I Vietnam Newsletter

Vietnam Business News Clips Page 1
VIET NAM

1
st
Edition
April - June, 2014


INDEX
General
1. Vietnam GDP To Post Modest Growth By 5.5% In 2014: WB
2. Consumer confidence marks two-year high: market survey
3. Inflation expected to remain stable, enable lending: HSBC
4. The FDI-Driven Economy?
5. Vietnam export promises robust growth: HSBC
6. Vietnam addresses trade deficit with china

Economy
1. Vietnam To Be Among 20 Biggest Economies
2. Businesses eye local opportunities
3. Manufacturing industry attracts huge FDI
4. Vietnams Economic Recovery On Track

Business
1. Samsung Expands Vietnam Business
2. Airbus Components To Be Manufactured In Vietnam
3. Vietnam Has Plentiful Resources For Developing Renewable Energy
4. Vietnamese Coffee Drinkers Prick Starbucks Bubble
5. McDonalds Plans Five Restaurants This Year
6. Developing Vietnam Into Global Jeans Production Centre
7. French Textile Enterprises Ready For Vietnamese Cooperation


Breaking News
1. Multinationals keep eye on Vietnams potential
2. Intel to expand production in HCMC
3. Netherlands hopes to boost agriculture cooperation with Vietnam
4. Samsung Electronics display unit considers building Vietnam factory
5. Challenges for Vietnam to boost FDI attraction
6. Vietnams plastic material exports to Turkey set to rise
7. HCM City to establish special economic zone
8. More foreign investors keen on Vietnams hotel sector: report
9. Will Vietnam become industrialised by 2020?
10. Vietnams export to Spain enjoys strong growth
11. Vietnam seeks to enhance cooperation with EU
12. HCM City develops supporting industries
13. Bloomberg: Foreign investors put trust in Vietnams market
14. Domestic enterprises pay inadequate investment in technology
15. Australian official hailed for support to Vietnams seafood industry
16. Dutch companies eye investment opportunities in Mekong Delta
17. Conference aims to facilitate trade with EU
18. Electronics industry offers opportunities to domestic businesses
19. Vietnams manufacturing grows strongest in 3 years
20. Vietnams economy 39 years after national reunification
21. Stronger support needed for SMEs: experts
22. Exports of electrical cables and wires grows 11 percent
23.


1. Vietnam GDP To Post Modest Growth By 5.5% In 2014: WB
Vietnams gross domestic product (GDP) is
forecast to modestly grow by 5.5% in 2014, the
World Bank (WB) said in its updated report on
East Asia Pacific Economic released today [Apr
7], the local news provider Gafin.vn reported.
The forecast is given based on an assumption
that the careful way in macroeconomics will be
implemented through pursuit of the prudent
monetary policy; structure reforms will be
continued with special attention to State Owned
Enterprises (SOEs) and banking system,
promoting private investments
In 2014, Vietnams macroeconomic situation
will be improved compared to 2013 but the GDP
growth remains below potential due to obstacles
in the structures of SOEs and banking system,
distortions in the policy that limits the domestic
private investments and competition in some
key industries, WB said in its report,
mentioning that the countrys macroeconomic
conditions remains stable thanks to ease in
inflation and increase in external account.
Vietnams trade accounts and current accounts
are expected to continue in surplus position this
year but in a lower level of 2013, WB said,
forecasting that the countrys inflation is likely
to be controlled in the Governments target of
7% with an assumption of modest credit growth
and no shock from supply.
Vietnams macroeconomic achievements are
seen to remain fragile, facing risks related to
adverse factors such as total demand of the
private sector is weak and easily influenced by
any negative economic developments. The
authorities may also be forced to cautiously
loosen fiscal and monetary policies to stimulate
the weak private sector that may retard the
reforms, curb GDP growth and reduce fiscal
sustainability.
Earlier, the Asian Development Bank (ADB)
forecast Vietnams GDP to grow by 5.6% in 2014
and 5.8% in 2015 in accordance with economic
recovery in the U.S, European Union and
progress made in solving weaknesses of the local
commercial bank system. The countrys
inflation is expected to rise by 6.2% in 2014 and
accelerate to 6.6% in 2015.
The ANZ bank also predicted that Vietnams
GDP growth to reach 5.6% in 2014 and 5.8% in
2015 while inflation to hit 7%-7.5% in 2014; the
Hongkong and Shanghai Banking Corporation
(HSBC) expected Vietnams inflation to rise
6.5% this year.
Source StoxPlus

http://businesstimes.com.vn/vietnam-gdp-post-modest-growth-5-5-2014-wb/

General

2. Consumer confidence marks two-year high: market survey
Photo cafef
HA NOI (VNS) Viet Nam's Consumer
Confidence Index (CCI) in the fourth quarter
touched a two-year high, fueled by the optimism
in the job market, Nielsen reported.
According to Nielsen, a global provider of
market research, insights and data, the CCI in
Q4 2013 was 98 points, one percentage point
higher than Q3 and 10 percentage points higher
than Q4 2012.
In a poll examining the ratios of savings, 74 per
cent of the Vietnamese consumers said they
were saving for the future and re-prioritising
their discretionary spending to save on
household expenses. This is the highest rate in
the region, followed by the Philippines at 68 per
cent.
According to HSBC Holdings Plc's Emerging
Markets Index released earlier this month, Viet
Nam is among the most optimistic countries in
terms of business expectations.

The Asia-Pacific region was the only one to post
an increase for the quarter, as consumer
confidence surged one index point to touch 105.
The indexes were down or flat in the other
regions.
All the confidence indicators posted marginal
gains in the Asia-Pacific region in the fourth
quarter, with a two-percentage point rise for job
prospects (62 per cent), a one-percentage point
increase for personal finances (62 per cent) and
a three-percentage point up for spending
perceptions over the next 12 months (43 per
cent).
Consumer confidence increased in six of 14
countries, with a quarterly climb of six
percentage points in Japan to reach 80, its
highest index since 2005. China went up one
index point in the fourth quarter to reach a score
of 111.
India also reversed its downward confidence
trend of the last three quarters by increasing
three index points to reach 115 in Q4 2013. The
percentage of Indians who said they were in a
recession declined 14 percentage points to 62
per cent from 76 per cent in Q3 2013. VNS

http://vietnamnews.vn/economy/251501/consumer-confidence-marks-two-year-high-market-survey.html
General

3. Inflation expected to remain stable, enable lending: HSBC

HSBC's Vietnam at a Glance monthly report has said inflation is likely to gradually
accelerate, especially in the second half, but remain under control. Photo stox

HCM CITY (VNS) HSBC's Vietnam at a
Glance monthly report has said inflation is likely
to gradually accelerate, especially in the second
half, but remain under control, enabling the
central bank to keep interest rates low.
The prognosis is based on the fact that the April
headline CPI rose slightly (4.4 per cent
year-on-year). However, core inflation
decelerated to 5.3 per cent from 5.7 per cent in
March.
The latter excludes food and energy from the
basket of goods whose prices are tracked.
"We expect core and headline inflation to
converge. Even as domestic activity picks up,
thanks to measures such as lowering the deposit
and OMO [the central bank's open market
operations] rates to induce lending growth, as
the year progresses, headline inflation is
expected to only rise slightly," the report said.
It expected the rate to end at 5.6 per cent this
year even with an assumption of higher social
services and electricity costs in August and
September.
The manufacturing sector would be the main
bright spot for Viet Nam, it said.
Negotiations are underway for the Trans Pacific
Partnership and the EU Free Trade Agreement.
Should they prove successful, tariffs on Viet
Nam's key items such as garments and textiles
should decline in major markets such as the US
and EU.
But more promising for the country's economic
development is the discussion of non-tariff
issues, including revamping of infrastructure,
streamlining administrative measures,
reorganising the supply chain in sectors such as
rice and textiles, and increasing energy
production output by deregulating prices.

General

Addressing these issues would help change how
Viet Nam competes in the international market
in the future. Only then could the country
replace raw, low-quality commodity and
low-value added manufacturing exports with
processed and high-quality products.
Getting hotter
The Purchasing Managers' Index increased
sharply to 53.1 in April from 51.3 in March.
Output, new orders, new export orders, and
employment all rose. New export orders have
increased in the past two months to reflect
rising demand from the US and eurozone.
Output surged ahead in Q1 2014 and into Q2, as
destocking measures in early years reduced
inventories sharply. With new orders high,
manufacturers increased production to keep up
with demand. Even with stocks of finished
goods increasing on the month in April in
anticipation of better demand, inventories are
still relatively low.
This means that output is likely to increase in
the coming months, as the leading indicator,
new orders minus inventories, still shows a large
gap.

The rather red PMI heat-map mirrors export
trends. Textiles, footwear, and mobile
shipments rose on a year-on-year basis and are
likely to perform better in the second half as
new investments begin operations.
Besides manufacturing goods, some agricultural
commodities also benefitted from higher
international prices: A drought in Brazil has
stoked coffee prices, rice has done well in the
year-to-date thanks to higher demand in places
like the Philippines.
However, Thailand is expected to dump its rice
stockpile on the global market this quarter,
pushing global prices lower and reducing the
value of Viet Nam's rice exports.
Overall, the report forecast exports to benefit
from higher manufacturing output.
The trade balance too is likely to be slightly
positive, thanks to lower costs of petroleum
imports (due to both prices and higher domestic
production), new investment in manufacturing,
and low domestic demand for foreign goods.
VNS

http://vietnamnews.vn/economy/254534/inflation-expected-to-remain-stable-enable-lending-hsb
c.html
General

4. The FDI-Driven Economy?

FDI-driven economy is the phrase used by
many economists at recent business forums,
meaning that foreign direct investment (FDI) is
the major motive power for the national
economy.
FIEs leading in production and export
Samsung Electronics Vietnam, a South
Korean-invested company, reportedly exported
$23 billion worth of products in 2013, putting
phone and phone accessories into the Number 1
position among the major export items.
A report of the General Department of Customs
showed that foreign-invested enterprises (FIEs)
year after year make up a higher value of xports
than the domestic-invested enterprises. In 2013,
the export revenue earned by FIEs accounted
for 67 percent of total export revenue.
The report also pointed out that the export
growth rate created by FIEs has been
continually higher than domestic enterprises,
22.4 percent vs 3.5 percent in 2013.
While domestic enterprises cannot earn big
money from exports, they spend much money to
import materials for domestic production. This
largely explains why Vietnam had a continual
excess of imports over exports in past years. The
trade surplus over the last two years has been
realized only thanks to the big export volumes of
FIEs.

Meanwhile, according to the General Statistics
Office (GSO), in 2005-2012, FIEs were
responsible for 44.2 percent of industrial
production, while the private sector made up
36.2 percent. State-owned enterprises
accounted for the remaining 19.6 percent.
The poor performance of domestic enterprises is
evidenced in the fact that the number of the
enterprises ceasing operation in 2013 alone was
15 times higher than in that of 2008-2009.
What does Vietnam expect from FDI?
When attracting FDI, Vietnam not only hopes to
expand domestic production and create more
jobs, but also wants the economic sector to have
pervasive influences throughout tthe whole
national economy through technology transfer
and the development of supporting industries.
However, Vietnam has failed to reach that goal.
While some giant manufacturers like Samsung
or Intel have set up production bases in
Vietnam, they have been using parts and
equipment supplied by other FIEs instead of
domestic enterprises.
As of yet, Vietnamese enterprises have not been
able to produce the high-value products in the
giant groups global supply chains because of
weak competitiveness. FIEs are believed to have
little motivation to develop production linkages
with domestic enterprises.

General

Of the 60 satellite enterprises which provide
phone parts and accessories to Samsungs
factory in the Yen Phong Industrial Zone in Bac
Ninh Province, only five are Vietnamese, in
charge of providing simple and low-added value
items like packs or plastics.
There are two opposite viewpoints about what
Vietnam should look for when seeking FDI.
Some argue that the country should attract
small and medium FIEs, which would allow
Vietnamese businesses to be the recipients of
technology transfer through cooperation with
the foreign partners.

Others, however, believe that the country should
focus on attracting giant global economic
groups at any cost, which can rapidly help foster
the local economies.
The latter is the path being followed by many
localities in Vietnam. The FIEs which have set
up production bases in the localities have
created jobs and paid taxes to the states coffers.
However, they do not help create the driving
force to develop the private economic sector.
http://businesstimes.com.vn/fdi-driven-economy/
General

5. Vietnam export promises robust growth: HSBC
HCMC Vietnams export growth will
remain strong this year and next,
contributing greatly to the countrys
gross domestic product and ensuring its
current account surplus, according to a
report composed by HSBC Research.
The banks economists expect by the end 2014,
Vietnams export will contribute about 90% of
the economic growth. The report says the
continued rise of exports supported by
remittance inflows will allow Vietnam to have a
current account surplus in the next two years.
The bank expects Vietnams trade surplus this
year would account for 2.7% of GDP, compared
to 0.8% last year. Figures from the Ministry of
Industry and Trade show Vietnam earned a
trade surplus of US$780 million.
Export and import of Vietnam have been on the
uptrend, showing that the trade surplus will not
be so substantial, but Vietnam is unlikely to
return to its high-trade-deficit days, as
consumption is much more conservative than in
recent years, says HSBC report.
The strong export growth is mainly driven by
the foreign investment sector.
According to the Foreign Investment Agency,
trade surplus of foreign-invested corporations
in the first quarter this year was US$3,12 billion
while the countrys trade surplus was US$481
million.
In the first quarter this year, registered foreign
direct investment (FDI) capital amounted to
US$2.9 billion while total new and additional
FDI capital rose to US$6 billion, increasing 63%
year-on-year.
This means that while domestic demand is
sluggish, the export sector, 63% of which is
driven by foreign firms in 2012, will continue to
expand and provide much-needed jobs and
income, said HSBC.
Both the improved new orders sub-index of
HSBCs survey on purchasing managers index
(PMI) in Vietnam and the acceleration of
imports show that exports should have a strong
year, especially electronics and manufacturing,
says the report.
Although the countrys economic growth in the
first quarter 2013 was not too high, at 4.9%
compared to 5.5% of the last quarter of 2012,
HSBC report forecasts Vietnams GDP will grow
5.5% this year compared to 5% last year. The
economic growth will be supported by a gradual
improvement in domestic demand, an
acceleration of foreign investment and steady
remittances, says the report.
Low inflation rate in early months this year has
been a good indicator, according to HSBC
report. It forecasts the average consumer price
index this year will increase 6.7%, compared to
the 9.3% level last year.
http://english.thesaigontimes.vn/28581/Vietna
m-export-promises-robust-growth-HSBC.htm
l
General

6.
6. VN addresses trade deficit with China

Last year Viet Nam spent $5.56 billion to import feedstock and accessories from China fort the garment and textile industry,
and $5.7 billion to buy phones and electronic components. Photo thoibaokinhdoanh

HCM CITY (VNS) Vietnamese firms trading
with China should have a rethink to reduce the
ballooning trade deficit and the massive
dependence on the neighbouring country,
entrepreneurs told a forum held in HCM City
last week.
Thai Vu Hoe, director of the southern branch of
the Cultural Centre of Vietnamese Businesses,
said Vietnamese firms should say "no" to
substandard Chinese products and this is the
right time for them because of the domestic
support at the moment for such a course of
action.
He pointed out that many firms depending on
exports of fruits, rubber, and rice to China are

suffering from the recent East Sea tensions since
orders have plummeted.
Ho Quang Minh, chairman of the Business
Network International Viet Nam Company, said
Vietnamese companies should manage to find
other sources for feedstock and inputs to replace
imports from China.
They and many others expressed concern about
the country's massive trade deficit with China.
According to the General Statistics Office, in
2013 Viet Nam achieved a trade surplus with 16
markets - of which the surplus with the US was
the highest at US$18.64 billion - but ran up a
deficit of $23.7 billion with China.
General

A similar scenario has been developing this
year. According to the General Department of
Customs, in the first quarter this year Viet Nam
had a surplus of $4.4 billion with the US and a
deficit of $4.5 billion with China.
Last year Viet Nam spent $5.56 billion to import
feedstock and accessories from China for the
garment and textile industry, and $5.7 billion to
buy phones and electronic components.
The country also imported Chinese equipment
and technology worth $36.8 billion, accounting
for 28 per cent of total imports.
Dr Le Dang Doanh, former chief of the Central
Institute for Economics Management, said
except rice most Vietnamese products are
exported to China without contracts, putting the
country at a great disadvantage.
With Viet Nam preparing to sign the
Trans-Pacific Partnership Agreement (TPP), if
Vietnamese garment and textile firms continue
to use Chinese raw materials they would forfeit
the benefits from the deal since China would not
be part of the TPP, he said.
Vietnamese enterprises should therefore soon
find other sources to replace China, he warned.
Dr Hoang Tho Xuan of the Trade Research
Institute concurred saying that in the long term
Viet Nam should become sell-sufficient in
feedstock as well as develop supporting
industries.
Pham Sy Thanh, director of the Viet Nam Centre
for Economics and Policy Research's China
Economic Research Programme, told Sai Gon
Economic Times: "Viet Nam has not benefited
from trade with China unlike the Philippines,
Thailand and Singapore, and so it is necessary
to improve the quality of trade with China.
"We now export unprocessed or semi-processed
products with low value addition to China, but
import high value-added products.
"This is because our technological standards are
still low and the supporting industries have not
yet developed sufficiently.
"We export $30 million worth of agro-products
to China but import $300 million of similar
products from China. This shows that our
market management and trade policies have
problems."
To improve the quality of trade with China and
reduce reliance on that country, it is necessary
to have temporary technical barriers and
improve the country's administrative ability,
develop the supporting industries, and look for
new sources of goods to replace China, he
added.
General

Pham Chi Lan, former chairman of the Viet
Nam Chamber of Commerce and Industry, said:
"We need to adjust our industrialisation
strategies. Initially we had focused too much on
heavy industry, and after Doi moi (renovation)
we paid more attention to light industry, but
only consumer goods.
"Consequently, the supporting industries have
been forgotten and now we have to import
intermediate products.
"Viet Nam is negotiating free trade agreements
and the TPP. This is an opportunity for us to
find new suppliers or invite new investors to
participate in the development of the domestic
supporting industries," Lan said. VNS

http://vietnamnews.vn/economy/255365/vn-addresses-trade-deficit-with-china.html

General

1. Vietnam To Be Among 20 Biggest Economies
Viet Nam and several other emerging nations
will be among the 20 largest economies by
2050, a senior foreign business executive has
said.
Raj Subramanian, executive vice president,
marketing and communications, of logistics
firm FedEx Services, said MINT (Mexico,
Indonesia, Nigeria, Turkey) and CIVETS
(Colombia, Indonesia, Viet Nam, Egypt, Turkey
and South Africa) are rich with possibilities,
and these young, vibrant new players are just
starting to flex their muscles,
The US-based Subramanian, who spoke at an
online seminar titled New Markets, New
Opportunities held by Fedex on Monday, told
Viet Nam News that Viet Nam typifies the
strength that nearly all MINT and CIVETS
countries share: proximity to a huge market full
of potential buyers, abundant natural resources
and commodities to sell, as well as a young and
increasingly well-educated population that is
eager to work, and has money to spend.
These market are also better connected both
physically and virtually to the world market.
He pointed out how the number of internet
users in Viet Nam grew from just 200,000 in
2000 to over 31 million in 2012.
This kind of change is opening up an
abundance of opportunity, providing access to
information and a vehicle for commerce. It is
allowing businesses of all sizes from
established multinationals to budding
entrepreneurs to enter and participate in the
world marketplace.
He said however that in many instances these
new markets, including Viet Nam, still lack
infrastructure to safely and efficiently move
products in and out, communicate effectively on
the ground, or simply power equipment.
There are often laws and cultural nuances that
can be difficult for a new entrant to navigate.
Goods can often be held up for substantial
periods of time, or damaged in transit. Yet, there
is resounding confidence in the future of these
economies, and the role they will play in the
global marketplace.
Source: VNS

http://businesstimes.com.vn/vietnam-among-20-biggest-economies/

Economy

2. Businesses eye local opportunities

A section of the Viet Nam High Quality Products Trade Fair held last month in HCM City.
There has been an important reversal in the past two years, with firms now experiencing
more growth from domestic markets than through overseas expansion. VNA/VNS Photo
Thanh Vu

HA NOI (VNS) New findings from a survey
conducted by global office provider Regus
indicates the number of Vietnamnese
companies seeking business opportunities in the
domestic market is 260 per cent higher than
those looking overseas.
The one-month poll, which surveyed more than
200 Vietnamese businesses, is a part of global
study which collected the opinions of more than
20,000 senior executives and business owners
across 95 countries.
The research proves that 42 per cent of the
companies are seeking domestic growth, while
only 17 per cent look forward to growing
internationally.

According to the research, the five most
important barriers to international growth by
Vietnamese firms were the need to hire
top-quality staff (89 per cent), lack of access to
flexible office space (84 per cent), lack of market
information (74 per cent), lack of local
knowledge and connections (63 per cent) and
the need to set up a local distribution network
(63 per cent).
The focus on home-grown growth is even more
significant in emerging markets, where three
times as many companies (51 per cent) were
seeking domestic growth compared to the
number of companies seeking growth overseas.

Economy

This provides evidence that more people in
developing countries have started to benefit
from the results of economic recovery, as
consumer confidence has begun to recover and
reliance on exports has diminished.
Serge Dupaux, country manager at Regus Viet
Nam, the global workplace provider, stated that
there has been an important reversal in the past
two years, with firms now experiencing more
growth from domestic markets than through
overseas expansion. The trend highlights how
important it is for businesses to remain flexible
and scalable so that they can respond to market
volatility but also highlights an important
increase in consumer purchasing power in
emerging economies.

Regardless of whether businesses are expanding
in new markets in their own country or abroad,
they rely on a series of key factors. They need to
access reliable and up-to-date market
information, to have a network, and to have easy
access to a number of options when considering
the best location to set up. In addition, flexible
working space allows businesses to rapidly react
to the markets and keep their capital free for
investment in further growth," he said.
Founded in Brussels, Belgium, in 1989, Regus is
based in Luxembourg and listed on the London
Stock Exchange. VNS

http://vietnamnews.vn/economy/255403/businesses-eye-local-opportunities.html
Economy

3. Manufacturing industry attracts huge FDI

(VOV) - Three major foreign investors
Japan, the Republic of Korea and
Singapore are heavily investing in
Vietnams processing and manufacturing
industry.
FDI disbursement hits US$4.6 bln
Govt commits help to FDI businesses in disturbance-hit
localities
US$237 billion in FDI poured into Vietnam

As of April, Japan had 2,226 projects covering
all 18 sectors in Vietnam with a total investment
of US$35.51 billion, mainly in the processing
and manufacturing industry (1,227 projects at
US$29.9 billion), real estate (30 projects at
US$1.4 billion) and construction (US$56
projects at US$1.06 billion).

Its investments are spread throughout 49
provinces and cities of the country, of which
Thanh Hoa took the lead with 9 projects at
US$9.68 billion, followed by Binh Duong,
Hanoi, Ho Chi Minh City, Haiphong and Dong
Nai.
The Republic of Korea (RoK) came in second
among 101 foreign investors in Vietnam. Korean
giants which have contributed significantly to
Vietnams socio-economic development include
Samsung, Posco, Doosan, Kumho, LG, Daewoo,
GS and SK.

Economy

The RoK pumped US$30.77 billion into 3,736
projects as of April. The processing and
manufacturing industry topped the 18 sectors
with 2,261 projects at US$18 billion, then came
real estate with 76 projects at US$6.67 billion
and construction with 520 projects at US$2.3
billion.
Korean investors have made their appearance in
49 provinces and cities nationwide. Hanoi
ranked first with 775 projects at US$4.9 billion,
followed by Dong Nai with 292 projects at
nearly US$4 billion and then Ho Chi Minh City,
Ba Ria-Vung Tau, Haiphong, Binh Duong and
Thai Nguyen.
Singapore had 1,266 valid projects in Vietnam
with a combined capitalisation of nearly
US$30.29 billion. It invested in 18 sectors, with
the processing and manufacturing industry
coming first with 400 projects at US$11.35
billion.
In addition to production, Singaporean
investors have paid due attention to
infrastructure development at industrial and
export processing zones. Five IZs have been
operated by Singaporean investors, including
Vietnam-Singapore Industrial Parks (VSIPs) in
Bac Ninh, Haiphong, Binh Duong and Quang
Ngai.

http://english.vov.vn/Economy/Manufacturing-industry-attracts-huge-FDI/276940.vov

Economy

4. Vietnams Economic Recovery On Track

The national economy has bottomed out since
the third quarter of 2013 and is now on track to
recovery, according to the National Financial
Supervisory Commission (NFSC).
A NFSC report shows the economy has kept
inflation at a low rate, stabilised the currency
market, lowered deposit rates, and brought the
dolarisation of the economy under control, thus
consolidating investor trust.
Industrial production has begun to gain steam
as material imports for production rose and
inventory decreased.
The committee is optimistic about the countrys
economic growth in 2014 thanks to
improvements in aggregate demand, private
investment, and exports.

It forecasts the economy will grow by 5.8% and
inflation will stay at 5%, without calculating
fluctuations in the prices of food, essential
products and public services.
However, it says the economy still faces a
number of challenges, including slow
improvements in aggregate demand, difficulties
in agricultural production, and heavy reliance
on the foreign direct investment (FDI) sector.
The NFSC affirms that the restructuring of
credit organisations has obtained initial results,
helping the banking system perform more
stably. In addition, favourable economic policies
have helped fuel aggregate demand and credit
growth.

http://businesstimes.com.vn/vietnams-economic-recovery-track/

Economy

1. Samsung Expands Vietnam Business

Samsung Electronics Vietnam will be expanded
in the future with its complex in Thai Nguyen
Province, in addition to the one in Bac Ninh
Province.
Smartphones with the label Made in Vietnam
will account for 50 percent of the corporations
sales across the world.
The information was provided by Nguyen Van
Dao, deputy general director of Samsung Vina,
at a meeting with the press on May 14 in the
northern province of Bac Ninh.
He reported that the localisation rate now
represented more than 30 per cent, and the
domestic consumption had been decreasing
gradually. Although the local market is large, it
only accounts for a small part in the global
market. At the moment, the domestic
consumption rate of products ranges from 2 to 5
per cent. This will decline relatively to the
increasing exports in the future, Dao noted.
Samsung Electronics Vietnam in Bac Ninh
Province exports to many regions in the world,
with major products including smartphones,
tablets, cellphone parts and vacuum cleaners.
According to Samsung, the European Union
accounts for 47 percent in its total exports and
North American market takes up more than
nine percent.
Shim Won-hwan, general director of the
Samsung complex, stated that the factory in Bac
Ninh was one of the largest of the South Korean
corporation in the world. He added that
Samsungs factories in Viet Nam not only
assembled mobile phones but also produced
electronic components.
Last year, Samsung contributed US$23.9 billion
to the total exports of Viet Nam, accounting for
18 percent.
Samsung complex in Thai Nguyen, which
officially started operating in March, is expected
to employ 16,000 workers and produce eight
million products per month by the end of this
year.
In June, Samsung will open its new branch
office in the port city of Hai Phong.
VNS/VNN

http://businesstimes.com.vn/samsung-expands
-vietnam-business/

Business

2. Airbus Components To Be Manufactured In Vietnam
On Wednesday, Airbus announced its first
production package of aircraft components in
Vietnam, through Nikkiso Vietnam.

Accordingly, Nikkiso Vietnam, a Japanese firm
based in the Thang Long 2 Industrial Park in
Hanoi, will manufacture composite spars of
aircraft wings and the shields of sharklet
devices.
A sharklet is a wingtip device that helps save
fuel and is an option on the A320 planes. With
over 4,280 A320 aircraft being delivered to
customers worldwide, this production package
is likely to ensure long-term work for Nikkiso
Vietnam.
This firm currently has 400 Vietnamese workers
and 50 of them will participate in aircraft
component manufacturing.
As a composite device manufacturer, the
Japanese firm is a subcontractor for a major
supplier of Airbus in Korea. After receiving
components from Vietnam and other places, the
Korean company will assemble the devices into
complete sharklets for Airbus.
Airbus now has 15 major suppliers of aircraft
parts and a few hundred small suppliers
worldwide. This is the first time an important
technical component of an aircraft is to be
manufactured in Vietnam.
Mr. Jean-Francois Laval, Vice Executive
President of Airbus in Asia, said Vietnams
aviation market is growing rapidly. The
production cost in Vietnam is quite attractive.
At the same time, Airbus has also received active
support from the government of Vietnam.
Airbus currently has an aeronautical engineer
training program in Hanoi.
According to Laval, the project in Vietnam will
start in August. Airbus will participate in
supervision to ensure quality and factory
certification to meet the stringent standards of
the company in the fields of supply, processing
and quality control.
Laval also said that Vietnam Airlines will
become the first airline in Asia to use the
entirely new A350 XWB aircraft, after receiving
the first delivery in mid-2015.
In total, Vietnam Airlines will have 14
A350-900s in its fleet, including 10 aircraft
ordered directly from Airbus and 4 leased
planes. This air carrier will use the A350 fleet
for long haul flights.
VnEconomy/VNE

http://businesstimes.com.vn/airbus-components-manufactured-vietnam/

Business

3. Vietnam Has Plentiful Resources For Developing
Renewable Energy

Viet Nam should focus on renewable energy,
director of the Energy Institutes Renewable
Energy and Clean Development Mechanisms
Centre Nguyen Duc Cuong told Tuoi tre Cuoi
tuan (Youth Weekly).

How do you evaluate Viet Nams
potential in the development of renewal
energy, particularly that made from
bio-mass?
According to Viet Nams energy development
plan, by 2020 the country will produce 75,000
MW, of which 500 MW will be generated by
renewable energy. In 2013, the countrys total
energy output was 28,000 MW. Renewal energy
accounted for about 3.7 per cent.
Viet Nam has large resources of bio-mass. It is
estimated that about 118 million tonnes is
generated annually. To be more specific, we
have about 40 million tonnes from rice straw, 8
million tonnes of rice husks, 8 million tonnes of
sugar-cane straw and others. With such huge
and stable bio-mass resources, we can build
many power plants with big capacity.
It is forecast that by 2015, Viet Nam will have to
import coal to operate power plants. Thats why
the use of bio-mass has become urgent. The
power that it produces is clean and at the same
time it creates many new jobs and increases
farmers incomes.

In the last few years, 40 bio-mass power plants
based on sugar cane have been granted licences
to produce a total of 150 MW. However, only
five of them have had their electricity connected
to the national grid. In addition, two bio-mass
power projects using rice husk have been
granted licences one in Tra Noc, Can Tho
Province, and the other in Long An Province.
It is reported that 10 other rice husk bio-mass
power plants are about to hold feasibility
studies.
Why are there so few bio-mass power
plants in our country? And some of them
have already stopped operation. Why?
I think the hardest problem is the price
mechanism. Investment in renewal energy
sources such as the wind, sea waves and
bio-mass is costly, much higher than for hydro
power or thermal power. For wind energy, the
Government has adopted a subsidised price
policy. It has told Electricity Viet Nam (EVN) to
buy at a price of 7.8 cents per kWh. Bio-mass
sells for only 4 cents per kWh.
This is the key reason why quite a few projects,
including the Lam Son Sugar Mill and the Long
An rice husk power plants have decided to stop
producing electricity. Instead, they now sell
steam for industrial use.

Business

To promote bio-mass power production,
your ministry recently submitted a
proposal asking the Government to
introduce subsidies. Will you elaborate?

In the document we ask the Government to raise
the price of buying electricity produced from
rice husks at 7.3 cents/kWh and the price of
electricity produced from sugar cane a little
lower. If our proposal is accepted by the
government, I think it will serve as catalyst for
the development of renewal energy from
bio-mass resources.
Source: Vietnamnet

http://businesstimes.com.vn/vietnam-plentiful-resources-developing-renewable-energy/

Business

4. Vietnamese Coffee Drinkers Prick Starbucks Bubble

The US caf giant Starbucks was thought by
many to be poised to knock out Vietnamese
rivals after just a short period of doing business
in Vietnam. But this has not come to pass.

The Starbucks fever
Starbucks made a noisy arrival in Vietnam in
February of last year. The name Starbucks
appeared in all local newspapers many months
before it really turned up in Vietnam. The
opening of its first shop in HCM City with
hundreds of Vietnamese queuing up for their
turn to buy a cup of coffee was reported by all
business newspapers.
The long queue in front of Starbucks caf, the
traffic jam in the area where the shop is located
and the overcrowding of the parking lots all
seemed to point to a bright future for the chain
in Vietnam.
In May of last year, three months after opening
day, Starbucks CEO Howard Schultz stated that
revenue of the first caf in Vietnam was beyond
the expectations.
Meanwhile, Patricia Marques, Starbucks
Vietnams CEO, said Starbucks would open
hundreds of shops throughout the country.
Some sources said that Starbucks Vietnam, in
its plan to march toward the north, may open a
shop in Hanoi in the second quarter of 2014.

What helps Starbucks attract
Vietnamese?
The US caf chain has certainly made a good
impression on Vietnamese since it presented
itself to the public. Shops in HCM City all are
located at the most advantageous positions,
called the golden land.
Starbucks also attracts Vietnamese with its
special cups and spoons. A university student,
21, said she usually goes to Starbucks with her
father on weekends, partially because she just
likes collecting Starbucks cups and spoons.
The company has been doing everything it can
to please customers. It organizes free training
courses every week on how to enjoy coffee,
differentiate flavors and even on making coffee.
Starbucks cools down
But Starbucks fever, after several months of
presence in Vietnam, seems to be cooling down.
No more queues are seen in front of the flagship
Starbucks in HCM. And very few Vietnamese
are now visiting. Many who came in the past just
to find out what Starbucks means, found no
compelling need to return once their curiosity
was satisfied.
Now, most customers are foreigners, ones who
are used to Starbucks coffee at home.

Business

Though they are also situated in highly
advantageous locations in HCM, inaugurations
of the second and third Starbucks shops were
relatively low-key affairs. Most recently,
Starbucks announcement of the opening of
Starbucks Dong Du was accompanied with
attractive offers. However, the events failed to
capture peoples attention.
Vo Van Quang, a branding expert, noted that
Vietnamese flocked to Starbucks just to taste the
coffee, but after that, they have returned to their
familiar habits.

According to Quang, Vietnamese like black
coffee with strong flavor, which they cannot find
in Starbucks.
Therefore, Starbucks might well be advised to
target clients who are office workers and
women, who prefer weak coffee. And, of course,
foreigners, many of whom were already
hooked on the Starbucks brand long before
they arrived in Vietnam.
One expert noted that, thanks to the culture of
coffee drinking in this country, Starbucks
Vietnam has had to spend more money on the
shops material facilities and retail premises in
here than in other countries. In Vietnam, only
10 percent of clients buy take-away coffee, far
lower than the 60 percent proportion in the US.
VTC

http://businesstimes.com.vn/vietnamese-coffee-drinkers-prick-starbucks-bubble/

Business

5. McDonalds Plans Five Restaurants This Year

Fast-food giant McDonalds plans to have a total
of 4-5 restaurants in Vietnam this year as part of
an ambitious goal for around 100 restaurants in
the next decade, McDonalds Vietnam said.
Nguyen Huy Thinh, managing director of
McDonalds Vietnam, told reporters in HCMC
on Monday that McDonalds would focus on the
HCMC market before reaching out to Hanoi.
Nearly three months after the first eatery came
into service at 2-6 Bis Dien Bien Phu Street in
HCMCs District 1, McDonalds will inaugurate a
second facility in the city this Friday at 2-2A
Tran Hung Dao Street in District 1, adjacent to
the landmark Ben Thanh Market.
The new three-storey restaurant, which is
known as McDonalds Ben Thanh, can serve 260
guests at a time, or 90 seats fewer than the first,
McDonalds Da Kao.
Instead of offering the drive-thru service,
McDonalds Ben Thanh has a To-Go booth
allowing customers to place orders without
having to step inside the restaurant.
McDonalds Da Kao reportedly served 400,000
customers in the first month of operations.
Thinh said that the exact number of guests in
the first three months had not been updated but
said that business results went beyond
expectations.
Thinh said a majority of McDonalds customers
were young in the initial time but the number of
senior guests and family members were on the
rise. Big Mac was the favorite, he added.
McDonalds currently buys vegetables grown in
the Central Highlands city of Dalat and has to
import other ingredients. Thinh said
McDonalds was looking for more local
suppliers.
Commenting on the target for 100 restaurants
in Vietnam, Nguyen Bao Hoang, founder of
Good Day Hospitality, the franchise holder of
McDonalds brand in Vietnam, said this was
obtainable based on the fact that McDonalds
had around 400 restaurants in the Philippines,
260 in Malaysia and 195 in Thailand.
Source: SGT

http://businesstimes.com.vn/mcdonalds-plans-five-restaurants-year/

Business

6. Developing Vietnam Into Global Jeans Production Centre

Spains Jeanologia and its Vietnamese partner
Phong Phu International Joint Stock Company
have an ambitious plan to transform Vietnam
into a global market leader in the production of
high-quality environmentally friendly jeans.
Enrique Silla, President of Jeanologia- a Spain
jean producer has said that Vietnamese
products, especially jeans and knitted items, are
finding their niche in the global marketplace
and are emerging as a strong competitive rival
in terms of price and quality.
Silla said that recent policy changes in China
currently the worlds largest jeans producer
have lessened the attractiveness of the Chinese
market to the favour of investment in the
Vietnamese garment and textile industry.
He emphasisedthat the time is ripe for garment
producers in the Vietnam to rise to the occasion
and seize the opportunity to ascend to a position
of global leadership in the production of
high-quality jeans.
To achieve the goal, he suggested that in
addition to capitalising on factors such as of its
young talented labour force, Vietnam should
focus on modernizing its production
technologies to improve product quality and
most importantly increase added value of
production.
World famous jeans producers such as Levis
Strauss or retailers UNIQLO, Zara, H & M, G
STAR, A & F, Polo Jeans or CK have taken
notice of Vietnams emergence in the industry
and are keeping tabs on the development, he
concluded.

http://businesstimes.com.vn/developing-vietnam-global-jeans-production-centre/

Business

7. French Textile Enterprises Ready For Vietnamese
Cooperation

French textile machinery manufacturers desire
to establish long-term mutually beneficial
relationships with Vietnamese businesses.
Evelyne Cholet, Secretary General of the French
Textile Machinery Manufacturers Association
(UCMTF), was speaking at a seminar in Ho Chi
Minh City on April 3
She said that French enterprises want to become
Vietnams reliable partners and are willing to
help the country take advantage of
opportunities in the textile industry.
In the fiercely competitive world market place,
French enterprises still assert a competitiveness
edge and have found an important niche in the
market thanks to technological innovation and
quality improvement, she added.
France is currently the worlds 6th largest textile
machinery exporter with annual export turnover
of approximately US$1.2 billion and its products
available in 115 countries. .
For her part, Deputy Minister of Industry and
Trade Ho Thi Kim Thoa said Vietnam is in the
worlds top five textile and garment
manufacturers.
The Vietnamese Government always creates the
most favorable conditions for textile enterprises
to expand their operations, and continues to
increase investment in weaving and dyeing
technologies.
She proposed that the Vietnamese and French
business communities make the best of
experience exchange and technology transfer to
increase the added value of Vietnams textile
sector and to boost commercial ties between the
two countries.
Vietnam is not only an attractive destination for
foreign investors but is additionally a gateway to
the larger ASEAN market, she stressed.
Over the past 10 years, Vietnams textile
industry has grown by 5% annually and
generated 10% of the countrys Gross Domestic
Product (GDP). .
In the first quarter of this year, it grossed more
than US$4.54 billion from export, a
year-on-year increase of 20%. VOVNews
http://businesstimes.com.vn/french-textile-enterprises-ready-vietnamese-cooperation/

Business

1. Multinationals keep eye on Vietnams potential

Vietnam has emerged as one of the top three
frontier-market economies that are attracting
the most attention from American and
European multinationals, according to the
latest Frontier Markets Sentiment Index .
The Index, published last week in the Wall
Street Journal, is developed
byWashington DC-based advisory firm Frontier
Strategy Group (FSG). It tracks the level of
interest that major American and European
multinational companies show in 70
frontier-market economies.
According to the report, Nigeria topped the
list as the most popular pick for multinationals,
followed by Argentina and Vietnam .
Of the 20 countries attracting the most interest
from multinationals, nine were in sub-Sahara,
while Asia accounted for just three markets.
Vietnam was the only country in Southeast
Asia among the top three economies, with 24.7
percent of companies including it on their
watch [...]
2. Intel to expand production in HCMC

The US-owned Intel Corporation will expand its
production of desktop central processing units
(CPUs) in Ho Chi Minh City, where it has
operated a factory since 2006, a local official
told the press on Tuesday.
The expansion is part of the semiconductor chip
giants plan to invest US$1 billion into its
factory in the Saigon Hi-Tech Park, Le Manh
Ha , vice chairman of the city Peoples
Committee, said on the sidelines of his meeting
with US Consul General Rena Bitter .
Intel would announce its plan this month, Ha
was quoted as saying by news websiteThoi Bao
Kinh Te Sai Gon ( Saigon Times ).
The factory began assembling and
testing semiconductor components in 2010 and
achieved $1.7 billion in export turnovers last
year, the news site reported.
The companys leaders expect to increase
exports [...]
Breaking News

3. Netherlands hopes to boost agriculture cooperation with
Vietnam
The Agriculture Ministry of the
Netherlands hopes to continue its cooperation
with Vietnamese businesses
and research institutes to jointly create a supply
chain and value for Vietnams agricultural
products.
Party Central Committees Economic
Commission deputy head Nguyen Xuan Cuong
receives Dutch Agriculture Minister Sharon
Dijiksma (Source: VNA)
The desire was expressed by Dutch Agriculture
Minister Sharon Dijiksma during her meeting
with the Party Central Committees Economic
Commission in Hanoi on June 17.
She said she is accompanied with many
businesses during her current visit to Vietnam,
adding that they want to cooperate
with Vietnamese partners in agriculture as part
the two sides deeper link in this field.
During the meeting, the minister briefed the
commissions leaders of outcomes of the Dutch
Prime Ministers visit to Vietnam, saying that
the two PMs signed an [...]

4. Samsung Electronics display unit considers building
Vietnam factory
A unit of South Koreas Samsung Electronics
said on Tuesday that it was in talks with the
Vietnam government over building a factory to
make display modulesfor mobile phones.
Samsung Electronics, a close rival to Apple Inc ,
is ramping up production in low-cost Vietnam,
amid an intensifying price war in
the smartphone market.

South Koreas Yonhap News
Agency said Samsung Display was considering
an investment of $1 billion to build the plant by
2020.
A Samsung Display spokesman declined to
comment on the size of the investment.
He said the company was considering building
the factory in Bac Ninh province, where
Samsung Electronics already has mobile phone
production facilities.
http://www.vietnambreakingnews.com/2014/06/samsung-electronics-display-unit-considers-buil
ding-vietnam-factory/
Breaking News

5. Challenges for Vietnam to boost FDI attraction

The Government is committed to augmenting
the countrys attractiveness as a safe and
hospitable investment destination with
developed infrastructure facilities and a young,
talented workforce, radio The Voice of
Vietnam (VOV) reported on June 16.
As of May 2014, there were 16,323
foreign-invested projects operating in Vietnam
with a combined registered capital of 237 billion
USD invested by 101 countries
and territories from around the globe.
Foreign invested projects
have significantly contributed to the
development of the countrys infrastructure by
improving production capacity and
technologicalrenovation. These factors
directly translate into improved business
efficiencies and in turn raise the competitive
edge of Vietnamese goods and services.
They have also contributed significantly to
stimulating economic growth by expanding the
types and quality of exports as well as [...]

6. Vietnams plastic material exports to Turkey set to rise

Vietnams export of plastic materials to Turkey
has soared in recent years and the country is
attempting to further step up shipment to
the market of 75.6 million people.
In 2011, the export turnover of plastics reached
only 7.1 million USD, but that nearly tripled to
20.7 million USD in 2013, which was a
year-on-year increase of 17.6 percent.
Although the figure touched 7.4 million USD in
the first four months of 2014, down 14 percent,
it is expected to rebound in the remaining
months of the year, as there is an upward
demand for imported plastic materials in the
Turkish market.
Turkey annually spends more than 10 billion
USD purchasing plastic materials from more
than 100 countries and territories around the
world. Up to 63 percent of the total volume
of imported plastic materials are from Saudi
Arabia , Germany , Belgium , the Netherlands
and the Republic of Korea .
According to [...]
Breaking News

7. HCM City to establish special economic zone

Ho Chi Minh City is planning to build a special
economic zone encompassing districts 7, Binh
Chanh , Nha Be and Can Gio , and part of the
citys south, the Saigon Times Daily newspaper
reported.
According to the newspaper, in a document
issued last week, Chairman of the Ho Chi Minh
City Peoples Committee Le Hoang Quan said
the economic zone was one of the major projects
to support the citys sustainable development
for 2016-2020 with a vision toward 2030.

The special economic zone is expected to create
a catalyst for production and business,
investment attraction, export and import,
services, tourism, infrastructure, seaport, and
marine development.
The plan for the special economic zone is now in
its infancy and is scheduled to be ready in the
third quarter this year. Currently, the Ho Chi
Minh City Department of Interior Affairs is
assisting the city government in [...]

8. More foreign investors keen on Vietnams hotel sector:
report
Vietnams 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 [...]
Breaking News

9. Will Vietnam become industrialized by 2020?

It is said Viet Nam lacked a strong
strategy for its 30-year industrialisation
process. Whats your position on that?
I dont think so, as the path of industrialisation
and modernisation is a long process. At the
11th National Congress in 2011, the Communist
Party of Viet Nam set the goal that Viet Nam
would basically become an industrialised nation
by 2020.

The 6th National Party Congress in 1986 was a
milestone in Viet Nams history. The congress
decided it would eradicate bureaucracy and
state subsidisation step-by-step and transition
to a market economy .
It was also at that congress that Viet Nam
embarked on a renewal process along the path
of turning the nation [...]

10. Vietnams export to Spain enjoys strong growth

Vietnams export turnover to Spain in the first
four months of this year hit nearly 799 million
USD, 31.42 percent higher year-on-year,
according to the Ministry of Industry and
Trade .
Vietnams 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
inthe domains of technology transfer and
education in the coming time.
Vietnam Spain trade in goods surmounted a
record 2.16 billion EUR (2.98 billion USD) last
year, with a rise in exports from both sides.
Spain now ranks 59th among foreign investors
in Vietnam, with a [...]
Breaking News

11. Vietnam seeks to enhance cooperation with EU

Deputy Foreign Minister Bui Thanh Son has
joined working sessions with institutions of
the European Union (EU) in order to promote
cooperation between the country and the bloc.
During his four-day visit to Belgium, which
started on June 1, Son met with his
Belgian counterpart Dirk Achten , Chief
Operating Officer of the European External
Action Service David OSullivan and Minister of
Cooperation and Development Jean Pascal
Labille , during which they discussed the
implementation of bilateral cooperation
activities and compared notes on their common
concerns.
Son asked the European Parliament and
EU member nations to soon approve
theFramework Agreement on Comprehensive
Partnership and Cooperation (PCA)
between Vietnam and the EU and recognise
Vietnams market economy before the two sides
end their negotiations on the EU-Vietnam Free
Trade Agreement (EVFTA), and facilitate [...]
12. HCM City develops supporting industries

Vietnamese and foreign
entrepreneurs discussed ways to develop the
countrys support industries at a recent forum
in Ho Chi Minh City.
Nguyen Van Tuan , Deputy Director of the
Investment and Trade Promotion Centre (ITPC)
of HCM City, said support industries have much
room to developsince they are in their infancy.
HCM City considers their development one of
its key tasks in the upcoming time, he said.

Hirotaka Yasusumi , Managing Director of the
Japan External Trade Organisation (JETRO)s
HCM City office, said the investment by
Japanese companies in Vietnam is still full of
vigour and vim , accounting for 26 percent of
total foreign investment last year, but the main
problem for Japanese firms is the difficulty in
procuring parts.
According to a JETRO survey, local
procurement of industrial materials and
sub-components by Japanese companies in
Vietnam is only 32 percent, [...]
Breaking News

13. Bloomberg: Foreign investors put trust in Vietnams market
The 18-day flow of money into Vietnam s stock
market suggests overseas money managers are
unfazed amid concern that anti- China riots in
the country willdeter foreign investment and
curb economic growth, read a story published
byBloomberg on May 19.
It said foreign investors were net buyers on the
Ho Chi Minh City stock exchangeevery day since
April 18, the longest stretch of purchases since
January. They added about 93 million USD to
their holdings even as the benchmark VN Index
slumped 8.8 percent through May 16.
According to the article, Advance Emerging
Capital, Samsung Asset Management and
Jefferies Group Inc . said theyre still upbeat
about Vietnam as inflation stays low, the
Government removes bad debt from banks and
theprospect of a Trans-Pacific Partnership trade
deal bolsters the outlook for exporters.
Our view of the outlook for Vietnam remains
bullish , the [...]
14. Domestic enterprises pay inadequate investment in
technology
Vietnamese enterprises have earmarked only
0.2-0.3 percent of their revenues fornew
technology compared to the rates of 5 percent in
India and 10 percent in theRepublic of
Korea although they have known
the importance of investments in this area, a
local newspaper reported.
Speaking at a seminar on technological
application, Duong Minh Tam , deputy head
of Saigon Hi -tech Parks management board,
said that slow technological improvement and
investments resulted in low productivity at local
enterprises, according to the Saigon Times
Daily.
The labour productivity in China, Thailand and
Singapore was 1.7, 3.6 and 39 times higher than
that of Vietnam respectively, he added.
According to Tam , the number of enterprises
spending on modern equipment accounted for a
mere 10 percent while up to 52 percent of
enterprises use outdated technology.
Deputy Minister of Science and [...]
Breaking News

15. Australian official hailed for support to Vietnams seafood
industry
Chairman of the Seafood Importers Association
of Australia (SIAA) Norman Grant has been
awarded a medal in recognition of
his contributions to promotingVietnamese aqua
tic products in Australia.
Speaking at the award ceremony in Sydney,
Grant expressed his honour at receiving the
medal from Vietnams Ministry of Industry and
Trade .
He said the achievement is a result of the active
cooperation between theVietnamese Consulate
General in Sydney, the Vietnam Trade Office in
Australia and the SIAA , and confirmed that he
would continue to support the countrys seafood
industry.
Consul General Mai Phuoc Dung hailed the
SIAA for its assistance and recognised
Grants contributions to
helping Vietnamese exporters extricate
difficulties while making inroads in the market.
Last year, Vietnam raked in over 180 million
USD from exporting seafood to Australia, and
the amount is forecast [...]

16. Dutch companies eye investment opportunities in Mekong
Delta

A delegation of Dutch enterprises had a meeting
in Can Tho city on May 8 with representatives
from Mekong Delta businesses to
seek investment opportunities in the region.
The Dutch companies mainly operate in
riverbed and seabed dredging activities,
wastewater treatment and farm produce quality
control. Dutch Consul General in Ho Chi Minh
City Simon Van der Burg said that the meeting
offered a chance for the two sides businesses to
seek partners and exchange demands for
cooperation.According to the Vietnam Chamber
of Commerce and Industry , the Netherlands is
one of the largest European investors in
Vietnam, with two-way trade hitting3.6 billion
USD in 2013. It has invested in 192 projects
totaling 6.3 billion USD in the Southeast
Asian country. In the Mekong Delta region, the
Netherlands has also carried out a lot of
programmes to support the area, including one
helping[...]
Breaking News

17. Conference aims to facilitate trade with EU

A symposium was held in Hanoi on May 7 to
pinpoint how Vietnam can meetthe
standards, specifications and labelling
requirements required of exports to the EU.
Pham Thu Giang, Deputy Director of the
Science and Technology Departmentunder
the Ministry of Industry and Trade , said the
conference helped domesticmanagement
agencies and businesses to heighten their
awareness of the regulations, creating
conditions for the two sides to realise a
planned Free Trade Agreement (FTA).
She added that the event enabled home
producers to update information on
labelling requirements for exports shipped to
the EU, especially garments, footwear and
plastic products.

David Martin , an expert of the European Trade
Policy and Investment Support
Project (EU- MUTRAP ), said the programme
drives at aiding Vietnam inincreasing its
integration with global trade and fostering
economic [...]

18. Electronics industry offers opportunities to domestic
businesses

The worlds leading electronics companies have
strongly invested in the construction of
manufacturing facilities in Vietnam. Together
with a strong growth, the electronics industry
offers opportunities for domestic businesses to
strengthen cooperation and participate in the
global value chain, the Vietnam Economic
News reported.
According to experts, the world electronics
market would strongly grow in the upcoming
time with an average growth of 10-12 percent.
Products are forecasted to strongly grow
including digital devices, computers, especially
tablets and mobile phones. In particular, digital
devices predicted to grow by 15-18 percent. In
addition, markets would pay special attention to
medical electronic equipment.

An economic crisis made a difficult period for
the electronics market. However,the market was
quick recovered and has strongly grown as
applications of [...]
Breaking News

19. Vietnams manufacturing grows strongest in 3 years

Rising orders helped push Vietnams industrial
output growth to its three-year record high,
according to the latest HSBC report.
The Purchasing Managers Index (PMI), which
tracks manufacturing conditions, rose to 53.1 in
April from 51.3 the previous month and
surpassed the previous high recorded in April
2011, when the survey began.
Business conditions have strengthened for eight
straight months as the PMI remained above
50the no-change mark. The index is based on
new orders, output, employment, supplier
delivery times, and stocks of items purchased.
The rate of growth in new orders received
by Vietnamese manufacturers, including those
from abroad, was the fastest in the surveys
history.
Input buying also expanded at a record pace and
led to the first rise in stocks of purchases since
October 2013. Some surveyed businesses said
they expected further growth in coming [...]

20. Vietnams economy 39 years after national reunification

The Vietnamese economy has expanded 7.8
times since the country regained national
independence in 1975, the Government news
portal reported.
The economy posted a continuous growth since
1981 and the GDP per capita increased from 86
USD in 1980s to 1,899 USD in 2013.

Vietnam shifted from centrally-planned to
market-based economy and has increasingly
integrated into the global community.

Investors from 90 countries and territories have
poured some 270 billion USD and the disbursed
volume reached 114 billion USD. The FDI sector
accounts for around 45% of Vietnams industrial
production value and 20% GDP.

International friends have pledged to grant
some 81 billion USD in official development
assistance to Vietnam and over half of the total
figure has been disbursed.

At present, Vietnam has set up trade relations
with around 200 countries andterritories with
the aggregate [...]
Breaking News

21. Stronger support needed for SMEs: experts

Vietnam should provide more support for small-
and medium-sized enterprises (SMEs) to help
them improve capacity and competitiveness,
said Alain Chevalier, chief advisor for a SME
assistance programme.
At a recent seminar on Vietnam-France
trade and investment promotion held by
the Ministry of Industry and Trade (MoIT),
Chevalier praised the fine adjustment made by
the Vietnamese Government in the scale of
State-owned enterprises (SoEs).

Further assistance to SMEs and a reduction in
the number and scale of SoEs have
demonstrated Vietnams sound policies, he was
quoted as saying by radio theVoice of
Vietnam (VOV).

The advisor noted that Vietnamese people are
very intelligent and creative, with many
initiatives for developing the household
economy and if they receive the right support,
they can develop SMEs effectively.

With enormous potential
for developing service [...]
22. Exports of electrical cables and wires grows 11 percent

Exports of electrical cables and wires
reached US $157.35million in the first
quarter this year, an increase of 11.4
percent over the same period last year,
according to the Ministry of Industry and
Trade.
Production at an electrical cable company in
HCMC (Photo: SGGP)
Japan is the largest importer with total export
turnover of US$43.78 million in the first
quarter, an increase of 8.62 percent over the
same period last year. This accounts for 27.8
percent of total export value.
China ranks the second largest importer
growing 31 percent. South Korea ranks the third
largest importer growing 46 percent.
Export turnover to Singapore decreased 35
percent since the same period last year. Imports
for Thailand and the Philippines decreased 17
percent while imports for Laos decreased 58
percent.
Breaking News

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