BUSINESS IN BRIEF 29/9 New Chan May Port wharf to service by 2018 Central Thua Thien-Hue province broke ground on Chan May Port’s wharf No. 3 on September 26, which is expected to be capable of handling ships with a loading capacity of up to 50,000 deadweight tonnage.  Covering 13 hectares, including 3 hectares of water surface, the construction is expected to cost 846 billion VND (37.7 million USD) and is due to be completed in 2018. The wharf will be 270 metres in length.  The Chan May Port lies between the two central hubs of Hue and Da Nang cities, near a series of popular destinations including Canh Duong – Lang Co – Hai Van – Non Nuoc and the Bach Ma national park. It also serves as the easiest access point from the east-west economic corridor to the East Sea while connecting the central region with Laos, Thailand and Myanmar.  Chan May wharf No. 1 recently re-opened after a 310 billion VND (14.2 million USD) upgrade enabling it to receive large vessels carrying up to 4,000-5,000 passengers each.  According to Chairman of Thua Thien-Hue’s People’s Committee Nguyen Van Cao, the Chan May Port is planned to have 6 wharfs and an annual throughput of 7.4 million tonnes by 2020. Southern Vietnam enhances industrial promotion towards ASEAN Community The sixth industrial promotion conference for southern localities convened in southern Ba Ria-Vung Tau province on September 25 focused on hastening promotion activities towards the impending ASEAN Economic Community.  The Ministry of Industry and Trade’s Department for Local Industry reported that by the end of September, total finances allocated for industrial promotion of the 63 provinces and cities nationwide exceeded 213 billion VND (9.46 million USD), up 4.25 percent from 2014.  Of the sum, more than 62 billion VND (2.75 million USD) was earmarked for the 20 southern provinces and cities, an annual increase of 5.96 percent. Nineteen of the 20 localities also approved the use of over 43 billion VND (1.91 million USD) from local budgets for their promotion efforts.  The funding was spent on vocational training, improving management capacity, technical demonstrations, transferring scientific-technological advances and developing industrial products in rural areas, the department noted.  A report at the conference highlighted the growing effectiveness of industrial promotion activities in the south, elaborating that the design, verification and implementation of industrial promotion projects have improved and their activities have adhered to national and local industrial promotion programmes, fanning the growth of industrial and handicraft production.  It also admitted to shortcomings in existing industrial promotion activities such as the lack of regional connectivity in some projects, limited number of local collaborators, sluggish project implementation and slow funding disbursement. Some localities have ignored their advantages in sectors and products in their promotion plans.  At the event, southern officials and entrepreneurs asked the Ministry of Industry and Trade to open additional training courses for industrial promotion staff and popularise good practices so as to enhance promotion activities.  The ministry should also consider overhauling current related circulars and decrees and the Government should offer aid to industrial promotion activities in rural areas, they suggested. Unlocking the potential of meat and poultry exports Meat and poultry exports have remained weak over the past five years even though Vietnam’s farmers have been among the largest producers in Asia, according to official statistics of the Food and Agriculture Organization (FAO).  FAO figures released in 2010 showed Vietnam ranked second in the world in terms of the number of ducks, fourth for pigs, sixth for water buffalo and 13th for head of cattle. In the Asian region, Vietnam stood fourth after China, India and Indonesia.  The Department of Livestock Production (DLP) under the Ministry of Agriculture and Rural Development (MARD) in turn estimated that as of October 2014 Vietnam producers had roughly 328 million chickens and ducks and nearly 27 million pigs. However, statistics of the General Department of Customs showed meat exports were a paltry US$21 million in 2014, down 2.4% against 2013. Meanwhile, meat imports were more than nine fold that amount, exceeding US$194 million. “Vietnam primarily exports pork to China via border gates and the export figures are highly volatile,” said Chairman Nguyen Tri Cong, of the Dong Nai Livestock Association. Nai said the volume of pork exports is much too low considering the vast Chinese market and underscored the point that very little beef, chicken or duck products are exported to China. Previously, only the US Australia, Brazil and Republic of Korea (RoK) sold meat and poultry in Vietnam. However, the list of meat exporters to Vietnam has grown and now also includes Russia, France, Canada, Poland and the EU.   At a husbandry conference last year, Minister Cao Duc Phat of MARD asked provinces, exporters, producers and livestock farmers to resolve the problems associated with farm hygiene to get Vietnam’s meat and poultry exports up to speed.  Since then the topic of farm hygiene has been the subject of many conferences and workshops throughout the nation and MARD has begun implementing a pilot program for the period 2014-2018 focused on solving it. The pilot program is being carried out in seven localities that are considered the major suppliers of meat and poultry products for Hanoi and Ho Chi Minh City, according to a MARD spokesperson.   Director Nguyen Thanh Son of the National Institute of Animal Husbandry recently underscored the point that if Vietnam fails to establish hygienic farming areas to protect livestock and poultry from disease, foreign markets will remain closed for exports.  Lastly, Deputy Head Tong Xuan Chinh of the DLP said Russian meatpackers recently visited Vietnam to find suppliers of pork but because the farms failed to meet with hygiene requirements the contract was awarded to Thai producers. The Southeast Livestock Association has requested MARD to issue stringent health regulations and biosecurity measures to help ensure food safety and serve as the key to unlock the potential of meat and poultry exports. Cam Ranh port debuts on UPCoM The northern Hanoi Stock Exchange has seen the debut of Cam Ranh port, the second state-run port operator, coded as CCR on the Unlisted Public Company Market (UPCoM). On September 24, Vietnam National Shipping Lines’ Cam Ranh Port put 24.5 million shares on the trading floor at VND10,200 (US$0.47) each, equalling a total value of over VND245 billion (US$11.24 million). Foreign investors are eligible to acquiring half of the listed amount (12,005,890 shares). Being included in the government’s plan of equitisation, the port made its initial public offering (IPO) earlier in March, but sold out only 582,000 shares, 9.5 per cent of the amount offered then.  In April, CCR negotiated to sell other 5.7 million shares, but only 307,200 shares were purchased. Located in the central province of Khanh Hoa ’s Cam Ranh bay, the international commercial port has favourable natural conditions for the development of additional port services. In particular, it is located nearby the Cam Ranh international airport and is only 1.5 kilometres from the National Highway 1A and 3km from the north – south railway. The port has also been considered as an important waterway connecting Khanh Hoa with other central coast and south central provinces. The port runs a wide range of businesses, including cargo handling, warehouses and freight yards, cargo storage, shipping and road transport, a shipping agency, and a ship chandler, among others.  The Cam Ranh port’s initial chartered capital in 2015 stood at VND245 billion (US$10.88 million) and the company now plans to raise this to VND334 billion (US$15.32 million) by 2018. It is also targeting the revenue of VND137 billion (US$6.28 million) this year, rising to VND223.3 billion (US$10.24 million) by 2018. BID sailing with giants, ambitions on the horizon Hanoi-based Building and Infrastructure Development Company teamed up with Japan Construction Management Corporation and PricewaterhouseCoopers in order to increase its competitiveness and reach its ambition to become of Vietnam’s largest construction firm. Ministry mulls import tax on trucks There could be a 2 per cent to 20 per cent increase in import tax on various types of trucks, according to a circular drafted by the Ministry of Finance. The proposal was listed in the draft circular on revising import tax on trucks and spare parts, which has been sent to other ministries and sectors for their suggestions. Taxes levied on imported trucks are expected to be synchronously increased in the country, but still under the World Trade Organisation's ceiling level as Viet Nam has committed. In concrete terms, the finance ministry plans to raise the tax from 68 per cent to 70 per cent of value for trucks which are five tonnes and below. The trucks with a capacity between five tones and 10 tonnes may be levied import tax of 70 per cent, from the current 50. Trucks between 20 tonnes and 45 tonnes may be taxed between 25 per cent and 35 per cent, from the current 15 per cent and 20 per cent, respectively. As for special-use vehicles including refrigerated lorries, waste collection trucks, tank trucks and cement tankers, there may be a 20 per cent tax. The finance ministry said the tax increase was aimed at supporting and encouraging domestic automakers to strengthen production and assembling of special-use vehicles. In addition, the ministry has also proposed to apply preferential import tax on imported automobile spare parts. The ministry's proposal originated from a petition made by the TMT Automobile Joint Stock Company, in which the company said domestic automakers, who had imported spare parts for assembling, had to bear various expenses for investment, production and assembling. In particular, expense for assembling a production line was high, with slow returns on investment. In addition, the price of imported spare parts was higher than the complete built-up units (CBUs) due to strict requirements from the suppliers. The company had proposed to the finance ministry to increase between 10 per cent and 18 per cent in import taxes on CBU trucks, depending on the capacity of each truck. Statistics released by the Customs Office showed that Viet Nam imported nearly 75,240 units from early this year to the end of August, which was 101.7 per cent higher than the same period last year. China was the largest supplier of CBUs for Viet Nam in August, with nearly 18,900 units, a year-on-year increase of 167 per cent.  VN firms told to embrace new ASEAN community Companies have been urged to embrace the opportunities presented by the ASEAN Economic Community, which will take effect by year-end, and not be afraid of the challenges that a more competitive environment will bring. Speakers at the Viet Nam CEO Forum held in HCM City on Thursday said that the establishment of the AEC would create free movements of goods, services, investment, capital and skilled labour among ASEAN countries. Dr. Hans-Paul Burkner, chairman of Boston Consulting Group, said that local companies' advantages include understanding of their own market and consumers, and relations with suppliers. They also know how to interact with the government, and are flexible and fast in their operations. He advised domestic enterprises to identify their strengths and enter overseas markets only after establishing a strong position in the local market. Minister of Justice Ha Hung Cuong said businesses must comply with all laws and consult with lawyers. Vietnamese firms' competitive capacity and human resources must also be improved, he said. Tran Tuan Anh, Deputy Minister of Industry and Trade, said that domestic firms must change their mindset as the market was no longer just 90 million people in Viet Nam, but at least 600 million in ASEAN. Viet Nam had completed 94 per cent of its commitments for the AEC, he said, adding that it had removed 90 per cent of tariff lines on imports from ASEAN countries. By 2018, seven important tariff lines related to sensitive sectors will be reduced. This would have a strong impact on certain industries, including automobile, sugar and husbandry, forcing them to make more reform efforts, he said. Cao Thi Ngoc Dung, chairwoman and CEO of Phu Nhuan Jewelry JSC, said AEC would offer great opportunities if companies had the right orientation. Despite challenges, innovative and hard-working Vietnamese firms would find openings to exploit the vast market, Dung said. Delegates said the Government should create a sound legal framework to facilitate operation of enterprises. Canadian forum highlights VN Business opportunities in Viet Nam were highlighted during a forum Thursday in Toronto, which was attended by nearly 80 business professionals and a number of government officials. Vietnamese Ambassador To Anh Dung said in a speech that he believed now was a good time for Canadian businesses to co-operate with their Vietnamese counterparts, adding that Viet Nam would create the most favourable conditions for Canadian firms to do business in the country. "Viet Nam is an emerging market, with enormous economic potential," he said. "The country also has a large consumer market of nearly 90 million people, a young and skilled work-force and an attractive business climate." "Through Viet Nam, Canadian businesses can effectively enter markets in Asia-Pacific," he added. Toronto City Councilor Michael Thompson said Viet Nam was regarded as a high-priority international market with similar fields of interests and business skills. Toronto is currently home to about 35,000 Vietnamese, and the city established sister relations with HCM City in 2006. According to the Ministry of Industry and Trade, Viet Nam's exports to Canada have enjoyed positive growth over the past several years. The exports reached US$2.08 billion in 2014, up 35 per cent from the previous year. Major export items included textile and garments, seafood, computers and electronic components. This year, Viet Nam is expected to export $2.88 billion worth of goods to the market, a yearly rise of 40 per cent.  SCIC to offload Constrexim stocks The State Capital and Investment Corporation will sell all its stakes in the Vietnam Investment Construction and Trading Joint Stock Company – 11.7 million shares. The State Capital and Investment Corporation (SCIC) is now also the largest shareholder in Vietnam Investment Construction Trading JSC (Constrexim Holdings), with 44.5 per cent of the company's capital. SCIC will sell its shares for VND25,800 per share, giving the deal a value of VND300 billion (US$13.3 million). This price is 37.2 per cent higher than the company's share value on the stock market. Constrexim Holdings is now listed as CTX on the Ha Noi Stock Exchange. CTX yesterday rose 6.8 per cent to close at VND18,800 and has gained 9.6 per cent in the last three days. SCIC reported that 900,000 shares of the 11.7 million shares were already placed on the Ha Noi stock market for trading. SCIC is working with the Vietnam Securities Depository to transform these listed 900,000 into transferable shares. In the last four years, Constrexim Holdings earned low profits of VND57.8 billion ($2.57 million) in 2011, VND26.4 billion ($1.17 million) in 2012 and VND28.4 billion ($1.26 million) in 2014 due to the decline of the domestic real-estate market. The company's profit rose in 2013 with a value of VND110.5 billion ($4.9 million) after it sold its property projects. In the first half of the year, Constrexim Holdings earned VND1.6 billion ($71,100). But that figure does not include an undistributed net profit of VND94.3 billion ($4.2 million) and a share premium of VND145.5 billion ($6.5 million). BIDV official appointed to bond association Quach Hung Hiep, the deputy general director of the Bank for Investment and Development of Viet Nam (BIDV), was voted chairman of the Viet Nam Bond Market Association. The association was established in 2009 and has 56 members, including commercial banks, securities and insurance companies and fund management and financial institutions. It aims to foster the efficient development of the domestic bond market. Bond transactions have slowed since August following the central bank's move to devalue the dong. Industry insiders said recent fluctuations in the foreign exchange market would continue to impact investor sentiment in the bond market in the short term. The State Treasury alone plans to mobilise VND250 trillion (US$11.11 billion) worth of bonds in 2015 but has sold only VND96.47 trillion ($4.28 billion), or 38.5 per cent of the annual quota, as of September 23. IB Securities raises its ownership in MHC IB Securities Joint Stock Company (VIX) bought 1.2 million shares of MHC Joint Stock Company (MHC) to increase its stakes to 19.4 per cent in MHC. IB Securities conducted the sale last Monday to raise its ownership in MHC to nearly 5.27 million shares. During the trading session on September 21, total 12.5 million MHC shares were traded through negotiations at a ceiling price of VND18,000, worth a total of VND225 billion (US$10 million). At the beginning of this year, MHC doubled the company's chartered capital from VND135 billion ($6 million) to VND271 billion ($12 million) by selling additional shares for its current shareholders.  Ba Ria-Vung Tau to issue local bonds Ba Ria-Vung Tau Province plans to issue local bonds of VND1-4.5 trillion (US$44.4-200 million) to construct Phuoc Hoa-Cai Mep Road, Vung Tau Hospital and other projects. The provincial People's Committee will complete a detailed plan and calculate the budgets for the projects before submitting the plan for approval. At the moment, only a few local authorities issued bonds to raise capital for building projects in local areas such as HCM City and Da Nang. HCM City maintains stable economic growth Socio-economic development in Ho Chi Minh City in the past nine months continues to progress across fields, as reported at a regular conference in the southern hub on September 24.  According to the municipal People’s Committee, the gross domestic product (GDP) was estimated at nearly 650 trillion VND (28.6 billion USD), an annual rise of 9.1 percent.  Services accounted for 59.7 percent of GDP (up 10.3 percent) while industry and construction made up 39.9 percent (up 7.5 percent) and agriculture 1 percent (up 5.9 percent).  Retail and service revenue totalled more than 493 trillion VND (21.7 billion USD), an annual rise of 11 percent, and export turnover reached over 22.4 billion USD, down 5.9 percent over the same period last year due to the dwindling value of crude oil.  Exports to major markets such as the US, Japan, the EU, Australia, Singapore, and Russia have expanded, reducing dependence on China. Since the beginning of this year, the city has welcomed 3.2 million international tourist arrivals, an annual rise of 5 percent and fulfilling 68 percent of the yearly target. The sector grossed over 69 trillion VND (3.03 billion USD) in revenue, up 6 percent yearly.  The industry recorded 11.85 percent annual growth thanks to the expanded industrial production scale and the move to increase the proportion of processing and manufacturing industry while reducing the ratio of mining industry.  As of September 21, local authorities had granted new investment licenses to 404 projects worth 2.36 billion USD, up 29.9 percent in the number of projects and 2.1 times in terms of capital.  Additionally, 108 existing projects increased their investment capital to 640.7 million USD.  According to the municipal Department of Finance, the city collected over 200 trillion VND (8.8 billion USD) to the State budget, up 5.49 percent over the same period last year.  Chairman of the municipal People’s Committee Le Hoang Quan attributed the outcomes to the effective implementation of measures to improve the local business climate, curb inflation and overcome capital obstacles for enterprises.  He underlined stable economic development as a top priority for the city in the remaining months of this year.  He called on relevant departments and sectors to work closely with the State Bank of Vietnam to help businesses develop operations and expand markets, while prioritising infrastructure, inundation prevention and clean water supply projects.  The city will also concentrate on expediting planning, environmental protection and climate change adaptation projects while more effectively implementing social welfare policies, he noted. Binh Duong economy grows fastest in three years The economy of the southern province Binh Duong in the first nine months of 2015 grew 11.3 percent, the fastest year-on-year increase in three years, according to a report released by the provincial People’s Committee.  The report showed the industrial sector posted an 8.5 percent growth, the service sector, 15.2 percent, and the agricultural sector, 1.6 percent.  Most major economic indicators are on track to meet their yearly targets, it said.  The province’s industrial production value maintained a rising trend from the beginning of the year, reaching 152.6 trillion VND (6.9 billion USD), up 13.8 percent against the same period last year. Domestic businesses saw a 12.3 percent increase in production value while foreign ones, up 14.6 percent.  Notably, Binh Duong enjoyed a trade surplus of over 2.5 billion USD in the first nine months of 2015.  The province attracted 1.47 billion USD in foreign direct investment, a 27 percent year-on-year increase and 47.7 percent more than the yearly target.  Regarding the fulfilment of the tasks for the remaining months of the year, Chairman of the provincial People’s Committee Tran Van Nam asked departments and agencies to reform administrative procedures and improve competitiveness and foreign investment attraction while speeding up the progress of major projects. HAI Agrochem factory to have modern production lines HAI Agrochem Joint Stock Company (HAI) on September 24 launched the construction of an agrochemical production factory and its laboratory in the southern Long An Province's Xuyen A Industrial Park. Covering an area of 1.3ha, the factory will have a production capacity of 8,000 tonnes per year. The factory, considered to be the most modern in the region because of its imported production lines from Germany and Japan, will be built in two phases.  In the first phase, the company will invest 150 billion VND (6.67 million USD) in the production line of mixing, filling and packaging agrochemical products such as EC, SC, SL and GR, besides WG, as well as in a laboratory.  The first phase is expected to become operational by the end of this year. The second phase of the project will see further investment in plant protection products and fertiliser production lines in the 2016-20 period. HAI is one of the leading companies in plant protection products in Vietnam. It has a charter capital of about 1.17 trillion VND (52 million USD). In the first nine months of the year, its turnover reached 1.4 trillion VND (62.2 million USD), with pre-tax profit of more than 100 billion VND (4.4 million USD). BIDV funds Hanoi’s building project The Infrastructure Investment and Transportations Construction JSC (INTRACOM) and the Bank for Investment and Development of Vietnam (BIDV) on September 24 signed an agreement to fund the Intracom 8 building project in Hanoi. Accordingly, the project has a total investment of 1.5 trillion VND (about 68 million USD), of which BIDV pledged to invest 580 billion VND (26 million USD). Located in Vo Nguyen Giap avenue – Hanoi’s northern gateway from Noi Bai International Airport to downtown, it will comprise three Asian-styled towers of 39 floors with 1,036 apartments.  The building is hoped to be a highlight of the urban area project along the Nhat Tan-Noi Bai axis, which is expected to become a driving force for the development of the city’s northern region. Measures to develop environmental goods production sought Measures to promote development of commodity production and environmental services in Vietnam were discussed at a workshop held in Ho Chi Minh City on September 24. The development of goods and environmental services is yet to meet the domestic demand, said Pham Nguyen Minh, Director of the Institute for Trade Studies and Research under the Ministry of Industry and Trade, adding the country mainly imports machines and technologies. According to Minh, while environmental services such as wastewater treatment have contributed to meeting 30-35 percent of the environmental protection demand, the production of environmental commodities serving these activities has yet to develop. Only 15 out of 1,016 enterprises operating in the environmental industry specialise in producing commodities for environmental protection, with key products such as dust filter systems, incinerators, rubbish classification machines, he said. Experts to the workshop underlined the importance of commodity production and environmental services, saying that these are crucial issues debated in bilateral and multilateral negations and international cooperation. They also focused their discussions on how to boost trade liberalisation in the field, stressing that this is considered an effective supporting tool to realise Vietnam’s green growth goal, contributing to forming a new economic sector in the country.  It will also create a momentum to promote sustainable development and help increase opportunities to access technologies, equipment and environmental services with reasonable  prices, minimising expenses for environmental protection activities, participants said. The Government has enacted policies to foster the field. Orientations for the development of the field were included in the National Action Plan on Green Growth for 2014-2020, ensuring the fulfilment of national strategic targets on green growth for 2011-2020, with a vision to 2050.  Besides, the Law on Environmental Protection as well as plans approved by the Government, states the State’s incentives and policies, which aim to call on individuals and organisations to get involved in producing environmental goods and supplying services in the field. Work starts on concrete pile factory in Mekong Delta The Mekong Delta province of Bac Lieu began construction of the most modern concrete pile factory in the delta on September 24.  The Khai Long factory, worth 450 billion VND or 20 million USD, will produce large-diameter concrete piles and girders for the construction of the region’s key infrastructure projects, for example, the 300-megawatt Bac Lieu Wind Power Plant Phase III, the 300-megawatt Khai Long Wind Power Plant and Hon Khoai International Port.  The project is designed to produce 76 concrete piles and 16 concrete girders per day, using advanced technology from the Republic of Korea.  It is set to be operational before next June. Japan helps boost Dong Nai’s mangoes export Japanese experts have trained agricultural staff in the southern province of Dong Nai in a bid to raise the quality of mangoes for export to Japan.  The course, jointly conducted by the provincial Department of Agriculture and Rural Development and the Japanese AIC JSC, aimed to enhance the capability of local staff in the sector, said Director of the department Pham Minh Dao.  The staff members, hailing from the Centre for Agriculture Encouragement, the Department of Plant Protection and the district Offices of Agriculture and Rural Development across the province, were trained on mango growing and caring techniques including introductions to Japanese advanced technologies to preserve mangoes for export.  Mango trees, one of the key local plants, have been grown on more than 8,000 hectares, mainly in Dinh Quan, Xuan Loc and Vinh Cuu districts.  The province has encouraged local farmers to apply the Good Agricultural Practice (GAP) standards in growing mango trees.  It has worked with a number of local cooperatives and clubs to develop national brand names for five fruits, including mango.  Mango products from Xuan Hung commune, Xuan Loc district have been certified to meet VietGap standards.  The Dinh Quan cooperative, which manages more than 220 hectares of mango trees, is working with relevant bodies to meet VietGap standards, according to Trinh Dinh Quang, Head of the cooperative.  Vietnam and Japan have recently agreed to allow the presence of Vietnamese mangoes in the Japanese market, said Dao, adding that this will open up opportunities for mangoes from Dong Nai to enter other international markets. EVFTA imposes strict quality standards If Vietnam businesses want to take full advantage of the EU-Vietnam Free Trade Agreement (EVFTA) tariff reductions, they need to focus on complying with the rules of origin said Claudio Dordi at a seminar on September 25 in Ho Chi Minh City. Dordi, who is the Chief Technical Advisor of the EU-MUTRAP Project in Vietnam, said those rules must be complied with and require the development of supply chains and distribution channels in the EU. In addition, Dordi stressed Vietnam, as a nation, should concentrate on enhancing its national image for making quality products with proper attention to producing them in an eco-friendly, hygienic and safe manner. Textile and Garment Institute Director Nguyen Van Thong in turn echoed Dordi’s views and underscored the importance of complying with the rules of origin to receive the benefits of tariff reductions. Thong said clothing and footwear manufacturers have plenty of time to prepare for the implementation of the EVFTA and they should go the extra mile to ensure they strictly comply with EU regulations, technical criteria, product safety and origin of products. The EVFTA is expected to take effect in late 2017 or early 2018. Vietnam has agreed to liberalise 65% of import duties on EU exports from the day the deal comes into effect, and gradually eliminate the rest over a 10-year period. EU duties will be eliminated over a seven-year period. Some EU foods and beverages will only enter the Vietnamese market tariff-free after seven years.  Trade deficit hits nearly US$4 billion in 9 months In the first 9 months of this year, the country’s exports rose by nearly 10% to nearly US$120.7 billion while imports jumped by 16% to US$124.6 billion, pushing the trade deficit up to around US$3.9 billion. It was released by Dinh Lam Tan, deputy director general of the National Economic Issues Department (Ministry of Planning and Investment) at a meeting in Hanoi on September 25. The export growth was attributed to increasing export revenue of processed products, garment, wood, and telephones and components. Meanwhile exports of agri-forestry and seafood products dipped 10% due to decline of three key products – rice, coffee and rubber. Mineral exports fell by 45% because of sharp decrease of crude oil export value. Foreign direct investment (FDI) into Vietnam skyrocketed compared to the same period last year. By Sept 20, a total foreign investment value of US$17.15 billion had been poured into the country, up 53% against the corresponding period last year, of which around US$9.6 billion had been disbursed, up 8%. Korean firm to import Cao Lanh mango The Republic of Korea (RoK) Injae Corporation plans to build a processing and packaging factory in the Mekong delta province of Dong Thap for the export of Cao Lanh mango to Korea. The decision was made after the recent field visit to Cao Lanh mango planting areas by an Injae Corporation delegation. At a working session with Dong Thap province leaders on September 24, Injae Corporation representatives believed that Vietnamese mango will be much sought after in the Korean market. In the meantime, the corporation will import Cao Lanh mango through Vietnamese processing and packaging businesses. PwC Vietnam provides transaction advisory for e-GP project A contract on transaction advisory for the e-Government procurement project (e-GP) was signed in Hanoi between the Project Management Unit (PMU) under the Public Procurement Agency (Ministry of Planning and Investment) and Pricewaterhouse Coopers Vietnam Ltd (PwC Vietnam) on September 24. The e-GP project is implemented using the Public-Private Partnership (PPP) model. Nguyen Son, Director of the PMU and deputy head of the Public Procurement Agency said he was happy to partner with PwC to select investors for implementing the project in the next 15 years. PwC Vietnam General Director Dinh Thi Quynh Van said PwC will bring best resources and experts in all fields and call on potential investors. In addition, LeadCo Legal Vietnam will contribute legal knowledge to help make the project a success. Vinalines begins construction of seaport in Hau Giang The Viet Nam National Shipping Lines (Vinalines), on September 25, kicked off construction on the first phase of the Vinalines Hau Giang seaport in the southern province of Hau Giang. The seaport, part of the Hau Giang marine and seaport service project, is being built on 87.1 ha with total investment capital of about VND398.9 billion (US$17.72 million). It will have a 150m quay with a capacity of 1 million tonnes per year. It can receive vessels which have capacity of 20,000 deadweight tonnage.                The first phase will be divided into two stages. The first stage will be operational by October 2016, while the second one will be built in January 2019. The phase is scheduled to be operational by 2020. General Director of Vinalines Le Anh Son said the project would meet the demand of transporting goods through the province. It would be a modern seaport and marine service centre in the region, creating favourable conditions for the development of industrial parks and social economy of Hau Giang Province and Cuu Long River Delta. Vietnamese, Japanese firms launch building management company The Vietnam Glass and Ceramics for Construction Corporation (Viglacera – CTCP) on September 24 opened Visaho Joint Stock Company in the capital city. The new firm specialises in managing and operating large real estate projects. The company has been jointly established by Viglacera, Japan's Sankei Building Management Company, Viet Nam's Hoang Thanh Investment and Development Company and OWI Joint Stock Company. The firm has been established in response to the construction ministry's guideline that the development of urban areas and green and sustainable buildings should have international-level building management and operations. The Sankei Building Management Company is a subsidiary of the Sankei Building Group, which is involved in trade, investment and management of real estate projects in Japan. The company has been managing large projects in Tokyo and Japan such as offices, apartment blocks, hotels and workshops, besides hospitals and trade centres. They include Tokyo Sankei Building, Breeze Tower in Osaka Kita-ku, Tokyo Divercity and The Tower Osaka, besides Lefond apartment blocks, Grand Pacific LE DAIBA Hotel, Nishihara Hospital and 60 Nitori trade centres nationwide. Deputy General Director of Viglacera – CTCP Tran Ngoc Anh said Visaho was determined to build its brand in the management and operation of real estate projects in Viet Nam, in an effort to meet people's increasing demand for quality buildings as well as good building management. The company is expected to supply comprehensive and professional operations and management methods to real estate projects, creating a quality living and working environment. General Director of Visaho Samejima Shinichiro said the company would follow the Japanese style of operations, but one that is suitable to Viet Nam. It will supply services such as direct operations management, and consultancy, support and supervision of management services for buildings in Viet Nam. Chairman of the Real Estate Association Nguyen Tran Nam said the real estate market in Viet Nam was recovering with strong growth in transactions and suitable prices. Meanwhile, the flow of money was moving towards the real estate market. Deputy Minister of Transport Pham Hong Ha said the management, operations and building of a living environment in real estate projects was the concern of the entire society. The ministry has encouraged businesses to develop operational management in projects to increase the quality of housing services, and to improve the living standards of local residents in a manner that is suited to the country's culture. He said Visaho was one of the few businesses in Viet Nam that specialises in operations and management services for real estate projects. The company has been founded by experienced businesses and is expected to see good development in the future. CIEM reviews implementation of Resolution 19 The business environment has changed significantly since adoption but implementation has fallen short of expectations in many respects. On September 24 the Central Institute for Economic Management (CIEM) held a seminar to evaluate six months of the implementation of Resolution No. 19/2015/NQ-CP dated March 12, 2015 on improving the business environment and enhancing national competitiveness. The business environment changed significantly but there remain many shortcomings in the implementation of the Resolution. For example, the legal framework is still not unified and reforms failed to create confidence among the business community. According to Ms. Nguyen Minh Thao, Deputy Director of the Business Environment and Competitiveness Department at CIEM, as at September 23 about 98 per cent of enterprises had online tax declaration systems. The General Department of Taxation has cooperated with 33 banks to develop electronic tax payment services. Eighty-four companies have registered for online payments and about 71.3 per cent have paid taxes online. However, processing times have not fallen to the degree calculated by the Ministry of Finance. Enterprises noted a reduction of 20 per cent, or 110 hours, in the time for declaring and paying taxes. Ms. Thao added that enterprises have little faith in the policy changes so despite procedures being cut many still decided to complete them. Local-level implementation has also been poor due to the slow application of IT called for in the new policy. In administrative reforms to social insurance, the Resolution requires the time for payment be reduced from 335 hours to 49.5 hours a year. Vietnam Social Insurance has implemented several measures in recent years to reduce the payment time but is yet to reach the target of 49.5 hours. Similarly, reforms to customs procedures and the adoption of professional management in exports and imports have not improved despite the efforts of the Ministry of Finance and the General Department of Vietnam Customs to simplify procedures and facilitate online customs payments. Kinh Do Director buys 9.02 million shares Mr. Tran Le Nguyen, General Director and Deputy Chairman of the Board of Management at Kinh Do Corporation (Stock code: KDC) announced he has purchased 9.02 million KDC shares out of the 10 million recently registered for sale. The reason he did not purchase all of the shares was because the transaction time was short. It lasted from August 21 to September 18 under the order matching and agreement method. During this period the market price of KDC shares fell from VND26,500 ($1.18) to VND23,800 ($1.06). This means the minimum amount he spent on KDC shares was VND215 billion ($9.56 million). Mr. Nguyen previously held 16.91 million shares in KDC, accounting for 7.18 per cent. With this transaction he now owns 25.93 million shares, or 11.02 per cent. Shareholders related to Mr. Nguyen are Mr. Tran Kim Thanh and Mr. Tran Vinh Nguyen, his older brothers, who hold 276,000 shares (0.11 per cent) and 605,000 shares (0.25 per cent), respectively. Mr. Trang Quoc Nguyen, his younger brother, holds 561 shares (0.23 per cent).  Info about GM products unclear Many products made from genetically modified (GM) materials are available on the market but they lack detailed labels, heard a seminar on GM crops held by Thoi bao Kinh te Sai Gon on September 24. According to speaker Dr. Trang Quan Sen from Germany, products made from GM materials with a proportion of a mere 0.9% in Germany must have labels detailing what materials are used. Vietnam regulates a ratio of 5%, the same as in many other countries, while the U.S. does not have such a regulation. However, GM-related products on the local market have murky labels. Participants at the seminar expressed concerns that they might have consumed such products unknowingly.  According to a representative of a seeds company in HCM City, a farmer sells soybeans at VND20,000 per kilogram and earn no profit due to high farming cost. But consumers can easily find soybeans priced at VND10,000 per kilogram at markets. Most soybeans are imported and might be imported from the U.S. whose majority of soy farming areas is grown with GM crops, the representative said.  VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR