BUSINESS IN BRIEF 16/10 Single window system reduces customs clearance time Since its introduction in May, Vietnam's National Single Window (NSW) has significantly reduced the time required for customs clearance, helping import businesses save time and money on lengthy administrative procedures.  By the end of September, more than 3,800 imported motor vehicles were issued safety and environmental certificates through the NSW, according to the Vietnam Register under the Ministry of Transport.  Businesses have been instructed to submit forms online to be placed in a queue for inspection. After inspection, the vehicles were promptly given safety and environmental certificates.  "It used to take us 50-60 days to deliver our orders. Lengthy administrative procedures were a challenge for us in keeping customers. Many of them simply couldn't wait that long," said Nguyen Thi Thuy, a motor vehicle importer told the Hai Quan (Custom) newspaper.  She said with the NSW, her company no longer had to send someone to the border gate after acquiring required certificates to finish custom clearing as they were automatically sent online to customs authorities. The new custom clearance system for importing motor vehicles has been slashed from 20 days to two or three. Dao Thanh Tam, representative of a company which imports 15-20 construction vehicles on a monthly basis, said the speedy process eased the fear of being fined by customs for late customs clearance.  "The whole process takes only three days now. It used to take 15-20 days before, even longer if there were problems," Tam said, "As we had only one month to complete the paperwork, being fined by the authority was always a possibility." Businesses' representatives proposed that the NSW should be extended to connect with police to help customers register their vehicles.  The NSW has established connections with the ASEAN Single Window, a platform to co-ordinate customs administrations for the formation of the ASEAN Economic Community at the end of the year. RoK - Vietnam’s leading squid, octopus importer The Republic of Korea (RoK) is currently the largest market for Vietnam’s squid and octopus exports with 37.7 percent of the total share, according to the Vietnam Seafood Exporters and Producers (VASEP). By September 15, Vietnam had exported squid and octopus worth 110.3 million USD to the RoK, down 3.5 percent compared to the same period last year. Of the figure, frozen octopus accounted for 31 percent. The RoK market has seen positive growth in frozen octopus imports, though fresh and iced octopus imports have declined. From January-September, Vietnam exported about 292.7 million USD of squid and octopus. Japan is the second largest importer with a value of 71 million USD, accounting for 24.2 percent of the total share, followed by the EU and ASEAN with 13.8 and 13 percent, respectively. Thai hotel operator comes to Vietnam Thailand-based ONYX Hospitality Group has recently announced its entry into Vietnam with the signing of a deal with HB Group to manage OZO Hoi An, a 364-room beachfront resort in the New Hoi An City. The four-star hotel is slated to open late next year. Part of a master development consisting of a retail complex, dining and entertainment village, residential apartments, villas and recreational facilities, OZO Hoi An will have an all-day restaurant, a gym and other facilities. Peter Henley, CEO of ONYX, said at the signing ceremony on October 9 that "Vietnam is one of the region's fastest growing travel destinations and we are excited to have OZO Hoi An as part of our continuing expansion plans.” HB Group Chairman Trinh Thanh Huy said his group believes Hoi An is the most attractive spot for tourism in Vietnam. The new hotel is the first component for the whole new development. The new city anchored by OZO will play a big role in enhancing the destination's tourism status. The 400ha, 1.5 billion USD New Hoi An City's first phase will become operational at the end of next year with the hotel, over 200 apartments and 20,000sq.m of retail space. Since 2013 when the first OZO hotel opened, there are now five properties - Hong Kong (China), Pattaya and Koh Samui in Thailand, and Colombo and Kandy in Sri Lanka. Import-export turnover target reachable: official Vietnam could fulfil the import-export turnover target in 2015 if ministries and sectors continue to effectively deploy measures to support businesses with restructuring and trade operation management, Deputy Minister of Industry and Trade Tran Tuan Anh said at a conference in Ho Chi Minh City on October 12. According to the Ministry of Industry and Trade, export turnover is estimated at 165-166 billion USD in 2015, a year-on-year rise of 10 percent, while the import turnover is forecast to reach 171 billion USD, a yearly increase of 16.5 percent.  Deputy Minister Tran Tuan Anh called on enterprises to increase their competitiveness and study markets to adjust their trade activities appropriately.  He highlighted recent positive export signs such as Vietnam’s winning of rice export contracts with the Philippines and Indonesia, saying business associations, ministries and sectors should work together to optimise these opportunities.  According to business players, the most important issue is to develop the export market given Vietnam’s involvement in a number of free trade agreements.  He suggested ministries and sectors intensify the implementation of measures to improve the business climate, enhance national competitiveness and facilitate trade.  Chairman of the Board of Directors of the Hoa Sen Group Le Phuoc Vu proposed ministries and sectors design pragmatic programmes to help businesses limit risks, such as technical barriers in trade activities, while seeking to expand export markets to reduce dependence on several traditional outlets.  Sharing this viewpoint, Director of the An Giang Department of Industry and Trade Mai Thi Anh Tuyet asked the Ministry of Industry and Trade to play a more crucial role in supporting enterprises, especially agro-forestry-fisheries businesses, as well as boost key exports in the Mekong Delta in particular.  In the first nine months of this year, export turnover was estimated at 120.7 billion USD, a yearly increase of 9.6 percent. However, a reduction was seen in some sectors such as fuel and mining (down 45.5 percent), and farm produce and seafood (down 9.9 percent) due to fluctuations in the financial market, especially the increasing price of USD, and fierce global competition. State-owned enterprises perform well The Party Committee for the Central Business Block, which features Vietnam’s biggest State-owned companies, released figures that indicate that the block as a whole has made considerable strides in the past five years.  According to Bui Van Cuong, an alternate member of the Party Central Committee and Secretary of the Party Committee for the Central Business Block, the block’s umbrella Party organisation groups 35 affiliates with 5,561 Party cells and more than 80,000 Party members.  Cuong said corporations, companies and banks in the block are important tools for the Party and State to regulate and stabilise the macro-economy, ensure welfare and boost defence and security.  The central business block contributes one third of the total State budget revenue yearly and ensures jobs and stable livelihoods for over 1.3 million employees.  In the past five years, despite the impacts of the global economic recession and local economic difficulties, the corporations and companies completed and surpassed goals set by the resolution issued in the block’s first Party Congress.  The block’s total revenue reached 6.49 quadrillion VND (295 billion USD) with a combined pre-tax profit worth 608.5 trillion VND (27.7 billion USD), contributing 1.05 quadrillion VND (47.6 billion USD) to the State budget during the period.  The revenue for 2010-2015 increased by an average 23.55 percent each year compared with the 2007-2010 period.  From 2010 to 2015, the capital held by State corporations and companies increased 74.3 percent, reaching 1.18 quadrillion VND (53.5 billion USD), and the total assets increased 66.4 percent, amounting to 5.74 quadrillion VND (261 billion USD).  Cuong said enterprises in the block continued affirming their important role in the national economy but are facing challenges and growing competition, requiring companies to seek new and more effective management models while still ensuring the leadership of the Party.  The second Party Congress of the Central Business Block will take place from October 14-15. According to the official, from 2015-2020, the block will focus on five main missions on economic development and four key party-building tasks.  The first one of the five economic missions is to organise the successful implementation of enterprise restructuring goals, accelerate the application of science and technology, double productivity and improve effectiveness in production and business.  The second mission is to reform and improve business administration capability, develop a high-quality workforce and build a pool of business leaders with the capability to face new missions.  The third major economic mission is to proactively integrate into the international economy, build and implement development strategies and improve competitiveness to integrate deeper into the regional and global economy.  The fourth task is to ensure jobs, increase incomes and improve the quality life of labourers, actively protect the environment, raise safety and sanitary standards in workplaces and implement social welfare in line with Party and State policies.  The final and fifth mission is to research and recommend management and organisation models to separate State management and State capital representatives.  The first of four key party-building tasks is to reform and improve leadership capability in carrying out political and party tasks as well as improve the quality of ideology education, personnel and organisation work, public relation works and the leadership of political and social organisations.  The second task is to boost supervision and ramp up the fight against corruption, wastefulness and the signs of political, moral and lifestyle corruption.  The third is to improve upon the organisation model and continue reforming leadership methods of party organisations in State-owned enterprises and joint stock companies with State capital.  The fourth task is to research and recommend the functions and tasks of Party organisations in joint stock companies with State capital. Contracts worth over 9 mln USD signed at Vietbuild Up to 2,412 contracts worth more than 200 billion VND (9 million USD) were signed at the Vietbuild international exhibition fair on construction, building materials, real estate and interior decor, freshly closed in Can Tho city.  Besides, a number of foreign companies pledged to open representative offices in Mekong Delta city and Vietnam in general.  The annual event hosted more than 200 local and foreign enterprises with nearly 500 booths, helping firms seek cooperation and partnership opportunities.  Conferences and forums were also organised on the sidelines of the six-day fair. EVN focuses on completion of key power projects Electricity of Vietnam (EVN) is accelerating the pace of key power plant projects in October, including the 500kV Son La-Lai Chau line, 220kV Phan Thiet-Phu My 2 and Thuong Tin- Kim Dong lines, and the 110kV Muong La-Son La circuit 2. In the first nine months of 2015, most of the group’s projects were on schedule. Five out of seven turbines were connected to the national grid, with a total capacity of 2,654MW, including the thermoelectricity plants of Mong Duong 1, Duyen Hai 1 and O Mon 1’s second turbine.  The company successfully installed Huoi Quang Hydropower’s No 1 turbine rotor. Flood prevention works in 2015 for six hydropower plants – Huoi Quang, Lai Chau, Trung Son, Song Bung 2, Ban Ve and Ban Chat – were also completed. EVN has ensured sufficient coal stocks to supply the southern region’s thermoelectricity plants during the past months despite the closure of some coal mines in Quang Ninh province due to floods. The National Power Transmission Corporation (EVNNPT) completed 142 power transmission projects during the reviewed period. It also finished key power works to ensure electricity supply for Hanoi, including the 220kV Van Tri-Chem, Chem –Tay Ho lines and the 22kV Tay Ho transformer station. It also started work on another 113 grid projects. EVN is finishing administrative procedures to start work on electricity supply projects for the island commune of Hon Nghe ( Kien Luong District in the southern province of Kien Giang) and Cu Lao Cham Island in the central province of Quang Nam, while preparing to run electricity grids in Bach Long Vy island district (northern Hai Phong City) and Ly Son Island (central Quang Ngai province).  In the same period, the group began construction of transmission lines to 233 villages in 8 mountainous districts of central Nghe An provinces. Notably, the group’s construction investment value in the first nine months reached nearly 85 billion VND (3.8 million USD) with total disbursement valued at 68 billion VND ( 3.1 million USD). Flood control projects in city unappealing to private sector While the private sector is considered an important source of funding for coping with worsening flooding in HCMC, investors in the sector have shown little or no interest, heard a seminar on capital raising for technical infrastructure projects last Friday. Su Ngoc Anh, deputy director of the HCMC Department of Planning and Investment, said three major problems faced by HCMC are road overload, environmental pollution and flooding. However, funding for dealing with them is insufficient, Anh said at the seminar held by the department and HCMC Finance and Investment Company (HFIC). The city’s flood control projects need nearly VND100 trillion while official development assistance (ODA) loans and State capital meet one-third of the sum. Nguyen Hoang Anh Dung, deputy director of the HCMC Steering Center of the Urban Flood Control Program, said the program would need VND66.82 trillion in the 2016-2020 period. If the projects of the program are implemented, 550 square kilometers of low-lying land throughout the city would be free from inundation, he added. Public-private partnership (PPP) and private investments are vital for flood control projects in the city but it is tough to attract these two sources of money though Government Decree 15 on PPP investment came into force half a year ago. Investors attending the seminar said it was hard to identify sources of revenue from these projects.  In public infrastructure projects, investment consultants said, it is crucial to point out a rate of return on their investments and offer policy support.  According to Le Tuan, chairman and general director of Underground Space Investment Development Corporation, the PPP investment format makes it possible to raise capital for infrastructure projects but few PPP projects have been successful. Tuan said PPP investment policy should be reconsidered in a way that makes PPP investment easier. Luong Van Ly, adviser and head of investment and trade at law firm Viet Long Thang, said HCMC needed foreign investments for flood control projects but what such projects would benefit investors should be made clear.  “If the rate of return is below 15%, investors would be not interested,” Ly noted.  According to Dung from the center for the flood control program, the center has coordinated with relevant agencies of HCMC to seek capital to develop the drainage system in the past. However, he admitted, the outcome is not as good as expected since the public service sector did not generate high profit, making it difficult to appeal investors. Capital mobilization via the PPP model is new but guiding documents are not yet issued. Besides, financial mechanisms proposed by investors are neither appropriate nor feasible. ODA sought for anti-flood project in Bien Hoa The government of Dong Nai Province has called for relevant agencies to review and revise a zoning plan for the drainage system in the province’s Bien Hoa City to make it easy to get official development assistance (ODA) for a flood control project in the city.  Speaking at a recent meeting, the province’s vice chairman Tran Van Vinh said if the drainage plan adjustment is delayed, the province would not be able to gain access to Japan’s ODA for the project. Bien Hoa is looking for ODA funding for a wastewater treatment project implemented by the drainage center of the Dong Nai Department of Construction. This project needs around VND8.4 trillion (US$378.5 million) and the province plans to get a preferential loan from the Japan International Cooperation Agency (JICA) to finance the project. The center’s director Nguyen Anh Tuan said JICA and the center is in negotiations over a rezoning of the drainage system in the city. JICA proposed a total of 6.5 kilometers of sewer be installed along the existing street in Bien Hoa City, starting from Pumping Station No. 1 and going along Ha Huy Giap, Vo Thi Sau and Pham Van Thuan streets to Wastewater Treatment Plant No. 2. More wastewater treatment and collecting facilities would be built at a high cost if the drainage system in Bien Hoa City is developed in line with JICA’s proposal. Meanwhile, the drainage center suggested a plan to build a 3.6-kilometer drainage system along the Cai River as the cost is lower and the plan would help the province carry out urban rehabilitation projects by the river. According to the center, if the plan is executed, the wastewater and rainwater drainage systems in Bien Hoa will be separated, helping control flooding in the city effectively. Flooding has become a headache for Bien Hoa. Data of Bien Hoa’s urban management unit shows the southern city has around 17 areas that will be inundated when it rains. According to the unit, Bien Hoa City has seen a rapid pace of urbanization in recent years while the existing drainage facilities are too old to absorb rainwater. Experts: PPP may boost agri-insurance growth The public private partnership (PPP) model for the agriculture insurance sector may give a much-needed boost to the development of this sector and help reduce risks faced by farmers, said experts at a conference in Hanoi last week. After four years of implementation, the pilot agriculture insurance program has produced poor results with just around 300,000 farming households among a total of 11 million joining the program. Farmers are often vulnerable to risks such as natural calamities and diseases. Therefore, the Prime Minister signed Decision 315/2011/QD-TTg on March 1, 2011 on a pilot scheme for agricultural insurance to safeguard local farmers against risks. Under the decision, the Ministry of Finance will cover 100% of insurance premiums for poor families, 60% for near-poor households and 12% for organizations in 20 provinces and cities, with a focus given to paddy, livestock and seafood sectors.   Bui Thanh Hai, deputy head of the non-life insurance division under the ministry’s Insurance Management and Supervision Department, said over 304,000 farming households have bought agricultural insurance so far with a total insurance value of VND7.7 trillion (US$342.2 million). Insurance premiums totaled VND394 billion and compensation payouts VND712 billion. Hai said the pilot scheme covers a large area while natural disasters and diseases are different in different provinces. Insurers have little experience in attracting farming households to buy insurance while farming families are reluctant to buy. The agriculture and finance ministries have proposed the Government extend the pilot scheme for agricultural insurance to the 2016-2018 period. Ben Thanh to divest from non-core operations Ben Thanh Group has said it will withdraw its total investments of VND502 billion (US$22.6 million) from a dozen companies in non-core business areas this year. The state-owned firm under the HCMC government has taken back a mere VND156 billion from seven firms and will have to divest the remaining amount by the end of this year, including VND300 billion from Orient Commercial Joint Stock Bank (OCB). Ben Thanh Group’s deputy general director Nguyen Viet Hoa told a meeting with the Economic and Budgetary Committee of the HCMC People’s Council last week that it is difficult to find buyers of the group’s shares at OCB as investors are still cautious about the struggling banking sector. As Ben Thanh is one of OCB’s major stakeholders, the group is allowed to transfer its shares at the lender to an investor through an agreement between the two sides and send the transfer deal to the State Bank of Vietnam for approval, instead of putting up the shares for auction. According to Hoa, the group will use cash from its divestments to fund six projects in its core tourism and trade areas, including a Ben Thanh-Ho Tram resort worth VND800 billion and Cat Lai residential and port service complex. This year, Ben Thanh expects to gain revenue of nearly VND13 trillion, including about VND1.7 trillion from tourism services, VND10 trillion from trading activities, VND600 billion from real estate and VND680 billion from industrial production. In 2016-2020, the group will focus on projects in the fields of hotel and resort, auto trading, retail, food and beverage, serviced apartment and office-for-lease and amusement park. Ben Thanh looks to distribute 10-12% of the total autos assembled and imported by members of the Vietnam Automobile Manufacturers Association (VAMA) in the years to come. Earlier, leaders of 14 SOEs in HCMC signed a commitment to divesting a total of VND3.6 trillion from non-core operations by the end of this year. Those failing to realize their targets will be sanctioned. Huynh Trung Lam, deputy head of the HCMC Steering Committee for Enterprise Reform and Development, said 14 SOEs in the city would have to pull a combined VND3.61 trillion out of non-core operations this year. Garment, fibre, fabric exports hit nearly US$20 billion Vietnam’s garment, fibre and fabric exports jumped 9.88% year-on-year to nearly US$20 billion in the first nine months of this year, according to Vietnam Textile and Garment Association (VITAS). Of the figure, garment exports hit US$17.08 billion, up more than 10%, fabrics (US$750 million, up 45%), fibre (US$1.9 billion), non-woven fabrics (US$340 million) and other materials (US$658 million). In the period, TPP member countries imported US$11.250 billion worth of garment from Vietnam, a rise of 8.5% against the corresponding period last year. In the meantime, imports of fabrics and fibre to make products for exports and domestic consumption also increased by nearly 8% to US$12.3 billion. They included cotton (US$1.3 billion), fibre (US$1.14 billion), fabrics (US$7.5 billion) and other materials (US$2.4 billion). VITAS forecast that the garment and textile sector will import around US$2.95 billion worth of fabrics in the fourth quarter of this year and set a target of US$28-28.5 billion export revenue this year. Fake fertiliser plagues market State offices should take strong action against counterfeit and shoddy fertiliser producers, experts said at a conference on the restructuring of the local fertiliser production in Hanoi on October 12. According to Nguyen Hong Phong, general director of Tien Dong Joint Stock Company, said the state has issued a decree on conditions for the fertiliser production industry but in fact, production and quality of products has been inefficient even though the number of producers has increased quickly. Now, the local market has 1,000 fertiliser producers and traders with 10,000 brand names so it is difficult to distinguish between real products and counterfeit products, or between good and shoddy products. A complicated situation in the local fertiliser market had led to the development of counterfeit and shoddy products and the State offices had found it difficult to control these products, he said. Therefore, Phong said the Vietnam Fertiliser Association and State management offices should have solutions to improve the quality of fertiliser production. Products granted quality certificates should be listed on an official website of the fertiliser industry. According to existing regulations, the Ministry of Industry and Trade (MoIT) manages the production of inorganic fertiliser products, while the Ministry of Agriculture and Rural Development manages organic fertiliser products. But functions and tasks of the two ministries have overlapped, especially with regard to granting permission for fertiliser production, according to the association. According to Nguyen Hac Thuy, the association's general secretary, the fertiliser industry is one of the conditional production sectors, but many producers who have not achieved the required standards have been granted licences. Under the plan of developing the fertiliser industry from 2010 to 2015, Vietnam has 300 fertiliser enterprises, but in fact, the association said there are 1,000 fertiliser producers and traders, half of whom are located in HCM City. The local fertiliser industry had not developed following the industry's development plan, so the market had counterfeit and shoddy products, Thuy said. In addition, many producers still use out-of-date production technology and are unable to produce high quality products. The State should remove those producers to reduce counterfeit and shoddy products, he said. The industry should restructure production and business of products and help the local fertiliser market recover, he said.  Banks seek partnerships at international financial conference Six Vietnamese commercial banks are attending the Swift International Banking Operations Seminar (Sibos) 2015 which kicked off in Singapore on October 12.  Representatives from Vietcombank, BIDV, Vietinbank, Eximbank, SHB and Pvcombank are among the 7,000 business leaders, decision makers and experts from a wide range of financial institutions, multinational corporations and technology firms taking part in the event this year.  Sibos, a conference, exhibition and networking forum for the financial industry, is organised annually by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global provider of secure financial messaging services in the areas of payments, securities, cash management and trade.  Nguyen Thi Huong from the State Bank of Vietnam said it is a great opportunity for Vietnamese banks to access new banking products and services, as well as promising new partners.  Nguyen Trong Khoa, director of Vietcombank’s payment centre, said the bank is looking for new partnerships and hopes to learn firsthand about the latest payment solutions and trends from the United States and Europe at Sibos 2015.  According to VIETSWIFT, Vietnam ranked 58 th out of 210 SWIFT users worldwide, and saw its traffic grow 14 percent last year to approximately 10 million of sent and received messages. Of the figure, payment messages accounted for 74 percent, followed by overseas transfer messages that made up 9.64 percent.  Sibos 2015 is focusing on financial market infrastructure, cloud computing, network security and the application of ISO 20022, a new standard for electronic data exchange between financial institutions.  Attendees will also discuss business strategies and networking, while collectively shaping the future of the global financial industry.  The exhibition in the Sibos framework has brought together around 200 financial institutions, application and middleware vendors, system integrators, consultants and central clearing systems from around the world. Shrimp exports on the road to recovery The Vietnam Association of Seafood Exporters and Producers (VASEP) anticipate shrimp exports to the US will grow following a final decision by the US Department of Commerce (DOC) to lower the anti-dumping duty on frozen shrimp imports. “The ninth anti-dumping duty administrative review by the DOC covered the period February 1, 2013 to January 31, 2014 and the final decision reduced the average anti-dumping duty to 0.91%,” VASEP said. The average rate was down from the 0.93% rate announced in the preliminary results earlier this year according to VASEP and much lower than final result for the period of review (POR) 8, which was at 6.37%. VASEP buoyantly reported that with the reduction of the antidumping tax in POR9, Vietnam’s shrimp exports to the US will rise in the final months of 2015, after a fall by over 50% in the first eight months of the year. Shrimp exports to the US rose sharply in the first months of 2014. After the US DOC imposed a final tax rate of 6.37% (the highest so far) for POR8 from September 2014, shrimp exports to the US started declining. In the first eight months of 2015, Vietnam shrimp exports to the US reached US$370 million, continuing the downward trend on the back of competition on prices and supply with India and Indonesia. The US is Vietnam’s biggest shrimp importing market, accounting for over 20% of its exports. In 2014, shrimp exports to the US surpassed US$1 billion. Gov’t to issue bonds in international market The Government has agreed on a plan to issue bonds in international capital markets in 2015 as proposed by the Ministry of Finance, according to a Resolution. The Ministry of Finance is assigned to promptly finalize the Government’s draft Resolution on this matter and submit to the Prime Minister for issuance. Duration of Government bonds is stipulated in the Law on Public Debt Management and Decree No. 01/2011/ND-CP dated January 05, 2011. The Minister of Finance, authorized by the Prime Minister, shall represent the Government to report to the National Assembly for deployment permission from November 2015. To promote IT application and development, the Government agreed on the need for tax incentives to encourage strong development of IT and IT services especially technologies related to software and software services. The Ministry of Finance is assigned to preside and coordinate with relevant ministries to develop and complete a draft Resolution of the Government on tax incentives to promote the IT application and development, and submit it to the Prime Minister for issuance in October 2015. Regarding the Report on status and solutions to enhance Viet Nam’s labor productivity, the Government assigned the Ministry of Planning and Investment to consult with experts and scientists to make specific, objective and comprehensive analysis and assessment on the causes and current status of Viet Nam’s labor productivity. The Ministry was tasked to identify methodologies for calculating labor productivity consistent with practical conditions of Viet Nam, complete a Report on enhancement of Viet Nam’s labor productivity, a draft Resolution of the Government on tasks and solutions to improve the labor productivity, and report to the Prime Minister and the Deputy Prime Ministers in November 2015. HCMC to host Mobile Marketing Forum The MMA (Mobile Marketing Association) Forum 2015 will be held in Ho Chi Minh City on October 30. Leveraging the uniqueness of mobile phones, the 2015 MMA Vietnam Forum will focus on how brands can acquire and reach new customers with the brimming options in the mobile toolbox, including programmatic, location, video and more. Tech-savvy individuals of all persuasions use mobiles to stay connected with friends, social causes and their favorite brands, but there is no one-size fits all solution. Every customer segment exhibits differences in their digital behavior that marketers must be aware of and the Vietnam Forum will discuss such matters at the one-day conference. “Mobile is a fantastic platform to connect consumers and advertisers and create value for them in commercial ways,” said Mr. Kasper Aakerlund, COO of Group M & Co. and Chairman of the Vietnam Branch. “I see that as one of the key messages that the forum this year will be able to deliver.” Speakers will come from major enterprises such as Google, Facebook, Unilever, Comscore, Dentsu Agis, GroupM, Lazada, VPBank, and AirAsia. “In my opinion the best value for MMA Forum delegates is gaining a huge picture of the mobile marketing market, which is being strongly developed, and learning from many countries as well as Vietnam, especially when Vietnam is seen as one of the fastest growing markets for mobile marketing in the region,” Mr. Nguyen Anh Tuan, Managing Director of Adtima, said. The global SMARTIES 2015 awards will be presented on the night of the forum. The SMARTIES is the only global awards program created specifically to recognize best-in-class mobile marketing campaigns from around the world, honoring innovation, creativity, and success. E-commerce delivery woes eased Vietnam has great potential in e-commerce, according to IT experts, as one-third of the population regularly accesses the internet. After ten years of development the country’s e-commerce sector has the foundations and market for expansion. To develop fully, however, its logistics infrastructure requires attention. According to Mr. Nguyen Hoa Binh, Chairman of the Board of Management at PeaceSoft, warehousing and logistics in Vietnam continue to be a “nightmare” for the country’s e-commerce sector. Storage, packaging, and delivery account for half of the work in e-commerce, and the shortage of warehouses and unprofessional cargo management sees many goods go missing. Vietnam’s logistics costs are equal to 25 per cent of GDP; 1.7 times higher than the global average and more than double the figure in developed countries. Though high, the cost is yet to be optimized because enterprises must keep large amounts of stock and delivery times increase depending on the geographical distance between warehouses and buyers nationwide. To assist enterprises, the logistics company BoxMe has cooperated with PeaceSoft and others partners to launch the first e-commerce warehousing infrastructure in Vietnam. Individuals or enterprises operating in e-commerce can consign goods in the logistics center of BoxMe in Vietnam, which is operated by ViettelPost and Kerry Express. Sellers can manage and coordinate goods by mobile apps anytime, anywhere. The warehouse management system of the seller’s website is automatically synchronized with BoxMe through API programming. When an item is sold, the nearest BoxMe warehouse to the buyer will take the order and package and deliver the product in the shortest possible time, in some cases less than half the time taken previously. In case of failed delivery or where the customer wishes to return the products, the package is sent back to the nearest BoxMe warehouse. Individuals and enterprises using this logistics infrastructure do not have to pay registration fees but pay storage fees and incur a cost when an order is processed. “We joined BoxMe to resolve logistics problems for e-commerce companies in Vietnam,” said Mr. Cao Dinh Ngan, Deputy General of Director ViettelPost. “ViettelPost has four centers, in Hanoi and Ho Chi Minh City, and we are aiming to open centers in all 63 cities and provinces throughout the country. This will be an open platform to help individuals and enterprises conduct e-commerce more easily, with good delivery services and costs.” “BoxMe commits to helping sellers cut logistics costs by 30 to 50 per cent compared to maintaining separate warehouses, so they can focus fully on their marketing and sales,” said Mr. Han Van Loi, CEO of BoxMe. Goods are packaged according to industry standards and the delivery time has been shortened by half, which helps sellers increase service quality and therefore sales. According to Mr. Loi, BoxMe is implementing the program with free storage fees for the first six months for the first 500 registered sellers. Feathers to fly from TPP competition It’s generally agreed that Vietnam stands to benefit more than most from the TPP, with exports of goods such as clothing, footwear, and seafood expected to increase considerably. Recent articles from local media, however, illustrated the challenges the country’s poultry industry will have to address in a tougher competitive environment post-TPP. In an unprecedented move, companies and households raising chickens in Vietnam are planning to instigate an anti-dumping lawsuit against the US. The Southeast Livestock Association is completing procedures to officially sue US companies it claims are dumping chicken in Vietnam. The cheap price of US chicken has made Vietnamese producers stand up and take notice of the fierce competition that accompanies global trade. “Vietnam has been forced to accept that although products like garments and certain agricultural products will be the big winners in international markets, many other agricultural products will lose market share because their foreign competitors hold advantages in low-cost production,” said Mr. Murray Hiebert, Researcher at the Center for Strategic and International Studies (CSIS) in Washington. Mr. Au Thanh Long, Vice President of the Southeast Livestock Association, said it must launch the lawsuit because the local industry has faced an extended period of difficulty in competing with imported chicken from the US. Mr. Long’s calculations show that in the last 16 months its members incurred VND2.7 trillion ($121.5 million) in losses despite providing about 2.4 million chickens to the market every week. US chicken traders, meanwhile, said the accusations of dumping in Vietnam are unfounded. They argue that the Southeast Livestock Association is comparing the most expensive type of chicken in the US with frozen chicken thighs, which are exported in batches. President of the US Poultry and Egg Export Council, Mr. James Sumner, said that US chicken sells at a cheap price thanks to large-scale production and cheap animal feed, which accounts for 70 per cent of production costs. He also emphasized that breeding costs for US chickens are the lowest in the world. Chicken is among a few industries that will do poorly from the TPP, but many will do well and the country as a whole will be better off. Mr. Alan Phan, Chief Economist at VinaCapital, predicts that the TPP will add more than 30 per cent to Vietnam’s GDP over the next decade. Although they appreciate that many sectors will grow under the TPP, a number of experts contacted by Bloomberg remain concerned that some sectors will find it difficult to compete with their foreign rivals. People used to believe that Vietnam would never lose its competitive advantage in the agricultural sector due to its low labor costs, but the tale of imported US chicken is evidence that the agricultural sector, especially livestock, needs to change and change quickly. According to Mr. Tony Foster from Freshfields Bruckhaus Deringer LLP in Vietnam, the number of industries struggling will grow as more and more bilateral and multilateral trade agreements come into effect. Renault unveils three new models in Vietnam The world’s fourth largest automaker Renault released three new models at the Vietnam International Motor Show 2015 (VIMS 2015) that kicked off in Hanoi last Friday, offering customers more choices of affordable cars of high European quality. Renault’s Duster, Logan and Sandero Stepway have prices ranging from VND599 million to VND790 million per unit (VAT included), which a lot of local customers can afford to pay. Renault is showcasing the three models at VIMS 2015 with the concept “Inspire a new passion for life” in European style to imply a new passion for life to customers. All of them are equipped with high safety technologies such as Anti-lock braking system (ABS), Electronic Stability Program (ESP), Electronic Brake force Distribution (EBD) and Hill-start Assist (HSA), together with two front airbags, backup sensors and ISOFIX child safety devices. Featuring four-wheel drive (4WD) and a larger 2.0L gasoline engine with automatic transmission, Renault Duster is a combination of a sedan and a SUV, thus meeting the growing demand of Vietnamese customers for elegance and style. With the rugged, sturdy design and the configuration for crossing all terrains, the car comes with a competitive price of VND790 million per unit. Not only does Duster “change the game” of the segment, but it is also expected to spearhead the brand’s presence it Vietnam. Meanwhile, the Sandero Stepway hatchback, which is inspired by SUV models, is designed for young urban customers and is a family-friendly vehicle with generous space, comfortable seating and superior noise insulation. Besides, the model is powered by a 1.6L engine meeting EURO5 emission standards. Sandero Stepway also has a full range of safety features like Duster but comes with a more attractive price, VND620 million per unit. Logan, which costs VND599 million and is imported from Europe, is a family car that provides top-notch comfort and practicality for five adults. It is equipped with the same 1.6L engine with a five-speed automatic transmission and safety technologies. According to the automaker, Logan is as qualified as European cars, as spacious as Japanese cars, and as competitive in price as Korean cars, making it an ideal choice for Vietnamese clients who buy their first car or upgrade to a more spacious and safer car for family. Xavier Coiffard, general director of Renault Vietnam, said, “We are confident that the new models will give a significant boost to the Renault brand locally.” In addition to the three new models in Vietnam to widen the product line-up in Vietnam, Renault commits to long-term development in Vietnam by augmenting the premium range with more affordable products with an approachable dealership network nationwide. The fifth Renault showroom will be up and running in the central city of Danang this December, raising the number of Renault showrooms nationwide to five. Besides, Renault will expand its distribution network by opening two more showrooms in the southern and northern regions of Vietnam, according to Xavier Coiffard. Banks optimistic about 2015 performance Commercial banks have revised up 2015 profit growth forcasts, according to a survey on business prospects of credit institutions and overseas branches of Vietnamese banks. According to the survey conducted in September by the Monetary Statistics and Forecast Department under the State Bank of Vietnam, banks said factors influencing operations of the financial and banking sector have improved or turned more stable in 2015 against 2014. The survey showed that 77.7% of banks said their business conditions improved with 45.9% of them expecting business conditions to improve significantly. Banks raised profit growth to 9.73% from 8.89% in June’s survey. Of them, big banks, finance enterprises and finance leasing firms are the most optimistic.  Net income is expected to grow 16-20%. Meanwhile, income from proprietary trading is forecast to rise by 3.1%. Around 42-48% of banks said lending and deposit rates may drop by one percentage point per annum in the whole year compared to the end of 2014 while 26-28% said interest rates will be stable. 26-30% said rates may inch up but the average rate hike will not exceed 0.7 percentage point per year. Overall, they said deposit and lending rates will edge down 0.26% and 0.31% per year respectively towards the year-end compared to 2014. Bank expected total outstanding loans will increase by an average of 17.6% this year. According to a survey on 2015 wages carried out by Talentnet, a representative of human resources service provider Mercer in Vietnam, the banking sector was ranked third in terms of bonus giving. Foreign-invested banks had the lowest job-quitting rate at 8.8% while the retail sector had the highest rate at 42.1%. The 2015 survey on wages gathered answers from 520 businesses mainly in the fields of technology, consumer goods, pharmaceutical, chemical and production. Data about bonus giving was collected from over 211,800 employees. VietJet Air launches HCMC-Yangon service Vietnam’s low-cost airline VietJet Air on Friday commenced its new service between HCMC and Myanmar’s Yangon to meet growing demand for travel, trade and tourism cooperation between the two countries. The carrier conducts five weekly flights on Mondays, Wednesday, Fridays, Saturdays and Sundays. Flights depart from HCMC at 10:25 a.m. and Yangon at 13:00 p.m., and take two hours and fifteen minutes. Vietjet’s current fleet consists of 28 Airbus A320s and A321s with 190 flights a day. The airline has so far transported over 18 million passengers on more than 35 domestic and international routes. It now flies to Singapore, South Korea, Taiwan, China, Thailand and Myanmar, and plans to add more services to Asia-Pacific destinations. Though it began operations three years ago, the carrier has received an IATA Operational Safety Audit (IOSA) certificate from the International Air Transportation Association (IATA). In recent years, Myanmar has emerged as one of the target markets for Vietnamese enterprises. Vietnam is now the ninth largest investor in Myanmar with 33 projects worth US$688.6 million. Since 2011 when Myanmar opened its door to the world, Vietnam’s exports to Myanmar have grown nearly 67% per year on average. Two-way trade between Vietnam and Myanmar reached over US$480 million last year, with Vietnam’s exports to Myanmar totaling US$345.9 million, up 51% from the same period of 2013 and its imports from Myanmar amounting to US$134.8 million, up 9.1% year-on-year. This year the two countries look to bring two-way trade to US$500 million. The Reverie launches its best address in Ho Chi Minh City Times Square building has opened its doors to unveil its best address of luxury hotel and serviced apartments in Ho Chi Minh City. Times Square has opened its doors to unveil the 39-storey property to the public. The building includes luxury hotel and serviced apartments - The Reverie Saigon and The Reverie Residence with the highlight of the hotel’s Suites which has been highly anticipated amongst the local and international communities. The 39-storey property stands at the heart of the city on two of the most prestigious streets, Dong Khoi and Nguyen Hue. Through floor-to-ceiling windows, the building presents unprecedented views from each office, apartment and hotel floor. The façade is an icon on the city skyline with curved glass-curtain wall and dynamic architectural lighting. According to the building’s chief architect Kent Lui, the opening of the luxurious property is highlighted as “The Best Address in Saigon.”  VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR