BUSINESS IN BRIEF 21/2 Viet Nam bans import of used electronic devices The import of used personal computers and phones has been prohibited as of yesterday, according to Circular 04 issued in January by the Ministry of Industry and Trade. Personal computers include laptops, notebooks, sub-notebooks, mini laptops and personal digital assistants (PDAs). The ban is also applicable on other electronic products such as mobile phones, pocket-sized cassette players, digital cameras and personal watches. Steel pipes face high anti-dumping levies in US market The US Department of Commerce (DOC) on February 19 issued a preliminary decision concluding that Vietnam has dumped steel line pumps used for transporting gas and oil in the US market. The DOC’s decision, which subjects Vietnam’s exports to anti-dumping duties, comes on the heels of complaints lodged by US Steel Corporation, Mverick Tube Corporation and Boomerang Tube against Vietnam and eight other countries and territories. The rate imposed on Vietnam is the highest anti-dumping rate levied on any of the nine nations, which includes the Republic of Korea, India, Turkey, Taiwan (China), Ukraine, the Philippines, Saudi Arabia and Thailand. In accordance with the ruling, a special tax rate of 9.57% will impose on Vietnam’s SeAH Steel VINA company exports to the US. Anti-dumping levies imposed on the RoK – a largest exporter of steel line pumps to the US – will be zero percent and range between 2.65% and 55.29% on other nations. However, the preliminary ruling is subject to review by the US International Trade Commission and it  will issue its final ruling on August 21. Vietnam ranks third among nations exporting steel line pumps to the US with a turnover reaching over US$110 million in 2013, just after the Republic of Korea and India. Work starts on North-South railway bridges A ceremony was held in the central province of Ninh Thuan on February 19 to kick-start the construction of six bridges on the North-South railway route, as part of a project enhancing the safety and efficiency of the rail network connecting Hanoi and Ho Chi Minh City. The Vietnam Railway Project Management Unit (RPMU) and Japan’s Rinkai Construction Company will jointly build the bridges in a construction package worth more than 490 billion VND (23 million USD). A total of 780 million JPY (7.6 million USD) has been sourced from the Japan International Cooperation Agency (JICA) while over 310 billion VND (14.5 million USD) has been granted by the Vietnamese Government. The bridges are expected to be completed in 30 months. The North-South single-track metre gauge line was put into use in 1936 with a total length of 1,726 km. JICA experts have proposed upgrading the current railway system to shorten the travelling time from Hanoi to Ho Chi Minh City from 28 hours to 25 hours 24 minutes by 2020. Meanwhile, Vietnam’s Ministry of Transport has considered building a 1,435mm gauge dual track line that can run at speeds of up to 200km per hour in the future.- Australia supports Vietnam’s economic reforms Australia will provide AUD2.5 million to help Vietnam progress investment reform, rural sector restructuring and competition policy. Australian Foreign Minister Julie Bishop announced the aid package following her February 19 meeting with Minister of Industry and Trade Vu Huy Hoang and Minister of Planning and Investment Bui Quang Vinh in Hanoi. These reforms will help Vietnam meet its commitments under its regional and international trade agreements, and lift the country’s economic competitiveness to boost its regional and global trade, Bishop said. According to Bishop, the success of Vietnam’s current economic restructuring program is essential for the country’s long-term economic growth and macro-economic stability.  A more prosperous, competitive and open Vietnam benefits Australia and the region, creating greater trade and investment opportunities. The package is sourced from the Restructuring for a More Competitive Vietnam initiative that builds on the successes of the Beyond WTO Program.  This program has provided over AUD9 million in Australian support to help Vietnam gain maximum benefit from its accession to the World Trade Organisation in 2007.   Two-way trade between Australia and Vietnam was estimated at AUD7 billion and investment at AUD1.5 billion last year. Vietinbank data warehouse project kicks off ETC, Tech Mahindra and SAP Viet Nam have started a data warehouse project for the Viet Nam Joint Stock Commercial Bank for Industry and Trade (VietinBank) from Monday. The project is the result of an agreement between ETC and Tech Mahindra with VietinBank, signed in September last year. The data warehouse, using technology from SAP Viet Nam, will be implemented in 19 months with a capacity of almost 40 terabytes. The project will also help the bank to enhance the efficiency of its management, inspection and risk administration. It will also provide the foundation for VietinBank to implement other systems, such as anti-money laundering and business intelligence. Kien Giang approves licences for six projects The People's Committee of southern Kien Giang Province awarded licences for six new investment projects, worth VND3.7 trillion (US$176 million) in total, on Phu Quoc Island in the first month of this year. Phu Quoc Island, which covers an area of 4,296 hectares, has to date attracted 190 projects encompassing investments totalling VND105.414 trillion ($4.79 billion). Agribank to increase credit to households, customers The Bank for Agriculture and Rural Development of Viet Nam (Agribank) has directed its branches nationwide to increase credit to households and individuals to help ease their difficulties. The branches have also been instructed to ensure timely capital for a project on agriculture industry restructuring, approved by the Prime Minister. Industrial parks, export zones seek $550m investment capital Industrial parks (IPs) and export processing zones (EPZs) in HCM City hope to attract US$550 million in investment capital this year, an increase of ten per cent compared to last year, according to HCM City Export Processing and Industrial Zones Authority (HEPZA). Enterprises are being encouraged to invest in high technology sectors, supporting industries for high-tech development and mechanics, electronics-informatics, chemical and food-processing sectors, said Nguyen Tan Phuoc, deputy head of HEPZA. More than 408 hectares of land and 67,400 sq.m of factories are in place in Tan Phu Trung, Dong Nam, An Ha, Hiep Phuoc – Phase No.2 IZ and Tan Thuan EPZ, to create favourable conditions for investors, Phuoc said at a conference on the tasks of IPs and EPZs for 2014, held on Tuesday. The Vie-Pan Techno Park project, which is expected to complete in October, will attract a flow of investment from small and medium Japanese enterprises supporting high-tech industry, he said. Last year, enterprises in IPs and EPZs invested a total of US$608.8 million, a year-on-year increase of 47.8 per cent. Of that figure, foreign enterprises invested US$363 million, a year-on-year increase of 74.9 per cent. Japanese enterprises had the largest investment capital, accounting for 45.7 per cent of the total, followed by Singapore (25 per cent), then Australia (13.7 per cent). Domestic enterprises invested a total of US$245.6 million, a year-on-year increase of 20 per cent. Export turnover for enterprises in IPs and EPZs reached US$5.1 billion, a year-on-year increase of 13 per cent. Last year, 78 projects were granted building permits, including 29 new construction projects and 49 factory expansion projects. Seventeen kindergarten projects for the children of workers in IPs and EPZs and 2,200 worker's boarding-house projects in Linh Trung II EPZ, will start construction this year. So far, 12 worker's boarding-houses have been put into operation in eight IPs and EPZs, providing nearly 18,000 lodging-rooms for workers. Other completed social infrastructure projects in IPs and EPZs include, five kindergartens, seven supermarkets and three price-stabilisation stores. Eight IPs and EPZs installed automated sewage-monitoring systems and the remaining IPs will complete the installation by the first quarter this year. To date, more than 270,000 employees are working in IPs and EPZs in HCM City. Support for SMEs increased in Binh Thuan The central province of Binh Thuan plans to step up measures to remove obstacles for small-and medium-sized enterprises (SMEs) in 2014. It will continue to co-operate with these businesses to improve their access to government assistance policies, besides simplifying administrative procedures. Domestic and foreign market forecasts will also be made available to help enterprises map out suitable production and business promotion plans. At present, more than 4,050 businesses are operating in the province, with a total registered capital of almost VND39 trillion (US$1.8 billion), up 34 per cent from the 2010-12 period. Motorcycle Manufacturers Association makes its debut Founding members of the Vietnam Association of Motorcycle Manufacturers (VAMM) met for the first time in Hanoi on February 19. VAMM has five founding members  including Honda Vietnam, Piaggio Vietnam Co, Ltd (PVN), Suzuki Vietnam, SYM Vietnam and Yamaha Motor Vietnam Co, Ltd (YVN). The total sales turnover of these five foreign-invested companies (FDI) made up 96% of last years’ market share. Three major export markets of these companies are India, China and Indonesia. The establishment of VAMM aims to help motorcycle manufacturers in Vietnam to get together and voice their opinions on the orientations for production for healthy competition and common development. Masayuki Igaraghi, Director General of Honda Vietnam, who is also Chairman of VAMA emphasized that the establishment of VAMM is a necessary development step for Vietnamese motorcycle manufacturers, contributing to rapid growth of the motorcycle industry. Vietnam now ranks fourth in the world in the annual output of motorcycles. Last year, these five FDI companies sold.8 million units including 1.87 million units from HVN, 56,300 units from PVN, 50,500 units from SVN and 82,000 units from SYM. Investors still face red tape woes Investors in Vietnam are still facing difficulties caused by burden some administrative procedures, especially for land use, the Prime Minister’s Advisory Council for Administrative Procedure Reform heard at a meeting in Hanoi on February 19. Deputy Minister of Justice Le Thanh Long, who is also vice chairman of the council, said that the implementation of administrative procedures for investment projects is very complicated and time-consuming, thus hindering the development of the national economy. He said that his ministry has coordinated with the council and other agencies in drafting a resolution on some major administrative reforms to improve the business and investment environment. The resolution sets a target of cutting at least 40 percent of the implementation time and minimising the sum investors must spend to cover the procedures, he added. At the meeting, the council members agreed that in 2014, the council will continue to study administrative regulations related to poor household certification, business dissolution, food safety and land use right registration, among others. Vietnam, Switzerland enjoy fruitful trade ties Trade turnover between Vietnam and Switzerland was US$1,039 million in the first 11 months of 2013, up 10.2% from a year earlier, according to the Swiss Customs Administration. In the reviewed period, Vietnam sales to Switzerland were US$695.1 million, up 14.5% year on year. As a result, Vietnam enjoyed a US$351.2 million trade surplus with Switzerland, up 25.25% compared to 2012’s figure. Among Vietnam’s leading exports to Switzerland were machines, electric equipments, and mechanic components. However, gold exports experienced a sharp decline, making up only 0.28% of Vietnam’s total export revenue from the Swiss market. Despite the negative impact caused by the global economic downturn, the two countries’ trade relations gained remarkable achievements, particularly in the field of industry. Switzerland is a demanding market that requires Vietnamese exporters ensure product quality while paying due attention to protecting the environment and preventing child labour abuse. Banks reduce interest rates on deposits Facing difficulties in lending, many commercial banks have reduced their interest rate on dong deposits. The Asia Commercial Bank (ACB), for example, has cut its rate on conventional- term deposit, with annual interest rates now at 6.5 per cent for one- or two-month terms, and 6.6 per cent for three-month term, about 0.4 per cent lower than before. Meanwhile, the annual interest rate for longer-term deposits have been reduced slightly to 7.9 per cent for 12 month-term, 8.2 per cent for 13 month-term, and 8.4 per cent for a 24 month-term. It has also reduced interest rates on other deposit products. For example, the interest rate on its deposit products called "20 month-savings deposit" fell from 7 per cent per year to 6.6 per cent per year. Nguyen Thanh Toai, ACB's deputy general director, told Tuoi Tre newspaper that his bank was facing difficulties in lending due to economic difficulties, forcing it to cut back interest rate on deposits. Depending on the situation, the bank will make adjustments, he added. The Sai Gon Commercial Bank (Sacombank) has also offered a lower interest rate on short-term deposits for the same reason. The annual interest rates for deposits under VND50 million (US$2,366) with one-month and two-month terms are now at 6 per cent and 6.2 per cent, down by 0.5 per cent and 0.4 per cent, respectively. Similarly, the annual interest rate for deposits more than VND50 million with one-month and two-month terms has fallen by 0.3 per cent over the previous time to 6.6 per cent and 6.7 per cent, respectively. According to a Sacombank director, the lending demand in the first few months of the year as usual has been low while deposits from individuals and businesses have increased. In addition, the governor of the State Bank of Viet Nam has said the central bank would continue to tell banks to further cut interest rates on loans to businesses by 1-2 per cent. The bank cut of its deposit interest rate on short-term loans will create a momentum to reduce ending interest rates further, he said. With similar reasons, other banks have also planned to slash their deposit rates. Pham Linh, deputy general director of Orient Commercial Joint Stock Bank, said earlier next month the bank would reduce interest rates on short-term deposits to rates equal or a bit higher than that offered by big banks. Under the current economic climate, enterprises are carefully considering applying for loans, he said. Currently, there remains a gap in deposit interest rates among commercial banks, but it is not a big difference. Besides interest rates, commercial banks have launched programmes like lucky draws to attract depositors. Banks disbursed less than 4 per cent of the VND30 trillion or US$1.43 billion property bailout package, launched by the Government nearly a year ago. This was reported by the State Bank of Viet Nam on Tuesday. As of January 31, banks had committed to finance customers with about VND2.32 trillion or $110.48 million and had disbursed nearly VND1.07 trillion or $50.95 million, an increase of 32.7 per cent over last December. Vietinbank, Vietcombank, BIDV, Agribank and Mekong Housing Bank pledged a combined total of nearly VND802 billion or $38.19 million to individuals and households and lent them about VND534 billion or $25.43 million in total. Vietinbank, Agribank and BIDV funded businesses with over VND1.5 trillion or $71.43 million and lent about VND535 billion or $25.48 million. The banks said the disbursement amounts were increasing despite slow progress, as many loan files were under consideration. Government moves to better hydropower management Prime Minister Nguyen Tan Dung on February 18 issued a Government action plan to respond to the National Assembly’s resolution on intensifying the management of planning, investment, construction, operation and utility of hydro-electric power plants. The plan seeks to make a fundamental change in the State management over hydro-electric power plants, which made up more than 48 percent of the country’s capacity for electricity generation and 44 percent of the national electricity output in 2013. It requires the ministers, the heads of governmental-level and ministerial-level agencies, and the chairmen of the municipal and provincial people’s committees to step up inspections of the implementation of the National Assembly’s resolution. It also asks the developers of hydro-electric power plant projects to report to the Prime Minister before beginning their construction work. In 2013, the Government approved the removal of six potential large and 418 small hydropower projects from the national plan. These plants are deemed to have low effectiveness while likely to cause negative environmental and social impacts. The Government was also unanimous in suspending work on another 136 projects. After the review, the country now has 815 hydropower projects in its national plan, including 268 that are already operational and 205 others under construction. Playing a crucial role in ensuring national energy security and socio-economic development, hydroelectricity power plants are also involved in controlling flooding and droughts, job generation and socio-economic development. Japanese investors keen on HCM City’s industrial parks A number of Japanese businesses have increased their investment and production output in the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza). Representatives of Hepza reported that in 2013, industrial parks (IPs) and export processing zones (EPZs) in Ho Chi Minh City attracted more than 608 million, up 47% from a year earlier. Big investors included Saigon Precision Co. Ltd in Linh Trung IP (US$129 million), Japanese-invested Nidec Tosok Co. Ltd (US$95 million), Nidec Tosok Akiba Co. Ltd (US$10 million) and Juki Co. Ltd (US$12 million) in Tan Thuan EPZ. Investors from Germany (Roeders), Singapore (Marvell) and Japan (Kijima Musen) have also expressed a keen interest in investing in the fields of high technology and high value-added production. Hepza is expected to attract US$550 million in 2014, or an increase of 10% compared to 2013’s yearly plan. Ben Tre, Singapore boost cooperation Singapore can aid the southern province of Ben Tre in human resources training and boost its import of agro-aquatic products and seafood, Singaporean Ambassador to Vietnam Ng Tech Hean revealed at a February 19 working session with provincial leaders. Singapore is willing to train Ben Tre’s skilled professionals at the Hanoi-based Vietnam-Singapore Training Centre and in Singapore , the ambassador promised at the session. Singapore is in need of agro-aquatic products and seafood imported from Ben Tre. One Singaporean business has poured 500,000 USD into purchasing the products and it is hoped to be the first of many. Vo Thanh Hao, Chairman of the Ben Tre provincial People’s Committee, said his province has great potential in farm production and is ready to welcome Singapore ’s agricultural product importers and investors specialising in high technology and green tourism. Praising Ben Tre’s initiative in organising an investment promotion conference that will take place in Singapore this year, the diplomat pledged to actively introduce the locality’s potential and strengths to Singaporean investors at the event. Ben Tre is the 21 st Vietnamese province Hean has visited to learn about investment opportunities since he took over the ambassadorial role.- US group interested in Can Tho thermal power plant The Wolverine Power Group hailing from the US explored the possibility of building a thermal power plant in the Mekong delta city of Can Tho during a working session with city authorities on February 19. Dennis J. Werner, Chairman of the Wolverine Power Group, voiced his intention to work with Can Tho in constructing a 1.200 MW thermal power plant, which is expected to cost around 2 billion USD. The company chairman assured that the plant will use cutting-edge, environmentally friendly technology. Le Hung Dung, Vice Chairman of the municipal People’s Committee told guests that Can Tho is in need of a power plant as it aims to become a power centre for the whole Mekong Delta region. He confirmed his full support for the US group’s plan should it be approved by responsible ministries. Dung raised the fact that a major new power plant is necessary for the delta region to spur its socio-economic development. Werner said he hopes a cooperative deal will be signed soon with the Can Tho People’s Committee. Vietnam-China aim for higher trade growth in 2014 Vietnam and China have agreed to continue to actively cooperate and undertake a variety of measures to achieve double-digit bilateral trade growth in 2014. Vietnamese trade counselor in Beijing Bui Huy Hoang made the statement in response to reporters’ questions regarding prospects for trade cooperation between Vietnam and China in the coming time. “Last year bilateral trade reached US$50.2 billion, up 21.9% from the prior year” Hoang said, adding that, of the figure Vietnam fetched US$13.26 billion from exports to China. China remains Vietnam’s largest trade partner and the fourth largest export partner after the EU, the US and Japan. Hoang said two-way trade turnover is likely to surpass the set target of US$60 billion by 2015. He emphasized that trade promotion activities are very important to boost trade exchange and investment between the two nations. “The annual China-ASEAN fair in Nanning is an important event forthe ASEAN community and for promoting trade between the two countries”, he said. In closing, Hoang affirmed that there will be further exchanges of delegations of businesses from both nations in 2014. Meanwhile, Vietnam Expo 2014- the largest international fair scheduled to take place in Hanoi from April 16-19 and in HCM city from December 3-6 is expected to attract a large number of Chinese and international businesses, Hoang said. Vietnam, Saudi Arabia boost trade links The Ministry of Industry and Trade will dispatch a delegation of 15 entrepreneurs to Saudi Arabia’s Riyadh city from May 24-29 to survey the market aiming to promote trade exchange. The trip as part of the 2014 national trade promotion programme, aims to locate trade partners and introduce the image of Vietnamese products to the Arabian market. The Ministry will also coordinate with Saudi Arabia to organize a business forum in a bid to provide opportunities for businesses to set up new trade links. Last year’s two-way trade between the two countries reached US$1.71 billion, up 14.8 percent over 2012 including US$471.1 million and US$1.2 billion from Vietnamese exports and imports. Australia media highlights Vietnamese seafood Australian Television ABC recently featured a programme accentuating the high-quality of aquaculture breeding farms and aquatic products in Vietnam. In it, Australian experts and importers were quoted as saying that Vietnamese seafood, including shrimp and tra fish, are favoured in Australia and that demand is on the rise. At present, Vietnamese tra fish is the second best seller in the Australian market, just behind Tasmanian Atlantic tuna, the programme reported. The high-quality of Vietnamese aquatic products was attributed to good breeding models and processing chains, contributing to large seafood exporters ranking Vietnam among those providing the best products in Australia. “Vietnamese products have high nutrition and quality, meeting international sanitation requirements”, Norman Grant, Chairman of the Seafood Importers Association of Australia (SIAA), commented. Last year, Australia imported US$160 million worth of Vietnamese seafood and the figure is expected to exceed US$200 million in 2014. Germany- Vietnam’s lucrative export market to EU Germany looks set to remain Vietnam’s biggest European trade partner in 2014 and a potential market for export items such as coffee and pepper. Vietnamese exports to Germany grew by 15.5% last year to a whopping total of US$4.72 billion. Vietnam Customs statistics show that after just two months of trading in 2014, Vietnam’s German exports have already reached US$ 461.9 million. Major products achieving high export earnings include coffee (US$44 million), garments and textiles (US$75.8 million) footwear (US$55.9 million), cases, umbrellas handbags, (US$15.1 million), seafood (US$16.8 million), computers, and electronics (US$ 42.8 million) and mobile handsets and components (US$101.4 million). To further strengthen trade links, Vietnam and Germany have signed a number of agreements on double tax avoidance, investment encouragement and protection and maritime and aviation cooperation, with a view to creating a firm legal foundation for broader economic ties. The move offers favourable conditions for Vietnamese businesses to capitalise on advantages from the German market. Businesses should identify and learn more about consumer habits so as to penetrate potential new markets in what is a very demanding market place. For instance, in terms of wood products, German consumers have a demand for various types of products with large volumes, short life expectancy, good sales service and at competitive prices. Most consumers are fond of products designed in a natural romantic and traditional manner, requiring businesses to fully understand customer taste to produce appropriate products. Based on experiences of businesses doing well in the German market, to boost Germany export, Vietnamese businesses need to comply with conditions and standards set by both the EU and Germany. The EU has common regulations for foreign goods exported to its regional markets but each member market has its own rules. However, strict German laws force businesses to pay due attention to three export standards—quality, hygiene and safety and social responsibility. If Vietnamese businesses are capable of meeting stringent German regulations then penetration into other European markets is within reach. Germany has long been considered an important gateway for Vietnamese goods to enter the EU market. Vietnam is ranked 40th among Germany’s 144 exporting nations.  German experts have forecast that economic growth will continue in the future. Last year Germany imported 53.5 billion Euros worth of goods. As a highly populous nation where people like to go shopping, Germany is perceived as a huge export market for exporters. The Vietnam Association of Seafood Exporters and Producers (VASEP) predicts that Germany’s demand for seafood products, particularly canned Tuna will be on the rise along with Vietnamese fresh  fruits like bananas, mango, orange, grape, apple, peach. Germany represents the largest garment and textile EU importer. Last year Vietnam’s garment exports to Germany reached US$652 million, up 16.74% from the corresponding period of the previous year. Vietnamese garment exports to Germany are predominantly jackets, sweaters and long dresses. High German consumption demand means that Vietnamese businesses must know best how to approach and conquer consumers there. Programme to measure business innovation The Business Studies and Assistance Centre, in collaboration with the DHVP Research & Consultancy, has launched a programme to measure the innovation and competition capacity of domestic businesses. The programme, which is part of the national programme to help enterprises enhance their innovation, has attracted the participation of 24 businesses, including ABC Bakery, An Giang Plant Protection Joint Stock Co., Dien Quang Lamp Joint Stock Co., Bui Van Ngo Industrial and Agriculture Machinery Co. Ltd, Casumina, and Hau Giang Pharmaceutical Joint Stock Co. The measurement is based on 10 dimensions, including output (added value generated from innovation), capital resources served for innovation activities, differentiation (how innovation creates a difference among businesses in the same industry), trend-setting, multi-filtering (the capacity to process information), and others. Tran Tri Dung, an expert at the DHVP Research & Consultancy, said the programme was expected to help enterprises understand their existing innovation capacity, and help them draw out measures to raise their competitiveness in the future. With specific measurement criteria, the programme would also helps to define the position of businesses in the industry and in the market, he said. The programme's results would be published annually in prestigous international journals for business research. Based on the results, the Business Association of High-Quality Vietnamese Goods would nominate outstanding businesses for innovation awards designed by the Ministry of Science and Technology. According to experts, in the context of international integration, enterprises have no other choice than to improve their competitiveness, otherwise they will lose their market. Challenges in investing in sanitation sector It is projected that Vietnam will need to invest about 8.3 billion USD in urban liquid waste collection and treatment from now until 2025, said a senior urban management specialist. Le Duy Hung, head of the research team on "Assessment for urban wastewater management in Vietnam" report published by the World Bank, made the affirmation in an article on the Vietnam Business Forum - the weekly magazine of the Vietnam Chamber of Commerce and Industry on February 20. Two reports announced by the World Bank recently showed that to develop the economy sustainably, improve public health and reduce environmental impact, East Asian cities need to address the existing problems in sanitation. They should have necessary funds to develop infrastructure and ensure sustainable service delivery to meet the needs of urban residents. According to forecasts, in the next 15 years, countries in the region need to invest at least 250 USD per person per year. "Assessment for Urban Sanitation in East Asia - Pacific: The necessary action" is a report of in-depth research on urban sanitation problems in three countries in the East Asia - Pacific region, namely Indonesia, the Philippines and Vietnam. The report studied the factors that hinder the development of urban environmental sanitation and proposed measures to those countries and other countries in the region to expand and improve urban sanitation services in a comprehensive and sustainable way. "Worldwide, there are about 2.5 billion people living in poor sanitary conditions, in which 660 million people (over 25 percent) live in the East Asia-Pacific region," said Charles Feinstein, Director of Energy and Water Board of the World Bank. "Poor sanitation causes serious effects on the lives of people, environment and economy. But the good news is that investment in environmental hygiene brings high profits." The "Assessment for urban wastewater management in Vietnam" report focuses on the challenges that Vietnam is facing due to environmental contamination caused by fast urbanisation process. It assesses the performance of wastewater treatment works in Vietnam and proposes recommendations to policy makers in central and local governments, and service providers. "In the last 20 years, the Government of Vietnam has made progress in the work of urban waste water treatment, and in recent years has invested about 250 million USD per year in this area," said Hung. "However, to meet the rapid urbanisation process remains a challenge in this field. It is estimated that from now until 2025, Vietnam needs to invest about 8.3 billion USD on collection and treatment of urban waste water." Poor sanitary conditions caused serious impact on public health in the countries in the region, including chronic diseases caused by diarrhea and the risk of infectious diseases such as cholera. Poor sanitary condition also causes environmental pollution. The urbanisation process is rapid in East Asia, in which cities in the region are the leading economic engines. However, each year, poor sanitation costs Vietnam, the Philippines and Indonesia 1.3 percent, 1.5 percent and 2.3 percent of the GDP, respectively. In order to develop healthy, clean and prosperous cities, Vietnam should develop policies on people, including the integration of sanitation solutions into the city's development plan to eliminate waterborne diseases and improve environmental conditions; design and implement communication strategy to inform the public about the benefits of keeping sanitation as these are important factors for change in this area. In addition, it is necessary to promote technical solutions, such as prioritise the collection and treatment of wastewater and sludge because they are pathogens. Analysis shows that such an approach is necessary because most people in urban areas have access to toilet but no human waste is collected and disposed appropriately. In addition, we need to implement environmental policy in a smart way to ensure that the instability caused by floods and climate change is included in the wastewater management plan, and use the products that are environmental-friendly such as biosolids which can be reused as fuel or for agricultural purposes. In particular, according to the reports, those countries need to develop sustainable institutions to ensure quality of service, which must ensure sufficient institutional capacity to develop and implement plans to protect the environment city, including concerns of the poor, integrated with urban water management by combining water and wastewater business because these are two areas related to each other and support the development of management mechanisms at the local level to ensure service quality. At the same time, they need to build feasible financial plans to ensure public resources for investment capital, and develop spending policy framework priorities in investment. Public spending must be included in the financial plan of the central and local governments. They also need to maximise the use of the public contributions to meet operational costs for phasing out the dependence on subsidies to ensure that urban residents have access to financial services. Vietnam remains attractive to foreign investors Vietnam attracted nearly 400 million USD in foreign direct investment (FDI) in January. Although this was only 78.1 percent of that in the same period last year, some projects last month were large, and this underlined the country’s continued attractiveness to investors. Insight by the Vietnam Economic News on February 20. According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, in the month Vietnam attracted an additional 40 FDI projects with total registered capital of 211.04 million USD, 47.6 percent of that in January 2013, while six FDI projects increased their registered capital by a total of 186.11 million USD, up 183.9 percent from the same period the previous year. In other words, in January this year, Vietnam attracted an additional 397.15 USD million in FDI, which was 78.1 percent of that in the same month last year. FDI projects attracted last month were found in nine fields, with the processing industry becoming the top FDI attractor with 189.04 million USD in newly registered and increased capital, accounting for 47.6 percent of all FDI capital attracted in the month. The industry was followed by the real estate sector with 176.33 million USD (44.4 percent) and transportation and forwarding with 17.05 USD (almost 4.3 percent). Singapore ranked first among 19 countries and territories investing in Vietnam in January 2014 with 132.65 million USD in registered capital, accounting for 33.4 percent of all FDI capital attracted in the month, while the Republic of Korea (RoK) ranked second with 88.8 million USD (22.36 percent), and Hong Kong ranked third with 44 million USD (11.08 percent). The Singaporean-owned VSIP Hai Phong Co., Ltd increased its investment capital by 122.303 million USD, while the Midea Consumer Electric Vietnam Co., Ltd in Binh Duong province increased its capital by 40 million USD, and the Lotte Vung Tau trade center project was registered by a Korean investor to build, manage and operate a modern trade center. Talking to the Vietnam Economic News earlier this year, Minister of Planning and Investment Bui Quang Vinh said that the Vietnamese investment environment is improved with Vietnam’s political stability, social safety, macroeconomic stability, favorable geographical location in the heart of Southeast Asia, plentiful human resources, low labour cost and big market with an increasing purchasing power and income which is connected to the 600-million people market of ASEAN, China, Japan and the RoK. The process of international economic integration of Vietnam is taking place on a deep and wide basis, according to Minister Vinh, as Vietnam is a member of the World Trade Organization (WTO), ASEAN, the Asia-Europe Meeting (ASEM) and the Asia-Pacific Economic Cooperation Forum (APEC), and has diplomatic relations with over 180 countries and territories around the world. Vietnam is negotiating to join the Trans-Pacific Partnership Agreement (TPP) and a number of important free trade agreements (FTAs) with the EU and the RoK. The Government and various industries always attach much importance to the FDI sector, while investment institutions and policies are gradually improved. All these factors help build up foreign investor trust and facilitate foreign investment in Vietnam, Vinh said.- Fruit, vegetable exports expected to surge Fruit and vegetable exports are expected to enjoy an export turnover growth of 20-30 percent by the end of 2014, according to the Ministry of Agriculture and Rural Development. Last year, Vietnam raked in around 1.04 billion USD from shipping such products overseas, a year-on-year increase of 25 percent, statistics from the Vietnam Fruit and Vegetable Association have shown. China was Vietnam’s biggest importer, accounting for 27.6 percent of the local market share. It was followed by Japan with 5.59 percent and the US with 4.7 percent. Vietnam’s fruit and vegetables are now present in 40 markets around the world. Their export has risen steadily over the past few years, ranging from 628 million USD in 2011 to 829 million USD in 2012, before surpassing the billion dollar mark in 2013. Best sellers include dragon fruit, grapefruit and frozen and canned vegetable. Quang Nam industrial park eyes Korean investors The central province of Quang Nam is aiming to attract more investors from the Republic of Korea (RoK), asking the Government to make the Vietnam-RoK Chu Lai Industrial Park an official part of strategic co-operation between the two countries. Insight by the Vietnam Investment Review. In a document recently sent to Deputy Prime Minister Nguyen Xuan Phuc, Chairman of the Quang Nam provincial People’s Committee Le Phuoc Thanh said the proposal would help put the industrial park (IP) on the radar of large RoK companies looking for investment locations in Vietnam. “The establishment of a RoK-centred IP and township to which the province can attract industrial manufacturing and processing projects, support industries, infrastructure and tourism projects from RoK is completely suitable with global investment trends and the development plan of the Chu Lai Economic Zone,” said Thanh. In 2012, the committee first drew up plans for a Vietnam-RoK Chu Lai IP within the existing Chu Lai Economic Zone. The province signed an agreement with RoK developer C&N Vina to develop a 1,600-hectare project comprising 700 hectares for an IP, 350 hectares for a township and 550 hectares for tourism. While much of the plan remains on paper, in April 2013 the developer obtained an investment certificate to develop the 200-hectare Tam Anh IP within the proposed Vietnam-RoK Chu Lai IP, at a cost of 25 million USD. According to the province’s documents, 10 foreign investors have agreed to set up projects in Tam Anh. “The project is small in scale,” said Thanh, implying that it is difficult to attract big foreign investors to the park. The proposal by Quang Nam shows that this province is trying to improve its investment climate in the fields of industrial manufacturing and processing, especially from RoK companies. According to statistics from the Ministry of Planning and Investment’s Foreign Investment Agency, RoK is the third largest source of foreign direct investment to Vietnam in terms of committed capital, following Japan and Singapore. But in terms of project numbers, RoK ranked top with 3,546 projects as of the end of 2013, proving that Vietnam is a popular destination for RoK companies. The committee's proposal also indicates that the province does not want to be left behind its neighbouring Quang Ngai province in the race to lure new foreign direct investment. Though Chu Lai was the first economic zone in Vietnam, Quang Ngai province’s Dung Quat Economic Zone is by far the busiest in the country. This economic zone is now home to an oil refinery, a manufacturing complex of RoK’s Doosan Heavy Industries, and an IP and township complex of VSIP – the country’s leading industrial park developer. In addition, Japan’s JFE Steel is planning to build a 4.5 billion USD steel manufacturing complex there, Singapore’s Sembcorp Industries is studying to build a 2 billion USD thermal power plant and US’ ExxonMobil in association with State-run PetroVietnam is studying the feasibility of a gas treatment and thermal power complex. Meanwhile, the biggest project in the Chu Lai Economic Zone is the auto assembling complex of Vietnam’s Truong Hai Auto Corporation. Foreign investors have mostly overlooked Chu Lai for large scale projects. “In this period, we need some big projects to make Chu Lai a dynamic and effective economic zone,” said Thanh.- Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR