CAND Newspaper supports flood victims in Mu Cang ChaiPSNews - After a 200-km journey through forests, a working mission of the Public Security Newspaper (CAND Newspaper) led by Colonel Nguyen Thuy Quynh, the Public Security Newspaper's Deputy Editor in Chief on August 30th arrived in the mountainous district of Mu Cang Chai, which has recently been hard hit by a historic flood, to support damaged people. Hoa Lan Kindergarten located next to a bridge over the Nam Kim stream is one of the local schools that have been severely damaged by the recent flooding. These days, teachers of the school are hustling to clean it up for the new academic year.
In order to help the local teachers and students to overcome difficulties, the charity mission of the CAND Newspaper has presented 5 million VND to Hoa Lan kindergarten. Four other schools, namely Lao Chai commune kindergarten, primary school, secondary school and Mu Cang Chai high school also received school 5 million VND each. Le Doan Dung (aged 32) is a lucky survivor in the flash floods. He said around 5 am on August 3rd while his family was sleeping, the house's ground suddenly started shaking. The couple immediately took their 2 kids outside but they were unfortunately swept away by the flood. Only Dung was then rescued by local people, but his wife and the two kids have gone away.
On behalf of the CAND Newspaper, Colonel Nguyen Thuy Quynh handed 5 million VND to Dung in the hope of easing his huge losses. Among the victims of the historic floods was Cai Thi Sau, wife of Mu Cang Chai District TV reporter Giang A Hu (aged 42). Her family was at a very difficult state and mainly lived on Hu's salary. Unfortunately, Hu died in the historic flood, and their house was also swept away while Sau is still in a serious condition. Knowing Cai Thi Sau's difficulties, the CAND Newspaper supported 29 million VND to her and other families of dead or missing victims.
"The support is not large in financial value but it comes from the heart of officers and soldiers of the CAND Newspapers. By supporting the flood victims, the staff of the CAND Newspaper would like to share the difficulties and losses with the local people, and hope that it would relieve the pain of the victims’ families," said Colonel Nguyen Thuy Quynh, Public Security Newspaper's Deputy Editor in Chief .
By An Nhien/CAND |
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Vietnamese, Egyptian Presidents seek stronger cooperation Hanoi – Vietnam’s President Tran Dai Quang and Egypt’s President Abdel Fattah el-Sisi exchanged specific measures to enhance the bilateral cooperation in wide-ranging fields during their talks in Hanoi on September 6.  President Tran Dai Quang (R) and Egyptian President Abdel Fattah el-Sisi chaired the international press conference (Photo: VNA) The Vietnamese President informed the media about the results of his talks with President Abdel Fattah el-Sisi, emphasising the importance of the guest’s State visit, which is the first of its kind since the two countries established diplomatic ties in 1963. The visit demonstrates the determination of Egypt to further deepen its traditional friendship and cooperation with Vietnam over the past decades, he said. Politically, the two Presidents affirmed to provide mutual support for the prosperity of their people as well as regional and global peace. They agreed to increase all-level delegation exchanges, especially among high-ranking officials, while strengthening coordination at regional and international forums of the United Nations, Non-Aligned Movement, and Francophone International Organization. The two leaders evaluated that the economic cooperation opportunities between Vietnam and Egypt are huge and supplementary. They showed strong determination to increase two-way trade to 1 billion USD in the future and pledged to create all favourable conditions for businesses to run investment in the fields of their strengths such as telecommunication, information technology, seaport, shipbuilding, consumer production, agriculture, and farm produce processing. Vietnam is committed to facilitating the entry of Egyptian goods in Vietnam and welcomes the Egyptian President’s support for the import of Vietnamese products, President Quang said. He said that the signing of the minutes of the Vietnam-Egypt Intergovernmental Committee’s fifth meeting and other cooperation deals in investment, culture, tourism, transportation, fisheries and land use during the Egyptian President’s visit will help complete a legal framework for bilateral partnership in the future. He expressed belief that with the firm foundation of the 54-year ties, as well as high collaboration potential and efforts of the two sides, the traditional friendship and all-round affiliation between the two countries will expand in an intensive and effective manner. For his part, Egyptian President Abdel Fattal el-Sisi noted that Egypt and Vietnam have enjoyed close relations in politics, economics and culture. He affirmed that Egypt wishes to beef up win-win economic partnership between the two countries. Highlighting measures to balance trade between the two countries, the Egyptian leader briefed on Egypt’s major projects that aim to create a good environment for investment and technology attraction, especially the Suez Canal area development project. Egypt hopes for new prospects in bilateral cooperation, meeting the aspiration of both Vietnamese and Egyptian people. On the occasion, President Abdel Fattah el-Sisi invited President Tran Dai Quang to visit Egypt at a convenient time to continue efforts to strengthen bilateral partnership.-VNA |
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Independent experts announce top 49 universities in Vietnam An independent group of six researchers who are working in Vietnam and other countries have announced a list of 49 top local universities on September 6. The group includes Dr Luu Quang Hung from Australia, Dr Ngo Duc The from the UK, and Dr Nguyen Ngoc Anh, Dr Giap Van Duong, M.A Tran Thanh Thuy and M.A Nguyen Thi Thu Huyen in Vietnam. Prof. Tran Nam Binh from New South Wales University, Australia and Prof. Le Van Cuong from Pantheon-Sorbonne University, France, are the consultants for the project. The project is non-profit and carried out in three years and included over 100 universities in Vietnam. It is hoped to help universities improve and be more transparent amid the changing world. The Ministry of Education and Training has also tried to rank the universities but there's no comprehensive chart yet. There are three criteria including scientific research, education and training, and infrastructure and management. Hanoi National University tops the list, followed by Ton Duc Thang University and Hanoi University of Agriculture.  Hanoi National University Many young and lesser known universities are ranked highly on the list thanks to their international publications. Ton Duc Thang University encourages and helps both Vietnamese and international authors to collaborate and publish their articles internationally. Even though well-known economic universities are given regards for their high entrance scores and reputation among employers, they lack international publications and their training is considered to be larger than the number of qualified lecturers. Most of them are averagely ranked. Published local articles were not included if the magazines or journals were not recognised by the Institute for Scientific Information as Vietnam lacks online database and to encourage universities to meet international standards. Political, military or public security universities, newly-established or foreign-affiliated ones were also not included because of the lack of data. According to the group, the students and parents can use the list to understand the correlation between the universities before doing more in-depth research about their interested departments. The universities can look back at their weak and strong points compared to other universities and improve. The group emphasised that the list is for reference use and only reflects some aspects of the facilities. It should not be used to measure the overall quality of a university. By Hong Hanh, dtinews.vn |
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BUSINESS IN BRIEF 6/9 Superior quality rice yields hope for Vietnamese farmers  Experts at a recent conference in Ho Chi Minh City urged Vietnam agriculture to move away from high-yield to superior quality rice varieties to best compete with other rice exporters in the Asian region such as India and Thailand. The European Union will offer the Vietnamese rice segment import duty-free tariff rate on increased quotas when the EU-Vietnam Free Trade Agreement comes into force, which should happen sometime in 2018, said Tran Ngoc Thach, director of the Mekong Delta Rice Research. Therefore, Mr Thach advises the segment to change production practices post haste to fully capitalize on the advantages posed by these beneficial quotas and lower border taxes. According to the Agreement as approved by the Delegation of the EU to Vietnam, the European states will permit duty free import of 30,000, 30,000 and 20,000 metric tons milled rice, fragrant rice, and husked rice, respectively. The agreement also provides for a 50% reduction in tariffs on broken rice with the remaining tariff phased out over a five year period, noted Mr Thach. He emphasized the point that many experts believe that the preferential border tax could potentially save the Vietnamese rice segment US$20 million annually, which is a tremendous savings. Mr Thach continued to say that though Vietnam has been hailed as the globe’s third largest rice exporter, its rice consignments to the EU over the past few years can be described as lacklustre at best. He noted that over recent years, Vietnamese rice exports dipped because far too many actors in the segment focused too much on planting high-yield rice. Meanwhile, other countries are concentrating on higher-quality rice production. According to a report by the Vietnam Food Association, Mr Thach said, that rice exports to the EU market dropped from 24,000 to 20,000 metric tons in 2014, a further 18,000 tons in 2015 and again in 2016. The EU is a demanding market with strict requirements for factors ranging from product quality to environmental standards as well as the brand prestige and production process, Mr Thach said. In addition, though not being regular rice eaters, EU customers prefer rice of higher quality than Vietnamese rice. That’s why Vietnam has become less competitive against other rice exporting nations. It is no secret that European consumers are fonder of fragrant rice from Thailand, while the Vietnamese rice segment is only now just beginning to focus its efforts to elevate its image, Mr Thach concluded. Huynh Van Nghiep, deputy director of the Mekong Delta Rice Research Institution, in turn said it is hard for the Vietnamese industry to compete on an equal footing with Thailand, but the country can learn from the experience of Cambodia. The Cambodian rice segment is on the mend, Mr Nghiep noted, due to its winning the world’s ‘best rice’ title for three consecutive years. He suggested if the Vietnamese segment would switch away from growing high-yield and short-term rice varieties that the improved production practices would help create better tasting varieties of rice. Therefore, to better compete with other countries in the Asian region, farmers and other actors in the industry should expeditiously shift from high-yield to superior-quality rice varieties, Mr Nghiep said. VN targets US$3.5 billion of rice exports by 2020 The Ministry of Industry and Trade has unveiled a strategy for developing rice exports in 2016-20 that targets reversing a declining trend over the last two years and increasing overseas sales to US$3 billion in 2017. It also targets a gradual shift towards export of high-quality, high-value, organic, nutritional, specialty and Vietnam brands of rice and rice-based products. The export of low-quality white rice is expected to fall to 15% of total shipments by 2020 and 10% by 2025. In the latter year medium-quality white rice will account for 20% and high-quality white rice, fragrant rice and glutinous rice for 60%. The ministry will make efforts to diversify export markets, with a focus on markets with demand for high-quality rice. The ministry has sent the draft strategy to relevant ministries and industries to solicit their opinions. Middle East targeted for agro-exports The Middle East is not only a large market for Vietnamese agricultural products but a bridge to the European market, according to the Ministry of Agriculture and Rural Development. Minister of Agriculture and Rural Development Nguyen Xuan Cuong discussed the issue outside of the Middle East business co-operation conference held recently in Hanoi. According to Cuong, the Middle East includes 16 core countries with a population of nearly 400 million. Vietnam can meet many demands for agricultural products from these markets. For example, the annual demand for rice from the Middle East is about five to seven million tonnes and there is huge demand for vegetables, fruits and aquaculture products. Trade turnover between the Middle East and Vietnam was low because of payment difficulties. Both sides have to use banks in other countries such as China and Singapore for transactions, which increases the financial risks, Cuong said. "Agricultural product export turnover to the Middle East could reach over US$10 billion," he said. The ministry has carried out extensive research into the Middle East, especially Iran. They will speed up the process, expecting to earn about US$2 billion from Iran. Cuong urged businesses to improve the management, technology and quality of the products. He also encouraged farmers to collaborate to set up co-operatives for different products. Vietnam’s export turnover of agriculture, aquaculture and forestry products was valued at US$32 billion last year. Statistics from the Ministry of Industry and Trade show that trade turnover with the Middle East had been on the rise in recent years. Last year, total turnover reached US$10.9 billion, double that of 2011. Import turnover was US$2.8 billion and export turnover US$8.1 billion. Domestic maker exports mooncakes to US, China Mooncakes under Mondelez Kinh Do’s brands have been exported to the US and China so far this year for the upcoming Mid-Autumn Festival. A representative from Mondelez Kinh Do said Kinh Do mooncakes have been exported to the US for several years and this year they hit retail shelves in the US in late August to serve Asian customers in the Mid-Autumn Festival. This is the second year Mondelez Kinh Do exports mooncakes to China. This year, the mooncakes called Oreo have hit retail shelves in China. For domestic market, the company supplies 84 kinds of mooncakes with different flavours. Average prices for a traditional cake is VND40,000-470,000 and VND600,000-VND3.2 million for a cake of best quality. Mondelez Kinh Do Vietnam is a new brand company between the two confectionery makers, Mondelēz International and Kido Group. Binh Duong urges investment in hi-tech fields The southern province of Binh Duong will focus on the attraction of investment in hi-tech industries that are less labour intensive and more environmentally friendly. The statement was made by Tran Thanh Liem, chairman of Binh Duong People’s Committee, at his meeting with James Ha, chairman of South Korea-based Sae-A Group, held in Binh Duong on Tuesday. Besides the existing industrial parks, Binh Duong Province plans to establish new industrial zones to welcome investment from foreign investors, Liem said, adding that by 2020, 14,000ha will be utilised for industrial parks in the province. Binh Duong will also develop a number of specific beneficial policies related to administrative procedures, land and facility construction to attract foreign investment, with the expectation that enterprises will continue to invest and expand their production, contributing to economic development of the locality, Liem said. The province expects to receive feedback and sincere comments from enterprises on issues related to business operation to make reasonable adjustments and avoid difficulties and obstructions in the investment progress, he said. Speaking at the meeting, James Ha said that at present, Sae-A group has more than 70,000 employees, of which nearly 19,000 are working in Viet Nam. The group currently operates in the field of textile and garments, however, Ha said, the group plans to expand its investment into electronics and hi-tech in the future. According to the provincial People’s Committee, South Korea is Binh Duong’s third-largest investor after Taiwan, China and Singapore, with 619 projects valued at more than US$2.69 billion. In the first months of 2017, many South Korean investors continued to pour investment capital into Binh Duong with 16 new projects and 17 projects registered to increase capital, amounting to total investment of $306 million. Top Asia-Pacific reps to mull small business help The 24th APEC Small and Medium Enterprises Ministerial Meeting (SMEMM) and related meetings, scheduled to take place in HCM City from September 10-15, are expected to enhance the competitiveness and creative capacity of micro-, small- and medium-sized enterprises (MSMEs) in the digital era. The event will create valuable opportunities for businesses to exchange effective cooperation ideas in the context of globalisation and integration, said Ho Sy Hung, Director of the Enterprise Development Agency under the Ministry of Planning and Investment at a press conference in Ha Noi on Tuesday. Ministers will discuss measures to facilitate business access to markets and deeper engagement in global value chains; enable MSMEs to get access to new technologies, improve management capacity, and increase their competitive edge; and promote entrepreneurship and business ethics. They are also expected to adopt a number of documents, including a declaration on promoting start-up businesses, and a strategy developing green, sustainable and innovative SMEs. A series of related meetings will take place during the event such as the 45th APEC Small and Medium-sized Enterprise Working Group Meeting, APEC Online to Offline (O2O) Forum, APEC Startup Forum, and Forum on APEC Digital Economy. Established in 1989, APEC comprises 21 economies, including Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Viet Nam. Viet Nam joined APEC in 1998. SMEs employ more than 50 per cent of the workforce and contribute over 40 per cent of the GDP in Viet Nam. HCM City sees retail sales boom during National Day holiday Supermarkets and shopping malls as well as traditional markets in HCM City saw a strong uptick in sales during the National Day holidays, which this year lasted from September 2 to 4. Co.opmart outlets on Nguyen Dinh Chieu, Ly Thuong Kiet, Dinh Tien Hoang, and Binh Trieu and Co.opXtra were crowded from September 1. Do Quoc Huy, marketing director of Saigon Co.op, which owns the chain, said sales had been up 40 per cent from normal while footfall had doubled. Fresh and processed foodstuffs and beverages were the top sellers, while sales of household utensils and clothes increased slightly. Huynh Kim Thu Thuy, director of Co.opmart Dinh Tien Hoang, said the supermarket had increased stocks by 15-20 per cent and kept adding them to ensure there was no short supply. It had also increased the number of checkout counters, she said. Programmes to promote consumption of Vietnamese goods launched by many retailers on the occasion greatly contributed to higher sales. Saigon Co.op has for instance launched the “Tu hao hang Viet” (Proud of Vietnamese Goods) programme, its largest promotion of the year, offering discounts of up to 50 per cent on thousands of products, hundreds of valuable gifts and many times higher points that normal. Big C, which offered discounts of up to 50 per cent on more than 1,000 essential products during the holidays, said sales had risen by more than 30 per cent. Fresh and processed foods, beers and other beverages were among the bestsellers, the supermarket said. Ho Quoc Nguyen, public relations manager at Big C, said stocks had been increased by 30 per cent for the holidays. The number of customers was up strongly thanks to the promotion programme and also daily entertainment activities held at its outlets, he said. Sales also doubled at Lotte Mart supermarket, with processed products, seafood, beers and soft drinks being the biggest sellers. A large number of people visited the Phu Tho Indoor Stadium for the 2017 Sales Promotion Fair, where Vietnamese goods were promoted. According to the city Department of Industry and Trade, sales at the fair had been higher than expected thanks to many companies offering discounts of up to 49 per cent on products such as food, fashion, electronics and others, with fashion products being the most popular. At traditional markets like Tan Dinh, Ba Chieu and Thi Nghe, business was slightly better than on normal days, with fresh and processed foods and beverages being the biggest sellers. With supply being abundant, prices were steady during the holidays. On September 4-5, sales of fruits, flowers and vegetarian foods at traditional markets increased sharply as customers shopped for the occasion of the full moon. Vietnam, Laos sign cooperation deal in agriculture, forestry for 2017-18 The agriculture ministers of Vietnam and Laos signed a cooperation agreement on agriculture, forestry, fisheries, and rural development in 2017-2018 at a meeting in Hanoi on September 5. Vietnam’s Minister of Agriculture and Rural Development Nguyen Xuan Cuong and Laos’ Minister for Agriculture and Forestry Liane Thykeo co-chaired the annual event on bilateral agro-forestry-fisheries ties. Under the agreement, the two countries will focus on cooperating in science-technology and human resources training. The two sides will also increase trade promotion of Vietnamese and Lao agro-forestry products. They agreed to promote investment, production and processing cooperation programmes in agriculture and forestry while removing difficulties for Vietnamese firms to expand investment in manufacturing activities in Laos. Minister Cuong particularly underlined a joint programme on cattle breeding development, which he said is important to both Vietnam and Laos, and expected to be a breakthrough in agricultural development. At the meeting, the two ministers also reviewed the implementation of the agreement signed between Vietnamese and Lao governments in agriculture and rural development in 2016-2017. In the period, the two countries actively coordinated to carry out projects using non-refundable aid of the Vietnamese government for the Lao counterpart. Specifically, an agricultural technical service centre in the north-eastern province of Xiangkhouang, built with total investment of 35.6 billion VND (1.5 million USD), was put into operation in December 2016. The construction of a similar centre in the Laos’ eastern province of Houaphanh was launched in February 2017. The two sides also held regular visits by high-level delegations, experts and technicians to share experience in agriculture, forestry, water resources, agricultural encouragement, and food safety. The Vietnamese ministry pledged to support Laos to develop rural areas and diversify goods production, as the Lao side said the country is concentrating on developing production of agro-forestry-fishery products and building new rural areas. Petrol price continues rising slightly The Ministries of Industry and Trade, and Finance decided to raise the retail price of RON 92 petrol by 306 VND to maximum 17,792 VND (78 US cents) per litre from 3pm on September 5. The price of E5 bio-fuel also rose by 285 VND to a maximum of 17,539 VND per litre, while the prices of diesel and kerosene up 155 VND and 149 VND to 13,950 VND a litre and 12,547 VND a litre, respectively. Meanwhile, the maximum price of mazut was 11,148 VND per kilogram, an increase of 43 VND. The average global price of RON 92 during the last 15 days prior to September 5 was 65.827 USD per barrel, while the figures for diesel 0.05S and kerosene were 63.823 USD and 63.547 USD per barrel, respectively. An Giang earns over 500 million USD from export in 8 months The Mekong Delta province of An Giang earned 506.3 million USD in the past eight months, up 6.5 percent year on year, fulfilling 61.7 percent of the yearly plan, reported the provincial Department of Industry and Trade. The high result was mostly due to growth in exports of rice and frozen tra fish. In the reviewed time, the province shipped abroad 243,400 tonnes of rice for 112.6 million USD, equal to 92.7 percent of the revenue in the same period last year. The province raked in 156.5 million USD for selling 81,300 tonnes of aquatic products. At the same time, An Giang also earned 64 million USD in exports of garment and textile, up 2.9 percent year on year. Vo Nguyen Nam, Director of the An Giang Department of Industry and Trade said that the province will continue providing local firms with market information, especially developments and policies of the Chinese market, while removing obstacles facing enterprises in case of negative developments in the markets. The province will also provide early forecast on the demand and prices of major export products, thus helping local businesses design production plans, he added. Vinacomin mines 24.58 million tonnes of coal in 8 months The Vietnam National Coal and Mineral Industries Group (Vinacomin) has produced 24.58 million tonnes of coal in the first eight months of the year, accounting for 68.3 percent of the annual plan. Of the total output, 21.38 million tonnes were consumed domestically while 866,000 tonnes were exported, raking in over 35.3 trillion VND (1.55 billion USD) in revenue. In September, the group plans to mine 2 million tonnes of coal and sell 2.5 million tonnes, including 2.34 million tonnes in the domestic market and 155,000 tonnes for export. Building a production and business plan for 2018 in accordance with the market demand and rational inventory balance will be the main target of the group. Vinacomin will pay due attention to its restructuring, with a focus placed on renovating techniques and technologies, organisation and management system, finance and workforce. In addition, Vinacomin will also tighten management of natural resources and product quality, and join hands with local authorities to prevent coal losses. Ho Chi Minh City’s economy on steady growth track Ho Chi Minh City’s economy continued its steady growth in the first eight months this year, said the municipal authorities during a working session reviewing the city’s performance in the period on September 5. Speaking at the event, Director of the municipal Department of Planning and Investment Su Ngoc Anh said the total retail value rose 10.3 percent annually to surpass 599.1 trillion VND (26 billion USD) during the period. The total export is estimated at 22.8 billion USD, up 13.6 percent while the industrial production index went up 7.31 percent. Four key industries, namely mechanical engineering, electronics, chemicals – rubber – plastics, and food processing, continued expanding their markets. Investment in advanced equipment to improve quality and competitiveness surged 11.8 percent year-on-year. Since early this year, the city has granted licences to 26,614 new firms with a total registered capital of over 358.89 trillion VND, marking 13.1 percent and 82.9 increases in the number of businesses and registered capital, respectively. Up to 1,171 business households have switched their status to businesses. Meanwhile, the total foreign direct investment attraction hit 3.23 billion USD, representing a 1.57-fold increase annually. Anh attributed the growth to the city’s support in delivering innovation, improving the business climate and refining start-up ecology. At the same time, the city has also facilitated technological transfer in agriculture to produce safe and quality farm produce. The total agro-forestry-fisheries value was estimated at over 7.63 trillion VND, up 6.5 percent on the yearly basis. Director of the municipal Department of Finance Phan Thi Thang said the city collected in excess of 224 trillion VND to the State budget, or 64.39 percent of the estimate and up 11.47 percent from the same period last year. The total spending stood at 33.58 trillion VND, or 47.54 percent of the estimate and up 20.64 percent. Chairman of the municipal People’s Committee Nguyen Thanh Phong took the occasion to request agencies concerned to continue perfecting start-up ecology, encouraging innovation and improving the business climate. Binh Duong calls for investment in less labour-intensive industries The southern province of Binh Duong will focus on attracting investment in hi-tech, less labour-intensive and environmentally friendly industries in the time ahead. Chairman of the provincial People’s Committee Tran Thanh Liem made the remark while meeting with CEO of the Republic of Korea (RoK)’s Sae-A group James Ha on September 5. Liem noted his province will enlarge existing industrial parks and build new ones to welcome more foreign investors, thus expanding the total industrial park area to 14,000ha by 2020. It is going to devise a number of concrete policies to attract foreign investment, hoping that foreign firms will step up operations in Binh Duong and help fuel local economic growth. The provincial People’s Committee, departments and sectors are ready to provide favourable conditions in terms of administrative procedures, land and factory construction so as to give investors the best possible business environment, he said. The official added Binh Duong also wants to receive sincere feedback on relevant issues from entrepreneurs in order to make appropriate adjustments. For his part, James Ha said more than 7,000 of his group’s 19,000 employees in Vietnam are working in Binh Duong. Sae-A is currently concentrating on apparel production, but it intends to expand investment to electronics and high technology, which suits the local industrial development orientation. According to the Binh Duong administration, the RoK is the third biggest foreign investor in the province, following China’s Taiwan and Singapore, with 619 projects worth over 2.69 billion USD in total. RoK investors have invested 306 million USD in 16 new projects and 17 existing ones so far this year. Can Tho eyes partnership with Japan tourism agency The Mekong Delta city of Can Tho wants to establish a strategic partnership with the Japan National Tourism Organization (JNTO)’s Vietnam office to attract more Japanese tourists to the city, said an official of the city. Vice Chairman of the Can Tho People’s Committee Truong Hoai Nam made the proposal during a working session with Takahashi Ayumi, head of the JNTO’s Vietnam office, on September 9. Nam said while Can Tho is a socio-economic hub of the Mekong Delta region, the number of tourists visiting the city is low compared to other localities in the region. Therefore, the city wants to cooperate with other partners to give a boost to the tourism sector. The official also noted that the number of Japanese tourists visiting the Mekong Delta, including Can Tho, has to date increased nearly 10 percent from last year. He attributed the outcome to effective collaboration to promote tourism and tourist exchanges between the sides. For his part, Takahashi Ayumi said Vietnam-Japan political relationship is at its best ever since it was established in 1973, thus opening up cooperation opportunities across multiple fields, including tourism. He unveiled that JNTO Vietnam has planned a number of promotion events to introduce the Japanese tourism market to Vietnamese while helping Vietnam promote tourism in Japan. The agency will also work with the Japanese Embassy in Vienam to organize more international cultural events, and lobby for easing Japan’s visa policy for Vietnamese tourists, among others. Takahashi asked the Can Tho authorities to consider opening more air routes from Can Tho to Japanese major cities to facilitate travel between the sides. According to JNTO’s statistics, Vietnamese visitors to Japan saw strong growth in the past 5 years. In the first 6 months of 2017, over 234,000 Vietnamese travelled to Japan, up 28 percent compared to the same period last year. Vietnamese were also among top spenders in Japan with an average spending of 237,000 JPY ( 2,166 USD) per person per trip. Vietjet carries 260,000 passengers during holiday The low-cost airline Vietjet Air operated about 1,500 flights, serving nearly 260,000 passengers during the National Day holiday (September 2-4). The number of Vietjet Air’s passengers this holiday increased 27 percent year-on-year, with punctuality rate reaching 88.3 percent. The airline also launched various programmes during its flights, such as presenting gifts and domestic flight tickets to customers. On the occasion, the carrier announced a new route from Ho Chi Minh City to Jakarta (Indonesia) and opened the Hanoi – Yangon (Myanmar) route. Currently, Vietjet Air boasts a fleet of 45 aircraft, including A320s and A321s, and runs over 350 flights per day. It currently operates 73 routes in Vietnam and across the region to Singapore, the Republic of Korea, China, Thailand, Indonesia, Myanmar, Malaysia and Cambodia. Public disagree with toll cut of controversial BOT tollbooth The Ministry of Transport, the People’s Committee of the Mekong Delta province of Tien Giang and investors yesterday met and agreed to cut down tolls for all vehicles through controversial Cai Lay BOT (Build-Operate-Transfer) tollbooth. However, the toll cut has yet to reach public expectation while the BOT tollbooth has continued halting operation to wait for decision from the Ministry of Transport. Specifically, the toll will decrease from VND35,000 to VND25,000 for group 1 including less than 12 seater vehicles, less than two ton trucks and buses; from VND50,000 to VND35,000 for group 2 comprising 12-30 seater vehicles, 2-4 ton trucks; from VND60,000 to VND40,000 for group 3 including 31 seater and wider vehicles, 4-10 ton trucks. The toll will be slashed from VND100,000 to VND70,000 for Group 4 of 10-18 ton trucks and 20 feet container trucks; from VND180,000 to 140,000 for group 5 of 18 ton and heavier trucks and 40 feet container lorries. The new toll levels will be applied from August 21, 2017. Owners of vehicles in Groups 1 and 2 who are permanent residents in Phu Nhuan, My Thanh Nam, Binh Phu and Phu An communes in Cai Lay district can travel through the tollgate free of charge. They must not do transport business to enjoy the fee exemption. The remaining vehicles in the four communes and buses operating in Tien Giang province will see 50 percent reduction. The toll exemption and cut will be effective before September 10 this year. After knowing the information, drivers and transport firms in the Mekong Delta have disagreed with the toll reduction, saying that the tollbooth should be placed in 12 kilometer Cai Lay bypass road not National Highway 1A where vehicles have already paid road maintenance fee. A transport expert said that Cai Lay bypass road is separated from another project to fortify road face along 26.5 kilometers of National Highway 1 although they were built by the same investor. Specifically, the Ministry of Transport permitted the investor to set up the investment project of a road bypassing Cai Lay town on July 28, 2009 at Decision 2174. The ministry made Decision 3054 to approve the investment project, the bypass’ outline and survey estimates on October 20, 2009. Meanwhile, the Directorate for Roads of Vietnam Road sent Statement No.95 on developing a bypass of National Highway 1A and fortifying the highway face in Cai Lay town under BOT form on December 4, 2013. Afterwards, the ministry made Decision 4173 to approve the bypass and road face reinforcement project. So the road face fortifying was just a pretext for the investor to place the BOT tollbooth in the national highway, said the expert. Replying to the press, the Ministry of Transport still affirmed that the tollbooth position is in accordance with the law. Citing Circular 159 by the Ministry of Finance that toll stations must be built in the scope of projects, Mr. Nguyen Danh Huy, head of Public Private Partnership Projects Management Board under the Ministry of Transport said that Cai Lay tollbooth locates within the scope of the project. Expenses for Long Thanh Airport's land clearance compensation rise The People’s Committee of Dong Nai province yesterday had a working session with authorities of Long Thanh district to discuss and make the final decision about land clearance compensation and resettlement assistance of Long Thanh International Airport project. Accordingly, total capital for the clearance compensation, building resettlement areas is estimated to be up to VND 23 trillion, an increase of VND 33 billion compared with the general estimation issued 6 months ago. Of these, VND 4 trillion will use for building two resettlement areas for 4,300 residents of the Long Thanh district. According to Mr. Nguyen Ngoc Hung, Vice Director of Natural Resources and Environment Department of Dong Nai province, the fund for clearance, properties and plants compensation has been sharply increased up to VND 500 billion. Today, the working delegation of Dong Nai province has a working session with the Ministries of Planning and Investment, Finance, Natural Resources and Environment to agree the feasibility study report before submitting for the Prime Minister’s approval. More overseas Vietnamese companies invest in SHTP Three overseas Vietnamese enterprises in the US have been granted with investment certificates in Saigon Hi-Tech Park (SHTP) in HCMC, which is an initial result from an investment promotion trip by SHTP management board to the country this year. Three projects include US$215 million KNT Asia, $27 million Onsky Asia and $1 million Reqes software development center. The certificates have recently granted at a ceremony in the US with the attendance by the representative of the Consulate General of Vietnam in San Francisco. Head of SHTP management board Le Hoai Quoc welcomed the three new investors, once again introduced that Saigon Silicon City (SSC) in SHTP is the place which HCMC reserves for overseas Vietnamese businesses and committed to strongly supporting companies during operation. During the trip, the board also witnessed a cooperation signing ceremony between Allied Telesis and SSC to develop a $50 million smart operation center in SSC. This is estimated to be a landmark in the development of SSC and a premise for SHTP to create breakthrough in the near future. After the two events, many overseas Vietnamese companies have contacted the management board to discuss investment in SHTP and SSC. HoREA petitions to support low-income buyers The Ho Chi Minh City Real Estate Association (HoREA) petitioned the State Bank of Vietnam to offer housing credit stimulus package to directly support buyers of social and commercial houses with the price of VND1 billion ($43,986). In its document to the bank to give the feedback on amendment for the circular 36/2014, HoREA urged the bank to offer the credit package soon to help low-cost apartments. As per the HoREA’s petition, when housing market was frozen in 2008-2009 and 2011-2013, the inventories and bad debt in the sector were serious. The VND30 trillion (US$1.32 billion) housing credit package, which the Government has provided for low income people has helped reducing inventories and clearing bad debt. Thanks to the package, 56,000 beneficiaries have bought their own houses. Accordingly, HoREA petitioned the bank to continue offering a such credit package. In its opinion on amendment, HoREA said that the continuance of mid-term and long-term loans until 2018 will be a boost in supporting the economy’s growth because real estate markets is one of sector which boosts huge consumption. Mining industry indicator continues to dip Even though mining industry plays a pivotal role in the country’s economy, the industry dipped in two years because of difficult exploitation and dependence on world markets. The mining production indicator in August has seen a year-on-year rise of 8.4 percent. Amongst them, the mining sector dropped by 5 percent; the manufacturing sector increased by 12.4 percent; electricity production and distribution soared by 9.6 percent; and water supply and waste treatment sector leaped by 7.3 percent. In eight months of the year, the industry production indicator represented a 6.7 percent year-on-year rise, 7.2 percent lower than the same period last year. For instance, mining sector dipped by 4.8 percent; meanwhile process sector increased by 10.4 percent; electricity production and distribution soared by 12.3 percent and water supply and waste treatment sector is up by 6.8 percent. Accordingly, the manufacturing sector rose by 10.8 percent contributing 7.5 percentage point to the general increase; electricity production and distribution was up by 8.6 percent attributing 0.6 percentage point to the whole. Amongst second level industries, metal production, computer and electronic product manufacturing, rubber and plastic product production, paper and paper product rose. Meantime, medical, pharmaceutical and herbal sector fell by 2.1 percent and crude oil and natural gas exploitation dipped by 10.1 percent. Amongst localities, the northern province of Hai Phong has drastic growth of20.6 percent in industry indicator in eight months compared to same period followed by the northern province of Thai Nguyen with 18.1 percent; Bac Ninh with 14.1 percent and Ho Chi Minh City with 7.3 percent. LHG issues 1.3mln shares to invest in Long Hau 3 industrial park Long Hau Joint Stock Company (LHG) will issue 1.3 million shares at a cost of VND 13,000 per share for its current shareholders. Total revenue from selling shares will be used for land clearance compensation work of Long Hai 3 Industrial Park project. The park covers an area of 124 hectares with total investment capital up to VND 1,1trillion. It is expected to be completed and put into operation in the 4th quarter of 2019. For the first half this year, LHG said it profited VND 26.7billion, decrease of 31 percent compared with the same period last year. SVC sets revenue target at VND 14,5trln The Sai Gon General Service Corp (Savico- SVC) shareholders have just approved the plan to distribute 12 percent dividend payment rate in 2016. As plan, SVC will close the shareholder list for this payout on September 15 and is planning a cash dividend payout at a ratio of 12 percent. The 12 percent dividend is estimated to pay on September 27. In 2017, SVC said the revenue target will reach at VND 14,5trillion, pre-tax & after-tax profit at VND 250billion and VND 200 billion respectively. HOREA reports no new case of social housing loan After the housing credit package worth VND30 trillion (US$1.32 billion) ended last year, there has been no new case getting social housing loan according to Housing Law 2014 so far. That is quoted from a report which chairman of HCMC Real Estate Association (HOREA) Le Hoang Chau has recently sent to authorized agencies. According to a decision signed by the Prime Minister, social housing buyers will continue enjoying the preferential interest rate of 4.8 percent a year after the package ended last year. However, the extension has not been materialized for new cases partly because the Government has yet arranged budget funds for four banks Vietcombank, Vietinbank, Agribank and BIDV to carry out the policy. So far, only VND1.5 trillion has been allocated for the Vietnam Bank for Social Policies to loan social housing buyers. HOREA has proposed the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction to soon submit to the Government and the National Assembly’s Standing Committee a budget capital arrangement plan to implement the social housing policy. CII to spend VND3.4 trillion on infrastructure projects HCMC Infrastructure Investment JSC (CII) plans to spend VND3.4 trillion on infrastructure and real estate projects in the next three years. Between 2018 and 2020, CII will pour VND3.4 trillion into some of its key projects, including VND1.64 trillion for infrastructure projects and VND1.76 trillion for the property segment, the company said in a statement sent to investors on August 29. The company will invest VND300 billion in the second stage of the Binh Trieu road and bridge project and VND520 billion to expand Hanoi Highway. In addition, CII will purchase shares at potential projects and companies where it has yet to become a major investor. According to CII, mergers and acquisitions (M&A) projects will help it secure long-term growth and raise holdings at large projects such as the Trung Luong-My Thuan Expressway. CII will focus on the Mekong Delta and HCMC, where it has developed a solid portfolio of build-operate-transfer (BOT) projects. For the property sector, CII will invest VND950 billion in Thu Thiem Riverpark high-class condo project in cooperation with Hong Kong Land. Besides, it will develop a high-rise building project with a total cost of VND310 billion. At the Thu Thiem area in HCMC’s District 2, CII will develop a lake project and get more land there in exchange. Meanwhile, CII will focus on its existing water supply projects, especially the key ones such as Tan Hiep 2 and Cu Chi. In the next three years, however, the firm will not invest in new water supply projects or conduct M&A deals with water supply companies. To mobilize capital for the scheme, CII will issue additional shares for existing shareholders at a 2-for-1 ratio within this year. It expects to sell the shares at VND15,000 each, raising VND1.85 trillion. Besides, CII will use its own equity and take out loans worth VND1.55 trillion. It targets to obtain nearly VND1.5 trillion in revenue next year and VND2 trillion in 2020 while its profit growth is estimated at 18% a year during the period. Regarding risks at BOT projects, CII general director Le Quoc Binh said the firm has stopped seeking investment opportunities at small BOT projects since 2015. It is difficult to find out a profitable BOT project due to sensitive issues at present. CII will concentrate on large BOT projects with investment capital from VND10 trillion as their scale and procedures are different from small ones, he said. Price of material shrimp increases in August Price of material shrimp, especially tiger prawn, was on the rise in August, said the Ministry of Agriculture and Rural Development. The surge is attributed to increasing demand of aquatic product processing plants due to a shortage of material shrimp. In Bac Lieu, for example, the price of tiger prawn rose 20,000 VND against last month to 215,000 VND while that of white leg shrimp slightly climbed 1,000-3,000 VND to 130,000 VND per kilo. Raining in August made a huge change in pond temperature, resulting in a drop in salinity level. Sudden change of weather also weakened shrimp’s resistance and growth. However, local authorities have increased monitoring of breeding facilities and warning of diseases on aquatic products, ensuring stable growth of brackish water shrimp. Breeding areas for brackish water shrimp nationwide reached more than 679,000ha in eight months, a rise of 4.2 percent year-on-year. Meanwhile, white-leg shrimp farms covered 63,000ha and that of tiger prawn was 580,900ha. Over 12,400 new firms set up in August As many as 12,404 new enterprises were set up in August with total capital of 131 trillion VND (5.76 billion USD), up 6.2 percent in volume and 39 percent in value, reported the General Statistics Office (GSO). In the first eight months of this year, 85,357 firms were established with combined capital of 822 trillion VND (36.16 billion USD), up 16 percent and 44.8 percent over the same period last year, respectively. Total capital pumped into the economy in the period was 1,930 trillion VND (84.92 billion USD), including 1,108 trillion VND added to nearly 24,700 existing firms. The GSO revealed that 19,154 enterprises resumed their operation, an increase of 2.4 percent year on year. Wholesale and retail sector drew the largest new businesses with 30,700 firms, followed by construction sector with 11,000 enterprises and processing-manufacturing sector, 11,000 firms. In eight months, the northern midland and mountainous regions saw the highest rise in new firms, with 3,700 enterprises, up 31.8 percent, and the Central Highlands region, with 2,200 firms, a rise of 25.4 percent. The GSO also reported that the number of dissolved enterprises in eight months were 7,754, an increase of 3.7 percent year on year, including 7,146 firms with capital of 10 billion VND, accounting for 92.2 percent. At the same time, 45,776 firms halted their operation, a rise of 13.3 percent, including 28,545 enterprises waiting for dissolving. Vietnamese company installs equipment in Brunei Lilama 69-2 Company, a subsidiary of the Lilama Corporation, has completed the installation of its equipment at an Air Liquide plant in Kuala Belait, Brunei. This is the first equipment installation project of Lilama 69-2 overseas. To date, all equipment of the production line has been installed at the plant. A system comprising of five storage tanks for liquid Argon (LAR) and two tanks for liquid Nitrogen (LIN) has been completed. Meanwhile, pipeline and measurement system installation is underway. Lilama 69-2 is scheduled to finish the whole project in October for the operation of the plant. Air Liquide is one of the traditional partners of Lilama 69-2. The two sides have signed many contracts related to production line installation of the Brunei company’s plants in Vietnam. After the completion of this project, Lilama 69-2 will continue its work in other plants of Air Liquide in Brunei and Singapore. Bargasse-based electricity a possibility The Vietnam Sugarcane and Sugar Association (VSSA) hopes to set up power plants that run on sugarcane by-products. VSSA Chairman Pham Quoc Doanh said at the fifth annual International Sugarcane Conference recently held in the central province of Binh Thuan, that Vietnam's 41 sugar factories annually produced up to 4.5 million tonnes of bagasses, the fibrous remains after the juice is extracted from the cane. He said this could generate up to 1.4 billion kilowatts of electricity per year. By 2020, the country will produce about 20 million tonnes of sugarcane which can turn out 2,400 megawatts of electricity. Doanh said that if Vietnam could manage to process these sugar by-products, they should eventually produce 10 percent of the national electricity turnover. Countries within the Asia Pacific region, such as Brazil, Thailand or the Philippines, have successfully used bagasse to generate electricity. Electricity generated by bagasse is a clean alternative source which lessens dependence on thermal power or fossil fuels and help reduce hydro power plant production during the dry season. Pham Hong Duong, Chairman of TTC Bien Hoa Sugar Corporation, told the conference that the price difference between bagasse-based electricity in Vietnam and Thailand and the Philippines was the main reason why not many power plants have invested in this form of energy. According to Duong, the current price for each kilowatt of electricity generated by bagasse in Vietnam is roughly 0.05 USD, while the same amount costs 0.11 USD in Thailand and 0.13 USD in the Philippines. The conference, held in Phan Thiet city, was co-organised by the VSSA and TTC Group. Dong Nai records 1.4 billion USD trade surplus in eight months The southern province of Dong Nai enjoyed a trade surplus of nearly 1.4 billion USD in the first eight months of the year, according to the provincial Statistics Office. In the eight-month period, the province shipped nearly 11 billion USD worth of products to foreign countries, a year-on-year increase of 11 percent. The trade surplus was contributed by key staples like footwear (1.9 billion USD, up 9.4 percent), garments (over 1 billion USD, up 8.2 percent) and wooden furniture (722 million USD, up 12.3 percent). The provincial People’s Committee said that the footwear sector has witnessed the highest export turnover in the past years. Foreign direct investment (FDI) companies like Changsin, Taekwang Vina and Pouchen have enjoyed sound and stable growth. They are committing to raising production capacity to meet orders from the world’s big footwear brands in the coming time. Despite facing fierce competition with Chinese, Indian and Bangladeshi enterprises, Vietnamese garment businesses still ensure stable orders thanks to their prestige and product quality. Regarding wooden products, numerous firms have sought new markets while taking advantage of the free trade agreements signed with the Republic of Korea and Japan to boost their exports. Meanwhile, several products saw high export growth like fibre (795 million USD, up 25.6 percent), machines and equipment (670 million USD, up 22.9 percent), computers and electronic products (318 million USD, up 22.8 percent). High export prices of agricultural products also contributed to the province’s export revenue. The largest importers of Dong Nai goods in the period were the US with revenue of 2.54 billion USD, China with 944 million USD and Japan with 934 million USD. Gov’t cuts inspections on some imports Prime Minister Nguyen Xuan Phuc has issued a decision repealing a list of 114 products and goods subject to pre-import quality inspection, cutting inspections on these products from two times to one. The list was issued by then-PM Nguyen Tan Dung on March 7, 2006. The repeal will take effect from October 5, 2017, aiming to reduce customs clearance time spent on these 114 products, which currently undergo two inspections, before and after they are officially imported. This move is expected to aid businesses as well as consumers. The listed products will now only be inspected once they’ve already been imported. The goods, which will no longer receive pre-import quality inspections, include medical equipment and facilities, vaccines, aquaculture feed, instant seafood products, pesticides, fertilisers, veterinary drugs and raw materials for veterinary medicine and animal feed. The list also contains protective helmets for motorcyclists, children’s helmets, kettles, irons, electric cookers, electric ovens, electric pans, electric grills and toys for children under 36 months of age. Some types of explosive products, explosion-proof equipment used in mining, cranes, construction machines for traffic works, tractors, some types of cement products, reinforced concrete beams, industrial safety helmets, insulated gloves, elevators and escalators will also no longer be inspected twice. Vietnamese firm starts building fish trawler for Canada Ha Long Shipbuilding Co., Ltd held a keel-laying ceremony on August 31 to mark the start of the construction of a fishing trawler for Hill Enterprises from Canada. The ship for offshore fishing will be 29m in length, 10m wide and 5m high, following Canada’s and international fishing vessel safety regulations. It will have special equipment for locating fish and a cold cellar for fish storage. It will be the first fishing vessel Ha Long Shipbuilding Company builds for a Canadian partner. August retail sales in huge surge Vietnam’s total revenue from retail sales and services reached 2.58 quadrillion VND (114.7 billion USD) in the first eight months of this year, a year on year increase of 10.3 percent, reported the General Statistics Office (GSO). The figure amounted to an 8.9 percent increase, excluding the price factor, the highest rise recorded since the beginning of this year, said GSO domestic trade expert Vu Manh Ha, adding that the figure was also higher than 8.5 percent growth of the same period last year. Ha attributed the growth in purchasing power to surges in demand for accommodation and catering services after high school graduation and university examinations as well in essential goods for the new school year which starts in September. Recovery in revenue from accommodation and catering services in four central provinces – Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue - after last year’s environmental disaster caused by Formosa also contributed to the retail sales increase, he said. From January to August, revenue of retail sales reached 1.93 quadrillion VND (86.1 billion USD), accounting for three quarters of total revenue, a yearly rise of 10.3 percent. Sectors posting significant growth included textile and garments, up 14 percent; equipment and home appliances, up 11.6 percent; food and foodstuff, up 10.6 percent; and transportation, up 7.6 percent. Revenue from accommodation and catering services stood at 318 trillion VND (14.1 billion USD), an increase of 11.3 percent against the figure in the same period last year. Meanwhile, the tourism sector experienced a revenue increase of 11 percent year-on-year in the first eight months to 23.1 trillion VND (1.26 billion USD), with several localities witnessing significant growth, such as the northern province of Bac Giang with 25.1 percent; the central province of Khanh Hoa (23 percent); HCM City (12.2 percent) and the southern province of Ba Ria – Vung Tau (12 percent). The Association of Vietnam Retailers has forecast that the country’s retail turnover will rise to 179 billion USD by 2020. Vietnam-Australia trade rises 4.7 percent each year: MoIT Six years after implementing the ASEAN-Australia-New Zealand Free Trade Area, trade between Vietnam and Australia has increased 4.7 percent each year on average, according to the Ministry of Industry and Trade (MoIT). Last year, trade between the two countries reached 5.26 billion USD, up 6.5 percent from 2015, with Vietnam’s trade surplus sitting at 480 million USD. During a conference held by the Department of Asian Market on August 31, the MoIT said that Australia has high demand for goods from Asia-Pacific and has become an important market for Vietnam. Popular Vietnamese exports to Australia include aquatic products, consumer goods, apparel, footwear and wooden products due to preferential tax deals in the ASEAN-Australia-New Zealand Free Trade Area, added the ministry. HCM City calls for foreign investments Ho Chi Minh City authorities, on August 31, held a meeting with foreign consuls general in the city to discuss orientations to develop the southern metropolis and joint works to increase foreign capital. Speaking at the function, Chairman of the municipal People’s Committee Nguyen Thanh Phong stated HCM City is committed to improving the local business climate to welcome long-term operations of foreign investors. Phong said the city wants to learn from experience of cities around the world in terms of growth and living quality, asking participating consuls general to share initiatives and collaboration to help tackle the municipal development challenges. HCM City leaders presented the hub’s master planning for growth by 2020 and nine major projects as well as its progress of becoming a smart city. They expected the consuls general to become bridges connecting potential foreign investors to the city’s projects. Singaporean Consul-General Leow Siu Liu acknowledged the city’s efforts to ensure strong development and boost people’s living standards. Expressing her delight at the local development planning and seven breakthrough programmes for 2016-2020, she stressed the consuls general will inform business associations and firms at home on investment opportunities in the city. At the meeting, the authorities also fielded questions by the diplomats. In the first half of 2017, the municipal Gross Regional Domestic Product grew 7.76 percent, up 7.47 percent from the same period last year. As of August, the city recorded 22.8 billion USD in export revenue, an annual increase of 13.6 percent, and 650 new and extended FDI projects totalling 1.4 billion USD. Hau Giang seeks capital for key investment projects The southern province of Hau Giang will organise an investment promotion conference in the middle of September to attract investment capital for its key projects. The information has been revealed by Truong Canh Tuyen, vice chairman of the provincial People’s Committee. The key sectors that need investment include the infrastructure in industrial zones and complexes, the wholesale markets for farm produce, the processing and preserving systems for farm produce, the high-tech agriculture zones, and tourism. The province leader said that the conference and the related activities, such as the trade fair, would draw the participation of some 300 investors. On this occasion, the province will grant investment certificates to the investors, as well as sign memoranda of understanding with enterprises, Huynh Thanh Hoang, said deputy director of the provincial Department of Industry and Trade. Currently, there are 4,200 enterprises with a total registered capital of 45 trillion VND (2 billion USD) in Hau Giang. The province has so far attracted 40 foreign and domestic investors, who have poured capital worth 760 million USD and 66.4 trillion VND, respectively, in the local industrial zones and complexes. PV Drilling secures 6 million USD deal with KrisEnergy The PetroVietnam Drilling & Well Service Corporation (PV Drilling) has signed a contract worth over 6 million USD to offer jack-up drilling services to Singapore-based KrisEnergy. Accordingly, the PV Drilling I jack-up rig will be used for the exploration of six fixed and two optional wells in the Gulf of Thailand’s block G10/48, where KrisEnergy holds an effective 89% working interest in and is the operator. The work is scheduled to start in October 2017. The contract is the second drilling deal that PV Drilling has secured this year with foreign partners. Previously, it served Total E&P Myanmar’s 164-day drilling campaign in blocks M5 and M6 of Myanmar's sea. Military Bank, VPBank to augment charter capital The State Bank of Vietnam recently approved proposals to raise charter capital at the Military Commercial Joint Stock Bank (MB) and the Vietnam Prosperity Joint Stock Commercial Bank (VPBank). The MB plans to augment its charter capital from nearly 17.13 trillion VND (753.72 million USD) to 18.15 trillion VND (798.6 million USD). Meanwhile, VPBank aims to boost its charter capital from nearly 14.06 trillion VND (618.64 million USD) to 15.7 trillion VND (690.8 million USD). The increases were agreed by MB and VPBank shareholders at their annual meetings last April. The central bank requested MB and VPBank raise charter capital in line with legal regulations, including those on share ownership limits for shareholders. Nearly 102,000 labourers register in August A total of 101,700 labourers were registered at newly-established businesses in August, up 8.8 percent year-on-year, according to the General Statistics Office. The number of workers at industrial firms also increased by 4.3 percent in August compared with the same period last year. The number of labourers at State-owned enterprises fell by 4 percent while the figure at non-State enterprises rose by 0.9 percent and at foreign direct investment (FDI) firms, up 7.6 percent. Last month, there were 12,404 newly-established enterprises with total registered capital at 131.4 trillion VND (5.78 billion USD), up 6.2 percent in volume and 39 percent in capital against the previous month. Hà Nội enjoys steady growth in all key sectors Hà Nội’s economy has expanded since the beginning of this year with steady growth recorded in all key sectors of industry, trade, tourism and services and agriculture, reported the municipal People’s Committee. The city’s industrial production index grew 6.5 per cent in the first eight months of 2017, of which the mining industry rose 7.1 per cent. The manufacturing and processing sector expanded 6.6 per cent while electricity production and distribution registered a 6.1 per cent increase. The water supply and waste treatment sector saw growth of 3.1 per cent. During the January-August period, Hà Nội’s export turnover enjoyed a year-on-year increase of 8.5 per cent to $7.6 billion. Since the beginning of the year, Hà Nội has welcomed more than 2.3 million foreign visitors, up 22.7 per cent year-on-year. The number of newly-established business in Hà Nội rose by 14 per cent to 16,714 in the first eight months of 2017, with combined registered capital of approximately VNĐ130 trillion, up 4 per cent year on year. Statistics showed that over 223,900 enterprises are operating in the capital city. In the reviewed period, some 93,000 business registration applications were submitted online. The municipal administration has provided free consultancy for nearly 50,000 firms and individuals, both in and outside the country, who are doing business in the city. The city welcomed 114 non-budget investment projects, worth VNĐ71 trillion; 22 Public-Private Partnership (PPP) projects with a total investment of VNĐ60 trillion; and $1.74 billion in foreign direct investment (FDI) projects. So far, Hà Nội has had 128 PPP projects with a combined investment of VNĐ333 trillion, of which eight projects have been completed and 120 others are underway or preparing procedures. Chairman of the municipal People’s Committee Nguyễn Đức Chung emphasised that attracting investment is a very important task for the city though many challenges remain. Hà Nội has taken a wide range of measures to create favourable conditions for investors by stepping up the application of information technology and holding dialogues with businesses to remove difficulties they face, he added. In the remaining months, Hà Nội will focus on stimulating consumption, exchanging goods with other localities, and promoting exports while managing the domestic market and developing tourism products. The city will approve a planning scheme for developing industrial clusters by 2020 with a vision to 2030 while calling on more investors to build local industrial parks. It will take measures to remove difficulties in terms of procedures for investors and pay attention to big domestic and foreign-invested projects so that they could be licensed in 2017. Military Bank, VPBank to augment charter capital The State Bank of Vietnam recently approved proposals to raise charter capital at the Military Commercial Joint Stock Bank (MB) and the Vietnam Prosperity Joint Stock Commercial Bank (VPBank). The MB plans to augment its charter capital from nearly 17.13 trillion VND (753.72 million USD) to 18.15 trillion VND (798.6 million USD). Meanwhile, VPBank aims to boost its charter capital from nearly 14.06 trillion VND (618.64 million USD) to 15.7 trillion VND (690.8 million USD). The increases were agreed by MB and VPBank shareholders at their annual meetings last April. The central bank requested MB and VPBank raise charter capital in line with legal regulations, including those on share ownership limits for shareholders. Gov’t urges focus on transport Deputy Prime Minister Trinh Dinh Dung has asked ministries, localities and relevant agencies to address stumbling blocks facing key transport projects in order to accelerate their progress. Dung said some transport projects have been slowed down due to difficulties in land clearance, slow procedure completion, or inappropriate investment allocation. The delayed projects include Tan Vu-Lach Huyen road, Da Nang-Quang Ngai expressway, Ca Pass tunnel, and the HCM highway running through Central Highlands. The Deputy Prime Minister asked the transport ministry, relevant sectors, and localities to review the documents and procedures of these projects as well as clarify authority for their completion to the National Assembly, Government, Prime Minister, sectors and localities. Difficulties which are slowing down the projects must be reported to authorized agencies. During the project implementation, land clearance, compensation and resettlement must be put in focus. Sectors must also step up supervision to improve projects’ quality and efficiency and reduce waste, he said. He ordered the transport ministry to ask investors and project management boards to work closely with local authorities in project implementation, especially land clearance, and to continue to collaborate with construction ministry to control project costs. He urged early procedure completion for key projects such as North-South expressway in the east, expansion of Tan Son Nhat Aiport and Long Thanh Aiport. People’s committees of central-level cities have been ordered to stabilise supply and costs of materials to meet construction progress. The Ministry of Natural Resources and Environment is in charge of reviewing mines of construction materials to ensure their reserves. Vinatex visits Armenia After a new trade deal, a Vietnamese company is hoping to add a new country to their roster of important trading partners: Armenia. A delegation of the Viet Nam National Textile and Garment Group (Vinatex) has recently made a fact-finding trip to Armenia to seek partners for production projects. Viet Nam is the first country to sign a free trade agreement with the Eurasian Economic Union (EAEU) that includes Armenia. Vinatex general director Le Tien Truong said that during their stay, the group’s representatives held working sessions with a deputy foreign minister, the minister of economic development and investment, and some major businesses in Yerevan, the capital city of Armenia. He said Vinatex will consider establishing production and business cooperation with big companies in Armenia that already have distribution networks in Russia and the EU. In the initial stage, Vinatex will mainly contribute machinery and production administration. At the meetings, the Armenian Government expressed its desire to cooperate with major firms with much experience in production management like Vinatex, so as to revive the local garment industry and boost exports. It also promised to encourage investment, create favourable conditions for foreign investors, and provide special mechanisms for Vietnamese investors through cooperation policies, multilateral and bilateral cooperation agreements, and granting of work visas, Truong added. According to Vinatex, 94 businesses are operating in the textiles and garment industry of Armenia. The country exported US$50 million and imported $170 million worth of textile and garment products in 2014. Despite their small scale, Armenian firms have experience in working with big fashion brands of Italy and Germany such as La Perla, Moncler, Armani and Porsche. New kinds of mooncakes ready A new full-moon season starts in one month and confectioneries nationwide are ready with many kinds of mooncakes with new flavours. Along with improving product quality, companies have invested in creating new products with attractive designs and packaging. About 50 trademarks have joined the market this year, including Mondelez Kinh Do, Thanh Long, Huu Nghi, Dong Khanh, Hy Lam Mon, ABC, Duc Phat, Tous Les Jours and Dong Khanh. Speaking with Viet Nam News, Modelez Kinh Do said they were ready to offer 84 different kinds of mooncakes this year. The company first launched Oreo mooncakes in 2007, which are designed based on the modern technologies of Mondelez International and Kinh Do’s traditional experiences in making mooncakes. These Oreo moon cakes will be made for the Vietnamese and Chinese market, the company said, noting that many other products had been exported to the US. Other companies including Bibica and Dong Khanh have also begun introducing products for the mid-autumn festival season. In HCM City, many booths selling mooncakes from these companies can be seen throughout the city. A representative from Bibica told Viet Nam News that the company this year would introduce 600 tonnes of mooncakes with 60 different kinds, up by 10 per cent year-on-year. The company added that this year it would make mooncakes in a Japanese style with materials imported from other countries. He added that the company was focusing on design and packaging as well as using healthy ingredients. Traders have also started their full-moon season by importing a big volume of mooncakes to sell on social networks like Facebook or websites. These mooncakes are mostly imported from Hong Kong, Japan, Malaysia and Thailand. A trader said that she started to import mooncakes from the beginning of August, and that customers had been buying the moonackes out of curiosity. Le Thi Thanh Xuan from the Delicacy shop said that her company’s full-moon imports this year will jump by 60 per cent. Last year, they imported 1,000 boxes. Handmade moon cakes are also in high demand. Dinh Truc, mooncake makers in Binh Tan District, said that the company had made mooncakes for years and most of his customers prefer those shaped like one the 12 animals of the zodiac. He has received dozens of orders from customers. This year he will design more shapes and create mooncakes, with many new flavours. Confectioneries said the price this year had slightly increased by between 3 per cent and 5 per cent. They attributed the price hike to the increasing income costs for power, water, human resources and transportation. Some traders, however, said that well-designed packaging had increased the prices of the cakes. The cost for packaging accounts for 20 per cent of the total cost, according to traders. New regulations on import and export The Ministry of Finance has held a meeting to introduce changes in the list of Viet Nam’s export and import goods as per Circular No 65/2017 / TT-BTC. The new circular will take effect from January 1 next year. At the meeting on Friday, Dao Thu Huong, Deputy General Director of the General Department of Customs, said that the change focuses on a number of industries including automobile, fishery, chemicals, porcelain tiles, machinery and equipment. The industries have had technological and commercial development so they need to have an enhancement in State management of the environment and toxic chemicals, Huong said. Notable changes have been made in the automobile sector with an addition of new subdivisions such as electric cars, electric vehicles, gasoline-electric or oil-electric hybrid vehicles. The machinery and equipment sector is also added new codes reflecting new technologies such as LED diodes or multi-component integrated circuit (MCO) products. The fishery industry details the names of some types of fish, molluscs that have high trade turnover or supplements the scientific names of fish and fish by-products to facilitate the State management. Circular No 65 also introduces a draft decree to replace Decree 122/2016/NÑ-CP on export and import tariffs, under which it proposes two import tax reduction options on automobile components. In the first option, the ministry proposes to reduce the most favoured nation (MFN) import tax rate of 163 tariff lines for imported cars to be assembled for two groups of vehicles to zero per cent. Accordingly, the average duty rate for whole sets will be cut from 14-16 per cent to about 7 per cent for cars under nine seats and about 1 per cent for trucks under 5 tonnes. In the second option, the MFN import tax rate of 19 tariff lines for engines, gearboxes, actuators and high pressure pumps to be assembled for two groups of vehicles will be exempted. The import tax rate of 42 tariff lines under Group 8708 for components assembled for the two groups of vehicles above will be cut so that the average duty rate for whole sets will be cut from 14-16 per cent to about 7 per cent for cars under nine seats and about 1 per cent for trucks under 5 tonnes. According to Huong, the tax adjustment aims to harmonise the interests of the State, enterprises and consumers besides maintaining the stable growth rate of production and assembly for vehicles under nine seats and trucks. Bao Viet Insurance boosts international co-operation Bao Viet Insurance Corporation’s main policy this year is to strengthen co-operation with reputed international partners to provide new products and services in Viet Nam’s market. Deputy CEO of Bao Viet Insurance Nguyen Quang Hung stated this during the launch of “One Storm” insurance product, which was introduced for the first time in Viet Nam by Munich Reinsurance Company and Bao Viet Insurance on Thursday. According to Hung, the new product is designed to protect organisations, power plant operators, large corporations, industrial enterprises and Government agencies against losses caused by typhoons in Viet Nam, with compensation limit from VND10 billion (US$440,000) to VND100 billion per insured location. Due to its tropical monsoon climate, Viet Nam is on the path of many major storms, which regularly cause devastating losses. This non-traditional insurance solution is a parametric trigger typhoon risk cover, which protects fixed assets in operation or under construction, determined by the exact insured location through latitude and longitude, both onshore and offshore. Unlike traditional insurance products that only cover a policyholder’s losses following physical damage, “One Storm” claims to handle pay-outs fast and is uncomplicated in case of pre-defined triggers even without any physical damage incurred. Risk holders can check their triggered pay-out in real time after a storm takes place at onestorm.munichre.com, with data being identified and verified by the Japanese Meteorological Agency, an independent third party. During the ceremony on Thursday, Bao Viet Insurance also introduced another new product called Baoviet Intercare. Cooking gas price up VND16,000 in southern regions The price of cooking gas in HCM City and the southern provinces has been raised by VND16,000 (70 US cents) for a 12kg canister with effect from September 1. Thus, the retail price for consumers will now be VND320,000-325,000 per 12kg canister. Gas traders said the latest hike is on account of the $50 per tonne increase in world gas price this month compared to the previous month, adding up to $490 per tonne. The price of domestic gas had to be adjusted in accordance with the global market, traders said. With this hike, September becomes the second consecutive month to post a rise in gas prices. In August too, there had been a hike of VND27,000 per 12kg canister. Agents, gas shops and consumers in HCM City and the southern provinces have been informed about the new rates. VN seafood has potential in China With the largest population in the world and an increasing affluent one, China is a lucrative market for Vietnamese seafood products. But the market also comes with potential risks and unpredictability, requiring Vietnamese firms to be cautious when exporting there, a conference heard in HCM City on August 30. Le Hang, deputy director of the VASEP (Viet Nam Association of Seafood Exporters and Producers) Training and Trade Promotion Centre, told “China Seafood Market: Potential for Viet Nam’s Suppliers” that fisheries exports to China soared from US$152 million in 2007 to $860 million last year. Shrimp and tra fish saw the strongest increase, but continue to have the potential for double digit growth rate in the coming years, she said. Chinese are increasingly eating more fish than meat, while local output from aquaculture and fishing is shrinking, offering Vietnamese exporters a good opportunity, she said. But the market also has risks, she warned. China could tighten hygiene, food safety and quarantine regulations, she said. Yang Yong, chairman of GuangZhou Nutriera Biotechnology Co Ltd, said Chinese consumers are increasingly looking at product quality, safety and convenience. Brands are one of the key factors for them in choosing a product, and are willing to pay 20-30 per cent more, he said. Therefore, Vietnamese exporters could increase processing to make products more convenient or nutritious for Chinese consumers, he said. For instance, Vietnamese firms could add vegetable extracts to tra fish to increase the omega-3 content or additives to improve flavour, he said. Hang said Chinese consumers’ tastes change rapidly and so producers must keep a close eye on the market to come up with appropriate products. Nguyen Phu Hoa, deputy director of the Ministry of Industry and Trade’s Foreign Trade Department, said Vietnamese companies should export products that meet US and Japanese standards and have strategies to build their brands in China. Truong Tuyet Hoa of Vinh Hoan Corporation said her company’s tra fish exports to China have increased sharply. Chinese importers have diverse demands in all segments, and her company focuses on processed products and products with high added value, she said. Many importers send chefs to her company’s factory to adjust the spices to make the products suitable for Chinese palates, she said. To avoid risks, her company does not sell through the border with China and only supplies goods after getting the payment, she added. Viet Nam shipped $749 million worth of aquatic products abroad in August, bringing the total in the first eight months of 2017 to $5.13 billion, up 18.1 per cent from the same period last year. According to the Ministry of Agriculture and Rural Development, the largest buyers of Vietnamese aquatic products included the United States, Japan, China and the Republic of Korea, accounting for 55.6 per cent of total exports. Export value to China showed the biggest increase of 57.2 per cent, followed by Japan (30.8 per cent), the United Kingdom (30.1 per cent), the RoK (28.8 per cent), the Netherlands (25.3 per cent) and Canada (20.7 per cent). MARD to get involved in promoting organic farming The Ministry of Agriculture and Rural Development (MARD) should coordinate with relevant ministries to promulgate a decree on organic agriculture. This was said by Nguyen Xuan Hong, former director of the ministry’s Plant Protection Department, at a conference on organic farming held in Ha Noi on Thursday. The event is designed to get opinions from experts, producers and enterprises to finalise a decree on organic farming before submitting it to ministries and departments for comments. Then, it will be sent to the Government for approval. Once issued, the decree will contribute to developing Viet Nam’s organic agriculture sector, meeting the needs of domestic and international consumers, increasing income for farmers and businesses, and creating biodiversity and sustainable landscape. At the conference, delegates revised the TCVN 11041: 2015 national standard for the producing, processing, labeling and marketing of organic food. Participants spoke about the strict management of production, business and the certification of organic products. Experts encouraged enterprises to invest in producing and trading organic products, investing in the production of organic fertilisers, biological fertilisers and biological plant protection products. Hong said it was necessary to invest in scientific and technical research, create a favourable business environment for organic enterprises, and support cooperative groups who wanted to take up organic agriculture. MARD deputy minister Tran Thanh Nam said domestic enterprises had invested in organic farming and actively applied international standards to meet the demands of the domestic market and exports. Currently, many types of products are labelled organic, but most do not yet meet organic standards and safety requirements, causing lack of trust by consumers. Therefore, Nam said it was necessary to develop a legal document to facilitate the development of organic griculture. The conference was organised by MARD, in accordance with European Trade Policy and Investment Support Project (EU-MUTRAP). It drew the participation of scientists, researchers, enterprises and producers of organic farming products. Coal imports reduce in seven months Viet Nam imported 7.9 million tonnes of coal worth US$801 million in the first seven months of the year. The imports represented a 5.1 per cent decrease in terms of quantity and a 49.2 per cent increase in term of value compared the same period last year. Statistics from the General Department of Customs revealed that in the seven-month period, Indonesia was Viet Nam’s largest coal exporter with 2.9 million tonnes and turnover worth $192.7 million, posting an increase of 48.2 per cent and 65.2 per cent year-on-year in terms of quantity and value, respectively. Australia came second in coal exports by Viet Nam with 2.3 million tonnes worth almost $283 million, reducing 12.4 per cent in quantity but increasing 40.2 per cent in value. Notably, the country’s coal imports from China in the period were sharply reduced from the corresponding period last year, from 1.16 million tonnes to 614,125 tonnes. However, export turnover increased from $93.8 million at the end of last year to $110.4 million. The department said the main reason was the continuous increase in coal import price from China in the last seven months. Sales Promotion Fair opens in HCM City Scores of businesses are displaying a wide range of products at the 2017 Sales Promotion Fair that opened in HCM City’s Phu Tho Indoor Stadium on on August 30. Organised by the Department of Industry and Trade, it has over 450 booths showcasing food and beverages, garments and textiles, footwear, electronic and electrical products, home appliances, handicrafts, cosmetics, interior and exterior decoration items, real estate projects, and tourism services, with many offering discounts of up to 49 per cent. In response to the "For a Green Environment" movement, the fair’s organisers are providing free bags to shoppers. The department has co-ordinated with the city Market Management Department and Commodities and Trademark magazine to display fake goods and identify genuine goods to warn consumers to be cautious. Speaking at the opening ceremony, Nguyen Phuong Dong, the department’s deputy director, said the fair is an important activity for stimulating consumption and attracting visitors to the city. The fair is part of the city’s 2017 Sales Promotion Month in which 3,000 enterprises and 5,300 business households are participating. The fair will go on until September 4. Thua Thien-Hue’s export turnover up 21% The central province of Thua Thien-Hue shipped US$530 million worth of products to foreign countries in the first eight months of 2017, a year-on-year surge of 21.16 per cent. The foreign-invested sector contributed $298 million, up 24.82 per cent, while $150 million came from the private sector, up 21.61 per cent. The United States continued to be the largest purchaser, accounting for 40 per cent of the province’s export revenue. Along with traditional markets such as China, the European Union, Japan, South Korea and Taiwan, local products have also been shipped to Cambodia, India, Slovakia and Sri Lanka. The export value registered a year-on-year surge of 17.47 per cent for industrial processed products, and 35.79 per cent for agro-forestry-fishery products. Notably, the export of aquatic products has doubled to $35.25 million, up 24.78 per cent against 2016. Leading Thua Thien Hue’s textile market, Hue Textile and Garment Joint Stock Company earned VND1.57 trillion ($69 billion) in revenue and its export turnover was $85 million. The average monthly income of its employees is VND7.3 million per person. In order to achieve the targeted growth of 10 per cent in 2017, Hue Textile and Garment JSC has started construction of two factories to increase production, including a VND70 billion garment factory in Phu Da Industrial Zone and another factory valued at VND35 billion in Nam Dong District. Thua Thien Hue Province has spent $345 million purchasing materials from foreign countries, a 6.76 per cent rise compared to the same period last year. Most of the imports have been garment-support materials and spares, with China remaining its primary source for these imports. Viet Capital Bank signs deal to distribute Bao Minh’s insurance products Viet Capital Bank and Bao Minh Insurance Corporation on August 31 signed a bancassurance deal for non-life insurance. Bao Minh Insurance Corporation will distribute its insurance products for assets, cargo, private homes, automobiles, personal health and accident, family health, domestic and international travel and others through Viet Capital Bank’s network of more than 62 branches in the country. According to Viet Capital Bank, the tie-up will enable it to deliver the most cost effective and practical insurance products and services to customers. Le Van Thanh, general director of Bao Minh, said after nearly 10 years of involvement in bancassurance, his company is confident of co-ordinating with Viet Capital Bank to offer appropriate product packages to customers. New owner for unfinished AZ Lam Vien Complex The Ha Noi People’s Committee allowed Lam Vien Construction and Investment Joint Stock Company to sell the entire AZ Lam Vien Complex to AZ Land, according to an announcement by the municipal Department of Construction. Lam Vien Construction and Investment Joint Stock Company is responsible for handling any problems that may arise and ensure the rights of buyers and relevant parties. Construction of the AZ Lam Vien, located on Nguyen Phong Sac Street, Cau Giay District, began in 2009 but its construction had been stagnant since then, despite the contractor changing from Vinaconex 1 to Lac Hong Investment in 2014. Its construction has stopped on the 13th floor for years. The project has 29 floors and two basements with total investment of VND690 billion (US$30.4 million). Phu Yen revokes VND800b hotel project The People’s Committee of central Phu Yen Province has decided to revoke a VND800 billion (US$35.2 million) hotel complex project in Tuy Hoa City of Dien Bien No 1 Construction Company due to stagnant construction. Muong Thanh Phu Yen’s investment policy was approved in July 1, 2016, covering 14,400sq.m. with 27 floors consisting of 200 five-star hotel rooms and 300 luxury apartments. Accordingly, the developer was asked to complete legal procedures by September 2016, start construction of the project in October of the same year and complete it within one year. Until now, the developer has, however, failed to start construction. In June, the provincial People’s Committee asked the developer to submit the investment plan but received no response before the deadline. Vinpearl to purchase 13.5m Nha Trang Port shares Khanh Hoa Province People’s Committee has registered with the Ha Noi Stock Exchange to offload 13.5 million shares, or 55 per cent stake, in Nha Trang Port JSC. The transaction is scheduled for between September 5 and October 4 and the shares will be sold via put-through trading. The Khanh Hoa provincial government is holding more than 15 million shares of the Nha Trang port operator, equal to 61.4 per cent of the company’s charter capital. The number of shares to be sold by Khanh Hoa Province’s government is also equal to the amount of shares that will be bought by Vinpearl JSC – a member company of property developer Vingroup. If the deal is completed, Vinpearl JSC will raise its ownership in Nha Trang Port JSC to 85.5 per cent from the current 30.5 per cent. Vinpearl became a shareholder of Nha Trang Port JSC in 2015. Shareholders of Nha Trang Port JSC approved the deal at the company’s shareholder meeting in early August. The main business activities of Nha Trang Port JSC include loading, storage, logistics and marine transportation. In the first half of 2017, the company posted VND28.4 billion (US$1.26 million) in revenue and VND2.57 billion in post-tax profit. HNX raises $140m from Government bonds in August The Ha Noi Stock Exchange (HNX) announced it has mobilised nearly VND3.2 trillion, or US$140 million, from 17 government bond auctions in August. HNX said the number of bonds mobilised in the primary market decreased 79 per cent compared with July. The bonds were offered for four tenures -- five years, seven years, 10 years, 15 years and 30 years. The coupon rates of five-year term bonds were 4.6 per cent per annum, seven-year term bonds were at 4.8 per cent per annum, 10-year term bonds were at 5.38 per cent per annum, 15-year term bonds were at 5.75 per cent per annum and 30-year term bonds were at 6.1 per cent per annum. Compared with July, coupon rates in August of five-year bonds dropped 0.12 per cent per annum, seven-year bonds reduced 0.15 per cent per annum and 30-year bonds declined 0.12 per cent per annum. Coupon rates of 10-year and 15-year bonds saw no change in August. In the secondary market, the total number of government bonds in outright transactions reached 902.5 million, which was equivalent to VND99.5 trillion, down 10.3 per cent in value month-on-month. The total volume of government bonds in repo (repurchase agreement) trading reached 1,186 million, equivalent to VND119 trillion, up 20.4 per cent in value month-on-month. Foreign investors also made outright purchases of more than VND4.9 trillion and outright sale transactions of over VND5.5 trillion. They made repo sales of over VND98.9 trillion and no repo buys in August. Toyoda to build airbag plant in VN Toyoda Gosei Co., Ltd. on Wednesday released plans on its website to establish a new plant for producing airbag parts in the northern province of Thai Binh, Viet Nam. According to the announcement, the factory has total investment capital of US$24.6 million and construction is expected to start in March, 2018. The plant is planned to be built on an area of 2.08ha in Thai Binh Province’s Tien Hai Industrial Park and is designed to meet growing demand for airbags, as safety regulations become more stringent in regions around the world. The new plant will be established as a branch plant of Toyoda Gosei’s subsidiary Toyoda Gosei Hai Phong Co., Ltd. (TGHP), and will start production of airbag parts and steering wheels in July 2019 for export to final airbag assembly plants in Japan, North America, Europe and other regions. In 2004, Toyoda Gosei established the first plant to manufacture airbag parts in Hai Phong City with investment capital of $74.95 million. To date, Toyoda Gosei has three plants in operation in Hai Phong’s Nomura Industrial Zone. In 2016, the plants’ production capacity was 14.5 million airbag parts and 2.2 million steering wheels. The company targets to increase these figures to 23 million airbag parts and 3.2 million steering wheels by 2023. Established in 1949 and headquartered in Kiyosu, Japan, Toyoda Gosei is a leading specialty manufacturer of rubber and plastic automotive parts and LEDs. Today, Toyoda Gosei Group provides a variety of high-quality products internationally, with a network of some 100 plants and offices in 18 countries and regions. Airbags and other safety system products are a key business segment for Toyoda Gosei and the company is moving to strengthen its production capacities for these products globally. International shipbuilding expo returns to Ha Noi The 9th International Exhibition of Shipbuilding, Shipping, and Offshore Technology (Vietship 2018) will return to the capital early next year, the event’s organisers announced on Thursday. The forthcoming expo will draw the participation of leading enterprises, including those from foreign countries having developed maritime industries, such as Japan, South Korea, Singapore, China, France, Norway, Belgium and the Netherlands. The biennial event will offer a good chance for businesses and investors to approach useful information, share state-of-the-art technologies and seek investment opportunities to further accelerate the development of the shipbuilding industry, organisers said. Hosted by the Shipbuilding Industry Corporation (SBIC), Vietship 2018 will take place at the National Convention Centre from January 24 to January 26. It is expected to attract more than 10,000 visitors. Conferences on the shipbuilding and maritime industries will be held on the sideline of the expo. The previous event saw 19 contracts and agreements worth over VND500 billion (US$22.4 million) inked between domestic and foreign partners. It had 220 stands from 130 companies, including 78 foreign firms. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET |
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Traffic cops collect unofficial fines from commuters near Ho Chi Minh City airportSeveral traffic cops asked offenders to pay an unofficial ‘fine’ in order to keep violations off their records |
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A traffic cop collects a ‘fine’ from an offender near Tan Son Nhat International Airport. |
According to the observation of Tuoi Tre (Youth) newspaper reporters at the intersection of Hoang Minh Giam with Hong Ha Streets in mid-June, a passenger bus was stopped by a traffic cop and his apprentice after accidentally merging onto the wrong section of the road.
After presenting his license and relevant documents, the bus driver handed some cash to the officer before his paperwork was returned and he was able to drive away.
Two other automobiles were fined under similar procedures within the hour.
At around 3:00 am on June 14, a group of traffic cops began continuously pulling over motorbikes and cars.
Over and over again, commuters would hand over their documents, pay a ‘fine,’ take back their documents, and drive away.
Some travelers were not even aware that they had committed traffic violations, but still eventually agreed to pay the charges after talking with officers.
For more serious vehicle violations, additional steps were taken.
At around 5:00 am on the same day, a cabbie was pulled over during a rainstorm.
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Multiple vehicles are pulled over under the flyover leading to Tan Son Nhat International Airport. |
After checking the driver’s wallet, the officer shook his head, indicating that the amount the driver was willing to pay was not sufficient.
Following a discussion, the cab’s passenger offered VND700,000 (US$30.8) to help the driver.
Returning to the officer, the cabbie pulled out banknotes three separate times.
The traffic cop had a final look at the cabbie’s wallet and pulled out some extra cash before letting him go.
Such ‘fine collection’ is done both out in the open and discretely.
When traffic officers do not wish to be seen, they take violators to fences belonging to nearby construction sites to make payments and claim documents.
Some officers also turn their nametag backward and hide money carefully in folders.
The team of officers finished their ‘mission’ at around 5:22 am after ‘fining’ dozens of vehicles, among which only a seven-seater car was penalized in accordance with the law.
By Tuoi Tre News
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Casino business: Commercial banks allowed to provide services Commercial banks will be allowed to trade and provide foreign exchange services related to the casino business from next month.  This information was stated under Circular No10/2017/TT-NHNN on the management of foreign exchange for the casino business, which will come into effect from October 15 this year. Casino business is a conditional business and under close management of competent State agencies. It is regulated under Decree 03/2017/ND-CP, which allows foreigners and Vietnamese people residing overseas with passports licensed by a foreign competent agency to gamble at the country’s casinos. Vietnamese citizens are also permitted to enter domestic casinos on a three year trial basis. They must be 21 years old or above with full capacity for civil acts of individuals according to Vietnamese law, have proof of regular monthly income of VND10 million (US$450) or be subject to third degree taxation according to the law on individual income tax. The Ministry of Finance is responsible for providing citizens with application forms to verify the above conditions. After the pilot period, the Government will then decide whether or not to continue to allow domestic citizens to participate in gambling at casinos. According to experts, easing regulations for the casino business will help prevent capital from leaving the country by Vietnamese who visit casinos in neighbouring countries such as Cambodia and Macao, help better manage social order in the sensitive entertainment area in Viet Nam and attract foreign tourists. Furthermore, Viet Nam hopes to further integrate regionally and internationally, attract billions of dollars of foreign investment to sustain growth and make tourism a key sector to further development. VNS |
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How many Vietnamese are buying houses in the US? Many Vietnamese have bought properties in the US, but this has not generated cash flow from Vietnam to the US, according to the State Bank of Vietnam (SBV).  SBV is drafting a report for the government about the source of money Vietnamese use to buy properties in the US. NAR has already released a report showing that in the time between April 2016 and March 2017, foreigners spent $153 billion to buy 284,455 properties in the US. The amount of money Vietnamese spent to buy houses in the US accounted for 2 percent, or $3.06 billion. Vietnam is listed among 10 countries with the highest number of citizens buying houses in the US. According to SBV, under the Vietnam’s Forex Ordinance and Decree No 70/2014, the purposes of one-way remittances abroad by Vietnamese do not include payments for property purchases.
However, if individuals remit money for overseas settlement purposes, they may use the money to buy properties to serve the settlement. Credit institutions are allowed to provide remittance services to individuals who have one-way remittances, based on the checking of related documents. The institutions, for example, would refer to notices by foreign schools about tuition and subsistence for students to provide remittance services to make payment for expenses. Regarding remittances for health care services, commercial banks would refer to hospital fee invoices released by overseas hospitals to remit money. The reports from credit institutions showed that the total amount of foreign currencies Vietnamese remitted abroad for transactions in 2015 was $2.26 billion. This included $523.7 million remitted for inheritance and settlement purposes, $307.76 for gifts and $1.4 billion for studying, healthcare, tourism and visits. In 2016, the amount of money remitted for the same purposes totalled $858.8 million. In the first six months of 2017, individuals remitted $419 million. Under current laws, if institutions and individuals remit money abroad to make investments overseas, including investment in real estate, they must comply with regulations stipulated in the Investment Law and related documents on outward investments. To date, MPI has licensed 16 outward investment projects in the real estate sector in the US, totalling $228.8 million, accounting for 26 percent of total outward investment capital in real estate and 32 percent of total investment in the US. According to SBV, the Vietnamese who bought houses in the US between April 2016 and March 2017 may include Vietnamese who live in Vietnam; Vietnamese who have lived for a long time in third countries; Vietnamese who had been living in the US for less than two years until now; and Vietnamese who study, work and visit relatives in the US and have fixed-term visas of less than six months. Kim Chi, VNN |
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Fate of Lee & Man pulp mill project undecided The Mekong Delta province of Hau Giang has remained undecided over the fate of a controversial pulp mill of Vietnam Lee & Man Paper Manufacturing Ltd, said Hau Giang vice chairman Nguyen Van Tuan.  Tuan told the Daily that the province has not made any proposal regarding the facility in Chau Thanh District. The company’s project in the province has three components – a paper manufacturing plant which was put into operation early this year, a pulp mill and supporting facilities such as a seaport, a power plant and a waste treatment plant. The paper factory with an annual capacity of 420,000 ton has become a source of frustration in local communities as it has emitted dust, unpleasant odor and noise. The investor of the project has taken measures to deal with this problem. The Ministry of Industry and Trade has proposed the central Government suspend the pulp mill with an annual capacity of 330,000 tons as it is a potential threat to the environment given its use of a lot of chemicals in the production process. The investor originally planned to start work on the US$348.7 million pulp mill in October 2013 and complete it in late 2015. However, it asked the province in mid-2016 to reschedule the start date of construction to May 2017 and the facility would be up and running in August 2018 but this mill has yet to get rolling. Earlier this year, Vietnam Lee & Man Paper Manufacturing Ltd’s pledged capital was US$1.2 billion but the figure was later lowered to US$628.7 million. SGT |
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Too many barriers stifl startups Analysts say that the ecosystem for startups is not well organized to give substantial support to entrepreneurs.  A report from the Ministry of Information and Communication (MIC) released in 2016 showed that about 1,000 startups are registered every year in Vietnam. However, only 10 percent of them now exist. Nguyen Viet Dung, director of the HCMC Science & Technology Department, said there is a long distance between the idea of starting a business to commercializing products. The lack of capital, experience and supporters, plus the limited knowledge about laws, are the biggest hurdles for entrepreneurs.
The VCCI 2015-2016 startup index report showed that the fear-of-failure index of Vietnamese entrepreneurs is at 46.5 percent. The majority of people starting up businesses are afraid of failure and don’t want to take risks. Some startups have given a push to the movement with their initial success, while many young entrepreneurs want to ‘make things happen’. However, most of them are first-generation technology startups, but they cannot use a perfect startup ecosystem and receive support from predecessors. Huynh Lam Ho, CEO of Haravan, an omni-channel sale business, commented that startups in Vietnam have had more difficulties because of the lack of readiness of the infrastructure. The education system, for example, still cannot provide students with necessary skills to start up businesses. Huynh Kim Tuoc from the Saigon Innovation Hub (SIHUB) said that at universities, students are not taught about starting up businesses, while university students are the ones most eager to do business. Chair of VNG Le Hong Minh spoke about investments in startups at the 2017 M&A Forum. In 2016, roughly $1.5 billion worth of capital was poured into startup projects in SE Asia, but less than $100 million went to Vietnam. The remaining flowed to Indonesia and Singapore. Six companies in Indonesia and Singapore have received $5 billion worth of capital so far this year, of which $2.5 billion has been injected into Grab, while each Vietnamese startup receives several thousand dollars on average. VNG, a Vietnamese conglomerate, also found it difficult to successfully call for $200-300 million and VNG had to contact five ministries to have one small transaction approved. An expert said investment funds complain there are too many required procedures they have to follow when they want to pour money into good projects. HCMC is running SpeedUp, a program on supporting startups that provides businesses up to VND2 billion for every project. The HCMC Young Entrepreneurs’ Association has announced a plan to support 1,000 innovative startups and call for investment capital for 100 startups with total investment capital of VND500 billion. Mai Thanh, VNN |
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Retail rides ‘ideal potential’ to surge A rise in Vietnam’s retail and consumption service revenue reflects growing local purchasing power and retail-related activities.  The General Statistics Office (GSO) reported that in this year’s first eight months, the country’s total retail and consumption service revenue hit about US$117,3 billion, up 10.3% year-on-year. The figure in 2016’s corresponding period amounted to US$104.9 billion, up 9.3% year-on-year. Breaking down the figures, the total eight-month retail revenue reached nearly US$88 billion, up 10.3% year-on-year. The figure in 2016’s corresponding period stood at US$79.94 billion, up 9.7% year-on-year. Vietnam’s retail revenue for the whole of 2016 sat at US$118 billion, up 10.2% over the previous year. Government Office Chairman Mai Tien Dung said that domestic purchasing power is strongly increasing, retail-related activities including investment are thriving in Vietnam, and the country’s retail market has become one of the biggest new magnets to firms, especially foreign ones. In an example of this growth, two weeks ago, Saigon Co.op put into operation its 87th supermarket in Vietnam-Co.op mart Dong Van Cong in Ho Chi Minh City’s District 2. This is the firm’s 32nd supermarket in the city. The US$1.82 million supermarket covers over 4,000 square metres and sells more than 30,000 items between foodstuffs, cosmetics, fashion, and home appliances. In late May, Saigon Co.op also opened its third Sense City shopping centre in the southernmost city of Ca Mau. The centre has been invested with capital of US$12.3 million. The first two Sense City developments are also in the Mekong Delta region, one in Can Tho city and the other in Ben Tre province. It is expected that by late this year, Saigon Co.op will open the US$2.27 million Co.op mart Chu Se in the Central Highlands province of Gia Lai. This is a joint venture project between Saigon Co.op and Gia Lai Trade JSC. On September 1, Korea’s leading distributor, DHL, set up a subsidiary in Vietnam, Vietmate. This development comes after a year of exploring Zalo’s e-commerce potential for distributing Korean products in Vietnam. According to the Korea Chamber of Business in Vietnam (KorCham), Vietnam’s retail and consumption markets are strongly ascending, with an ‘ideal potential’ eyed by foreign firms, including Korean ones. KorCham’s vice president Hong Sun said, “It is because Vietnam’s retail market remains truly underdeveloped. Under surveys, the country’s modern retail ratio currently occupies only nearly 30% of Vietnam’s total retail revenue. Meanwhile, Vietnam is witnessing a golden population structure, with 42% aged under 25, in addition to attractive investment incentives. “One of the other key reasons behind climbs in Vietnam’s foreign retailers is that the country is ranked second out of the 10 most attractive retail markets in Asia,” he stressed. According to KorCham, over the past few years, foreign firms are finding ways to enter Vietnam’s retail market via mergers and acquisitions with local firms, such as between CJ and Cau Tre, Lotte and Bibica, Masan and Vissan, F&N and Vinamilk, TCC and Metro Cash & Carry, Vingroup and Ocean Retail, and between Central Group and Casino Group. “It is notable that many large industrial conglomerates of Korea such as Samsung, LG, Lotte, CJ, and Daesang Corp intend to invest much more into Vietnam-especially after the Korea-Vietnam Free Trade Agreement took effect in December 2015,” Sun said. Since 2015, Vietnam’s government has allowed the establishment of wholly foreign-invested retail firms in the country. Under ASEAN Free Trade Area commitments, the import tariffs of about 10,000 types of goods will be removed by next year among ASEAN member nations. “This will also offer ideal opportunities for foreign retailers to penetrate Vietnam,” Sun said. VIR |
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Article 7
HSBC: Easily-achievable credit growth may turn risky A 21 per cent credit growth target could be easily achieved, given the current pace of credit growth and the rate cuts in July, but the misallocation of credit towards less productive industries, such as real estate and State-owned enterprises (SOEs), at the expense of small and medium-sized enterprises (SMEs), will eventually affect credit quality, HSBC said in its latest report.  Prime Minister Nguyen Xuan Phuc has been calling for an increase in the credit growth target from 18 per cent to 21 per cent in the hope of reaching the government’s 6.7 per cent GDP target for 2017. After the economy grew at just 5.7 per cent in the first half and in light of already high public debt, Vietnamese officials are signaling that they aim to achieve higher growth via the credit channel. In a surprise decision, the State Bank of Vietnam (SBV) cut its refinancing rate by 25 basis points to 6.25 per cent, alongside simultaneous cuts to other rates. Government expenditure has been on watch due to rising public debt, which is nearing the government’s self-mandated limit of 65 per cent of GDP. An SBV survey right before the rate cut revealed that credit growth for 2017 was expected to reach just 16.3 per cent, which is lower than the central bank’s original 18 per cent target. This is not to say that credit growth has been slow. The pace of Vietnam’s credit growth has continually increased over recent years, with first half growth at its fastest for six years. Assuming growth over the remaining months remains exactly in line with last year’s result, HSBC believes credit growth should reach 19.3 per cent by year-end, while the SBV’s rate cuts in July should also push up the pace of credit growth toward the new target of 21 per cent.  Risky business It’s worth noting, however, that rapid credit growth may create new risks for the banking sector, especially if it is placed in less productive industries. For instance, real estate-related sectors still appear to be contributing the most to total credit growth, despite their declining contribution in recent months. The country’s real estate sector, which sank after a bubble in 2006-2008, was one of the primary reasons for a rise in non-performing loans (NPLs) and the country’s banking sector crisis in 2011. Both the International Monetary Fund and the World Bank have noted in recent studies that SOEs are absorbing a disproportionate amount of credit in the Vietnamese economy at the expense of SMEs. An empirical study from the IMF also showed that SOEs borrow at lower interest rates than private firms, enabling weak SOEs to access bank funding to avoid shrinking their balance sheets. Meanwhile, a World Bank survey of Vietnamese enterprises showed that only 29 per cent of small enterprises (1-20 employees) have an active credit line, with SOEs and large domestic companies taking the lion’s share of credit in the market. The data thus suggests that high credit growth alone is not enough to lift Vietnam’s economic growth.  The misallocation of credit and the crowding out of private investments may weigh on GDP growth and increase the risk of future NPLs if left unchecked. In addition, the decline of the NPL-to-total-loan ratio in recent years somewhat belies the true level of problematic loans in the economy. “Part of the reduction in NPLs is due to transfers to the Vietnam Asset Management Company (VAMC), where the underlying credit risks of such loans have not been fully eliminated,” HSBC economist Mr. Noelan Arbis noted. Positive signs  At the very least, the government seems to be aware of the importance of containing credit growth in less productive industries. Since the end of August, it has asked banks to restrict lending to the real estate sector, among others, to stem low-productivity lending. Official data also suggests that the trade, transportation, and telecommunications sectors have been larger contributors to credit growth since the beginning of the year, which is a positive development and may help improve the domestic industry’s export competitiveness. Moreover, the government has recently enacted new measures that make it easier for banks and the VAMC to repossess collateral in the event of borrowers’ default, increasing their power to recover assets from NPLs. Ongoing SOE equitization and reforms also remain crucial to levelling the playing field for credit access, as it could help divert credit away from supporting weak SOEs and to helping boost private sector investments. “As we have previously noted, this is an area where there has been growing momentum as non-State investments have recently caught up to State investments in percentage of total investments in the economy,” Mr. Arbis said. Overall, supporting economic growth through the credit channel is a reasonable strategy given the rising role of private consumption and non-State investments. Moreover, rising public debt may be an impediment to increased government spending in the future. However, the quality and allocation of credit, in addition to resolving existing NPL issues, are crucial to ensuring that increased credit growth translates to higher and more sustainable growth in the future. VN Economic Times |
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Article 6
BUSINESS IN BRIEF 11/9 Vietnam to resume importing distillers dried grain from the US The Vietnam government has authorized the resumption of imports of distillers dried grains (DDGS) from the US, a co-product of ethanol production used as a key ingredient in animal feed. Imports were suspended last December after quarantine pests were detected in a shipment of DDGS, the US Trade Representative and Agriculture Department said in a statement issued Wednesday, September 6. Prior to the suspension, Vietnam was the third-largest market for US DDGS, with exports valued at more than US$230 million in 2016. The resolution of this issue paves the way for increased corn and wheat shipments, which were restricted due to previous treatment requirements, according to the statement issued by the two US agencies. Inflation rate rises in August but stays within target The inflation rate in Vietnam for August quickened from that of July to 3.35%, according to a statement issued by the General Statistics Office. The increase, said the GSO, was largely due to rising costs for healthcare, medicine and pharmaceuticals after the government raised the prices for medical services in several provinces. In addition, transport costs in August jumped from July as global oil products prices rose while food costs climbed as pork and vegetables became more expensive, the GSO statement said. The country's annualized average inflation rate for 2016 stood at 2.66%, well within line of the Vietnam government’s target of keeping the consumer price index below the 5% threshold. Poultry at top of livestock feed industry pecking order The poultry market in Vietnam is the leading growth segment of the livestock feed industry, said experts at a recent forum in Hanoi discussing the opportunities for domestic sector businesses. With the advent of globalization and rise in the standard of living of consumers in the Southeast Asian country, companies are expanding in the market with improved products and wider range of options, said Hoang Thanh Van. Mr Van, who heads up the Animal Breeding Department at the Ministry of Agriculture and Rural Development, noted that poultry is the most rapidly growing of all protein dietary sources by far outperforming pork, beef and fish. This in turn, he added, creates vast opportunity in the poultry feed segment for domestic sector companies. The rising family per capita income of households and widespread poultry diseases that create a more limited supply around the globe are the major driving factors of the poultry feed market in Vietnam. In addition, the growth of domestic and international fast service restaurants throughout the country has elevated demand for quality protein products and in turn has contributed to the rising need for poultry feed in the country. Rising family household incomes has also spawned an increase in a shift in eating habits so that families are now eating away from home much more often than in the past— and at higher end restaurants that demand premium quality meat, poultry and fish. Food manufacturers are also now starting to more closely coordinate with the factory farmers to direct them towards higher yield of poultry thereby increasing their earnings ratios, more commonly referred to as return on investment or ROI for short, said Nguyen Thanh Son. Mr Son, who is the head of the National Institute of Animal Husbandry, said that as a result, there are ample opportunities for domestic sector companies to get into this rapidly expanding scientifically based segment and compete on an equal footing with foreign multinationals. The various type of poultry feed additives available in the Vietnamese market consists of antibiotics, vitamins, antioxidants, amino acids, feed enzymes and feed acidifiers, said Mr Son. The global regional segmentation of the poultry feed segment includes North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The Asia Pacific, which includes Vietnam, is the largest market followed by North America. Based on type, the poultry feed market can be segmented as broilers, layers, turkey and others. In Vietnam, broilers are the most preferred category and antibiotics fall under the largest category under the feed additives segment. Top quality poultry feed, said Mr Son, is required to increase the feed conversion ratio by improving gut micro flora thereby enhancing animal health. It also maintains animal health by preventing diseases among them. Domestic sector manufacturers looking to get into the segment must concentrate more on marketing and selling in the developing markets in countries such as Vietnam, India, Indonesia, South Africa, Lebanon and Turkey. These markets offer greater opportunities to increase revenue and sales with higher per capita expenditure on quality food. Moreover, it is a proven fact that countries going through periods of rising per capita income offer greater opportunity. It is generally accepted as fact that at per capita income rises, people tend to consume more and higher quality meat, poultry and fish protein, said Nguyen Van Giap from the Southern Centre for Agriculture Policy and Strategy This in turn drives demand for top quality feed additives. Numerous authorities, said Mr Giap, have forecast that the poultry feed market in Vietnam is expected to grow at healthy compound annual growth rates as high as 20% through 2020, making this a golden opportunity for domestic businesses desiring to get into the market. Developing logistics service in Vietnam Vietnam’s logistics services - freight forwarding, transportation, and inventory services - began to develop in the 1990s. Logistics has now become an important economic sector in Vietnam. In the next decade Vietnam could reach an export-import turnover of US$200 billion per year. Vietnam earns US$22 billion a year from logistics services. The sector’s annual growth rate has been 16 to 20% in recent years. According to World Bank rankings, Vietnam ranks 64th out of 160 countries in logistics development and fourth in ASEAN after Singapore, Malaysia, and Thailand. Logistics is one of Vietnam’s fastest growing and most stable services. Recent statistics from the Vietnam Logistics Association show that more than 1,300 logistics enterprises are now operating in Vietnam, including foreign-invested firms. Most logistics service providers in Vietnam are small or medium-sized enterprises. Major firms like Transimex Saigon Corporation, Sai Gon Newport Corporation, Gemadept Corporation, and Transport and Chartering Corporation (VIETFRACHT) specialize in freight forwarding, loading, and uploading mainly in Ho Chi Minh City and Hanoi. There are 25 multinational enterprises operating in these areas. The rest are domestic small and medium-size enterprises and mainly work for international companies. Logistics service providers in Vietnam have set up business relations with the US, the EU, ASEAN, Japan, China, and the Republic of Korea. In recent years, logistics has played an increasingly important role in economic development and international economic integration. Phuong Lan, General Director of the Amerasian Shipping Logistics Corporation (ASL), said “Logistics is a support division of the import and exports sector. When an economy grows, with an increasing volume of imports and exports, the workload of the logistics industry will also rise. Most logistics companies in Vietnam are small or medium-sized enterprises. But since Vietnam joined the WTO, the majority of Vietnamese logistic enterprises, which are mostly young, dynamic, and quickly adaptable companies, have grown.” According to the Vietnam Maritime Administration, shipping is the most important area of logistics. But Vietnamese enterprises handle just 18% of the total import/export volume. The rest is done by foreign businesses. Tran Thanh Hai, deputy head of the Import-Export Department of the Ministry of Industry and Trade, said Vietnam is poised for a logistics breakthrough. “First, we need to improve the legal framework in line with the state management mechanism and adopt policies that support the industry’s growth. Second, it’s important to develop transportation infrastructure - bridges, roads, railway stations, ports, warehouses, and logistics centers," Hai emphasized. The government recently approved an action plan to enhance the competitiveness and growth of logistics services in Vietnam by 2025. DEEP C leads port JV for Quang Ninh Russia’s private leader in port development and operation, The Seaport of Azov, and the DEEP C consortium headed by leading Belgian port, industrial zone, and green energy group Rent-A-Port have agreed to develop a state-of-the-art ecological industrial zone and port complex in Quang Ninh. deep c leads port jv for quang ninh hinh 0 he establishment of a Vietnamese-Russian industrial manufacturing hub in northern Vietnam is expected to speed along a new wave of Russian investments in Vietnam as a result of recent high-level governmental commitments to boost the two countries’ investment and trade in the near future. September 8 marked a milestone for co-operation ties between Quang Ninh authorities, Tien Phong Industrial Zone JSC – in which DEEP C consortium is a major shareholder – and The Seaport of Azov. The parties agreed to seek the central government’s approval to transform an area of 100 hectares in Quang Ninh’s South Tien Phong region into a hub for industrial manufacturing and port operations along the Chanh River. The signing of the memorandum of understanding (MoU) was made on the sidelines of the 20th Session of the Vietnam-Russia Intergovernmental Commission on Trading-Commerce and Science-Technology Cooperation in Ho Chi Minh City, which saw the participation of approximately 150 Vietnamese and Russian businesses. According to the MoU, the development of the Vietnam-Russia Industrial Complex within the $128 million Tien Phong Industrial Zone is expected to kick off swiftly if Vietnamese authorities give their go-ahead to the project soon. The Seaport of Azov started investment in Quang Ninh in 2016. The intention of the partners is to equip the Vietnam-Russia Industrial Complex with a liquid jetty and a general cargo port, as a continuation of their year-plus of co-operation. The complex will be developed in a location between the international deepwater seaport of Lach Huyen in the northern port city of Haiphong and the shallow Chanh River in Quang Ninh. This would enable all manufacturers based in the complex to transport their products via an inland waterway in order for them to be able to reduce the number of trucks on the road. “This is a great opportunity to present The Seaport of Azov’s commitment to invest in Vietnam. Our ultimate aim for this strategic co-operation framework is to attract Russian companies to invest and expand their business in Vietnam in general and in northern regions like Quang Ninh in particular,” said Andrian Sinebok, chairman of the Board of The Seaport of Azov, at the signing ceremony. DEEP C and The Seaport of Azov’s pipelined industrial zone and port complex coincides with investment from Russia to Vietnam hitting a downturn. Statistics show that in the first eight months of this year, Russian businesses registered to invest roughly US$1.026 billion in 114 valid projects in Vietnam. The deal is also a positive result of the partnership agreement between Vietnam and Russia signed at the end of June. Vietnamese President Tran Dai Quang and Russian President Vladimir Putin agreed on investing more than $10 billion in both countries in the coming years. According to Marc Stordiau, Rent-A-Port’s CEO, the signing of the MoU represents the strong business relationship of Rent-A-Port and The Seaport of Azov and a 20-year friendship between the global businesses. For Vietnam, this is the logical continuation of the previous co-operation between DEEP C consortium and The Seaport of Azov in Euro Jetty JSC. The first investment of Euro Jetty JSC was the existing liquid jetty - one of the biggest of its kind in northern Vietnam - in Haiphong’s Dinh Vu/DEEP C Industrial Zone, which has attracted more than 70 projects invested by multinational companies from Japan, Germany, the US, Vietnam, Singapore, and South Korea, with a total investment amount of more than $3 billion. Stordiau told VIR that The Seaport of Azov is operating a port in Russia in a location similar to Tien Phong, and thus this latest business venture of the Russian partner with its port experience and the DEEP C consortium will likely be successful. “We will continue working together with the Vietnamese authorities so as to realise a strategic plan to develop the maritime access to Tien Phong Port of Quang Ninh,” Stordiau said. The Seaport of Azov is located on an intermodal corridor intended for movement of cargo from north to south, and also handles freight from and to the Balkan-Danube and Mediterranean regions. It is the main gate connecting the Mediterranean Sea with the internal waterway system of Russia and the Caspian Sea. It allows the delivery of cargo to the centre of Russia, to the Ural Mountains, and Central Asia. Rent-A-Port is the port-related investment and management arm of the Belgian holding company Ackermans & van Haaren, which was founded in 1885 and is one of the largest listed holding companies in Belgium, with assets worth €2.7 billion ($3.2 billion). Rent-A-Port operates as an engineering and investment company that analyses, designs, constructs, develops, and manages port, logistic, and marine infrastructure, as well as industrial zones worldwide. Some examples are the port of Antwerp (Belgium), the second-busiest port in Europe; the port of Kampen (Netherlands); the port of Duqm (Oman); and the port of Messaieed (Qatar). In Vietnam, Rent-A-Port’s investments are in Dinh Vu Industrial Zone JSC with three DEEP C Industrial Zones covering 3,000ha in Haiphong, in Tien Phong Industrial Zone JSC with two DEEP C Industrial Zones in Quang Ninh, in green energy and water treatment projects in Haiphong and Halong Bay, and in co-operation with the Vietnamese government in wind- and solar-driven micro-desalination for agricultural production in the Mekong Delta region. “Rent-A-Port has already invested an amount in excess of $200 million and has now also committed to invest an additional $250 million in various industrial zone and port complexes in Vietnam in the next 10 years,” Stordiau told VIR. Vietcombank to pay $128.9 million as dividend The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) will make an 8 per cent dividend payout based on the bank’s performance in 2016. The bank had previously targeted a 10 per cent dividend payment for its performance in 2016. Vietcombank will pay shareholders VND800 (3.5 US cents) for every share they own. With nearly 3.6 billion shares being listed on the HCM Stock Exchange, the value of the dividend payout will reach nearly VND2.9 trillion ($128.9 million). The bank will finalise the list of beneficiary shareholders on September 29 and make the dividend payout on October 16. According to annual reports released by Vietcombank, the largest lender by market capitalisation, while its post-tax profit kept increased every year from VND4.42 trillion in 2012 to VND6.85 trillion in 2016, its dividend payout rate declined during the period from 12 per cent to 8 per cent. The State Bank of Viet Nam is currently the largest shareholder of Vietcombank, owning more than 2.77 billion shares, or 77.1 per cent of the bank’s charter capital. The second-largest shareholder is Japanese Mizuho Bank Ltd, which owns nearly 540 million shares, or 15 per cent of the bank, while other shareholders own total 7.89 per cent of the bank’s capital. Thus, the State will be able to receive VND2.2 trillion from Vietcombank once the bank completes its dividend payout while Mizuho Bank Ltd will collect VND432 billion. By the end of 2016, total amount of outstanding loans and raised capital increased by 19 per cent year-on-year each to reach VND460.8 trillion and VND600.7 trillion, respectively. The bank’s bad debt ratio fell to 1.46 per cent from 1.79 per cent at the end of 2015. Vietcombank is targeting pre-tax profit of VND9.2 trillion, an yearly increase of 8 per cent, 8 per cent dividend payout rate for 2017 and bad debt ratio below 2 per cent. The bank also plans to raise its total amount of outstanding loans and raised capital by 15 per cent and 14 per cent year-on-year to VND547 trillion and VND684.8 trillion, respectively. Carlsberg eyes at least 51% stake in Vietnam's Habeco - media Danish brewer Carlsberg is keen on increasing its stake in Habeco, one of Vietnam’s biggest brewers, to at least 51 percent, a local news website reported, citing a Habeco executive. Vietnam has one of the world’s most attractive beer markets and the biggest in Southeast Asia, buoyed by a young population that consumed nearly 4 billion litres last year. The government wants to fully divest its majority stake in Habeco as also in rival Sabeco. Carlsberg, which already owns around 17 percent in Habeco, has been discussing its priority purchase rights with the Vietnamese government, which has delayed the Habeco sale. Sabeco, in which the government owns a 90 percent stake, has also seen interest from foreign players such as Dutch brewer Heineken and Japan’s Kirin. Vietnam’s Steering Committee for Enterprise Innovation and Development, which oversees the country’s privatisation drive, said last month it aimed to “completely resolve problems in strategic cooperation” with Carlsberg, and inform the prime minister about the results by Nov. 15. Habeco is still in talks with the Danish company on the stake sale, An Ninh Thu Do newspaper quoted Habeco’s deputy chief Vuong Toan as saying. The media report also quoted Toan as saying that foreign companies are not allowed to own more than 49 percent of Habeco due to foreign ownership limits. Carlsberg said on September 8 it would not comment on “rumours”. Last month, the company said it held “several constructive meetings with the Vietnamese government to discuss the privatisation process of Habeco”. “We now see good progress in these meetings, and will continue these discussions with the Vietnamese government for the next steps,” Carlsberg Chief Executive Cees ’t Hart said at a conference call after its second-quarter earnings on August 16. Can Tho seeks link with Australia Mekong Delta’s Can Tho City hopes to expand co-operation with overseas partners, including those from Australia, to improve production capacity, as it sets out to become a regional pioneer in hi-tech agriculture. The statement was made by deputy chairman of the municipal People’s Committee Truong Quang Hoai Nam on Thursday at a meeting with Rob Gordon, CEO of food producer and exporter Sunrice from Australia, during which they discussed ways to boost the city’s rice production and exports. Can Tho lies in the heart of the Mekong Delta, Viet Nam’s largest rice basket, and exports more than half a million tonnes of rice worth US$300 million on average annually, Nam said. The region’s rice exports were estimated at more than 400,000 tonnes in the first eight months of 2017, an increase of 3.9 per cent from the same period last year, earning $190.8 million and up 10.1 per cent year-on-year, he said. The city aims to lead the region in hi-tech agriculture to reduce costs and enhance productivity and quality of farm produce, he said, adding that it is looking forward to fostering ties with foreign companies, particularly from Australia, to access new agricultural technologies and more markets in Europe, North America and North Asia. On his part, Gordon said Viet Nam is capable of gaining a larger market share in these markets thanks to its competitively priced rice compared with rivals in the region, with Vietnamese rice selling for $300-400 per tonne less than rice from Thailand. He suggested that his firm will assist Can Thơ in developing supply chains in rice farming. He also said the firm is interested in some local hi-tech agricultural projects. Nam welcomed Sunrice’s co-operation with Can Tho on the rice trade market’s development and pledged that the city’s authorities at all levels will create favourable conditions for Sunrice invest in the city. Nam hoped that Sunrice, being one of the largest global rice distributors, will be the bridge connecting trade between Vietnamese and foreign food enterprises in the future, thereby contributing to elevating the country’s position in the world market. Ninh Thuan’s orchard model a success The central province of Ninh Thuan is developing eco-tourism activities by opening up farmers’ fruit orchards to visitors, according to the province’s Department of Culture, Sports and Tourism. About 800 hectares of many kinds of fruit, including mangosteen, durian, and rambutan, are grown in Lam Son Commune in the province’s Ninh Son District. . Visitors can pick the fruit for a low price of VND10,000 (US$0.45) per kilo for rambutan, VND35,000 (US$1.5) per kilo for mangosteen and VND40,000 (US$1.8) per kg for durian. About eight years ago, the orchard owners began inviting friends during the harvest season to introduce them to fruits grown in the provinces of the Cuu Long (Mekong) Delta. Since the fruits cultivated in Ninh Thuan Province have a much higher quality than others planted in the Mekong Delta, and a higher productivity rate, farmers now earn about three times more than they made from rice or corn. Phan Huu Thanh, a farmer from Lam Son Commune in Ninh Son District, said he started a fruit orchard in 1990 and now has about 2.3ha with 370 plants of various kinds of fruit, including durian, mangosteen, green grapefruit and rambutan. He earns about VND150 million ($7,000) per year. Most orchard owners collect an average of VND40,000 ($1.8) per visitor, he said, adding that most visitors book a day or week before the harvest season. There is no need to buy a ticket, but visitors must pay for the fruit they pick. To protect the orchard from damage, Thanh receives no more than 50 visitors a day. Nguyen Thi Hoa, from Da Lat, said her family visits Thanh’s fruit orchard every harvest season to pick fruit and enjoy chicken dishes made with fruit. Lam Son Commune has about 210 households cultivating fruit on a total of 236ha that once was used to grow rice or corn. Truong Thanh Quyen, chairman of the commune’s People’s Committee, said the fruit orchards had improved the lives of local farmers, who have been encouraged to expand their orchards. Besides fruit orchards, the province is developing the cultivation of vineyard grapes for winemaking. About 400 households cultivate grapes on a total area of 180ha in Ninh Hai District, according to Luu Xuan Hai, the deputy chairman of Ninh Hai District’s Vinh Hai Commune. Chau Thanh Hai, director of the province’s Department of Culture, Sport and Tourism, said the department was working with other districts and cities in the province to expand the fruit orchard model. Leather, shoe exports top $9.6b Leather and footwear exports in the first eight months topped US$9.64 billion, a year-on-year increase of 12.2 per cent, according to the Ministry of Industry and Trade. They went to 100 countries, with the US, EU, Japan, China, and South Korea being the main buyers, it said. Hanoi mulls 6 cross-river projects worth US$2.5bn The administration of Hanoi is seeking government approval for its development of six projects crossing the Red River and Duong River, costing a combined VND57 trillion (US$2.51 billion). The first one is the Tu Lien Bridge, which runs three kilometers across the Red River and connects Hanoi’s Tay Ho and Dong Anh Districts. The bridge is part of a nine-kilometer extension of the Hanoi – Thai Nguyen Expressway. The second project includes the construction of the Thuong Cat Bridge and its access roads, which stretch 5.2 kilometers from an intersection with Belt Road 3 in Bac Tu Liem District to the Bac Thang Long industrial zone in Dong Anh. Tran Hung Dao River Tunnel is the third project, running 3.1 kilometers from the border of Hoan Kiem and Hai Ba Trung Districts to Long Bien District on the other side of the Red River. In the fourth project, the second phase of the existing Vinh Tuy Bridge will be constructed, fully linking Vinh Tuy Ward in Hai Ba Trung District to Co Linh Street in Long Bien District. The Duong Bridge, measuring 1.4 kilometers in length, will be built across the Duong River, connecting Long Bien’s Duc Giang Ward with Yen Vien Town in Gia Lam District. The final project will see the construction of the 5.4-kilometer Giang Bien Bridge and its access roads, running through Long Bien and Gia Lam Districts. According to Hanoi’s administration, the proposed bridges and river tunnels would establish an inter-connection among its belt roads, and speed up the urbanization of its districts situated to the north of the Red River. Hanoi has also requested government permission to employ special mechanisms in calling for private investments in these projects. Foreign companies accounted for more than 81 per cent of the figure. The Viet Nam Leather, Footwear and Handbag Association (Lefaso) said local companies lack the resources to expand production or market, while foreign-invested firms have for many years invested to expand to capitalise on free trade agreements that Viet Nam had signed or was set to sign, it said. So the latter’s exports keep increasing, it added. Though intra-ASEAN exports enjoy zero tariffs, leather and footwear exports to member countries remain modest compared to the sector’s potential. The exports were worth less than $400 million last year, going mainly to Singapore, Malaysia, Thailand, and the Philippines. According to trade experts, footwear companies do not treat ASEAN as a key export market. But according to Lefaso, ASEAN is a hard market to crack since many other members are also strong players, especially Thailand and Indonesia. Besides, many put up technical barriers to protect their domestic production, the ministry said. Experts said that this year the world economy is expected to be better than in 2016, and China would continue to reduce investment incentives for textile and footwear to focus on high-tech sectors, meaning orders for shoes and bags would continue to move from China to Viet Nam. Nguyen Duc Thuan, Lefaso chairman, said production and export of leather and footwear have been good this year. The association forecasts exports to be worth $17.8-18 billion this year, an increase of 10 per cent over last year, he said. Vietnamese tea exporters enjoy robust achievements Vietnam’s tea exports in the first eight months of the year reached 90,000 tonnes, earning US$142 million, up 12% in volume and 11.8% in value compared to the same time last year, according to the Vietnam Tea Association. Tea was sold at nearly US$1,570 per ton on average, down 1.5% from last year. Pakistan imported the most tea from Vietnam. Other top tea consumption markets included India, the United Arab Emirates and Taiwan (China). Tea exporters said that there is an abundance of raw materials thanks to safe cultivation applied in all tea zones nationwide. APEC forum agrees to foster SMEs The digital economy is driving growth nowadays, and it is getting hard for business owners to do cross-border trading or access the global market if they do not embrace digital transformation, the 2017 APEC Online-to-Offline (O2O) Initiative Forum heard in HCM City on Sunday. Pei-Ti Hu, deputy director general, small and medium enterprise administration at the Chinese Taipei Ministry of Economic Affairs, said in her opening speech: “Chinese Taipei aims to enhance SMEs digital competitiveness and resilience with co-operation between the public and private sectors.” SMEs are the engine of economic growth and prosperity, and over the past few years they have been dramatically transformed by technology, she said. “The digital revolution and innovation have totally changed the way we all do business. SMEs now have the ability to access customers by using the internet. “However, digitisation now brings SMEs not only opportunities but also challenges such as more exposure to cyber ethics. Many SMEs remain unprepared for [cyber ethics] and awareness of [digital resilience] remains low.” Policy makers from APEC economies, owners of e-commerce platforms, incubators, accelerators and experts were encouraged to support SMEs/startups in fully utilising the opportunities created by digital technologies. The APEC O2O initiative also aims to raise awareness of digital resilience among SMEs/startups since the development of digital technology also brings more exposure to cyber threats. APEC realises that cyber threats have become a growing concern and crucial challenge to all firms regardless of size and therefore it is vital to prepare SMEs/startups to defend themselves from those threats. “It is only when SMEs fully understand the opportunities and challenges of digital transformation they are able to unleash their potential for sustainable, innovative, inclusive and quality growth towards a shared future,” Hu said. The one-day forum attracted around 100 stakeholders. There was a conversation keynote titled “O2O Business: Opportunities and Challenges of Modernizing SMEs to Go Global”, an innovation dialogue titled “Unleash the potential of SMEs through digital transformation for a Shared Future”, an APEC innovation study and a board meeting where experts offered advice and guidance on business plans presented by start-ups. Tra Vinh lures 290 million USD investment this year The Mekong Delta province of Tra Vinh approved five investment projects with a total capital of 2,226 billion VND (98 million USD) in August, according to the provincial Department of Planning and Investment. They included two CoopMart supermarkets, a fertilizer production project, and two projects on building infrastructure system in Cau Quan and Co Chien industrial parks. Since the beginning of this year, Tra Vinh has drawn 33 projects, including four foreign projects worth 133 million USD and 29 domestic projects with a combined capital of 3,562 billion VND (157 million USD). According to Cao Dang Linh, Vice Director of the department’s Centre for Investment Promotion and Business Support, the province is considering the approval of two other projects on petrol trading and shrimp varieties production, along with the adjustment of a project and verification of 11 others. Tra Vinh is home to 193 valid projects, including 36 foreign-invested projects worth 3.09 billion USD, and 157 domestic ones worth 100.15 trillion VND (4.4 billion USD).- Vietnam, Russia gear towards 10 billion USD trade in 2020 Vietnam and Russia have agreed to effectively implement the Vietnam-Eurasian Economic Union (EAEU) Free Trade Agreement (FTA) in order to create breakthroughs in economic, trade and investment ties between the two countries, gearing towards bilateral trade of 10 billion USD in 2020. The consensus was reach during the 20th meeting of the Vietnam-Russia Intergovernmental Committee for Economic-Commercial and Scientific-Technological Cooperation in Ho Chi Minh City on September 8. The event was co-chaired by Deputy Prime Minister Trinh Dinh Dung and his Russian counterpart Igor Ivanovich Shuvalov. In his opening remarks, Deputy PM Dung highlighted the long-standing friendship and the comprehensive strategic partnership between Vietnam and Russia, which, he said, has developed fruitfully across fields, contributing to national construction and development in each country. The annual meeting of the committee aims to materialise political commitments and determination of the two countries’ high-ranking leaders, by putting forth specific and inclusive solutions in order to advance the bilateral relationship in a more effective and pragmatic fashion, he said. The Deputy PM noted that bilateral trade has regained its growth rate, especially after the Vietnam-EAEU FTA took effect, to reached nearly 2 billion USD in the first seven months of 2017, up 27 percent year-on-year. As of June 2017, Russia had 115 foreign direct investment (FDI) projects worth 1.05 billion USD in Vietnam, while Vietnam invested in 18 projects valued at 2.4 billion USD in Russia, Dung said, adding that the number and quality of projects on investment, science and technology have been increased. At a press conference following the meeting, Deputy PM Dung announced that the two sides had agreed on concrete measures to step up cooperation in a wide range of areas, from economy, trade, agriculture, energy, mining, finance and banking to education-training, science-technology, transport, health care, construction, labour, culture, sports and tourism. As part of efforts to boost bilateral trade, the two sides will increase the export of Vietnam’s agro-forestry-fishery and consumer products to Russia, while continuing to work with each other to improve the quality of exports, ensuring product quality and food hygiene and safety. Dung said the two sides agreed to accelerate the implementation of joint projects on industry, energy, oil and gas, and infrastructure construction, and consider possibilities for partnering in urban railway and metro projects. In the field of energy, the two sides hailed the operation of Vietnam-Russia joint ventures in oil and gas exploration and exploitation in Vietnam’s continental shelf and Russia’s territory. They agreed to cooperate in building and upgrading thermo-electric and hydro-electric plants in Vietnam. Russia’s First Deputy PM Igor Ivanovich Shuvalov said he is satisfied with the outcomes of the 20th meeting of the intergovernmental committee, adding that bilateral trade remains modest. He said Russia will pay attention to the import of Vietnamese seafood and agricultural products and is willing to establish joint ventures specialising in farm produce with Vietnam. The Russian official also held that the two countries boast potential for cooperation in industry such as auto assembly, and education-training. Russian enterprises wanted to join in the construction of underground railways in Hanoi and Ho Chi Minh City. He expressed his belief that Russia will continue to be Vietnam’s important partner and wished that Vietnamese enterprises will gain a firm foothold in the Russian market. Samsung Securities deepens Vietnam inroads Aiming to accelerate inroads into the Vietnamese stock market to keep pace with compatriot competition who are already present in Vietnam, Samsung Securities decided to acquire stakes in local asset management companies, one of which is Dragon Capital. According to newswire Business Korea, Samsung Securities will co-operate with Caldera Pacific, a private equity fund from Hong Kong to buy a 40% stake in Dragon Capital to become the second-largest shareholder. Samsung Securities will hold 10% and Caldera Pacific 30 per cent. It is also known that Samsung Securities will shell out considerable funds for the acquisition. "The opening of an office or a corporation, a general overseas advancement form, takes a lot of time from the input of money to the results. But the acquisition of stakes in a local asset management company allows a company to efficiently secure a sales network and infrastructure," an official familiar with the acquisition said. Samsung Securities selected a different way than its countrymen to enter Vietnam. Notably, instead of opening representative offices or establishing subsidiaries in Vietnam, Samsung Securities aims to acquire stakes in a local asset management company. Market experts forecast that acquiring a stake in Dragon Capital is the beginning of Samsung Securities’ strategy to enter the Vietnamese stock market and the company may additionally acquire stakes in other companies. Currently, five Korean securities firms are present in Vietnam with seven representative offices and subsidiaries, namely Mirae Asset Daewoo, NH Investment & Securities, Korea Investment and Securities, Golden Bridge, and Shinhan Financial Investment. Dragon Capital is the largest asset management company in Vietnam. It has poured capital in Vinamilk, FPT Retail, PV Gas, Vietjet Air, Hoa Phat Group, and VPBank, among others. The Vietnamese company also played a role as a bridgehead for capital from Hong Kong to enter Vietnam. Vietnam-Japan financial leasing joint venture makes debut BIDV-SuMi TRUST Leasing Co., Ltd (BSL) officially opened in Hanoi on September 8, becoming the first financial leasing joint venture between a Vietnamese bank and a foreign financial institution in Vietnam. BSL is a joint venture between the Bank for Investment and Development of Vietnam (BIDV) and Sumitomo Mitsui Trust Bank (SuMi TRUST) of Japan, which was given a licence by the State Bank of Vietnam (SBV) on April 12, 2017. Converted from BIDV Financing Leasing Company, Ltd., a 20-year experience domestic leasing company established by BIDV, BSL has 895.6 billion VND in chartered capital, half of which belongs to BIDV and 49 percent to SuMi TRUST. Having business presence in Hanoi, Ho Chi Minh City, Da Nang and close connection with 190 branches of BIDV nationwide, BSL is ready to provide leasing products to both Vietnamese and FDI companies to support the sustainable growth of their production, administration and sales activities. Nguyen Dong Tien, SBV Deputy Governor, said he believes that BSL will create an impulse for financial leasing activities in Vietnam. BIDV and SuMi TRUST have cooperated with each other since 2013. At the end of April 2016, the two sides agreed to join hands in the financial leasing sector. As a result, BSLwas established in Tokyo, Japan, in June 2017, in the witness of Vietnamese Prime Minister Nguyen Xuan Phuc. Vietnam Airlines four-star status reaffirmed The national flag carrier Vietnam Airlines has maintained a Skytrax four-star rating for two consecutive years. Skytrax is the world’s leading airlines and airport rating organization. “Over the past few years, Vietnam Airlines has made great efforts in developing an international and domestic flight network, keeping a convenient and punctual flight schedule and efficiently operating some of the most modern aircraft in the world,” Duong Tri Thanh, President and CEO of Vietnam Airlines, said. The excellent achievement of being recognized as a four-star airline for two straight years by Skytrax is a great honour and we are proud to provide millions of passengers with outstanding service quality as well as promote the image of Vietnam around the world, he said. In the first eight months of this year, the airline scored 90.2 percent on the on-time performance index (OTP), surpassing the international average. Channel News Asia: Vietnam’s strong growth is likely to persist Vietnam’s strong growth is likely to persist thanks to its young, ambitious, and business savvy population, said an article published by Singapore-based Channel News Asia. The commentary, titled “Ambitious and smart, youths in Ho Chi Minh City are building Asia’s Silicon Valley” by Stephanie Jones and Rafael Masters, said that Vietnam, for the last few years, has seen remarkably strong, continuous growth, averaging 6.15 percent each year since 2000. Urbanisation and a growing middle class are fuelling economic growth and driving the creation of new commercial opportunities. 50 percent of the population have access to the internet and more than a third use smartphones, according to the article. At the same time, Vietnam has become increasingly attractive for new investors, and local talent is developing rapidly, even as the country has to compete against Singapore, Hong Kong (China) and other regional stars. In particular, Vietnam’s software industry is poised to become the Silicon Valley of Asia, especially through the aptly named 1.5 billion USD project Silicon City, located just outside Ho Chi Minh City. Stephanie Jones and Rafael Masters shared the view that indeed, HCM City presents itself as the jewel in the crown of Vietnam’s success story. They said as Vietnam’s largest and most progressive city, HCM City is the engine of the country’s growth. At a growth rate of 8.5 percent a year, HCM City has been transformed in the last ten years – with plans for a new airport in the pipeline in addition to a mushrooming central business district and a massive growth in waterfront developments. HCM City is also the epicentre of the start-up scene in Vietnam, where most of Vietnam’s 3,000 start-ups operate. In May 2016, early-stage venture fund 500 startups pledged a further 10 million USD to their Vietnam fund. Other venture capital companies like CyberAgent, Ventures and SeedCom are also active and investing in new firms, the writers added. HCM City has even produced one of Southeast Asia’s unicorns – game developer VNG which became the first Vietnamese technology company to hold an IPO in the US in June, and has more than 70 million users from Vietnam, Myanmar, Japan, the Republic of Korea and Malaysia on its chat app called Zalo alone. Stephanie Jones and Rafael Masters said that HCM City’s start-up scene may involve new and emerging technology, but at its core is a story about people. Over the past ten years, thousands of young, aspiring Vietnamese entrepreneurs have moved into the city to create their own start-ups – many of which are in developing tech solutions including e-commerce platforms, apps and games. Coworking spaces and cafes also have sprung up all across the city to meet the demands of a class of entrepreneurs who network frequently and work in small groups without a dedicated office space, they explained. The start-up scene owes its success in part due to the strong push by the Vietnamese government. Officials have promised financial support of 90 million USD to more than 2,000 local hi-tech start-ups, and made plans to set up innovation hubs that provide training programmes, legal consulting and networking activities to connect start-ups with universities and research centres. They stressed that but the key differentiator that makes Vietnam's start-up scene particularly vibrant is the quality of the Vietnamese people working in that sector. Vietnamese talent is internationally competitive, increasingly well-educated, mobile and tech-savvy. Vietnam has a high literacy rate of 94.5 percent and OECD studies have placed Vietnam 17th out of 65 countries on PISA tests. The Government promises to improve the academic qualifications and business capabilities of its workforce seem to be bearing fruit. Education also continues to make up 20 percent of Government spending. Vietnamese college and university students have been scoring very highly in internationally ranked tests in recent years, offering a pool of skilled labour for prospective entrepreneurs. Many young Vietnamese are also sent overseas to study and return with grand ideas of starting their own companies. An estimated 21,000 Vietnamese students attended American universities last year, the sixth largest number of foreign students in the US. Stephanie Jones and Rafael Masters said the students they have encountered in their work in HCM City are smart, bright and spunky. Unlike developed countries like Singapore, Vietnam is experiencing the dividends of a population boom. 70 percent of the population of Vietnam is under 30, and Vietnamese youths are highly ambitious and internationally-minded, they commented. They take ideas like the transport sharing economy Grab and Uber introduced, and try to implement them in a way more suited to the Vietnamese market. Young and well-educated Vietnamese born overseas are returning in droves and adding to the pool of talent. Even though Vietnam is attracting ambitious young executives from all over Asia, many say they find it hard to compete with bright and savvy local talent, according to the article. Young Vietnamese are able to focus on building strong start-ups because they also enjoy family support: Vietnamese family units typically consist of three generations living in a single house. Without a pension system, children take care of parents in old age and grandparents provide childcare and support while young parents are out working. This strong family nucleus has been a source of support and safety net for young Vietnamese executives. They can devote more time and energy to their businesses, secure in the knowledge that they can turn to their parents to manage the household and not worry about childcare. In this respect, Vietnamese talent with families have a huge advantage over those in other countries, and even over expatiates living on their own in Vietnam, they said. All things considered, Vietnam is in a sweet spot now. Its ease of doing business is on par with China and recruitment demand is up 32 percent. Strong growth is likely to persist, the article said, citing the World Bank’s statistics as saying that Vietnam’s economy could expand at an average of 6.3 percent in the next three years. With a young, ambitious and business savvy-Vietnamese population, it is not hard to see why, it concluded. Vietnamese tea exporters enjoy robust achievements Vietnam’s tea exports in the first eight months of the year reached 90,000 tonnes, earning 142 million USD, up 12 percent in volume and 11.8 percent in value compared to the same time last year, according to the Vietnam Tea Association. Tea was sold at nearly 1,570 USD per ton on average, down 1.5 percent from last year. Pakistan imported the most tea from Vietnam. Other top tea consumption markets included India, the United Arab Emirates and Taiwan (China). Tea exporters said that there is an abundance of raw materials thanks to safe cultivation applied in all tea zones nationwide. Leather, shoe exports top 9.6 billion USD Leather and footwear exports in the first eight months topped 9.64 billion USD, a year-on-year increase of 12.2 percent, according to the Ministry of Industry and Trade.| Vietnam’s leather and footwear products went to 100 countries, with the US, EU, Japan, China, and the Republic of Korea being the main buyers, it said. Foreign companies accounted for more than 81 percent of the figure. The Vietnam Leather, Footwear and Handbag Association (Lefaso) said local companies lack the resources to expand production or market, while foreign-invested firms have for many years invested to expand to capitalise on free trade agreements that Vietnam had signed or was set to sign, it said. So the latter’s exports keep increasing, it added. Though intra-ASEAN exports enjoy zero tariffs, leather and footwear exports to member countries remain modest compared to the sector’s potential. The exports were worth less than 400 million USD last year, going mainly to Singapore, Malaysia, Thailand, and the Philippines. According to trade experts, footwear companies do not treat ASEAN as a key export market. But according to Lefaso, ASEAN is a hard market to crack since many other members are also strong players, especially Thailand and Indonesia. Besides, many put up technical barriers to protect their domestic production, the ministry said. Experts said that this year the world economy is expected to be better than in 2016, and China would continue to reduce investment incentives for textile and footwear to focus on high-tech sectors, meaning orders for shoes and bags would continue to move from China to Vietnam. Nguyen Duc Thuan, Lefaso Chairman, said production and export of leather and footwear have been good this year. The association forecasts exports to be worth 17.8-18 billion USD this year, an increase of 10 percent over last year, he said. Nepal seeks tourism cooperation with HCM City Twenty-one Nepalese businesses operating in the aviation and tourism sectors recently visited Ho Chi Minh City to study potential tourism cooperation and sign agreements in this field with the locality. Nepal is home to eight of the ten highest mountains in the world, including Mount Everest, dubbed the “roof of the world,” along with many historical and religious relic sites. Therefore, the focus of the tourism cooperation will be climbing and spiritual tourism. Anil Lama, President of the Nepal Society of Travel and Tour Operators, said at an exchange programme in HCM City on September 10 that apart from exploring Mount Everest, visitors can take part in other activities like pilgrimages, boat rides and parachuting. US power company wants to invest in gas-fired power project The US-based power company AES Corporation said it wants to join the PetroVietnam Gas JSC (PV Gas) in the Son My 2 gas-fired thermal power project. The proposal was made by President of AES Vietnam David Stone during a recent working session with PetroVietnam group. PetroVietnam deputy director general Nguyen Hung Dung affirmed that the group is ready to work with US investors, including AES, in the oil and gas sector, especially gas-fired thermal power projects. The Son My 2 is one of the nine gas-fuelled power projects that the Government has assigned PetroVietnam to invest in. The project consists of three power plants using liquefied natural gas, with designed capacity of 750 MW each. Built at the Son My industry-services-gas complex in the central coastal province of Binh Thuan, the facilities are set to become operational in 2023, 2024 and 2025. The AES, which is listed in the US Fortune-200, joined shareholders from subsidiaries of Posco Energy Corporation from the Republic of Korea and China Investment Corporation to form the AES-VCM Mong Duong Power Company Limited in Vietnam. The company is known for its 1,242 MW Mong Duong 2 power plant. The coal-fired power project plant was built under a Build-Operate-Transfer (BOT) agreement and would be transferred to the government after 25 years.- Dak Lak calls for investment from Australian firms A delegation of the Central Highland province of Dak Lak, led by Vice Secretary of the provincial Party Committee Y Bier Nie, held a workshop in Sydney, Australia to call for Australian investment in the province. The event, organized with the coordination of the Australia – Vietnam Business Council (AVBC), saw the participation of AVBC members and dozens of local businesses. Dak Lak representatives took the occasion to introduce the province’s natural conditions, socio-economic situation, potential and disadvantages. Announcing a list of priority projects in need of investment, Dak Lak officials highlighted hi-tech agriculture, agricultural product processing, garment-textile, wind power, solar power, services and tourism. The province also announced incentives for investors in terms of land, taxes, favourable administrative procedures, among others. Australian firms inquired for information of the province’s key projects, focusing on the export of coffee beans and pepper, education, technology transfer, tourism and real estate. A number of Australian firms registered to visit Dak Lak and work with its enterprises to explore investment projects and environment. Previously, the delegation and VBAA also hosted a similar workshop in Melbourne. Australia is the second foreign market Dak Lak chose to promote investment, following the Republic of Korea. HCM City seeks policy research cooperation with Chinese partner Ho Chi Minh City wants to boost cooperation with the Development Research Centre of the State Council (DRC) of China in policy research and consultation. During his reception for the Centre’s Party Secretary Wang Anshun in HCM City on September 9, Secretary of HCM City Party Committee Tat Thanh Cang asked the centre to share its experience in addressing urban issues, including traffic infrastructure development, climate change adaption, and urban population pressure. He lauded the effective operation of the Linh Trung Export Processing Zone, a joint project of Vietnam and China, saying that it has lured numerous domestic and foreign investors, contributing to the city’s industrial production and economic development. For his part, Wang Anshun expressed his hope to boost cooperation with the city in urban management and building of socio-economic development targets and plans. He underlined the importance of policy research and consultation to serve national development, affirming that the cooperation between his centre and the Economic Commission of the Communist Party of Vietnam’s Central Committee will make a significant contribution to the sustainable economic development of each nation, thus consolidating the Vietnam – China friendship. Tra fish exports to US on course Despite a new US requirement that foreign exporters demonstrate their food safety control system is equivalent to American regulations, no backlog has been recorded in Vietnamese tra fish exports to that country. The US Food Safety and Inspection Service (FSIS) began applying the new regulations for Siluriformes fish on August 2, instead of September 1 as announced earlier, mandating the checking of all shipments for records, packaging and labels. Siluriformes fish include tra, basa, tre and lang fish. The US is the second largest importer of Vietnamese tra fish, receiving 22 percent of Vietnam’s total exports of the catfish. US imports of tra were worth 220.8 million USD in the first eight months of this year, up 3.3 percent over the same period last year. Only three or four Vietnamese firms have been able to export several tra products, including cut catfish, frozen catfish fillet, frozen rolled catfish and powdered fillets, to the US, said the Ministry of Agriculture and Rural Development (MARD). A report from the Vietnam Association of Seafood Exporters and Producers (VASEP) showed that the country earned 1 billion USD from the export of seafood in the first seven months of this year, a year-on-year increase of 8.2 percent. Although tra fish exports to EU states dropped 23.5 percent, new markets such as Brazil, Mexico, Colombia and Saudi Arabia were seeing steady growth. In the first eight months of this year, the production of tra fish in Mekong Delta provinces reached 815,500 tonnes, up 10 percent year-on-year. Dong Thap is the province with the largest harvest at 303,400 tonnes, up 25.4 percent over the same period in 2016. According to the head of the Dong Thap Aquaculture Product Department, Le Hoang Vu, tra fish are raised on 1,504 ha in the province, more than 809 ha of which are certified under the standards of VietGAP, GlobalGAP, Best Aquaculture Practices (BAP) and Aquaculture Stewardship Council (ASC). The province has 20 seafood processing factories with a total designed capacity of more than 467,000 tonnes per year. It has produced an estimated 180,000 tonnes of tra fish in the first eight months of this year, reaching nearly 500 million USD in export turnover. The province plans to expand its breeding area to 2,000 ha by 2020, with an output of more than 541,000 tonnes of tra fish per year. Vietnam capitalises on RoK development funding Minister of Planning and Investment Nguyen Chi Dung has visited the Republic of Korea to attend a celebration of the Korea Economic Development Cooperation Fund (EDCF)’s 30th founding anniversary. At the event, on behalf of the fund’s beneficiaries, Dung delivered a speech on how Vietnam has used international funding to fuel economic growth over the past 30 years. He also put forth a number of measures to optimize the usage for improved outcomes. While in the RoK from September 5 to 8, the minister had a series of meetings with Minister of Foreign Affairs Kang Kyung-wha, leaders of the Ministry of Strategy and Finance, and representatives of the Korea International Cooperation Agency and Export–Import Bank of Korea. At these meeting, discussions focused on measures to boost bilateral investment and trade, and effectiveness of the employment of official development assistance (ODA) and foreign direct investment (FDI) capital. As part of his visit, Minister Dung chaired two dialogues with top RoK companies, which were interested in the Vietnamese market. The RoK businesses urged continued improvement of business climate in Vietnam and stressed their intention to further expand operations in the country. Dung also held separated receptions for leaders of Samsung, LG, Huyndai Motor, and Lotte, among other RoK groups, who stated they considers Vietnam a strategic market and are committed to helping Vietnamese firms be part of their supply chains in the future. In a sideline interview with the Vietnam News Agency, the official said the visit promises to open up a new chapter in the Vietnam – Rok strategic partnership. E-commerce experts talk Vietnam’s future Some top experts in payments, e-commerce and retail gave their insights into the future of online trading in Vietnam at a recent two-day seminar in HCM City. The content and structure of Seamless Vietnam were designed to cover the entire omni-channel journey. Participants heard experts speak about digital marketing, merchandising, pricing, and in-store technologies. Others spoke about payments, staff training, multi-channel, call centres, home delivery, click & collect, supply chains, packaging, customer service, loyalty and retention, and product returns. Attendees were from major Vietnamese banks and leading e-commerce and retail giants. With a population of 95 million, the highest retail sales growth in Asia of 10.4 percent, an e-commerce market predicted to be worth 10 billion USD by 2020, and a regulatory environment increasingly opening up to foreign investment, there has never been a better time in Vietnam for senior executives from across the e-commerce eco-system to come together and discuss future strategies, partnerships and solutions. The State Bank of Vietnam kicked off the conference with a keynote address on “Moving towards a cashless society in Vietnam by 2020.” “Cashless payments have strongly increased in Vietnam recently with 65 banks providing internet banking, 35 others providing mobile banking and many other credit organisations launching electronic payments,” Tran Dinh Cuong, deputy director of the central bank’s HCM City office, said. “The cash payment ratio has reduced to 12 percent in comparison with 14 percent in 2010 and the figure will be less than 10 percent by 2020.” Le Anh Tuan, head of VietinBank’s electronic banking division, said: “Low fees and safe, secure, fast technologies are the two most important things to attract customers to electronic payments.” Nguyen Phu Vinh, head of the HCM City Electricity Corporation’s business department, said his company has already tied up with 22 banks and eight fintech companies to collect electricity tariffs online. “As of the end of July there were 1.7 million customers paying through banks and other credit organisations, accounting for 60 percent of our revenues. “We plan to reach 100 percent by 2020.” On the sidelines of the conference there was an exhibition of products and services offered by major players from across the payments, retail and e-commerce vendor communities. It was the first time Seamless, Asia’s largest and longest running conference focused on cards and payments, was organised in Vietnam. Over 400 senior executives and experts attended the event. HCM City: Seminar seeks ways to attract more Malaysian visitors A seminar discussing ways to lure more Malaysian tourists to HCM City took place on September 8 on the sidelines of the three-day International Travel Expo (ITE) HCM City 2017. According to Euromonitor International, Malaysians spend big on shopping on overseas trips with over 25 percent of their total travel expenses that include air tickets, leisure activities, foods and accommodations. That news is a great opportunity for Vietnam’s tourism industry, said Dinh Ngoc Duc, Director of the market department at the Vietnam National Administration of Tourism. Many tourist destinations in Vietnam, however, failed to satisfy the Malaysian tourists’ high demand for shopping. Speaking at the event, director of Malaysia’s Travel Promotion Department in HCM City Abdul Hadi Che Man explained that a majority of Malaysians are Muslim who must strictly adhere to Halal guidelines in terms of foods, drinks and religious practice even when travelling abroad. But not many hotels and restaurants in Vietnam are able to meet such needs, he noted. Delegates to the seminar suggested that Vietnamese tour operators need to better understand needs and habits of Malaysians to better serve them, for example, there should be more shopping centres and restaurants with Halal certificates and more tour guides who have good understanding of the needs of Muslim visitors. The city’s tourism should offer more conveniences for Malaysian guests such as prayer rooms at international airports, Halal restaurants at hotels and shopping malls, and tour packages inclusive of Halal meals, Abdul Hadi Che Man said. Malaysia was on the top 10 Asian tourist markets for Vietnam in the first eight months of 2017. Vietnam welcomed over 295,000 Malaysians during the reviewed period, up 17.1 percent from the same period last year and accounting for 3.48 percent of the country’s total international tourist arrivals. First shipment of Vietnamese chicken dispatched to Japan The first batch of Vietnamese chicken was exported to Japan at the Long An International Seaport in the southern province of Long An on September 9. This is an important event to Vietnam’s agriculture sector and the partners in the supply chain. Japan is a very tough market, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said, adding that after chicken, Vietnam is determined to seek to export pork and milk to this market. Koyu & Unitek Co., Ltd, a joint venture between Australia and Japan in southern Dong Nai province, is in charge of shipping 30 tonnes of chicken wings, thighs and breasts to Japan, which are expected to arrive in Tokyo in 10 days. The company has signed a long-term contract with the Japanese side in which Japan will import about 300 tonnes of chicken products per month, said Director General of the firm James Hieu. According to Hieu, Japan imports over 900,000 tonnes of poultry products annually. In fact, Koyu & Unitek falls short of its Japanese partner’s real demand which exceeds 2,000 tonnes per month. The firm plans to increase capacity in the future by enhancing cooperation with farmers to raise chickens and expanding processing facilities. Cashew exports in eight months fetch 2.2 billion USD Cashew exports fetched 2.2 billion USD in the first eight months of 2017, a rise of 24.9 percent from the same period last year, according to the Ministry of Agriculture and Rural Development. The sum was earned from 223,000 tonnes of cashew, a drop of 1.1 percent year on year. Average cashew price in the first eight months of this year was estimated at 9,865.4 USD per tonne, up 27.2 percent over the same period last year and 20.3 percent compared to the average price of 2016. The ministry reported that in August, about 35,000 tonnes of cashew was shipped abroad for 351 million USD. The US, the Netherlands and China continued to be the leading markets of Vietnamese cashew, which consumed 36.7 percent, 15.6 percent and 11.7 percent of the country’s total export volume, respectively. The highest growth was recorded in the Russian market at 67.1 percent, followed by the Netherlands with 44.9 percent, the US, 38.2 percent, Israel, 30 percent and the US, 22.1 percent, added the ministry. Ninh Binh province looks to nearly double tourism revenue Tourism will become a key economic sector of the northern province of Ninh Binh by 2025, local officials said at a tourism conference held in Ho Chi Minh City on September 8. Pham Duy Phong, director of the Ninh Binh Tourism Promotion Information Centre, made remarks at the conference, jointly held by the Vietnam Tourism Association, Ninh Binh Tourism Promotion Information Centre and HCM City’s Tourism Association. Speaking of the tourism targets, Phong said that last year the province welcomed 6.5 million visitors, earning revenue of over 1.7 trillion VND (75 million USD). The province aims to receive 6.7 million visitors this year and 7.6 million visitors by 2020, reaching revenue of 3 trillion VND (132 million USD). Ninh Binh province is an increasing favourite destination for many tourists in Vietnam. It is land of renowned landscapes, historical relics, traditional trade villages, and varied cuisine. One particularly notable site is the Trang An Scenic Landscape Complex, a UNESCO-recognised World Heritage Site in Vietnam. But the tourism industry in the province wants more help from local officials. The conference heard many opinions about the challenges facing Ninh Binh province’s tourism industry. Representatives of many travel agencies, for example, complained about high prices for goods and services. They suggested Ninh Binh tourism industry leaders pay more attention to developing souvenirs, diversifying local specialties to meet visitors’ different tastes and seeking effective solutions to the issue of overcharging. According to Nguyen Quy Phuong, head of the travel industry department under the Vietnam National Administration of Tourism, the provincial sector should be concerned about promoting itself to the international market. He also suggested the province invest in its infrastructure and human resources to develop tourism sustainably. Bui Thanh Dong, the general director of Ninh Binh province’s Department of Tourism, said that the province is diversifying souvenirs by researching and introducing new ones, such as duplicates of Thai Binh Hung Bao coins, the first coin in Vietnam. He added that the sector will co-operate with related industries to enhance the tourism services of the province and offer favourable conditions to travel agencies. Vietjet signs deal with HCM City Tourism Dept Budget carrier Vietjet Air has secured a cooperation pact with the Ho Chi Minh City Tourism Department in the framework of the city’s 13th International Travel Expo (ITE HCMC). Under the deal signed on September 8, the two sides will work together to promote HCM City’s tourist destinations, and develop joint tourism products. They will also cooperate to attract visitors from key markets and exploring new ones. Also at the ITE HCMC, Vietjet has been honoured as “Best Low Cost Carrier” by the municipal Tourism Department. Boasting a fleet of 45 aircraft, including A320s and A321s, the airline runs 350 flights each day and has to date carried nearly 40 million passengers. It has already opened 73 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the Republic of Korea, Taiwan (China), Hong Kong, mainland China, Malaysia, Myanmar and Cambodia. Conferences to encourage farmers’ entrepreneurship Two conferences are going to take place in Hanoi in mid-September with a view to encouraging farmers’ entrepreneurship and honouring exemplary farmers. Chairman of the Vietnam Farmers’ Union Lai Xuan Mon said at a press conference on September 8 that the farmers’ startup conference will be held on September 18 in response to the national startup movement. It aims to assist agriculture startups and encourage farmers’ creativity in production and business activities. As part of the conference, a seminar will focus on solutions to help farmers do business. Experts and farmers representing some startup models will discuss farming models with hi-tech application, agri-tourism, poly-culture production according to production chains, and product processing and consumption models. Participants will analyse and suggest development opportunities, difficulties and solutions, he noted, adding that some outstanding farmers will also share their success stories. Meanwhile, a conference reviewing farmers’ production and business emulation movement from 2012 to 2017 is about to be organised on September 19. It will gather 300 delegates who are excellent farmers representing millions of farmers nationwide. Mon said in 2016, more than 3.55 million farming households were recognised as excellent. About 27,000 of them gained over 1 billion VND (44,000 USD) in income. These excellent farming households have provided jobs for more than 11 million people. Dong Ky, village of startups Dong Ky, also known as Coi village, is located in Tu Son town, Bac Ninh province, and is famous for traditional fine arts products. Dong Ky’s wood furniture is popular in Vietnam and abroad. To expand production and boost exports, the Dong Ky Fine Arts Product Association has developed a project called “Village of startups” to connect local businesses. Dong Ky people are wealthier thanks to hand crafting fine arts products. Its most prosperous period was from 1988 to 2012. Now, however, it is being hampered by its old way of doing business. The village’s companies and household producers do not coordinate with each other to create a collective strength. Consequently, economic efficiency is low and international integration has made this a serious problem. Recently the Dong Ky Fine Arts Product Association undertook a project called “Village of startups” to connect local businesses and help them operate more efficiently. Dong Ky plans to develop a 50-ha craft cluster in Tu Son town and reduce its dependence on the Chinese market. Vu Quoc Vuong, President of the Dong Ky Fine Arts Product Association, said, “Dong Ky’s startup project is expected to create a breakthrough for the village. The project will create a much bigger workshop space to allow villagers to expand production for exports." "Because it is far from residential areas, it will reduce pollution and improve the environment as it supports social security and generates jobs. Once established, the craft cluster will have a separate area for artisans to demonstrate their talents and wood villages to exchange with each other,” he said. Last year Dong Ky earned about 40 million dollars from furniture exports, one fourth of which came from the Chinese market. Vu Thi Mai, Director General of the Huong Mai Furniture Company, one of Dong Ky’s leading exporters, said, “The wood sector has undergone many ups and downs. We have grown like this because we love the craft. We have invested in the production of high quality products with Vietnamese cultural features. We intend to export to Japan, the Republic of Korea, and China’s Taiwan.” Dong Ky has more than 2,000 enterprises and household producers involved in the furniture trade. Artisan Vu Ngoc Nam, Deputy President of the Dong Ky Fine Arts Product Association, said, “In recent years Dong Ky has sold many of its products to China. The village now specializes in tables, chairs, beds, and cupboards. We have many artisans and skilled workers. We hope the project will be realized soon.” Vietnam’s 2017 rice production estimated at 44.1 million tonnes Vietnam expects to produce 44.1 million tonnes of rice in 2017, according to the Department of Cultivation under the Ministry of Agriculture and Rural Development (MARD). Unfavourable weather conditions shrank winter-spring rice yield by 300,000 tonnes. However, southern localities are estimated to enjoy a surge in rice production of 400,000 tonnes. They have already harvested 1.08 million hectares of rice, or 56.2%. The Cultivation Department said that rice fields in the north are developing well while the rice output of the autumn-winter crop in the Mekong Delta region is forecast to increase by 250,000-300,000 tonnes from the same crop last year. Diseases on rice coupled with impacts of downpours in the north and floods in the south cause great concern to the agricultural sector. Thus, the sector needs to draw up measures to ensure safety for rice production. Aquaculture conference and fair set for Oct.6-8 in Hanoi The Directorate of Fisheries announced at a press conference today (September 8) that an aquaculture conference and fair has been set for October 6-8 in the capital city of Hanoi. This is a premier event that brings together a unique mix of experts including scientists, researchers and decision makers both from academia and industry to exchange their knowledge, experience and research innovations, said Tran Dinh Luan, deputy director general of the Directorate, at the presser. Aquaculture is a major segment of the Vietnam economy and is universally understood as the farming of aquatic organisms including fish and shellfish such as molluscs, crustaceans as well as marine plants. Farming implies some form of intervention in the rearing process to enhance production, he added. This aquaculture conference will cover new research techniques and concentrate on the exhibition of new feeds, fish welfare, antibiotics, and instruments introduced by the aquaculture fisheries laboratories. In addition, the conference will hold special workshops aimed at advertising and marketing farm raised pangasius, which is most commonly referred to by the western world as catfish, in the northern region of Vietnam. At the presser, Dao Van Ho, director of the Vietnam Trade Promotion Centre for Agriculture, noted that pangasius catfish is a relatively new product in northern Vietnam with a low sales volume. The workshops will concentrate on novel approaches to market the new fish in the northern region as part of an effort to boost both sales and earnings and gain the confidence of consumers that the pangasius catfish is safe to eat. VEB and IIB to finance Long Phu 1 power plant Vnesheconombank, International Investment Bank, and PetroVietnam have entered into a tripartite memorandum determining the cooperation framework of financing the construction of Long Phu 1 power plant in Vietnam, according to International Investment Bank’s press release dated September 8. Russia-based Bank for Development and Foreign Economic Affairs—Vnesheconombank (VEB), one of Russia’s largest financial institutions—together with International Investment Bank (IIB), whose member countries include Vietnam, and the Vietnamese oil and gas group signed the memorandum in Ho Chi Minh City during the 20th meeting of the Inter-Governmental Russian-Vietnamese Commission for Trade-Economic and Scientific-Technical Cooperation. Daniil Algulyan, VEB’s senior vice president and head of International Business, Export and Financial Institutions, Nikolay Kosov, chairman of the IIB Board, and Nguyen Quynh Lam, PetroVietnam vice president, signed the document, agreeing that VEB and IIB will finance the equipment supply for the project. In particular, the banks will provide loans for the purchase of Russian high-tech industrial products and for the provision of associated works and services. The relevant decision was taken by the management bodies of VEB and approved by IIB. “In accordance with VEB’s new strategy, VEB is prepared to provide comprehensive financial, guarantee, and insurance support for the projects and commercial transactions aimed at expanding the supply of high-tech products to foreign markets. The memorandum marked an important step towards promoting Russian industrial products to Asian markets and created the necessary conditions for development of the partnership between Russian exporters and importers from Southeast Asia,” said Algulyan. “The memorandum is a testament to our joint efforts in supporting Russian exports and the energy sector of Vietnam, one of IIB’s shareholders. The bank’s Credit Committee approved lending to Long Phu 1 project, which is aimed at strengthening Vietnam’s energy independence and has a strong integration component. Equipment for the power plant will be supplied from the following three member countries: Russia, Vietnam, and the Czech Republic,” said Kosov. Aircraft building, railroad rolling stock manufacturing, car manufacturing, power engineering, agribusiness and agricultural machine building, nuclear energy, and innovation are VEB’s sectorial priorities in supporting the export of high-value-added products. The construction will be carried out by an international consortium headed by PJSC Power Machines. On June 2, 2017, during the Saint Petersburg International Economic Forum, VEB and Power Machines signed an agreement to facilitate power equipment exports. Samsung explores new horizons in Vietnam Along with investing $17 billion in high-tech complexes in Thai Nguyen and Bac Ninh provinces, Samsung plans to encroach on other sectors in Vietnam. Along with the launching of Galaxy Note 8, the newest Samsung smartphone model, on September 13 in Ho Chi Minh City, the Korean giant will also launch Samsung Pay, its mobile payment service, soon. This is not the first time that Samsung mentions launching Samsung Pay. Last year, when the company launched the Galaxy S7 and S7 Edge in Vietnam, Kim Kyung-dong, director of Samsung Pay, said that Vietnam was considered a potential market for Samsung Pay and expected to convert the country’s majority of consumers to electronic payments. At the time, Samsung Pay was expected to launch in Vietnam in 2016, however, to date, the company completed the entire procedures for launching Samsung Pay in Vietnam. According to unofficial information, numerous domestic banks, including Vietcombank, VietinBank and BIDV, and even foreign banks like Shinhanbank and Citi Bank will support Samsung Pay to extend its network in Vietnam. Several days ago, according to newswire Business Korea, Samsung Securities announced a cooperation deal with Caldera Pacific, a Hong Kong-based private equity fund, to buy a 40 per cent stake in Dragon Capital and become its second-largest shareholder. According to the deal, Samsung Securities will hold 10 per cent and Caldera Pacific 30 per cent. The deal aims to accelerate Samsung’s inroads into the Vietnamese stock market to keep up with competing compatriots who are already present in Vietnam’s numerous sectors. Market experts forecast that acquiring a stake in Dragon Capital is the beginning of Samsung Securities’ strategy to enter the Vietnamese stock market and the company may additionally acquire stakes in other companies. In March 2016, Samsung was granted the investment certificate for a large-scale research and development centre in Hanoi’s Hoang Mai district. This $300-million project, which would be Vietnam’s largest research and development (R&D) centre to date, also marks the first time a global tech giant has chosen Vietnam as an R&D hub. Samsung planned to build a 21-storey building on a three-hectare land plot and employ 2,000 labourers in 2016 and eventually 4,000 in the upcoming years. The total capital volume of $300 million would be disbursed within four years, including $50 million in the 2016-2017 period, $150 million in 2018, and the remaining $100 million in 2019. However, to date, there has been no move to implement the project. Debate continues over definition of Uber & Grab Uber and Grab are not types of taxis but are types of contract cars, Mr. Nguyen Duc Thanh, Director of the Vietnam Center for Economic and Policy Research (VEPR), told a workshop entitled “Urban Traffic Regulation Policy in the Digital Era” held by VEPR on September 8 in Hanoi. The workshop focused on the emergence of many new socioeconomic phenomena in the context of new technologies evolving rapidly in the fourth industrial revolution (Industry 4.0), typically in the transport market. In Vietnam’s major cities, there is a growing tendency in planning and policy to respond to these new phenomena. Specifically, there is a limitation on the number of electronic contract cars such as Uber and Grab to minimize traffic congestion and prevent disruption to the traditional taxi industry. Therefore, according to Mr. Thanh, policy makers not clearly differentiating between traditional taxis and Uber and Grab will lead to confusion. Mr. Do Hoai Nam, CEO and Co-Founder of UP-Co Working Space Vietnam, told the workshop that the government should have a policy of obliging traditional taxis to change technology instead of limiting the development of Uber and Grab. “According to studies, occupancy in Uber and Grab cars is over 75 per cent and 25 per cent in traditional taxis,” he added. Economist Pham The Anh agreed that Uber and Grab are a test of the direction towards promoting science and technology in real life and in economic activities. “Policy makers need to make assessments from a variety of perspectives, such as consumers, service providers, and taxi companies, to come up with appropriate policies,” he said. At the workshop, Dr. Dang Quang Vinh from the Central Institute for Economic Management (CIEM) proposed that the government eliminate some regulations and conditions and liberalize taxi transport, so that businesses can compete in an equal environment and ensure safety. Uber and Grab have created competition in the market, with a number of traditional taxi companies renewing their technology and curbing fare rises. “Therefore, authorities should carefully assess the effectiveness of Uber and Grab and choose the best policy options in the context of extensive integration,” Dr. Vinh said. VinaLand makes tender offer and divests from Vina Square VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam’s emerging real estate market, has announced it will conduct a distribution of up to $60 million to shareholders through a tender offer to purchase ordinary shares in the company for $0.01 each. The offer is for all shareholders on the register at 6pm UK time on September 15, at a fixed price of $0.83 per ordinary share. Shareholders can either elect to accept or decline participation in the tender offer. Consequently, the company intends to repurchase, in aggregate, such number of ordinary shares at the tender price as is equal to $60 million. Accordingly, if shareholders in aggregate tender ordinary shares more than the tender value cap, elections will be scaled back to the tender value cap. To the extent that not all shareholders elect to participate in the tender offer, the company will be able to acquire from tendering shareholders additional ordinary shares up to the tender value cap. All ordinary shares repurchased by the company pursuant to the tender offer will be cancelled. Furthermore, the company has announced that it is divesting its stake in the Vina Square project, located in Ho Chi Minh City. The project consists of a total land area of approximately 3 ha and was acquired by VinaLand in 2007, at which time the land was designated as a future development site. VinaLand is divesting its entire stake in the project to Vietnam’s Tri Duc Real Estate Company for net cash proceeds of approximately $41.2 million, which includes the repayment of shareholder loans, resulting in an IRR of 3.3 per cent to the company. The total valuation is recorded at 0.3 per cent above the June 30, 2017 unaudited net asset value and 13.5 per cent above the unaudited net asset value at the time of VinaLand’s extra-ordinary meeting in November 2016. Both figures include adjustments for additional investments up to the date of exit. At the time of the announcement, $41 million, or 99.5 per cent, of the net proceeds have been received by the company. It is expected that all proceeds will be received by the company by the end of this month. “This tender offer follows the announcement of the Vina Square disposal, for which all proceeds will be received in September, enabling further distributions to shareholders during October 2017,” said Managing Director Mr. David Blackhall. “This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals. The proceeds received from this disposal will, in conjunction with collections from earlier disposals including prepayment advances for future pipeline disposals, be used to cover VinaLand’s commitments, including operating costs, capital contributions, and further distributions to shareholders.” OMA Emirates set to enter Vietnam OMA Emirates, one of the UAE’s leading payments solutions providers, gained ground in its expansion plans with its attendance at Seamless Vietnam 2017, which was held in Ho Chi Minh City a few days ago. The company showcased its homegrown solutions and service developments for the banking and retail domains, which include loyalty platforms and solutions, ATM optimization, and card personalization. For the first time since the launch of its “Omega - A Closed Loop Platform”, visitors to the exhibition were be able to witness the new solution. Developed to support customers who are connected to the OMA Emirates network, the platform will enable them be a part of the loyalty program or pre-paid cards. “We have been very successful with our global expansion plans over the last two years and our participation at Seamless Vietnam further strengthens our goals,” said Mr. Niranj Sangal, CEO of OMA Emirates Group. “Simultaneously, OMA Emirates has developed several new products in keeping with market trends and needs and we are now positioned to explore new markets with our entire range of solutions and services for the banking and retail sectors. We look forward to interacting with all our potential customers and have put into motion a chain of activities to connect and communicate with them.” On the banking front, OMA Emirates demonstrated its NanoSwitch ATM, which is a secure online solution for ATM transactions. The robust solution enables the optimization of ATM management by providing transaction routing, authorization hosts, and settlement and management reports. The solution complies with strict EMV standards and is certified by major payment schemes including Visa and Mastercard. The retail sector solutions showcased at Seamless Vietnam included the company’s B2B2C loyalty program under the brand name “Benefit Beyond”, a common branded card capable of hosting multiple loyalty programs. Another solution accepted by the retail industry and also demonstrated is the OMA Retail Suite. The solution is a technology platform that lays the foundation for a network of retailers and consumers who can benefit from a robust low-cost loyalty program. An intranet management portal that is a fully automated ERP, it is a highly scalable system that is convenient for both large as well as smaller outlets. The Middle East-based OMA Emirates Group is a provider to the payments industry, with cutting-edge technology solutions for card personalization, payment issuance, and payment acquiring systems through a global delivery platform. The company aims to help businesses achieve the highest levels of efficiency by drawing on its extensive research and experience with a large profile of high-performance businesses. OMA Emirates Group, together with its strategic world class technology partners, designs and delivers a seamless customer experience. The company now has a presence in Eastern Europe, Africa, and APAC. Caution needed as Vietnam mulls over property tax Although Vietnam already has a set of taxes on land, it has yet to impose a property tax like many other countries. The Ministry of Finance is looking to raise the government’s income by levying a property tax rate that fits in with Vietnam’s current situation. Statistics show that Vietnam’s per capita income has been rising rapidly, from US$1,400 in 2013 to US$2,200 in 2016, and is projected to reach US$3,400 by 2020. The rise in income is also coupled with an increase in property ownership. Meanwhile, land tax revenues only account for a minimal 0.03% of the GDP and just 0.15% of the total government income. That is why the Ministry of Finance (MOF) is considering taxing individuals who own a second house or more. According to the MOF, the property tax will not only help to increase government revenues, redistribute personal wealth and improve social equality but will also help to build a system of taxes in line with international practices, whilst stabilising the property market, restricting speculation and increasing the efficiency in using properties. However careful preparations are needed before the property tax law is officially enacted as this type of tax is not easy to collect and it is also often difficult to determine the ownership of the second houses for a number of reasons. Firstly, a clear definition of the properties on which the tax is to be levied has yet to be provided. Moreover, the collection of the property tax can be easily nullified by legal loopholes if there are no transparent regulations on the age of owners and house registration in other people’s names. Secondly, Vietnam is levying the land use tax and considers the land use rights as a type of personal and corporate property. If the definitions are not established clearly, it could lead to conflict or overlapping taxes. A house worth a few thousand dollars cannot be equated with a villa worth millions of dollars. The government also cannot levy tax on the second and more houses whose total value is even less than another one which is outside the taxation scope. Thirdly, it is necessary to develop convincing arguments in order to reach a strong public consensus on how properties should be taxed and the sanctions on those who fail to report their large assets or own homes abroad. In addition, it should be anticipated that collecting the property tax could easily present a chance for corruption as the taxpayers and tax collectors could collude with each other to avoid paying taxes. If the scope of taxation excludes low-value houses and solely covers high-value houses, it could give new impetus for increasing investment in and ownership of affordable houses which are currently in short demand. However, the property tax on the second houses is new and highly significant therefore it requires a roadmap which is large enough for adequate consideration and the law-making process should take into account thorough research, international experience and public feedback. In addition, in order to allay any concerns that the property tax could become a burden on enterprises and homebuyers, reform is needed in the collection of land use fees and the property tax must not be levied on houses with low value, such as those below VND1 billion (US$44,000) and households with many houses whose total value is below the average threshold. Furthermore, the tax rates should follow different brackets and be appropriate with local conditions. At the same time, other measures are needed to prevent house speculation and to stabilise the property market. Under any circumstances, the establishment of a national information system on property transactions and property owners is necessary to ensure both efficient state management on properties and successful property tax collection. PVN’s loss-making ethanol projects show signs of revival Vietnam Oil and Gas Group’s (PVN) loss-making ethanol projects will be able to return to life, helped by the Government’s decision to withdraw A92 petrol from the market to boost still-poor sales of E5 bio-gasoline. From next year on, only E5, which is a mixture of A92 gasoline and 5% ethanol, and A95 gasoline will be available on the market. PVN general director Nguyen Vu Truong Son said the withdrawal of A92 from the market had paved the way for PVN to restart its debt-laden ethanol projects. PVN has reviewed its loss-making projects, including the polyester fiber and ethanol facilities which have been put on hold for years. Son said some partners of PVN’s had shown interest in acquiring stakes at several projects so that they could resume production from early next year. Three investors – Tin Thanh Industrial Electricity and Steam Co Ltd, Tung Lam Co Ltd and Sundries Investment and Trading JSC (Tocontap) – have expressed interest in the Dung Quat ethanol plant of PetroVietnam Central Bio-fuels JSC (BSR-BF). BSR-BF has signed a contract with a consulting company to evaluate the project and prepare a divestment plan as well as select investors in September and finalize a production resumption plan before divestment. For Binh Phuoc ethanol project, a team comprising representatives of PVN and PetroVietnam Oil Corporation (PVOil) has worked with project investor Orient Bio-Fuels Co Ltd (OBF) and its shareholders Thailand’s Toyo Engineering Corporation and Licogi 16 Company (LCG) to discuss plans to revive the project. PVOil has worked with OBF and Tung Lam Co Ltd to find solutions to production cost cuts and productivity improvement in the project. Among the ethanol projects in the nation, just two projects of Tung Lam Co Ltd have been performing well, so PVN will ask the company for advice. At a meeting on August 24, 2017, Toyo and Licogi 16 said they would complete necessary procedures to inject more capital into the project. PVOil and shareholders will have to secure about VND91 billion (US$4 million) to put the project back into operation next year and work with suppliers to ensure sufficient input material. Two investors – Thai Son Investment JSC and Mepcom Offshore and Marine Pte Ltd – are eyeing the Phu Tho ethanol project developed by PetroVietnam Bio-ethanol Company (PVB). Mepcom Offshore and Marine Pte Ltd has proposed acquiring shares of PVB’s shareholders and develop the project in the build-own-operate (BOO) format. As for the Dinh Vu polyester fiber plant, Vietnam Textile and Garment Group (Vinatex) has promised to purchase all the plant’s output in 2018. PVN will work with domestic and foreign partners to finalize investment and restructuring options for the project by the end of this year. According to the ministry, there will be no other choice but to dissolve the Dung Quat shipbuilding project. Global leading brands gather at Thai agricultural fair More than 300 brands from all over the world took part in the SIMA ASEAN Thailand 2017, which is ASEAN’s largest all-in-one platform for agribusiness focusing on the machinery innovations to reach the Agriculture 4.0 era. The fair, which closed Saturday, was jointly organized by IMPACT Exhibition Management Co Ltd, COMEXPOSIUM and Union des Industriels de I’Agroeqyuipment from France, Thailand’s Ministry of Agriculture and Cooperatives, and Kasetsart University. “We are aware of its significance in driving Thailand to the Agriculture 4.0 era,” said Dr. Suwit Chaikiattiyos, general director of the Department of Agriculture under the Ministry of Agriculture and Cooperatives. “We hope that this event will be the platform to exchange ideas and the latest technology that lead to the rapid industry development, an increase of leverage negotiation for farmers, and a higher capability of the Thai agribusiness industry in the highly competitive international market,” he said. In addition, the event helped promote and strengthen Thailand’s agriculture by giving Thai exhibitors the opportunity to showcase their potential, as well as learn more about practical agricultural innovations and technology from international exhibitors. It also aimed to educate Thai farmers how to increase their productivity and raise the bar for agricultural produce to meet international standards. Loy Joon How, general manager of IMPACT Exhibition Management Co Ltd, said SIMA ASEAN Thailand 2017 was a brilliant opportunity for Thailand to become the main agribusiness hub in the region. More than 300 brands from all over the world are exhibiting their products and services at the event. This year’s highlight was the demonstration area located by IMPACT lakeside, where agricultural machinery is on display. Experts were present to share their knowledge and there will also be a drone pavilion and workshops that are geared towards the Agriculture 4.0 era. Jean-Hugues Barsot, key account manager of SIMA – SITEVI at COMEXPOSIUM, said SIMA was an international agricultural exhibition where innovations, latest technology and machinery for the agricultural sector are featured. It also served as a meeting point for traders, buyers, importers, operators, farmers, experts and professionals in agribusiness. At the SIMA Paris event this year, there were 232,000 visitors from across the world, and over 1,700 exhibitors from 42 countries and territories, building a stronger brand for SIMA. “We organize events in Europe, South Africa and Asia. With this third edition, SIMA ASEAN can now be considered as a deeply-rooted exhibition. This show confirms its status as the leading agricultural trade show in Southeast Asia,” Barsot said. The third edition of SIMA ASEAN Thailand 2017 was expected to attract 15% more visitors than the previous year and generate more than one billion bath in revenues. The second edition last year attracted more than 13,000 trade visitors from 40 countries and territories such as Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan and Vietnam. HCMC to build more exhibition and convention centers HCMC will have more sites to organize big conferences and exhibitions, thus promoting the development of meeting, incentive, conference and exhibition (MICE) tourism. Bui Ta Hoang Vu, director of the HCMC Department of Tourism, said work on a 14-hectare international exhibition and convention center would commence in Thu Thiem New Urban Area next year. It is expected to be up and running in 2020. Some other major projects are being developed in Can Gio and Cu Chi districts. And more high-end hotels will be built in the city to meet the demand of MICE guests. Vu told the Daily on the sidelines of the “HCMC – a new destination for MICE tourism in Southeast Asia” seminar on September 6 that enterprises should also do the marketing and devise attractive products for guests. According to the Department of Tourism, the first half of 2017 saw more than 2.7 million foreign tourists coming to the city, up 14% year-on-year. The city currently has over 2,100 hotels with a total of 50,300 rooms, including 1,900 hotels of one to five stars with 48,700 rooms. The department cited statistics of McKinsey, a U.S consulting company, as saying that 17% of tourists come to HCMC for work, above the region’s average of 14-15%. With a lot of traffic infrastructure and service development projects, the city expects MICE tourism to grow strongly in the coming time. However, many enterprises have complained about the shortage of large exhibition and convention space while the Saigon Exhibition and Convention Center (SECC) is often full all year round. Thuong My An, general director of Saigon Exhibition and Convention Joint Venture Co Ltd, said 53 events were organized at the center last year. The center will be expanded with an additional 10,000-square-meter area to accommodate exhibitions with 1,000 booths instead of the current 500. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET |
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SOEs name new staff to top management posts A number of changes in key personnel in some state-owned enterprises (SOEs) are not expected to affect the enterprises’ production and business, experts say.  Tran Viet Thang, CEO of Vicem, the largest cement manufacturer, has been dismissed from his post. Bui Hong Minh, who was deputy CEO of Vicem, has taken the ‘hot seat’ left by Thang. The decisions were made after the Ministry of Construction’s Party Civil Affairs Committee held a meeting to discuss Vicem’s production & business situation. Dan Tri quoted its sources as reporting that Thang had been dismissed because of mistakes in the production & business management made by Vicem and Vicem’s subsidiaries during the time when Thang was in office. In March 2017, PM Nguyen Xuan Phuc sent a document requesting the construction ministry to clarify the information that Vicem was incurring a loss of trillions of dong because of management problems. Most recently, Habeco unexpectedly suspended Nguyen Hong Linh as CEO of the brewer. Ngo Que Lam, who was deputy CEO, was authorized to act as the new CEO on August 21. According to Tien Phong, Habeco’s management board had a closed-door meeting and released a resolution on Linh's suspension of his executive duties as CEO to focus on the divestment of state capital in Habeco, debt collection and settlement of the issues between Hanoi-Nghe An Brewery JSC and the Vietnam-Laos Economic Cooperation Corporation.
Analysts noted that the managers of some SOEs have to leave their posts as their enterprises are gearing up for the equitization process. Dinh Trong Thinh from the Finance Academy commented that the strict supervision over the SOEs under equitization and control of questionable executives is a must. Thinh went on to say that many SOEs had loosened their management. Some individuals and groups of interest, exploiting loopholes in policy, put their relatives in posts which can determine the enterprises’ production and business performance. “The people exploit the positions of SOEs, and the resources and preferences given to enterprises to get benefits for their groups of interest,” Thinh commented. “Therefore, these are people who don’t want to accelerate the equitization process.” He believes that the move show the government’s strong determination to ‘purify SOEs’. The changes in the key personnel at the SOEs, which play important roles in the economy, are not expected to affect the enterprises’ production and business because SOEs are supervised by governing bodies. Some analysts have warned that the move could help some ‘big bosses’ in SOEs who have committed wrongdoings make a ‘soft landing’. On this issue, Thinh said that it is necessary to assess both the merits and the sins of these personnel. “I believe we are going in the right direction,” he said. Dat Viet |
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Customs officers nabbed for illegal import of over 200 shipping containers in SaigonA total of 213 containers were illegally imported into Ho Chi Minh City in 2015 Two customs officers in Ho Chi Minh City have been arrested for their involvement in the illegal importation of 213 shipping containers at a local port in mid-2015.  Trucks carry shipping containers out of the Cat Lai Port in Ho Chi Minh City on July 17, 2017. Photo: Tuoi Tre The General Department of Vietnam Customs confirmed in a press release on Monday that Nguyen Van Lam and Tran Thanh Tung, who work under the Customs Department of Ho Chi Minh City, had been apprehended by anti-corruption police units. Lam, a public servant at the Saigon Port’s customs office, was detained on Saturday last week for abusing his authority to allow several individuals to import prohibited shipments into Vietnam. Meanwhile, Hung, a public servant at the express customs branch who previously worked for the Saigon Port’s customs office, was nabbed on August 25 for his intentional oversight leading to serious consequences. According to the case file, a total of 213 shipping containers of 56 businesses were registered as a transit shipment at the Cat Lai Port, a section of the Saigon Port, in mid-2015. The goods were then said to have been transported by land to Cambodia. Although the containers departed Cat Lai Port, they never arrived in Cambodia, and their information disappeared from the database. The General Department of Vietnam Customs later discovered the incident and requested an investigation. A probe revealed that several public servants from the Saigon Port’s customs unit had not followed protocol in the management of the shipments. Investigators also found that all 56 businesses had ceased operations or given incorrect addresses. The Ho Chi Minh City customs department has been ordered to impose stern punishment upon the individuals responsible for the violations. According to a source close to Tuoi Tre (Youth) newspaper, aside from Lam and Tung, other public servants in charge of shipping management at the Cat Lai Port claimed that they had not been involved in the offense. Tuoi Trenews |
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Article 3
First domesticated elephant to be born in Dak Lak after 30 years The authorities in Dak Lak Province are preparing to welcome the first baby elephant conceived and born by a domesticated elephant in the province after 30 years.  Ban Nang is the first pregnant domesticated elephant in Dak Lak in 30 years. Statistics from Dak Lak Elephant Conservation Centre show that the number of domesticated elephants plummeted from 502 in 1980 to just 44 this year because of overwork, old age and clashes with wild elephants. 19 of the animals are too old and can't breed anymore. Last year, the centre started a research project to improve fertility rate in domesticated elephants. The owners will be informed when is the best time for breeding to match elephants together. Recently, owner Y Mu Bkrong announced that his 38-year-old elephant, Ban Nang, was pregnant. She has been relieved from work to relax in a forested area far from people. Dak Lak Elephant Conservation Centre have collaborated with the Asian Animal Foundation to send veterinarians and experts to consult and take care of Ban Nang. She is expected to give birth naturally at the end of September. Ban Nang’s owner said the elephant was an orphan and taken care of by another female, H'Ban. But when Ban Nang grows up, H'Ban was already moved to a new home. Dak Lak Elephant Conservation Centre recently discussed with H'Ban new owner and decided to spend VND10m (USD440) a month to hire H'Ban as a nanny for Ban Nang.  Ban Nang and her nanny, H'Ban cross a stream. On August 29, Y Mu Bkrong was given VND171m (USD7,500) to take care of the elephant. Vu Van Dong, deputy director of the provincial Department of Agriculture and Rural Development, "This is a positive sign for elephant conservation work. We'll closely monitor the elephant as she’s not very young." dtinews.vn |
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Article 2
Vietnamese province halts entertainment project over repeat violationsThe project was found to have illegally encroached on over 2.2 hectares of bay area in Nha Trang
The decision was made by the provincial Department of Planning and Investment, its director Tran Hoa Nam said on Saturday. The project, spanning over 103,000 square meters along Nha Trang Bay on the seaside Pham Van Dong Street, was approved in March 2012 and had the first sod turned in October 2014. The entertainment complex would have included a theme park, a sporting venue, a seaport and hotels. In December 2015, Nha Trang Star’s namesake developer was found to have encroached on over 22,000 square meters of bay area near the protected national scenic site of Hon Do Island. The administration of Khanh Hoa at the time fined the company VND225 million (US$9,900) for multiple offenses, including infringement upon a national scenic site and lack of environment monitoring and protection plans. Its developer, Nha Trang Star JSC, has been subject to further administrative fines by the provincial administration, the Department of Culture, Sports and Tourism, the Department of Construction, and the Department of Planning and Investment. The project was also found to have included buildings not initially approved by local authorities. Despite its completion date set for late 2016, the site of the project is still a massive open field without any building in sight as of September 2017. “If the developer does not speed up their construction and make corrections to their building plans, we will request the withdrawal of the project’s permit,” Nam was quoted by local news site VnExpress as saying. |
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Article 1
Australia-Vietnam launch new Agriculture StrategyThe honourable senator Anne Ruston launched late last month a new Australia-Vietnam Agriculture Strategy during a visit to the city of Can Tho, the largest metropolitan area in the Mekong Delta region.  The strategy outlined by Ms Ruston, the Australian Assistant Minister for Agriculture and Water Resources, identifies economic, innovation and security priorities for both countries that offer the greatest returns and maximizes common interests. Agriculture is a cornerstone of the bilateral partnership between Vietnam and Australia, covering trade, research, education, development cooperation, innovation and investment, said Ms Ruston in her speech introducing the new strategy. “We have built the foundations of our agriculture relationship through over 40 years of collaboration in the agriculture, fisheries, forestry and water sectors.” “It is a foundation that provides us with great opportunities to expand and grow into the future. The Australia in Vietnam Agriculture Strategy recognizes the value of growing our bilateral trade in agriculture and building on the investments both nations are already making.” Australian Ambassador to Vietnam, H.E. Mr Craig Chittick, supported the development of the strategy. “As Ambassador, I am constantly impressed with the breadth and depth of our work in agriculture, from projects that help smallholder farmers establish a business supplying safe vegetables to supermarkets in Hanoi, to large Vietnamese companies using Australian technology to pioneer sustainable shrimp farming in Vietnam”, said Ambassador Chittick. “The Australia in Vietnam Agriculture Strategy sets out the strategic framework for our agricultural relationship across the two missions in Hanoi and Ho Chi Minh City, and covers all Australian Government agencies in Vietnam” Food safety in the pork value chain Ambassador Chittick underscored that supporting the development of the pork value chain in Vietnam is one key aspect of the new strategy that refocuses the bilateral partnership between the two countries. Food safety is a high priority for citizens and the government. Foodborne diseases are not only a major public health problem but also present a barrier to smallholder Vietnamese farmers who wish to sell in high value domestic and export markets such as those in Australia. Pork is the most widely consumed meat in Vietnam, but along the pork value chain hazards are pervasive, costs of compliance are high, and enforcement of food safety laws and regulations capacity is weak. The new Australia-Vietnam PigRISK project envisions the improvement of the livelihoods of smallholder pig farmers in Vietnam concomitantly with the development of food safety as a top priority in the pork value chain. The project will be managed by the International Livestock Research Institute in collaboration with Vietnamese partners and funded by the Australian Centre for International Agricultural Research. The project builds on strong national and international partnerships to address questions including: Is pork in Vietnam safe? What is the extent of the risk? How significant are the risks? How best can these risks be managed? Using market-based approaches, PigRISK will conduct extensive risk assessment and capacity building in food safety and identify and generate evidence on food safety risks and impacts. PigRISK affirms the high impact of pork borne disease—considering that 10-15 out of 100 consumers are affected annually by food borne diseases. The project will identify critical points for risk management interventions. The research findings will influence policy at the national level through the National Food Safety Working Group and the Food Safety Risk Assessment Taskforce and is intended to become one of the foremost groups working on food safety in Vietnam with high international recognition. Safe pork research will continue to receive financial support from Australian Centre for International Agricultural Research over the next five years, as well as policy support to improve food safety and market integration for other key agriculture commodities in addition to pork. VOV |
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Article 0
Vietnam always supports ASEAN-China cooperation: Deputy PMAs an active member of the ASEAN Community, Vietnam supports ASEAN-China cooperation, Deputy Prime Minister Truong Hoa Binh stressed at an event in Nanning, the capital of China’s Guangxi Zhuang Autonomous Region, on September 12.
Deputy PM Binh, Chinese Vice Premier Zhang Gaoli and leaders of ASEAN countries were attending the opening ceremony of the 14th China-ASEAN Expo (CAEXPO) and the 14th China-ASEAN Business and Investment Summit (CABIS). The Vietnamese official hailed the importance of this year’s CAEXPO, held amid the 50th founding anniversary of ASEAN. He affirmed that CAEXPO and CABIS events have contributed to the growth of the ASEAN-China strategic partnership. Vietnam attaches importance to CAEXPOs and has more than 250 booths at this, the 14th edition. It has been the ASEAN country with the biggest number of booths at the expo for 12 straight years, he noted. He also detailed Vietnam’s resolve to integrate into the world and responsibly contribute to regional and international issues. The country has strategic and comprehensive partnerships with many countries, while having economic and trade relations with 224 countries and territories. Vietnam is one of the successful developing nations in attracting foreign direct investment, and is striving to attain sustainable growth by improving growth quality and making use of chances generated by Industry 4.0 to promote labour productivity and competitiveness, the Deputy PM said. [China proposes seven points to take ties with ASEAN to new level] Binh emphasised that Vietnam is ready to link the ASEAN Economic Community and China, and together with other ASEAN countries to enhance cooperation, keep peace and stability, and solve differences for the sake of all parties’ interests, thus ensuring smooth economic cooperation and contributing to peace, cooperation, development and prosperity in the region. For his part, Chinese Vice Premier Zhang Gaoli reviewed cooperation policies and activities between his country and ASEAN, underlining that China treasures its ties with ASEAN. He suggested cooperation policies for the time ahead, including the consolidation of political trust to create a foundation for boosting overall cooperation, including in economy-trade, production capacity improvement, resources connection and people-to-people exchange. The CAEXPO and the CABIS have become an important mechanism for bolstering friendship exchanges, trade and ties between ASEAN and China. They have also turned into a destination for businesses from China, ASEAN and other regions, Zhang added. VNA |
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Article 5
PM urges lower interest rates, stable taxes The Government has instructed corresponding administrative authorities to aim for a 0.5 percent decrease in lending interest rates from now until the end of 2017, while keeping taxes, fees and other charges unchanged, in order to propel the current disbursement rate in public spending and boost businesses’ productivity.  Loans registration and disbursement at the Vietnam Bank for Social Policies’ branch office in Nam Dinh province Under Resolution 84/NQ-CP issued last week, Prime Minister Nguyen Xuan Phuc signed the request for the State Bank of Vietnam (SBV) to take the initiative in monitoring the money supply and general monetary policy to suit the actuality of the country’s macroeconomic flows based on inflation rates and the money market. At present, the PM has asked the SBV to strive for both a 0.5 percent interest rate reduction and a 21 to 22 percent annual credit growth rate for 2017. Simultaneously, the Ministry of Planning and Investment (MPI), Ministry of Finance (MoF), and other central and local departments or agencies will shift their focus to accelerating the disbursement rates for public investment, as stated in Resolution 70/NQ-CP. If these changes can be implemented, the country should be looking at a much better fourth quarter result for 2017, including the annual goal of 6.7 percent GDP growth. Additionally, all taxes, fees and charges should remain unchanged in 2017 to encourage exports and production, in the hope of achieving economic growth consistent with the domestic market. In the last four months of 2017, increases in the disbursement of public spending on projects, including from official development assistance and the State budget, should play a significant role in helping economic sectors reach their year on year growth goals of 3.05 percent for the agriculture sector, 7.91 for industrial production, and 7.19 percent for tourism and services. In the first eight months of 2017, the MoF has reported a total of 137 trillion VND (6.1 billion USD) in State budget disbursement for public projects, amounting to 38.4 percent of the yearly plan for public investment as approved by the National Assembly, in comparison with 2016’s 39 percent over the same period. On the other hand, the money and credit market has been stable, with credit rates marking a year on year increase of 10.06 percent as of the end of August. As the SBV is in charge of keeping lending rates low to encourage borrowing from businesses and other economic sectors, the MoF must take the lead in implementing support policies to monitor the State budget, guarding against misspending, promoting saving across all sectors and strictly following the Government’s regulations on financial and budget management. The MoF has in turn asked local authorities to help reduce business related costs, and analyse the impact of an increase in value added tax on the general economy. The Government also requested the MPI and the MoF to work with the Ministry of Transport on mobilising investment towards strategic public traffic infrastructure projects, helping speed up disbursement on the North-South highway project, as well as the national railway construction project and the Long Thanh airport project in HCM City. Phuc also required the SBV to increase monitoring, inspection and dealing with any breaches in the credit sector, especially when it comes to the financial branch’s system security. VNA |
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Article 4
Six more bridges to span Hà Nội’s Red and Đuống rivers Phan Trường Thành is one of the drafters of the "Master plan on Investment in Hà Nội’s Transportation Infrastructure in 2017-2021, with a vision to 2030". He speaks to the Kinh tế & Đô thị (Economic and Urban Affairs) newspaper about the importance of building new bridges across the Red River.  Vĩnh Tuy Bridge. Hà Nội is planning to build six more bridges to facilitate traffic flow across the Red River. - Photo baotintuc.vn What are the roles of the future six bridges across the Red River to Hà Nội’s transport? At present, Hà Nội is in the initial stage of its comprehensive investment programme in infrastructure construction of its transport framework. According to plan, from now till 2030, the city will focus on the construction of another six bridges across the Red River and Đuống River. These bridges will connect the city’s ring bell axis with roads leading to the municipal city’s centre or leading to other regions. In my opinion, the construction of these six bridges - the Vĩnh Tuy Bridge (the second phase), the Thượng Cát, Tứ Liên, Giang Biên, Đuống No 2 and Trần Hưng Đạo, will have a great significance toward Hà Nội’s transport. For example when the Cát Thượng Bridge is completed, it will play a very important role in the Ring Road 3.5. It will reduce the load bearing capacity for the present Ring Road 3. In addition, these six bridges will serve as leverage for the socio-economic development and rapid urbanisation of the north of the Red River and east of the Ring Road No 4. It is no doubt that the good transport flow will help speed up the city’s socio-economic development. So are the people’s living conditions and others. What are advantages and disadvantages in the building of the six bridges? I should say the construction of these bridges have more advantages than disadvantages. The biggest advantage is we can minimise to the lowest level of land compensation which incurred during the construction of these bridges. In addition, the construction of these bridges will have fewer impacts on people living on the two sides of the bridges. For example, we don’t have to do the resettlement of people during the construction of the Vĩnh Tuy Bridge in the second phase. In addition, the two feeding roads to that bridge are already available since the construction of the first Vĩnh Tuy Bridge. However, if the Hà Nội authorities want to speed up the construction of these bridges, they have to work out suitable mechanisms, policies and the funding for these projects. At present, the mid-term public investment in the period 2016-2020 in Hà Nội only meets about 20 per cent of the total project budget requirement of VNĐ135 trillion. As a result, the city authorities have to mobilise the other 80 per cent of the budget requirement from the society. With a normal transport infrastructure project, the bidding must go through between 3-4 rounds, including the steps of consultation; design and projection and construction. That means it would take between 500-700 days for completing the administrative procedures. In addition, each bridge has its own requirements. For example, the Trần Hưng Đạo, one side of the bridge is adjacent to the flying funnel of the Gia Lâm airport. That’s why it is very important to ensure absolute security and safety for the airport operation. Meanwhile, for the Tứ Liên, Thượng Cát and other bridges, the construction must ensure safety for the flood diversion corridors and dyke safety procedures. Does Hà Nội have any plans to overcome the above-mention challenges? Traffic congestion has become an acute problem to be resolved, that’s why the Hà Nội authorities have written their proposal to submit to the Prime Minister. Luckily, our proposal has been approved by the PM. He has granted us a special mechanism and allowed us to select investors in some important projects. All the six bridges are among the list of projects to ask the PM’s permission to appoint constructors. Until now, some constructors have expressed their interest in doing the projects in either the forms of Built and Transfer (BT) or Built, Operate and Transfer (BOT). By now the Hà Nội authorities have already arranged vacant land areas to exchange for land use in the six bridges and other required legal procedures before submitting to other ministries for their comments/suggestions and for the PM’s approval. Will you please explain a little further about the city’s proposal to appoint contractors? Chairman of Hà Nội’s People’s Committee Nguyễn Đức Chung has laid out some basic principles requiring any investors wanting to invest in the building of the six bridges. They must have capacity and experiences in the areas they are interested in. They must have good financial capacity and are committed to honouring their financial commitment. In addition, the investor has to deposit a sum, if they fail to honour their commitment they will loose the money. In addition, the investor also has to bear the cost for writing their feasibility study and the project financial proposal. If any of the six projects is applied in the Public-Private-Partnership format the Hà Nội authorities will grant preferential loans to that project. To ensure transparency, accountability and efficiency in the investment management of the projects, the Hà Nội authorities will create a management board for each project. It is projected that from now till 2030, Hà Nội’s transport framework will be completed. For the six bridges, if the PM gives a nod to our request for a special mechanism given to these projects, we promise to have all the six bridges be completed by the year 2021 with high quality. - VNS |
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