BUSINESS IN BRIEF 19/10 Earlier, the Japan Embassy in Deputy Minister of Transport Pham Quy Tieu said the Japanese side just pledged to support the development of Long Thanh airport project but did not provide any assurances or a specific figure of a preferential loan. US$2 billion is a committed figure by the French Architecture and Engineering Company (ADPI) which will provide loans to  At the signing ceremony held in The agreements also serve to promote the traditional friendship ties between the two countries, they said. In addition, Ambassador Luu announced the Vietnam Ministry of Industry and Trade (MOIT) will soon sign an economic cooperation agreement with the Macedonian Ministry of Economy to further facilitate trade promotion and exchange of goods. The Vietnam Chamber of Commerce and Industry (VCCI) will also establish cooperative ties with the Economic Chamber of Macedonia, Luu said, adding that this will promote trade by increasing the number of economic forums, seminars and fairs. Confectionery and cereal exports expand into new markets Confectionery and cereal exports jumped to US$290 million in the eight months leading up to September, significantly higher than last year’s corresponding period, according to the General Department of Vietnam Customs. It reports the increase comes on the back of expanding new foreign export markets, most notably During the eight month period, Vietnamese exports to traditional markets of the The signatories are Vietnamese Minister of Construction Trinh Dinh Dung and Cuban Minister of Trade and Foreign Investment Rodrigo Malmierca Diaz. Apart from traditional cooperative fields such as agriculture, energy, health, and biological technology, both countries looked towards the new area of construction material, said Minister Dung. The two sides agreed to put forth measures to deepen cooperation in 2014-2015, based on the bilateral economic agenda signed in March this year during Prime Minister Nguyen Tan Dung’s visit to New Cuban legal regulations on foreign investment are expected to open up opportunities for Vietnamese businesses. The same day, First Vice President of the State Council and the Council of Ministers of Cuba Miguel Diaz Canel Bermudex, received Vietnamese participants to the meeting, saying the Cuban Party and State hope to enhance trade links with Twenty delayed projects cancelled in Thua Thien-Hue The central The projects include six in Chan May–Lang Co Economic Zone and four in industrial parks, run by Tai Sun Vietnam Trading Services Limited Company, Thua Thien Hue Ceramic Tiles and Minerals Joint Stock Company, JK Global Limited Company and Tsunoda Vietnam Limited Company. However, the issue of appropriate penalties remains unsolved. Current regulations only permit a project to be postponed for a maximum of 24 months, otherwise its licence is withdrawn and the investor must pay fees for using and leasing the land during that time. Korean firms seek business opportunity in Bac Ninh A delegation from the The delegation was led by Cho Young Jun, Representative of Korean Chamber of Commerce & Industry (KCCI) in The provincial vice chairman Nguyen Luong Thanh said that with its potential in various fields and friendly investment environment, Bac Ninh has become a leading province which attracts a huge number of world’s large economic enterprises, including Korean businesses. In the first 9 months of 2014, the province licensed certificates to 111 foreign direct investment (FDI) enterprises with a total capitalisation of over US$1.3 billion, including 82 RoK enterprises with combined investment of US$1.25 billion. Currently, there are 220 RoK enterprises operating in the province, contributing significantly to the value of industrial production, creating jobs for local workers, thus, promoting the province’s socio-economic growth. Thanh stressed that Bac Ninh will create favourable condition and ensure security to help businesses effectively operate in the locality, hoping that the Korean delegation will continue to choosing the province as its ideal investment destination. The Jeonju city’s enterprises highly appreciated investment environment in Bac Ninh province, confirming that this visit will be an opportunity for RoK investors to comprehend the investment opportunity better. After the meeting, the RoK delegation also visited REFTECH limited company and VSIP industrial park in Bac Ninh province. Greater A forum on the Greater Mekong Subregion (GMS) development was held in Phuong Huu Viet, Chairman of the Vietnam-Laos-Cambodia Association for Economic Cooperation Development said the forum brings about practical benefit for Vietnamese businesses, especially investors in ASEAN, and help them share information and propose ideas for integrating into the ASEAN Economic Community (AEC). Viet hoped that businesses will access useful information to prepare for integration in AEC 2015. Participants at the forum discussed the State management agencies’ role in guiding and supporting business in finding solutions to obstacles. Vu Van Chung, Deputy Head of the Foreign Investment Agency (FIA) said in the economic integration many Vietnamese enterprises will face challenges on their home turf and find it difficult to penetrate other ASEAN markets, and even some will stop their operation. Chung added that Meanwhile, Deputy Minister of Planning and Investment Nguyen Van Trung said AEC 2015 will open both opportunities and challenges for According to the FIA, ASEAN businesses have invested in 55 out of 63 provinces and cities in An Giang attracts US$164 million in FDI An Giang province has licensed 13 foreign direct investment (FDI) projects with a total registered capital of US$163.8 million since the beginning of the year, more than US$8.6 million of which was disbursed. The high increase was attributed to The provincial Department of Planning and Investment reported that An Giang has so far had 33 valid FDI projects with total registered capital of US$213 million. Of which, 20 projects are put into operation, 7 projects are being implemented, and the remaining are yet conducted. The province is also taking measures to complete mechanism, policy and information technology platform. Accordingly, the information network plays an important role in providing legal information on business registration to help organisations and individuals be accessible to the legal status of enterprises. Rose prices go through the roof Flowers, cosmetics, and new clothes are on top of the list of gifts given on Vietnamese Women's Day, October 20. A variety of flowers are available in the market, including roses that keep for several years and imported ones. According to sellers at traditional markets and flower shops, rose prices have increased sharply. At Ho Thi Ky flower market in District 10, a bunch of 50 roses is selling at VND200,000-220,000, a markup of more than 50 per cent from recent days. The prices are expected to increase further, the traders said. Nguyen Thanh Tu, in charge of online marketing at Da Lat Hasfarm, told Viet Nam News that the prices of roses and moth orchids would be hiked slightly due to the high demand. But the company would not increase the prices of other flowers like daffodils and chrysanthemums, she said, adding it is offering discounts of 20 per cent to customers buying from its web shop. At flower shops in Shops are also selling various kinds of flower baskets to meet the demand. To attract shoppers on the occasion, flower shops, supermarkets, shops, and malls are offering gift as well as attractive promotions. Big C is offering discounts of up to 50 per cent on more than 1,000 cosmetics, accessories, and fashion items until November 3. Co.opmart is offering discounts of up to 49 per cent on 600 women's care products until October 26, while Lotte Mart has cut prices of more than 500 products until October 23. High street fashion shops and malls and e-commerce websites are offering sharp discounts to boost sales. BIDV teams up with Japanese banks to facilitate investment The Bank for Investment and Development of Viet Nam (BIDV) has signed a memorandum of understanding (MoU) with two Japanese banks, namely Minato Bank and the Bank of Yokohama (BOY). The MoU aims to strengthen the support extended to Japanese customers in expanding investment and businesses in Under the agreement, Minato Bank and BOY will help their customers in getting better access to information on the investment environment, legal regulations and taxes in In addition, the two banks in co-operation with BIDV will provide financial and banking products and services such as payment, foreign currency purchase and commercial funds. They will also provide credit, derivatives products and services to support the mergers and acquisitions by Japanese businesses. BIDV established BIDV Japan Desk in Ha Noi in November and opened a branch in The bank so far has co-operated with 17 financial institutions in Minato Bank, established in 1949, is the 63rd largest bank in The bank provides wholesale and retail banking services, asset management and capital and monetary markets, as well as commercial banking and mergers and acquisitions. BOY is the 13th largest bank in The bank was given a stable outlook rating by Moody's last month. Ha Noi hosts annual investment meeting Deputy Prime Minister Hoang Trung Hai affirmed the Government's policy of attracting investors to The meeting drew hundreds of foreign investors and partners seeking business opportunities in the country. Despite the severe impact of the global economic crisis, he said, Hai said he highly valued domestic organisations and businesses that took the initiative to stimulate investment, enter into cooperation agreements with international partners and form joint-ventures in an effort to diversify Andy Ho, VinaCapital's general director and head of Investment, forecasted coming investment opportunities for investors, as well as the growing potential of Low inflation and decreasing interest rates had improved the country's investment environment, said Ho. The event also provided investors the opportunity to brief each other on cooperation strategies for infrastructure investment, real estate and capital market development. This is the ninth annual conference of VinaCapital, which started in 2003. VinaCapital announced a plan to make one of its investment funds, Vietnam Infrastructure Ltd. (VNI), open-ended. The fund would be split into two parts, one for infrastructure development projects and the other for a portfolio of listed shares, Ho said. An ongoing national trend of converting closed-end funds into open-end ones that allow capital investors to withdraw from the Vietnamese market more easily prompted the decision. But VinaCapital is not considering changing any other subsidiaries, such as the Vietnam Opportunity Fund Limited (VOF), as they are not suited to the open-end model. VNI was formerly a closed-end fund, with net assets worth more than US$231 million at the end of September. It mainly focused on projects in telecommunications, petroleum, industrial parks and urban development. Software enhances customer relations Standout organizations empower their customers, partners and employees by becoming social businesses that connect, engage and deliver breakthrough business results, a company CEO suggests. Speaking to Biz Hub, Rick Yvanovich, founder&CEO of TRG said at a company event in But it can help organisations of all sizes work smarter, become more agile and foster innovation. Social business is about processes, productivity, collaboration, and offers quick access to data the company needs. Most office workers spend 28 per cent of their day on email, so time spent on email can be decreased by introducing social networking communications into a business. Apart from social business solutions, speakers from TRG International and its partner, Infor, spoke about the latest strategies in financial management, enterprise performance management, and gave tips for optimising their current financial systems. "By updating the latest enhancements to our solutions, TRG customers save time and become more productive. It can help them visualise their growth," Yvanovich said. TRG International hosted its annual Customer Day event for 100 financial experts from 70 companies operating in financial services, insurance, oil&gas, hospitality, aviation, healthcare and education. Vietnamese exports to Vietnamese exports to The project manager added that a sharp increase in two-way trade turnover is also one of major important factors that have contributed greatly to developing bilateral relations between the two nations. However, Mr Zaki Munshi said businesses should strictly comply with procedures to boost exports to the Canadian market by devising sound market strategies. Especially, he emphasised the need to study the market demand and learn about the legal environment. At present, Canadian consumers tend to favour traditional products that are good to health. Therefore, Vietnamese businesses can fully tap these factors to export products meeting the demanding Canadian consumer tastes, he stressed. Vo Tan Thanh, director of Vietnam Chamber of Commerce and Industry, Especially, Vietnamese and Canadian goods are supplementary rather than competitive, so there are huge opportunities for future cooperation to bring economic benefits to both nations. He stated that Vietnamese farmers to improve skills overseas The People's Committee of the central province Quang Ngai is planning a project to send farmers abroad to participate in study tours and training courses from 2015-2020. Under the VND8 billion (US$377,040) project, the province will send 120 to 150 farmers and managers of farms and agricultural cooperatives to They will learn from foreign experience in building new-style rural areas, developing models of economic cooperation in agriculture, managing large-scale farms management, as well as preserving and processing products. They will also study how to build brands for agricultural products and apply advanced technology in production to increase added values. After the study tours, the trainees will become a major force that actively contributes to the new-style rural area building movement in the locality, Tho said. Quang Ngai province has more than 286,200 households living on farming, aquaculture, handicrafts and agricultural services, accounting for 46% of the total population. Seminar boosts Vietnam’s investment promotion in Philippines The Vietnam Embassy in the Speaking at the seminar, Duong said there exists a good opportunity for cooperation in education and training between the two sides. Cebu has more advantages in English training than He also confirmed his ambassador’s readiness to serve as a bridge to connect Vietnam Trade Counsellor Vu Viet Nga introduced cooperation opportunities in the field of trade and investment expansion measures for Deputy Head of the National Agency for Science and Technology Information Le Thi Khanh Van announced at a press conference on October 16 that Techmart 2014 is set to take place in "This year’s expo will focus on recent scientific achievements and bio-technology application in the fields of health, pharmaceuticals, agriculture and environment,” said Ms Van. In The event aims to help the business and scientific communities collaborate on the latest advanced technologies in a concrete and practical manner. Russian inspectors to examine Vietnamese seafood The Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) is set to arrive in Hano in October 20 to perform a food safety inspection of Vietnamese seafood to determine if it is fit for import into the Eurasian Economic Community. The National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) under the Ministry of Agriculture and Rural Development has distributed a document requesting seafood enterprises to prepare to register their export products. Cosmetics firms seek makeovers Vietnamese cosmetics producers are trying to regain domestic market share by developing new natural products and enhancing their presence in modern distribution systems. Online news website VnExpress also quoted a Nielsen market survey as saying that spending for cosmetic products per capita among Vietnamese consumers remains modest at only $4 every year, compared with spending for cosmetic products per capita among Thai consumers at $20 per year. Based on this, the market potential for According to the HCM City Chemicals and Cosmetics Association, the country currently has more than 400 cosmetic companies, but only 10 of them are well known. Currently, about 90 per cent of domestic cosmetics market share belongs to foreign companies. Nguyen Kim Thoa, chairwoman of the HCM City Chemicals and Cosmetics Association, said it was difficult for Vietnamese cosmetic products to compete against imported products, as most domestic producers were small and medium in scale and lack capital for investment in technology, product development and trademark promotion. Most of the cosmetics made in Ly Nguyen Lan Phuong, general director of Sai Gon Cosmetics Company, admitted that her company's distribution network was mainly in rural areas and outdoor markets. The company sells roughly 500,000 perfumes every year, but exports to It is the same with the Lan Hao Cosmetic Company, whose key markets are located abroad in spite of its 30-per cent growth rate in the domestic market, said Huynh Ky Tran, the company director. Domestic companies are attempting to regain domestic market share by setting up and developing their distribution systems. Their presence in supermarkets nationwide is gradually increasing. Phuong of Sai Gon Cosmetics Company said that besides improving quality and packaging, her company has also increased the presence of its products in big city supermarkets and opened stores to showcase its products. Meanwhile, Tran of the Lan Hao Cosmetic Company said his company, like other domestic cosmetic producers such as Vinh Tan Technology, TMTM and Hoa Thien Phu Cosmetics, have rapidly capitalised on rising customer preference for products made of ingredients from Mother Nature rather than human laboratories. Hoa Phat Group leads steel sales Figures from the Viet Nam Steel Asssociation (VSA) showed that in September, total building steel consumption was estimated at 443,200 tonnes, an 8.7-per cent month-on-month increase and a 25.3-per cent year-on-year increase. The association said the selling prices of building steel last month were lower than those of the previous month because of decreasing prices of materials. VSA predicted selling prices to increase slightly this month, considered the construction season that would witness higher demand for steel. According to the Viet Nam Prosperity Bank's Securities Company (VPBS), Hoa Phat Group still had the largest market share in the building steel and steel pipe segments with 18 per cent and 19.8 per cent, respectively. The group also accounted for 19 per cent of the market's steel pipe market share with a total consumption of 152,700 tonnes in the past nine months. The General Department of Customs has sent a document to cities and provinces on imposing anti-dumping duty from October 5 on stainless steel products imported from four countries. The Ministry of Industry and Trade's Decision No 7896/QD-BCT imposes duty ranging from 10.71 per cent to 37.29 per cent on cold-rolled stainless steel products from mainland China, Taiwan, Indonesia and Malaysia. Retail industry needs support Besides efforts made by enterprises to improve their competitiveness, the Government must develop new policies to assist local retailers in an increasingly competitive business environment, heard a seminar in "International integration creates many business opportunities, and we can utilise these opportunities or not depending on our internal restructuring," said Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM). He said that enterprises must focus more on improving competitiveness. Phan The Rue, former chairman of the Viet Nam Retailers Association, said that government agencies, businesses and consumers must take action now. "I think Vietnamese businesses should focus on building infrastructure and training human resources. They need to re-organise the retail system, especially to meet the needs of competitiveness in the global economy, " Rue said. Enterprises said they expected the government to create a favourable business environment and more equality between domestic and foreign enterprises. Vu Kim Hanh, chairwoman of the Business Association of Vietnamese High Quality Products, said under the country's WTO commitments, expansion plans of foreign retailers were subject to the Economic Needs Test (ENT), which limits foreign access to domestic markets. However, several provincial authorities have granted licenses to open new retail outlets without paying attention to ENT, she said. She said the Government should focus on the vital role of consumption in the value chain, because, without it, manufacturing could not develop. In addition, trade fraud should also be strictly dealt with to protect the rights of authentic manufacturers and distributors, she added. State agencies should also conduct better research, and inform businesses of international regulations in a timely manner. Support policies offered by ASEAN members to their local retailers should be studied as well, she said. With the current economic situation, the retail market will not obtain higher growth as in previous years, according to Cung. However, Le Huu Minh Quan of Nielsen said the retail market has potential in the long run, adding that modern trade channels would develop well in coming years. More attention should be paid to the lucrative rural market, he said. The seminar was organised by the Business Association of Vietnamese High Quality Products, the Central Institute for Economic Management, the Leading Businesses Club and the Young Businesspeople Association. Smuggled sugar hurts domestic firms Several sugar companies are saddled with increasing inventory because of imported and smuggled sugar, according to figures from the Ministry of Agriculture and Rural Development. The figures showed that as of September 15, the sugar inventory at factories was estimated at 280,000 tonnes, a year-on-year increase of 58,690 tonnes, while the amount of sugar sold was 92,000 tonnes, a year-on-year decrease of 10,000 tonnes. Nguyen Thanh Long, chairman of the Viet Nam Sugar and Sugarcane Association, told a forum for enterprises in the agricultural sector held here on Wednesday that the biggest difficulty of domestic sugar companies was smuggled sugar. Long said sugar consumption at domestic factories was at 50,000 to 60,000 tonnes during the lean season and 80,000 to 90,000 tonnes during the peak season while it was previously 130,000 to 140,000 tonnes during the peak season. This is because smuggled sugar had stolen the market share of domestically-produced sugar. He added that the permissive licence granted to sugar producers and businesses has resulted in an increase in smuggling activities. He also revealed that several companies have applied for licences to legalise the trading of smuggled sugar. The massive import of sugar has also put pressure on domestic companies. Bui Thi Quy, chairman and general director of the Con Long My Phat Sugar and Sugarcane Company, said the Government allowed the importation of 70,000 tonnes of sugar, and this has led to a larger sugar inventory for domestic enterprises. Samsung chooses few Vietnamese suppliers There are only four Vietnamese enterprises among 67 suppliers that provide materials to South Korean firm Samsung Electronics Vietnam Company Ltd (SEV), the Dau tu (Vietnam Investment Review) newspaper reported. These four Vietnamese firms are the Goldsun Packaging and Printing JSC, the Thang Long Packaging Production Export–Import JSC, Viet Hung Packaging Company Ltd and Nam A Company Limited. Of the 67 suppliers of SEV, 53 are from SEV, owned by Samsung Corporation, is located in the Yen Phong 1 Industrial Zone in the On September 11, the Vietnam Association of Foreign Invested Enterprises (VAFIE) and SEV organised a conference and an exhibition on spare parts that SEV needs to produce in VAFIE chairman Nguyen Mai said that more than 50 enterprises interacted with the SEV representatives at the conference. He expected that about 15 to 20 firms will become the South Korean firm's suppliers in the future. Vietnamese and Japanese business owners met in the Japanese cities of They included 25 Vietnamese enterprises and 220 host partners, who were given an overview of During the event, Japanese businesses expressed their hope for more assistance from Vietnamese authorities in setting up and expanding operations in the country. Co-hosted by the Vietnamese Consul General in Singapore Airlines to fly more frequently to City Singapore Airlines yesterday announced three more weekly flights between It said the new flights, also Airbus A330, would offer good connectivity with its extensive network covering destinations like The airlines also announced a promotion for frequent flyers on the inaugural flight on December 19 with all-in fares starting at VND3.11 million (US$147) in economy class and VND9.9 million ($471) in business class. They are available on the carrier's website from October 16 to 18. An exhibition of machinery and equipment, materials, and accessories used in the textile and garment industry will open in The four-day Vietnam Textile and Garment 2014 has attracted 200 companies from 10 countries and territories including They will set up 300 stalls to display power looms, knitting machines, embroidering and sewing machines, chemicals, technologies for printing on fabrics and other products. The Tay Ho District People's Committee supported the idea of moving floating restaurants operating in Part of the reason the committee would move the restaurants was the pollution they caused, vice chairman of the committee Do Anh Tuan said at a press conference on Monday. Nine restaurants float alongside The committee recently disciplined two floating restaurants for polluting the lake, he said. The floating restaurants would be required to seriously obey regulations on environmental protection while being moved to Bay Pond, Tuan said. The committee also started working with the Ha Noi Sewerage and Drainage Company to treat the waste water they're discharging. A recent investigation by the police department showed that five of the floating restaurants – Eureka Coffee, Phuong Van Vinh, the deputy head of the West Lake Management Board told Tien Phong (Vanguard) Newspaper, said the five floating restaurants had been operating long before a 2009 decision was made that only allows them to get business licences if they have tourism operating licences issued by the People's Committee. But according to the Law on Tourism, the committee did not have the right to issue them tourism operating licences, he said. No legal precedent existed for the committee to follow in this case, so the transport department had not yet given business licences to the five floating restaurants. Loading restriction signs removed from bridges The Directorate for Roads of Viet Nam (DRVN) removed loading restriction signs from nearly 1,000 bridges nationwide during a three-month inspection process. Four DRVN inspection teams examined and eliminated inaccurate load restriction signs on 943 of 1,488 bridges on the national highway system. Meanwhile, some loading restriction signs were found unnecessary for small culverts and bridges. The DRVN posted restriction signs on 490 bridges after the inspections, while the remaining 55 kept their old signs. Those bridges had low loading capacities or were under construction, thus it was impossible to examine their real loading capacities. The data on all the examined bridges will be stored in the Viet Nam Bridge Management Software by the DRVN to categorise the bridges based on their quality status and to help the unit plan to fix the weak ones. During the inspection, the DRVN also removed all speed limit signs of under 40km/h on the national highway system. "Limiting speed to under 40km/h on the highway actually did nothing but hindered the traffic flow and caused congestion," Deputy Minister of Transport Nguyen Van The said. Additionally, as many as 614 inaccurate speed limit signs were removed, as they caused misunderstandings and blocked drivers' vision. IHI to expand aircraft-engine business in Although accounting for 60 – 70 percent of the jet-engine market share in IHI is currently hosting three projects worth a total of 100 million USD in the The corporation has also taken part in a number of Vietnamese infrastructure projects using loans sourced from Japanese Official Development Assistance (ODA) such as the construction of These projects in Ben Tre’s longan ready for US market Longan fruit from the Mekong Delta The Animal and Plant Health Inspection Service (APHIS) under the US Department of Agriculture (USDA) issued an import permit for longan fruit grown in Tam Hiep commune, Binh Dai district after its strict inspections there. The commune currently has 34ha of longan orchards that apply the VietGap model and meet the It grows longan on more than 550ha in total, and is currently trying to meet its full potential by expanding the production model to more households in an effort to increase the amount of approved producers and receive more orders from exporters, a communal official said. Vietnamese longan fruit were approved for export to the Before the longan fruit, rambutan grown in Tien Long commune in Ben Tre province was also granted an import permit for the More opportunities for business cooperation are emerging for Vietnamese and Norwegian businesses, especially once the free trade agreement between Jointly organised by the Vietnamese Embassy in The embassy’s Trade Counsellor Vu Chien Thang pointed to Duong Ngoc Tuan, Director of Hai Phong’s Planning and Investment Department, introduced participants to the northern port city’s business environment. He expressed his hope to boost exports of footwear, garments and seafood to Representatives from several Norwegian companies, such as ORKLA ASA, EWOS Group and SN Power, shared their experience in operating in Difficulties in running a business still remain, they said, however, the challenges could be dealt with if enterprises abide by the law and coordinate closely with Vietnamese partners. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR |
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