Vinacomin divestment sees avid foreign interest

Domestic ATM card holders of 41 National Payment Corporation of Việt Nam (NAPAS) member banks can pay by card at Việt Nam National Petroleum Group (Petrolimex)’s petrol stations nationwide from August 1. Non-cash payment service at Petrolimex petrol station is expected to create advantages for not only businesses and banks but also customers who enjoy conveniences. - Photo Hoàng Hùng The card payment service is connected via PG Bank’s Point-of-sale (POS) system at Petrolimex petrol stations. The move was announced after Petrolimex inked a co-operation agreement with NAPAS and PGBank in Hà Nội yesterday. Chairman of Petrolimex Bùi Ngọc Bảo said that the co-operation with NAPAS would raise its service quality at petrol stations nationwide and strengthen management capacity and transparency as the company looks to build a modern petrol station system. “This is also common trend of the era of the industry 4.0, which will push the development of non-cash payment model in Việt Nam. This payment model creates advantages for not only businesses and banks but also customers who enjoy conveniences,” said Bảo. According to a report of the National Traffic Safety Committee, Việt Nam has nearly 3.2 million cars and more than 48.3 million motorbikes operating in the country. A majority of them use fuel supplied by Petrolimex. With the use of ATM cards, the customers can manage their fuel costs via their bank statements. In addition, this can…... [read more]

WASHINGTON: President Donald Trump on Wednesday (Jul 26) unveiled a US$10 billion US investment by Apple supplier Foxconn to build a plant in Wisconsin. US President Donald Trump (left) and Terry Gou (centre), Chairman of Foxconn, an electronics supplier, during an announcement that the company will open a manufacturing facility in Wisconsin. (SAUL LOEB/AFP) The businessman-turned-president made the announcement side by side with the Taiwanese tech giant's CEO Terry Gou, as he tried to show his "America First" economic rhetoric is making a difference. Trump said the plant - which will make LCD panels - will create at least 3,000 jobs in the midwestern state, and was quick to stress he played a role in making the deal happen. "If I didn't get elected, he would not be spending US$10 billion," Trump said, thanking Gou for his "faith and confidence in the future of the American economy." Trump allies said Gou had spotted an abandoned factory and suggested it be used, and Trump personally met Gou in April to push the deal forward. Trump has made returning manufacturing jobs to America's heartland a key plank of his domestic policy. The investment is a double win for Trump, burnishing his reputation as a job creator and putting those jobs in a key battleground state, which he won in 2016 by a single percentage point. The investment is also a victory for…... [read more]

Richard de Boer, managing director of Control Union Vietnam, hands over organic certification to Tran Que Trang, general director of TTC Sugar Corporation. — VNS Photo Courtesy of TTC The TTC Sugar Corporation has received organic certification for its sugarcane and sugar from Control Union Vietnam’s managing director Richard de Boer. To invest in organic raw materials that meet global standards, TTC has zoned 62ha out of over 200ha of land in Bien Gioi (Border) Sugarcane Farm in Tay Ninh Province. The Thanh Thanh Cong Tay Ninh Joint Stock Company worked with Control Union and Peterson Consultancy, international inspection and certification organisations, to invest in producing the first organic sugar in Viet Nam and to assess the certification for meeting global organic standards. In another development, TTC Sugar Corporation and the US’s John Deere have signed an agency contract which enables TTC to become an official distribution agent of John Deere agricultural equipment in the Vietnamese market. As one of the key business segments of TTC Group, the sugar segment is active in being innovative and improving productivity, especially in the field of mechanisation in production. In addition to increasing productivity, speeding up the mechanisation in sugarcane cultivation helps TTC Group as well as other sugar companies save labour and production costs, contributing significantly to improving business efficiency. — VNS ... [read more]

These are some of the drastic measures being considered by the Ministry of Finance (MoF) and the Government Office (GO) as part of efforts to speed up equitisation and induce more transparency into the process. Deputy Prime Minister Vuong Dinh Hue has also instructed the MoF and GO to investigate and hand out stiff punishments to businesses and commercial banks that do not finalise the procedures despite being qualified to list on the UPCoM. The MoF will compile a list of equitised SOEs where the State still retains 36% or more of its stake, as well as those with zero to 36% of State capital, though the decision for the latter to become listed is contingent on the company’s shareholders. In the last six months of 2017, any enterprise tardy about going public on the UPCoM will be heavily fined under Circular 36/2017/TT-BTC which has been in effect since June 15, 2017. Companies failing to list or register 12 months later than requested by the State Securities Commission of Vietnam will attract fines of VND300 million to VND400 million (US$13,342 to US$17,790). The MoF has also asked the Government and responsible departments and localities to consider disciplinary action against the leadership of companies that are dragging their feet on completing listing procedures. The disciplinary actions would range from demotions, transfers, salary cuts to more serious criminal charges. The threat of severe action has prompted several companies to hasten their…... [read more]

The Vietnam Leather, Footwear and Handbag Association (LEFASO) announced recently that Vietnam was the fifth largest exporter of handbags and suitcases in the world, accounting for 5.4% of global supply. The country produces over US$3.2 billion worth of handbags, suitcases and backpacks that are exported to 10 major markets. A large number of factories have become trusted producers for major multinational brands. Nguyen Duc Thuan, LEFASO’s Chairman, said the nation’s leather industry has grown by 10% to 15% per year for the past five years, driven significantly by international fashion brands moving their handbag manufacturing facilities to Vietnam. Thuan said a majority of fashion houses have chosen to replace Chinese manufacturers with Vietnamese ones through foreign direct investment. In the first five months of 2017, the US was the largest market for Vietnamese suitcases, backpacks, and handbags worth US$555 million, a six percent increase over the same period in 2016, according to the General Department of Customs. The EU was second, importing goods worth US$365 million, up 8.2% year on year. Exports to other main markets included Japan at US$146.5 million, up 1.7%; China at US$57.6 million, down 6.8%; and the Republic of Korea at US$52.8 million, down 0.4%. Nguyen Minh Phong, Head of the Economic Research Section of the Hanoi Socio-Economic Development Research Institute, had said in June that bag producers in Vietnam should diversify their export markets, with emphasis on the US and EU markets. Phong also said…... [read more]

Low-cost Vietnamese carrier Vietjet and Japan Airlines reached a formal agreement on Tuesday with the aim of meeting the growing demand for air travel between Japan and Vietnam. The partnership is intended to improve customer convenience and the quality of operations and services, while also enhancing the corporate value of both airlines, Vietjet said in a press release. Japan Airlines is already operating daily non-stop services between Tokyo (Narita), Ho Chi Minh City and Hanoi respectively, as well as between Tokyo (Haneda) and Ho Chi Minh City. Japan Airlines and Vietjet have agreed to begin code-sharing on all flights between Japan and Vietnam. The cooperation will include the Japanese carrier’s domestic flights and Vietjet’s domestic flights, as well as services between Vietnam and other Asian countries. These add-ons are expected to improve customer convenience, according to Vietjet. The two carriers will explore further opportunities to develop their partnership in various areas, including a frequent flyer club, aircraft operations and maintenance as well as ground services and training. “The launch of this partnership with Vietjet represents a significant milestone for the two airlines to provide customers with better access to destinations between Japan, Vietnam and beyond,” Japan Airlines executive vice president Tadashi Fujita said. Vietjet managing director Luu Duc Khanh underlined Japan as the carrier’s key market in its plan to expand its flight network in the Asia-Pacific region. “The partnership between Vietjet and JAL will stimulate travel between the two…... [read more]

The authorities of Binh Thuan Province has suggested building sea embankments from the mud that was supposed to be dumped into the sea to construct the Vinh Tan 1 Coal Power Plant. Binh Thuan Party Secretary Nguyen Manh Hung said after the Ministry of Natural Resources and Environment gave its approval to dump nearly 1 million cubic metres into the sea near Hon Cau Marine Protected Area, it has faced large opposition from locals and scientists. It had asked for directives from the Secretariat, Central Economic Commission and Central Party Office. The provincial authorities were also notified that the Power Generation Corporation 3 was asking to dump 2.4 million cubic metres of "stuff" into the sea. Hung said, "We then proposed to use the mud to build embankments to fight erosion and sea encroachment. We want to deal with this properly, objectively and scientifically. We have reported to the prime minister and concerned agencies." He went on to say that by building embankments, the substances will be "locked" in one place. Nguyen Tac An, vice head of Vietnam Marine Science and Technology Association, and Nguyen Huu Quy, chairman of Binh Thuan's Nature and Environment Protection Association agreed that mud and sand can be used in sea encroaching and artificial island projects. "The encroachment projects must be located far from the estuaries, aqua-farms and areas with busy economic and tourism activities. Our foremost concerns about the power plant right now are pollution caused by emission, coal slag and discharged water. Vietnam…... [read more]

Locals being granted permission to gamble at domestic casinos has given Viet Nam’s growing hospitality industry an added boost, according to JLL experts. The government is allowing Vietnamese locals to gamble at two locations – the first in Van Don and the other on Phu Quoc Island – as part of a three-year pilot scheme. A third site in Ho Tram is expected to be added to the list. The news has evoked the interest of big international names such as Las Vegas Sands, along with local conglomerates like Sun Group, which is, so far, the only Vietnamese company approved to develop a casino in Van Don. More hotels across the country are installing electronic gaming to boost revenue, according to the real estate services firm’s latest report. “With Melco Crown Philippines being recognised as the best performing casino stock globally in 2017, it demonstrates that financial success can be achieved with the right planning, and has motivated investors to pursue such opportunities,” Frank Sorgiovanni, head of Research, Hotels and Hospitality JLL APAC, said on the appeal of casinos. “Viet Nam’s tourism industry’s renaissance has also driven corporate demand for hotels across the country, while visa exemptions, introduction of new direct air routes and improved marketing efforts have boosted appeal for leisure travellers,” Sorgiovanni said. Viet Nam’s gastronomical offerings are proving a further attraction for repeat visitors, especially from Asia, Sorgiovanni said. “The country is fast becoming a ‘foodie’ destination with a vastly improving food and beverage scene,” he added.…... [read more]

Locals being granted permission to gamble at domestic casinos has given Viet Nam’s growing hospitality industry an added boost. — JLL Photo Locals being granted permission to gamble at domestic casinos has given Viet Nam’s growing hospitality industry an added boost, according to JLL experts. The government is allowing Vietnamese locals to gamble at two locations – the first in Van Don and the other on Phu Quoc Island – as part of a three-year pilot scheme. A third site in Ho Tram is expected to be added to the list. The news has evoked the interest of big international names such as Las Vegas Sands, along with local conglomerates like Sun Group, which is, so far, the only Vietnamese company approved to develop a casino in Van Don. More hotels across the country are installing electronic gaming to boost revenue, according to the real estate services firm’s latest report. “With Melco Crown Philippines being recognised as the best performing casino stock globally in 2017, it demonstrates that financial success can be achieved with the right planning, and has motivated investors to pursue such opportunities,” Frank Sorgiovanni, head of Research, Hotels and Hospitality JLL APAC, said on the appeal of casinos. “Viet Nam’s tourism industry’s renaissance has also driven corporate demand for hotels across the country, while visa exemptions, introduction of new direct air routes and improved marketing efforts have boosted appeal for leisure travellers,”…... [read more]

A branch of the MB Securities Joint Stock Company in Hanoi (Photo: VNA) Hanoi (VNS/VNA) - Leaders of qualified State-owned enterprises (SOEs) will face demotions, salary cuts, fines and even criminal charges if they fail or delay listing on the Unlisted Public Company Market (UPCoM). These are some of the drastic measures being considered by the Ministry of Finance (MoF) and the Government Office (GO) as part of efforts to speed up equitisation and induce more transparency into the process. Deputy Prime Minister Vuong Dinh Hue has also instructed the MoF and GO to investigate and hand out stiff punishments to businesses and commercial banks that do not finalise the procedures despite being qualified to list on the UPCoM. The MoF will compile a list of equitised SOEs where the State still retains 36 percent or more of its stake, as well as those with zero to 36 percent of State capital, though the decision for the latter to become listed is contingent on the company’s shareholders. In the last six months of 2017, any enterprise tardy about going public on the UPCoM will be heavily fined under Circular 36/2017/TT-BTC which has been in effect since June 15, 2017. Companies failing to list or register 12 months later than requested by the State Securities Commission of Vietnam will attract fines of  300 million VND to 400 million VND (13,342 USD to 17,790 USD). The MoF has also asked the Government and responsible…... [read more]




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