[Round-up] Vietnam Tech Startups Boom, PM Okays Switzerland-funded Public Finance Project

Tuan Minh

17:48 09/05/2016

BizLIVE - Tech startups are now growing fast in Vietnam, making the country a regional technology hub. The Vietnamese prime minister has recently approved a technical assistance project involving consultations and analyses of public finance management in the country.

[Round-up] Vietnam Tech Startups Boom, PM Okays Switzerland-funded Public Finance Project

Tech startups are now growing fast in Vietnam, making the country a regional technology hub.

Bio-fuel Makers, Distributors Want More State Support
E5 gasoline producers and distributors need more state support to sell the product in the local market due to the numerous difficulties they face, the Vietnam Petroleum Association said.
To achieve this target, the state must re-organize the ethanol production system to reduce production costs and meet the demand for ethanol from bio-petrol processors, said Phan The Rue, chairman of the association. In addition, the state should adopt a policy to further reduce the price of E5 petrol to encourage local consumers to buy it.
Vietnam PM Okays Public Finance Project
The Prime Minister has recently approved a technical assistance project involving consultations and analyses of public finance management in Vietnam, aimed to improve the public finance system in the country in terms of efficiency and effectiveness of public expenditure and public service.
The project is funded by the Swiss Economic Co-operation and Development (SECO) organization and Global Affairs Canada through the World Bank.
It’s Time for Vietnam Retail Firms to Grow up
Experts have noted that it is time Vietnamese retail firms grew up and adopt modern retail practices in the context of recent penetration of foreign retailers from Thailand, Japan and France, fuelled by the participation of Vietnam in a series of new-generation free trade deals.
Among the recommendations is that Vietnam’s retailers promote local production through distribution and compete with foreign rivals during the current merger and acquisition (M&A) boom, according to the Vietnam News Agency.
HCM City Sets up Center to Display Supporting Industry Products
Ho Chi Minh City’s Department of Industry and Trade last weekend inaugurated a center to display products made by parts supplying industries.
Pham Thanh Kien, the department’s director, said setting up the center is part of the city’s efforts to help businesses in the parts supplying industries promote their products and production capacity, and enable them to link up with local and foreign partners and enter the global supply chain.
Vietnam Software Exports Rise, Says VINASA
Vietnamese exports of software have risen dramatically but sales in the domestic market fell during the 2011-2015 economic downturn, according to the Vietnam Software Association (VINASA).
Software exports and the IT service market reached an annual growth of 30%-40%, especially in the Japanese market. Vietnam is Japan’s No 1 software partner, with a high number of orders and increased value.
LG Starts Building $1.5 Billion Screen Factory in Vietnam
LG Display Group last week started the construction of a $1.5 billion factory in Hai Phong City, which will produce digital displays using LG’s latest technology organic light-emitting diode (OLED).
The facility, covering more than 40 hectares in Trang Due Industrial Park, is slated to go into operation next year.
Singapore Second Biggest Investor in Vietnam YTD
Singapore has emerged as the second biggest foreign investor in Vietnam after pumping in $730 million worth of investments during the first four months of 2016, according to the Foreign Investment Agency.
On average, Singaporean firms invested about $22.7 million in a project, surpassing the typical amount of around $13.8 million from other overseas investors.
Vietnam Tech Startups Boom
Well-known for its relatively low-tech textile and agriculture industries, Vietnam is fast becoming a regional technology hub. Multinationals such as Samsung and Intel already have multi-billion dollar presences here, and Vietnam tech startups are now joining the scene in a big way, according to aecnewstoday.com.
Though there are no concrete statistics on tech startups in the country, Japan’s SoftBank Group Corp. estimates that there are about 1,500 currently in operation. If correct, this would mean Vietnam has more startups relative to population than regional neighbors China, Indonesia, and India.
Da Nang to be Route-Inn’s First Overseas Market
The central city of Da Nang will be the first overseas market of Japan’s Route-Inn, a former city official told the Vietnamese newswire Infonet.vn.
Over the past year, Route-Inn has developed three large projects in Da Nang and Hoi An, including the acquisition of Da Nang Hotel, a fresh 35-storey hotel project and the Grandvrio Resort Vietnam. In addition, the Japanese firm has planned to build a golf course in the city.
Total assets of banks operating in Vietnam reached 7,373.6 trillion dong ($327.72 billion) at the end of February 2016, increasing 0.74% from December 2015, bouncing back from a 0.44% decrease in January, data of the State Bank of Vietnam (SBV) showed.
State-controlled commercial banks were the only group that saw their assets down in the month, by 0.13% from the end of last year to 3,299.72 trillion dong ($146.65 billion).
Thai conglomerate Siam Cement Group (SCG) will resume a long-delayed refinery project worth $4.5 billion in Vietnam’s southern province of Ba Ria-Vung Tau in the fourth quarter of this year, local media reported.
The Southern Petrochemical Complex Project of Long Son Petrochemical Company Limited had the site clearance finished and is preparing to restart the construction at the year-end, said Dhep Vongvanich, SCG country director-Vietnam, at a meeting last weekend with Dinh La Thang, chief of Ho Chi Minh City’s party commission.
A consortium of three U.S. firms and Vietnam’s Imex Pan Pacific Group (IPP) has unveiled a plan to invest up to $4 billion in a real estate complex in the fast-growing Thu Thiem new urban zone in Ho Chi Minh City, local media report.
Cantor Fitzgerald, Weider Resorts, Steelman Partners and IPP decided to make such a landmark investment instead of $300 million drawn up initially, after Dinh La Thang, head of HCM City’s party committee, expressed hope that the city would regain the leading role in Southeast Asia, said IPP Chairman Johnathan Hanh Nguyen.