According to JLL’s Market Overview Report, the number of inquiries is still significant but the transaction is stalled because of Covid-19 outbreak.
In Q1/2020, the demand for land is still high thanks to Vietnam’s good industrial development background in previous quarters. However, from February 2020 when the COVID-19 outbreak began, the restriction of movement among regions has caused the delay to the transaction, because investors especially foreign investors, can not directly take a field trip or work with industrial park developers. Successful transactions in the quarter were mostly done before the epidemic. The occupancy rate of the whole area is increased at a relative rate, about 200 percentage points compared to that in Q4/2019 and reached 72% by the end of Q1/2020.
The land area is still sufficient to meet the leasing needs
According to a report of the Department of Economic Zone Administration (Ministry of Planning and Investment), by the end of March 2020, Vietnam has established 335 industrial parks (IPs) with a total natural land area of about 97.8 thousand hectares; in which industrial land area is about 66.1 thousand hectares, 260 industrial parks have been put into operation with the occupancy rate of about 75.7%; 75 industrial parks are under construction with a total area of about 29.2 thousand hectares. For economic zones (EZs), the whole country has 17 coastal economic zones with a total land area and water surface of more than 845 thousand hectares, the leased land area in functional areas in the EZ reaches over 40 thousand hectares.
No new IPs has been put into operation in the last quarter. Bac Ninh and Hai Phong with large supply still play the role of two leading industrial markets in the North. Thanks to the strong industrial development foundation, the trend of new industrial parks and expansion stages will also focus on developing mainly in these two provinces. Land price keeps rising amid the crisis and Vietnam has been a promising destination since the wave of factory relocation from China began. Although the Covid-19 epidemic is causing certain difficulties with business decisions and relocation activities, IP owners are still confident to increase land prices as it is a long-term investment trend. With a well-developed infrastructure and sharing border with China, the North attracts most of the major manufacturers who want to diversify their production portfolio besides their facilities in China. Therefore, the average land price in Q1/2020 reached US $ 99/m2/lease period, up 6.5% over the same period last year. Ready-built factories – a favorite choice of small and medium-sized businesses – remain stable at rent of US$ 4.0-5.0/m2/month, and are fully occupied already.
Source: Report of Department of Economic Zone Management, Quarter I / 2020 – Ministry of Planning and Investment; JLL.
On March 30, 2020, the Council of Europe adopted a Free Trade Agreement (FTA) between the European Union (EU) and Vietnam (EVFTA).
Mr. Gordan Grlić Radman, Croatia’s Minister of Foreign Affairs and European Affairs – the EU’s rotating chairperson – said: “This agreement is the second document that EU has signed with a Southeast Asian country, after Singapore. It is also the most ambitious free trade agreement ever signed with a developing country.”
The Vietnam – EU Investment Protection Agreement (EVIPA) was also signed at the same time with the EVFTA Agreement on June 30, 2019 in Hanoi. The EVIPA Agreement will need to be ratified by all member states according to the respective national procedures before it becomes effective. Once approved, this Agreement will replace the bilateral investment agreements that 21 EU member states currently have with Vietnam.
Leaders of the Party, State and National Assembly have recently affirmed their determination to ratify EVFTA in the shortest time.
EVFTA is a comprehensive and high-quality agreement, it guarantees mutual benefit for both Vietnam and the European Union (EU), having taken into account the development gap between two sides.
This agreement was started and concluded in the context of the sound bilateral development of Vietnam-EU bilateral relations, especially in the field of economy and trade.
EU is one of Vietnam’s leading trading partners with a two-way turnover of US$ 56.39 billion in 2019, of which exports reached US$ 41.48 billion, imports from the EU reached US$ 14.91 billion.
On February 12, the Free Trade Agreement and the Investment Protection Agreement (IPA) were approved by the European Parliament (EP). On March 30, the European Council decided to ratify the EVFTA Agreement. This is an important decision, marking the completion of the entire process of ratification of the EVFTA Agreement on the European Union’s side.
Under the process, the EVFTA Agreement will take effect after being ratified by the National Assembly of Vietnam and 30 days after the two sides complete the procedures to notify each other.
According to economic experts, although the Covid-19 epidemic is causing certain difficulties, Vietnam is still a potential destination in the long term thanks to the positive outlook of the economy and the wave of manufacture transition away from China. Facing this trend, Viglacera’s industrial parks (IPs) continue to maintain their attraction to many investors in the first quarter of 2020.
From the fourth quarter of 2019, Viglacera has continuously welcomed many leading enterprises from China, Taiwan, Hong Kong, South Korea, Japan and Europe to survey IPs, estimating the total leased land area over the past time up to over 60 hectares with total investment of hundreds of million dollars.
Specifically, Phu Ha Industrial Park (Phu Tho province) has successfully attracted 4 FDI from Hong Kong, Taiwan, South Korea producing children’s toys, automobile lights, camera components for mobile phones and manufacturing helmets and its accessories.
