BUSINESS IN BRIEF 28/11 2013 export turnover to hit over US$132 billion Vietnam earned an export turnover of US$121 billion in the past 11 months, being closer to achieving its target for the whole year. According to the General Statistics Office (GSO), its export revenue was estimated at US$12.3 billion in November, representing an increase of 18.9% compared to a year earlier. The 11-month figure showed a year-on-year increase of 16.2%, with the foreign-invested sector making US$81.2 billion (up 23.5%) and the State-owned sector US$39.9 billion (up 3.6%). Key export items included telephones, garment and textiles, electronics, computers and spare parts, footwear, plastics, timber and leather products, and fruit and vegetable. The Ministry of Industry and Trade (MoIT) has fixed the yearly export turnover at US$126.1 billion, 10% higher than last year. With the rising export growth in recent months, Vietnam is likely to surpass the target. HCM City pledges favourable conditions for Japanese investors Chairman of the Ho Chi Minh City People’s Committee Le Hoang Quan has affirmed his city’s willingness to offer favourable conditions for Japanese investors to do business and seek cooperation opportunities in the city. At a November 26 reception for Vice President of the International Friendship Exchange Council of Japan (FEC) Nakagaki Yoshihilo, Quan highlighted the Japanese delegation’s visit as a significant event which contributes to further promoting bilateral cooperation in a wide range of fields, especially in trade and economics. There are over 600 Japanese businesspeople investing in Vietnam’s southern economic hub with total capitalization of more than US$2.9 billion. Informing the guest of local investment policies, Quan said the Vietnam-Japan industrial park is being built on an area of over 100 hectares. Yoshihiko applauded the city’s achievements over the past time, which he said, demonstrate its will to restore and sustain local economic growth, thus gaining high confidence from foreign investors. He said he was impressed by Vietnam’s policies of developing economics, industry, trade and investment, adding that he believes the active cooperation among and support from businesses will help promote the sound relationship between Vietnam and Japan. Forum connects Vietnamese, Australian businesses The Vietnam- Australian Northern Territory business forum aims to further enhance economic and trade links between Vietnamese and Australian businesses. The four-day event (November 22-25) was hosted by the Vietnamese Consulate General in Perth in coordination with the Chamber of Commerce of Australia’s Northern Territory and the Vietnam-Australia Building Industry Services Ltd (VABIS), attracting Vietnamese officials, entrepreneurs and representatives of major Australian businesses. In his speech, Adam Giles, Chief Minister of the Northern Territory praised Vietnam's active participation in hosting the forum which, he said, will create a linkage between Vietnamese businesses and Australian counterparts. The Northern Territory Government is keen to boost closer ties with Vietnam, especially in areas of both sides’ strengths such as construction, investment, oil and gas exploitation, education, training and agriculture, Adam Giles said. He also expressed his admiration for Vietnam’s vigorous developments over the years and pledged greater efforts to promote his territory’s preparation for the early signing of cooperation documents with major cities like Hai Phong and HCM City in Vietnam. At the forum, Consul General Le Viet Duyen spoke highly of Vietnam’s huge potential for cooperation with the Northern Territory on the basis of healthy developments in bilateral relations over the past 40 years, especially since both nations established a comprehensive strategic partnership in 2009. The Vietnamese diplomat suggested Vietnamese and Australian businesses should grasp and take full advantage of trade and investment opportunities by strengthening connectivity, exchanging products and complying with law in each nation. Vietnamese businesses should seize Northern Territory opportunities for education and training cooperation, particularly in its sectors that need intensive labour, Duyen said. The Northern Territory is seen as one of Australia’s economic engines with the highest annual growth of 4.5 percent and this year’s GDP estimated at nearly AU$20 billion. This figure is predicted to double by 2030. Vietnam is currently an important partner of the Northern Territory second only to Indonesia in terms of cow exports. The country also has advantages for cooperation in the fields of tourism, investment and trade, and construction. Vietnamese cashew nut exports rocket in 2013 Vietnam shipped abroad 212,000 tonnes of cashew nut in the first ten months of this year for US$1.34 billion, up 15.5 percent in volume and 8.5 percent in value despite a sharp fall in price. The Ministry of Agriculture and Rural Development said the US, China and the Netherlands remain Vietnam’s largest markets, consuming 34 percent, 17 percent and 10.2 percent of the country’s exports respectively. Facing many difficulties in the global cashew market, the export of Vietnamese cashew has continued to grow thanks to the sector’s trade promotion efforts, especially in new markets in the Middle East and Northern Asia. According to the Vietnam Cashew Association (Vinacas), Vietnamese cashew has so far reached 100 markets around the world. The association held that cashew exports will improve in the final two months of this year with signs of a price rise and increasing demand, especially in the upcoming Christmas period and New Year. Since 2009, Vietnam has been the world’s largest cashew exporter. In 2012, the country shipped abroad 223,000 tonnes for US$1.48 billion. Earlier this year, Vietnam set a target of earning US$1.5 billion every year in the 2013-2015 period from exporting cashew and cashew products. Vinacas recently forecast that the figure may reach US$1.7-1.8 billion. Coastal district to tap development HCM City's coastal district of Can Gio has been told to further tap its potential, especially in aquaculture and tourism, to reach socio-economic development targets for the 2011–15 period. Speaking on Wednesday at a meeting to review Can Gio's development over the past three years, the chairman of the HCM City People's Committee, Le Hoang Quan, said the coastal district's economic growth remained low. He said the average annual GDP growth rates of Can Gio during 2011-13 were lower than the annual targets set for the 2011– 15 period. Can Gio District attained total GDP of over VND14 trillion (US$666.6 million) in the past three years, for an average annual GDP growth rate of 10.8 per cent. Quan said Can Gio's GDP growth rate had shown a downward tendency in 2013. The growth rates of major economic sectors, such as aquaculture and tourism, were slow. According to the Can Gio District People's Committee, the district attained total GDP of VND2.79 trillion ($132.8 million) in the first eight months of 2013, a year-on-year increase of 2.8 per cent, and accounting for 51.8 per cent of the district's socio-economic targets for the year. The district attained total aquaculture production of VND665 billion ($31.6 million) in the same period, a year-on-year increase of 2 per cent, and accounting for 52 per cent of the year's targets. HCM City crucial to Mekong growth Leaders of HCM City and the Cuu Long (Mekong) Delta region called for further co-operation between their businesses at the Cuu Long (Mekong) Delta Economic Co-operation Forum held yesterday in Vinh Long Province. Since 2001, HCM City has invested in 23 industrial parks and export processing zones and 1,001 projects in 13 provinces and cities in the Delta region. Most of the projects are in the fields of agriculture, aquaculture, transport infrastructure, urban areas, trade and tourism. According to the Southwestern Steering Committee, total registered capital of HCM City's enterprises in the Delta is VND264 trillion (US$12.57 billion). The coastal province of Kien Giang attracted the highest number of investment projects from HCM City, with 115 projects and registered capital of more than VND117 trillion ($5.57 billion). Long An Province ranked second, with 628 projects with more than VND88 trillion ($4.19 billion). After Kien Giang and Long An, An Giang received 54 projects from HCM City; Tien Giang, 44; Can Tho, 34; Ben Tre, 29; Vinh Long, 20; Bac Lieu, 19; and Tra Vinh, nine, according to the HCM City People's Committee. Nguyen Phong Quang, deputy chairman of Southwestern Steering Committee, said that the Cuu Long (Mekong) Delta had also contributed human resources and raw materials to HCM City's development. "Co-operation between HCM City and the Delta has deepened, producing satisfactory results in fields including agriculture and fishery," Quang said. HCM City, the country's gateway to several countries, is a market for Cuu Long (Mekong) Delta's goods, Quang said. Le Hoang Quan, chairman of the HCM City People's Committee, who attended the meeting with Cuu Long (Mekong) Delta provinces' leaders, said that co-operation between the city and Delta was essential for both. He cited the case of HCM City's Saigon Coop which has opened branches in 13 provinces and cities of the delta. The company purchases many goods produced in the Delta. Nguyen Hoang Minh, deputy director of HCM City's Department of Planning and Investment, said HCM City wanted to expand co-operation and establish full linkages with the delta. Transport links Speaking at the forum, Nguyen Van The, Deputy Minister of Transport, said with better linkages between the big market of HCM City and the Delta, living conditions of residents in the southern region would improve. The said he was optimistic and cited improved transport, including the HCM City – Trung Luong Freeway, which has shortened the distance between HCM City and Tien Giang Province. "The construction projects for the Trung Luong – Can Tho Freeway and the railway from HCM City to Can Tho is under research. Several investors from the US and Spain are interested in investing in the HCM City – Can Tho Railway," The said. "With the transport system, food produced in the Cuu Long (Mekong) Delta will be transported to HCM City quickly," he pointed out. He added that the Vam Cong Bridge over Hau (Rear) River, which is under construction, and the Cao Lanh Bridge over Tien (Front) River, which is still in the planning stage, would also created a faster route between the Delta and HCM City. Fisheries reshuffle to increase domestic seafood production The fisheries industry will be restructured to increase the added value of products and ensure future development under a new decision by the Ministry of Agriculture and Rural Development (MARD). Decision 2760/QD-BNN-TCTS, issued on November 22, aims to improve efficiency and competitiveness by increasing the output, quality and added value of seafood products. The plan also seeks to improve the incomes and living standards of fishermen in coastal regions and ensure national food security by 2020. The ministry set a 6 per cent average growth rate target for production value by 2020. The average rate would be 3 per cent for fisheries, 8 per cent for aquaculture and 6 per cent for the value of seafood exports. The ministry also aims to keep output stable at 2.4-2.6 million tonnes per year by 2020, while reducing the output of coastal fishing from 1.2 million tonnes to 0.8-0.87 million tonnes and increasing the output of offshore fishing from 1 million tonnes to 1.4-1.53 million tonnes. MARD will increase state budget investment in the fisheries industry from 7 per cent of the total investment in the 2011-15 period to 10 per cent during the 2016-20 period. The additional funds would focus on output research and forecasting, management of fisheries, infrastructure, disease prevention and production testing systems. Export value of seafood for the first 11 months of this year increased year on year by 9.1 per cent to US$6.11 billion, according to the ministry. The US was the largest importer of Vietnamese seafood, accounting for 22 per cent of the total export value. In the first ten months, the export value of seafood to the US jumped 19.9 per cent to $1.19 billion. The export value of seafood to other countries also went up, with exports to China rising 58.6 per cent; those to Canada, 28.2 per cent; and those to Thailand, 8.3 per cent. The Viet Nam Association of Seafood Exporters and Producers (VASEP) expected further growth in the last quarter due to increasing shrimp export value, though the export value of tra fish would struggle to recover and export value of tuna and other kinds of seafood would decline against the last quarter of 2012. In the last quarter of 2013, the export value of seafood was estimated to reach $1.7 billion, 6.5 per cent higher than the same period of last year. The value for this year is expected to increase 5 per cent to $6.5 billion. Vietnam, northern Aussie businesses to explore new fields The Northern territory of Australia is eager for closer linkages with Vietnam in construction, investment, oil and gas exploitation, education and training and agriculture in the coming time. Northern territory Chief Minister Adam Giles was speaking at a business forum jointly held by the Vietnamese General Consulate in Perth, the administration of the Northern territory, and VABIS group from November 22-25. Gile said he hopes the event would bridge businesses of Vietnam and the territory in enhancing economic and trade activities between the two countries. The region expects to sign cooperation agreements with northern Hai Phong city and southern Ho Chi Minh City in the coming time, he added. General Consul Le Viet Duyen said he hopes Vietnamese businesses will grasp opportunities offered by the Northern territory, especially its labour needs. The Northern territory of Australia has an annual growth rate of 4.5 percent, which is the country’s highest rate. Its estimated GDP of nearly 20 billion AUD in 2013 is expected to double by 2030. Vietnam is currently the territory’s second largest cow importer after Indonesia. The two sides also hold potential for partnerships in tourism, investment, trade and construction. ITACO to amend thermal power project Tan Tao Investment and Industry Corporation (ITACO) has received approval from the Ministry of Industry and Trade to transfer its huge thermal power project in Kien Giang Province from a build-own-operate model to a build-operate-transfer project, a move that will help the company get the Government to guarantee the project. By December 31, if the company failed to change the business model, the ministry would consider choosing other investors, Kien Giang People's Committee Vice Chairman Pham Vu Hong said on the provincial website. Construction of the US$6.7 billion Kien Luong plant had been delayed for years due to ITACO's failure to negotiate power-purchase contracts with Electricity of Viet Nam (EVN) and lack of capital, Hong said. ITACO had once petitioned for a Government guarantee for the project, but failed as the project was being developed under a build-own-operate model, he said. ITACO General Director Nguyen Tuan Minh said the company would continue to implement the project after transforming its form to a build-operate-transfer model. Currently, the company was negotiating with partners about the project's eligibility and its cost as well, he said, adding that when finished, the company would submit the plan to the ministry and then re-negotiate with EVN. In August 2008, the Prime Minister approved the three-stage project, which includes a 4,400 – 5,200MW thermal power plant and the Nam Du Deep Seaport on An Son Island, 60km from the plant. ITACO, a subsidiary of Tan Tao Group, is licensed to invest $6.7 billion in the Kien Luong Thermal Power project. According to the licence granted to ITACO, construction of the first stage of the project, with an output of 1,200MW, is scheduled for completion by the end of this year. ITACO filled 88ha of the site, built an 8km embankment and paid compensation to families who were forced to relocate. But construction of the project was suspended in August 2010, and no further work was undertaken because ITACO failed to seek funds for the project. In late April, the provincial People's Committee warned that it would halt the project if ITACO failed to arrange capital for investment in the plant before June 30. Agriculture earnings grow despite rice, coffee plunge Export earnings from agricultural, forestry and fisheries products in the first 11 months of the year recorded a 1.5 per cent increase year-on-year, reaching US$25.2 billion. Nguyen Viet Chien, director of the Ministry of Agriculture and Rural Development's Informatics and Statistics Centre, said the situation was not all positive because of a sharp drop in key exports, such as rice, coffee and rubber. However, exports of pepper, cashews, timber and aquatic products had grown higher. In the period, export turnover of key agricultural staples was estimated at $12 billion, a fall of 11.3 per cent from last year. Fishery exports rose 9.1 per cent and forestry products, 19.2 per cent. The volume of rice exports fell 16.1 per cent to 6.29 tonnes and the value fell to $2.78 billion, a drop of18.8 per cent. China remained Viet Nam's largest rice importer, taking 31.1 per cent of Viet Nam's total rice exports. Exports rose 5.1 per cent to 1.92 million tonnes, worth $800.7 million. Total rubber exports in the period surged 5.4 per cent to reach 955,000 tonnes. They were valued at $2.24 billion, down 12.2 per cent. Chien said rubber exports to China made up 43.4 per cent of the total. However, during the period it bought 3.9 per cent less in volume and 19.7 per cent in value. Malaysia was the second largest importer of Vietnamese rubber, accounting for 21.1 per cent of all exports. The export of tea fell 5.3 per cent to 128,000 tonnes while the value was down 0.1 per cent at $206 million. Pakistan remained Viet Nam's largest tea importer, but its imports fell 10.7 per cent in volume and 6.5 per cent in value. Taiwan bought 2 per cent more tea than it did in the same period one year ago. The volume of coffee exports fell 14.4 per cent during the period to reach 1.18 million tonnes worth $2.51 billion, a 24.4 per cent year-on-year decrease. Germany and the United States continued to be Viet Nam's largest coffee importers, accounting for 13 per cent and 10.8 per cent respectively. Coffee exports to Russia grew 4.7 pert cent; to Britain, 4.7 per cent; and to Japan, 4 per cent from last year. Cashew exports were a bright point in the export scene. Volume surged 17 per cent to 238,000 tonnes and the value rose 10.1 per cent to $1.49 billion. The US, China and Holland remained Viet Nam's biggest cashew importers with growth rates of 33.2 per cent, 17.2 per cent and 9.9 per cent respectively. And the volume and value of cashew exports to Singapore soared 59.3 per cent and 43.4 per cent respectively. Forestry and fisheries staples surged against the same period last year. Exports of timber and timber products topped $4.87 billion, up 15.8 per cent from last year. Exports to South Korea were up 47.2 per cent; to China, 33.1 per cent; to Japan, 22 per cent; and to the US, 9.3 per cent. Decree details implementation of new law on advertising The Government recently issued Decree No 181/2013/ND-CP (14 November 2013) providing details on implementation of a number of articles of Law on Advertising in relation to advertising special goods or services, advertising on websites of foreign organisations or individuals providing cross-border advertising services, outdoor advertising and representative offices of foreign advertising enterprises in Viet Nam. Advertising special goods or services Special goods or services listed in the Decree are advertised only after obtaining the verification on advertisement contents of the competent bodies (the Ministry of Health, the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade or their authorised bodies). The list of special goods or services advertised includes medicines, cosmetic products, foods, food additives, chemicals, medical equipment, milk, nutritional products used for children, medical services, pesticides, fertiliser and the like. Advertising on websites of foreign organisations or individuals providing cross-border advertising services A website of foreign organisations or individuals providing cross-border advertising services and earning revenue from advertising in Viet Nam means it has a server located in the foreign country and provides advertising information to users in Viet Nam. The website must satisfy Viet Nam's requirements regarding management, supply and use of internet services and network information. Vietnamese organisations or individuals desiring to advertise their goods or services on the website must do it through an advertising service provider. The owner of the website must notify in writing to the Ministry of Culture, Sports and Tourism the name, address, main business profession of the Vietnamese advertising service provider who is authorised by the website owner to provide advertising services. To implement contracts for advertising on the website in Viet Nam, the advertising service provider needs to function as an advertising services business established and operated under Vietnamese laws and is a partner conducting advertising services under a contract signed with the owner of the website. The advertising service provider is responsible for goods or services advertised, supporting, advertising and exploiting advertisements on the website. The advertising service provider also is required to submit a periodical six months report on implementation of advertising to the Provincial Department of Culture, Sports and Tourism. Master plan for outdoor advertising Areas planned for outdoor advertising are required to not be in the transportation safety corridor, dyke or national electricity grid. The areas must not affect the city architecture. Especially, the areas for political or social publicity activities and commercial advertisement must be determined. Provincial People's Committee is responsible for preparing and approving of a master plan for outdoor advertising, amending the master plan and publishing the master plan in the province. Foreign advertising enterprise's representative office in Viet Nam. A foreign advertising enterprise is permitted to establish its representative office in Viet Nam, except if there is proof that such an establishment is harmful to Viet Nam's independence, national sovereignty, security, defence, historical tradition, culture, ethics, habits and customs. The Provincial People's Committee, responsible for the area where the representative's office is located, has authority to grant a licence for the representative's office establishment. The representative office can promote advertising but cannot directly conduct the business of advertising its services. The licence for the establishment of representative office is withdrawn if the representative office provides the advertising services. Additionally, the licence is also withdrawn if the representative office operates for the wrong purpose or in unconformity with the licence, it fails to report on its operations within two consecutive years, fails to operate within six months from the date of the licence or fails to report to a governmental body within six months from the date of receipt of the governmental authority's request. This Decree takes effect on 01 January 2014 and replaces the Government Decree No 24/2003/ND-CP (13 March 2003). Can Tho industrial parks attract $20m Can Tho's industrial parks and export processing zones are expected to attract two new projects. In the past 10 months, they attracted six others with an investment of US$20.5 million, according to the Can Tho City Export Processing and Industrial Zones Authority (CEPIZA). Another 19 investors increased their investment by $20.7 million in the period, it said. The city's IPs and EPZs are home to 208 projects worth a total of $1.85 billion, with $1.67 billion invested by domestic firms. Among the IPs, Tra Noc 1 and 2 have high lease rates. The 135-ha Tra Noc 1 is in fact fully leased out to 122 investors who brought a combined $383.5 million, CEPIZA said. The 157-ha Tra Noc 2 has leased out more than 86 per cent of its space to 58 investors who have invested $575.08 million. The Cuu Long (Mekong) Delta city is building or plans to build six more IPs – Hung Phu 1, 2A, and 2B, Thot Not, O Mon, and Bac O Mon. Hung Phu 1, 2A, and 2B are all located in Cai Rang District, four kilometres from downtown, 12km from the airport, and 11km from the main port. They are also situated near Cai Cui seaport and warehouse, will be equipped with modern equipment and services, and can fully meet investors' electricity, water, and telecom needs. They will prioritise certain sectors like mechanical engineering, electronics, agricultural and seafood processing, pharmaceuticals, cosmetics, transportation, and import-export services. The 600-ha Thot Not IP is situated in Thot Not District, 60km from the city and located near National Highway 91 and the Hau River. It will focus on agricultural and seafood processing and manufacture of agricultural machinery. The 600-ha O Mon and 400-ha Bac O Mon will be built in O Mon District, and the city is looking for developers. But difficulties related to acquiring and clearing land and raising funds are acting as a drag on their development. CEPIZA has asked IP developers to spell out the difficulties they face so that it can resolve them. Banks urged to invest in Delta region development The Cuu Long (Mekong) Delta, which contributes up to 90 per cent of rice exports of Viet Nam, needs better access to bank credit if it is to develop economically and meet its potential, a forum heard yesterday. Although most of the country's food is produced in the delta, living conditions as well as economic growth in the region are still limited. Speakers at the Cuu Long (Mekong) Delta Economic Co-operation Forum agreed that the banking system should invest more in the region. Nguyen Van Diep, chairman of Vinh Long Province's People's Committee, said that several enterprises in Vinh Long had to sell part of their assets to pay debts. Last year, 142 enterprises had to close their businesses, 40 more than in 2011. During the first nine months of this year, 53 enterprises in the province had to suspend operations due to financial problems, he added. As of August, the province has 919 enterprises facing debts of over VND7 trillion. Diep revealed that only 27 per cent of enterprises in the locality could access bank loans. Despite efforts from local governments and banks in the region, only 77 per cent of enterprises' capital demand has been met. This does not bode well for the region's targetted GDP growth of 12 – 13 per cent between 2011 and 2020. It also targets having per capita income of US$3,200 by 2020. With such goals, the delta needs a large infusion of capital, speakers said. During the forum, several investors in agriculture signed loan commitments with banks. The Bank of Agriculture and Rural Development said it would provide capital of VND1.5 trillion ($71.42 million) to the Viet Nam Southern Food Corporation (Vinafood II). The bank also committed to a loan package of VND100 billion to Go Dang Joint Stock Company. As of September 30, Agribank has provided about VND90 trillion ($4.28 billion), contributing 30 per cent of loans in the delta. Banks have released VND301 trillion ($14.33 billion) in the delta as of August, according to the State Bank of Viet Nam. According to Dao Minh Tu, vice governor of the State Bank of Viet Nam, bank loans with preferential rates would help strengthen social welfare. "The State Bank of Viet Nam is steering local banks to gradually reduce the interest rate to support enterprises and stimulate production," he said. "Commercial banks will increase loans for agricultural production to create favourable conditions for farmers." As of October, mobilised funds in Cuu Long (Mekong) Delta provinces totalled VND230 trillion ($10.95 billion), a growth rate of 9 per cent, Tu said, adding that the loans would help promote fishing activities in the delta, and improve social welfare and poverty reduction in the region. According to Tu, by the end of October, the Social Policies Bank had provided a VND20 trillion ($952 million) as loans to residents in the Cuu Long (Mekong) Delta, helping people to improve production. The banking sector will continue to invest in huge projects, including seaports, in the delta. Banks, as of October, had committed capital of VND28 trillion ($1.34 billion) for seven large-scaled projects. During the conference, banks also signed commitments to support delta enterprises with VND31 trillion ($1.47 billion) of capital for rice, fish processing, cattle feed factories and others. "Cuu Long (Mekong) Delta has vast potential so the State Bank of Viet Nam wants to offer help," Tu said. Private firm offers data insight TRG International Co, together with Infor, one of the world's leading providers of enterprise applications, yesterday offered insights to local businesspeople on how to use data to make decisions. The seminar, Business Insights: All You Didn't Know, attracted 50 guests, CFOs and CEOs from various enterprises in HCM City and surrounding areas, such as Bluescope Steel, Nguyen Kim electronics store, Manulife and Behn Meyer Group. Speakers emphasised how important it was to have the right information at the right time to exploit businesses' competitive advantages in sales, finance and production. Pham Hong Thai, deputy general director of TRG Co, a leading global services firm focusing on delivering technical excellence, said: "Common challenges that most businesses face during decision-making include dealing with big data, absence of valuable information, and misleading or equivocal information." According to IT research and advisory firm Gartner, less than a quarter of all companies in the world are believed to have reliable and consistent sources of information. Hence, in terms of decision making, firms with certain applications, like Business Insight from Infor solutions, will be one step ahead of their rivals in gaining a competitive advantage in the market, he said. Ken Loh, director of Performance Management from Infor SEA, said that information was a critical factor in success. Infor BI solutions will help businesses end the daily battle with data. Businesses will also have full trust in the data presented in meaningful ways. Thus, they can make faster and better decisions, especially in situations in which they have to deal with disparate solutions. TRG said it would organise other seminars from now throughout 2014 to help companies improve their business strategies. Central Bank gives nod to historic acquisition In a landmark transaction last week, a credit institution was sold as a corporate entity in Viet Nam with approval from the central bank. The transaction is special as it breaks from the usual path of an entity being acquired or merged by asset transfer. The HCM City Development Joint Stock Commercial Bank (HDBank), a leading private bank in Viet Nam, is now the sole owner of Societe Generade's credit consumer finance subsidiary in Viet Nam, Societe Generade Viet Finance Co Ltd (SGVF). Gide, a premier international law firm, advised Societe Generade on the sale of its wholly owned Vietnamese consumer finance subsidiary. The finance company was one of the first and largest foreign-invested finance companies in Viet Nam, licensed in 2007. This transaction was implemented against the current trend of consolidation and restructuring of the banking sector in Viet Nam, and this opens the way for other transactions to be structured in a similar manner. Conference calls for tighter management of border trade The management of cross-border trade should be separate from import and export divisions to ensure greater efficiencies. The statement was made by Vu Huy Hoang, Minister of Industry and Trade and head of the Border Trade Steering Committee. Hoang was speaking at a conference on border trade in Ha Noi yesterday. District representatives of the border-trade committee said management of border trade was carried out according to general import-export mechanism, which made it harder to take advantage of local potentials and strengths. In addition, the border trade policies of countries sharing a border with Viet Nam frequently changed, making it difficult to maintain smooth operations on the Vietnamese side. Reports quoted at the meeting indicated that problems also come from the substandard quality of facilities at border gates, a lack of storage systems and loading equipment, a substandard traffic system and the fact that many roads were undergoing repairs. In addition, economic zones at border gate areas still lacked investment, meaning that many projects had been left unfinished. The conference heard that the management of border trade had its limitations, and that full potential was still a long way off. Hoang, however, still noted that border trade had witnessed many positive changes in recent years. This had led to expanded markets and more business interest. According to the committee's report, total import-export turnover via border gates from 2008 until September this year reached US$72 billion, an average rise of more than 10 per cent a year. Last year, the figure reached $13.1 billion, an increase of 27 per cent against 2008, and representing 5 per cent of the nation's total import-export turnover. Enhanced relations between Viet Nam and neighbouring countries are expected to help Viet Nam raise trade turnover between Viet Nam and China to $60 billion, between Viet Nam and Laos to $2 billion and between Viet Nam and Cambodia to $5 billion in 2015. Rice exports earn US$2.78 billion in 11 months Vietnam exported 6.29 tonnes of rice for US$2.78 billion in revenue over the past 11 months, equivalent to a 16.1% fall in volume and 18.8% in value. The Ministry of Agriculture and Rural Development (MARD) reports approximately 441,000 tonnes of rice worth US$209 million were shipped abroad last month, valued at. Export rice prices averaged US$439.9 per tonne during the first 10 months of 2013, an increase of US$9 per tonne on last year’s average. China remained the largest importer of Vietnamese rice, purchasing 1.92 million tonnes worth US$800.76 million and contributing 31.1% of Vietnam’s total rice export earnings. The Vietnam Food Association says prices in the major Mekong Delta rice basket hovers around VND5,350–5,750 per kilogram. rice of 5% broken rice ranges from VND8,200 to VND8,300 per kilogram, 15% broken rice is sold for VND7,800–7,900 per kilogram, and 25% broken rice for  VND7,500–7,600 per kilogram. Forum seeks ways to develop safe food production An annual forum was held in Hanoi on November 25 seeking ways to support the development of the domestic food production market, improving product quality and safety and ensuring benefits for farmers. This year’s forum, co-organised by the Ministry of Agriculture and Rural Development (MARD) and the International Support Group (ISG) is themed “Market Development for Safe Agricultural Products”. Speaking at the event, MARD Deputy Minister Nguyen Thi Xuan Thu said that although the safe vegetable trademark and certification has been developed in several localities, this kind of product has not yet been widely consumed. This shows the insufficiency in the production and supply chain, as well as problems with technical standards, she added. Experts said Vietnam is still weak in production management, even though consumers’ demands on the quality of products are not high. There should be better coordination and an improved legal framework to control the safe vegetable production chain. Vietnam can learn from several countries such as Japan, France and Ireland, they said. According to the MARD Deputy Minister, Vietnam has recently developed some safe vegetable management projects with assistance from Denmark, Canada and Japan. However maintaining the projects once they are complete will be difficult due to a lack of finance. Thu called for more international support in building a sustainable safe agricultural production chain. Statistics from MARD’s Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production show that Vietnam is now devoting over 823,000 hectares of land to grow vegetables, which creates an output of 14 million tonnes of products per year, 85 percent of which are for domestic consumption. Despite having a large diversity of vegetables, the area set aside for safe vegetable production in Vietnam is still limited. As of early 2013, there were only 71,728 hectares of land zoned off for safe vegetable production and of these, only 6,800 ha have been certified as meeting safe production standards, including various kinds of GAP (Good Agricultural Practice) standards. FDI firms thrive in Vinh Phuc Most of the foreign-invested enterprises in the northern province of Vinh Phuc are operating more effectively than last year, generating a stable income for local workers. According to the management board of industrial parks in Vinh Phuc, it is managing 114 operational projects, including 77 foreign-invested ones, equivalent to 84 per cent of   the province's total number of investment projects. In the first 10 months of this year, local businesses have recruited some 4,000 new workers, which has helped raise the number of people working at the industrial parks to 49,000. Of these, 44,700 at the foreign-invested firms receive an average monthly salary of VND4 million (US$190). The Republic of Korea (RoK), which has invested in the Daewoo Apparel Viet Nam company, specialising in making garment and textile products, employs some 1,600 workers, most of them female. Foreign-invested firms always exert effort to ensure the rights of their employees are being met by observing legal and safe-production practices and offering high-quality meals to staff. Thanks to its bid to improve equipment and technology, Daewoo Apparel Viet Nam has improved the quality of its products and maintains a monthly average wage of VND3.5 million ($165). Vina Korea Co Ltd is another example. Despite facing stiff competition from its Chinese and Indian partners, the RoK-invested enterprise still holds its position in the market of garment and textile exports. Most foreign-invested businesses in Vinh Phuc are careful to invest in labour safety and the improvement of working conditions for employees. These firms have applied environmentally friendly and modern technologies to reduce their production costs. To help local businesses maintain stable production and attract workers, the province is striving to speed up the construction of social housing and other facilities for them, while continuing to perfect the infrastructure of the industrial zones. Aeon sets out plans to open malls in VN he Aeon Viet Nam Co Ltd, a subsidiary of the leading Japanese retail and financial services corporation Aeon, would open four shopping centres in Viet Nam, two of which  were in HCM City. The first shopping centre Aeon Mall – Tan Phu Celadon in HCM City's Tan Phu District would be opened on January 1 next year. According to Nagahisa Oyama, vice president and chief executive officer of the ASEAN Business at Aeon as quoted by Tuoi Tre (Youth) newspaper, the shopping centre  had an investment of US$100 million, with a total area of 80,000 square metres. Besides made-in-Viet Nam products, the shopping centre would sell goods of Japanese brands such as fashion products, household appliances and interior decorations. The company expected business success in attracting Vietnamese consumers by Japanese quality standards. The second shopping centre was planned to be opened in southern Binh Duong Province in October next year and the third one would be opened in Ha Noi's Long Bien  District in 2015. The Aeon currently had more than 120 shopping malls in Japan and its business operation expanded to 14 countries and territories, including eight Asian countries. Before investing in shopping malls, Aeon explored the Viet Nam market by the operation of the Mini Stop convenient store chain. Tata Power seeks Vietnamese partner Private power firm Tata Power said it is looking for a local partner in Viet Nam for the proposed 1,320 MW project in the Southeast Asian country. "We are looking for a local partner in Viet Nam, we would like to keep 80 per cent of the equity in the project," Tata Power Managing Director Anil Sardana said here. The company has signed an agreement with the Vietnamese government for setting up the thermal power plant in the country. The pact was signed during the meeting of Prime Minister Manmohan Singh and General Secretary of the Communist Party of Viet Nam Nguyen Phu Trong on Wednesday. The project, consisting of two units of 660 MW each. The company bagged the Long Phu 2 power project earlier this year. The thermal power plant, which will be based on imported coal, is likely to be commissioned by 2019-20, Sardana said. The project will be designed, engineered, procured, contracted, constructed, owned, operated and maintained through a BOT company owned by Tata Power and additional  investors, with Tata Power as the lead member and will reach commercial operation in accordance with agreements with the Viet Nam side. Tata Power generates about 8,521 MW of power from energy sources like thermal (coal, gas, oil), hydroelectric, solar, wind and geothermal energy. It has generation capacities in the states of Jharkhand, West Bengal, Gujarat, and Karnataka. Binh Duong continues to lure foreign investment The southern province of Binh Duong in the first 10 months of this year granted investment certificates to 116 new foreign-direct-investment (FDI) projects. At the same time, it permitted 115 others to increase capital, according to the provincial People's Committee. As a result, total FDI capital attracted during the first 10 months reached nearly US$1.2 billion, exceeding the annual target. During the period, nearly 1,480 enterprises registered to be established and 334 enterprises registered to increase their capital. According to the province, tax exemptions and reductions had helped manufacturers and businesses. Industrial manufacturing totalled VND124 trillion ($5.9 billion), increasing over 13 per cent year-on-year. Of the figure, foreign investment sector accounted for nearly 68 per cent. In the first 10 months, the Consumer Price Index was under control compared with early of the year. The committee said that foreign exchange was stable, interest rates had declined, and bad debt was settled in accordance with given schedules. The province said that the investment environment had improved thanks to regular discussion between the provincial leaders and local enterprises. During this period, the province's chairman, Le Thanh Cung, met with nearly 100 local enterprises at the Viet Nam-Singapore Industrial Park (VSIP) and Mapletree Industrial Park to discuss challenges they faced. The most pressing issues were foreigners' income tax payments, macroeconomic policies, prices, invoices and policies for workers, and transportation safety. Accommodation for workers and kindergartens for workers' children were also matters of concerns during the meetings. Enterprises said the demand for accommodation was high, and that the province must develop a plan to offer low-cost housing to local workers. Nguyen Huu Phuong Van, a business representative, said that workers badly needed kindergartens for their children. Chairman Le Thanh Cung said the province would create more advantageous conditions and allocate money in industrial parks to build kindergartens and schools. The VSIP and Mapletree Industrial Park for the first 10 months gave licenses to 21 foreign-invested projects. Forty-one foreign-invested projects registered for total capital increases as well. For the first 10 months, foreign capital totalled $313 million for VSIP and Mapletree Industrial Park. In general, operations of most enterprises were stable. Newly established enterprises as well as enterprises with registered capital increases conducted business promptly.   Revenue and import-export incomes were higher than in 2012. At least 8,000 jobs were created, achieving 133 per cent compared with the set target for the year, increasing the total number of workers in industrial parks to 119,000. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR