BUSINESS IN BRIEF 6/12 HCM City kicks off tourism, shopping fest A tourism and shopping fest opened in Ho Chi Minh City on December 4, spoiling visitors with a variety of compelling choices. The fest, running until December 31, is drawing the participation of over 500 local shopping malls, hotels, and restaurants with more than 1,000 stalls offering culinary and entertainment delights. Shoppers are able to snag value coupons and deals off 10-50% and gifts as well as try their luck on lucky draws. Speaking at the opening ceremony, Director of the municipal Department of Tourism Van Thi Bach Tuyet noted with satisfaction the city’s stable tourism growth, adding that the southern metropolis expects to earn VND89 trillion (US$4.2 billion) from tourism activity this year, a rise of 7% from 2013. She also promised a series of cruise and land tour packages and cultural-tourism events to attract more visitors to the city, with promotional offers made available. ASEAN Extractive Industries Governance Framework introduced How to apply the ASEAN Framework for Extractive Industries Governance in Vietnam’s condition was the focus of a workshop held by the Centre for People and Nature Reconciliation (PanNature) in Hanoi on December 5. Speaking at the event, PanNature Director Nguyen Viet Dung said that the governance framework serves as a tool to help ASEAN member countries develop extractive industries responsibly and transparently, thus contributing to promoting sustainable economic growth at regional, national and local levels. It provides principles and prescriptions to harmonise policies related to this field as well as guidance to set up tools supervising resources exploitation in each member state, he stated. Extractive industries play an important role in attracting investments and providing input materials for industrial production as well as greatly contribute to economic growth in many ASEAN nations. Especially, oil, gas and mineral exploitation is considered a key field to realise common goals of the ASEAN Economic Community, scheduled to be established by 2015. Most ASEAN countries with rich natural resources are facing challenges in governing its extractive industries. Bad governance has lead to slow economic growth, environmental degradation, and social conflicts. More opportunities for Vietnam-RoK trade ties A Free Trade Agreement between Vietnam and the Republic of Korea (RoK) will bring about more opportunities for bilateral trade cooperation. The assessment was made at seminar in Hanoi on December 5 with the participation of Vietnamese firms and 50 Korean importers. Deputy Minister of Industry and Trade Do Thang Hai emphasised that the friendship and cooperative ties between Vietnam and the RoK have developed strongly, especially since the two countries established strategic cooperative partnership in 2009. Two-way trade turnover has increased rapidly over the past decade with an average annual growth rate of 23.4%. In the first 10 months of this year, it hit nearly US$24 billion, a year-on-year rise of 5%. Many Vietnamese high-quality products are much sought after by Korean consumers, such as seafood, agricultural products, garment, wooden furniture, processed food, mobile phones and electronic components. A number of bilateral and multilateral trade agreements have positively contributed to boosting bilateral trade and investment relations. Particularly, the Vietnam-Rok Free Trade Agreement (VKFTA) which is being negotiated and is likely to be signed late this year will open more opportunities for both sides. Shinn Tea Yong, Chairman of the Korea Importers Association (KOIMA), said the association, with about 8,000 member businesses, has recently signed a memorandum of understanding (MoU) on trade cooperation with the Vietnamese Ministry of Industry and Trade. It sends business delegations to Vietnam to seek cooperative opportunities every year and helps Vietnamese firms to find potential Korean partners. Yong stated that the eighth round of negotiations on VKFTA in November obtained much progress. He expected that under the VKFTA framework the listed 19,000 Korean and 6,000 Vietnamese products will enjoy preferential treatment and positive support. Vietnam is one of the RoK’s important trade partners. The current trade imbalance between the two countries will be dealt with in the future, Yong hoped. Vietinbank signs US$139 million loan agreement with foreign banks The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) on December 5 signed a contract with 5 Taiwan banks for a US$139 million syndicated loan. They include Mega International Commercial Bank, Far East National Bank, Hua Nan Commercial Bank, the Shanghai Commercial and Savings Bank. The transaction was arranged by Cathay United Bank of Cathay Financial Corporation which has branches in Viet Nam. Vietinbank Director General Le Duc Tho spoke highly of the cooperation between VietinBank and five Taiwan banks, saying that this opens more cooperative opportunities between the Vietnamese bank and its partners. Signing the loan contract will help raise Vietinbank’s credibility on the international financial market and show international investors’ trust in it. Tho added that the loan will help improve VietinBank financial resources to meet businesses’ increasing demand for credit. Vietnam, Australia step up economic and trade ties Trade cooperation has become a crucial pillar in the relations between Vietnam and Australia, a Vietnamese diplomat stated at a regular meeting of the Australia Vietnam Business Council (AVBC) in Sydney on December 4. Vietnamese Ambassador to Australia Luong Thanh Nghi hailed the Australian business community for taking part in boosting two-way trade between the two countries