At Dong Van 4 Industrial Park (Ha Nam), the world’s leading synthetic diamond manufacturer and processor ILJIN Diamond (South Korea), after a thorough research, has decided to invest in building the first factory in Vietnam. At the same time, the park welcomed another Korean company, specializing in the production of automotive dashcams, and a number of other domestic investors.
As noted, in the first 3 months of 2020, Dong Mai Industrial Park has welcomed 7 more foreign enterprises which decided to rent a land area of nearly 25ha to manufacture electric bicycles, electromechanical tools, mechanical parts, assembling and accessories.
Besides, even though Yen Phong 2C Industrial Park (Bac Ninh) was just started in January 2020, it immediately received the attention from many investors, quickly reached an agreement and signed initial contracts with HyoSung TNS Inc (a member of HyoSung Corporation) along with other supporting businesses.
HyoSung Corporation is known as one of the global scales, multi-disciplinary corporations and also one of the three largest economic groups in South Korea with 114 factories, centers and sales offices in 29 countries and territories around the world.
Viglacera’s IPs constantly attract the attention of domestic and foreign investors
That the Covid-19 outbreak started in February 2020 makes impossible for investors, especially foreign investors to come to Vietnam, however they still stay in touch with Viglacera via online contacts to ensure the progress of implementation of the investment and business plan in 2020, many of investors have already booked for a site visit after the disease is controlled.
This is a positive signal for the recovery and development of the industrial park’s real estate market in general and Viglacera’s investment attraction in particular. At the same time, in order to prepare for the recovery after the disease, Viglacera has been mobilizing resources to clear the site and complete infrastructure for the next land lots.
Map of Viglacera’s industrial parks in Vietnam
(Phu Tho, Bac Ninh, Hung Yen, Ha Nam, Thai Binh, Quang Ninh, Thua Thien Hue)
Up to now, Viglacera has developed 11 industrial parks in Vietnam and 1 economic zone in Cuba, attracting nearly 15 billion USD of FDI capital from more than 300 domestic and foreign enterprises, creating jobs for tens of thousands of workers in the area. Thanks to the favourable locations in many provinces, Viglacera’s Industrial Parks offer a diverse land selection to investors to meet their business needs. All industrial parks have clean land with adequate, synchronous and modern infrastructure, and are all ready to welcome businesses to lease and build factories.
Proud to be the leading industrial park developer in Vietnam with over 20 years of experience, Viglacera is now owning many active industrial parks, such as: Tien Son Industrial Park (Bac Ninh), Yen Phong Industrial Park (Bac Ninh), Yen Industrial Park Phong 2C (Bac Ninh), Phu Ha Industrial Park (Phu Tho), Hai Yen Industrial Park (Quang Ninh), Dong Mai Industrial Park (Quang Ninh), Tien Hai Industrial Park (Thai Binh), Dong Van IV (Ha Nam), Phong Dien (Thua Thien Hue), Yen My Industrial Park (Hung Yen), ViMariel Economic Zone (Cuba). It is expected to start Thuan Thanh Industrial Park (Bac Ninh) in 2021.
For further information, please contact the hotline: (+84) 888 25 22 88 | Website: https://viglaceraip.com
More images of Viglacera’s IPs:
The government has passed a VND62 trillion ($2.6 billion) financial support package for poor people and businesses affected by the Covid-19 pandemic.
The package, approved by Prime Minister Nguyen Xuan Phuc Friday, targets six categories of individuals and businesses.
Poor people await aid from a charity group on Ly Chinh Thang Street in District 3, HCMC, April 3, 2020. Photo by VnExpress/Nguyet Nhi.
Those people losing their jobs due to the Covid-19 crisis for 14 days or more will get a monthly allowance of VND1.8 million ($77).
Part-time workers who are unemployed but have not received unemployment benefits will get a monthly allowance of VND1 million ($43).
Poor and near-poor households would receive VND250,000 ($10.7) per month while those with a record of meritorious services to the nation would get VND500,000 ($21.5) per month.
Household businesses with revenues below VND100 million ($4,300) a year who’ve have had to suspend operations from April 1 due to the Covid-19 pandemic would also be supported with VND1 million per month.
The financial support will be provided over at least three months until June. Of the VND62-trillion package, nearly VND36 trillion ($1.55 billion) will be taken from the central government and local administration budgets.
In addition, businesses that have suffered financial difficulties as a result of Covid-19 will be allowed to borrow money from the Vietnam Bank for Social Policies at zero percent interest to pay their employees’ salaries for three months. The loans will cover a maximum of 50 percent of the local minimum wage, and businesses will be responsible for paying the remaining salary.
The Planning and Investment Ministry has estimated that 250,000 workers will lose their jobs this quarter and another 1.5-2 million face a similar threat in the coming months.
The ministry has also warned that if the pandemic situation worsens, 400,000 would lose their jobs and three million more could be laid off.
The government has ordered “non-essential” businesses like massage parlors, karaoke bars, tourist and amusement sites, movie theaters, beauty salons, beer shops, restaurants, and eateries to be closed until April 15, saying the country was entering a critical two-week stage in its Covid-19 fight.
As of Friday morning, Vietnam had recorded 255 Covid-19 patients, 131 of whom have been discharged.
The Covid-19 pandemic has claimed 95,500 lives in 209 countries and territories.
Vietnam’s GDP growth hit roughly 3.82 percent in the first quarter, the lowest since 2010, due to the coronavirus impact, according to the General Statistics Office. Last year, GDP expansion hit 7.02 percent, the second highest growth figure in the last decade, after the record 7.08 percent in 2018. – VnExpress
Prime Minister Nguyễn Xuân Phúc on Wednesday approved Decree No 41/2020/NĐ-CP about the extension of deadlines for tax and land use fee payments to support businesses suffering from the COVID-19 pandemic.
The decree took effect immediately.
The extension would be five months from the deadline for payments.
Stores on Lương Văn Can Street, Hà Nội half close their doors, only serve take-aways or online orders due to the impact of COVID-19. Businesses now enjoy a five-month extension for tax and land use fee payments. — VNA/VNS Photo Ngọc Hà
Accordingly, businesses operating in agro-forestry-fishery, food processing, textile, garment and construction industry would enjoy the extension, besides those operating in transportation, warehouse, accommodation and catering, education, medical services and part-supply industry.
Others subject to the extension included small and micro – sized enterprises and credit institutions and branches of foreign banks which provided support to their customers who were hit by the COVID-19 pandemic following the requirements of the State Bank of Việt Nam.
The State Bank of Việt Nam would be in charge of announcing the list of eligible banks for the extension.
The five-month extension would be given to value added tax (VAT) of the assessment periods of March, April, May, June, the first quarter and the second quarter. As a result, the payment of VAT of March assessment period would be extended to September 20 while of second quarter assessment period to December 20.
For corporate income tax (CIT), extension would be given to the remaining sums of 2019, provisional tax of the assessment period of the first and the second quarter.
For household and individual businesses, the deadlines for paying VAT and CIT was extended to December 31.
Payment of land use fees would also extended five months from May 31.
The decree also allowed businesses operating in multiple sectors, one of which was subjected to the extension, would also enjoy the extension for all payable VAT and CIT.
The Ministry of Finance estimated that a total of VNĐ180 trillion worth of taxes and fees would be extended. Still, the sum would still be collected to the State budget within this year.
Taxpayers must submit a proposal to the tax management agencies before July 30 to be given the extension.
According to the finance ministry, more than 700,000 enterprises or 98 per cent of firms would be given the extension. — VNS
In the morning of 2 February 2020, Viglacera Corporation – JSC held a briefing to evaluate results of the production and business plan commenced in February 2020, and to launch business and production plan in March 2020.
The evolution of Covid-19 influenza epidemic has made a negative impact on production and business activities of the whole market recently, which also leads to a direct consequence of affected business results in February of Viglacera Corporation, for instance, Manufacturing factories suffer from insufficient input materials; export activities meet difficulties.
Despite the adverse circumstance, in the February and first 2 months of 2020, Real Estate sector of the Corporation surpassed the February plan and the accumulated profit in the first 2 months increased by 10% compared to the previous period. Industrial infrastructure leasing business is still a highly effective field of Real Estate Department in the first 2 months.
Delivering a leadership speech at the briefing, General Director Nguyen Anh Tuan directed the Corporation to stick to goals of March and the first Quarter plan of 2020, focus on solutions in management activities. Directors and officers shall be present at subsidiary units to engage themselves in problem-sovling and be proactive before all market developments in the near future.
In March, apart from deploying business and production plans in units in accordance with available plan, the Corporation also concentrated on implementing important works such as organizing Employees’ Meeting at units and holding the annual General Meeting of Shareholders 2020 in joint stock companies, preparing for the General Meeting of Shareholders of the Corporation in April 2020.
The whole Corporation focuses on following targets of production and business plan in March, the first Quarter of 2020; Assigning specific and clear tasks for each officers to ensure timely progress and quality of works under functions and duties of their respective departments and divisions; Reporting timely difficulties and obstacles to pinpoint solutions to ensure achievements of goals and progress as expected; Continuing to take preventative anti-epidemic measures in all units and Parent Company Office.
Viglacera launched the tree planting Movement for New Year of 2020 and ground breaking for office building in Yen My Industrial Park – Hung Yen
On January 31, 2020, the 7th day of Canh Ty Year, in the atmosphere of early spring and full of vitality, Viglacera Corporation holds an movement: “Tree planting for new year of 2020 and ground breaking for office building in Yen My Industrial Park – Hung Yen ” in Yen My Industrial Park, Yen My district, Hung Yen province.
During his lifetime, President Ho Chi Minh taught: “For a sake of ten years, a tree must be planted, for a sake of hundred years, a man must be educated”. Inspired by his philosophy, the leaders and all employees of Viglacera Corporation are always aware that planting trees and protecting the environment are important jobs which go closely with the comprehensive development process of the Corporation, contributing to the sustainable development of the industrialization and modernization of the country.
Yen My Industrial Park Project – the project was approved by the Prime Minister on May 30, 2018 with an area of 280 hectares and total investment of VND 2,348 billion, it is divided into 5 phases, granted with the investement certificate by the Management Board of Hung Yen Industrial Parks on July 30, 2018 and scheduled to complete the investment in technical infrastructure in the second quarter of 2023. The project is of great significance for local socio-economic development and expected to contribute to the industrialization and modernization of the country with the spirit of solidarity and strong will. This will be a modern, synchronized and environmentally friendly Industrial Park, in which the system of trees and grass will be a highlight to create a green and environmentally friendly landscape.
Mr. Nguyen Anh Tuan – Director of Viglacera’s Industrial Zone Development Joint Stock Company makes a speech to introduce the project in Yen My – Hung Yen
Currently, Viglacera is actively implementing Phase 1 to level about 90ha of land and constructing technical infrastructure along with the set schedule and quality assurance, on the other hand, it is also accomplishing procedures to build a clean water plant and waste water treatment plant by 2020.
In the jubilant atmosphere to welcome the New Year (Spring Canh Ty), the 90th anniversary of the Communist Party of Vietnam’s foundation. Delegates at all levels from Bac Ninh provincial Congress headed towards the 13th National Congress. On 30 January 2020 (the 6th lunar day of Spring Canh Ty). Viglacera Corporation solemnly held ceremonies for the groundbreaking of the infrastructure construction and business of Yen Phong 2C Industrial Park, Yen Phong District, Bac Ninh Province and the inauguration of social housing in Yen Phong Industrial Park.
Overview of the groundbreaking ceremony of Yen Phong IIC Industrial Park, Yen Phong District, Bac Ninh Province
Attendees of the ceremonies included: Mr Pham Hong Ha – Member of Central Committee of the Party, Minister of Construction; Mr Nguyen Nhan Chien – Member of Central Committee of the Party, Secretary of the Provincial Party Committee, Head of the National Assembly Delegation of Bac Ninh Province; Mr Dao Hong Lan – Alternate Member of the Party Central Committee, Permanent Deputy Secretary of Bac Ninh province; Comrade Nguyen Ngoc Diep – Director of Economic Department – Governmental office; Mr Tran Quoc Trung – Deputy Director of Industrial Park, Economic Zone Department – Ministry of Planning and Investment. Representatives of leaders from the Provincial Party Committee, People’s Council, People’s Committee of Bac Ninh province; Representatives of leaders from departments and units of Bac Ninh province; Representative of leaders from Departments and Division under Ministry of Construction and Ministry of Planning and Investment; Representatives of leaders from the Party, the Government and local people. On the side of Viglacera Corporation – JSC, reprensented by leaders: Mr Nguyen Van Tuan – Chairman of the Board of Management, Mr Nguyen Anh Tuan – General Director of the Corporation, Deputy General Directors, heads of Department and Division under the Corporation and directors of subsidiary units.
Mr. Tran Anh Tuan – Director of Management Board of key projects of Viglacera Corporation introduces about the project of Yen Phong 2C IP
Yen Phong 2C Industrial Park, which has a scale of 221 hectares was approved by the Prime Minister for investment policy under Decision No. 1139/QD-TTg dated 11 September 2018. With convenient geographical location, important traffic hubs such as Highway 18, New Highway 1A, 1B, Hanoi – Thai Nguyen highway make it effortlessly accessible to Noi Bai International Airport and Hai Phong port and Cai Lan port – Quang Ninh. Yen Phong 2C IP will be a location attracting multi-sector investment, mainly processing, manufacturing, high-tech and non-polluting industries. With its experience and capacity, in the shortest time, Viglacera has completed investment procedures and planned to compensate for the site clearance of approximately 100 hectares in the second quarter of 2020. Focus on expediting the investment in construction of technical infrastructure and leasing in accordance with commitments made to the local.
Deputy Secretary of the Provincial Party Committee, Chairman of Bac Ninh People’s Committee – Mrs Nguyen Huong Giang speaks at the ceremony
At the ceremony, Mrs Nguyen Huong Giang – Deputy Secretary of the Provincial Party Committee, Chairman of Bac Ninh People’s Committee gave a brief speech on achievements of Bac Ninh province in the the past time, especially in term of foreign investment attraction, IP developments, which are sources of local economic development. Yen Phong IP is one of 16 industrial parks which earns a lot of investors’ attentions. The provincial leaders also instructed relevant agencies to coordinate and facilitate investment in IPs. In particular, the availability of the housing area of Yen Phong IP will contribute to solving problems relating to the accommodation for workers employed in the Industrial Park, afirming Viglacera’s social responsibility, which play an important role in Socio-economic development process of Bac Ninh province. Deputy Secretary of the Provincial Party Committee highly valued the determination of Viglacera Corporation as a pioneer in the field of social housing and technical infrastructure construction. In addition, Bac Ninh departments and agencies continue to create favorable conditions for Viglacera to complete project projects in accordance with the progress, clear the site quickly enough,comply with regulations strictly , and improve investment attraction, create an outstanding highlight in socio-economic development of Bac Ninh province, etc.
Mr Pham Hong Ha – Member of the Party Central Committee, Minister of Construction speaks at the ceremony
Speaking at the ceremony, Mr. Pham Hong Ha – Member of the Party Central Committee, Minister of Construction evaluated: The commencement of construction and business on Yen Phong 2C Infrastructure Project has a practical meaning in celebrating the 90th anniversary of the Communist Party of Vietnam’s foundation and major national holidays, and this is the clearest evidence of Vietnam’s leading real estate and construction material business enterprise, who always shows social responsibility, make a positive contribution to the development of social security in locals, improve the quality of life for employees, strengthen the connection between employees and companies, promote business and production, attract investment in IPs, marking the strong growth of Viglacera in recent years. Minister Pham Hong Ha demanded Viglacera to focus all its efforts to deploy the project in time and with the best quality.
Ceremony of commencing Yen Phong IIC Industrial Park
When Yen Phong 2C IP comes into operation, it will contribute to promoting domestic and foreign investment attraction, reasonable exploitation and use of land fund, speeding up growth rate, shifting economic structure of the province, creating job opportunities, increasing budget revenues, developing regional economy and improving living standards of local people, and particularizing objectives set under the Resolution of the the 19th Party Congress Bac Ninh province, striving to make Bac Ninh province a civilized and modern city directly under the Central Government in 2022.
The construction of Yen Phong 2C Industrial Park is also the most practical action of Viglacera Corporation to celebrate the 1010 th anniversary of Thang Long – Hanoi, 75th year of National Day and 45th year of Vietnam’s liberation. After this groundbreaking ceremony, Viglacera pledged to focus all resources to execute site clearance, invest in technical infrastructure to ensure the quality, progress, synchronization, comfort, modern, good environmental resolution and put the Industrial Park into operation, get a clean ground ready to welcome large domestic and foreign investors to in the Industrial Park.
The inauguration ceremony of Worker Housing in Yen Phong Industrial Park, Yen Phong District, Bac Ninh Province
In the morning of the same day, Viglacera Corporation inaugurated Social-Housing in Yen Phong Industrial Park, buildings for workers with nearly 5,000 apartments for workers.
Social housing area for workers in Yen Phong IP is located in a complex of social housing and cultural institutions in Yen Phong Industrial Park, this is a complex of multi-function construction including: 01 primary school, 01 kindergarten, cultural houses (accomodate about 1,000 people), clinics and greenery spaces, gymnasiums, etc. are invested on 17,000m2 of land. The social housing for workers will be operated and solve accommodation problems for workers, indirectly support the cost and provide companies in need of many manufacturing laborers with abundant human resources in the industrial park. In addition, shortening travel time as well as indirectly reducing traffic flow, alleviate traffic congestion at peak hours, which is a pressing social issue today.
Viglacera is a company under Ministry of Construction, operating in two main business: Producing construction materials and real estate investment. For many years, Viglacera has always been a pioneer in producing and trading construction materials such as glasses, sanitary porcelain, ceramic tiles; At the same time, it is also known as a leading brand of all economic sectors in the field of IP infrastructure investment and social housing. Currently, Viglacera has successfully deployed 11 domestic and foreign industrial parks. The above mentioned industrial parks have attracted nearly 350 investors with a total investment estimated at 15 billion USD, especially Yen Phong IP attracted about 11 billion USD (with big investors such as Samsung, Orion, Intop, Mobase, etc. solve job problems for nearly 100,000 workers). This is an IP with the highest investment attraction in the country and generates large export income, contributing to the national export turnover.
In the morning, 10 January 2020, Viglacera Corporation – JSC held a conference to evaluate the results of production and business activities and investment in 2019, and to deploy production and business plans and investment in 2020. In 2019, under intensive and flexible management of the Board of Management of the Corporation, consensus of all officers and employees, Viglacera has accomplished main targets as planned, continuing to claim the position of the leading enterprise in the field of construction.
Attendees of the Conference include: representatives of Ministry of Construction and leaders of functional departments of the Ministry of Construction; About Viglacera Corporation – JSC, there are comrades in Board of Corporation Development, Chairman of Board of Management Nguyen Van Tuan, General Director Nguyen Anh Tuan, and other members from the Board of Management, Deputy General Director, Head of Departments, divisions and key officers from subsidiary units; About guests, there are representatives of shareholders and investment funds.
Mr. Nguyen Anh Tuan – Deputy General Director of the Corporation made an evaluation report on production and business results in 2019 and deploying production and business plans in 2020
In 2019, under intensive and flexible management of the Board of Management of the Corporation, consensus and solidarity of all officers and employees; attention, facilitation of the Ministry of Construction and major shareholders on the process of restructuring the Corporation comprehensively. The results of production and business activities of the Corporation were achieved and exceeded the targets assigned by the General Meeting of Shareholders, especially the Parent Company has shown the leading role with VND 718.9 billion, 11% higher than the plan in 2019. Consolidated profit of Viglacera Corporation – JSC reached VND 961.5 billion, which was equivalent to 101% of the plan approved at the General Meeting of Shareholders.
Mr Dau Minh Thanh – Director of Enterprise Management Department – Ministry of Construction speaks at the Conference
At the Conference, Mr. Dau Minh Thanh – Director of Enterprise Management Department – Ministry of Construction highly valued the results achieved in production and business activities in 2019 by Viglacera Corporation. Following the Government’s policy in equitizing state-owned companies, the Ministry of Construction will continue to carry out steps to divest its capital remained at Viglacera-JSC in 2020.
Mr. Nguyen Van Tuan – Chairman of Board of Management of Viglacera Corporation delivers a leadership speech at the Conference
Speaking at the Conference, Mr Nguyen Van Tuan – Chairman of the Board of Management of the Corporation reviewed the results of production and business activities in 2019 and identified objectives and plans for 2020. Regarding the field of construction materials, versatile and environment-friendly products will be developed, streamlined operational procedures will be built with specific KPI evaluation, R&D activities on new product development will be focused, information technology will be applied in production to minimize costs. Besides, the Corporation will continue to invest in building and maintaining Viglacera brand. Regarding sales activities, the domestic market continues to be stablized to promote export markets. As regards real estate section, investment in infrastructures of industrial parks and social-housing construction will be pursed, improved operational activities will be a part of building Viglacera brand into a leading developer of industrial parks in the region, new land fund will be centralized on areas neighboring large-scale ports, the orientation is to aim at developing markets the Central and Southern region.
Mr Nguyen Anh Tuan – General Director of Viglacera Corporation speaks at the Conference
In 2020, the market is inevitably a tougher year than 2019, General Director Nguyen Anh Tuan stated that there would still be opportunities, on the bright side, to be exploited from the integration and export activities. The General Director commemded units that outdid the plan in 2019 and requested all units to figure out solutions for a more sustantial development in 2020. With respect to management on production and business of construction materials, the General Director directed the Glass Group to focus on the market and product consumption plans when Phu My Ultra-Clear Glass Factory came into operation, Viglacera Float Glass Company needed to push lowE-glass production to their peak capacity. Sanitary Wares and Ceramic Tiles Group should develop product lines of large tiles, sanitary-ware factories needed to stabilize production to meet the plan, by 2020, the market would witness a breakthrough in this product group, therefore, effective business options for the output are required. Regarding real estate section, investment in infrastructures of industrial parks and social-housing will be continued, focusing on supplying in utilities for projects. On the occasion of the New Year, General Director Nguyen Anh Tuan wished all officers and employees of Viglacera a happy new year, with the best health, joyful and safe year.
In 2020, the Corporation will undergo a fundamental change in capital ownership, besides favorable factors such as the economy continues to recover, business environment is counting enterprise community’s blessings, and macroeconomic situation is temporarily stable, the inflation is under control … These are the positive factors and conditions that raise the development of Viglacera Corporation – JSC to a new level. Positive results acquired in 2019 will be the foundation for the Corporation to execute successfully the production and Business Plan for 2020 and the 5-year Plans (2021-2025).
2019 is recognized as a successful year of Viglacera Corporation – JSC with many outstanding achievements, helping Viglacera maintain its position as a pioneer in the production of construction materials and real estate investment. Estate in Vietnam. In retrospect, outstanding events of Viglacera was marked by impressive numbers:
1. VIGLACERA – 45-year-journey of development, on this occasion, Viglacera was honored to receive the First-class Labor Medal for the second time
The 25th day of July 2019 was an important milestone when Viglacera Corporation had developed for 45 years. The journey was marked by generations of leaders and the collective of officers and employees who have established the foundation for the growth of Viglacera today. The 45-year-mark was a major change of Viglacera when embarking on a new turning point. Viglacera has become a leading manufacturer of construction materials and real estate in Vietnam, operating in all areas of the country and reaching out to international markets.
2. The milestone of State equity divestment to 38.85%, Viglacera Corporation operates under a new model, starting a new term of 2019-2024 with numerous huge turning points
2019 witnessed the turning point of the Corporation, when the State equity structure has decreased to 38.85%. The operational model and management of the Corporation has been shifted to the model of a public company through regulations of management close to domestic and international companies with dominant production technology and management level. The new Board of Management and Supervisory Board of the Corporation was elected at the Annual General Meeting of Shareholders. Viglacera Corporation – JSC has started a new term 2019 – 2024 with huge great turning points.
3. Viglacera officially listed VGC shares on HOSE
Following the Resolution of the General Meeting of Shareholders, on 29 May 2019, the stock code of Viglacera Corporation – JSC has officially been listed 448,350,000 shares on HoSE. This offers a good opportunity to raise capital, create resources for stable and sustainable development of the Corporation, however, transparency in governance is highly demanding, publicity and compliance are also required for higher standards of listed companies. Viglacera’s strength, according to investors, is its large production capacity, especially on construction materials and real estate, valuable assets under its possession and healthy financial structure. Viglacera Corporation – JSC has been rated by the Enterprise Performance Assessment Program as one of the Top 100 Enterprises with the best financial management capacity index on Vietnam stock exchange.
4. The results of production and business activities in 2019 of the whole Corporation exceeded planned profit 2019 ratified at the General Meeting of Shareholders
The real estate market and construction materials in Vietnam in 2019 continued to face many difficulties and high competitiveness from domestic and foreign products. Taking the initiative before these incidents, Viglacera Corporation always has solutions to optimize internal capacity, coming up with new directions to enhance competitiveness and affirm its pioneering position. The production and business results of 2019 reached targets raised by the General Meeting of Shareholders, especially the parent company has shown the leading role with an estimated profit of VND 718 billion, exceeding 10% of the plan 2019. The consolidated profit of Viglacera Corporation – JSC was VND 955 billion, equivalent to 101% of the plan approved at the General Meeting of Shareholders, while the other index closely follows the targets set in 2019.
5. Honoured with “World Class” award for the first time – First prize in the Asia-Pacific International Quality Award GPEA 2019; Viglacera Corporation – JSC once again affirmed its efforts to reach out to the “large sea” gradually with many investment items on an international scope, built and proved its brand in the domestic and international market
In 2019, Viglacera won several prestigious awards: being honored with the National Gold Quality Award for the second time in 2019, being honoured with Strong Brand for the 11th consecutive time to in 2019, Top 50 most valuable brands in Vietnam 2019 (Brand Finance). With the orientation of building and implementing a sustainable growth strategy, Viglacera has been constantly striving to improve product quality, apply high technology and smart technology to research and develop “green”, Environment-friendly products. Currently, not only does Viglacera brand secure a steady position in the domestic market but also gradually conquers markets in the region and in the world.
6. Viglacera launches the first specialized faculties in Vietnam: Faculty of construction glass – Faculty of ceramic tile – Faculty of construction – Faculty of construction ceramics, extensive training in human resource development.
The key to success is to invest in human elements, develop high-quality human resources – a decisive motivation for the development of the Corporation in the integration period. Therefore, in order to meet needs of human resources in the coming period, Viglacera College has consolidated its organizational model to implement the training and human resource development tasks of the Corporation effectively and provide human resources for the construction-material industry in Vietnam. Viglacera officially opened 04 faculties to provide training in construction materials: Faculty of construction glass – Faculty of ceramics tiles – Faculty of construction – Faculty of construction ceramics.
7. The inauguration ceremony of Viglacera Autoclaved Aerated Concrete Factory – State-level Science and Technology topic and the release of green technology products for modern construction
The production line for Autoclaved aerated concretes (AAC) blocks and Autoclave Lightweight Concrete (ALC) panels with a capacity of 200,000 m³/year is a project under the state-level science and technology topic: “Scientìic and technological Researches for designing, manufacturing equipment line, technology to produce AAC with capacity of 200,000 m3/year”, chaired by Ministry of Construction and Ministry of Science & Technology. The project has been accepted and put into production.
The development of green materials, green buildings is an inevitable trend and of practically meaningful. The application and development of the project at Viglacera AAC factory is an imperative solution, which is the orientation of Viglacera’s developing production technology for Green Building Materials in the hope of joining hands to build a “green real estate” market.
8. Developing new generation of ceramic tiles, expanding Viglacera Pro showroom system and centers nationwide
Viglacera has taken a step ahead to develop the first new product on the market: Viglacera platinum bricks 20mm and color-body bricks. In addition, the nationwide development of Viglacera Pro and Eurotile Center showroom systems has become a channel to introduce products to customers.
The exceptional development of ceramic tile manufacturing industry has gradually replaced double-charge technology with digital-printing and enamel-printing technologies to meet various needs of customers. Viglacera has pioneered to producte color-body bricks.
The product line “Viglacera Platinum 20mm” is the most noticeable among Ceramic tile group. Inspired by natural stones, Viglacera pioneered to introduce a collection of high-class Porcelain tiles PLATINUM 20 mm-thick. This is a breakthrough in the technology of manufacturing premium construction materials: the most durable, the best bearing capacity, well protective against harsh weather, waterproof, anti-slip, etc. and safe for users and environmentally friendly. PLATINUM 20 mm is also perfectly aesthetic. With neutral colors and fine-grained stripes, PLATINUM 20 mm brings uniformity of interior and exterior design and luxurious, long-lasting living space.
9. Santa Cruz Brick Factory under the management of SANVIG Joint Stock Company has started a production line of high quality ceramic and sanitary porcelain tiles in Cuba
After more than one year of operation, the first ceramic bricks at Sanvig factory obtained high quality with various designs thank to the use of digital matte-coating – an advanced technology applied in the production of ceramic tiles in Cuba for the first time, Sacmi five-layer dryers, Sacmi modern roller kilns, etc.. Along with porcelain sanitary products, SANVIG-brand ceramic tile will be packaged immediately and available in the market and will be granted the honor to be in use of buildings that serve the celebration of 500-year-capital La Havana – Cuba.
10. Inauguration of energy-saving glass processing factory
On 06 December 2019, Viglacera held the inauguration ceremony of Viglacera Energy-saving glass processing factory. With this project, Viglacera’s glass processing technology would fully satisfy high-end demands in the field of “green” building construction, energy-saving and environmental friendliness. In fact, energy saving glasses (ESG) are popularly consumed in the world and are attracting concerns to put them in use in Vietnam. ESG require the following processing stages before being applied in the construction: tempering, lamination, insulation, etc.
Currently, there are a small number of factories in Vietnam that can process ESG, especially low-e softly-coated with two or three layers of silver. Understanding this importance, Viglacera has invested in an ESG processing factory in Yen Phong Industrial Park, Bac Ninh Province. The factory consists of a full convection-glass-tempering processing line and high-speed automation of insulating-glass processing line.
Viglacera offers a comprehensive product ranging from Low-E glass coatings production and energy-saving glass processing.
The United States Trade Representative Office announced that import tariff imposed on 7.5 billion USD EU goods will come into force from 18/10/2019.
On Monday, the Dispute Settlement Office under the World Trade Organization (WTO) greenlighted the Washington’s record tariff on a range of European goods. At the beginning of the month, a verdict of Airbus received billions of illegal subsidies from the regional countries had been delivered.
After that, the United States announced the tariff of 10% on Airbus planes made in Europe and 25% on French wines, whisky, cheese and olive.
An aircraft A350 of Airbus in France. By Reuters
In the meeting with the Italian President, Sergio Mattarella on Wednesday, Donald Trump asserted that the United States would not lose in the trade war with the European due to the remaining considerable trade inequality. “We used to be in a difficult position for many years. But now, they are the one meeting difficulties because I’m able to easily remedy the situation”, he said.
The US’s tariff on Airbus can inflict harms for many American airlines like Delta. They currently have ordered a number of billions-dollar bills with the airframe. Phil Marfuggi – the president of Cheese Importers Association of the America estimated that his firms would face an extra cost of 70000 USD for 12 containers due to arrive in the US’s port after October 18.
Robert Tobiassen – the president of the Beverage Importers Association of the America said approximately 12000 beverage importers will be suffered from the new tariff on EU wines. “The tariff will cause a potential damage to many small and medium family companies”, he said.
Gross Domestic Products (GDP) in the first nine months of 2019 is estimated to increase by 6.89% compared with the same period last year and is the highest increase in first nine months over last nine years.
According to the latest report of General Statistic Office, GDP of the third quarter of 2019 was estimated to increase by 7.31% compared with the same period last year, higher than the increase of 6.82% and 6.73% of the first and the second quarter, respectively. In general, GDP of the first nine months of 2019 was estimated to increase by 6.98% in comparison with the same period last year, which is the highest increase in nine months over the last nine years. In the general increase of the entire economy, the agriculture, forestry and fishery sector witnessed an increase of 2.02% (increased by 3.7% compared with the same period in 2018), contributed 4.8% to the gross growth. Industry and construction sector and service sector grew 9.36% and 6.85% and contributed 52.6% and 42.6% to the gross growth respectively.
According to the General Statistic Office, the major motivation in the first nine months of economic growth was the processing industry (increased by 11.37%) and market services (wholesale and retail; financial activities, banking and insurance; transportation and warehouse, and information and communication grew 8.31%, 8.19%, 7.82% and 7.65% respectively)
In terms of economy structure in the nine months, the agriculture, forestry and fishery sector accounted for 13.2% GDP, industry and construction sector comprised 33.98% GDP; and service sector made up 42.74% GDP.
Product tax excluding product subsidy accounted for 10.08% (equivalent structure of the same period 2018 was 13.94%, 33.50%, 42.51%, 10.05%).
As far as the proportion of GDP is concerned in the nine months of 2019, the final consumption increased by 7.20% compared with the same period of 2018, accumulated asset grew 7.68%, export of goods and services rose by 7.41%, import of goods and services increased by 8.78%.