Development Strategy of Hai Phong city to 2020

Author: Hoa Nguyen, MBA.,MA.

Hai Phong, which is located in the Northern Focal Economic region, has a strategic location and huge potential and advantages for development. With 1.507,57 km2 and a population of 1.907.705 people, Hai Phong is the third - biggest - city in Vietnam. Hai Phong is also well known as it has the largest seaport in the country. Over the past years, being aware deeply about the important role of FDI for Hai Phong's development, on September 12, 2011, Hai Phong People Committee announced the essential directive No 26/CT - UBND for fostering FDI in Hai Phong city. This directive indicates detailed duties of relevant local agencies and organizations in getting and supporting FDI within this province. In term of investment perspective, it is necessary to review the decision No 01/2009/NQ-HĐND on economic development towards sea oriented to 2015 and a vision for 2020 in order to find out investment opportunities.

In this decision, six core economic sectors shall be prioritized to develop. First is development of port system, maritime services and maritime transport. Second is development of economic zones, industrial parks and urban areas along the coast. Third is ships and floating facilities building and repairing industry. Forth is fishing economic. Fifth is Marine Tourism  and Sixth is  Islands districts development.
Considering from strategic directions created by Hai Phong People Committee, two important strategies should be remarked since they have provided investors many opportunities to invest.
Firstly, Dinh Vu - Cat Hai economic zone is looking forward being one of the biggest international commercial hubs of the Northern Focal Economic Area and national wide, as well. This plan opens many opportunities for foreign investors to invest in commerce, tourism and logistics services. The links among this hub with other international commercial hubs in ASEAN and Pacific region shall create many business opportunities and promote international trade.
 Secondly, Cat Hai  and Bach Long Vi islands are targeting to become an international tourism and resort center. They are also planning to develop logistics and maritime transportation services. This strategy also suggests investors in looking for investment opportunities in tourism, especially in  ecotourism since Hai Phong has abundant natural resources. In addition, investment in logistics towards  maritime transportation is still a good idea since Dinh Vu - Cat Hai becomes the international commercial hub as already mentioned.
 Aren't you able to wait longer to find your investment opportunities here??? You have your answer, already!!! 

Effort of Bac Ninh province in getting foreign investment in period of 2013 - 2020, towards 2030

Author: Hoa Nguyen, MBA.,MA.

Bac Ninh province, which is located in the Northern focal economic region, is one of the most successful provinces in getting foreign investment because of its advantages in development and investment environment. Since Bac Ninh was split-ed out of Ha Bac province in 1997, it got positive results in getting foreign investment with 343 projects costing of 4.3 Billion USD in registration. Korea and Japan are the biggest investment countries there. Now, Bac Ninh has 15 industrial zones, 1 information technology zone and 30 industrial groups. Bac Ninh is focusing on getting foreign investment in high technology and environment - oriented industries. In order to support foreign investment towards transparent investment procedures, Bac Ninh People Committee announced the decision No 293/QĐ-UBND, date of 12/8/2013 to approve the project named " Proposal on getting foreign investment in Bac Ninh province, in the period of 2013 - 2020 and a vision to 2030". In this proposal, the achievements and shortages of getting foreign investment in the past 15 years were analyzed in order to propose solutions and orientations for getting foreign investment in the next years.

Investment orientations in Bac Ninh province are provided as following:
 First, Bac Ninh set its priorities for getting investment in Electronic industry, Industrial support and other services, mainly in commerce and tourism, as well as infrastructure.
Second, Bac Ninh encourages partners, who can bring high technology, advanced management methods to support creating edge industries of this province. It also expects to get investment from reputable and strong financial capacity partners.
Third, promotion for social sustains, local incomes increasing as well as another social efficiency is also mentioned in investment orientations of Bac Ninh province.
Fourth, getting foreign investment towards area - oriented is discussed in this proposal. In the north of Duong river area, investment in industries, agriculture and services are encouraged in Yen Phong and Que Vo. The projects on commerce, tourism and urban development shall be focused in Bac Ninh city, Tien Du and Tu Son town. In the South of Duong river area, projects of manufacturing, processing,commerce and services shall be performed in Thuan Thanh while projects of agriculture, commerce, service and infrastructure shall be implemented in Gia Binh and Luong Tai. The most important thing is that Bac Ninh province does not approve projects of manufacturing outside industrial zones.
Bac Ninh province commits to change its mechanism with supportive policies for foreign investment in promoted projects, including:
 - Supports in land clearance
- Supports in training and providing qualified human resources
- Supports in infrastructure building inside and outside projects' fences
- Supports in research and technology transfer as well as creating high technology models.
- Supports in legal procedures
- Open for various investment types such as BOT, BTO, PPP
In the context of international investment growth since Vietnam has become one of the most profitable investment destinations in ASIAN, Bac Ninh's policies shall lead to its success in getting foreign investment. Is it a big question ???? 

Emiratisation and a thought for Vietnamese education system

Author: Hoa Nguyen, MBA.,MA.

In the two past decades, the United Arab Emirates (UAE) Government encouraged to hire expats to fulfill the lack of qualified human resources after its robust economic growth fueled by the oil exploration. As a result, ratio of expats in the workforce was 82 percent!!!  The overwhelming ratio of expats in the labor force showed that this strategy was unsustainable for economy growth and it was necessary to find another solution. Thus, Emiratisation was promoted to increase the employment rate of nationals in the efficient and meaningful manner in both public and private sector. Emiratisation has been implemented by integrated performances in relevant sectors such as education, finance, and policy making. Looking back to Emiratisation strategy in the UAE education sector, we can learn helpful lessons. The most important thing is that the UAE Government has promoted for the connection between schools and enterprises in education and training to ensure a match between the training results and the labor market requirements. Since then, the employment rate of nationals can be increased. The Government announced appropriate policies, including financial support to assist enterprises in hiring national, as well. In additional, the Government exhorts schools to get accredited programs with international recognized schools and improve their system by enhancing teacher's skills, changing teaching methods with application of "students - centered approach" and modifying training programs, which includes teaching English as the official language. These solutions aim to improve education quality for providing qualified national employees for the labor force in this country.
Emiratisation performances suggest helpful experiences for Vietnamese education system since our system has demanded to reform. Main lessons are found as follows:
 First, education reform must contribute to the overall strategy of Vietnamese economy in globalization context. Education and Training aim to provide qualified human resource for the economy, so it is necessary to link this sector with relevant sectors in the reform process. Like Emiratisation, UAE's education aims to increase the employment rate of nationals by providing them sufficient knowledge, excellent skills and the right attitude in working. Therefore,  Emiratisation is launched as a package of the Government solutions instead of focusing only on education or human resource independently!!!
Second, in the tactic perspective, it is very important to foster a close connection between schools and enterprises in training. This connection ensures the match between training outcomes and the labor market's requirements as well as socialization in education. Getting accredited programs with international recognized schools and external examination performed by dependent qualified testing organization are also good ways for schools in the development process. In addition, with the strength of internet, it is not difficult for schools to develop diversified tests and examination as well as training techniques for students. Student - center approach should be applied fully in the training process, from building training program, selecting teaching methods, performing lessons to examining students.
Third, it is necessary to define specific segments of education sector to have a proper management policy. Whereby, private schools should be opened for foreign investors after deliberating their qualifications to utilize their strengths. Public schools also need to be recognized internationally step by step by getting accredited programs or close cooperation with international recognized schools, especially in university level.  This point also opens for international cooperation in education.
In conclusion, at the present, Emiratisation has gotten positive results with higher employment rate for nationals and this strategy is still performing in the UAE. Although this approach has been facing problems needed to be handled in the next steps, this strategy has contributed significantly in education reform for this country. So of course, learning from other's positive points shall lead to the least damage!!!

Pictures painted by a  Vietnamese 9 - years  -old student

M&A in Vietnam

Author: Hoa Nguyen, MBA.,MA.

Since the past five years, evidences have been showing that M&A are vibrant, and they are foreseen to develop in Vietnamese economy in the next years. Main reasons for their future expansion are found out as follows:

First, the Government promotes equitization of State owned companies to reduce the quantity of this sector with targets of 600 companies in 2015 and 300 companies in 2020, according to Vice Prime Minister, Mr. Hoang Trung Hai. Thus, inefficient State owned companies shall be merged or acquired.
Second, in the context of domestic economy's difficulties, Vietnamese Government tends to promote foreign ownership, up to 60 percent, potentially!!!. It is a firm point to foster foreign investment in profitable sectors such as finance and banking, securities, real estate, agriculture, and consumption since Vietnam is known as an attractive destination for foreign investment. Vietnam has high GDP growth rate (more than 5% regularly), skilled labor force at low price, more than 80 million people - market with continuously increased incomes, advantages for investment environment coming from Government policies, including low cost.
Third,  internal restructuring and reform by merging or acquiring with external ones is  a general trend of Vietnamese enterprises in order to increase enterprise's competitive capacity, at the present.
Although, Vietnam is facing to macroeconomic issues and fierce competition from others in the South East Asia, it is still increscent market to invest, according to KPMG report named "M&A in Vietnam, from transaction performer side". In this report, KPMG also indicated that enterprises were valued at a low price but sellers still required the higher price; Asset value was still limited. EBITDA was average at 8X and valuable method was the income coefficient; It regularly took from 6 months to 12 months from the beginning to complete transaction in Vietnam.
In conclusion, because of benefits gaining from M&A and it's necessary for an inefficient company to survive, Vietnamese companies, who shall do the transaction, and foreign investors should provide sufficient information for M&A if a transaction is made towards "win - win" solution. Thus, they can get mutual benefits, which become great basis for the long term cooperation.

MobiFone is being splited out of VNPT to equitize, an opportunity for foreign investors ?

Author: Hoa Nguyen, MBA.,MA.

After the approval of the Prime Minister on the project named ""Restructuring of State Owned Enterprises, focusing on the State Owned Economic Groups in the period of 2011-2015" in the Decision No 929/QĐ-TTg,17/7/2012, the discussion on restructuring Vietnam Post and Telecommunication Group (VNPT),  has raised. A Proposal with detailed options from this Group has been proposed to the Government and has gotten high attention of the whole society because of the important role of this Group in Vietnamese economy.

In the meantime for the final decision on restructuring's options, VNPT got lower gross profit than Viettel's in 2013 with only 9.265 Billion VND, compared with 35.086 Billion VND of Viettel although Viettel accessed this market later than VNPT. The revenue race between VNPT and Viettel is  a fierce day by day.

Recently, it is said that Mobifone, which is contributing of 60 - 70% of VNPT's Gross Profit, is splitting out of VNPT and becoming an independent corporation. Mobifone is being equitized  soon and being expanded its business scale after its equitization, as well.

The decision of splitting Mobifone out of VNPT implies a strong determination of Vietnamese Government in restructuring State Owned Enterprises towards an effective operation and the long term development in the market economy.

Mr. Le Ngoc Minh, Chairman of Mobifone, Deputy General Manager of VNPT, stated that MobineFone would have a great opportunity to develop if it was splited out of VNPT. MobiFone would face no problems in organization, finance and management, as well. Moreover, with more than 6000 Billion VND profit, MobiFone has a large amount of capital depreciation because its divestment is only 1.600 Billion VND. MobiFone shall diversify its business instead of focusing on mobile communication as it has operated.

Is there an increscent chance for foreign investors when MobiFone is equitized since it is one of three famous brand names in Mobile Communication Industry in Vietnam ? You know the answer, as well!!!

Valentine's Day in Vietnam

Author: Hoa Nguyen, MBA.,MA.

Today is a special Valentine's Day with the interesting date of 14.02.2014. Valentine's Day is celebrated in various countries around the world, although this day is not a holiday in most of them. In Vietnam, Valentine's Day is also celebrated and becomes a special occasion for couples to show their love for each other. Chocolates, roses, and greeting cards are traditionally given as gifts, but many other creative gifts are also given to beloved people on this day. However, relationships, which are invaluable as they become a unique feature in Vietnamese culture values, are being promoted in this day. Vietnamese people do not only care about their lovers, but they  also care about their family and friends. Therefore, Valentine's Day may become an important day in Vietnamese culture for people to express their love and respect to all of their loved ones. This mixing of values of Western Culture with Vietnamese Culture may lead to an interesting Valentine's Day in Vietnam.

In term of business, creative services and gifts are attracting Vietnamese consumers. In some online advertisements, we can see some funny services such as "Lover for lease" with diversified packages, even including from A to Z package!!! Looking inside this service, we understand that Vietnamese young people care about their family and friends so they want to have a lover in Valentine's Day to satisfy their relatives. In fact, their family members always ask them whether they have a lover or not  when they are from 18 years old. Promotion for family care in Valentine's Day instead of only couple care in this day may make Vietnamese young people feel free and enjoy their moments with their family rather than finding a phony lover.

Happy Valentine Day :D

E-commerce in Vietnam - a brief view from the case of VinGroup

Author: Hoa Nguyen, MBA.,MA.

Although E commerce is general in development countries, it is still new in Vietnam. In 2010, The Prime Minister announced the Decision No 1073/QÐ-TTg for approval of  E -commerce development overall plan in the period of 2011 to 2015. The main purposes of this plan are to promote E-commerce to become a general trade channel, and go to the advanced level in ASIAN economies. However, the negative effect of the global financial crisis seems to slow down E-commerce steps.

On Feb, 2014, a significant change in VinGroup's Management Board with a new CEO, Mrs. Duong Thi Mai Hoa replaced to Mrs. Le Thi Thu Thuy, has revealed a strong interest of VinGroup in E - Commerce. VinGroup has decided to join in E-commerce business with the establishment of Vin-Ecom. This company aims to create retailing channels for its products and its partners' products, as well.

The action of VinGroup seems to respond timely to the decision of Vice Prime Minister, Mr. Hoang Trung Hai, in asking Minister of Industry and Commerce to review and complete the proposal for building and implementing E-commerce development plan from 2014 to 2020. This proposal shall be approved by the Prime Minister on Feb, 2014.


Advantages of VinGroup, which come from its 1000 Billion VND package for E-commerce, competitive advantages of the pioneer in the aboriginal E-commerce business in Vietnam, and the supportive policies from the Government seem to lead this Group to succeed, do they?

Facebook marketing - an effective marketing campaign for Vietnamese market

Author: Hoa Nguyen, MBA.,MA.

Statistics reveals that about 20 million Vietnamese people are using Facebook with 90% from the range of 14 to 35 years old. Thus, revenues getting from Facebook marketing campaigns of companies here tend to increase dramatically. Since perceiving potential profitable business here, Facebook has been dealing  with local agencies to sign cooperation agreements, and Clever ads company has just become the first Authorized Re seller of Facebook in Vietnam.
The phenomenon of Facebook blooming in Vietnam suggests companies that it shall be smart if they spend their priority in doing Facebook marketing campaign since Twitter and LinkedIn are still not much been interested in Vietnamese people.

In order to implement successfully Facebook marketing campaign, a business does not only need to set up judiciously its market target and to have a perfect implementation plan, but it also need to follow online advertisement rules of Vietnam government. According to Mrs. Le Thi Ha, Division of Legal Affairs, Department of E-Commerce and Information Technology, Ministry of Industry and Commerce, Vietnam, every website, which allows individuals and companies to do business, is determined as E-commercial website, and if it is fit with Article 2, Decree No 52, it is registered to Ministry of Industry and Commerce, Vietnam. In additional, the Circular 12/2013/TT-BCT was announced to guide companies in registration procedures.

In the tactic perspective, Facebook marketing campaign should be outsourced to save resources for business since many talent students are willing to provide their services in managing Facebook sites, which can help them to earn extra money. Students, who are studying business and have a "think out of the box" approach, can bring the excellent Facebook marketing services for the business. Facebook is the best suit for young people, as always. Social media marketing services may arise in this market soon like in others over past years. 

Invest to Vietnam, why not ?

Author: Hoa Nguyen, MBA.,MA.

Known as one of emerging economies in South East Asia, Vietnam is providing many profitable opportunities for foreign investors. Here are main advantages for investment opportunities to Vietnam.

1. Stable political conditions: Since the independent day in 1945, Vietnam has been running only one political system with domination of Vietnam Communist Party. This fact leads to stable political conditions without any political disputes. Vietnam Communist Party is leading the Government in creating the development strategy, policies, especially promotional policies for economy development. The "green light" for foreign investment is also turned on by specific policies and rules from the Government.

2. Huge market with more than 80 million people, who are finding high quality of products and services due to the lack of food safety and terrible existing products imported from unsafe sources.

3. Vietnamese economy is recovering from the global financial crisis by positive supports from the Government. In 2013, GDP growth rate has been estimated at 5,4%. GDP growth rate is also estimated at 5,8% in 2014 and 6% in 2015.

4. Profitable rate of this economy is higher than development economies because of the development rules, determined by the role of technology and economic scale. Foreign exchange rate forecasts to be stable in the next years.

Nhon Trach Industrial Zone - Vung Tau - Vietnam

5. Young Vietnamese people love "new trends" in consumption and lifestyles, which come from foreign economies. And the case of McDonald's Vietnam is a strong evidence for the mentioned trend. People were excited to wait for enjoying its products in the first launched day of this brand in Ho Chi Minh city.

6. Vietnamese incomes are increasing significantly. At the present, Vietnamese GDP per ca-pita is at nearly $2000/year, reported by IMF in 2012.