with Australia now being Vietnam’s 7 th largest exporter and 12 th largest importer. The number of Vietnamese businesses interested in establishing partnerships in Australia is growing, the diplomat told the AVBC members, confirming that Australian entrepreneurs are encouraged to expand their operations in Vietnam. In the meantime, the two nations are working closely to introduce a new action plan for 2015-2017 with a view to promoting the bilateral economic collaboration in line with Australia’s economic diplomacy policy, Nghi underscored. He highlighted that Vietnam hails Australia’s new Colombo Plan in which Australian students will be supported to live, study and work in Vietnam from 2015. For his part, AVBC President Laurence Stranov expressed his pleasure to see the developing partnership between Vietnam and Australia, especially in education. He stressed that Australia’s groups and enterprises should promote their business in other key sectors in Vietnam to meet economic potential and two-way trade needs. AVBC is a forum to connect Vietnamese and Australian enterprises to the goal of broadening investments and trade between two countries. Hanesbrands unveils major expansion plans Apparel maker Hanesbrands (HBI) has announced a major restructuring to relocate plants and jobs to Vietnam. We are looking to make Vietnam the manufacturing hub of our operations said Javier Chacon, senior vice president of Hanesbrands, adding that HBI is expanding production in Vietnam and consolidating into fewer and larger plants in the country. Globalizing our supply chain and balancing production between Asia and the Western Hemisphere has been a critical plank in our strategic efforts to reduce costs, improve product flow and increase our competitiveness. Our factories in Thua Thien Hue and Hung Yen, which were opened in 2008 and have a total designed capacity of over 400 million products per year, have long been the centrepiece of that strategy, said Mr Javier Chacon. Chacon said in recent years, most of the sewing production from HBI’s former Central American plants has been moved to the company's Vietnam plants and a number of joint ventures with Vietnam National Textile and Garment Group (Vinatex) are now in the works for Vietnam. HBI is not alone, as official documents show that since the beginning of the year, some 20 new-FDI projects have received investment certificates from local authorities throughout the country. For example, in February 2014, Hong Kong’s Smart Shirts Garment Co, Ltd was granted an investment certificate to build a US$5 million factory which specialises in producing differing types of T-shirts, uniforms and other garment products. The company is a member of Smart Shirts group which has a number of production bases in Asia including Sri Lanka, the Philippines, China and Vietnam. It is also a provider of many well-known clothing brands in the US, Japan and Europe. With the increasing orders from the US in recent months, factories in Vietnam are beginning to play a vitally important role in the supply chain for Smart Shirts and its customers. Another example is China’s Texhong group, which has recently begun construction of a project to build a factory in the Texhong Hai Ha Industrial Park (IP) with total capital investment of VND4.520 billion in the northern province of Quang Ninh. In the next three to five years, Texhong group plans install a modern industrial production chain in the Texhong Hai Ha IP. Seafood island in central region seeks significant ecotourism gains Ly Son Island's leaders hope to transform it into an ecotourism centre, Tran Ngoc Nguyen, chairman of the island's People's Committee, said at a seminar yesterday. The event, titled Eco-planning toward sustainable development for Ly Son island, included information sessions with ecotourism experts from South Korea, a country that has integrated ecotourism into its tourism industry and cultural heritage efforts. Participants also toured the island to evaluate its infrastructure and potential. "Ecotourism might be the solution to many pressing problems, such as economic development, climate change, preserving natural resources and national sovereignty," said Nguyen Quang, director of UN-Habitat Viet Nam. Authorities should encourage the island's residents to participate in the planning process and contribute ideas to a development strategy, Quang said. Ecotourism was an excellent method for promoting the preservation of nature, said Professor Kwi Gon Kim, chairman of the International Urban Training Centre. The island, gifted with beautiful beaches, ancient pagodas and vibrant fishing communities, has the potential to become an attractive ecotourism site, he said. Ly Son island is about 15 nautical miles offshore in Quang Ngai province. It is the most populated island in the country, with a population of 21,500 who working mainly as seafood farmers. Trade and industry fair opens in Binh Duong The 2014 Southeast Region Trade And Industry Fair and a handicraft exhibition that opened in Binh Duong's New City yesterday seeks to help localities develop economic co-operation and companies compare notes on doing business. It has 600 booths set up by 200 domestic companies in sectors like food, fashion, machinery, electronics, technological accessories, and crafts, and also showcases some typical products from the south-east and central regions and the Mekong Delta. It is being organised by Binh Duong's Department of Trade and Industry, Centre for Trade Promotion and Economic Information, and the International Trade and Promotion Centre. The department said the six-day fair is part of the national trade and industrial promotion campaign in the south-eastern region. Ha Noi attracts $961m in foreign direct investment The capital city has attracted US$961 million in foreign direct investment (FDI) in the past 11 months, according to the Foreign Investment Agency's latest report. During this period, the manufacturing and processing sector had the largest share of FDI with $273 million, followed by real estate trading and hospitality with $246 million and catering and restaurant industries with $231 million. South Korea was the biggest investor with $395 million or 41 per cent of the total, followed by Singapore with $231 million ( 24 per cent). The city is now home to 3,000 foreign-invested projects worth $23.4 billion. Domestic garment firms expect to do better in 2015 Domestic garment companies are looking forward to growth in production and business in 2015 because of positive developments in Vietnamese garment exports by year-end. With still less than a month before the end of 2014, a number of large garment companies have already come up with production and business plans for next year, reported Dau tu (Investment Review) newspaper. Trade and Investment Joint Stock Company (TNG) aims to increase revenues to VND1.8 trillion (US$84.9 million) and post-tax profits to VND75 billion next year. It has so far this year achieved VND1.4 trillion in revenues and VND55-57 billion in post-tax profits. Nguyen Van Thoi, TNG chairman, said this year, the garment industry experienced a boost in exports, and TNG has based its targets on this positive development. TNG's key export markets include the United States with 47 per cent of export value, followed by the European Union with 21 per cent, Canada with 15 per cent and Japan with 6.5 per cent. Nguyen Song Hai, general director of Ha Noi Textile and Garment Joint Stock Company (Hanosimex), said he believed his company would reach its production and business targets and predicted this year's revenues to reach VND2.12 trillion, a 27-per cent year-on-year increase. The company aims to increase its revenues next year by 13 to 15 per cent, Hai revealed. In anticipation of export opportunities from free trade agreements in 2015, the company aims to set up and develop fibre, textile and garment factories projects in the central provinces of Thanh Hoa, Nghe An, Ha Tinh and Quang Binh. Meanwhile, Thanh Cong Textile, Garment, Investment and Trade Joint Stock Company (TCM) aims to increase its revenues from VND2.54 trillion in 2014 to VND2.78 trillion in 2015, and its post-tax profits from VND164 billion in 2014 to VND170.3 billion in 2015. For long-term development, the company has promoted investments for the completion of the construction of a garment factory at Hoa Phu Industrial Zone in Vinh Long Province in 2015. Viet Nam's garment and textile exports in 2014 are likely to hit US$24.5 million, a 19-per cent year-on-year increase and the biggest in the past three years, according to the Viet Nam National Textile and Garment Group (Vinatex). Le Tien Truong, Vinatex general director, also revealed that in recent years, Viet Nam's garments and textiles sector has focused on diversifying materials supply sources to ease dependence on foreign sources and increase flexible competition capacity. To date, the sector has raised the localisation rate to more than 50 per cent. Viet Nam's upcoming free trade agreements with the European Union, South Korea and the Customs Union of Russia, Belarus and Kazakhstan, as well as the Trans-Pacific Partnership with the Asia-Pacific Economic Co-operation Forum, are expected to open up huge opportunities for the sector. However, it needs to improve its productivity, quality and competitiveness with investment in new technologies, machinery and innovation. VCA tries to raise local consumption to 20 percent Turnover of the agricultural produce reached US$2 billion this year, an increase of 20 percent in comparision to 2013, said chairman of Vietnam Cashew Association Nguyen Duc Thanh at a forum about cashew’s value held in Ho Chi Minh City on Dec. 1st. However, Mr. Thanh noted that local consumption increase slightly just at 5-10 percent compared to export. Therefore the association will coordinate with retailing association of Vietnam will promote cashew consumption in supermarket chains and stores, reaching an increase of 20 percent, he said. Currently, around 50 cashew produce items are produced mainly for exporting, he added. Also at the forum, Dr. Do Thi Ngoc Diep, chairman of Nutrition Association in Ho Chi Minh City said that a study on blood glucose levels in cashew showed the low glucose level in the nut in comparision to other grains such as husked brown rice or bread. So it is useful for diabetes people and people with heart disease, she added. Real estate developer Kinh Bac to hold $56m bond issue Kinh Bac City Development Holding Corporation (HoSE: KBC) is issuing VND1.2 trillion ($56 million) in convertible bonds in December. The bonds, which have the face value of VND1 million ($47.3) each, have a term of three years and a yield of 8 per cent per year. In the first nine months of 2014, KBC earned the net profit of VND165.1 billion ($7.75 million), compared to the loss of VND128.7 billion ($6.04 million) in the same period last year. The improvement was attributed to an increase in land rentals. Dang Thanh Tam, chairman of KBC, is the biggest individual shareholder with an ownership of 20.99 per cent. Other big investors in KBC include Vietnam Enterprise Investments Limited, which holds a 6.68 per cent stake, Saigon Invest Group with 5.82 per cent, and Deutsche Bank AG London with 4.8 per cent. Vinmec equipped with Vietnam’s most advanced radiotherapy device Vinmec Vietnam International General Hospital has just been equipped with the Clinac iX linear accelerator, the most advanced device used in radiotherapy in Vietnam. Clinac iX, which is used in most developed countries, is the newest model developed by Varian Medical Systems, the world's leading manufacturer of radiotherapy equipment. On November 17 and 30, specialists from Varian trained Vinmec’s doctors, engineers and technicians on how to operate the Clinac iX. In the future, Varian will continue to advise Vinmec in cancer treatment and train Vinmec’s employees. Vinmec targets to become Vietnam’s most advanced radiotherapy centre. Vinmec is located in Hanoi and was developed by Hanoi South Urban Development JSC (an affiliate of Vincom JSC – member of conglomerate Vingroup). Over the next five years Vinmec plans to have 10 hospitals nationwide with one each in Phu Quoc, Ho Chi Minh City and Nha Trang slated to start operations in 2015. Vinmec has also developed a medical university that has announced it will start admitting students in 2016. California-based Varian Medical Systems produces medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy, and brachytherapy. Varian also supplies equipment for X-ray imaging in medical, scientific, and industrial applications and X-ray imaging products for cargo screening and industrial inspection. Varian has 6,800 employees in its plants in North America, Europe and China and 70 sales and customer services offices around the world. Häfele opens its largest design centre in Hanoi Häfele, one of the world’s leading home solution providers, today announced the opening of Häfele Design Centre at 128 Thuy Khue in Hanoi. With a total area of 2,500 square metres, this is Häfele’s biggest design centre in Vietnam, featuring an extensive range of Häfele’s European standard kitchen appliances along with a wide portfolio for bathroom products. The move affirms the company’s position as the trustworthy and quality leading home solutions provider for Vietnamese customers. The new centre had opened the first two floors for kitchen and bathroom products this November. Specifically, there will be a total of 7 different kitchen types, 15 bathroom mock ups and others to help Häfele’s customers best utilise and design their home space. This opening also provides a glimpse into the design centre’s grand opening on March 2015, which will feature the full four retail floors, two office floors and a rooftop for event space. “The Häfele Design Centre in Hanoi will showcase our portfolio of kitchen and bathroom products that meet the German standard of quality and safety. This centre also offers home solutions that fit with any home space and its requirements,” said Sascha Kirchner, general manager of northern region. “When our design centre is fully operational in March 2015, we believe it will be the inspirational hub for not only home owners but for architects and interior designers alike,”  he added. To mark this occasion, an up-to-30 per cent discount will be given to visitors purchasing Häfele’s kitchen appliances and bathroom fixtures from leading German brands at the new centre from now until February 15, 2015. ANZ Vietnam signs new MoneyMinded Partnerships ANZ yesterday announced the signing of MoneyMinded partnerships between ANZ and its three partners in Vietnam, including Blue Dragon Children’s Foundation, FPT University and Institute of Economic and International Trade under Foreign Trade University. The partnership is aimed at expanding the reach of the MoneyMinded programme to wider groups in the local community. The partnerships between ANZ and the three partners will allow partners to deliver the programme on ANZ behalf to their identified target groups during the partnership period.  “Building a responsible business is one of ANZ priorities. By offering this practical financial education programme to Vietnamese young adults and selected disadvantaged groups, we believe that together with our partners we can build long term financial confidence and well-being for Vietnamese people. We are pleased to find trusted partners in Vietnam and want to thank our partners for their support in this meaningful programme,” said Phan Thi Thanh Binh, acting chief executive officer at ANZ Vietnam. MoneyMinded is part of ANZ’s long-term strategic approach to improving financial literacy in the community. The programme has reached more than 240,000 people since its inception in 2004. MoneyMinded was first launched in Vietnam in 2012 at FPT University, benefiting over 400 participants in three years. Dam Quang Minh, rector of FPT University, said the programme was proved positively with FPT University students. “We are delighted to partner with ANZ and send our teachers to learn about the programme and come back delivering it to our students. This partnership gives us more flexibility and autonomy to arrange MoneyMinded sessions on our own agenda,” said Minh. “We welcome both the MoneyMinded program itself, and the opportunity to help evolve the program with ANZ in Vietnam, particularly for BDCF’s disadvantaged beneficiaries. This is also a great learning opportunity for our staff,” Michael Brosowski, chief executive and founder of Blue Dragon Children’s Foundation, said. Sanofi launches Tier 3 of training programme on diabetes in Vietnam Sanofi, a global healthcare leader, in partnership with the American Diabetes Association (ADA) and the Vietnamese Association of Diabetes and Endocrinology (VADE) today launched Tier 3 of the international Specialised Training Education Programme in Diabetes (iSTEP-D) to improve diabetes management in Vietnam. This partnership demonstrates the strong commitment of Sanofi and advocates around the world to stand together against diabetes and improve the life of people with diabetes. As scheduled, Tier 3 of iSTEP-D will be launched widely with 20 core courses and 20 advanced courses. Whilst Tier 2 involved only doctors who specialise in diabetes, Tier 3 is open to general practitioners.  Accordingly, 1.200 general practitioners nationwide will be provided with the basic and the most updated knowledge in the diagnosis and treatment of diabetes with ADA’s standards. Courses will be organised at five training centres across Hanoi, Hue, Ho Chi Minh cities. “Launching iSTEP-D in Vietnam is critical as we are facing the fact that the diagnosis and treatment of diabetes is inconsistent. It is vital that we take immediate action in order to achieve better management of diabetes, especially in early stages. Raising awareness of the disease and providing profound training for Vietnamese doctors are key factors to the success of the programme,” said Thai Hong Quang, chairman of the Vietnamese Association of Diabetes and Endocrinology. “There are approximately five million people with diabetes, but only 33.4 per cent is diagnosed and among this, 56.3 per cent has not been treated.  On top of this is the fast-growing incidence of diabetes, averaging 5.5 per cent nationwide, the ratio could be much higher in big cities,” Quang added. Participating in the iSTEP-D Tier 2, Dr. Nguyen Thanh Hai from Trung Vuong Hospital’s Endocrinology Department said: “iSTEP-D provides us with the most updated scientific information and international treatment guidelines that can be applied to the management of diabetes in Vietnam. In particular, apart from the doctors who specialised in diabetes, the programme is also open to general practitioners. Patients will then be more effectively treated and can better manage the disease.” One of iSTEP-D trainers, Nguyen Khoa Dieu Van, head of Diabetes and Endocrinology Department, Bach Mai Hospital, said: “iSTEP-D is the first of its kind in Vietnam which is very valuable for both endocrinologists and general practitioners. Thanks to the programme, doctors can access the most fundamental as well as the most up-to-date knowledge on diabetes so that they can provide more accurate and effective diagnosis and treatment to diabetes patients.” “This launching is the first step in proliferating iSTEP-D throughout the country. By supporting this programme, Sanofi intends to contribute to the enhancement of knowledge about diabetes in the medical community and strengthen its commitment for better care and management of diabetes in Vietnam,” said Cyril Grandchamp-Desraux, general manager of Sanofi Indochina. Denmark supports Vietnam’s private sector Denmark support to the private sector during 2011-2014 under the umbrella of Global Competitiveness Facility (GCF) for Vietnamese enterprises has helped create around 30,000 jobs and generated an important additional export income for Vietnamese firms. This very positive overall message was clear at the closing ceremony held last week in Hanoi for the Danish GCF Programme, which has focused to increase the competitiveness of non-public Vietnamese businesses in export-oriented business sectors in eight provinces. “The results achieved are impressive. More than 40 projects have been supported and nearly 30,000 jobs have been created. More than 60,000 people have been trained, income for the farmers and households has increased significantly and an important additional export income for Vietnam has been generated,” said Danish Ambassador to Vietnam John Nielsen. GCF supported innovations and initiatives to develop commercially viable business services for a large number of small businesses, household enterprises and farmers that have a long-lasting positive impact on development of export-oriented sectors and value chains. Denmark is still, by far, the biggest provider of grants, almost 25 per cent of the total, among all EU member states to Vietnam. During 2014-2015 Denmark will disburse up to $90 million in official development assistance (ODA) funds to Vietnam.  The main areas for the Danish support to Vietnam are green growth, climate, private sector development, water and sanitation, culture and governance activities. Since 1994 Denmark has provided Vietnam with more than $1.3 billion in ODA. Through this support Denmark has contributed to the strong growth and economic development which has taken place in Vietnam. GCF was designed and implemented to assist the government of Vietnam in strengthening the capacities of domestic enterprises to structurally transform into competitive players in the global market. With a total grant from Denmark of more than $11 million the Danish and Vietnamese governments agreed to support the competitiveness of the export oriented sectors in the period from 2011 to 2014. GCF had provided grants for 42 projects in the eight target provinces of Nghe An, Thanh Hoa, Khanh Hoa, Phu Yen, Lam Dong, Dak Lak, An Giang and Can Tho. The facility is anchored in the Central Institute of Economic Management (CIEM) under the Ministry of Planning and Investment. The facility's highest decision-making body is a steering committee which is composed of one representative from the Embassy of Denmark and one from the CIEM. Kem Nghia to build $14 million plant Ho Chi Minh City-based Kem Nghia JSC on November 26 received an investment certificate to build a $14 million plant in the city’s Tan Phu Trung Industrial Park. The plant, located on a five-hectare site, produces household metal goods and personal care products with the estimated capacity of 850 tonnes per year. Construction is planned to start in April 2015 and be completed within a year. In the near future, Kem Nghia plans to expand its distribution network in the north of Vietnam as well as to foreign markets. Kem Nghia, now a household name in Vietnam, is famous for its nail care and decoration kits. Established in September 2000, the firm now has more than 130 stores and 3,000 resellers and holds an 80 per cent share of the Vietnamese market for metal personal care products. The firm’s products are also sold abroad in markets such as the US, Canada, Germany, France, Italy, Russia and Japan. An Giang brims with huge potential The Mekong Delta province of An Giang has enormous potential for socio-economic development. The province shares nearly 100 kilometres of its border with Cambodia, accommodating two international border gates - Tinh Bien and Vinh Xuong, and two national border gates - Khanh Binh and Vinh Hoi Dong. An Giang is regarded as a major economic and trade hub, connecting the three major cities of Ho Chi Minh City, Can Tho and Phnom Penh and serves as an important gateway for trade exchanges between localities in the delta region and Cambodia and other ASEAN member countries. To tap these advantages, in May 2007 the prime minister signed Decision 65/2007/QD-TTg enacting An Giang border gate economic zone operational rules with a view to turning  border gate economic zones into the province’s growth engine and promoting connectivity in economic development with other countries in the Mekong sub-region, primarily Vietnam and Cambodia. An Giang border gate economic zone covers 256.8 square kilometres, divided into three functional zones: 99 sq.km Vinh Xuong border economic zone (EZ), 92 sq.km Tinh Bien border EZ, and 74 sq.km Khanh Binh border EZ. In the previous years, the province has concentrated efforts into finalising planning of these border gate EZs in order to call for investment into infrastructure, and from there spur tourism and border economic development. Residents in border areas have been supported in terms of agricultural, industrial, trade, services, and tourism development to gradually raise income levels, narrowing the gap in development between border residents and those in other parts of the province. Thanks to its location at the mouth of the Mekong River, An Giang possesses ideal conditions for agricultural development, particularly rice, cereals and fresh-water fish. Rice is one of An Giang’s staples, covering nearly 650,000 hectares with an average yield of 6.5 tonnes per hectare. An Giang now ranks second countrywide in paddy rice production at around four million tonnes per year. Its rice has made inroads in countries around the globe and each year brings the province several hundred million US dollars in export value. Last year, rice brought the province $203 million in export value. The province also has advantages in growing cereals such as corn, groundnuts, sesame and Indian taro which have delivered even better earnings than rice. Cereals now cover more than 60,000ha in the province and this figure is increasing. Seafood was established as the province’s spearhead sector with basa and tra fish identified as the province’s strategic products. The province is home to about 2,000ha of aquacultural area of which 1,100ha is dedicated to tra fish farming. Seafood output comes to about 287,000 tonnes, of which nearly 230,000 tonnes are basa and tra fish, a huge material source for export processing of businesses based in An Giang and other surrounding locations. Last year, An Giang exported 170,000 tonnes of seafood, generating $440 million in the export value. In terms of livestock breeding, An Giang hosts large cattle and poultry herds, with 100,227 cows, 137,805 pigs, and 3.95 million poultry. Specifically, cattle herds are expanding quickly as more local households look at raising cows as an effective way to promote their household earnings. The province also has huge tourism potential as it is home to many famous cultural and historical sites, such as the Cam Mountain, Tra Su indigo forest in Tinh Bien district, Oc Eo archeological site in Thoai Son district, and Tuc Dup in Tri Ton district. The province also attracts visitors through distinct local events such as the Khmer bull fighting festival in Tinh Bien and Tri Ton districts, and the Islamic festival of Ramadan held by the local Cham people. The province’s tourism sector has been developing robustly in recent years. Travel companies have constantly invested in improving services and promoting its image in key domestic and foreign markets. Last year, An Giang received nearly 5.5 million visitors, generating more than VND315 billion ($15 million) in revenues. In the first nine months of this year, 5.4 million tourists visited to the province’s tourism attractions, bringing over VND273 billion ($13 million) in revenues. This diverse potential has proven An Giang to be a promising land for domestic and foreign investors. One more port to go public in December Chan May Port Co. Ltd. plans to sell 7.4 million shares, or a 24 per cent stake on December 17 at an initial price of VND10,700 (50 US cents) per share. After equitising, the firm will have the registered capital of VND308.6 billion ($14.5 million) and the government will hold a 75 per cent stake. 1 per cent is slotted for sale to employees at a preferential price. Chan May Port lies between Vietnam’s central province of Thua Thien-Hue and Danang city. It is capable of receiving vessels up to 30,000DWT and large international cruise ships. The firm plans to expand the port to raise its cargo capacity to 100 million tonnes per year and docking capacity to 50,000DWT. According to the company’s website, in the first nine months of 2014 the firm earned the net profit of VND4.4 billion ($206,000), up 30 per cent on year, with the revenue of VND70.2 billion ($3.3 million), up 20 per cent on year. Chan May is just one of a series of ports on the equitisation list for 2014. Others include Haiphong, Quang Ninh, Nha Trang and Danang which held IPOs earlier this year. Of the four, Haiphong was the most successful with 17.6 million share sold out of a total 37.6 million on offer, coming to 47 per cent. The remaining three only sold 7.5 per cent, 6.3 per cent and 19 per cent of their shares on offer. The failure of these IPOs was attributed to the large controlling stake the government continues to maintain in these ports’ holding companies, “which explains why strategic investors and foreign investors rarely pay special attention to these ports,” noted Nguyen Hong Quang, associate analyst at Vietnam Capital Securities. “If investors want to hold stakes in these ports for the long-term, they want to get involved in management positions,” he said, “so the government’s overwhelmingly majority position is not in their favour.” VND1.5 trillion for port upgrade projects in Can Tho The Mekong Delta city of Can Tho since 2012 has spent VND1.5 trillion to upgrade seaports and river ports in the city to meet increasing demand of waterway transportation, Vietnam News Agency quoted Can Tho Department of Transport. Lu Thanh Dong, director of the transport department, said Cai Cui Seaport has been upgraded with a total cost of VND1.2 trillion. The largest-ever port in the Mekong Delta region will be able to handle 20,000-DWT vessels and have an expected annual cargo throughput of 2.3 to 2.5 million tons when its second investment phase is completed. The port located ten kilometers off the downtown area of the city, five kilometers off Can Tho Bridge and next to the Hau River will have three wharves with a combined length of 500 meters. Cai Cui Seaport is the main port of the Can Tho port complex and will serve the need of enterprises in Hung Phu Industrial Park in the city as well as contribute to social-economic development of many provinces in the Mekong Delta. The city authorities have also built a new Can Tho Wharf stretching 304 meters in length with 120,000-ton payload and installed two more cranes with a combined maximum lifting capacity of 300 tons. Besides, the city government has expanded the port’s land area from three to six hectares and the container yard from 5,000 to 9,000 square meters, and bought more modern equipment for the port’s operation in the coming time. Meanwhile, Tra Noc Port on the Hau River is also being upgraded so as to be able to handle ships of 5,000-6,500 tons and have an annual throughput of 400,000 tons. Data from the city’s transport department showed these ports in the year to date have handled around 900,000 tons of cargo, up 25% over the same period last year, in which nearly 30% of the cargo volume was from foreign ships. The charges for loading and unloading here are some US$5 per ton lower than ports in HCMC. HSBC projects stability for local currency HSBC Bank said in its report on December 2 that Vietnam dong will likely be stable at least for the rest of the year, mainly supported by the steady flows of foreign direct investment (FDI) and a balanced trade account. According to the Foreign Investment Agency (FIA), FDI disbursements in the January-November period rose positively by 6.2% year-on-year to some US$11.2 billion. FDI approvals continued to fall in the first eleven months of this year but the drop slowed as several big-ticket projects, including the second phase of the Samsung Thai Nguyen hi-tech complex. In the period, foreign investors pledged a combined investment capital of US$17.33 billion, declining by 16.7% year on year. HSBC said Vietnam has enjoyed a trade surplus of US$2 billion in the year to date. Figures of the General Statistics Office showed Vietnam suffered a trade deficit of US$300 million in November but posted a trade surplus of US$2.06 billion in the year to November. FDI enterprises contributed over US$15.5 billion of the total number while domestic firms incurred a trade deficit of nearly US$13.8 billion. Rising import demand in the short term as it did last month would put pressure on the local currency, the bank forecast. It said the strong increase in import demand as well as profit-taking activities of foreign investors used to cause the local currency to fall against the U.S. dollar and moved towards the highest level allowed by the State Bank of Vietnam (SBV). “November and December are months when trade typically rises. This year, the increase is even more rapid (as shown by the comparison with the previous year) due to rising competitiveness of Vietnamese goods,” the bank said. Both imports and exports tend to flare strongly given higher demand in the fourth quarter in most years and increasing production before the Lunar New Year holiday, better known as Tet in Vietnam. One more reason for the bank to project stability for Vietnam dong is that SBV’s Governor Nguyen Van Binh confirmed that the reference rate of the local currency will not be changed for the rest of the year in response to the appreciation of the U.S. dollar in recent weeks. The bank’s data showed after the central bank devalued the local currency by 1% in June this year, the exchange rate between the local currency and the greenback moved below the allowable ceiling level of VND21,458 for most of the year.   “We believe that other than the occasional stress points, the Vietnam dong will likely be stable thanks to the steady flows of sticky capital (FDI) and a balance trade account,” the bank said. As for improvements of the domestic market, the bank expected demand to gradually pick up on the back of an improving economy and increasing purchasing power. The sharp fall in oil prices will drag down the country’s fiscal deficit but help producers lower costs and pass on the saving to consumers. “Vietnamese manufacturers and consumers will gain from the drop,” the bank said and forecast that private consumption in Vietnam to jump to 5.6% next year from 5.4% this year.  The bank believed Vietnam’s economy will accelerate in 2015, a year when the Government targets a GDP growth rate of 6.2%. Japanese firms keen on high-tech agriculture in delta Many Japanese enterprises have expressed their intention to invest in the Mekong Delta region, especially in high-tech agriculture, according to the Southwest Steering Committee. At a recent meeting with the Southwest Steering Committee in Can Tho City, Kikuchi Tadashi from the Japan International Cooperation Agency (JICA) suggested an idea of compiling a book containing information about the investment opportunities at industrial zones and supporting policies for enterprises in the region as a measure to help attract Japanese investors. The source of useful information, according to Tadashi, will enable Japanese companies to identify where and what to invest as well as the localities able to meet their criteria. Tadashi noted that Japanese firms currently lack information about the projects in need of investments, supporting policies and the chances for them to expand operations. Duong Quoc Xuan, deputy head of the committee, said the agency would provide full support to translate the idea into reality, as attracting Japanese investors to the Mekong Delta, particularly to agriculture and manufacturing of equipment to process farm produce and seafood, is one of the priorities for the region. Representatives of the ministries of planning-investment, industry-trade and agriculture-rural development and the Southwest Steering Committee are visiting Japan to introduce the Mekong Delta to Japanese companies and call for them to invest in the region. Updates of the Foreign Investment Agency (FIA) showed that Japan ranked third in terms of investment pledges for the projects in Vietnam in the January-November period with US$1.71 billion after South Korea and Singapore with US$6.82 billion and US$2.75 billion respectively. Ministry requests tightened control on transport fare reduction The Ministry of Finance has pressed finance departments in localities to reinforce their management on transport fares, given the steady decreases in retail fuel prices since the year’s beginning. In its document sent to provincial finance departments on Monday, the ministry said retail fuel prices had fallen ten times since early this year with two deep falls in November but many transport firms have not cut their transport fares. At the regular press conference of the Government held on Monday, Deputy Minister of Finance Vu Thi Mai said the ministry has written to the Ministry of Transport and provincial governments, calling on them to cooperate in checking the reduction of transport fares in accordance with the decreasing level of fuel prices. The finance ministry had worked with the transport ministry to set up inspection teams to check the transport fare decreases in Hanoi, HCMC and Danang City. In Hanoi, taxi operators have announced to cut the fares by 2-10% while passenger transport firms and cargo transport companies slash the fares by 5.8-10% and 3.4-3.9% respectively. Taxi firms in HCMC have cut the fares by 2.7-9% while passenger transport companies announced to cut the fares by 2-11.3%. Taxi fares and goods transport fares are reduced by 3-32% and 3.2-6.7% in Danang. However, through inspections, many transport firms have not cut their fares. Therefore, the finance ministry had to issue the document to require tightened control on the fare cut. If necessary, finance and transport departments in localities should set up interdisciplinary inspection teams to inspect the fare reduction and the observance of the price and tax laws of local transport firms, and report to the ministry before December 15. From December 1, the Circular 152/2014/TTLT-BTC-BGTVT providing guidelines on transport fares had come into force. According to the Circular, transport firms must declare new prices when raising or cutting their transport fares by more than 3% against the previous level. Denmark selects ANZ as bank to back private firms The Danish Embassy in Vietnam has appointed ANZ Vietnam as the sole Fund Holding Bank for the embassy’s energy efficiency fund of US$6.5 million in this country. Under the Fund Holding Bank Framework Agreement signed between the two sides in Hanoi on December 2, the fund will help Vietnamese small- and medium-sized enterprises (SME) improve their energy efficiency and to promote clean and sustainable manufacturing in Vietnam. The US$6.5 million fund, which is part of the US$11 million Denmark has decided to finance energy efficiency in Vietnam, supports SMEs in the brick, ceramics and food processing sectors. Denmark is one of the world’s leaders in green growth, sustainable development and the use of advanced green and clean technologies. Danish Ambassador to Vietnam John Nielsen said Danish know-how and its advanced green technologies are well-matched to the challenges faced in Vietnam. He expected his nation’s support will raise awareness and make ideas and improvements come to life in the private sector. He said Denmark selected a trusted bank like ANZ to be the Fund Holding Bank to ensure transparent and effective use that will ultimately contribute to the sustainable development of the whole Vietnamese economy. ANZ Vietnam’s acting CEO Phan Thi Thanh Binh said the bank’s experience of more than 20 years in Vietnam will ensure this fund to be well managed. ANZ will issue guarantee certificates worth up to 50% of investment capital of the projects in the sectors already appraised by the Danish Embassy. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR