to nearly
US$248 million while supplemental capital for 25 existing projects tallied in at more than US$340
million.
FDI capital for the five-month period equates to 140% of that for the same period last year and
amounts to 70% of this year’s plan
The investment license for a single US$4.3 million FDI project was revoked due to slow
implementation during the period.
In total, 1,424 FDI projects with cumulative committed capital of US$24.965 billion have been
granted licences in the province.
Mai Van Nhon, Vice Director of the management board of Dong Nai industrial parks, said the
province is working with relevant departments and agencies to conduct trade and investment
promotion programmes in the US and he fully expects FDI to continue its upward trend for the
remainder of 2014.
The delegation has plans to work with the US Walmart Corporation through the American
Chamber of Commerce (AmCham) and to seek US investment in the retail industry,
supermarkets and material production zones to serve the local garment and footwear sectors.
Markets & Prices
V - Vietnamese fashion brands undergoing great hardships
VietNamNet Bridge, 22/03/2014
Not only facing big difficulties because of the weak purchasing power, Vietnamese fashion
firms also have to compete fiercely with Chinese low-cost products to survive.
Fashion shops are deserted despite the big sales.
Shabu Kichoo restaurant was full of customers, mostly office workers, during the lunchtime. The
Japanese styled restaurant chain proves to be very prosperous with three shops opened in HCM
City so far. The owner of the chain is a well known person in the fashion industry, who founded
Foci, a well known Vietnamese fashion brand, 15 years ago. Making its debut in 1999, targeting
medium class customers, Foci had been growing very rapidly with 60 shops opened by 2007.
However, Foci’s network has gradually got narrowed over the last two years. The company once
saw the turnover tumble by 50 percent. In late 2012 and early 2013, the owner of the Foci shop
on Hai Ba Trung Street in HCM City had to leave the retail premises for another place, where he
set up an outlet.
Ngo Thi Bau, General Director of Nguyen Tam Company, the owner of Foci brand, has decided
to shift her business to restaurants and international schools. Bau has set up three restaurants so
far, including the ones at Kumho and Vincom buildings, and the other newly opened in district 7.
Bau still continues her job in the fashion industry. However, Foci now does not spend money to
develop the retail network any more, but makes uniforms to the outsourced orders by the partners
and tries to sell products via Internet. She said that investors always need large retail premises to
sell fashion products, while the retail premises rents have been increasing rapidly, thus having
put big difficulties for Foci.
Especially, Foci, like many other fashion firms, have to struggle fiercely with the low-quality
Chinese imports and counterfeit goods. The smuggled goods, entering Vietnam through the
border gates have been selling very well thanks to the surprisingly low prices.
“If the Chinese products were imported through official channels, they would not be able to
compete with Vietnamese products,” the founder of Foci said.
A senior executive of Viet Tien Garment Company also admitted that Viet Tien has to scale down
its production because of the slow sale.
He said though Viet Tien has spent money on the brand recognition system and asked for the
competent agencies’ intervention, the company has yield to counterfeit goods. “We have to
narrow the domestic retail network,” the executive said, adding that Viet Tien can find 150 shops
that sell imitated Viet Tien products every year.
Meanwhile, Le Tien Truong, Deputy General Director of Vinatex, the Vietnamese biggest garment
group, complained that the purchasing power is getting weaker in the context of the economic
downturn.
The domestic market got the growth rate of 15 percent in 2013, much lower than the 30 percent
growth rate in 2012. The weak demand has made a lot of fashion brands fall into a bad situation.
In 2011, The Blue signed a contract with Garmex Saigon, under which the former distributes the
products made by the latter. However, due to the slow sales, The Blue had owed a big sum of
money to Garmex Saigon.
NCDT
V - Retail chains live well, separate shopping malls get worn out
VietNamNet Bridge, 21/03/2014
While a lot of shopping malls in Hanoi and HCM City are deserted with idle premises, big
retail chains have been fully occupied, though the business of some tenants does not go
well. Famous fashion brands continue expanding business
The first Robins center of the Thai Central Group on the 10,000 square meters on the B1
basement of Royal City Shopping Mall in Hanoi is getting ready.
Alan Thomson, President of Robinson Department Store Public, which manages Robins center in
Vietnam, said about 100 fashion brands would be present here. These include Puppies and
Scholl (shoes), “Gift Gate Sanrio” (children’s products), or Supersports, a Thai sportswear brand.
Robins would also make debut in HCM City by the end of this year.
The Japanese leading retailer Aeon has opened its first shopping mall in Vietnam, located at
Celadon City urban area in Tan Phu district, HCM City. Yasuo Nishitohge, General Director of
Aeon Vietnam, said besides the one-stop shopping model, Aeon Mall Tan Phu Celadon also
offers another business area, where 120 stalls are ready for lease. He affirmed that besides the
international famous brands, there would also be the well known brands from Japan, including
Scarlette or Sicily underwear. The retail chain plans to develop 20 shopping malls in Vietnam.
Parkson is believed to be one of the earliest retailers in the Vietnamese market. When it set up its
first shopping mall in Vietnam eight years ago, it took hundreds of international fashion and
cosmetics brands, now available at 75 Parkson’s shopping malls in Malaysia and China, with
itself to Vietnam.
Parkson Vietnam targets the medium and high class consumers in Vietnam, especially the youth
who love branded goods. Therefore, it has been continuously inviting more and more new brands
to Parkson’s shopping malls.
Encouraged by the high annual growth rate of 20 percent in the first years in Vietnam, Parkson
plans to open two more shopping malls a year in provinces and cities.
While a lot of shopping mall developers fail to attract tenants, the luxurious foreign shopping malls
still can lure the most famous international brands. It seems that the economic crisis does not hurt
them.
Though the majority of Vietnamese have to fasten their belt in the economic difficulties, the
shopping malls still have been full of visitors and buyers over the last few years.
Shopping mall developers, businessmen hold hands to advance
A marketing expert noted shopping mall developers and the tenants, who can occupy the retail
premises on advantageous positions, usually sign the “fellow-traveler” agreements, i.e. that the
tenants would follow the developers to the new shopping malls.
The owner of a fashion shop at a shopping mall in district 7, HCM City, said she has set up a new
shop there after gaining successes at the shopping malls of the same developer in district 1 and
5. She said the shopping mall manager has successfully built up a strong brand, which has
become well known among the youth who loves fashionable and branded goods.
“While others only focus on attracting as many tenants as possible, the developer has always
been trying to help tenants develop their business by running sale promotion campaigns,
organizing events to attract visitors or renovating interior decoration,” she said.
TBKTSG
V - AutoExpo 2014 kicks off in Ha Noi
VIR, 20/06/2014
The steady recovery of the Vietnamese economy, increasing incomes, improvement in
transportation infrastructure conditions and rising demand for vehicles would facilitate
development of automotive and motorcycle markets.
Visitors browse at the AutoExpo 2014 which opened yesterday in Ha Noi. The four-day
exhibition displays different types of transport vehicles and products made by support
industries. - Photo Vnexpress.net
Deputy Minister of Industry and Trade Ho Thi Kim Thoa said this during the 11th International
Exhibition on Automobile and Supporting Industry (Viet Nam AutoExpo 2014), which began
yesterday in Ha Noi.
The four-day exhibition displays different types of transport vehicles assembled or imported by
domestic companies as well as products of some support industry enterprises in Viet Nam,
Japan, South Korea, India, Thailand, Singapore and Malaysia in 400 booths.
The success of Viet Nam AutoExpo 2014 would create a favourable environment for foreign and
domestic firms to seek new trade partners and customers, while making effective contributions to
trade promotion and better supporting enterprises in these industries, Thoa said.
Viet Nam would see the sale of 166,000 – 235,000 new cars in the domestic market by 2015, she
said, adding that this figure is likely to reach above 830,000 by 2025.
Meanwhile, the domestic motorcycle market was now the fourth-largest in the world after China,
India and Indonesia and domestic motorcycle sales for 2020 was forecast at 33.5 million. The
motorcycle industry's development strategy, which was approved by the government in 2008,
determined that Viet Nam would become a strong motorcycle producer and become a regional
centre for the design, production and assembly of motorcycles.
Source VNS
V - Auto sales stay strong in May
Source SGT, 12/06/2014
Sales of members of the Vietnam Automobile Manufacturers’ Association (VAMA) continued
rising high last month with nearly 10,000 automobiles sold.
A Toyota Fortuner is seen on the street. Toyota has lost its first position in the local auto market
to Thaco for four months on end - Photo: Le Hoang
VAMA has yet to release the official figure. However, according to statistics of VAMA members,
they sold around 9,850 autos in total last month, up by nearly 1,650 units year on year and
roughly equivalent to the figure recorded in April.
Notably, Truong Hai Auto Corporation (Thaco) maintains its strong grip in the first position. Thaco
sold 3,568 units last month, up around 50 units compared to April and nearly 1,000 units
compared to last year’s same period, and held a market share of 36.2%.
Meanwhile, the sale volume of Toyota Vietnam was around 2,800 units in the same period and
accounted for 28.4%. Toyota had for many years on end took the lead in the domestic market.
This is the fourth month in a row Thaco has topped the sale chart since the year’s beginning with
a total of over 14,360 units sold.
Other members of VAMA also posting high sales in May are Ford Vietnam with 932 cars (up 314
units), GM Vietnam 412 cars (up 84 units) and Honda Vietnam 457 cars (up 170 units). Overall,
VAMA members sold around 44,100 units in total in the year’s first five months, rising by nearly
9,300 units against last year’s same period. Sport utility and multi-purpose vehicles sold well in
the period with 10,650 units, up 33%.
In related news, Toyota Vietnam on June 10 unveiled Yaris 2014, the completely built-up
hatchback imported from Thailand. The 1.3G and 1.3E editions of Yaris 2014 are priced at
VND669 million and VND620 million respectively. Toyota Vietnam targets to sell 120 Yaris cars
each month to increase its market share in the compact hatchback segment. Three years after
Yaris was launched in Vietnam, as many as 2,500 units have been sold.
V - Good times ahead for Vietnam hotel industry
Business Times, Jun 10th, 2014
Demand for hotel rooms in Viet Nam has grown at 7-8 per cent a year for the last three years,
and occupancy rates in large cities are catching up with those in major cities across the region, a
seminar heard in HCM City yesterday.
A report by real estate consultancy CBRE tabled at “Hotel Investment & Management in Viet Nam
– Lessons from Across Asia” also said there is greater interest in investing in the country’s hotel
sector partly due to the improving outlook of the Vietnamese economy.
Genuine buyers are becoming apparent, especially with investor interest in looking for quality
hotels growing in Southeast Asia, it said. Buyers are propelled to look for investment
opportunities outside of Hong Kong, Singapore, and Tokyo as prices continue to rise in these
countries and investors try to identify good and attractive yields.
International tourism has been growing in Viet Nam, albeit at slowing rates, over the last three
years. In the first five months of 2014 it has skyrocketed to over 26 per cent. One of the reasons
for the interest in Viet Nam could be attributed to Thailand’s political turmoil as tourists shift their
gaze to other Southeast Asia countries.
Hotel occupancy rates across Viet Nam have generally been strengthening over the last three
years. Occupancy rates in HCM City and Ha Noi are now inching closer to that of cities such as
Jakarta and Kuala Lumpur. While there is an increase in hotel supply predicted for both Ha Noi
and HCM City over the next three years – around 8 per cent in total – this is less than the number
of projects proposed for Kuala Lumpur and Jakarta, where supply may grow by 20 per cent and
40 per cent respectively if all the proposed projects proceed.
Resort destination Da Nang has performed particularly well over the last few years but its
exposure to the China market may present challenges in the very short term.
Robert McIntosh, executive director, CBRE Hotels, Asia Pacific, said: “The longer term outlook
appears positive at present. “The quality of the infrastructure and hotels has improved
considerably over the last few years and this has led, and will continue to lead, to a more stable
and resilient tourism market. “Hotel performance is expected to improve in the medium term and
foreign investors are increasingly attracted to the opportunities and returns Viet Nam offers.”
The conference moves to Ha Noi today and hotel operators, lawyers, financiers, and consultants
will continue to discuss the climate of investment in Viet Nam. — VNS
C - Iconic English Automaker Rolls Into Cambodia
The Cambodian daily, June 10, 2014
Rolls-Royce, one of the world’s most lavish car manufacturers and distributors, on
Monday announced its official entry into the Cambodian market, naming the local HGB
Group Co. Ltd. as its sole distributor.
And while 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.
Models on Monday stand beside the Rolls-Royce Ghost, a $450,000 car that will be available in
Cambodia once construction of the company’s showroom is complete later this year. (Siv
Channa)
“We are committed to see this brand succeed in Cambodia,” Ray Long, managing director of
HGB Group, told a crowd of about 100 people Monday during a news conference announcing the
partnership at the Sofitel Hotel.
The HGB Group, which is owned by Cambodian businessman Ngov Leang Houth, is currently the
distributor for automakers Mazda and Kia.
Paul Harris, Asia Pacific regional director for Rolls-Royce Motor Cars, said Monday that people in
Cambodia had for years been reaching out to the company and noted that some Cambodians already own a Rolls-Royce car. “We know there is quite a high interest in Cambodia,” he said. But
Mr. Harris declined to say how many cars the company expects to sell yearly in Cambodia or
disclose its target for the market. “We don’t release specifics,” he said. Mr. Harris said the
contract between Rolls-Royce Motor Cars and the HGB Group was for five years and that four
cars would be on display later this year when the 465-square-meter showroom opens in Phnom
Penh’s Veal Vong commune.
Two of the cars on display will be the four-door Rolls-Royce Ghost and the sportier two-door
Rolls-Royce Wraith. Mr. Harris said the Ghost in Cambodia would start at $450,000, including
taxes.
Cham Prasidh, senior minister and minister of industry and handicrafts, said Monday that 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 now in Cambodia who have money to buy these
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 that Mr. Prasidh estimated
there were more than 10 Rolls-Royce cars in Cambodia.
V - Hanoi named in Asia-Pacific top crowded retail markets
Source VNS, 06/06/2014
Hanoi has been listed in the top three cities with the most crowded retail market in the
Asia-Pacific region in 2014, after China's Beijing and Shanghai.
A new study on Crowded Level of retail markets in the Asia-Pacific region by commercial real
estate firm CB Richard Ellis, showed that China's Beijing and Shanghai took first and second
places in the rank respectively.
Vietnam's capital – Hanoi – was also ranked 13th in the list of 19 most crowded retail markets in
the world. The French capital –Paris – tops the list, followed by Tokyo and Hong Kong. The study
also revealed that Hanoi, HCM City and Danang City were among 10 cities where retailers
planned to open the highest number of shops in 2014. Hanoi accounted for 36% of those, which
was equal to Berlin and Shanghai. This is the third consecutive year that Hanoi has been listed in
the top 10 cities which attracted new brands.
The firm said retailers overall have been focusing on more mature markets that already have a
strong retail footprint. Only one of 19 global cities – Hanoi – that CBRE ranked was not a mature
retail market.
There were 18 mature retail cities on the list in 2013 as compared to 14 in 2012. The firm defined
mature retail cities as those with 25% or more of the 334 retailers that CBRE tracks.
V - First Lamborghini showroom to be opened next month
Business Times, Jun 5th, 2014
CT-Wearnes Vietnam Co. Ltd. has been chosen as the first distributor of Lamborghini cars in the
local market, with a showroom for this luxury car brand to be opened at Interserco Trade Center
in Hanoi this month.
In addition to distribution, Automobili Lamborghini SpA has also authorized CT-Wearnes Vietnam
to provide maintenance service for the automaker in Vietnam.
Pham Xuan Dong, general director of CT-Wearnes Vietnam, said the first Lamborghini showroom
in the country would showcase and sell the Lamborghini Aventador LP 700-4 first before the
Huracan LP 610-4 model came to this market by the end of this year.
In previous years, foreign automakers brought expensive cars such as Lexus, Audi and Porsche
to Vietnam. More luxury auto 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 auto
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
businesspeople.
Customers had to order the luxury autos through local car importers and had to pay high for
maintenance service before the showrooms of these brands were inaugurated in Vietnam.
Earlier, Bentley Motors announced Bentley Hanoi as its first dealership in Vietnam and opening of
the first showroom for this luxury car brand is scheduled in the capital city in the second quarter of
this year.
SGT/VNN
Export-Import
Event Marketing - it's simply the old Trade Agency
PSV, 25.6.2014
For over 2000 years there have been trade agencies.
In the Middle East a long time ago they were called Caravanserai. By the Middle Ages they were
in business in Europe at the coaching inns, where the horses were changed. Before world war
one the new phrase Import / Export came up. And more recently the so called famous advertising
people have applied the new term Event Marketing. But it’s really still the old proven, reliable
Trade Agency.
Nowadays Trade Agencies have become, especially with the new FTA and TPP Free TradeAgreements, of new worldwide importance. They are in high demand again. Because all kinds of
overseas manufacturers and traders need the experienced traditional Trade Agency again to
handle their business on site.
In Vietnam and Indochina [email protected] offers this service too.
DI. Alex Narr
V - Exporters urged to meet EU standards
Eurocham, 23.6.2014
To boost exports to the European Union (EU), a demanding market
with strict regulations and standards, businesses have no choice but to develop a viable
strategy, improve management and apply advanced technology.
The recommendation was made by Deputy Minister of Industry and Trade Tran Quoc Khanh at a
Hanoi seminar on June 19, examining EU requirements for imports.
Khanh noted that approximately 42% of Vietnamese products currently enjoy the EU’s
Generalised System of Preferences (GSP), however, when the EU-Vietnam Free Trade
Agreement (EVFTA) is signed, around 90% of products will be exempt from tax, opening a huge
opportunity for Vietnam.
One of the biggest challenges facing Vietnamese exports to the EU is anti-dumping measures
from the Agreement on Technical Barriers to Trade (TBT), and the Sanitary and Phytosanitary
Standards (SPS) agreement.
Le Quoc Bao, former director of the TBT Office in Vietnam, said to overcome hurdles, businesses
should gain a better understanding and update information about export markets. He proposed
that State agencies build regulations and standards in line with international law.
Nguyen Thi Quynh Nga from the Ministry of Industry and Trade said the EU market requires
importers to meet strict technical regulations as well as laws related to time delivery and quantity.
Businesses should digest information about FTA negotiations and complete regulations on
country of origin (C/O) so as to enjoy incentives and make plans to take part in regional supply
chains. To penetrate the market, domestic businesses should study the EU’s Food Law,
regulations on brand names, packaging and food hygiene and safety, effectively apply
management methods and ensure quality of products, said Le Thanh Hoa, Vice Director of the
SPS Office in Vietnam.
Last year, two-way trade turnover between Vietnam and the EU surpassed US$33.7 billion, an
increase of 16% against the previous year, of which Vietnam’s exports were worth US$24.3
billion, up 19%, and imports fetched US$9.4 billion, up 7.5%.
In the first five months of this year, Vietnam’s exports to the market are estimated at US$11.62
billion, up 11.7%.
The EVFTA has entered its eighth round of negotiations and is expected to conclude late this
year./.
Source VOV News
L - Savannakhet export value reaches US$900 million
Lao News Agency by Vinnaly, 20.6.2014
(KPL) Savannakhet Province has disclosed that its export value in the first six month of this fiscal
year 2013-2014 reached over US$900 million and pursued an annual plan by 52%. Compared to
the same period last year, the value was increased by 47.9%, the exported products included
copper, processed wood, furniture and industrial products.
While over 1,000 tonnes of industrial and agricultural products including sugar, sticky rice and
ordinary rice worth almost US$1 million, have been exported to European Union.
The import value reached US$170 million, representing an increase of over 45% as compared to
an annual plan.
Last year, Savannakhet circulation of international goods reached US$1.26 billion when
compared with the same period last year increased by 1.71% and the trade balance stood at
US$681.17 million, Savannakhet Governor, Mr Souphanh Keomisay has said.
Savannakhet Province will further promote export volume to increase 18% in last six months of
this fiscal year.
V - Garment and textile exports surge 16.4%
By Khanh Phuong, 19/06/2014
VGP – Export turnover of garments and textiles touched US$ 10.21
billion in the first half of 2014, up 16.4% against the same period last year.
Shipments of made-in-Viet Nam products were optimistic especially in the US with a 14.5%
market expansion.
Experts attributed the outcomes to the country's stable macro-economic situation and low
inflation rate as well as efficient business operation and favourable payment competence of
enterprises.
The sector aims to earn over US$ 24 billion from exports this year.
In the second half of 2014, exports to key markets were forecast to be stable.
Besides traditional markets, the sector would focus on the EU. It expects vast opportunities
coming from the upcoming Free Trade Agreement (FTA) between Viet Nam and the EU.
O - Exports to Spain enjoy strong growth
VNA/ VOV online, 12.06.2014
Vietnam’s export turnover to Spain in the first four months of this year
hit nearly US$799 million, 31.42% higher year-on-year, according to the Ministry of
Industry and Trade.
Vietnam’s main exports to Spain are electric equipment, electronics, footwear, garment-textiles
and aquatic products.
Spanish Ambassador to Vietnam Alfonso Tena Garcia has said enterprises from his country are
satisfied with their business in Vietnam as they have been offered favourable conditions for
applying for business and investment licenses. He also said that Spain wants to further promote
its cooperation with Vietnam in the domains of technology transfer and education in the coming
time.
Two-way trade between the two countries surmounted a record EUR2.16 billion (US$2.98 billion)
last year, with a rise in exports from both sides.
Spain now ranks 59th among foreign investors in Vietnam, with a total registered capital of
US$30.3 million.
V - Seafood catch rises slightly
By Khanh Phuong, 11/06/2014
VGP – Seafood catch touched over 1.1 million tons in the first five months of 2014,
representing a year-on-year increase of 4.8%, according to the Viet Nam Association of
Seafood Exporters and Producers (VASEP).
The southern province of Ca Mau netted the biggest amount with 203,000 tons; followed by Ba
Ria-Vung Tau (120,739 tons); Binh Thuan (62,443 tons); Ben Tre (55,400 tons); Quang Nam
(52,012 tons); Bac Lieu (49.984 tons); Ninh Thuan (42.142 tons); Quang Ninh (23,493 tons), Thai
Binh (23,463 tons) and Quang Binh (16,785 tons).
Tuna output was on the rise in key provinces especially Binh Dinh with 4,007 tons (up 5.1%) and
Khanh Hoa with 3,939 tons (up 9%)./.
V - Indian animal feed suppliers to explore Vietnam market
Tuoitrenews, 11/06/2014
A delegation of animal feed suppliers from India will join a seminar in Ho Chi Minh City on
Wednesday to meet potential local importers and producers and establish future business
relationships.
They are on a fact-finding trip to explore new opportunities in the Southeast Asian market, which
imported $4 billion worth of animal feed and raw materials last year.
Those Indian suppliers are the members of the Solvent Extractors’ Association of India (SEA), an
apex body of the solvent extraction industry in India with over 850 members comprising
manufacturers, processors and exporters in the South Asian country and abroad.
Their main job is to process oil cakes, oil seeds and rice bran in modern solvent extraction plants,
and to produce the extractions or meals of rapeseed, soybean, groundnut, copra, de-oiled rice
bran, sal seed, cottonseed, sesame seed, mango kernel, safflower seed and sunflower seed.
Those animal feed products, which have passed strict quality control tests, can be used for
poultry and cattle as they contain high nutritional value with a protein content ranging between 15
percent and 50 percent, said SEA.
The fact-finding trip and the seminar are held to strengthen relations with end users of Indian Deoiled Meals in the Far East countries and to explore new markets for oil meals, according to the
SEA. They are also meant to undertake on-the-spot studies on overall demand and to understand
quality requirements of oil meals by end users, they added.
It will offer both Indian and local firms a chance to study the overall feed industry, the supply and
demand of feed ingredients and to enhance mutual co-operation between suppliers and
importers.
India is one of the world’s leading oil seed producers with total production currently standing at
over 30 million tons per annum. Indian exports account for over 5 million tons of oil meals
annually.
V - Footwear exports continue to grow
Business Times, Jun 9th, 2014
Footwear exports fetched US$3.76 billion in the first five months of this year, up 17.8 per
cent year-on-year, according to the Ministry of Industry and Trade.
The period’s encouraging growth rate signalled that the footwear industry was well on
track to reach $12 billion export target set for this year, it said.
From January to May, US, Japan and UK remained major export markets for Vietnamese
footwear, with $946 million, $192 million, $170 million, respectively, in revenue. Germany came in
fourth with $150 million. The Viet Nam Leather and Footwear Association (Lefaso) expects
footwear exports to prosper due to the development of a competitive edge, the introduction of
Generalised System of Preferences (GSP) taxes and the forthcoming signing of the Trans-Pacific
Partnership (TPP) Agreement. Lefaso encouraged domestic footwear producers to innovate their
existing technologies to increase productivity as well as improve the quality of products.
Challenges ahead
It is undeniable that Vietnamese enterprises will enjoy numerous benefits brought by TPP.
However, many footwear companies said they had encountered various difficulties while
preparing for this agreement.
Tran Ngoc Anh, director of two footwear production companies of An Thinh and Do Ba, told the
Dau Tu (Viet Nam Investment Review) newspaper that 60 to 65 per cent of his products were
exported to the EU countries, while the remainder was shipped to other countries, which have yet
to join the TPP. “We wanted to penetrate into the US market to take opportunities of TPP
effectively, but it was not an easy task due to regulatory obstacles,” he told the newspaper.
For footwear companies, the preparation for TPP was not only their responsibility. Raw material
suppliers also played a key role, as TPP required enterprises to source a certain ratio of raw
materials locally, he explained. The problem was to find enough raw material suppliers in the
domestic market to take full advantage of TPP, he noted.
Not many domestic footwear producers could provide high-quality products with good designs as
per the demands of TPP countries, Le Quang Doan, Director of Minh Dieu Co which specialised
in footwear production told the newspaper. Due to capital shortages local footwear producers just
invested in improving product quality and design until they got an order from customers, Doan
said.
General Secretary of HCM City Leather and Footwear Association, Nguyen Van Khanh, called on
producers to make further investment in production expansion and technological innovation in an
effort to catch up with all TPP opportunities.
According to trade experts, more efforts from the firms in advertising products via trade promotion
and international fairs and exhibitions as well as the State incentives in taxes, credit and
production spaces was also needed.
Taiwanese investor Chung Jye invests in Hai Duong
The northern province of Hai Duong has granted an investment permit to the Chung Jye Vietnam
Co., Ltd, a Taiwanese investor specialising in producing footwear for exports. The US$13 million
shoe factory project will cover nearly 77,757 square metres in Kim Thanh District. Once finished,
the factory is expected to produce around 3.6 million products a year and generate jobs for 2,500
local labourers.
According to provincial officials, Hai Duong is sparing no effort in collaborating with ministries and
agencies in investment promotion activities to lure funding from multinational and trans-national
groups. Various incentives have been given to underway foreign-invested projects, while the
province has eased difficulties facing the developments and built investor trust in the local
business climate.
The province has further boosted its administrative reforms by simplifying regulations across a
wide range of fields, including investment, construction, land use, import-export, labour
management and environmental issues. It has worked closely with relevant agencies and other
stakeholders to ensure security and safety for foreign investors in the locality.
Since the beginning of this year, Hai Duong has lured newly registered and additional investment
of US$319.4 million from 15 FDI projects, up 116% year-on-year in value.
The locality now has 264 FDI projects invested by 23 countries and territories with a total capital
of more than US$6.1 billion, of which US$2.7 billion has been disbursed.
VNS/VNA/VOV
Enterprises
M - Hilton plans to open five more hotels in Myanmar
Reuters, by Rujun Shen, Jun 11, 2014
Specialist Trader John O'Hara (R) wears a Hilton branded bathrobe to celebrate Hilton's
IPO, while working at his post on the floor of the New York Stock Exchange.
Hilton Worldwide Holdings Inc (HLT.N), the world's largest hotel operator by market value, said it
plans to open five more hotels in Myanmar in the next three years, even as its maiden project in
the country is facing delays.
Hilton has signed management agreements with Eden Group Company Limited, a business
conglomerate in Myanmar, for the hotels. Two, which are existing properties, will be rebranded
and open as Hilton hotels in October 2014. The other three are slated to open in 2016 and 2017,
it said in a statement.
A surge in the number of tourists in recent years has sparked a boom in hotel development in
Myanmar, where only six five-star hotels were in operation at the end of 2013. Hotel and service
apartment operators including Hilton, Accor Group (ACCP.PA), Shangri-la Group and Pan Pacific
Hotels Group, are racing to open new hotels in the country. Hilton's first project in Myanmar,
originally scheduled to open this year, is now expected to open in late 2015 or early 2016, said
Martin Rinck, president of Hilton, Asia Pacific.
"Working in an environment such as Myanmar where sometimes not everything goes like Swiss
clockwork, the project is coming later than expected," Rinck said, adding the delay is not
deterring Hilton from further expansion in the country. "Hilton really is a company that likes to be
on the forefront, to be the first when it comes to entering emerging markets."
V - JW Marriott Hanoi awarded best design in Asia
By Bich Ngoc, 10/06/2014
Bitexco-invested JW Marriott Hanoi was awarded the Best New Hotel Construction and
Design in the Asia-Pacific region at the 2014 International Property Awards.
The JW Marriott is a 5-star hotel owned by Bitexco Group and located on the campus of the
National Conference Centre.
Operational since last year, the $250 million hotel has nine floors with 450 rooms and is the one
of the largest hotels in Hanoi.
The hotel also boasts 2,400 square metres of conference space as well as 2 ballrooms and
facilities for both indoor and outdoor events, a Eurasian restaurant and a clinic.
Designed to American architect Carlos Zapata, who also composed the plans for the Bitexco
Financial Tower in Ho Chi Minh City, the JW Marriott’s most unique features is that it is
architecturally modelled after a dragon lying on the banks of the adjacent lake.
According to Vu Quang Hoi, chairman of Bitexco, the group did not just want to build an
international standard hotel for overseas tourists, it also strived to make it an icon of Hanoi
culture.
In 2011 and 2013, Bitexco Financial Tower was voted as one of the 25 most iconic skyscrapers
worldwide.
V - UNILEVER VIETNAM: Success Comes from Sustainable Development
VCCI, June 10, 2014
Unilever is one of the world’s leading multinational companies
specializing in food, home, personal care products. Unilever is now operating in over 150
countries and territories in the world. Its commitment is to improve quality of life for
people around the world through its high quality products & services.
Started its operation in Vietnam in 1995, Unilever has invested more than US$300 million in
Vietnam with a modern manufacture site in Cu Chi Industrial Zone. Through an extensive network
of 150 distributors & 200.000 retailers, Unilever creates 1.500 direct jobs and 10.000 indirect jobs
who work in its third parties, suppliers and distributors.
To date, many of Unilever’s brands such as OMO, P/S, Clear, Pond’s, Knorr, Lifebuoy, Sunsilk,
VIM, Lipton, Sunlight, VISO, Dove, Rexona, AXE, etc, have become familiar household names in
each Vietnamese family. As estimated, over 30 million consumers use Unilever’s products every
day, this contributes to improve their living conditions, health and hygiene.
With average double-digit annual growth rate over the last 17 years, Unilever Vietnam has
become of the most successful foreign invested investor in Vietnam.
In April 2010, Unilever Vietnam was honoured by the State President with the First Labour Medal
for its excellent business performance and meaningful contribution to Vietnam’s socio-economic
development. Unilever Vietnam is proud of being a companion in the life of every Vietnamese not
only through its products but also its deepest concern to environment and community.
Unilver Vietnam believes that corporate social responsibility is an integral part of business
activities and a key to sustainable development. Unilever and its brands have implemented a lot
of social and community programmes such as “P/S protects Vietnamese smile”, “hand washing
with soap for a healthier Vietnam”, OMO builds playground for kids”, “VIM – toilet cleaning”,
“micro financing for poor women”, etc.
These programmes have become typical examples of an effective public-private partnership that
contribute to improve Vietnamese lives. Through Unilever Vietnam Foundation (UVF), Unilever
Vietnam has invested VND72 billion per year in social-community programmes under strategic
partnerships with relevant government agencies which focus on 5 main areas: health & hygiene
with Ministry of Health, education & children development with Ministry of Education and Training,
women empowerment with Vietnam’s women Union, sustainable material development with
Ministry of Agriculture and Rural Development, water saving with Ministry of Natural Resource
and Environment.
In 2010, Unilever global launched its Unilever Sustainable Living Plan (USLP) with objective of
doubling the size of business growth & halving significantly environmental impact, enhancing
positive impact on society and community. USLP is Unilever’s key business model that helps
Unilever and its brands to grow sustainably. In Vietnam, Unilever’s successful business, high
responsibilities to the community and environment will be the solid foundation for Unilever to
realize its commitments to USLP. Unilever Vietnam commits to work closely with consumers, in
partnership with the Vietnamese Government, partners, customers and suppliers to successful
carry out USLP and to reach the final goal: “Becoming the most admired company, making
Vietnamese lives better”.
Particular Reports
V - Choosing Your Sourcing Partner in Vietnam
Vietnam Briefing, June 4, 2014
Finding the right sourcing partners to work with can be a complex
and stress-inducing process.
Before rushing into the countryside and interviewing every possible partner, it is important for a
company to clearly define what specifically they are looking for in a sourcing partner and what
they expect from the area where that partner is located. Important specifics for most companies
would include:
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What type of products are being sourced;
The level of experience required (technical, etc);
Capital ability of the potential partner;
Relevant state/local legislation;
Existence/quality of supporting industries (how will the supply chain work?); and
Quality of infrastructure/transportation systems in the area where the potential partner is
located.
Additionally, a foreign company must decide on its entry strategy into Vietnam, as well as what its
long-term strategy will be. Does it plan to hire a lot of employees or just a few at first? Is it
possible to handle sourcing operations without a footprint within the country, or will the company
have to open an office on the ground? Where will the finished products be transported to?
Starting the search
There are a variety of helpful channels for finding sourcing partners, these include:
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Online databases;
Official government databases listed by commercial chambers of commerce;
Associations of planned products;
Professional sourcing agents;
Trade fairs; and
Information provided by industrial parks and economic zones.
Of course, there are other less official ways of finding a sourcing partner such as through
personal introductions, client referrals, and other types of internal connections.
Screening
Once a list of potential candidates has been created, it is then time to proceed to the next stage
of the process and begin the screening of the different companies. This stage often requires
visiting the potential partner’s factories so that a clearer idea of their capabilities can be
formulated. Due to the time involved, not to mention overcoming barriers such as language, many
companies tend to hire a professional services firm to perform the screening process for them
and to identify the best candidates to act as sourcing partners.
It should also be taken into consideration that, due to Vietnam’s legal rules, a company is not
locked into the initial decision that it makes. These laws allow business entities to change the
scale of their operations and change their legal form, as well as allowing them to do any other
actions which are entitled by law. In short, the scale of business is not fixed and can be altered
according to the needs of the investors.
Choosing the location
Once the basic specifics of a sourcing partner have been laid out by the company, the next step
is to begin identifying which parts of the country are best suited for the needs of the company.
What follows below is a detailed breakdown of the key areas throughout the country for a variety
of common business products. It is also important to take note of the location of the various
industrial parks, high tech parks, and export processing zones. Before any sourcing decision can
be made, it is vital to thoroughly think through where it is best to strategically locate your business
and where your sourcing partner should be located.
PSV ad:
Irrespective if you interested in
production, purchase, import-export, trading, servicing or investing in Vietnam / Indochina
- the easiest, quickest and most cost effective solution for testing, start-up, entry -or even getting
out again without major commitments- is an external Rep-Office, Agency, or seasoned Scout
Team. From A to Z - we do the lot. [email protected]
V - Building “castles” becomes a fashion among the rich
VietNamNet Bridge – 05/03/2014
Rich men in the northern provinces of Hai Duong, Hai Phong, Ha Nam, Quang Ninh and
Hanoi seem to be very fond of building “castles.”
Many contractors have received “castle” construction projects. A Hanoi-based construction firm
recently built a “castle” named Tong Hai Son in Phu Ly city, Ha Nam province for a local
businessman.
According to the introduction of the construction firm, this is the “leading castle” in Vietnam at
present. It is designed in the classic architecture in the late 18th century. The construction had
the participation of the best artisans in the country. The owner is a person who is knowledgeable
about art. The “castle” was built from 2009 to 2013.
A rich man in Hai Phong is also the company's client. His “castle” is the most special in Hai
Phong. The owner asked the contractor to build an unprecedented “castle,” in classic French
style. A “castle” of a rich man in Cau Giay district, Hanoi, has stirred up the public for its price VND300 billion ($15 million).
Many other castles are under construction in many regions, especially in the northern provinces
of Hanoi, Hai Phong, Ha Nam, Hai Duong and Quang Ninh. The construction costs of these
castles are from tens of billion to hundreds of billion dong.
The castle of a businessman in Hai Phong.
Two castles in Ninh Binh province.
Mot The Gioi
Culture & Art
V - Where to admire Vietnamese contemporary arts in Saigon
VietNamNet Bridge, June 5, 2014
Despite a lack of an actual paintings market, international arts expos, auctions and fine arts
festivals like in Hong Kong, Singapore, Malaysia and Indonesia, HCMC has in recent years
emerged as one of the most active art scenes in the region. However, to explore the authentic
contemporary arts in Vietnam when visiting the city, tourists need to know exactly where they
should go and should not be distracted by commercial souvenir and decorative painting galleries.
Many local artists have held many exhibitions in international institutions, galleries and events
around the world. Also, local galleries and museums have also attracted many foreign artists in
Asia, America and Europe to bring their artworks to local art enthusiasts.
Although the number of contemporary art spaces is still limited, their operations are strong. These
art spaces are contributing to a better understanding of contemporary art in the country, nurturing
local talent, cooperating with foreign institutions and attracting art professionals from around the
world.
In downtown HCMC, there are plenty of galleries on Dong Khoi, Le Thanh Ton, De Tham, Bui
Vien or Nguyen Van Troi streets, but tourists have to take caution to not get distracted by the
colorful commercial entities where works are often mass produced and not representative of the
contemporary art scene of the country. So following are some addresses that arts lovers can
count on:
HCMC Fine Arts Museum: The museum not only keeps valued collections of iconic Vietnamese
artists since Indochine time but also holds regular exhibitions for both local and international
artists.
Galerie Quynh: it may be the most professionally recognized, international standard gallery in the
city. Established in 2003, Galerie Quynh has spent a decade promoting contemporary art practice
in Vietnam from drawing and painting to video and installation by of emerging, mid-career and
established Vietnamese artists and distinguished artists from around the world. Visitors can also
join lectures by international artists and curators.
Craig Thomas Gallery: it was founded in 2009 by American Craig Thomas who has a long
involvement in the Vietnamese art scene and the relationship with artists, curators and collectors
during that time. Visitors to the gallery will have a chance to exchange the passion and arts
knowledge with foreign artists and surely see fine collections of young and promising artists.
Thomas also brings local works to international art fairs to promote the development of a vibrant
domestic art scene in Vietnam.
Tu Do Gallery: it is known as the oldest standing gallery in the city with regular exhibitions
throughout the year. The gallery boasts collections of both old and contemporary artists.
Launched in 1989 by Dang Hai Son and Tran Thi Thu Ha, visitors to the gallery not only can see
a wide range of artworks but also can hear attractive stories by the owners who have witnessed
ups and downs of the Vietnamese arts scene.
Eight Gallery: Owned and run by a collector of Vietnamese modern and contemporary art, the
small gallery holds exhibitions of contemporary artists throughout the year. As it doesn’t have a
strong marketing network, it is not easy to know when an exhibition is on but visit their website
and contact them for information.
Vin Gallery: it is run by Malaysian artist Shyevin S’ng who is really interested in Vietnamese
contemporary arts and tries her best to promote the arts to the world by bringing local works to
international art fairs in Hong Kong, Malaysia, Indonesia and Thailand every year. The gallery
also holds workshops and art classes as well as exhibitions of both local and foreign artists.
San Art: it is an internationally renowned, independent, artist-initiated, non-profit gallery space
and reading room. Visitors can be assured that it is one of the most active contemporary art
organizations dedicated to the exchange and cultivation of visual practice to promote, facilitate
and showcase contemporary art through production, exhibition, discourse and education.
ZeroStation: it is an experimental art space founded by artist-curator Nguyen Nhu Huy. The
space holds workshops, talks and lectures, as well as art projects with exhibitions, screenings
and performances. The venue is where visitors can learn and exchange about contemporary
experimental arts with foreigner artists in residency projects.
Sao La: it is a nonprofit art initiative supported and founded by Galerie Quynh at the HCMC Fine
Art Museum. A new addition to the art scene, the space will also have a library room with art
books and will support emerging local talent.
SGT/VN
Tourism
V - Experience homestay and explore Tay ethnic culture in Pac Ngoi
SGT, 22/05/2014
Pac Ngoi – a small tourist village located in Ba Be National Park – is home to the Tay
minority ethnic community and a popular venue for foreign and local tourists to
experience homestay.
Houses on stilts in Pac Ngoi Village - Photo: Son Truong
To go to Pac Ngoi from Hanoi, tourists can take a Thuong Nga bus from 6:00 a.m. or 1:00 p.m.
and then spend four hours on the bus to get to the central bus station in Bac Kan. Then, they will
have to take a smaller bus to Ba Be National Park.
There are about 20 stilt houses offering homestay service for tourists. Houses are made of wood
and preserve all traditional features of Tay people, giving a glimpse of Tay culture. While the
traditional houses on stilts have almost disappeared in many other provinces, the antique, unique
and original houses of ethnic groups are still highly valued and preserved in Pac Ngoi despite the
presence of modern architecture.
In the park, tourists are recommended to take a wooden boat cruise in the lake in the middle of
the vast limestone mountain range of Ba Be National Park, surrounded by cliffs with attractive
forms and shapes. Ba Be Lake actually consists of three smaller lakes – Pe Lam, Pe Lu and Pe
Leng, stretching about eight kilometers in the north-to-south direction.
Tourists should not forget to experience local food by joining locals to make traditional dishes and
cakes. Corn wine should be on the menu for sure.
Tourists make Troi cake with locals
In the kitchen of Tay people
V - Guide to Hanoi
Vietnam's small elegant capital lies in the heart of the Red River Delta in the north of the country.
While it may lack the bustling river life and physical beauty of the Mekong Delta in the south,
there is a wealth of historical and spiritual sights to explore and the city is often called 'the Paris of
the Orient'. The city's broad tree-lined boulevards, lakes and parks, belle époque villas and
beautiful temples reflect a blend of Indo-Chinese and French colonial influences.
Given the political and historical importance of Hanoi and its burgeoning population, it's a
surprisingly low-key but vibrant city, sharply in contrast to Ho Chi Minh City in the south. Nowhere
is its liveliness more evident than in the tangle of streets known as the Old Quarter, the city's
commercial heart since the 15th-century. Hanoi is a good base for excursions to Ha Long Bay,
and to Sa Pa and the northern mountains where you can sample life in rural Vietnam. There are
some attractions closer by, like North Vietnam's most famous pilgrimage site, the beautiful
Perfume Pagoda, said to be named after the spring blossoms that scent the air. Information:
[email protected]
The different centuries and faces of Hanoi
C - “Sailing is the only freedom left on the planet”
We’re cruising 20km off the coast of Sihanoukville aboard the Cygnet, or ‘Little Swan’, a vintage
14-metre cutter with wooden decks, teak cabins and classic white, blue and black lines. “Sailing is
the only freedom left on the planet,” Captain Rony Hill says from the helm. “And Cambodia is
one of the best sailing grounds in the world.”
Captain Rony should know. In his 50 years at sea, the veteran American skipper has seen much
of the world’s waters. Both Rony and his partner Jenny were amazed when they first sailed into
Cambodia seven years ago. “We instantly fell in love with the place,” Rony says. “The friendly
people, undeveloped islands, calm waters, steady easterly winds and little to no rain for more
than half the year make Cambodia a maritime playground. When we arrived there were no
accurate sailing guides to the islands. I had to share this place with other people, so we decided
to start offering charters.” We approach the wide, heart-shaped Saracen Bay on the island of Koh
Rong Samloen. A fishing village stands at the bay’s far end, and its long beach is dotted with a
handful of rustic bungalow resorts. The sailboat is put to anchorand we head ashore in an
inflatable dinghy. A short hike through the island’s lush forests leads us to a multi-tiered waterfall
where cool, sweet water plummets over a series of cascades before pouring into the sea.
Back at the boat, Jenny has prepared sandwiches, potato salad, fresh spring rolls and fruit.
Jenny, who hails from northeastern Thailand and has sailed with Rony for the past 16 years,
expertly concocts both Western and Thai dishes from the Cygnet’s small galley. “Cooking is my
passion,” Jenny says with an infectious laugh. “I love making people happy with food.” We pull
anchor and head northwest to neighbouring Koh Rong. On the island’s southeastern shore,
turquoise waters lap against the pristine white sands of Long Set Beach. Across from the beach
is a tiny tree-clad outcrop Captain Rony has dubbed ‘Pagoda Island’. The islet itself is crowned by
a small Buddhist shrine, and from its summit, one is given sweeping views of Koh Rong’s lush
jungles and the great blue expanse of ocean beyond.
As the sun begins to set, Jenny surprises everyone with a freshly baked apple pie. Over drinks,
Captain Rony regales us with tales from his life at sea, and we watch the sun burn into the ocean
before the gentle waves rock us to sleep.
Sihanoukville-based Sail Cambodia offers day trips and custom overnight adventures from
November through May. Captain Rony’s three sailboats sleep four, six and eight passengers
respectively. Bareboat charters are also available. For more information, visit sailcambodia.info or
call Captain Rony on +855 (0)16 450 964.
Fairs & Exhibitions
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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