BUSINESS IN BRIEF 27/11 Mavin targets meat processing industry The newly-established Aussie-invested meat processing firm Mavin sets a target to become one of the three leading processors in Vietnam in 2015 and plans to export meat products to Japan, Singapore and South Korea in 2016. David John Whitehead, board chairman of Austfeed Vietnam, the parent company of Mavin, unveiled the ambition in a function in Ha Nam Province last week for customers to experience its food. Mavin Food Joint Venture Company established with total investment of US$15 million has been put into operation since September at Dong Van II Industrial Park in the northern province. The entire production line of the factory was imported from Germany with a capacity of more than 10,000 tons of products per year. Currently, Mavin is producing more than 60 kinds of products. Many premium products have a place in luxury hotels such as InterContinental, Crowne Plaza West Hanoi, Sheraton Hanoi, Muong Thanh Hotel Corporation and in restaurant chains including Japas and Papa Joe Hanoi. Besides, its products have also appeared in supermarkets with competitive prices compared to other major brands. Whitehead said Mavin’s products come up far later than those of big names like Duc Viet or Vissan, but such items have high competitiveness thanks to a closed production process and traceable input materials. Within the closed chain production, Austfeed Vietnam provides breeding and animal feeds, while its member company Cai Lay Veterinary Pharmaceutical Joint Stock Company (Mekovet) supplies veterinary medicine to generate inputs for Mavin. Rice exports earn $2.5b, prices fall Viet Nam exported 5.55 million tons of rice worth US$2.56 billion in the first 11 months of 2014, according to the Viet Nam Food Association (VFA). News website ndh.vn quoted the VFA as saying that in the first 20 days of November, the nation shipped 190,000 tons of rice, and from the first day of this year until November 20, it exported 5.55 million tons of rice worth $2.56 billion. The average export price in the first 20 days of this month stood at $474.5 per tonne, which was lower than the $486.6-per-tonne price in the same period last October. At the domestic rice market, the VFA reported that rice prices dropped sharply from November 14 to 20, by VND300 to VND450 per kilo to VND8,450 per kilo for rice with five-per cent broken grains, VND8,100 for rice with 15-per cent broken grains, and VND7,700 for rice with 25-per cent broken grains. This year, Viet Nam expects to export 6.5 to seven million tons of rice, worth about $3 billion, revealed the VFA. Traditional export markets for Vietnamese rice include Singapore, mainland China, Hong Kong and Cote d'Ivoire, as well as Algeria and Indonesia. The VFA has also predicted 2015 to be a tough year for Viet Nam's rice exporters in the face of fierce competition from their Thai rivals because Thailand has concentrated on recovering traditional rice markets in Africa and expanding its markets in Asia, especially the Philippines, Indonesia and China. HCM City real estate transactions increase Numerous property projects have recently changed hands in this southern city, although the transactions were not widely publicised. Sources of Dau tu Bat dong san (Property Investment) online revealed that the Novaland Group had acquired land at No 39 Ben Van Don, a favourable position in District 4, from Quoc Cuong Gia Lai Company. Novaland will build an apartment, trade and office complex here and name the project as ‘The Tresor'. Late last week, Quoc Cuong Gia Lai chairwoman Nguyen Thi Nhu Loan told the website that there were chances that Phu My Hung Company would join hands with her company to develop a 93ha Phuoc Kieng Nha Be residential area in the city. Phu My Hung is assisting her company with infrastructure construction consultancy and may contribute 51 per cent in investment capital to implement the project. Sources also revealed that the Hung Thinh Group has recently used more than VND600 billion (US$28.57 million) to buy a project in Tan Binh District while investing in a residential park in conjunction with the Binh Trieu Construction and Engineering JSC. Dat Xanh Group announced that it has acquired a 7.5ha property project in District 9 after purchasing the ‘Water Garden' project in Thu Duc District from the Pacific Property and Infrastructure Development JSC. Dat Xanh chairman Luong Tri Thin said his company had acquired four projects this year and would seek more acquisitions over the next few months to serve its development strategy for the next five years. The Him Lam Group is also said to have spent VND1.05 trillion ($50 million) on the acquisition of a project in Thu Duc District from Hoang Anh Gia Lai Company and a project in District 2 from an unnamed investor. Nguyen Van Duc, deputy director of the Dat Lanh Real Estate Company, said developers with the financial capacity to buy inactive projects had helped prop up a sluggish property market. "We ourselves were struggling once while carrying out the 8x Thai An project in District 12 and not being able to sell apartments there, but sales have improved with the co-operation of Hung Thinh," Duc said, adding that the ongoing acquisitions were positive moves that would benefit buyers and sellers. Hung Thinh Group chairman Nguyen Dinh Trung said: "The more busy property projects change hands, the more stable the market and the economy will be." "These activities can be translated as the redistribution of projects from weak and unprofessional companies to stronger and more professional companies and will help reduce increasing inventories in the market," Trung noted. He added that he had worked with numerous State-run enterprises that wanted to divest from property projects in the last few months. Officials' response key to tax reform success It will be difficult to reduce the time required for tax payment to 171 hours annually by 2015, if tax officials don't work towards resolving the difficulties faced by businesses. Huong Vu, deputy general director of tax and advisory services at EY Viet Nam, said this at the Tax Symposium 2014, held in Ha Noi yesterday. "There are several requirements for submitting invoice declarations, despite the Prime Minister's and the ministries' efforts to reform administrative procedures," Huong said. Studies by EY show that enterprises have to spend some time to report their use of invoices, even though authorities have cut a range of administrative procedures. There is no difference in meaning among several words in invoices, but they cause confusion, and are hurdles for companies towards reducing the time spent on tax payment. For example, the columns entitled "cancelled" and "deleted" in invoices have caused confusion. If the firms fill in the wrong information, the entries have to be rewritten and the companies are fined. In addition, companies have to issue invoices when transferring ownership. However, it forces large firms that send several shipments of goods daily to prepare several invoices. "The regulation is not suitable and has taken a lot of time of businesses," Vu said, suggesting that bills should be issued weekly or monthly, instead of for each shipment. She affirmed that the biggest challenge for reducing tax administrative procedures, stipulated in 119/2014/TT-BTC ("Circular 119"), was to provide amendments and guidance to simplify certain tax administrative procedures in line with the spirit of being humane or specifically for tax officials who ask for several documents. For example, the demand for extra documents can be seen in the case of personal income tax exemption for specialists in ODA projects. The current regulations do not require tax payers to declare the amount of tax to be paid, if they are not benefiting from tax exemption. However, some tax officers have insisted on the declaration being submitted. This year has seen significant changes in tax administration and new guiding rules for laws impacting every aspect of taxation in businesses. The Tax Symposium 2014, co-organised by EY Viet Nam and CFO Viet Nam, reviewed the tax changes as well as practical experience in tax payment, audit and inspection, besides the disputes enterprises have faced in recent years. Motor Show sets sales record More than 560 sales contracts were signed during the five-day Vietnam Motor Show 2014 (VMS) here last week, double the number of the 2013 show, according to the event's organising board. The figure, a record in comparison with that of the previous years, is seen as a good sign of the recovery being made by the domestic automobile industry. Most of the contracts fell into the hands of the producers and distributors of luxury and high-value models, such as the Mercedes S500 Coupe, Audi A3 Sportback and Audi A7 Sportback, besides the Lexus GX460, BMW 428i Gran Coupe and MINI Cabriolet Cooper. Companies that assemble the models locally and the official distributors of 18 brands of vehicles participated in the show, the country's biggest automobile event, which also attracted nearly 162,000 visitors. The exhibition showcased the latest auto models, spare parts and accessories and interior materials, as well as insurance, finance and banking in hundreds of pavilions, providing a whole range of experiences to car owners in Viet Nam. Japanese companies open plants Keiden Viet Nam Ltd Company inaugurated its US$3.7-billion plant in My Phuoc 3 Industrial Park in southern Binh Duong Province last November 24. The plant specialises in mechanical processing and tin coatings using modern technology to ensure environmental safety. The company is expected to provide quality products for metal processing companies in domestic and international markets. Last November 20, Tomoku Viet Nam Ltd Company of Japan likewise opened its $47.6-million paper packaging plant at the same industrial park as that of Keiden's plant. Spread over a 6ha area, Tomoku's plant is the first of its kind outside Japan and is designed to produce 60 million sq m of paper packaging every year. The plant will begin operations by early January 2015. Tran Thanh Liem, vice president of the Binh Duong People's Committee, lauded Japanese investors' interest, saying the manufacturing sector fitted the province's policies to attract investors in support industries. Binh Duong has attracted Japanese investments in 225 projects worth $4.693 billion. Experts advise domestic firms to balance portfolios Vietnamese enterprises' investments have failed due to improper goal-setting, short-term planning and an imbalanced portfolio mix, the chief financial officer of Bao Viet Holdings said at a forum held in HCM City yesterday. Speaking at the 6th Viet Nam CFO Forum 2014 held yesterday in HCM City, Le Hai Phong said that domestic companies had not hired the right advisors or established self-monitoring systems, and that without precise goals, companies would face difficulties in planning and choosing the right investments. "Portfolio balance should be reviewed in a timely manner by taking into account financial positions and risk factors," he said. "An improper portfolio mix can lead to huge losses of money or lower profits than what the company should have achieved." In addition, a lack of a system to assess risks was a serious problem, and companies needed a warning system, he said. More information should be collected about potential investment instruments, so that risks could be identified. Advisers to the company must be qualified and experienced in the local market as well, he added. The forum on "Building Success From Failure" was organised by the Viet Nam Chief Financial Officers (VCFO) in co-operation with Japan Association for CFOs (JACFO) and the Association of Chartered Certified Accountants UK (ACCA). Speakers said the role of the chief financial officer (CFO) had gone beyond the traditional position related to capital. Speaking at the forum, Robin Page, CEO of Treasury Management International, said today's disruptive market and regulatory environment required financial departments to become a useful strategic partner. As staff and budget are limited, technology is now considered the most effective enabler, according to the CEO. For example, automating operational workflow increases efficiency in treasury and provides the treasurer with time for more strategic tasks. Gathering all financial information in a single technology platform provides visibility of cash and risk across subsidiaries, banks and currencies. Moreover, analysing and reporting financial information in real time increases the value treasury contribute to business success. Prospects of a stronger economy were expected at the beginning of this year, but the majority of Vietnam enterprises are still facing difficult times, suffering heavy losses and facing the prospect of going out of business, according to speakers at the forum. Nguyen Xuan Thanh, director of the Fulbright Economics Teaching Programme, gave an overview of the economic outlook for 2015 in Asia and Viet Nam. He said Viet Nam had followed China in rapid credit and investment growth but had lower efficiency and growth (but less pollution). "The economic growth of emerging economies including Viet Nam is heavily reliant on FDI capital," he added. Only the FDI sector was continuing to do well because they are labour-intensive and largely not affected by economic difficulties facing the Vietnamese economy or the weaknesses of Vietnamese institutions. This year, the Vietnamese Government would issue both fiscal and monetary policies to maintain growth at 6 per cent or more for 2015. The economy had been developing under its potential, and should have reached a growth rate of 7 per cent, speakers said. The Government plans to continue to promulgate new ministerial circulars to improve financial prudential regulation. "SOE equitisation is the main policy thrust," he said, adding that next year major international trade deals such as TPP and VN-EU agreements would also be concluded. The forum saw the participation of more than 300 delegates, including Chief Financial Officers, Senior Financial Analysts, experts from domestic and international financial institutions, and chairman and CEOs of some of the largest enterprises in Viet Nam. VN needs more innovation: experts Viet Nam needs to rely more on innovation-driven productivity, which requires considerable improvement in its domestic innovativeness, to boost its economy. Gang Zhang, senior economist of the Organisation of Economic Co-operation and Development (OECD), stressed this point at the launching ceremony here for the OECD's joint study with the World Bank yesterday. The report, entitled The OECD-World Bank Review of Science, Technology and Innovation in Viet Nam, looks at the key elements, relationships and dynamics that drive the Vietnamese innovation system and opportunities to enhance it through government policy. Zhang explained that Viet Nam was approaching the crossroads of its development, and previous sources of growth are diminishing in power, raising the threat of a middle-income trap. "Current science, technology and innovation (STI) capabilities are weak, and much needs to be done to improve them," he noted. "Research and development (R&D) is still a peripheral activity, both in the business and the public sector." According to the report, Viet Nam has a wide range of weaknesses, including low levels of productivity and income, inadequate framework conditions and disincentives for innovation, and weak public sector research performance. The country has also faced threats such as unfavourable macroeconomic developments, a growth slowdown and increasing brain drain. The study also shows that Viet Nam's business sector still accounts for a very small share of R&D expenditure. It says that for a broad range of enterprises, improving in-house innovation capabilities, which require skills to engage in design, engineering and marketing, as well as information technology and R&D, should be an overarching priority. The joint review provides several recommendations for policy makers to foster STI in Viet Nam. It emphasises on improving framework conditions for innovation and public governance of the innovation system, strengthening the human resources base for innovation, fostering in the business sector, increasing the contribution of public research and fostering innovation linkages. At the launching, Victoria Kwakwa, World Bank country director for Viet Nam, said: "Increased competition in globalising markets means that it is more important than ever to invest early in advanced technological capabilities. This will help Vietnamese enterprises to better position themselves in global value chains." Dao Manh Thang, deputy director of the National Agency for Science and Technology Information under the Ministry of Science and Technology, revealed that in the future, his agency would implement a pilot programme to assess a few scientific and technological organisations and build a science and technology map. "The map will include an innovation process in the business sector to help enterprises recognise where they are in the world. It provides companies with statistics on patents for inventions, new technologies, and so on, to boost technology transfer in the country," Thang said. Delta's floating-rice yields rich dividends The rotating cultivation of floating-rice and cash crops on rice fields during the flood season in the Cuu Long (Mekong) Delta has brought high profits to local farmers. The tops of floating-rice varieties, which are planted in the flooding season and mature within six months, "float" above the water as they grow 10-15 cm a day. Speaking at a seminar held in An Giang Province last Tuesday, Dang Thi Thanh Quynh of An Giang University's Rural Development and Research Centre, said rotating the cultivation of floating-rice and cash crops on rice fields yielded higher profits than planting of two to three rice crops a year. "This profit does not even include extra income that farmers get from catching fish and other aquatic species in floating-rice fields, as the fields attract more fish in the flood season," she said. Floating-rice varieties have a low yield of 2-2.5 tonnes per ha, but the rice is sold at a price about three times higher than short-term rice varieties (which mature in three months). Traders buy floating-rice directly at fields for VND10,000-12,000 a kilo. The rice, which is known for its delicious flavour, is in high demand because it is free of pesticides and fertilisers. Production costs for growing floating-rice are low, as farmers sow the rice once in either May or June (on the lunar calendar) before the flood season and do not need to fertilise or tend the rice until harvest. The rice grows as the floodwaters increase, and after the water recedes, floating- rice feeds on soil. After harvesting the rice, farmers can grow crash crops like oriental onions, red chilli and cassava on the rice fields, which are fertile with silt brought from floodwaters. On 1,000sq.m of floating-rice fields, farmers can earn an average profit of VND24.3 million (US$1,100) from growing oriental onion, VND16.5 million ($760) from growing red chilli and VND3.1 million ($150) from growing cassava. Nguyen Van Nao, who grows floating-rice and cassava on 4ha in Tri Ton District's Vinh Phuoc Commune in An Giang Province, said he earned a profit of VND55 million ($2,600) per hectare last year. In contrast, farmers who grew three rice crops a year in An Giang said they earned a profit of VND40-45 million (US$1,900-2,100) per hectare last year. Le Cong Quyen of the An Giang University's Agriculture and Natural Resources Faculty said floating-rice fields contained up to 49 flora and 35 fish species. "Some fish species that have high value like black shark minnow, featherback and freshwater toadfish are also found in floating-rice fields," he said. In the Delta, floating-rice is grown on nearly 100ha and 20ha in An Giang and Dong Thap provinces, respectively. The two provinces have the highest level of floodwaters in the south. In An Giang, floating-rice is grown mostly in Tri Ton District's Vinh Phuoc and Luong An Tra communes. Floating-rice varieties in Tri Ton include Bong Sen, Chet Cut, Nang Tay Nut, Nang Pha, Lai Duoi. Ly Van Chinh, head of the Tri Ton Agriculture and Rural Development Bureau, said the district planned to increase the area for rotating floating-rice and cash crops to 200ha in 2015-16 and to 500ha in 2030. Nguyen Van Kien, director of the An Giang University's Rural Development and Research Centre, said the restoration of floating-rice cultivation was important to preserve the genes of floating-rice varieties. Floating-rice paddies create space for storing flood water, which limits breakage of dykes and creates living places for fish and other aquatic species. Kien said his centre would restore floating-rice varieties by purifying their seeds as they are now mixed with other rice varieties. An Giang's Chau Phu District is planning to revive a part of its previous floating-rice area. Before 1975, the delta's floating-rice area was about 500,000ha. Of the figure, An Giang accounted for more than 50 per cent. Because of national food security, the delta at that time increased cultivation of short-term rice varieties, which reduced the area of floating-rice dramatically. Last year, the Rural Development and Research Centre offered farmers in Tri Ton support to develop floating-rice cultivation. Twenty-one households were provided with techniques and financial support to set up co-operative teams to grow floating-rice. The cultivation area of floating-rice in Tri Ton increased from 43 ha last year to 92 ha this year. The 92 ha will be harvested by the end of lunar November (about mid-January 2015). Japanese-owned steel plant begins production in Binh Duong The Japanese fully-invested Daiyu Steel Limited Co. opened a new steel factory in Di An town, the southern province of Binh Duong, on November 25. The factory, located on a 13,000m2 land plot in the Tan Dong Hiep industrial zone, has a total investment of 10 million USD. It has a monthly production capacity of 1,350 tones of products. Hiroyuki Inoue, the company’s General Director, said investing in Binh Duong is a sound decision given the locality’s fast industrialisation and urbanisation. This year, Japanese investors have pumped more money into the province than in other countries and territories. Accordingly, Japan is currently the largest investor in Binh Duong, having 225 projects with a total investment capital of nearly 4.7 billion USD. Binh Duong, together with the southern province of Dong Nai and Ho Chi Minh City, are amongst the most attractive FDI destinations in Vietnam. In the past 11 months, it ranked third in terms of disbursed foreign direct investment with 1.42 billion USD after northern Thai Nguyen province and Ho Chi Minh City. Italy seeks stronger cooperation with southern localities Italy will provide Vietnam with 15 million EUR in soft loans to help increase the competitiveness of small and medium-sized enterprises (SOEs) in southern localities, an official from the Italian Embassy in Vietnam said on November 25. The Director of the Development Cooperation Agency under the Italian Embassy, Ricardo Mattei, announced the plan at his working session with Chairman of the People’s Committee of Binh Duong province Le Thanh Cung. The Italian official suggested that Binh Duong work as the coordinator for the support project, which will provide training for SOE staff and establish technical support centres for SOEs operating in wood and furniture, leather and footwear, farm produce process and mechanical engineering. Chairman Cung said the project perfectly matches the policy of the Vietnamese Government and Binh Duong authorities as well as the wish of the local business community. The same day, an Italian diplomatic and business delegation led by Deputy Minister of Foreign Affairs and International Cooperation Benedetto della Vedova, were given a welcome in Ho Chi Minh City. Vice Chairman of the municipal People’s Committee Le Thanh Liem said the city wishes to intensify cooperation with Italy in its advantageous fields like industry, manufacturing, goods production, health, culture and education. He expressed hope that a Vietnam-Italy business forum scheduled for November 26 will provide Italian enterprises an overview of the city’s socio-economic picture, thus helping open up more collaboration opportunities for both sides in the future. Vedova, in turn, said the recent opening of the Italian consulate in Vietnam’s largest economic hub is a sound decision of Italy to facilitate investments of its businesses in Vietnam and in Ho Chi Minh City as well. According to the deputy minister, Italy also wants to increase cooperation with Vietnam in investment and science and technology besides trade ties. Vietnam, Azerbaijan boost energy cooperation A Vietnam-Azerbaijan energy workshop was held in Hanoi on November 25 to promote connection between the two countries in the field. The event was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Azerbaijani Embassy in Hanoi . VCCI Secretary General Pham Thi Thu Hang said that the workshop offers a good chance for Vietnamese businesses to access Azerbaijan ’s advanced technologies, expand partnerships and seek new energy sources. According to Azerbaijani Ambassador to Vietnam Anar Imanov, Azerbaijan is willing to cooperate with and assist Vietnam in developing its energy industry. It is high time for the two countries to set up new partnerships, speed up existing projects and discuss new ones, he said, calling upon businesses to catch this opportunity to join hands in developing the energy industry. Deputy General Director of the Vietnam National Oil and Gas Group Nguyen Vu Truong Son said that Vietnam is waiting for Azerbaijan ’s collaboration in oil and gas exploration and exploitation, and Azerbaijani investment will help develop energy projects in Vietnam . According to VCCI, two-way trade between the two countries exceeded 325 million USD in 2013, a tenfold increase compared to the previous year. Vietnam mostly shipped mobile phones and spare parts, aquatic products, and grains to Azerbaijan while importing crude oil and gasoline from this market. Vietnam seeks ways to help GI registered products Vietnam has realised that the use or reference of names or marks of product origin (Geographical Indication, GI) is vital to increasing economic value and competitiveness of products, said the Communist Party of Vietnam Online Newspaper. Geographical Indication (GI) is an Intellectual Property. Geographical Indications are names or marks used with products that link them to their origins and the intellects of their long pasts. It is also considerd as an effective marketing tool to increase the competitiveness of products, acting as a measure against unfair competition in the market, added the newspaper. However, some producers complained that buyers or importers have paid no difference for products with GI or without GI. M any local producers are wondering if they should register GI or not for their products. Vietnam has many high quality products which are very famous for their origins such as anise from Northern province of Lang Son or Trung Khanh chestnut from Cao Bang province. These GI-registered products were told that their sale volumes had not been increased Luc Ngan and Thanh Ha litchis are undergoing the same experience with the above mentioned products. The fruits have been granted GI but farmers are still worried about sales when the litchi season comes. Dao Duc Huan, Deputy Director of the Rural Development Centre (RUDEC) under the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), said that farmers with small-scale production have relied on the distribution system. If the distribution system didn’t label GI on the products, it would be sold in market like other products without GI. To use GI effectively, it needs a good management system, especially management of quality and point of origin. Huan said Vietnam now has 39 GI registered products, 36 of which are agricultural and food products. The use of GI in the market is very modest. Only few products start to use GI in the market such as Phu Quoc fish sauce, added Huan. To improve the role of GI in the market, localities should promote their products with quality assurance. Once the product has gained both quality and prestige, its price will be higher and producers will get economic profits. Moreover, to ensure quality for products granted GI, localities have to manage and maintain the good quality of products and not focus on increasing quantity. Some GI registered fruits need to be preserved as heritage, maintaining the traditional value rather than economic profits. Yen Tu yellow apricot blossom is an example. The blossom needs to be preserved as a cultural legacy of Quang Ninh province. It is a part of the legend of King Tran Nhan Tong (1225-1258) leaving his throne to become a monk at pagoda complex of Yen Tu mountain. The monk king planted the first yellow apricot blossom trees. Korean investors to get practical help from Hanoi-based desk The Ministry of Planning and Investment’s Foreign Investment Agency (FIA) has recently launched the Korea Desk in a move to practically support the Republic of Korean (RoK) investors interested in doing business in Vietnam. By October 2014, the RoK’s total investments in Vietnam approximated 33.5 billion USD, ranking second among countries and territories investing here. It has also become the top foreign investor in Vietnam this year when channeling 3.6 billion USD in during the first 10 months of 2014. RoK Ambassador Jeon Dea Joo said Vietnam will become the most important foreign investment partner of the RoK once a bilateral free trade agreement and the Trans-Pacific Partnership agreement are enforced. The Korea Desk is among the latest agencies specialising in providing assistance for foreign investors. Earlier, the Japan Desk was set up. By October 2014, Japan tops the investors’ list with 36.5 billion USD Both desks, located at the FIA’s Northern Investment Promotion Centre in Hanoi, are tasked with offering official information and advice relating to legal issues and investment procedures for businesses seeking local partnerships. Officials from the Ministry of Planning and Investment said the establishment of the desks demonstrates efforts taken by the Vietnamese Government’s agencies to better the local investment environment and create optimal conditions for foreign investors. More than 250 exhibitors to attend Metal & Weld 2014 Over 200 enterprises from 10 nations have registered to participate at the international trade show– Metal & Weld 2014 – in Ho Chi Minh City on December 3-6 showcasing the latest in metal working and welding industrial technologies. The trade show will coincide in terms of dates and venue with the 16th International Machinery Fair 2014 (IMF Vietnam 2014) and the 9th Vietnam International Exhibition on Machinery Equipment, Raw Material and Industrial Products (Vinamac Expo 2014). The event aims to provide visitors the right technologies they are looking for and plentiful opportunities to network with potential business partners and generate new sales leads, organizers have announced. They expect the event to attract more than 250 pavilions featuring modern, environmentally friendly and energy efficient equipment-technologies that will provide ample opportunity for exhibitors to meet target customers and gain new ground establishing their brands. The exhibition has been co-organised by the Vietnam Advertisement & Fair Exhibition JSC (VIETFAIR) and Viet Trieu Hong Kong International Exhibition Co, Ltd. Global Finance honours OceanBank with top awards Global Financial Market Review has chosen OceanBank the winner of three distinguished international banking awards – the Best Retail Bank Vietnam 2014, Best Banking Group in Vietnam and Best Online Banking Initiative of the Year. The leading global online financial magazine made the selection in recognition of OceanBank’s great efforts for ever-increasing innovation to bring good retail products and services to customers. Previously, OceanBank had been honoured by the UK’s World Finance as the Best Banking Group in Vietnam 2014 and by the Asian Banking & Finance (ABF) magazine for its unique and creative e-banking services. An OceanBank representative says the bank will continue to make great strides in the coming time to auger in further advancements in the finance and banking industry of the country and world. Vietnam adopts new rules allowing 50-year foreign ownership over houses Vietnamese lawmakers have approved the revised Law on Housing, allowing foreign ownership of houses or apartments for 50 years, as the government seeks to boost the ailing domestic real-estate market. With a majority vote, Vietnam’s National Assembly on Tuesday approved the proposed amendments to the Law on Housing, allowing foreigners with a valid visa, as well as foreign companies and international organizations operating in Vietnam, to purchase houses and apartments. Specifically, the following three foreign subjects are now allowed to buy and own houses and apartments in Vietnam: Firstly, foreign individuals and organizations that invest in building houses under projects in Vietnam according to regulations of this law and other relevant legislation. Secondly, foreign-invested enterprises, branches and representative offices of foreign businesses, foreign investment funds, and branches of foreign banks operating in Vietnam. And thirdly, foreign individuals allowed to enter Vietnam. However, the new rules only allow foreign subjects to buy, buy on hire-purchase agreements, or own more than 30 percent of the flats in any apartment building. Regarding separate houses including villas and attached houses, foreign subjects are not allowed to buy 250 such houses in an area with a population equal to that of a ward-level administrative unit. Foreign subjects that buy, inherit or are given houses in Vietnam will have a term of 50-year ownership over these houses, and this term, which can be renewed under a Government regulation,  must be shown in their house ownership certificates. The new rules are of significance to foreigners in Vietnam, as the current laws restrict ownership to foreigners who are married to Vietnamese people and/or are deemed to have made significant contributions to the nation’s development. Commenting on the new regulations before the vote, many deputies said they will help revive the ailing domestic real estate market, contribute to the growth of the national economy, and are in line with the country’s international economic integration.   According to a report released by the World Bank in July, the real estate market in Vietnam remains frozen and parts of the sector are unlikely to recover soon. In a statement released at the legislature yesterday, NA vice chairman Uong Chu Luu emphasized that expanding the criteria for foreigners to buy and own houses in Vietnam aims to create favorable conditions to draw more foreign investment. The new rule is the latest government move to help foster the recovery of the property market following a housing stimulus program and a low-cost home loan package worth VND30 trillion (US$1.403 billion). Loans of up to VND700 million ($32,750) for a 10-year term are given to borrowers who want to build, renovate or repair houses; while loans of up to VND1.05 billion, with a term of 15 years, are offered to those who want to buy houses. FPT Trading launches first Windows Phone smartphones FPT Trading recently introduced FPT Win, the first mobile phone with FPT brand using Windows Phone 8.1 system. The event also marked the close relationship between Microsoft, Qualcomm and FPT in providing mobile devices with better performance, durability and elegant design, based on Windows Phone operating system. Under the agreement signed in 2014, FPT Trading will become a partner of Microsoft in the field of manufacturing of mobile devices using Windows Phone system in the Vietnamese market. All Windows Phone smartphones produced by FPT will be technically supported by Microsoft and freely use this platform. In addition to Microsoft, FPT Win will also receive a maximum technical support from Qualcomm, the leading chip maker. FPT Win uses 1.2GHz quad-core Qualcomm® Snapdragon ™ 200 MSM8212 which is designed to deliver a balance of performance, robust connectivity and better battery life. Combined with 1GB RAM, 8GB ROM, FPT Win brings rapid and smooth processing speeds in a row, beautiful and impressive graphics. Besides, 5 inches screen, high-definition (720x1280) and IPS panel technology are also noteworthy statistics. With the size and definition, FPT Win is a perfect choice for both entertainment needs such as watching movies, playing games and working or studying. The product is equipped with 8MP AF definition main camera, supported with flash and 2MP front camera. With a battery life of up to 2.200mAh, FPT Win can operate continuously for 10 hours with 3G in standard conditions. In terms of design, FPT Win is different from all previous products of FPT Mobile. Only 7.9mm thin, FPT Win brings elegance and luxury for users thanks to slender appearance but very reliable and meticulous in each detail. “FPT Win is not only the Windows Phone smartphone with beautiful design and powerful configuration, but also marks the close cooperation between FPT Trading and Microsoft, Qualcomm to bring the best technology to Vietnamese users with reasonable price,” said Le Hoang Hai, director of Marketing and Partnerships of FPT Trading Company. FPT Trading announced the list price of the product of VND3.39 million ($160, tax included), attached with a 13 month warranty countrywide. On the occasion of the launch, the first 999 customers to order FPT Win will receive preferential price of only VND2.79 million ($132, tax included) and get 1 windbreaker free. FPT Trading Group JSC is a member of FPT Corporation, one of leading information technology and telecommunication companies in Vietnam. FPT Trading Group has been selected as a strategic partner to exclusively distribute many information technology and communications products for more than 60 famous brands in the world such as IBM, Lenovo, Microsoft, HP, Nokia, Toshiba, Oracle, Cisco, Dell, Asus, Acer, HTC, Apple, and more. Bosch lends helping hand in vocational training in Vietnam Germany’s technology and services supplier Bosch has marked the completion of the first year of its technical industrial apprenticeship (TGA) program in Vietnam with 46 trainees, which coincided with a visit by German Vice Chancellor Sigmar Gabriel to the training center. The TGA program combines theoretical training at LILAMA2 Technical and Technology College in Vietnam with hands-on training at the TGA training center of Bosch in Dong Nai Province. After graduation, apprentices will be granted a certificate jointly issued by the German Industry and Commerce in Vietnam and LILAMA2. The TGA program in Vietnam follows the existing vocational training systems and standards of Germany and was launched in November of last year with an initial investment of US$1 million (760,000 euros). “The lasting relationship between Vietnam and Germany has paved the way for further progress towards raising the bar of Vietnam’s labor skills,” said Sigmar Gabriel, who is also Federal Minister for Economic Affairs and Energy, during his visit to the Bosch TGA training center on November 20. He added that “initiatives such as the cooperation between Bosch and LILAMA2 is a pioneering effort that sets an example for many more companies and vocational training colleges in Vietnam to follow.” In a recent visit to Germany, when talking about the TGA program, Prime Minister Nguyen Tan Dung said, “Bosch has helped promote the theoretical-and-practical training model in Vietnam that our government supports and encourages. I hope Bosch continues to further develop the model in Vietnam.” Six years after Bosch officially began operations in Vietnam, it has seen its workforce grow to around 2,000 and is now one of the largest European high technology companies in Vietnam. Bosch has invested US$340 million (260 million euros) in the gasoline systems manufacturing plant in Dong Nai Province. In addition, it has two research and development centers for software engineering and automotive technologies in HCMC. According to Vo Quang Hue, managing director of Bosch in Vietnam, Bosch has established a local technical training curriculum adapted from Germany’s renowned education standards and manufacturing strengths to equip local workforce with high-tech skills and knowledge. “Bosch is committed to the promotion of education and is glad to be able to make a positive contribution to the vocational training system in Vietnam,” Hue added. Bosch focuses on developing and retaining staff via activities like sending them overseas for international exposure. Besides, to fulfill career objectives, Bosch associates have three career progressions, which are leadership, specialist and project management. Peter Tyroller, member of Bosch’s board of management for Asia-Pacific, said, “The demand for qualified specialists is increasing continuously in Asia, especially since our investments in the region will remain at a high level in the coming years.” According to Tyroller, to further intensify its localization efforts, Bosch is developing local talent to meet the increasing requirements of its fast-growing business in Asia. The Asia Pacific Conference of German Business on how to develop and retain talent in Vietnam is taking place in HCMC until tomorrow. Tyroller is a panelist at this event. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR