finance & business news 26 July 2017 · Grant Thornton: Upscale hotel segment to soar in 2017 22 Online business registration beyond expectations 23 Vietnam leatherworkers, shoemakers

26 July 2017

finance & business news

FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Reference exchange rate up 4 VND 1Government studies making use of idle dollars, gold 2Will SBV remain firm on 0pct USD interest rate policy? 3Vietnam confronts 'adversity' in borrowing 4Banks offset losses to expand customers 5How to keep foreign currency in the country? 6Foreign capital starts to support insurance companies 7Insurers rush to lift foreign-ownership ceiling to improve ratings 9Agribank branch top leaders prosecuted for causing losses 9Manufacturing, processing industry lures FDI 10Asean creates a base in Vietnam 10Aluminium exports reach $50 million 11Dak Nong earns 50 million USD from aluminium export 11Italian investors keen on exporting agri machinery to Vietnam 12An Giang targets 800 million USD in export turnover 12Rice export to Philippines seen harder 13Vietnam removes HK from steel dumping list 14Experts deny worries over trade deficit towards Korea 14Longan production down, price up 15Rubber plantations urged to obtain certification 16Improve implementation of tobacco tax policies, Asean urged 16Ministry issues wholesale electricity price 2017 17Govt urges caution in issuing new aviation licenses 18Government gets tough on food safety violations 19Real estate most popular for investors 19Agriculture turns out to be promising land for investors 20Packaging and printing industry on the rise 21Hospitality wins big from casinos 21Grant Thornton: Upscale hotel segment to soar in 2017 22Online business registration beyond expectations 23Vietnam leatherworkers, shoemakers look to EU for salvation 23Vietnam presses on with trade promotion in Italy 24Vietnam to promote tourism in Western European nations 25Japan's Chiba eyes enhanced links with Vietnamese localities 25Aussie firms seek VN investments 26

BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Business Briefs July 26, 2017 27Shares weaken on poor investor sentiment 27

Investors offload penny stocks 28UPCoM alone in losing ground 28Government to punish recalcitrant SOEs 29Sabeco says has selected consultant for State divestment plan 30Mai Linh taxi to list on UPCoM 30Facebook traders face taxation anxieties 31Equitised businesses face penalty for not listing on stock market 32Back to school shopping kicks off 33Danang Tourism Association proposes to demolish 40

illegal villa foundations 33Danang-Quang Ngai expressway ready next month 34VAMA publishes top 10 least wanted cars in first half 34Vietnamese farmers mix salt with water to raise shrimp 35Quang Nam to build $26.5m railway flyover 36PM: Any repeated violations will lead to Formosa closure 36Second generation Vietnamese-built smartphone to hit

shelves next month 37Pure Storage introduces data platform for VN businesses 38Southern Power Corporation develops key electricity projects 38HCM City, Lotte group seal deal to build Eco Smart City 39Dutch company signs wastewater contract in south 39FPT reports H1 results 40Digiworld records high profit in Q2 40Vietnamese firm signs trade MOU with Iranian company 41US company seeks to build solar energy plant in Can Tho 41Vietjet Air, Japan Airlines ink cooperation deal 42Australian brewer eyes Sabeco and Habeco shares 42CJ CheilJedang announces vision for VN food business 43Dung Quat oil refinery works on expansion project 43Binh Dinh's Chair speaks up for FLC Group 44Hanoi asks Uber to share database 45Annual Report Awards honour 2017 winners 45Activities kick-start ABAC 3 week in Canada 46Vietnam Export Forum 2017 expects to attract 400 businesses 46Vietnam Medi Pharm Expo to be held in August 46Chinese trade fair set for Hanoi in August 47VietFood & Beverage-ProPack 2017: a cavalcade of

international colours 47

FINANCE

Intellasia Tel: +844 2213 2244

FINANCEReference exchange rate up 4 VND

26/JUL/2017 INTELLASIA| VNA

The State Bank of Vietnam set the daily reference exchange rate for VND/USD on July 26 at 22,433 VND, up 4 VND from the day before.With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,106 VND and the floor rate 21,760 VND per USD.The opening hour rates at commercial banks saw almost no change from July 25.Vietcombank listed the buying rate at 22,695 VND and selling rate 22,765 VND per USD, the same as on July 25.The rates listed at BIDV are also unchanged from the day before at 22,700 VND (buying)

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Vietnam finance & business 26 July 2017

and 22,770 VND (selling).Techcombank cut its buying rate by 5 VND to 22,680 VND and kept selling rate un-changed at 22,770 VND per USD.http://en.vietnamplus.vn/reference-exchange-rate-up-4-vnd/115397.vnp

Government studies making use of idle dollars, gold

26/JUL/2017 INTELLASIA| VNS

How to mobilise idle foreign currency and gold from locals to invest in business and production has become a hot issue recently, with the government last week once again asking the State Bank of Vietnam (SBV) to consider proposals.At a working session with SBV last week, government Office chair Mai Tien Dung said the prime minister has asked SBV to study a more appropriate interest rate policy to encourage local US dollar holders to deposit the currency in banks, as the current in-terest rate of zero per cent discourages them to put money in credit institutions. At present, Vietnam still has to borrow dollars from international markets at 4 per cent interest, so there should be suitable policies to tap dollars at home, he noted.It is the third time the prime minister has mentioned the issue.Vietnam stopped the mobilisation of gold in 2011, and a similar move was applied for the dollar in 2015 when the zero per cent interest rate for dollar deposits came into ef-fect. The policies have contributed to restricting dollarisation and goldenisation in the economy and avoiding chaos in the market, with locals not using the dollar and gold as means of payment.However, with the application of the policies, for gold alone, it is estimated that there are currently some 500 tonnes held by the people, which would be very useful if con-verted into the dong to invest in the economy.A similar trend was also seen for the idle dollar source. SBV applied the zero per cent dollar deposit policy in December 2015, which has contributed to curbing dollarisation in the economy, controlling inflation and stabilising the macro economy. However, it has also prevented dollar holders from depositing the greenback in banks.As a result, some experts felt it is time to get rid of the policy while the dollar/dong ex-change rate was relatively stable and inflation was low.Tien Phong Bank director Nguyen Hung said it would be difficult to continue with the policy, especially with the US Federal Reserve increasing the interest rate. As the econ-omy's resources reach their limit, the benefits of adjusting interest rates higher to mo-bilise dollars to create new stimulus and generate a large source of capital for the banking system should be calculated, he added.Echoing Hung, banking and finance expert Can Van Luc also proposed to adjust the interest rate upwards, since according to his analysis, that local demand for dollar loans was very large.According to Luc, in the first half of 2017 alone, demand for foreign currency loans in-creased by some 5 per cent against 1.5-2 per cent in the same period of 2016. Commer-cial banks were borrowing dollars from abroad at an interest rate of 2.5 per cent per year. Mobilisation from the local people would be cheaper and not subject to several restrictions. This move would contribute to lowering both input and output interest rates while still avoiding a dollarisation situation, he said.If the interest rate was maintained at zero per cent, keeping dollars at home or depos-iting them in banks was the same, but if the three-month term had low deposit rates, such as 0.25 per cent, then people would consider depositing dollars in banks. This would generate a relatively stable capital source for banks. If the term was more than one year, the medium and long term mobilisation structure of the banking system would be raised, the expert analysed.Besides using banks as an indirect channel to mobilise dollars, Nguyen Van Thuan from HCM City Finance and Marketing University also proposed to use the stock mar-ket as a direct channel to attract the source.However, he said, the government should take more measures to make the stock mar-ket more transparent, with listed firms paying due heed to sustainable growth, to at-tract dollar and gold holders.To mobilise gold, Luc proposed to issue gold free interest rate deposit certificates, which the holders could mortgage at banks for loans.According to Luc, the measure was more flexible and would not increase goldenisa-tion in the economy. He said other countries such as India had been successful in ap-plying this measure; however, he noted that the application must be scrutinised and if it adopted, a suitable time must be chosen.Tien Phong Bank's Hung also affirmed that successful gold mobilisation to reinvest in

Intellasia 26 July 2017 2 / 48

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business and production would be beneficial, but it should have an appropriate policy as gold is quite different from money.Gold mobilisation is complicated and risky as its price depends on the global and do-mestic market, he said, adding careful scrutiny is required to make the mobilisation ef-fective.Experts also agreed that the most important thing was to keep the macro economy sta-ble and create a favourable business environment, explaining that gold and dollar holders would automatically convert it into dong when they found profitable oppor-tunities in a stable macro economy.http://bizhub.vn/news/govt-studies-making-use-of-idle-dollars-gold_287807.html

Will SBV remain firm on 0pct USD interest rate policy?

26/JUL/2017 INTELLASIA| TRI THUC TRE

At the working session of the prime minister's working group with the State Bank of Vietnam (SBV) in mid-July, Chair of the government Office sent the PM's message to SBV that the head of the government has repeatedly noted SBV to study the measures to mobilise gold and foreign currency from the population to put into production and business in order to serve the economy.After this direction, many experts said that in order to raise USD from the public, SBV should apply certain interest rates to the USD deposits in banks, as the mobilisation will be fairly difficult and limited if interest rates are kept at 0 percent.Dr Le Xuan Nghia is a typical representative from this group of experts. He said that as the current rate of dollarisation in Vietnam has dropped to a very low level of less than 10 percent, mobilising USD to meet domestic demand, hence, is reasonable. He affirmed that in order to accelerate USD mobilisation, it is important to have a regular interest rate mechanism for foreign currency deposits and loans, which means that there is a need to resume the foreign currency interest rate mechanism. Dr Nghia even recommended SBV to increase USD deposit rates to around 2.2 percent-2.5 percent per annum, as the application of USD deposit rates in the domestic should refer to the US's deposit rates as well as the US's inflation rate.Sharing similar opinion with Dr Nghia, many experts such as Dr Can Van Luc, Dr Phan Minh Ngoc, or leaders of many private joint stock banks have also suggested to raise USD interest rates to a reasonable level which is in line with the exchange rate and macroeconomic situation, probably ranging around 0.25 percent-0.5 percent per annum, or maximum of 1 percent per annum.Meanwhile, Dr Nguyen Tri Hieu believed that maintaining the current USD deposit rate of 0 percent is appropriate at the present time and the market should not be stirred up at this time. He suggested SBV to wait until the year end when there is new interest rate move by the US Federal Reserve (Fed). He proposed a rise of about 0.5 percent per annum.In the opposite direction, the recent report by analysts of SSI Retail Research gave in-formation supporting SBV to be steadfast to the current USD interest rate policy.According to SSI's experts, the USD/VND exchange rate has been fairly stable. Closing the last week, the exchange rates at banks remained the same at 22,700-22,770 VND per USD, while the floating exchange rates slightly fell by 30 VND, closer to the bank rates. Notably, SBV actively lowered the central reference rate by a total of 13 VND from 22,445 to 22,432 VND in the last week, and by another 3 VND in the first session of this week (July 24th). These were very timely and appropriate moves of SBV to stop the ex-pectation on the strong appreciation of exchange rate, after SBV raised USD buying rate.According to SSI Retail Research, the conditions to control domestic exchange rate are still fairly favourable as the USD continues to depreciate on the world market. The USD index fell sharply in the last week to only 94 points, the lowest level in a year. The prospect of the USD is not very positive as the trust of the President Trump's government is currently very low. The strong depreciation of the USD has pushed up the global gold price while the gold price in the domestic has only fluctuated slightly, helping to narrow the price differ-ence to two million VND per tail, equivalent to about 5.7 percent.


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Experts assessed that the global situation, gold market, and the prompt response of SBV in regulating the market have helped stabilise the exchange rate. Exchange rate stabilisation is an important factor to continue to be consistent with the current 0 per-cent USD interest rate policy.Experts even said that with stable exchange rate and fairly high VND interest rate of 6-7 percent per annum, holding VND is still beneficial not only for Vietnamese but also for foreigners or Vietnamese transferring remittances. Holding USD in foreign coun-tries (assuming that the Fed raises interest rates to 1.25 percent) is still less profitable than holding VN in Vietnam, even if the VND can devaluate by 2-3 percent over the next year. Compared to the same period of 2016, the USD/VND exchange rate of banks as well as on the free market has just dropped by 2 percent.In addition to the 0 percent USD deposit rate policy, SSI experts also believed that the management authorities may offer special products targeting those who are in two minds about keeping money or pouring money in Vietnam. The special bonds to mo-bilise remittances at competitive interest rates in the long term is an option. Raising foreign currency to offer low-interest rate loans to exporters is also an appropriate eco-nomic stimulus method as export sector is the leading driver of Vietnam's economic growth.

Vietnam confronts 'adversity' in borrowing

26/JUL/2017 INTELLASIA| TRI THUC TRE

Since 2012, on a sideline conversation with some reporters, an official of the Interna-tional Cooperation Department (the State Bank of VietnamSBV) said in a few more years, Vietnam's debt pressure will be greater.At that time, the main reasons were Vietnam has gradually overcome poverty to enter the threshold of a middle income country; preferences for foreign loans have reduced, borrowing costs have increased with more market based interest rates.In October 2015, again, in a press conference, Hoang Haideputy director of the Debt Management Department (Ministry of Finance), also mentioned the futurean immedi-ate challenge.The milestone was determined that since July 2017, Vietnam may no longer be eligible for ODA loans, mainly shift to using preferential loans and proceed to borrowing un-der market conditions.On some thematic forums, July 2017 was also officially presented as the milestone of a new period of high debt and cost pressure as aforementioned.In terms of vision, insiders and policymakers foresaw challenges and difficulties but, at the very moment of July 2017, the story of Vietnam's debt is once again indirectly mentioned as an "adversity".On the morning of July 18, at the meeting between the prime minister's working group and the State Bank of Vietnam, the request to study to mobilise gold and US dollars from the population was once again mentioned.A representative of the working group compared that while the government had to borrow through the issuance of foreign currency bonds on the international market with the interest rates of more than four percent per year, the US dollar deposits into the domestic banking system was zero percent per year. In addition, gold was depos-ited at banks in the form of keeping for customers.That comparison shows that the "adversity" of borrowing costs is becoming more prominent with the aforementioned milestone of July 2017the time when external con-cessional loans granted to Vietnam gradually decrease and external borrowing costs are more heavy.So why we do not and still have not been able to borrow gold resources from the peo-ple to be able to have lower costs, lessening the "adversity"?"It is true that the government has to borrow through international bonds at high in-terest rate of 4.8 percent per annum while the source of domestic gold and US dollars is like that. If the issue is to mobilise this resource for the government to borrow, then it is the matter of budget. Budget is approved by the National Assembly, but not that you can borrow anywhere and how much. Meanwhile, regarding the mobilisation re-


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lated to the budget, the focal point for development and implementation is the Minis-try of Finance, not the State Bank, said one expert of the State Bank of Vietnam.According to the aforementioned insider, over the last few years and so far, the bank-ing system still bears a large proportion of medium and long-term loan demand of the economy; the proportion of medium to long term credit in two recent years amounts to 54-55 percent of the total credit.The higher the proportion, the greater the risk of liquidity and interest rates. Mean-while, in the aforementioned "adversity", the government's borrowing sources until now are mostly long term, 3-5 years, even 15-20 years.In another direction, banks mobilise gold and US dollars to lend to boost credit. In this respect, the system of credit institutions over the years and now has not been short of money.Since 2012, the State Bank has annually had to follow the mechanism on allocation of specific credit growth targets to each member; the overall growth target is also tightly controlled. There must have strict control to prevent over-lending, not because of mon-ey shortages. In the first half of this year, a 9.06 percent increase in credit has started to cause concerns about the rapid pace of capital injection, as commented and warned by some international organisations in their reports in July.Right last week, the system showed signs of excessive money, the State Bank had to continuously withdrew a large amount through the issuance of T-bills. According to the study of Vneconomy, this status is associated with the scale of about 130 trillion dong budget deposits being stagnant in the system. This originated from the fact of slow public disbursement that the government had to discuss intensely early this month.In the perspective of the monetary policy regulator, in the published mid-year and fi-nal-year reports, dealing with gold and US dollar resources is explained in the concept of "transformation" instead of "mobilisation".For a long time now, the requirement of "mobilising" is understood as to mobilise and then lend through the banking system. Meanwhile, many times the State Bank leaders explained that it is actually the "transformation" of that resource into dong to go into production and business.As the article that VnEconomy has just mentioned, the transformation of gold is that instead of using billions of US dollars to import gold as many years ago when people queued up buying and pouring their capital into gold, this source of money over the past three years has no longer been "buried" into this channel; The amount hoarded in the population has self-transformed and has been sold out to meet the gold market de-mand, without having to spend money on imports.As for US dollars, the most obvious transformation is in the scale of national foreign exchange reserves that has increased dramatically over the past two years. As in 2016, despite low overall gross balance surplus, but the State Bank still bought about $10 bil-lion, mainly due to the conversion of US dollars in the population.Since the beginning of this year, import surplus has returned but the purchased amount still reached more than $1 billion, also coming from that transformation and the total amount of foreign exchange reserves reached the highest level ever with over $42 billion.

Banks offset losses to expand customers

26/JUL/2017 INTELLASIA| THOI BAO KINH DOANH

In March 2013, the State Bank of Vietnam (SBV) approved for commercial banks to charge on-net fees for ATM transaction. Of which, most banks collect fees for each ATM transaction to regularly maintain ATMs, offsetting investment costs for card technology.Recently, some commercial banks have maintained new customer attraction pro-grammes including the exemption of on-net money withdrawal and account transfer.Typically, ACB is carrying out the programme on exemption of money withdrawal fee for international Platinum debit card; Viet Capital Bank and SCB exempt money with-drawal fee for international and domestic debit cards. Some banks exempt money


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withdrawal fee in all ATMs of domestic banks nationwide such as TPBank and Bao Viet bank.As per some leaders, some banks are collecting no fee for the money withdrawal via ATM cards to offset the costs of machine purchase and periodical maintenance. Banks are allowed to collect a fee in ATM transaction. However, many banks are now willing to offset losses to expand customers.A bank representative said "Every ATM transaction fee of customers is subject to the bank. For example, for each external money withdrawal, the bank still has to pay 3,300 dong to the partner bank. Therefore, ATM operations have never been profitable".Meanwhile, representative of Viet Capital Bank said the free money withdrawal via ATM will encourage the people to make non-cash payment. This policy is being car-ried out with great contribution of banks.Apart from banks that exempt ATM service fee, most other banks have increased the fee collection for cards and ATM transactions. Most of the fees are being applied from 1,000 dong to 3,000 dong per transaction (depending on on-net or off-net transactions).For example, BIDV applies on-net cash withdrawal fee for the bank's ATM system at 1,100 dong per transaction (including VAT), and 3,300 dong per transaction for off-net cash withdrawal transaction. The interbank account transfer fee alone amounts to 11,000 dong per transaction.As per the calculation of some banks, the ATM network of banks now have more than 17,000 units across the country. If accounting, ATM card service business has been suf-fering from losses amounting to tens of thousands of US dollars per ATM machine. Be-sides, the cost of renting is more and more expensive, the annual maintenance fees are also quite large, so the interest from non-term deposits of cardholders are not enough to offset. Therefore, many banks do not apply this policy.In fact, some banks also affirm that the policy on exemption of money transfer via ATM is only applicable in a short time for some subjects and is not entirely free.Specifically, MaritimeBank is also exempting the first two transactions in a month for international debit card and SHB also applies to some domestic and international debit cards.As per financial and banking experts, this policy is within the retail banking develop-ment trend of banks, and is also the way that banks develop the number of individual customers and products, services for these objects instead of paying attention to the fee collected.This is also the premise for banks to promote other products and services such as Mo-bile Banking, Internet Banking, etc.However, when applying this policy, most banks have compulsory conditions for cus-tomers. Many banks require customers to maintain a certain minimum balance to get this service free; or customers are exempted from money withdrawing but the fee to have a card is higher than other banks; or banks exempt money withdrawal fee at all on-net ATMs but the maximum withdrawal limit is about 10 million dong per day.Commenting on this move by some commercial banks, representative of the state bank said this is not contrary to SBV's regulations. Banks may charge zero dong for custom-ers depending on the competition policy of each business. The regulations of the State Bank only aims at directing and laying the legal basis to prevent some banks' arbitrary collection of fees at too high or inappropriate levels.

How to keep foreign currency in the country?

26/JUL/2017 INTELLASIA| THANH NIEN

According to the US National Association of Realtors, the amount of money Vietnam-ese people spent on buying homes in the US reached up to three billion USD in 2016, three times higher than 2015. In fact, since 2007, Vietnam has been one of the leading countries in the number of foreign residential property buyers in the US. Economic ex-pert Dr Le Dang Doanh said that the three billion USD is just a statistical number in the US, not including the amount of money poured by Vietnamese in buying property in Australia, New Zealand, and Canada, etc.This is a specific and clear indication that the business environment in Vietnam has not


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made people reassured and satisfied in the long term. Thus, when earning a certain amount of money, instead of continuing to develop their business, people choose a saf-er way which is to buy residential property and settle in foreign countries. Dr Doanh analysed that "the management authorities should not overlook this sign but should consider this option seriously. If not, we not only lose a huge amount of foreign cur-rency but also lose business experiences, because when foreigners take over the market and business relationships, private enterprises will gradually get exhausted and be un-able to grow".According to Dr Doanh, to retain the resources, the investment and business environ-ment must be favourable and transparent. The government is showing the idea of in-stitutional reform, enhancing competitiveness, particularly supporting small and medium-sized enterprises in a drastic way.However, in fact, enterprises said that although the documents are improved, the progress is very low and the gap between policy, enforcement, and reality is very large. Dr Doanh stressed that there is a need to improve the mechanism of publicity and transparency in administrative management; a need to protect assets and to be happy with the legitimate wealth of enterprises and the people; and the need to protect their rights and interests. At the same time, an environment which welcomes and ac-cepts innovations should be created in order to retain enterprises. Dr Doanh also rec-ommended that Vietnam should improve medical services, enhance training, and invite foreign schools to open branches in Vietnam with similar educational pro-grammes to their headquarters, etc., in order to reduce the amount of foreign capital flowing abroad.According to experts, there are many factors that need to be done to retain capital out-flows, one of this is creating investment opportunities. Pham Binh An, director of WTP centre in Hochiminh citywho regularly meets with very young and dynamic enterpris-es which have plentiful ideas and enthusiasm to enter the market found an outstand-ing problem that enterprises' confidence in the stability of the policy is not guaranteed.An said that investors always observe the movements to find opportunities. For exam-ple, when the State carries out equitisation, private enterprises consider it an opportu-nity and will observe the equitisation to find out whether they can be involved. Or when a FDI firm enters the market, enterprises will study whether the policy creates the opportunities for them to access this production chain or not. It means that enter-prises wish to be treated fairly and equally on the market, so that they can compete transparently, An added.Citing the report of VCCI, economist Vu Quang Viet, who used to work for the United Nation, gave warning that the increasing corruption and the business environment in Vietnam are still an obsession for enterprises. Up to 66 percent of enterprises said that they had to pay money under the table, overly-high logistics costs, and many other costs. That cause them to see exhaustion of resources. Since more inspection will be carried out in larger the enterprises, many enterprises do not want to become big. This situation must be ended for enterprises to have a peace of mind for development.An emphasized that the foreign currently flows out or in depending on the trust and investment opportunities of enterprises. Certainly people will be willing to participate when there are greater opportunities in their home country rather than overseas.

Foreign capital starts to support insurance companies

26/JUL/2017 INTELLASIA| DTCK

Shortly after having foreign strategic shareholder, non-life insurance companies began to carry out new business plans with the support of this shareholder.Businesses with small market share mainly focus on restructuring the system, reduc-ing the compensation rate and seeking to gradually expand the market. Meanwhile, for businesses with large market share, the investment in technology upgradation is given priority to increase the utilities for customer service, thereby strengthening their position in the market.Answering the questions of shareholders about 2017 business targets at the recent an-nual general meeting (AGM), BIC representative emphasized that in 2017, the compa-


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ny sets the profit target to the top instead of revenue. Accordingly, the executive board of BIC also focuses on directing member companies to concentrate on this goal to achieve the set target.Currently, BIC has set up an Investment Committee, with the participation of two Fair-fax's foreign shareholders, targeting at effective and long term investment. In 2016, de-posit investment accounted for 80 percent of BIC's investment portfolio. In 2017, BIC continued to favour deposits, apart from adding a number of real estate investments, including headquarter investment.In addition, BIC is also conducting 19 groups of solutions on IT, focusing on solutions related to retail, and system ugradation with such functions as report rendering, etc.For Fairfax, this shareholder introduced a modern and integrated insurance manage-ment software system that used to be applied at some other Fairfax's venture compa-nies. However, as per the representative of BIC, to know exactly the adaptation of this system to BIC as well as Vietnam market, more detailed investigation is needed."The investment cost in the new IT system is entirely not small, ranging from at least $3 million and it takes at least two years to carry out", said BIC's representative.For PJICO, the three-way strategic partnership agreement among PJICO, Petrolimex and Samsung Fire & Marine Insurance (SFMI), along with the recently signed share purchase agreement between PJICO and SFMI, also promise to generate a big driving force in accelerating the growth momentum and business performance of this insurer in the next five years.Reportedly, the strategic investor SFMI will hold about 20 percent of PJICO's chartered capital. With 60 years of experience in the field of non-life insurance, ranking No. 1 in Korea and No. 23 in the world, SFMI is expected to flexibly apply its hands-on experi-ence to bring PJICO to a next level.At PTI, if VNPost brings about a nationwide sales and customer service networks, Dongbu is expected to help PTI improve its technology, finance and management ex-perience. Many comments suggest that the supplementation of two very important factors i.e. wide network and modern technology will be the "leverage" to help PTI de-velop strongly in the future.Reportedly, immediately after the cooperation with Dongbu, PTI has taken advantage of one of Korea's leading insurance companies in modernising its management and operations. Specifically, in the short term, PTI will focus on two areas where both PTI and Dongbu have strengths i.e. online sales and motor vehicle insurance.Accordingly, Dongbu will send the best experts to train and build the operating sys-tem at PTI, and at the same time, PTI will also send its staff directly to Dongbu to learn model and management skills. Next year, PTI and Dongbu will continue carrying out more projects in other areas such as human resource management, quality of service, brand development, etc.Dongbu is currently the second biggest insurance company in Korea, with $10.4 billion in original insurance revenue in 2010, and $480 million net profit. This turnover is 6.5 times higher than the total turnover of Vietnam's non-life insurance market in 2016."We are confident with such partners as Dongbu, so there is no policy to cooperate with other partners," PTI representative replied when being asked about the coopera-tion expansion.As for Dongbu, general director Kim Jeongnam said that when deciding to invest in PTI, we determined that PTI and Dongbu would be a family that worked together to bring PTI to continuous development."After two years investing in PTI, besides achieved results, we also highly appreciate the creativity and professionalism of PTI's Board of directors, especially during the current difficult structure transition period. Certainly in the future, Dongbu will spend a lot of resources in finance, human resources and technology to support PTI", said Kim Jeongnam.


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Insurers rush to lift foreign-ownership ceiling to improve ratings

26/JUL/2017 INTELLASIA| VIETNAMNET

A number of insurance companies are considering lifting foreign ownership to be able to improve their ratings and expand the market.At Bao Minh Insurance's (BMI) 2017 annual shareholders' meeting, a shareholder asked to lift the foreign ownership ceiling to 100 percent.Le Song Lai, a member of BMI's board of directors, said the issue needs thorough con-sideration and the government's approval.Two foreign shareholders Axa and First Land Company Ltd said they don't intend to increase their ownership ratios in BMI."First Land is optimistic about the Vietnam insurance market and will increase the ownership ratio once opportunities come," said Kwok Wing Tam from First Land.Axa and First Land are the biggest foreign shareholders in BMI. They hold 16.65 per-cent and 5.65 percent of shares, respectively.As for PVI Holdings, the shareholders have approved a plan to lift the foreign owner-ship ceiling to 100 percent. The national oil & gas group PetroVietnam will have to get approval for its plan to divest from PVI.Foreign investors now hold 49 percent of PVI shares, of which Global SE, the biggest foreign shareholder, holds 37.6 percent of voting shares.HDI Global's finance director Ulrich Heinz Wollschlager recently told the local press that PVI can become an important member in HDI global network (belonging to Ger-man Talanx insurance group). To do so, Talanx has to become the controlling stake-holder of PVI.At PJICO, Samsung Fire & Marine Insurance, the foreign strategic shareholder has not mentioned expansion. However, the sale of stakes for the first time to a foreign partner has important significance. PJICO late last week signed a contract to sell 20 percent of charter capital to the partner.According to Dinh Thai Huong, chair of PJICO, one of the reasons for the insurer to sell stakes to foreign investors is to improve the credit rating.Analysts have commented that the great contribution by foreign investors to the insur-ance market explains why nearly all insurance companies want to have foreign share-holders, despite the worry about hostile takeovers."PVI really wants to have foreign shareholders. After five years of undergoing restruc-turing (2011-2016), PVI has become a company with large-scale activities in the finan-cial sector thanks to the important contribution of HDI Global," he said.A report of the Vietnam insurance Association showed impressive growth of the life insurance market in the first quarter of 2017. The total insurance premium in the mar-ket reached VND12.34 trillion, an increase of 30 percent over the same period last year.http://english.vietnamnet.vn/fms/business/182422/insurers-rush-to-lift-foreign-own-ership-ceiling-to-improve-ratings.html

Agribank branch top leaders prosecuted for causing losses

26/JUL/2017 INTELLASIA| DTI NEWS

The Ministry of Public Security's Police Investigation Agency on Monday announced they had completed their investigation into the fraud and irresponsible actions related to lending at the Central Sai Gon branch of Agribank (Vietnam Bank for Agriculture and Rural Development).The police recommended criminal charges against nine suspects, including former branch directors Phm Th Mai Toan and Phi Thi Ong, former branch vice director Do Thi Yen, bank officers and directors of companies that falsified documents to get loans from the bank.According to the police investigation, American national Hoang Tien Dzung founded six companies based in HCM City and hired people to work as company directors to borrow money from the bank.The companies reportedly failed to pay the bank interest.Subsequently, in November, 2009, Dzung falsified a project to get a loan of VND90 bil-lion (US$4 million) to help the six companies pay interest. Fake documents were sub-mitted to the bank, claiming that one of the six companies A Chau Company had


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earned profits, while in fact, the company had incurred losses. Despite knowing the truth, Toan still approved the loan.Earlier, in April 2009, the Central Sai Gon branch offered a loan of VND75 billion ($3.3 million) to ADN Company, whose director is Hoang Van Cuong. Cuong also falsified documents that claimed the company needed investment for a rubber tree growing project in southern Binh Thuan Province.Former branch director Phi Thi Ong signed papers authorising the loan although she was aware that Cuong's company was unqualified for it.At present, Hoang Tien Dzung has escaped from Vietnam and police have issued a wanted notice for him.http://dtinews.vn/en/news/017004/52015/agribank-branch-top-leaders-prosecuted-for-causing-losses.html

Manufacturing, processing industry lures FDI


Vietnam's manufacturing and processing industry attracted 12,075 foreign-invested projects with a total registered capital of $180.68 billion as of late June, according to the Ministry of Planning and Investment (MPI)'s Overseas Investment Agency.At the Vietnam Business Forum recently held in Hanoi, deputy prime minister Vuong Dinh Hue reiterated the Vietnamese government's policy of considering the foreign-invested sector an extremely important part of the Vietnamese economy.Head of the MPI's Central Institute of Economic Management Nguyen Dinh Cung said foreign direct investment (FDI) flowing into manufacturing and processing industry is a positive sign, helping Vietnamese firms access advanced technology.Vietnam is in the period of golden population with over 6.3 million people of working age, giving the sector an edge to attract FDI.http://english.vov.vn/economy/manufacturing-processing-industry-lures-fdi-355283.vov

Asean creates a base in Vietnam

26/JUL/2017 INTELLASIA| VIR

Regional trade pacts and business climate improvements have made Vietnam become a manufacturing hub for Asean investors and firms.Rebecca Fatima Sta Maria, senior policy researcher from the Economic Research Insti-tute for Asean and East Asia (ERIA), said that under the institute's latest survey about the Asean investment situation, Vietnam has been considered by Asean as "a regional special investment destination"."Investment from Asean has been strongly flowing into Vietnam, focusing in many sectors, especially in the industrial manufacturing and processing sector," Maria said at last week's Hanoi-based conference on the 50-year anniversary of Asean, organised by Vietnam's Ministry of Foreign Affairs (MoFA) and ERIA.ERIA statistics showed that by late 2016, the total registered investment capital inflows into Vietnam from Asean (Cambodia, Brunei, Indonesia, Laos, Malaysia, the Philip-pines, Singapore, and Thailand) reached almost $60 billion for 3,127 valid investment projects. About half of that is concentrated into the manufacturing and processing in-dustry."The fact that foreign direct investment (FDI) from Asean went into the manufacturing and processing industry the most demonstrates Vietnam is emerging as an important industrial manufacturing hub of Asean, also thanks to its improved business and in-vestment climate," Maria said.Nguyen Quoc Dung, MoFA deputy minister and Vietnam's Asean SOM leader, said that Asean total registered capital into Vietnam has so far hit over $64 billion, the ma-jority of which [about 60 per cent] is focused on the manufacturing and processing in-dustry."Asean investors and groups are building Vietnam as a hub of their manufacturing and processing projects," Dung said.Recently, about 200 Indonesian medium- and large-sized firms, which had been doing business successfully in Indonesia and abroad, came to Vietnam to seek partners to set


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up joint ventures in many sectors, to produce such products as iron and steel sandpa-per, coal, cotton, gloves, industrial cables, tyres, organic fertiliser, hand tractors, and power tillers.The Indonesian firms include Gunung Steel Group, Pantheon Energie, Sinar Deli, Trias Indra Saputra, Sumberdaya Sewatama, Karya Hidup Sentosa, Citra Westlake City De-velopment, Infrastruktur Asia, and Excellence Qualities Yarn, among others.Indonesia's state-owned Semen Indonesia Group is seeking more opportunities to ac-quire construction material-making companies in Vietnam. Semen acquired part of Vi-etnam's Thang Long Cement JSC in 2013.Japfa Comfeed Vietnam, which began operating in Vietnam in 1996, said that it will expand production in Vietnam to raise its annual capacity to one million tonnes. Cur-rently it has five animal feed mills and 12 chicken breeding farms in Vietnam. Two years ago, it established a joint venture with the Netherlands' Hypor B.V. Company to produce global swine genetics in Vietnam.In another case, Thailand's SCG Cement and Building Materials spent $440 million buying out the domestic Vietnam Building Materials JSC. After this transaction, SCG's total annual cement capacity in Asean, excluding Thailand, rose to 10.5 million tonnes. In Thailand, the firm's production has an annual capacity of 23 million tonnes.ERIA's executive director Hidetoshi Nishimura validated the FDI inflow in saying, "Vietnam is a rising star in the region and the world.""Many regional and global firms have been well operating in Vietnam, such as Sam-sung, Canon, SCG, Central Group, IREKA, and Tan Chong. Vietnam is enhancing its competitive advantages in the global value chains. Asean, with its own free trade agreement (FTAs) and others with its partners, is offering numerous opportunities to Vietnam in luring more FDI, " added Nishimura.For example, the Asean Trade in Goods Agreement (ATIGA), which took effect on May 17, 2010, is focused on ameliorating non-tariff barriers as well as erasing tariffs. This includes enhancing customs cooperation, sanitation standards, and the process for quarantines.Under the ATIGA, Vietnam will have to reduce all import tariffs to 0 per cent by 2018 for goods imported from the Asean Economic Community. Vietnam has so far re-duced the tariffs to 0 per cent for almost of its product lines.Currently, Asean has FTAs in place with China, Japan, Korea, India, Australia, and New Zealand.http://www.vir.com.vn/asean-creates-a-base-in-vietnam.html

Aluminium exports reach $50 million

26/JUL/2017 INTELLASIA| VOV

The Dak Nong Aluminum Company has exported over 140,000 tonnes of aluminum and 24,000 tonnes of hydrate amounting to $50 million this year.Dak Nong Company, part of the Vietnam National CoalMineral Industries Group, produced over 242,000 tonnes of convert aluminum in that period.Its aluminum products are mainly exported to the Republic of Korea and Japan.The Dak Nong Aluminum Company, situated in the Nhan Co Industrial Zone of the DakR'Lap District, Dak Nong Province, began a trial operation in November 2016 and will start operating officially this August.http://english.vov.vn/market/aluminium-exports-reach-us50 million-355271.vov

Dak Nong earns 50 million USD from aluminium export


The Dak Nong Aluminium Company in the Central Highlands province of Dak Nong, part of the Vietnam National Coal and Mineral Industries Group, has earned 50 mil-lion USD from exporting 140,000 tonnes of aluminium and 24,000 tonnes of hydrate so far this year.The company produced more than 240,000 tonnes of aluminium in the period and ex-pects to generate another 230,000 tonnes by the end of this year.Most of their products are sold in the Republic of Korea and Japan.According to experts, Vietnam is endowed with a large amount of bauxite, with esti-


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mated reserves of 11 billion tonnes, mainly in the Central Highland region.The Dak Nong Aluminium Company, built at total cost of 16.8 trillion VND (739 mil-lion USD) with a designed capacity of 650,000 tonnes of aluminium per year, became operational in November, 2016 at Nhan Co industrial park in Nhan Co commune, Dak R'Lap district.http://en.vietnamplus.vn/dak-nong-earns-50 million-usd-from-aluminium-export/115353.vnp

Italian investors keen on exporting agri machinery to Vietnam

26/JUL/2017 INTELLASIA| VNECONOMIC TIMES

Pharmaceuticals also an area of potential, according to Italian Chamber Commerce in Vietnam.Agricultural machinery and pharmaceuticals will be two attractive areas for Italian in-vestors seeking investment opportunities in Vietnam in the years to come, Pham Hoang Hai, Secretary generale and Executive director of the Italian Chamber Com-merce in Vietnam (ICHAM), told VET.Many Italian businesses are looking for opportunities to boost their exports of machin-ery, especially agricultural machinery, to Vietnam because demand for agricultural technology is on the increase in the country.The importation of Italian machinery by Vietnamese enterprises has been limited in the past because of their rather high prices. "Though the price of Italian machinery is cheaper than German machinery, support policies for enterprises to buy machinery re-mains weak," Hai said. "Therefore, ICHAM is coordinating with agencies and banks to offer financial products to help Vietnamese businesses borrow money to buy ma-chinery from Italy."Pharmaceuticals is also an attractive sector that Italian companies hope to boost. There is no direct competition between Vietnamese and Italian pharmaceutical companies, Hai explained, as Vietnam's products are mass produced while those from Italy are specialised. But there remain many issues relating to technical barriers that the two sides cannot fully agree on.ICHAM and customs authorities in Vietnam and Italy are busy establishing a one-stop clearance programme, meaning that goods cleared in Vietnam will then be cleared in Italy, saving three days on container costs."Despite the long-term cooperative relations between the two countries, investments from Italy in Vietnam have been limited in the past," Michele D'Ercole, Chair of ICHAM, told VET. The first reason is knowledge, as due to the geographical distance, information about Vietnam in Italy remains quite low.Regardless, many Italian investors have invested more strongly in Vietnam over re-cent years. "I hope that in the future, with the EU-Vietnam Free Trade Agreement tak-ing effect in 2018, that Italian investments in Vietnam will be higher," D'Ercole said.Figures from Vietnam Customs reveal that Italy is the EU's second-largest exporter to Vietnam. Bilateral trade has increased ten-fold in the past decade, to more than $4.6 billion in 2016.http://vneconomictimes.com/article/business/italian-investors-keen-on-exporting-agri-machinery-to-vietnam

An Giang targets 800 million USD in export turnover


The Mekong Delta province of An Giang is striving to fulfill the target of 800 million USD in export revenue this year by promoting the shipment of rice, aquatic products and vegetables, a local official said.The province has assisted local enterprises in developing material areas while boosting the export of products with high added value, processed products, said Vo Nguyen Nam, director of the provincial Department of Industry and Trade.An Giang has focused on strengthening connections at home and abroad, increasing trade promotion activities, expanding markets and assisting local enterprises in at-tending fairs and workshops.The province has also regularly updated businesses on export markets and taken


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measures to remove difficulties for production firms.In the first seven months of this year, An Giang shipped abroad over 212,000 tonnes of rice, raking in 98.2 million USD, equivalent to 80 percent in volume and 94.3 percent in value of the same period last year.The export of frozen aquatic products reached nearly 73,000 tonnes, worth 139.4 mil-lion USD, up 3.89 percent year-on-year.Apparel exports totalled 10.13 million units, valued at 55.3 million USD, a slight fall in volume, but rising by 5.73 percent in value year-on-year.In the reviewed period, the province's export value exceeded 429.5 million USD, ac-counting for 52.3 percent of the annual target, up 1.69 percent year-on-year.http://en.vietnamplus.vn/an-giang-targets-800 million-usd-in-export-turnover/115368.vnp

Rice export to Philippines seen harder

26/JUL/2017 INTELLASIA| THE SAIGON TIMES

Vietnam's rice export to the Philippines, which opens an international bidding on July 25, is expected to face tougher competition as the latter has decided to shift trade from government-to-government (G2G) to government-to-private (G2P) importation.Early this month, the Philippines' National Food Authority (NFA) announced its plan to import 250,000 tonnes of rice under government-to-private (G2P) contracts to guar-antee competition and prevent corruption, instead of government-to-government (G2G) trade as previously.The change is feared to cause big problems for Vietnamese rice exporters penetrating the Philippine market, since rice exports to the Philippines over the years have mainly been performed by State-owned traders. In addition, new conditions for rice trade may also be barriers for private traders from Vietnam.Specifically, the volume of 250,000 tonnes to be imported will be divided to eight lots, comprising two 50,000-tonne lots and six 25,000-tonne lots.Prospective bidders may bid for any lot but a supplier can bid for a maximum of 50,000 tonnes only.Furthermore, the competition is likely to be fiercer as the Philippines has invited large corporations from India, Pakistan and some other countries besides Vietnam, Thailand and Cambodia as regular suppliers to the Philippines.A report by the Vietnam Food Association (VFA) shows that 12-13 local enterprises have registered to participate in the bidding.However, Pham Thai Binh, director of Trung An Co Ltd, said that only six Vietnamese enterprises may put their names down to join the bidding due to strict requirements.Those wanting to win any bid must have shipped the corresponding volume of rice to the Philippines in the past two or three recent years. For example, if an enterprise wants to bid for a 50,000-tonne lot, it must have sent at least 50,000 tonnes of rice to the Philippines.There are many Vietnamese enterprises shipping 100,000-200,000 tonnes of rice to the Philippines, but normally with only 3,000-5,000 tonnes for each shipment. Meanwhile, the number of rice traders with 25,000 or 50,000-tonne shipments remains modest, so Vietnamese firms find it hard to meet the requirements of the tender, said Lam Anh Tuan, director of Thinh Phat Co LtdTuan did not answer directly if Vietnam could win the tender but he advised enterpris-es not to set high prices.According to an announcement of the NFA, the winner will have to ship rice to the Philippines from August to September this year.Despite uncertainties over the rice export to the Philippines this time, domestic rice prices have increased over the past few days.Lam Anh Tuan of Thinh Phat Co Ltd told the Daily that the dried type of IR 50404 rice is being sold at VND7.200-7.250 a kilo, an increase of VND100-150 a kilo compared to last week.Meanwhile, traders in the Mekong Delta purchased a kilo of fresh IR 50404 rice at VND4.700-4.800, up VND100 a kilo versus last week.


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Vietnam removes HK from steel dumping list


Vietnam has lifted anti-dumping duties on galvanised steel imports from Hong Kong, according to the Ministry of Industry and Trade, Lao Dong newspaper reports.The ministry issued two decisions on anti-dumping measures, namely Decision 3584/QD-BCT dated September 1, 2016 on temporary anti-dumping duties and Decision 1105/QD-BCT dated March 30, 2017 on anti-dumping duties on galvanised steel im-ports from China (including Hong Kong) and South Korea.After a review, the ministry issued Decision 2754/QD-BCT on July 20, 2017 amending Decision 3584 and Decision 1105. Vietnam now removes anti-dumping duties on gal-vanised steel imported from Hong Kong in line with the Decision 2754.http://english.thesaigontimes.vn/55191/Vietnam-removes-Hong-Kong-from-steel-dumping-list.html

Experts deny worries over trade deficit towards Korea


Some experts have raised concerns over South Korea surpassing China in trade deficit, to become Vietnam's biggest import market, however, others claimed these worries unfounded and considered it normal as Vietnam is integrating into the world econo-my.Origins of trade deficit towards South KoreaSince April 2017, South Korea has taken over China to become Vietnam's biggest im-port market with $9.3 billion of trade deficit for the first four months of 2017, slightly larger than China in this period. For the first half of 2017, Vietnam's trade deficit to-wards South Korea totalled $16 billion, while it was $14.1 billion towards China.Many think that the leading position of South Korea derives from the huge import vol-umes of Samsung and LG manufacturing facilities in Vietnam.In a quarterly meeting, a representative of the Ministry of Industry and Trade (MoIT) confirmed that Vietnam's huge trade deficit towards South Korea was related to big South Korean enterprises in Vietnam, such as Samsung and LG."Samsung and LG's local factories have imported a large number of machinery, equip-ment, and materials for their manufacturing activities, leading to the growth of Viet-nam's trade deficit towards South Korea," the representative said.Vietnam has been importing from South Korea for a long time, but the import volume has significantly increased since 2008, when Samsung made its first large-scale invest-ment in the country, which resulted in an investment wave from South Korea. Cur-rently, Samsung has invested more than $17 billion in Vietnam and LG over $5 billion.From early 2017, Samsung Display Vietnam and LG Display Vietnam's expansion projects have raised the number of imports from South Korea. In addition, according to MoIT, as the Vietnam-South Korea Free Trade Agreement (VKFTA) became effec-tive, duties imposed on components and materials imported from South Korea dropped to zero, while duties on Chinese imports remained, meaning the increase in imports from South Korea is normal.No concerns over rising trade deficit towards South KoreaThere have been some concerns over the rising trade deficit towards South Korea, but Tran Thanh Hai, deputy director of MoIT's Import-Export Department insisted that this rising trade deficit was normal.The reason is that in the first half of 2017, big South Korean enterprises in Vietnam largely imported machinery and equipment. Besides, the increasing imports of oil and gasoline and textile materials from South Korea were also contributing factors.According to Dr Nguyen Duc Thanh, head of the Vietnam Institute for Economic and Policy Research, Vietnam's trade deficits towards China and South Korea are very dif-ferent. Imports from China are consumer goods, while those from South Korea are ma-terials, machinery, and equipment used for manufacturing. Thus, increasing trade deficit towards South Korea is normal and it should not be much of a worry.An economist told VIR that as Vietnam is more and more deeply integrated into the world economy, economic performance should be assessed in the global context."We have a trade deficit of $16 billion towards South Korea, but we have trade surplus


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towards other countries," he said.The economist took the example of Samsung which may import a lot of materials and components from South Korea to manufacture mobile devices, but exports the finished products all over the world, not only to South Korea.According to statistics of the general Department of Vietnam Customs, in the first half of 2017, Vietnam exported over $1.7 billion of mobile phones and components to South Korea, while the amount of such exports to the US was worth more than $2 billion.Moreover, the amount of mobile phones and components to the United Arab Emirates was $1.9 billion, to the UK more than $861 million, to Brazil $408 million, to India more than $240 million, and to Germany $860 million.Samsung has increased Vietnam's trade deficit towards South Korea, but at the same time, it contributed more than $40 billion to Vietnam's export turnover last year. This year, this amount may rise up to $50 billion.In addition, as the localisation rate of Samsung Electronics Vietnam in the northern province of Bac Ninh and Samsung Electronics Vietnam Thai Nguyen in the northern province of Thai Nguyen has increased to 57 per cent, the added value that Samsung has brought to Vietnam is considerable.Similarly, LG and other South Korean enterprises in Vietnam may import a large number of materials, machinery, and equipment from South Korea, but they also ex-port to many other countries.Heavy dependence on a single market is not good, but to accurately assess Vietnam's trade deficit towards South Korea, the matter should be considered in the global con-text.http://www.vir.com.vn/experts-deny-worries-over-trade-deficit-towards-south-ko-rea.html

Longan production down, price up


Hung Yen Province is expecting this year's main longan crop to decline in quantity and ripen a week behind schedule. As a result, prices have shot up by VND7,000 (31 US cents) per kilogramme.Doan Thi Chai, deputy director of Hung Yen provincial Department of Agriculture and Rural Development (DARD), said that due to high temperatures in the winter months of 2016 and the beginning of 2017, the amount of longan blossoms declined in some areas in the province.Chai also said that since production is expected to go down, the selling price will reach an average of VND35,000 to VND36,000 ($1.55 to $1.6) per kilogramme. A majority of supermarkets and big suppliers have signed contracts with farms and cooperatives in Hung Yen Province at $1.55 per kilogramme of longan.The decline in longan output may mean trouble for exporters, as the added 31 cents per kilogramme will put further strain on production costsfrom transporting and processing to conserving of the fruit, and ultimately drive up export prices.The DARD forecast earlier this year that Hung Yen longan farms would loose around 40 to 50 per cent of their annual crop.But at present, the total provincial output is approximately 32,000 to 33,000 tonnes, as opposed to 40,000 last year. Farmers and provincial authorities were able to save a large part of the harvest by using chemical and biological stimuli on the majority of longan trees, and the province's estimated turnover is just 20 to 30 per cent behind the normal harvest.Although the main crop is expected to go up in price, the early longan crop, which makes up about 10 per cent of the total harvest in the province, is priced lower than last year.Despite the usual demand for early crops, the price fluctuates from VND45,000 to VND50,000 ($2 to $2.2) per kilogramme, much lower than the previous years' price of VND70,000 to VND80,000 ($3.1 to $3.5).The DARD explained that this is due to yet another late lychee harvest, making the de-mand for longan drop as consumers are occupied with lychee, instead.


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Rubber plantations urged to obtain certification


Vietnam's rubber plantations need to obtain sustainable management certifications in order to raise product value and enter global markets, participants said at a workshop held in HCM City on Monday.Vo Hoang An, deputy chair of the Vietnam Rubber Association, said the rubber indus-try had developed strongly into having the largest cultivation area among the coun-try's industrial perennial plants, with 976,400ha last year.Vietnam ranks third in rubber output as well as export of natural rubber products in the world, he said. Enterprises exported more than one million tonnes of natural rub-ber worth $1.67 billion last year.In addition, processed rubber exports went up 17.9 per cent a year in recent years, reaching $1.64 billion last year. Export turnover of rubber wood and rubber wood-based products reached $1.54 billion last year, up 26.2 per cent over 2015."In recent years, the world has become increasingly concerned about the reduction of the area and quality of natural forests, which has a great impact on the natural envi-ronment and the ability to provide forest products," he said."The tendency to shift to using forest products that are legally sourced or certified for sustainable management in the world market has increased in the context of global cli-mate change," An added.Although Vietnam has started adopting international practices for sustainable forest management and forest certification, certified forests with sustainable management represent only a very small percentage of the total forest area in Vietnam.Le Thien Duc from the World Wildlife Fund Vietnam said about 229,700 ha of forest areas, largely plantation forests, have FSC (Forest Stewardship Council) forest man-agement certificates. Most of them plant acacia and melaleuca, while no rubber plan-tations have such certificates.The country has set a target to have 500,000ha of forest with forest certification by 2020, according to Duc.Vu Thi Que Anh, FSC project coordinator, said many countries issued regulations to allow only wood of verified legal origin to enter their markets. Natural rubber is an im-portant product worldwide, and a long-term and sustainable supply source is critical, she said.FSC's certification scheme ensure traceability of deforestation-free products from well-managed forests and generates assurance that product claims are truthful and credi-ble.In recent years, leaders of large rubber enterprises paid more attention to the impor-tance of forest certification.Truong Minh Trung, vice president of the Vietnam Rubber Group, said: "In the long-run, we must strive to carry out FSC certification. Each year, we liquidate about 10,000 to 12,000ha of rubber or one million cubic metres. If we have the FSC certificate, the wood will sell at prices 10-15 per cent higher," he added.Organised by the VRA and WWF Vietnam, the workshop aimed to raise awareness of sustainable rubber plantations and FSC certification for rubber enterprises in Vietnam.http://bizhub.vn/news/rubber-plantations-urged-to-obtain-certification_287803.html

Improve implementation of tobacco tax policies, Asean urged


Asean governments should do more to make their tobacco tax policies more effective, not only for health reasons but also for the budget generation.This was the recommendation under the tobacco tax index issued by the Southeast Asia Tobacco Control Alliance (SEATCA).The index was released during a regional workshop on strengthening tobacco tax ad-ministration in Siem Reap recently, which was attended by tobacco tax experts from Asean countries, including Vietnam, Cambodia, Indonesia, Laos and Myanmar.The index tracked progress of the tobacco tax policy against WHO FCTC Article 6 Guidelines and showed that while some countries have made significant progress in formulating and implementing tobacco tax policies, the region as a whole has ad-


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vanced at a slow pace in the past few years, outpaced by economic and income growth.According to the index, cigarettes are becoming more affordable in Asean countries.Thailand currently has the highest tax burden as a percentage of retail price (70 per cent), followed closely by Singapore (66.2 per cent) and Brunei (62 per cent). In con-trast, countries with the lowest tax burdens are Cambodia (25-31.1 per cent) and Laos (16-19.7 per cent).Vietnam, Laos, the Philippines and Thailand have successfully earmarked tobacco ex-cise revenue for tobacco control, health promotion and universal healthcare.Only four (Brunei, the Philippines, Malaysia and Singapore) out of the 10 Asean coun-tries tax all tobacco products in a comparable manner.Sophapan Ratanachena, SEATCA's Tobacco Tax Programme manager, said most countries had no long-term tobacco tax policies with regularly adjusted fiscal and pub-lic health targets."The major obstacles in some countries are the ineffective tobacco tax structures (such as Indonesia's multi-tiered system or those with purely ad valorem tax systems), weak tax administration and tobacco industry interference to weaken tax policy or reduce tax collection efforts," Ratanachena said.Based on international guidelines, the report urged Asean governments to carry out long-term tobacco tax policies that include public health targets, apply a uniform spe-cific tax system or a mixed system with a minimum specific tax floor and tax all tobac-co products in a comparable way.The governments should ask tobacco companies to periodically submit detailed finan-cial reports; establish a tracking and tracing system, including fiscal markings with a unique identifier, to reduce the risk and assist in investigation of illicit trade; prohibit tax-free or duty-free tobacco products; and carry out a code of conduct for all govern-ment ministries and officials that prohibits unnecessary government interaction with the industry."Legislating substantial tax increases, strengthening tobacco tax administration and protecting tax policy from tobacco industry interference are equally important for sav-ing lives, raising revenue and controlling illicit trade," Ratanachena said."This was echoed in a resolution adopted in June 2017 by the United Nations Economic and Social Council that not only gives due attention to the Addis Ababa Action Agen-da, which recognises that tobacco taxation can be an effective and important means to reduce tobacco consumption and healthcare costs and represents a revenue stream for financing development in many countries, but also encourages UN agencies to devel-op and carry out policies on preventing tobacco industry interference to ensure a con-sistent and effective separation between the activities of the United Nations system and those of the tobacco industry," she added.At the meeting, participants exchanged information, expertise and best practices in the management of tobacco taxes, identifying gaps and ways to strengthen the adminis-tration of tobacco taxes in Asean.http://bizhub.vn/news/improve-implementation-of-tobacco-tax-policies-asean-urged_287829.html

Ministry issues wholesale electricity price 2017

26/JUL/2017 INTELLASIA| SGGP NEWS

The Ministry of Industry and Trade on Monday said that it has approved average wholesale electricity prices applied by the country's largest power company Vietnam Electricity (EVN) to power corporations in 2017.The price must swing from VND1,117-1,551 per kWh. EVN is responsible for specify-ing the wholesale price for each corporation according to current regulations.In necessary cases, the price frame will be adjusted to suit fluctuations in electricity production and trading cost, revenue and profit norm of power corporations. EVN will calculate the adjustment and report to the Ministry of Industry and Trade for con-sideration and approval.The new wholesale electricity price frame is applied from January 1 to December 31, 2017.


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Govt urges caution in issuing new aviation licenses

26/JUL/2017 INTELLASIA| SGT

The government has just urged relevant ministries and agencies to strictly adhere to regulations on business conditions when considering new civil aviation licenses, say-ing investors must meet all prescribed requirements if they want to get the go-ahead.The approval in principle and issuance of business certificates in the aviation sector must be strictly considered in line with the prevailing regulations, according to the government Office's notice on a conclusion which deputy prime minister Trinh Dinh Dung made at a recent meeting.The move is to enhance the effectiveness of investment and business activities, foster the healthy and sustainable business growth, and ensure the absolute aviation safety and security.The civil aviation industry which remains a conditional business sector requires huge investment capital. It has direct impacts on national defense and security, foreign af-fairs and traffic safety, according to the notice, which is made in response to recent pe-titions by the Civil Aviation Administration of Vietnam (CAAV) asking the transport ministry to quickly give the green light to some potential investors.The deputy PM asked the transport ministry to guide investors to fully comply with laws on investment, civil aviation, and other regulations. Besides, the ministry was told to review those cases asking for air services licenses in a proper manner before seeking the PM's final say.In particular, he demanded the transport ministry work with the ministries of plan-ning-investment, finance, justice, and culture-sports-tourism, as well as relevant agen-cies to instruct Tan Cang Offshore Travel and Flight Services JSC to complete its files applying for a business license for general civil aviation services.Besides, the transport ministry was tasked with instructing Globaltrans Air JSC to con-duct regulatory procedures before its general aviation business license can be re-newed.Notably, the deputy PM asked the transport ministry to team up with the Defense Ministry, other ministries, sectors and localities to inspect and review the implemen-tation of the master plan for the aviation sector, and other relevant legal regulations. The results must be sent to the government prior to the end of next month.The government last year refused to approve an application for establishment of Viet-star Airlines, as the investor had yet to meet the chartered capital requirement. Its paid-in capital at the time was over VND70 billion less than the required VND700 bil-lion.More recently, CAAV sent a written inquiry to the transport ministry about the prin-ciple of establishing airlines, whether to follow the Investment Law or the Civil Avia-tion Law, together with Decree 92/2016/ND-CP on business conditions in the aviation sector.The decree stipulates a civil aviation firm must have chartered capital of at least VND700 billion to establish an airline with at least10 planes. However, at the time of application, Vietstar had only VND625.7 billion in an escrow account.CAAV said the Investment Law has made life more difficult for investors. For exam-ple, Tan Cang Offshore Travel and Flight Services JSC has yet to be granted an air busi-ness license though it had submitted the required VND700 billion, CAAV said.Last May, FLC Group, owner of Viet Bamboo Airlines Co Ltd (Bamboo Airways), sent an airline establishment request to CAAV, but failed to produce a financial confirma-tion statement as required by the current civil aviation rules.Projects in the air transport sector must be approved in principle by the prime minister, according to Article 31 of the 2014 Investment Law. If the required capital is paid in sufficiently, or the balance of an escrow account meets the minimum capital require-ment, a long time of consideration will also make life difficult for investors, as in the case of Tan Cang, according to CAAV.Therefore, CAAV proposed the transport ministry ask the prime minister to issue a business license for FLC Group pending the submission of a financial confirmation statement in a later date.


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Government gets tough on food safety violations


The Ministry of Health is drafting a decree detailing administrative sanctions against food safety violations, the government news website reports.Decree 178/2013/ND-CP on financial penalties against food safety violations which came into force in late 2013 has helped strengthen food safety controls, according to the health ministry.The decree has created a legal framework for the fight against those infringing food safety rules, and has facilitated the implementation of the Law on Food Safety.Administrative violations stipulated in the decree are adequate and clear. However, the decree has exposed some shortcomings.The National Assembly (NA) passed Penal Code No. 100/2015/QH13 and the amended Law on amendments and supplements to some articles of the Penal Code which con-tain multiple new contents. They have direct effects on administrative sanctions against food safety infringements.The NA also passed the Law on the government's Organisation No. 76/2015/QH13, which provides principles and regulations for decentralisation between central and lo-cal governments. Therefore, the draft decree makes clear the role of ministries and agencies in sanctioning administrative violations in line with the government's guide-lines.Especially, some regulations stated in the decree do not act as much of a deterrent. Hence, the draft decree is written in a way that imposes more severe penalties, addi-tional sanctions like suspending violators' operations for a certain period, and subse-quent remedial measures such as forced destruction of goods harmful to human health.Other administrative food safety violations which are prescribed in decrees on admin-istrative sanctions against labeling, quality, and advertising violations are included in the draft decree.This is why a new decree which would replace Decree 178 is needed. It also includes sanctions in violation of conditions for food safety and quality assurance in production and trade among others.http://english.thesaigontimes.vn/55206/Government-gets-tough-on-food-safety-viola-tions.html

Real estate most popular for investors


Real estate has become the most popular asset class among retail investors since gold and foreign currencies are not very profitable any more.Minh Hanh of HCM City's Tan Phu District, for instance, said: "I never put my money into saving accounts because I used to invest in gold and dollars. But now I invest my money in real estate and stocks because gold prices have decreased sharply and the gap between domestic and international prices is too big."Since 2010, gold has plateaued.The government has tightened gold management and banks are not allowed to mobi-lise or borrow gold any more.This year, the real estate market has gathered pace and been a magnet for investors.Duc Vinh of HCM City's Go Vap District said last October he had bought a piece of land for VND2.6 billion ($115,000) and planned to build a house. But half a year later, a buyer offered VND3.5 billion ($155,000) for it and he sold it immediately.But Vinh's profit is not considered huge in the current market situation.Hoang An, a broker in District 12, said now everybody wants to buy land because of high profits and liquidity.Things have turned on their head from a few years ago when prices were low yet it was difficult to sell land."Bank savings interest rates are very low, gold and dollars do not yield high returns and investors are looking for better investment opportunities," An said."Inflation has been controlled well in recent years and buying gold as a hedge has re-duced."


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Nguyen Hoang Minh, deputy director of the State Bank of Vietnam's HCM City branch, said the loans given to the property sector in the city are worth VND238 trillion ($10.6 billion) or 10.8 per cent of the total.The HCM City Real Estate Association reported that in the fist six months of this year lending to the sector increased by 6.35 per cent, 1.35 percentage points higher than in the same period last year.Real estate firms accounted for a full third of the 18,000 companies established in the city in the first six months of this year.http://bizhub.vn/property/real-estate-most-popular-for-investors_287808.html

Agriculture turns out to be promising land for investors

26/JUL/2017 INTELLASIA| VIETNAMNET

More and more investors have injected money into agriculture, even though the sector is believed to have many latent risks.In the first half of 2017, the major segments of agriculture such as cultivation, fisheries and forestry all prospered, with a 2.6 percent growth rate, contributing 0.43 percentage points to the growth of the economy.According to MARD, the total export turnover of the agriculture sector reached $17.1 billion, an increase of 13.1 percent over the same period last year. The export of key farm produce brought $9.1 billion, including $1.7 billion worth of vegetables and fruits, increasing by 44 percent.The outstanding loans disbursed under the government's policies on supporting agri-cultural development had reached VND1.148 trillion by the end of May 2017, up by 9.9 percent over the end of 2016.Agriculture, which is one of the five priority sectors for bank lending, now has a ceiling lending interest rate of 6.5 percent instead of 7 percent.According to director of credit department Nguyen Quoc Hung, after the government released Resolution 30 on the VND100 trillion credit package for hi-tech agriculture development in March 2017, outstanding loans provided to the sector increased from VND3.7 trillion to VND32.3 trillion. As such, the loans to agriculture increased sharply by 8.7 times within half a year.Most of the credit package has been disbursed for hi-tech agriculture projects (VND27.7 trillion), with VND4.6 trillion for clean agriculture production projects. To date, 4,125 clients have accessed the package, including 3,956 individuals and 168 in-stitutional clients.Vingroup, PAN Group, Hoang Anh Gia Lai, Loc Troi and NutiFood are well known as pioneering investors in hi-tech agriculture.PAN Group's farm produce has been exported to more than 20 countries and it plans to invest VND2 trillion more in agriculture projects through M&A deals.PAN's president Nguyen Duy Hung said PAN Farm, which focuses on exporting flowers to Japan, has successfully called for VND400 billion from IFC, SSIAM and SSI.More recently, NutiFood poured more than VND1 trillion into an agriculture project in Da Lak through the purchase of a 25 percent stake in Phuoc An Coffee. The company has 1,400 hectares of UTZ Certified coffee area.Loc Troi Group and Thaco, an automobile manufacturer, has cooperated to carry out a VND7.8 trillion agriculture mechanisation project, which runs a closed chain of pro-duction, harvesting, processing, transportation and distribution of farm produce to be cultivated on an area of 2,000 hectares in Thai Binh province.UDC, an infrastructure development company, has received approval from share-holders to add agricultural production to its major business fields, commencing on July 14.http://english.vietnamnet.vn/fms/business/182425/agriculture-turns-out-to-be-prom-ising-land-for-investors.html

Packaging and printing industry on the rise

26/JUL/2017 INTELLASIA| VN ECONOMIC TIMES

Recent seminar in HCM City introduced technical developments in industry and solu-tions in smart packaging to local enterprises.


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Vietnam's packaging and printing industry has been developing strongly over the last few years due to increasing demand triggered by rising local food consumption and exports, a recent technical seminar on the industry held by German Industry and Com-merce in Vietnam (GIC) in cooperation with Germany's Messe Dusseldorf Asia Pte Ltd in HCM City heard.Major challenges face the domestic packaging and printing industry, however, as new technologies are in short supply and those in use create only simple designs and pat-terns. Such challenges result in local enterprises not fully participating in global value chains and losing sustainable benefits.Solutions raised by industry insiders included the application of advanced technolo-gies in production, the use of new materials, and investment in modern production lines, to increase efficiency and ensure product quality.German experts introduced the development of the world's packaging and printing in-dustry, technological solutions for Vietnamese packaging enterprises, supporting technologies for printing and packaging design in line with the demand and potential of the industry in Vietnam, and development trends in the future.The seminar aimed to link trade and technology exchanges between German and Vi-etnamese enterprises so that the latter in the packaging and printing industry can ac-cess the latest technological information.According to figures from the German Engineering Federation (VDMA), the packag-ing industry for processed food in Vietnam will grow 38 per cent between 2015 and 2020, while demand for machinery and materials will also increase, by 25 per cent.There are now some 1,500 industrial packaging and printing enterprises operating na-tionwide, earning total revenue of more than $2 billion a year.Vietnam's packaging and printing industry has grown significantly in recent times, at an average of 15-20 per cent annually.The expansion of industrial production has contributed to the growth of industrial packaging and label printing in the country, according to the Vietnam Printing Asso-ciation."Technology is considered key in the packaging and printing industry moving further ahead in the global context," Gernot Ringling, Managing director of Messe Dusseldorf Asia, told the seminar. "Vietnamese producers should focus on applying the latest technologies from Europe, the US, and other parts of Asia to remain competitive."The seminar was organised to introduce technical developments in printing and pack-aging, solutions for smart packaging, the importance of workflows in a modern print environment, and diversification and individualisation in the future.It attracted the participation of nearly 200 domestic enterprises in the field.http://vneconomictimes.com/article/business/packaging-and-printing-industry-on-the-rise

Hospitality wins big from casinos


Easing of restrictions on local people entering casinos a boon for local hospitality sec-tor, according to representative from JLL Hotels and Hospitality Group.Vietnam liberalising its gaming industry to allow local people into casinos has given the country's growing hospitality industry an added boost, according to Frank Sorgio-vanni, Head of Research, Asia Pacific, at the JLL Hotels and Hospitality Group.The government now is allowing its citizens to gamble at two locations: Van Don and Phu Quoc Island, as part of a three-year pilot. A third site, Ho Tram, is expected to be added to the list.The news has stirred interest among major international names such as Las Vegas Sands along with local conglomerates like the Sun Group, which has been the only Vi-etnamese company approved to develop a casino, in Van Don. More hotels across the country are also installing electronic gaming to boost revenues, according to the latest report from JLL. Sorgiovanni spoke about the appeal of casinos, with Melco Crown Philippines being recognised as the best performing casino stock globally in 2017, which demonstrates


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that financial success can be achieved with the right planning and that this has given investors motivation to pursue such opportunities.Betting on demographicsHe pointed out that Vietnam's "mammoth growth in domestic tourism" is a key driver of casino developments. In 2015, Vietnam catered to 57 million domestic visitors, a staggering growth rate of 48 per cent against 2014.Moreover, a national initiative launched in 2014 entitled "Vietnamese Travel in Viet-namEach Journey to Love the Fatherland More" was also instrumental in contributing to the growth in domestic tourism. And there's no slowdown in sight, thanks to Viet-nam's fast-growing economy coupled with an expanding middle class that is set to grow by 18 per cent to 2020."Vietnam's industrial renaissance has also driven corporate demand for hotels across the country, while visa exemptions, the introduction of new direct air routes and im-proved marketing efforts have boosted the its appeal to leisure travellers," Sorgiovan-ni said.Food in favourVietnam's cuisine is another attraction for repeat visitors, especially from Asia, and the country is quickly becoming a "foodie" destination with a vastly improved food and beverage scene."The outlook for tourism and the accommodation sector is bright, with continued mar-keting efforts, improvements in infrastructure, and the further development of human resources and services," Sorgiovanni said. "Foreign investors from across the region have shown significant interest in Vietnam over the past 18 months, with the country becoming one of the most talked about markets in Asia Pacific."http://vneconomictimes.com/article/business/hospitality-wins-big-from-casinos

Grant Thornton: Upscale hotel segment to soar in 2017


Grant Thornton's Vietnam Hotel Survey 2017 records a rise in RevPAR, the standard industry measurement.Last year was considered a fantastic year with history-making results in Vietnam's tourism industry, which led to a strong recovery in the high-end hotel sector, and this year is projected to be a fruitful year of strong growth with many new projects being launched, the latest Vietnam Hotel Survey 2017 from Grant Thornton Vietnam notes.The standard industry measurement, revenue per available room (RevPAR), for hotels increased in both Star categories, with a 10 per cent rise for four-star hotels and 4.1 per cent for five-star hotels.An analysis of upscale hotels was performed by star ranking and region. By star rank-ing, the average room rate at four-star hotels in 2016 began to pick up, reaching $75, for an increase of 3.8 per cent but still far behind 2014 levels. Five-star hotels, however, continued to see rates fall slightly, by 2.2 per cent from $106.8 in 2015 to $104.4 in 2016. Annual overall average room rates at upscale hotels in 2016 increased from $87 in 2015 to $88.1 in 2016.2016 marked a period of recovery, with occupancy rates in general increasing for both Star categories. However, with expanding room inventories and a great many projects scheduled to launch in the near future, the competition in the upscale hotel market will begin to heat up, especially at five-star hotels.The upscale hotel sector performed better in 2016, with the earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin increasing by 1.7 per cent. While the proportion of Fixed Charges and FF&E (furniture, fixtures and equipment) Reserves remained nearly the same for both years, the improvement in EBITDA was largely contributed by a positive change in both departmental expenses and undistrib-uted operating expenses.Regarding purpose of stay, individual tourists, tour groups, and business travellers to-gether comprised over three quarters, with 77.6 per cent of total guests staying at high-end hotels in 2016. At four-star and five-star hotels, these three segments accounted for 83.1 per cent and 71.8 per cent, respectively.


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Generally, the structure of room reservations followed the same pattern as in 2015. The largest channel to reserve accommodation at four-star and five-star properties is still travel agents and tour operators, with 37.3 per cent. This ratio, however, has seen a gradual decline over the years, and fell further, by 3.1 per cent, compared to 2015.Four-star hotels have the higher ratio of bookings via travel agents and tour operators, at 41.3 per cent, while five-star hotels have 32.5 per cent of sales via the channel.2016 saw an increase in the number of hotels deciding that digital technology is vital to their business to help combat growing competition and to set them apart from those older hotels or those with an older mindset.With the fourth industrial revolution (Industry 4.0) affecting all sectors of the econo-my, many high-end hoteliers have prepared fully for what's to come. A notable in-crease was observed in the application of digital technology from the previous year's 49.3 per cent of hotels to 67.3 per cent in 2016. Added to that, 18.6 per cent of hotels have decided to increase the use of technology either this year or next year. Of those who responded that they have not made any decision, most were hotels from the cen-tral and southern regions and the proportion of this group dropped from 23.9 per cent in 2015 to 15.4 per cent in 2016.http://vneconomictimes.com/article/biz-traveler/grant-thornton-upscale-hotel-seg-ment-to-soar-in-2017

Online business registration beyond expectations


The rate of registered businesses through the official website of Vietnam in the second quarter of 2017 exceeds the 10 per cent that the Vietnamese government required in Resolution 36a, according to the statistics of the Ministry of Planning and Investment.The latest report on Resolution 36a announced by the government Office shows that the ratio of business registration through the website http://dangkykinhdoanh.gov.vn in Vietnam is 39.8 per cent, higher than the 31.7 per cent of the first quarter of the year. Hanoi reached 65.9 per cent and HCM City 51.5 per cent.HCM City has a private registration channel with a total of 7,565 business registration files, occupying 12.6 per cent of the total business registration files in the quarter.Resolution 36a on e-government was issued on October 14, 2015, aiming to promote the development of e-government as well as improve the quality and efficiency of state agencies in order to serve people and enterprises better on the Internet platform.http://www.vir.com.vn/online-business-registration-beyond-expectations.html

Vietnam leatherworkers, shoemakers look to EU for salvation


Vietnamese leatherworkers and shoemakers are generally upbeat about the prospects for enhanced trade brought about by a soon to be European-Vietnam free trade agree-ment, says the Vietnam Leather, Footwear, and Handbags Association.Speaking with local media, Diep Thanh Kiet, vice chair of the Association, told local media earlier this year that the elimination of tariffs on the country's exports to the EU could provide a tremendous boon to sales and earnings in the EU market over the next decade.Vietnam and the EU are tentatively on track to ratify the wide-ranging free trade pact, more commonly referred to by the acronym EVFTA and see it come into force by early 2018, Kiet noted.However, it could take longer for ratification as the consequenceof a ruling that re-quires each individual county in the EU to ratify the agreement separately, which re-sults in a more time-consuming process than he had desired.For Vietnam, the EVFTA takes on added importance following the demise of the Trans-Pacific Partnership, which was a monumental free-trade agreement between 12 Pacific Rim nations,following the withdraw by the US earlier this year.Vietnam was set to be one of the TPP pact's biggest beneficiaries, he acknowledged.But getting ready for enactment of the EVFTA is not without its problems as product quality will need to be upgraded, he added. This means Vietnameseleatherworkers and shoemakers will need to up their game and provide quality products on a timely,


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consistent and economical basis to be successful.That in turn takes money to retool and cash local businesses don't have.So, it's a bit of a catch 22.The leather and footwear segments are currently on an unsustainable path producing massive quantities of product as low prices with very little earnings left over to show for all their effort.The low earnings don't leave enough after paying all the bills to retool and plough back into updating with the modern equipment and technologies needed to streamline op-erations, cut excessive direct and overhead costs to right the ship and put the segments on the path to prosperity and sustainability.So first and foremost, the leather and footwear segments must find avenues to raise sorely needed equity capital and that's the real bottom line.According to a report by the general Department of Vietnam Customs, total gross ex-ports of footwear to the EU for the five months leading up to June 2017 tallied in at $1.76 billion, making it the country's second largest sales market.Meanwhile, for the same time frame, sales of leather handbags, suitcases and briefcas-es in the EU market registered just $365 million.The profit on these sales figures is negligible and for purposes of explanation only a 5 percent profitability ratio would equate to less than $20 million earnings nationwide on the total sales of leather handbags, suitcases and briefcases for the 5-month period.But if one looks on the bright side,these small numbers highlight the significant poten-tial for leatherworkers and shoemakers in the EU market and why it represents their salvation, if they can retool and get on the right path to increased prosperity.http://english.vov.vn/economy/vietnam-leatherworkers-shoemakers-look-to-eu-for-salvation-355183.vov

Vietnam presses on with trade promotion in Italy


A trade promotion programme is underway in Bologna and Rome cities from July 23-26, aiming to boost Vietnamese exports to Italy's distribution network via the Coop Ita-lia and Conad supermarket chains.The programme is organised by the Ministry of Industry and Trade (MoIT), the trade office of the Vietnamese Embassy in Italy, authorities of Emilia-Romagna and Lazio re-gions, the federation of Italian cooperatives LegaCoop, the system of Italian consumer cooperatives Coop Italia and the Agro-Food Centre of Rome (CAR).In Bologna, the business delegation of Vietnam, led by director of the MoIT's European markets department Dang Hoang Hai, met with the Emilia-Romagna region's cham-ber of commerce and Coop Italia.Secretary general of the region's commerce chamber Claudio Pasini lauded the devel-opment potential of Southeast Asian countries, including Vietnam.He said Vietnam is a strongly growing economy that attracts many foreign investors, including those from Emilia-Romagna. Relations between Vietnam and Italy have been enhanced over the past decade, spurring bilateral trade.Vietnamese goods have increased in both quantity and quality in recent years, he said, adding that the country also has a young skilled workforce. These factors have helped Vietnam to success in Europe and the world.Pasini noted the EU-Vietnam Free Trade Agreement is expected to take effect in 2018, which will facilitate bilateral economic and trade ties. The Emilia-Romagna region has set up a representative office in Vietnam's southern province of Binh Duong. Its ex-ports to the country reached 179.5 million USD in 2016 and are expected to grow rap-idly.For his part, director of the European markets department Dang Hoang Hai said this is the second time the MoIT has held a trade promotion programme in Italy. The activ-ity is held within the framework of the two countries' joint committee and the plan to boost Vietnamese firms' direct participation in foreign distribution networks by 2020.During their trip to Italy, the Vietnamese delegation visited CAR, the biggest centre for ag-ricultural food distribution in Rome and central Italy. The centre is also one of Europe's


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most important distribution hubs.In 2016, trade between Vietnam and Italy surpassed 4.68 billion USD, up 8 percent from 2015, including 3.27 billion USD of Vietnam's exports.http://english.vov.vn/economy/vietnam-presses-on-with-trade-promotion-in-italy-355268.vov

Vietnam to promote tourism in Western European nations


The Vietnam National Administration of Tourism, together with tourism firms and hotel operators, will hold tourism promotion programmes in six Western European cities: Milan and Rome (Italy), Valencia (Spain), Berlin and Frankfurt (Germany) and Amsterdam (Netherlands).According to the administration, the delegation will introduce tourism products and policies, especially a visa waiver for citizens of the UK, France, Germany, Italy and Spain.Early last month, the government extended the visa exemption for visitors from these countries, which comes into force at the end of this month.The Tourism Advisory Council says the number of tourists from the five countries has risen by 10.1 percent, helped by the visa waiver.Vietnam attracted over 6.2 million international tourists in the first half of this year, a 30.2 percent rise versus the same period last year. Tourists from major source markets like China, South Korea, and European grew strongly, according to data of the Viet-nam National Administration of Tourism.The national tourism agency is striving to launch more promotion programmes in these markets to increase foreign visitor arrivals by 30 percent to 13 million this year.Thien Minh Travel JSC, a leading travel and hospitality group in Vietnam, said the tourism sector should adopt other strategies like marketing on Facebook and Insta-gram, and targets potential customers by offering particular products to better suit their tastes.http://english.thesaigontimes.vn/55190/Vietnam-to-promote-tourism-in-Western-Eu-ropean-nations-.html

Japan's Chiba eyes enhanced links with Vietnamese localities


Chiba prefecture of Japan is keen to boost cooperation with Vietnamese localities in many fields, including investment-trade, agriculture, education, labour and tourism, said Governor Morita Kensaku.Talking to Vietnamese Ambassador to Japan Nguyen Quoc Cuong at a recent meeting, the governor pledged to continue supporting Vietnamese expatriates in the prefecture.For his part, Ambassador Cuong spoke highly of the strengths of Chiba, one of the leading international gateways and industrial and agricultural centres of Japan.While hailing Kensaku's determination to promote international cooperation, the Vi-etnamese diplomat affirmed he will help the Japanese locality bolster links with Viet-namese counterparts.He took the occasion to invite Kensaku to lead a local business delegation to make a field trip to Vietnam in the future.During his stay in Chiba, Ambassador Cuong visited a farm owned by the WAGOEN agricultural group to learn about a clean agricultural development model in connec-tion with eco-tourism.He also met with Vietnamese students studying in Chiba Institute of Science, during which he was presented with an honorary doctorate from rector of the institute Kiso Isao for his contributions to promoting friendship between the two nations.Bordering Tokyo, Chiba is strong in agricultural and industrial development and is also an attractive tourist destination.http://english.vov.vn/economy/japans-chiba-eyes-enhanced-links-with-vietnamese-localities-355266.vov


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SVietnam finance & business 26 July 2017

Aussie firms seek VN investments


Australian food, rice processing and information technology companies want to accel-erate cooperation and expand operations in Vietnam, according to Australian officials and business representatives who met yesterday in Sydney with deputy prime minis-ter Vuong Dinh Hue.SunRice CEO Rob Gordon said a number of Vietnamese firms had exported rice to Australia for his company, which carries 30 product labels and has about 2,100 work-ers in 60 countries across the world.To reinforce production capacity in Vietnam, Gordon proposed the Vietnamese gov-ernment allow Sunrice to expand investment in the country, transferring skills and sharing scientific technology in rice production, processing and marketing.Deputy PM Hue praised Sunrice's cooperation with Vietnamese rice trade, which was important for both sides, contributing to food security.He said Vietnam could supply all types of rice in great volume. The cooperation of rice trade between the two countries grew in 2016 when Vietnam exported 220,000 tonnes of rice to Australia, over 50 per cent more compared with 2015.To ensure the trade of rice, Hue asked businesses on both sides to meet and discuss doing business. The Vietnamese ministries of Agriculture and Rural Development and Trade and Industry would cooperate with Sunrice to help it develop investment in Vi-etnam, he pledged.Speaking with January Craps, CEO of Carlton&United Breweries (CBU) which has a 47-per cent share of the Australian market and plans to expand its beer production to the southern province of Binh Duong, Hue said Vietnam was interested in sustainable development, ensuring environmental safety and water resource in this area.In addition, he said, the Vietnamese government has been conducting divestments at its two biggest brewersSai Gon Beer-Alcohol-Beverages Joint Stock Corporation (Sabeco) and Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco)sug-gesting CBU may have an interest as strategic investor.Craps said his company expected to be a strategic investor in Sabeco and Habeco when the State divests its investment capital this year.Bruce Taper, the director of Kinessis, a technology company, said he wanted to take part in urban design projects in Vietnam. Through the company's technology apps, it can supply information for policymakers to help them make decisions on urban man-agement and development. Hue said many urban areas are facing difficulties in sus-tainable development.Seafood meetingHue also met with representatives of the Australian Seafood Importers' Association, saying the two sides reached good growth in import and export turnover. However, Australia had not yet allowed the import of head on shell-on shrimp from Vietnam.Hue expected the association to support Vietnam in the export of head on shell-on shrimp to the Australian market.He expressed his support for ensuring quality but concern about Australia's technical barriers, which were hurting Vietnamese exporters.He also proposed the association help Vietnam build labs to assess the quality of shrimp to raise its shrimp production capacity.http://bizhub.vn/news/aussie-firms-seek-vn-investments_287802.html

BUSINESSBusiness Briefs July 26, 2017

26/JUL/2017 INTELLASIA |

* Thu Due Housing Development Corporation (TDH) plans to cooperate with foreign partners to develop new projects. Recently, the enterprise has established Loc Phu Nhan Investment Joint Stock Company in which it holds a 98 percent stake to prepare for the cooperation with a Japanese investor. In the first six months of2017, TDH obtained VND525.7 billion in revenue and VND60.7 billion in after-tax profit, rising by two times and 20.7 percent year-on-year respectively, mainly thanks to housing projects such as Binh Chieu 2, TDH- Phuoc Binh, S- Home Phuoc Long, Long Hoi City and TDH-Tocontap. The company is developing more projects to gen-


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erate revenue for 2018, including Centum Wealth, S-Home Binh Chieu and Cantavil-Long Hai resort.* Kinh Do Group Corporation (KDC) saw its revenue triplingyear-on-year to over VND1.6 trillion in the second quarter of this year while its net profit soared 161 percent to VND369 billion. The figures were greatly contributed by the acquisition of Vietnam Vegetable Oils Industry Corporation. Between January and June, thefirm's revenue and gross profit surged 200 percent and 30 percent year-on-year to nearly VND2.9 trillion and VND653 billion respectively. KDC has just acquired a 50 percent stake in Dabaco Food, marking its presence in three key food segments includ-ing fresh food, frozen food and canned food.* Global Mind Vietnam Joint Stock Company has bought 7.8 million shares of Bien Hoa Sugar Company (BHS) to spur its ownership from 16.7 percent to 19.3 percent, or near-ly 57.5 million shares.* Loc Troi Group (LTG) yesterday began trading 67.1 million shares on the market for unlisted public companies, or UPCoM, at thereference price of VND55,000 each. Closing yesterday's session, LTG jumped nearly 7.8 percent at VND58,500 per share with 350,000 shares exchanged. The group is active in plant protection chemical, seedlings and food processing sectors. In 2016, LTG re-ported nearly VND7.8 trillion in revenue and VND349 billion in after-tax profit.This year, it targets to raise the figures to VND8.2 trillion and VND460 billion respec-tively. The firm expects to offer cash dividend at 30 percent to shareholders in 2017. In the coming time, LTG targets to raise its plant protection chemical market share from 20 percent to 30 percent and take the lead for rice processing. It also plans to list on the HCM City market with capitalisation of $1 billion in 2021.

Shares weaken on poor investor sentiment


Vietnamese shares weakened towards the end of Tuesday morning's session on both local markets after opening on a positive note as trading liquidity slowed down on poor investor sentiment.The benchmark VN Index on the HCM Stock Exchange declined 0.03 per cent to close at 759.48 points. It dropped total 1.5 per cent in the previous three days.The HNX Index on the Hanoi Stock Exchange narrowed its gain to 0.30 per cent, end-ing at 97.22 points. The northern market index fell total 1.9 per cent in the previous three sessions.More than 136.4 million shares were traded on both local exchanges, worth VND2.94 trillion (US$130.6 million).Market trading condition was balanced with 197 stocks advancing and 210 stocks de-clining.Among the stock market's 20 sectors, property developers, energy firms and food and beverage producers were among the decliners.Companies that saw their share prices move down included brewer Sabeco (SAB), dairy producer Vinamilk (VNM), property firm Vingroup (VIC) and gas station oper-ator Petrolimex (PLX).On the opposite side, PetroVietnam Gas (GAS), Bank for Investment and Development of Vietnam (BID) and Vietinbank (CTG) were among the gainers, boosting the local stock market.The afternoon session starts at 1pm.http://www.vir.com.vn/shares-weaken-on-poor-investor-sentiment.html

Investors offload penny stocks


Though some bank stocks and large caps recovered, the VN Index slid for the third straight session on July 24 as investors heavily offloaded penny stocks.Many small stocks closed the day at the floor prices, including OGC, a financial invest-ment group, real estate enterprise DLG, seafood processor VHG, and ATG, which fo-cuses on material business. HAR, a property enterprise, also plunged to the floor price of over VND10,600 per share on matching volume of 2.8 million shares, having hit the


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upper limit consecutively since July 3.Realty firm FLC led the HCM City market for liquidity with nearly 12.6 million shares traded but it fell 1.9 percent at VND7,100 a share. ITA, an operator of industrial zones, lost around 3.5 percent at VND4,150 per share on matching volume of 5.8 million shares.On the other hand, agricultural chemical producer HAI and mining firm AMD went up to the ceiling prices of VND10,850 and VND12,150 a share respectively. The two stocks reported high trading volumes at over 3.4 million shares each.Meanwhile, VN30 stocks did contribute to the market's recovery after the VN Index dropped to below the supporting level of 757 points.Bank stocks VCB, MBB and BID and steelmaker HPG, dairy giant VNM and consumer goods group MSN lifted the main index up 1.34 points while PLX, a leading fuel retail-er, alone took away over 0.93 point from the index.The VN Index closed the session down 0.28 percent at 759.74 with turnover slumping 17 percent against last Friday at less than VND3 trillion. The put-through market saw 11.9 million shares valued at over VND354 billion changing hands.The HNX-Index fell sharply, losing 1.05 percent against the previous session at 96.93. Turnover on the Hanoi market remained sluggish with 60.9 million shares worth VND536.5 billion traded, up 10 percent in volume and down 5.6 percent in value, in-cluding bloc deals worth VND18 billion.Lender SHB, the most actively traded stock, moved flat at VND7,800 per share on vol-ume of 14.6 million shares though the stock fell sharply in the morning phase. Other pillar stocks like the bank ACB, construction firms VCG and CEO, and petroleum tech-nical service firm PVS closed down.Foreigners net bought VND170.5 billion on the HCM City market and over VND2.65 billion on the Hanoi exchange.According to vietstock.vn, the market turned more balanced as large caps recovered, so the VN Index is expected to bounce back as it is moving within the supporting zone between 750 and 760 points. However, investors should be cautious as cash flow has been weak.http://english.thesaigontimes.vn/55194/Investors-offload-penny-stocks.html

UPCoM alone in losing ground


Main indexes finish in positive territory on July 25.Main indexes Vietnam's stock market gained ground on July as only the UPCoM-In-dex closed lower.On HSX, the VN Index increased by 7.53 points (0.99 per cent) and the VN30-Index 8.39 points (1.15 per cent).On HNX, the HNX-Index rose 0.88 points (0.91 per cent) and the HNX30-Index 1.34 points (0.75per cent), while the UPCoM-Index lost 0.49 points (0.88 per cent).The VN Index opened the day at 759.74 points and rose to 761.1 points early on before hitting its bottom of the day of 757.6 points mid-session. It then fluctuated and closed the morning at 759.5 points. It soared in the afternoon, reaching its peak of the day of 767.3 points before closing the day at 767.27 points.On HSX, 179 stock codes increased and 93 fell, while on HNX, 112 closed higher and 78 lost ground.Liquidity on HXS reached VND2.58 trillion ($113.5 million) and on HNX was VND473.79 billion ($20.84 million).Most large caps in banking increased: MBB by 6.8 per cent, BID 5.7 per cent, STB 5.5 per cent, and CTG 2.7 per cent, while VCB closed at its opening price.In construction and real estate, HBG rose 2.3 per cent, DXG 1.5 per cent and FLC 0.8 per cent, while CTD fell 0.8 per cent and VIC 0.5 per cent. NVL closed at its opening price.In energy, PLX increased 3 per cent, GAS 1.5 per cent, and PVD 0.4 per cent, while PGD shed 4.9 per cent.Among other large caps, VNM and SAB closed at their opening price while MSN in-


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creased 0.4 per cent and VIC lost 0.5 per cent.On HNX, notable shares included VCG, which increased 2.7 per cent, PVI 1.8 per cent, ACB 1.6 per cent, and SHB 1.3 per cent. PVS lost 1.3 per cent.Foreign investors net bought on HSX by VND1.37 trillion ($60.26 million) and net sold on HNX by VND14.75 billion ($648,861).http://vneconomictimes.com/article/banking-finance/upcom-alone-in-losing-ground

Government to punish recalcitrant SOEs


Leaders of qualified State-owned enterprises (SOEs) will face demotions, salary cuts, fines and even criminal charges if they fail or delay listing on the Unlisted Public Com-pany Market (UPCoM).These are some of the drastic measures being considered by the Ministry of Finance (MoF) and the government Office (GO) as part of efforts to speed up equitisation and induce more transparency into the process.Deputy prime minister Vuong Dinh Hue has also instructed the MoF and GO to inves-tigate and hand out stiff punishments to businesses and commercial banks that do not finalise the procedures despite being qualified to list on the UPCoM.The MoF will compile a list of equitised SOEs where the State still retains 36 per cent or more of its stake, as well as those with zero to 36 per cent of State capital, though the decision for the latter to become listed is contingent on the company's shareholders.In the last six months of 2017, any enterprise tardy about going public on the UPCoM will be heavily fined under Circular 36/2017/TT-BTC which has been in effect since June 15, 2017.Companies failing to list or register 12 months later than requested by the State Secu-rity Commission of Vietnam will attract fines of VND300 million to VND400 million (US$13,342 to $17,790).The MoF has also asked the government and responsible departments and localities to consider disciplinary action against the leadership of companies that are dragging their feet on completing listing procedures.The disciplinary actions would range from demotions, transfers, salary cuts to more serious criminal charges.The threat of severe action has prompted several companies to hasten their listing pro-cedures. Officials expect a spate of companies being listed in the second half of the year.In just five days (July 17- 21), 14 companies have successfully listed their stocks on the HNX, UPCoM and the Ho Chi Minh Stock Exchange (HOSE), with a total of more than 500 million shares.On July 20, the Binh Duong Water Environment Joint Stock Company, with stock code BWE, listed 150 million shares listed on the HOSE at the referential price of VND14,300 per share (63 cents); while the Viet Thang Corporation, stock code TVT, listed 21 mil-lion shares at VND35,000 per share ($1.55).Meanwhile, the PetroVietnam Power Corporation (PV Power) is preparing its initial public offering (IPO) for late next month. The government is seeking strategic inves-tors for the firm and planning to decrease its holdings to below 50 per cent. Around 45 per cent of PV Power's total shares will go to the strategic investors, while three to four per cent will be reserved for the IPO.The deputy PM has ordered that all State-owned commercial banks are listed on the UPCoM in order to improve transparency in their operations and generate more op-portunities to raise capital.As of now, at least 10 banks with a total charter capital of VND95 trillion ($4.2 billion) plan to be listed on the UPCoM. Meanwhile, the Vietnam Prosperity Joint-Stock Com-mercial Bank, with a chartered capital of VND14.06 trillion ($625 million), has regis-tered to list more than 1.33 billion shares on the HOSE.In a document published last week, deputy PM Hue also demanded that a list of 730 equitised companies yet to be listed on the UPCoM as of June 2017 be published on the government's online portal.


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Sabeco says has selected consultant for State divestment plan


Saigon Beer, Alcohol and Beverage Corporation (Sabeco) has chosen a consultant for drawing up a plan to further divest State capital in the company later this year.A report on Sabeco's first-half performance shows its board of directors approved on June 28 a scheme on negotiations for choosing a consultant for its divestment plan.The report does not disclose the name of the consultant but says the consulting partner was chosen in late April when Sabeco considered consultants for a service package called Solutions for implementing the divestment of the State stake at Sabeco. Howev-er, a source from the Ministry of Industry and Trade said it was a tripartite alliance.Bui Truong Thang, deputy head of the Light Industry Department under the ministry, told a press conference in the middle of this month that the alliance groups Ernst and Young Vietnam Co Ltd, Bao Viet Securities JSC, and Southern Information and Valu-ation Corp. The alliance has been chosen to advise Sabeco on sale of its State-owned stake, which is an overwhelming 89.59 percent and held by the Ministry of Industry and Trade.Thang added Sabeco has been drawing up a plan for the divestment of its State capital, which will be submitted to the ministry prior to the end of this month.Upon the prime minister's approval on the plan, the ministry will take steps to divest the State stake in Sabeco in line with prevailing regulations. The process is expected to be completed later this year.The board of Sabeco at their general meeting on April 18 proposed the trade ministry divest the State stake as soon as possible to turn the country's leading brewery into a real public company by nature, and that the stake be put up for auction on the local stock exchange. Sabeco has been listed on the Hochiminh Stock Exchange.Sabeco put its after-tax profit at around VND4.65 trillion last year, and paid a dividend of 30 percent.The corporation aims for total beer sales of over 1.7 billion litres worth around VND34.47 trillion this year. It targets an after-tax profit of VND4.7 trillion and a divi-dend of 35 percent for 2017. The total tax amount to be paid this year is expected at VND9.26 trillion.http://english.thesaigontimes.vn/55207/Sabeco-says-has-selected-consultant-for-State-divestment-plan-.html

Mai Linh taxi to list on UPCoM


Hanoi Stock Exchange has allowed Mai Linh Northern Joint Stock Company to regis-ter 48.6 million shares on the Unlisted Public Company Market (UPCoM) under stock code million.The reference price for its shares will begin at VND10,000 (44 US cents) per share, equivalent to market capitalisation of around VND486 billion.Mai Linh Northern is a subsidiary of the Mai Linh Group, one of Vietnam's major taxi operators.The company has 17 member companies located across the 17 northern provinces and cities, from Hanoi to Ha Tinh. Its revenue comes mainly from its taxi, car rental, prop-erty sale, property lease and repair service businesses.The Mai Linh Group holds 47.86 per cent of Mai Linh Northern's charter capital.Last year, Mai Linh Northern earned a total revenue of nearly VND1.08 trillion and af-ter-tax profit of VND29.7 billion.In 2017, the firm is targeting net sales of VND1.19 trillion and after-tax profit of VND35.7 billion, a year-on-year increase of 41 per cent.In the first quarter of this year, Mai Linh Northern earned nearly VND300 billion in revenue and VND6.53 billion in after-tax profit.http://bizhub.vn/markets/mai-linh-taxi-to-list-on-upcom_287822.html

Facebook traders face taxation anxieties


Ha is one of over 13,400 Facebook account holders in Hanoi who've been identified by the Hanoi Taxation Department as online traders.


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"I have been selling clothes through Facebook for years, getting about 10 orders each day with maximum daily sales of around VND5 million (US$220)," Ha told Vietnam News, admitting that unlike other shop owners, she doesn't have to declare her busi-ness or pay taxes.She was satisfied with her earnings and not having to bother about any intervention from State management agencies.The promise of attractive profits has prompted many people to jump on the bandwag-on, catching the attention of authorities trying to reduce tax losses from State budget collection.A tax administration project for e-commerce business has been drawn up, with the two taxation departments of Hanoi and HCM City functioning as pioneers in bringing business owners selling merchandise on social media, especially Facebook, into the tax bracket.Vien Viet Hung, deputy director of Hanoi Taxation Department, told Vietnam News that the department had collected information on the identity and telephone numbers of the 13,422 Facebook traders.Since late June, the department has been sending SMS messages to these traders, en-couraging and instructing them to voluntarily register their operations, declare in-come and pay taxes.However, after sending messages twice, only 1,000 of the 13,422 phone numbers have replied, and only around 500 have approached the department on their own to register to pay taxes, Hung said.In a recent interview with the Vietnam News Agency, Chairwoman of the Vietnam Tax Consultant Association, Nguyen Thi Cuc, said that under current laws, all institutions and individuals that are doing businesses, whether through traditional channels or via e-commerce platforms, are required to declare income and pay taxes.However, she also conceded that in the current situation, the tax collection was totally based on the willingness of traders, their authenticity, honesty and integrity.Income bracketAccording to the law, only online sellers with revenues over VND100 million a year will be subject to taxation.However, many Facebook merchants are afraid that the taxation process will be fair."If paying tax is an obligation, we are ready to fulfill it, as long as it is fair to everyone. What if I tell the truth, while other Facebook sellers lie about their revenue? They will pay less or no tax, which is unfair," Le Ha told Vietnam News.Regarding income declaration, many argue that was very difficult to determine the ex-act revenue of those who do business on internet, so it is not possible to ensure fair treatment of honest sellers and those who deliberately evade taxes.But Ta Thi Phuong Lan, deputy head of the division in charge of personal income tax under the general Department of Taxation, said tax authorities can assess Facebook sellers' revenue by checking their sources of goods, post offices, delivery companies, and bank payments.One of the most difficulties in determining Facebook traders' income is the low rate of non-cash transactions in Vietnam, said Truong Thanh Duc, chair of the Basico Law Firm.In other countries, buyers make payments via banks, so it is not difficult to identify the revenue from online business. Therefore, it is necessary to apply measures to encour-age Vietnamese to use non-cash payment methods for online transactions, Duc said.Recently, the general Department of Taxation issued Document No. 2623/TCT-CS, ask-ing local taxation departments to co-ordinate with network operators to gather infor-mation on online sellers, including identity and bank number accounts, so that they can monitor all online transactions.However, in response to the Vietnam News Agency, CMC Telecommunication Infra-structure Joint Stock Co (CMC Telecom) said they haven't received any communica-tion from tax authorities.The company said that if needed, they can explain and persuade customers to provide


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them with necessary and detailed information, but they can't ensure that all the cus-tomers will agree to supply this.Step by stepTransactions on the Internet are difficult to control and tax collection procedures can't be comprehensively introduced in a short time, it should be done step by step, said Nguyen Huu Tuan, Head of the E-commerce Management Division of the E-com-merce and Information Technology Department under the Ministry of Industry and Trade.To collect taxes, authorities should understand each business as they have their own specific characteristics, Tuan said.With millions of Facebook accounts, tax authorities should classify them based on the nature of their operations and key products, he said.In the first phase, the tax authority should target large and professional businesses. It is easy to identify these account holders as they will have popular Facebook pages with a large numbers of followers, likes, posts and comments, he said.The rest are likely to be individuals selling things online as a side job or even seasonal business. They do not sell goods regularly, so tax departments should carefully review the list before inviting them to their offices, Tuan said."There are petty traders with modest monthly incomes. If we try to control all Face-book sellers, we will use up significant resources and end up being inefficient," he said.Sharing the same idea, Vien Viet Hung, deputy director of Hanoi Taxation Depart-ment, said to obtain necessary information on online businesses, tax departments na-tionwide should have enough staff who are well versed with social media networks.The Hanoi Taxation Department will seek cooperation and support from many con-cerned agencies like commercial banks, post offices, especially social networks like Fa-cebook, to provide information about account holders, Hung said.Late last month, reporters of the Vietnam News Agency contacted the Facebook rep-resentative office in Vietnam with questions about the tax collection issue, but hadn't received any response at the time of going to print.http://bizhub.vn/news/facebook-traders-face-taxation-anxieties_287806.html

Equitised businesses face penalty for not listing on stock market

26/JUL/2017 INTELLASIA| SGGP NEWS

The State Securities Commission of Vietnam (SSC) has sent a document requiring busi-nesses after equitisation to list on the stock market as many have not abided by the reg-ulation so far.They will face a penalty of up to VND300-400 million according to Decree 145/2016 of the government for continuing the share listing delay.According to SSI, the sanction will urge enterprises to start share trading, increase sup-ply for the stock market, boost them to operate transparently and protect legitimate rights and benefits of investors.In April, the government publicised the names of 578 businesses who have not listed on the stock market after equitisation. Two months later, the Ministry of Finance re-viewed the situation and found the number increase by 12 companies to total 730.The ministry said that the list of these 730 companies will be publicly posted on the government Portal and the ministry's website.Explaining the listing delay, companies said that they had not met norms to list on the stock market. Some said that they were doing relevant procedures.Still, investors believed that they are afraid of information transparency.http://sggpnews.org.vn/business/equitised-businesses-face-penalty-for-not-listing-on-stock-market-68029.html

Back to school shopping kicks off


Gia Vy in District 2 and her daughter were choosing school supplies at a bookshop in HCM City's Binh Thanh District.Vy said "The new school year will start soon. So I brought my daughter here to buy necessary stationary for her."


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Demand for school supplies at bookstores and supermarkets has increased significant-ly in recent days, with the former selling mostly notebooks, textbooks, pens, and pen-cils, and the latter, backpacks, school bags and uniforms.The comic and reference books sections also attract many children, who read there or buy.As in previous years the city is running a price stabilisation programme for school sup-plies.Fourteen companies have registered to sell 24.8 million notebooks and 13.6 million textbooks, 2.2 million uniforms, 1.75 million schoolbags and backpacks, 720,000 pairs of shoes and other school supplies at fixed prices, meeting 35-50 per cent of demand.Huong Mi Handbags Co Ltd, for instance, said his company would sell 950,000 back-packs and schoolbags, 20 per cent more than last year.The company has many new models this year, including backpacks that prevent back deformities, he said.Lam Anh Dau, chair of Vinh Tien Paper JSC, said with output up to 70-80 million note-books this year his company, together with other well-known producers, would en-sure efficient supply in the market.Bookstores, supermarkets and others have launched promotions for stationery and school supplies.Many bookstores in HCM City, including Thang Long, Nguyen Van Cu and Fahasa, are offering 5-10 per cent discounts on textbooks and 30 per cent on reference books.They have also cut the prices of other stationery products like notebooks, pens and school bags and backpacks.Co.opMart and Co.opXtra supermarkets are offering big discounts on more than 1,200 items like school uniforms, school bags, notebooks, pens and other school supplies and nearly 250 price-stabilised products.Backpacks and school bags of brands like Vui and Miti are sold at VND126,000-463,500.Priced-stabilised uniforms of Sanding and SGC brands are sold at VND52,900-144,000 for white shirts and VND59,900-206,100 for trousers.Korean supermarket Lotte Mart is also offering attractive discounts of 5-49 per cent on school supplies, uniforms, back packs, and nutritional foods from July 26 to August 28.http://bizhub.vn/news/back-to-school-shopping-kicks-off_287805.html

Danang Tourism Association proposes to demolish 40 illegal villa foundations

26/JUL/2017 INTELLASIA| DTI NEWS

The Southern Institute of Ecology and the Danang Tourism Association have jointly sent a proposal to the Danang authorities to preserve the current scenery of Son Tra Peninsula and demolish the foundations of 40 illegally-constructed villas.The proposal gained approval from all attendants at the conference about preserving and developing the eco-system of Son Tra Peninsula.All attendants reached consensus that since Son Tra has at least 1,010 different plants, 21 huge fungal species, 700 to 1,300 red-shanked douc, and rare herbal plants that need to be preserved, there must be measures to protect Son Tra.The Southern Institute of Ecology and the Danang Tourism Association suggested banning any new construction projects and quickly demolishing foundations of 40 vil-las under construction. The investors must also have measures to prevent erosion dur-ing the rainy season.They also asked the Danang City authorities and the government to remove Son Tra from the list of potential locations for national tourism sites so that it can be developed into a natural reserve.In order to improve the current tourism services, the Danang authorities should set up inspection teams to assess the on-going projects in the peninsula and establish Hai Van-Son Tran world biosphere reserve.In March, Da Nang authorities suspended the unlicensed construction of Bien Son Tra eco-tourism area project. By that time, the investor, Bien Tien Sa JSC, already illegally laid down the foundations for 40 villas.


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Danang-Quang Ngai expressway ready next month


The first 65 kilometers of an expressway connecting Danang and Quang Ngai Province in central Vietnam will be opened to traffic on August 2, according to Vietnam Ex-pressway Corporation (VEC).This 65-kilometer section runs from the north of Danang to Tam Ky City of Quang Nam Province. The remaining stretch of the 140-kilometer expressway will be finished by the end of this year.VEC's toll fees range from VND20,000 to VND380,000 depending on the distance traveled and the types of vehicle.The first expressway of the central region will have six lanes, including two for emer-gency (phase one), and allow for a maximum speed of 120 kilometers per hour.The total cost of the project is almost VND28 trillion. A World Bank loan of $631 mil-lion has gone to the Danang-Tam Ky section and another $673 million has been bor-rowed from the Japan International Cooperation Agency (Jica) to build the section between Tam Ky and Quang Ngai Province.After a couple of design reviews and adjustments, the project's cost was revised down by VND2,500 billion.The Danang-Quang Ngai expressway is part of the north-south expressway project. The north-south expressway will cut travel time and boost investment in the central region. The road will also ease traffic pressure on National Highway 1A, the nation's backbone road, and build better transport links between Laos and Cambodia and ports in central Vietnam.http://english.thesaigontimes.vn/55192/Danang-Quang-Ngai-expressway-ready-next-month.html

VAMA publishes top 10 least wanted cars in first half

26/JUL/2017 INTELLASIA| VAMA

The Vietnam Automobile Manufacturers' Association (VAMA) has published the list of the ten least wanted cars in the first half of 2017, belonging to five car distributors.Of the five car brands appearing on the list, Suzuki Vietnam scored three places with three models, while Mekong Auto Corporation, Mitsubishi Motors Vietnam, and Hon-da Vietnam each had two models. Kia had one model on the list.The two least wanted cars belonged to Misubishi, which could not sell a single Mit-subishi Pajero or Mitsubishi Outlander Sport in June 2017. In the first six months, only 5 and 15 units find homes, respectively.Mitsubishi Pajero was considered one of the best sport utility vehicles (SUV) in Viet-nam. However, the model on this list is the fourth generation of the model, introduced ten years ago. Misubishi has only upgraded some small interior features ever since, leaving the Pajero unable to compete with rivals.In addition, due to its huge size and high petrol consumption, these Pejero cars are not suitable personal vehicles, especially in urban areas.Similarly, the Mitsubishi Outlander Sport was introduced in 2010 and has been hardly upgraded ever since. As such, the model simply cannot compete with modern SUVs at present.Ranking fourth was the Kia Sportage, a brand from South Korea distributed by Thaco Kia, an affiliate established by VAMA-member Truong Hai Auto Corporation and Kia Motors from South Korea. 24 units were sold in June 2017and the whole year altogeth-er. However, according to newswire VnEconomy, Thaco Kia has stopped the distribu-tion of this South Korean model, so Kia Sportage may not feature on future lists.Ranking fifth and sixth were Mekong Pronto and Mekong Premio, with 25 and 42 units sold, respectively, in the first half of 2017, and none in June. Unlike the last two least wanted Mitsubishi cars on this list, automobiles distributed by Mekong Auto Corpo-ration are much less popular and this may be the main reason for the small sales vol-umes.Of the ten models in this ranking, three belonged to Suzuki Vietnam. They included Suzuki Grand Vitara (third with 17 units sold), Suzuki Ciaz (eighth with 111 units sold), and Suzuki Ertiga (ninth with 112 units sold). These models are not as competi-


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tive as competitors in the same segment.The two Honda cars on the list were the Honda Odyssey, standing at the seventh po-sition with 52 units sold, and Honda Accord at the last position with 113 units sold in the first six months of 2017.Nevertheless, the appearance of these two cars on the list is easy to understand as these models have been manufactured for specific segments and not the major market. Hon-da Odyssey is a kind of minivan suitable for families with kids and Honda Accord is for younger customers.http://www.vir.com.vn/vama-publishes-top-10-least-wanted-cars-in-first-half.html

Vietnamese farmers mix salt with water to raise shrimp

26/JUL/2017 INTELLASIA| TUOITRE NEWS

Farmers in the Mekong Delta region of southern Vietnam are willing to add salt to their freshwater ponds in order to cultivate shrimp, a practice experts say can destroy the local ecosystem.They raise giant river prawns, which live in fresh water, and white leg shrimp, whose habitat is in brackish water, which contains more salinity than fresh water, but not as much as sea water.With white leg shrimp now a sought-after item, farmers have been jostling to raise them, despite living in areas surrounded by fresh water.Locals have therefore begun throwing salt into their freshwater ponds to increase their salinity and farm the highly valued white leg shrimp.There are now hundreds of hectares worth of shrimp farms employing this trick in the Mekong Delta, mostly in Dong Thap Province.According to the provincial agriculture department, there are some 176 hectares of white leg shrimp farms in Dong Thap, 165 hectares of which are in Tam Nong District alone.Tam Dong is considered the hub of giant freshwater prawns. However, many local farmers have been lured by the lucrative market for white leg shrimp and have there-fore 'altered' their freshwater farms.Elsewhere in Ben Tre, Soc Trang and Kien Giang Provinces, farmers have been raising brackish water shrimp in areas previously home to freshwater prawns.N.V.G., one farmer in Tam Nong, said he was forced to follow the trending demand for white leg shrimp because "catfish prices keep falling, and raising king prawns is unprofitable.""I heard that yields from a 3,000-sqm shrimp farm are equal to those of a 100,000-sqm paddy field, so I decided to get into the game," he said.G. said it was no big deal to alter the salinity profile of his ponds."The water lacks salinity? I will throw salt in. Not enough alkaline phosphate or lime level? Well, everything can be added to the water," he said.N.V.D., another farmer in Tam Nong, said he had converted his entire three-hectare river prawn farm into a white leg shrimp farm."You can recoup your money faster with the white leg shrimp," he said, adding that traders were willing to buy all his products, regardless of quality.Ho Thanh Dung, deputy director of the agriculture department of Dong Thap, said that there was no ban on the cultivation of brackish shrimp in the province."However, it is not a practice we encourage farmers to take on," the official added.Dung said there were no immediate statistics on the number of cases where farmers had added salt to their freshwater ponds. "It's difficult to verify things like this," he said.The deputy department head said a scientific study was needed to make conclusions on whether turning freshwater ponds into brackish ones would affect the local ecosys-tem.In the meantime, Assoc. Prof Duong Nhut Long, dean of the aquaculture department at Can Tho University, said raising white leg shrimp in unnatural brackish water will result in low-quality yields."The wastewater from these farms, once released into the environment, will ruin the


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freshwater ecosystem there," he warned.Long said Thailand had attempted this practice more than ten years ago and eventu-ally decided to stop."Authorities should encourage farmers to take up raising river prawns or fish in paddy fields, rather than white leg shrimp," he advised.http://tuoitrenews.vn/business/42128/mekong-delta-farmers-mix-salt-with-water-to-raise-shrimp

Quang Nam to build $26.5m railway flyover


The central province of Quang Nam plans to build a railway flyover at one of the bus-iest crossroads on National Highway No 1A, in Nui Thanh District.Head of the provincial Party Secretariat, Nguyen Hong Quang, told Vietnam News that the province will submit a detailed project plan to the transport ministry soon.Work on the VND600 billion (US$26.5 million) flyover could start later this year and open to traffic next year, he said.The flyover will help ease heavy congestion at the intersection of the North-South Highway No 1A, railway line, Tam Hiep Port and the Chu Lai-Truong Hai Industrial Complex.The crossroad section is used by more than 9,000 workers and vehicles from the Chu Lai-Truong Hai Industrial Complex as well as numerous vehicles that traverse the na-tional highway and railway systems.Quang Nam also plans to upgrade National Highway No 40B that links its Tam Ky City to Tac Po in Nam Tra My District even as it builds key routes linking strategic eco-nomic zones, ports and airports in the central and Central Highlands regions.It completed the upgrade and expansion of a 27.7-km section of National Highway 1A in 2015.

PM: Any repeated violations will lead to Formosa closure


Hung Nghiep Formosa Ha Tinh Steel Co Ltd (FHS) will be forced to close its steel com-plex if it repeats violations of the environmental protection law, said prime minister Nguyen Xuan Phuc on July 24.Speaking at a working session with the company at the People's Committee of Ha Tinh Province, the PM noted the government would no longer tolerate the steel manufac-turer's future infringements of environment rules.The meeting took place shortly after he toured the huge steel complex in the central province which together with Quang Binh, Quang Tri and Thua Thien-Hue provinces suffered from the severe pollution triggered by the company's discharge of toxic chem-icals into the sea over a year ago.The incident led to mass fish deaths along the central coast. The company admitted re-sponsibility, made a public apology to the Vietnamese government and people and promised not to repeat the violations.In late August 2016, the Taiwanese-invested firm transferred $500 million in compen-sation for economic damage and marine environment recovery, and at the same time took measures to solve the consequences.At the meeting on July 24, a representative of Formosa said the steel project is the larg-est cast iron and steel mill in Southeast Asia with a total cost of over $10.6 billion. The investment cost may rise to $11.6 billion by the end of this year.The firm has finished installing an automated wastewater and exhaust gas monitoring system and plans to recycle wastewater, ashes and steel slag.Minister of Natural Resources and Environment Tran Hong Ha said the company can now manage sources of waste and waste discharge as it has installed waste monitoring and treatment systems.The maritime environment in the four affected provinces is now safe, Ha added.Deputy minister of Health Truong Quoc Cuong said test results showed that no high-er-than-allowed toxic chemical residues are found in fish caught in the waters off the four provinces.


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According to a report of the Ha Tinh government, the four provinces' tourism, aquac-ulture and fishery sectors have recovered. Seafood output has increased 12 percent year-on-year.PM Phuc hailed efforts of local authorities and Formosa to handle the consequences and asked the company to use advanced technology and equipment to ensure environ-mental protection.The Ministry of Natural Resources and Environment was assigned to work with Ha Tinh Province to regularly monitor water quality and timely report and handle any ab-normal signs.The PM said the government will continue supporting the people whose lives have been directly or indirectly affected by the incident and create favourable conditions for the provinces to recover their tourism, production and economic activities.http://english.thesaigontimes.vn/55209/PM-Any-repeated-violations-will-lead-to-Formosa-closure.html

Second generation Vietnamese-built smartphone to hit shelves next month

26/JUL/2017 INTELLASIA| VN EXPRESS

If the company spent as much time working on the phone as it did on the invites, cus-tomers are in for a treat.Vietnam's leading cyber security firm Bkav will host the launch of its second genera-tion smartphone, currently known as the Bphone 2, in Hanoi on August 8.The event will be held at the National Convention Centre, the same venue that hosted the launch of the Bphone, Bkav's first smartphone, according to Tien Phong (Van-guard) newspaper.Over 2,000 invitation letters for the event designed as gilded circuit boards, believed to be based on the new smartphone's real circuit board, have been sent out to users and members of the press, with "Designed by Bkav Made in Vietnam" printed on the bot-tom.The invites also featured the time and date of the event on a watermark that was only visible when the cards themselves were submerged.Unlike its predecessor, the new phone will be sold both online and through mobile phone retailer The Gioi Di Dong, according to Thanh Nien (Young People) newspaper.The Bphone 2 was scheduled for launch last year, but Bkav said it had to delay the event while it was developing new technology.Last month, a source from the company said it was possible Bkav would have to drop its new smartphone completely due to the difficulties it had faced creating a truly homegrown smartphone.Bkav debuted the Bphone in May 2015. While initially warmly welcomed, the phone's launch was disappointing to many buyers as it was only available online and the com-pany had to delay delivery four times.The phone also caused controversy because despite being Vietnamese-made, 30 per-cent of the phone was manufactured by a Chinese firm.In its 2017 report, Statista, a market research firm based in Germany, said the number of smartphone users in Vietnam stands at 28.5 million, or 30 percent of the country's population. It predicts that will rise to 40 percent by 2021.http://e.vnexpress.net/news/business/second-generation-vietnamese-built-smart-phone-to-hit-shelves-next-month-3618013.html

Pure Storage introduces data platform for VN businesses


Pure Storage unveiled its vision of a data platform for the cloud era at an event on Tuesday in Hanoi to help customers accelerate innovation and business transforma-tion.To help organisations in Vietnam put their data to work, the company announced its new data platform that includes more than 25 new software features and comprehen-sive hardware updates. They are set to deliver the speed, agility and intelligence that businesses in Vietnam need to stay competitive in terms of scale."Modern digital businesses require a data platform that eradicates all complexity


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while enabling business to build a new class of applications, to extract new insights from data and to do so in real-time," Pure Storage CEO Scott Dietzen said."Businesses need to understand how to use the entire data ecosystemcloud and on-premises-- to put their data to work and mine insights to deliver customer results," Di-etzen added.'Evolution', a global research conducted by US-based Pure Storage, confirms that a new digital era has arrived in Vietnam. The survey found that digital transformation is reaching the tipping point across Vietnam, with 53 per cent of businesses now deriv-ing more than half their revenue from digital streams. However, 48 per cent of busi-nesses cited technical complexity as the main barrier to digital transformation.http://bizhub.vn/tech/pure-storage-introduces-data-platform-for-vn-businesses_287828.html

Southern Power Corporation develops key electricity projects


The Southern Power Corporation under the Electricity of Vietnam Group (EVNSPC) is planning to build 53 more 110 kV power projects in southern provinces and cities, bringing the total number of works in 2017 to 79.In July, the company started construction of eight electricity projects and connected 10 others with the national grid.The EVNSPC is speeding up the second phase of a project to bring power to house-holds without electricity. More than 6,100 families of the Khmer ethnic minority group in the Mekong Delta province of Kien Giang will benefit from the project. Nearly 9,000 households have had access to power in the first phase.Meanwhile, a project designed to supply electricity for rural areas has been completed in Hau Giang and Ca Mau provinces with thousands of locals having electricity.Regarding the third development policy loan (DPL3) project, funded by the World Bank, the company has operated four power facilities to support shrimp farming in Ca Mau, Bac Lieu, Soc Trang and Tra Vinh and one power facility for artificial lighting for dragon fruits in Long An province.Under the project, 695 kilometres of medium-voltage line, 609 kilometres of low-volt-age line and transformation stations with total capacity of 115.8 MVA will be con-structed.The company is carrying out the fourth development policy loan (DPL4) project to im-prove power system with total investment of over 10 trillion VND (439.9 million USD). Components of the projects are the second circuit of the 220kV transmission line for Phu Quoc island district, 11 110kV power grid facilities, seven power transformation stations with total capacity of 372 MVA and 37 sub projects to upgrade medium-volt-age grid, enhancing sufficient power for urban areas.Other power transmission line development project of the company comprises the construction of Can Duoc and Sa December 220kV stations, 13 sub power grid projects and three electricity distribution facilities.Compensation for ground clearance, slow progress of investment procedure approval, shortage of capital and slow disbursement of official assistance development (ODA) are main challenges of the company when carrying out power projects. They will have critical impacts on power supplying for southern provinces by 2020, particularly key localities like Binh Duong, Long An, Dong Nai, Tay Ninh and Ba Ria-Vung Tau.http://english.vov.vn/economy/southern-power-corporation-develops-key-electrici-ty-projects-355286.vov

HCM City, Lotte group seal deal to build Eco Smart City


Representatives from HCM City's authorities and a Lotte Group joint venture signed a contract on the construction of the Eco Smart City in new Thu Thiem urban area on July 25.The joint venture consists of Lotte Asset Development, Lotte Shopping, Lotte Hotel and Lotte Engineering and Construction companies.The construction of the project, worth about 20.1 trillion VND (884.4 million USD), is


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expected to begin within the third quarter this year.The contract signing took place as part of a meeting between Chair of the HCM City People's Committee Nguyen Thanh Phong and CEO of Lotte group Shin Dong-bin. Both witnessed the signing ceremony.Receiving CEO of the Republic of Korea conglomerate, Phong vowed to facilitate for-eign investors, including Lotte, to operate in the city.He said Lotte showed serious investment commitments when signing a pact to lease land for its Eco Smart City in the Thu Thiem urban area. The leasing price is 2 trillion VND (88 million USD).For his part, Shin Dong-bin thanked the local authorities for the favourable conditions it has created for Lotte and called for further assistance to the Thu Thiem project.He said his group is striving to serve the demand of Vietnamese customers and con-tribute to the country's overall development.http://en.vietnamplus.vn/hcm-city-lotte-group-seal-deal-to-build-eco-smart-city/115392.vnp

Dutch company signs wastewater contract in south


Ba Ria Vung Tau project between Dutch and Vietnamese companies expected to come into operation by end-2019.The Netherlands' Royal HaskoningDHV has recently signed a $11.07 million contract with the Ba Ria Vung Tau Urban Sewerage and Development Company (BUSADCO) to carry out a complete wastewater solution for over 175,000 residents of the Phu My New Urban Area in southern Ba Ria Vung Tau province.The project will deliver sanitation to residents and industries whose wastewater is cur-rently discharged untreated, resulting in high levels of environmental pollution. The Dutch government is financing the project as part of its Facility for Infrastructure De-velopment (the ORIO programme) in developing countries. The project is expected to be completed by the end of 2019.The new sewage plant will use Royal HaskoningDHV's Carrousel technology, a prov-en, cost-effective, reliable, and highly efficient system now applied in some 1,500 wastewater treatment plants around the globe for the biological treatment of munici-pal and industrial wastewater. The plant will have a treatment capacity of almost 30,000 cu m per day.The project also includes the construction of four pumping stations, over 100 km of pipelines, and connections to 15,000 households and over 1,000 small and medium-sized enterprises (SMEs). During the operation and maintenance phase, the team will also provide technical assistance and staff training."The construction of a complete wastewater collection and treatment system for the Phu My New Urban Area has become an urgent issue and a top priority for economic and social development in Ba Ria Vung Tau province," Hoang Duc Thao, Chair of BU-SADCO, told the signing ceremony."Since we started to define the need for proper sanitation in this area, all stakeholders have been focused on making this project happen," said Doan Manh Thang, Royal HaskoningDHV's director of Water, Vietnam. "We have worked closely with BUSAD-CO, local authorities, and the Dutch government to define, design, and now carry out this much-needed solution. The environmental benefits will be visible in significantly improved water quality in the area's lakes, canals, and the Thi Vai River, and will re-sult in better living conditions for residents. It will also help SMEs protect the quality of the environment around their businesses."The wastewater solution for Phu My is the third ORIO-funded project in Vietnam that Royal HaskoningDHV will carry out. ORIO encourages public-infrastructure develop-ment in developing countries.The scheme will improve the living conditions of approximately 400,000 people. It also adds to the company's growing number of environmental improvement schemes in Vietnam, of which ten are ongoing.


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FPT reports H1 results 26/JUL/2017 INTELLASIA| VNS

FPT Corporation recorded consolidated revenue of over VND20.1 trillion (US$882 mil-lion) in the first six months of this year, up 13 per cent year-on-year.The figure is equal to 102 per cent of the target for the period.Profit-before-tax was about VND1.42 trillion, increasing by 13 per cent year-on-year and equal to 102 per cent of the target. Profit-after-tax was VND1.2 trillion, up 12 per cent year-on-year.Profit-after-tax attributable to the parent company's shareholders was VND925 billion, up 13 per cent year-on-year. Earnings-per-share was VND1.7 trillion in the six months, an increase of 12 per cent compared with the same period last year.FPT's earnings growth in the first half of the year continued to be driven by the two core business sectorstechnology and telecomwhich together accounted for 75 per cent of consolidated profit-before-tax of the group.More specifically, profit-before-tax of the technology and telecom sectors increased by 27 per cent and 17 per cent year-on-year, respectively.The distribution and retail sector achieved 103 per cent of revenue and 104 per cent of profit-before-tax targets for the period, of which the retail segment continued to per-form outstandingly in the first six months, up 31 per cent in revenue and 44 per cent in profit-before-tax.During the reported period, FPT's overseas markets recorded revenue of more than VND3 trillion, up 14 per cent, and profit-before-tax of VND450 billion, up 19 per cent.http://bizhub.vn/tech/fpt-reports-h1-results_287827.html

Digiworld records high profit in Q2


Electronics distributor sees significant rise in after-tax profit in Q2 of 77 percent.Electronics distributor the Digiworld Corporation (DGW) has released its financial re-port for the second quarter and first half of 2017, with second quarter after-tax profit reaching nearly $900,000, up an impressive 77 per cent year-on-year.Sales in the second quarter, however, reached just $34.8 million, down 16 per cent quarter-on-quarter. Cost price also fell 17.5 per cent, which led to a rise of 14 per cent in gross profit, to $2.57 million.In the first half it recorded revenue of $68.3 million and after-tax profit of $1.28 million, down 11 and 10 per cent year-on-year, respectively, for an earnings per share (EPS) of $0.03, and representing 52.7 per cent of the annual revenue plan.According to DGW, significant growth rate in the second quarter's after-tax profit was mostly driven by the company's streamlined restructuring strategy to accelerate effi-ciency.It changed its product structure in the phone sector, focusing on mobile earth station (MES) product lines to boost profit margins to 7.4 per cent. This includes profits from Xiaomi products, which began to gain recognition in the second quarter.Moreover, the office equipment sector continued to grow strongly and increased its contribution to gross profit. In addition to steady growth in current product lines, new products lines such as those from LG also contributed to the company's profit in the second quarter.Enterprise management costs fell, meanwhile, due to efficiencies from human resourc-es restructuring with more specialised and streamlined strategies, preparing for long-term business expansion plans. Good debt management also optimised the use of cash flow, saving on interest costs.One of the country's leading electronics distributors, DGW previously announced its new business strategy of jumping into the lucrative healthcare product retail market by aiming to begin functional food distribution in mid-2017. Doan Hong Viet, Chair of DGW, told VET that according to the plan the company will spend around $2 million on extending its portfolio by investing in human resources and sales outlets along with warehousing improvements. It has targeted the new busi-ness category to earn profit by 2018 and contribute to the company's revenue of about nearly $4 million in 2017.


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Earlier this year, DGW entered into a partnership with Xiaomi mobile phones to dis-tribute its products in Vietnam. Describing the agreement as a long-term strategic part-nership, the Chinese company said that DGW would distribute, market, and provide after-sales support for its offerings in Vietnam, including smartphones and its Mi Ec-osystem products.http://vneconomictimes.com/article/business/digiworld-records-high-profit-in-q2

Vietnamese firm signs trade MOU with Iranian company


An Viet International Operation Investment JSC and Iran's Rahavaran Tosee Mihan company signed a Memorandum of Understanding (MoU) last week to achieve a two-way trade volume of $500 million by 2018.Under the MoU, the two companies will carry out two-way export-import activities, in which An Viet will export Vietnamese fruits and agricultural products such as ba-nana, rice, coffee and pepper to Rahavaran Tosee Mihan, while the Iranian firm will export various local agricultural products to Vietnam through An Viet.The two sides have set a goal of achieving an export-import volume of $250 million each.Currently, An Viet is promoting the establishment of a fish sauce factory and a colla-gen drinking water production plant in Iran for export to Vietnam and other countries in the region.http://bizhub.vn/news/vietnamese-firm-signs-trade-mou-with-iranian-company_287825.html

US company seeks to build solar energy plant in Can Tho


The Dragon Capital Management Limited of the US discussed its plan to build a solar energy plant with authorities of the Mekong Delta city of Can Tho at a working session on July 25.The company's investment director, Gavin Smith, said the city has favourable condi-tions for such a plant, adding that the company will begin feasibility studies in August, with construction to be started in the first quarter of 2018.According to him, the plant will be built in two phases, with the first phase having a capacity of 29 MW and the second 100 MW, with an initial investment of 1 trillion VND (44 million USD).The city suggested two sites for the future plant, both in the O Mon industrial park, asking the company to submit detailed reports on the construction of radiation meas-urement stations, the plant's technical data and safety.http://en.vietnamplus.vn/us-company-seeks-to-build-solar-energy-plant-in-can-tho/115390.vnp

Vietjet Air, Japan Airlines ink cooperation deal


Vietjet Aviation Joint Stock Company (Vietjet Air) and Japan Airlines (JAL) on July 25 signed a cooperation agreement in order to improve their service quality and turnover.Under the agreement, the two airlines will initially launch a code-share partnership for routes between Japan and Vietnam, their domestic flights as well as flights between Vi-etnam and other Asian nations.Besides, they will join hands in regular customer services, technical maintenance, training and ground services.Japan Airlines deputy general director Tadashi Fujita said the Japanese carrier believes that the deal will help increase the numbers of passengers and cargoes between the two countries.Vietjet Air Managing director Luu Duc Khanh said Japan is a key market in Vietjet Air's plan to expand its network across Asia-Pacific.The cooperation is expected to help diversify products, classify customers, stimulate travel demand in Vietnam and Japan in the time ahead, and enhance links between the two airlines, he said.The two airlines also discussed the launch of more flights to meet the increasing travel


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demand of people in Asia and the two countries in particular.Japan Airlines is conducting routes from Narita airport in Tokyo to HCM City and Ha-noi and from Haneda airport in Tokyo to HCM City.Vietjet is the first private airline in Vietnam to operate as a new-age airline with low-cost and diversified services to meet customers' demand.Currently, the airline boasts a fleet of 45 aircraft, including A320s and A321s, and op-erates 350 flights a day. It has already opened 63 routes in Vietnam and across the re-gion to international destinations such as Thailand, Singapore, the Republic of Korea, Taiwan, Malaysia, China and Myanmar. It has carried nearly 35 million passengers to date.http://en.vietnamplus.vn/vietjet-air-japan-airlines-ink-cooperation-deal/115389.vnp

Australian brewer eyes Sabeco and Habeco shares


With the aim of expanding operations in Vietnam, Carlton & United Breweries (CUB) has become a new competitor in the race to seize the stakes in Hanoi Beer, Alcohol and Beverages Corporation (Habeco) and Saigon Beer, Alcohol and Beverages Corporation (Sabeco).The companies intentions were stated by CUB general director January Craps at the meeting of deputy prime minister Vuong Dinh Hue and the delegation of Australian enterprises on July 24, according to newswire Vnexpress.According to January Craps, CUB plans to expand its operations in the southern prov-ince of Binh Duong and is looking to become the strategic investor of both Habeco and Sabeco.According to information released by the Ministry of Industry and Trade (MoIT) at its monthly press conference organised on July 14, the sale of state stakes will be carried out this year.Bui Truong Thang, deputy director general of MoIT's Light Industry Department, said Habeco will submit its divestment plan to the ministry this week and Sabeco's divest-ment plan will also be submitted before the end of the month.At present, Habeco signed with Bao Viet Securities Company (BVSC) and Vietnam Valuation and Finance Consultancy (VVFC), appointing them as the consultancy firms for the state divestment.Regarding Sabeco, according to unofficial information, a venture of BVSC, VVFC, and Earnst & Young Vietnam Limited was selected as the consultancy group for the state divestment.The state divestment from Sabeco and Habeco has also attracted numerous foreign in-vestors. Notably, in November 2016, Thai Beverage Public Company Limited (Thai Beverage), Japanese Asahi Group Holdings Ltd and Kirin Holdings Co. released their plans to bid for Sabeco's shares.Several other foreign brewers have been eyeing Sabeco since it was earmarked for eq-uitisation, such as San Miguel, Heineken, and SABMiller. The move is part of these companies' overseas expansion plans to counterbalance shrinking domestic markets.Danish brewer Carlsberg, owning a 17.5 per cent stake in Habeco, also intends to in-crease its holdings.The reason for foreign investors' interest in Habeco and Sabeco is that Vietnam ranked among the Top-10 beer consumption markets in the world at the end of 2016, with total consumption projected to grow by 10 per cent year-on-year, to reach four billion litres in 2017.Established in 1907, CUB is currently the largest beer brewer in Australia, holding 47 per cent of the beer market. Some of Australia's most famous brands, including Victo-ria Bitter, Carlton Draught, Crown Lager, Melbourne Bitter, Pure Blonde and Cascade come from the company's breweries. In 2011, the company joined the SABMiller group, the second largest brewer in the world.http://www.vir.com.vn/australian-brewer-eyes-sabeco-and-habeco-shares.html


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CJ CheilJedang announces vision for VN food business


CJ CheilJedang, a subsidiary of South Korean conglomerate CJ Group, on Monday an-nounced a new vision for its food business in Vietnam.Accordingly, focus will be on four main factorshealth, quality, hygiene and safety."Vietnam is considered a strategic market of CJ CheilJedang in Southeast Asia," com-pany general director Kim Chul Ha said, adding that his firm has been expanding its food business in the country over the past few years.The company has injected nearly VND1.4 trillion (US$61.5 million) in developing a complex with food processing and research and development (R&D) facilities, along with conducting food safety research in the country, aimed at providing customers safe and quality products.The under-construction complex in HCM City's Hiep Phuoc Industrial Zone is slated for completion in July 2018, providing 70,000 tonnes of products annually.Besides this, CJ CheilJedang also acquired 71.6 per cent stake in CJ Cau Tre Food Joint Stock Co, which specialises in making frozen food from seafood, meat and tea prod-ucts. CJ CheilJedang is currently the company's largest shareholder.Earlier, the mother company, CJ Group, set a target of generating $700 million from food revenue in Vietnam by 2020, introducing more quality and safe products to the market.http://bizhub.vn/corporate-news/cj-cheiljedang-announces-vision-for-vn-food-business_287823.html

Dung Quat oil refinery works on expansion project


The State-owned Binh Son Refinery and Petrochemical Company Limited (BSR) has completed the overall plan for the upgrade and expansion of the Dung Quat Oil Refin-ery.Tran Ngoc Nguyen, CEO of BSR, said the expansion project will cost more than $1.8 billion, of which equity capital and loan capital will account for at least 30 percent and 70 percent, respectively.BSR plans to borrow some $1.26 billion, Nguyen said, adding that the estimated loan amount is in line with the prime minister's decision on granting approval.Under the project, BSR will set up and put into operation some additional technology workshops for the processing of crude oil with higher sulfur content, such as Murban, ESPO and Arab Light, increasing the stable supply of petroleum products in accord-ance with the euro 5 standard.Crude oil supply of the refinery will also be significantly increased, thus helping it be-come less dependent on crude oil supply from the Bach Ho (White Tiger) oil field.Expansion work is expected to be completed by 2021, following which Dung Quat Oil Refinery will have capacity to refine 8.5 tonnes of crude oil per year.http://english.vov.vn/economy/dung-quat-oil-refinery-works-on-expansion-project-355284.vov

Binh Dinh's Chair speaks up for FLC Group


Chair of the Binh Dinh People's Committee said that he would personally take respon-sibility for a number of procedural violations in FLC Group's project in the central province of Binh Dinh, and requested the Ministry of Construction (MoC) to work with the province to further clarify a number of issues in the inspection report.A recent inspection by MoC revealed numerous procedural violations in FLC Group's project in the central provinces of Binh Dinh and Thanh Hoa.In the inspection report, MoC recognised that FLC has been implementing a number of projects, contributing to the socioeconomic development of many regions in the country. However, aside from positive contributions, MoC inspectors also listed nu-merous violations in the implementation of FLC Quy Nhon and FLC Sam Son com-plexes, including the lack of various planning and inspection records as well as permits.According to VnEconomy, on July 23, Ho Quoc Dung, Chair of the Binh Dinh People's


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Committee, spoke with reporters about the inspection. He stated that the province will request to work with MoC to further clarify some of the issues in the inspection report.Dung said that the Binh Dinh People's Committee allowed FLC to work on the Quy Nhon project before completing all procedures outlined in the province's policies of at-tracting investment, creating jobs, and promoting local economic development. He also said that sometimes investors are "victims" due to various hiccups in the licensing procedures.Dung stressed that the reason many projects have been committing procedural viola-tions in recent years is partly because the process still has redundancies and the inspec-tion process for licensing is very slow, affecting investment efficiency. Not to mention, current regulations on procedures for construction still have many limitations that need to be addressed."If the licensing process takes several years, surely investors will be discouraged. When the project's economic efficiency is affected, investors will lose motivation. On the other hand, if the project can be finished quickly, the benefits for the local economy will be great," Dung stressed. "The province allowed developers to design and carry out the projects, while working on the necessary paperwork. This helped the develop-ers finish their projects quickly, while at the same time increased the province's budg-etary revenue and created thousands of jobs."According to Dung, these violations did not cause serious consequences. On the con-trary, they even contributed to the national and local economies and should be han-dled with consideration. At the same time, MoC should review and revise the necessary regulations in order to create a more accommodating legal framework for businesses."The government's focus should be on providing better conditions and facilitating the business environment to grow. The role of local governments in this is very impor-tant," he said."For a poor province like Binh Dinh, attracting private capital to develop the economy is extremely important. Without capital from private businesses, it is very difficult for the province to develop." Dung also noted that before FLC, Binh Dinh did not have any major investors in tourism infrastructure.Returning to the conclusion of MoC's inspection, Dung said he is prepared to person-ally take responsibility and present an explanation to the prime minister."Even if these violations draw disciplinary action, I would still request that govern-ment agencies at all levels try to facilitate and support businesses," he said.According to MoC's inspectorate, the people's committees of Thanh Hoa and Binh Dinh, and developer FLC, must report on the implementation of the procedures rec-ommended by MoC by September.FLC said that all paperwork and procedures have been completed in accordance with the laws and regulations and have been submitted to the relevant agencies.No statement has been made by the Thanh Hoa People's Committee or its chair so far.http://www.vir.com.vn/binh-dinhs-chair-speaks-up-for-flc-group.html

Hanoi asks Uber to share database


Chair of the Hanoi People's Committee Nguyen Duc Chung asked Uber Group to share its database to help the city manage the number of cars and individuals in the network and income tax collection.He also asked the group to provide information with the city to reach mutual agree-ment on development plans to avoid traffic jams.The chair met with the company's representatives during his working trip to the US last week.Chung said that Uber was a pioneering company in using social resources and idle cars for customer transport, helping them improve incomes and build a form of trans-port in the city.Hanoi wants to use its technology for traffic management, and asked the group to obey all Hanoi's regulations and Vietnam's laws, he said.


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However, the drawback of Uber's business plan was its adverse impact on the city's traditional taxi firms, he added.Thuan Pham, Uber chief technology officer, affirmed that he would convey the request to Uber's management board.He also agreed that Uber drivers should pay tax and committed to working with city authority on the issue.During the visit Chung also held working sessions with leaders of San Francisco and Utah.Mayor of San Francisco Edwin Lee told Chung his city was willing to boost coopera-tion in trade and science-technology with Hanoi. San Francisco would continue to ex-change information and build projects on connectivity with Hanoi and other localities, he said.Lee suggested that Hanoi should focus on science-technology and education-training to develop a smart city, adding that the opening of a direct air route between Hanoi and San Francisco will create momentum for stronger bilateral cooperation and trade.http://bizhub.vn/news/ha-noi-asks-uber-to-share-database_287804.html

Annual Report Awards honour 2017 winners


Vietnam Annual Report Awards have unveiled the top reports of its 2017 edition.The list of the winners of the 2017 Annual Report Awards (ARAs) has been announced tonight in HCM City. This year also marks the tenth edition of the awards, jointly or-ganised by VIR, HCM City Stock Exchange (HOSE), and the Hanoi Stock Exchange (HNX) with support from Dragon Capital.Out of the 638 eligible reports submitted by firms listed on HOSE and HNX, 125 have made it to the final round. The judges have hand-picked 50 reports to honour at to-night's ceremony, divided into the Top 10, the Top 30, and the Top 50.Some companies have earned bonus points for preparing their reports under Interna-tional Financial Reporting Standards (IFRS) and for providing an English version.For the first time ever, the reports in the 2017 ARAs have been evaluated by four lead-ing audit firms Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers. The number of judges also increased from seven to nine, with new members from Vietnam Securities Depository and Vietnam Chamber of Commerce and Industry.Similar to previous years, firms with outstanding reports on corporate governance and sustainability were also celebrated."Throughout the past ten years, the ARAs have been tirelessly promoting information transparency in Vietnam," said VIR's editor-in-chief Le Trong Minh.Le Hai Tra, deputy CEO of HOSE, stressed that annual reports, and information dis-closure in general, are vital for Vietnamese companies to attract overseas funding.Looking forward, the ARAs' organisers expect to invite a wider variety of business groups, professional circles, and policymakers from Vietnam and overseas to join the Selection Board. This will enhance the objectivity of future ARAs.http://www.vir.com.vn/annual-report-awards-honour-2017-winners.html

Activities kick-start ABAC 3 week in Canada


Business leaders from Apec member economies visited technology hubs in Canada on July 24, as part of activities to kick-start the third meeting of the Apec Business Advi-sory Council (ABAC) in 2017 to take place in Toronto, Canada from July 24-28.They visited the engineering and assembly facility of the Bombardier aircraft manufac-turer and the MaRS urban innovation hub.Bombardier is Canada's biggest commercial airplane and high speed train producer. It has invested in some 40 train projects and supplied nearly 1,000 commercial small-sized airplanes for Asia Pacific.Meanwhile, MaRS is one of the world's largest startup and urban innovation hubs. It helps enterprises adapt to challenges in health, energy, environment and start-up models.An opening ceremony is due to take place on July 25, beginning a series of meetings


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and conferences on the sidelines of the event.A Vietnam delegation led by ABAC Vietnam Chair Hoang Van Dung attends the meeting.Established in 1995, the ABAC is the private sector arm of the Apec to advise Apec eco-nomic leaders and officials on issues of interest to business.http://english.vov.vn/economy/activities-kickstart-abac-3-week-in-canada-355270.vov

Vietnam Export Forum 2017 expects to attract 400 businesses


Strong businesses and organisations such as Amcham, AEON and TopValu have reg-istered to take part in the Vietnam Export Forum 2017, which will place in HCM City on August 8th, according to the Investment & Trade Promotion Centre.Main forum speakers include Executive director of AmCham Vietnam, John Rockhold, general director of AEON Vietnam, Yasuo Nichitohge, general director of TopValu, Yuichiro Shiotani and director of United Overseas Bank, Harry Loh.The speakers will analyse and discuss a range of topics, including key export markets of Vietnam, like the US, EU and Japan, challenges facing domestic businesses when joining the global supply chain and the use of safeguard measures.They will also propose effective measures to make domestic exporters more competi-tive in key markets, as well as help domestic businesses adjust their production and management processes in order to raise the quality of their products to a point where they meet the technical requirements and trade barriers of importers in order to join the global supply chain.According to the Ministry of Industry and Trade, Vietnam's exports increased by 18.8 percent to $97.7 billion in the first half of this year.http://english.vov.vn/economy/vietnam-export-forum-2017-expects-to-attract-400-businesses-355263.vov

Vietnam Medi Pharm Expo to be held in August


The Vietnam Medi Pharm Expo 2017 will be held at the Sai Gon Exhibition and Con-vention Centre, HCM City, from August 17 to 19, 2017.This year, 250 businesses will be participating in the expo, including giant corporations and leading global companies from 22 countries and territories such as the US, Germa-ny, France, Russia, Turkey, Republic of Korea, Japan, and China.The exhibition will focus on presenting medical and laboratory equipment, health care products, pharmaceuticals, functional foods, cosmetics, cosmetic equipment, process-ing machinery, pharmaceutical packaging products and dental and ophthalmic equip-ment.The highlight of the exhibition will be the Japanese booths with high-tech medical products, Indian booths with pharmaceuticals and laboratory equipment, and China's display of toxic detectors, rapid diagnostic tests, electric saws, medical drills for ortho-pedic surgery and herbal medicines.In addition to trading activities among enterprises, the exhibition will also include a seminar "Introduction to Vietnam's Pharmacy and Medicine MarketCurrent regula-tions and policies" organised by the Ho Chi Minh Medical Equipment Association, in collaboration with the Vietnam Drug Administration and Department of Medical Equipment and Health Works (Ministry of Health).Besides, the event covers a programme for foreign businesses to visit a large hospital in HCM City in order to get an overview of the medical examination and treatment needs of local residents.Vietnam Medi Pharm Expo is an annual event taking place in HCM City in August and Hanoi in December.The expo is designed to promote trade activities in pharmacy and medical equipment. The exhibition is a platform for advanced medical technologies and equipment com-panies from around the world to access local private and public hospitals as well as local pharmacy companies, in which Vietnam has the advantage to initiate exchanges.


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Chinese trade fair set for Hanoi in August


More than 100 companies from the Chinese province of Zhejiang are set to come to-gether to showcase their textile expertise at a trade fair in the capital city of Hanoi this August, reports the Vietnam News Agency.This year's 6th edition, regarded as an important international platform for textiles, consumer electronics and home furnishings, will open its doors daily August 3-5 at the International Centre for Exhibition located at 91 Tran Hung Dao Street.The event, said Trinh Xuan Tuan of Vinexad, the organiser, will serve as a barometer for the upcoming year, spotlighting contemporary trends and innovations in interior textiles, home furnishings, household textiles and a range of allied services.Last year's event closed with the signing of $24 million of contracts, solidifying its sta-tus as a major exhibition for boosting trade and investment between the Chinese and Vietnamese business communities.http://english.vov.vn/trade/chinese-trade-fair-set-for-hanoi-in-august-355277.vov

VietFood & Beverage-ProPack 2017: a cavalcade of international colours


The 21st VietFood, Beverage and Professional Packing Machines (VietFood & Bever-age-ProPack) exhibition will take place in Saigon Exhibition and Convention Centre at 799 Nguyen Van Linh Street, District 7, HCM City, from August 9 to 12, 2017.The series of events have been a significant trade promotion platform, with the partic-ipation of two important sectors. On one hand, the food and beverage section will dis-play five product categories (food, agricultural, local, and aqua-sea products; beverage; nutrition, pharmaceutical food; materials and ingredients). The other sec-tion of the event will highlight machinery and equipment, packaging and food preser-vation products, and franchise opportunities.The side-line events will also offer plentiful showcasing and networking opportunities as they are held in collaboration with the Vietnam Association of Retailers (AVR), the Ho Chi Minh Food and Foodstuff Association (FFA), the Vietnam Beer-Alcohol-Bev-erage Association (VBA), the Young Business Association and the Ho Chi Minh Busi-ness Association.Vietfood & Beverage-ProPack has brought in huge commercial values in its more than 20 years of annual event attracting well-known domestic and international brands. This year will see the participation of 500 businesses from 20 countries and territories, raising about 600 pavilions. Notable participants hail from Taiwan, Poland, Malaysia, Thailand, Korea, China, and of course Vietnam.In 2016, the exhibition attracted 425 companies and 500 pavilions from 21 countries and territories, including pavilions from Poland, Taiwan, Korea and China.Statistics reported 15,300 visitors and working sessions in which 9,200 businesspeople managed to secure deals in the sectors of export-import and distribution, food process-ing, beverage and packaging manufacturing, supermarkets and retail, and hospitality.The Vietnamese beverage sector has a steady growth in both production scale and quality, propelled by well-known brands like Habeco, Sabeco, Tan Hiep Phat, and A&Ball of whom are regular participants at the exhibition. The Vietnamese giants co-operate to offer a 'Drinks Festival'a chance for businesses to meet with partners and open more markets.Besides regulars, like Korea, Thailand, Poland, and Taiwan, the exhibition will be made even grander by first-time participants from the Czech Republic, UAE, Brazil and France whose innovative products will be a novelty to visitors, giving the event added colour.Local companies make up about half of the 500 participants, showcasing potential products like tea, coffee, processed agricultural products, as well as fresh and dried fruits.Third-timer Tan Nhat Huong Company's pavilion will showcase their selection of cof-fee and baking ingredients, while four-year participant Canh Dong Vang Company will offer juice and jam products to visitors.Seven-year participant VISSAN Company will promote its flagship sausages, cold


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meat, and canned food products, and ten-year participants Don On Company and Tan Quang Minh Company will showcase chestnut, oat, and peanut products.The event will also feature logistics companies, such as Tay Bac Sai Gon, as well as food and beverage network administration system providers OneICC, Auphan Software, and Mobiwork.Additionally, Long Hau Industrial Park in the southern province of Binh Duong will introduce their warehouse and storage offerings.International pavilions also have an exciting line-up of products and services on dis-play. For instance, Poland's pavilion will show green agricultural solutions as well as fresh fruit, including apples, blueberry, and strawberry, and milk, cheese, biscuits, and cereals.The 70 booths of the Korean pavilion will showcase the products such as seaweed, red ginseng, and canned food products.Returning for the fifth time, the Taiwanese pavilion will present food, machinery, as well as crystal and tea products.The Malaysian pavilion will display processed food and snack products from 16 com-panies.The Thai pavilion will present juices and energy drinks that are becoming increasingly popular among local consumers.http://www.vir.com.vn/vietfood-beverage-propack-2017-a-cavalcade-of-internation-al-colours.html End


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