BUSINESS IN BRIEF 30/10 Consumer lending surges on high demand Banks and finance companies in HCMC have reported a pickup in outstanding consumer loans in the past three years, driven by high demand of individual customers. Speaking at a workshop in HCMC on Tuesday, Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch, said local banks and finance firms have focused more on consumer lending and related services. In the past three years, consumer loans have tripled those in the 2011-2012 period to around VND80 trillion (US$3.58 billion), accounting for 6.8% of total outstanding loans. Of the figure, secured credit made up 17.5-17.6%. Consumer loans are expected to continue growing given strong demand and higher incomes of residents in the city. Banks have concentrated more on this consumer lending segment to help people overcome financial problems, boost credit growth and raise revenues, Minh said. Some local banks have also acquired finance firms to speed up consumer lending. Statistics showed domestic commercial banks offer interest rates of 9-11% per annum for consumer credit while foreign banks apply annual rates of 6-11%.   Meanwhile, finance companies in the city offer rates of 39-49% per year. Minh said the high lending rates are lawful as the central bank only imposes lending rate ceilings on short-term loans in a number of priority sectors. Finance firms are not allowed to mobilize capital from the public but from organizations via valuable papers such as bonds and treasury bills. The enterprises are only able to take out loans from the central bank via refinancing. At present, a bad debt ratio of around 5.1% is reported in the consumer lending segment, which is double that of the city’s banking system. As of September 2015, the bad debt ratio of the system had reached 4.2%, or 2.4% if bad debts at banks bought by the central bank at VND0 each share were excluded. Financial expert Le Xuan Nghia said the lending rate of 49% is high compared to the bad debt ratio of 5.1%. Therefore, the central bank should find solutions to lower lending rates at finance companies. For instance, the central bank should facilitate healthy competition among finance enterprises to reduce lending rates. Besides, their operations will be safer and more transparent if the central bank increases their supervision, Nghia said. Minh, meanwhile, suggested clients of finance companies read lending contracts carefully, focusing on debt payment and interest rate issues, to avoid misunderstanding and risks. The city has around 12 active finance firms. From now to the end of this year, relevant agencies will launch a probe into finance enterprises to reduce risks for customers and protect their legitimate rights. Binh Duong presents 38 investment licenses Thirty-eight firms were granted investment licenses by the Binh Duong People’s Committee at a special ceremony on October 23, with total capital of $531.82 million. Twenty-three are newly-registered projects with investment of $203.1 million and 15 are adding $328.7 million in capital to existing projects. In first ten months of the year investment in the province stood at $1.632 billion, representing 163 per cent of the annual target and an increase of 40 per cent year-on-year. There have been 165 newly-registered projects with investment of $910.98 million and 107 existing projects that increased their capital by a total of $721.77 million. The special ceremony was held to express the province’s appreciation of investments being made, according to the Chairman of the Binh Duong People’s Committee Tran Van Nam. All of the investments are long-term, he added. The province will effectively implement the socio-economic development plans of the government, he went on, and adopt flexible solutions to support enterprises. Measures will be introduced to improve the investment environment and simplify administrative procedures. The ceremony also witnessed the signing of an agreement between the DDK Group and Becamex IDC, in which the former will lease 80 ha at the latter’s Bau Bang Industrial Park to manufacture bicycle accessories and plastic items. SHS records impressive business results The Saigon - Hanoi Securities Joint Stock Company (SHS) has announced its business results for the first nine months of this year. Revenue reached VND303.5 billion ($13.59 million), an increase of 19 per cent compared with the same period last year. All of its major business activities recorded significant increases in revenue year-on-year. Brokerage brought in almost VND84 billion ($3.76 million), 51.1 per cent higher, while revenue from consultancy reached VND39 billion ($1.74 million), an increase of 80 per cent. Revenue from other activities stood at VND40.3 billion ($1.8 million), an increase of 97 per cent against the same period last year. Profit after tax in the third quarter was VND13.5 billion ($604,800), for VND42.3 billion ($1.89 million) in the first nine months. SHS has been the brokerage for a number of State-owned enterprise (SOE) equitizations. On October 22 it announced it would conduct the IPO of two subsidiaries of the Vietnam National Coal - Mineral Industries Holding Corporation (Vinacomin). Construction kicked off at MB Grand Tower The MB Group officially began construction of its new headquarters, MB Grand Tower, on Le Van Luong Street in Hanoi’s Cau Giay district on October 23. Speaking at the ceremony, Mr. Luu Trung Thai, Deputy Chairman of the MB Group, said he expected the building would prove its capacity in the real estate sector and be a highlight of the cityscape in Hanoi’s west. On an area of 2,220 sq m with expected investment of VND1.12 trillion ($50.5 million), the 25-storey building will be developed by MBLand Holding and be home to 2,000 staff. It is expected to be completed and handed over to MB in the fourth quarter of 2017. Recognizing the project’s importance, MBLand has selected two reputable and experienced consultants - Japan’s Nihon Sekkei and Vietnam’s Coninco - to implement the project. MB Grand Tower will be developed as a smart office that follows the latest criteria in global office design to efficiently take advantage of space and sunlight and save energy. The MBLand Real Estate JSC, under the MB Group, has been the developer of a range of projects, including MB Sunny Tower in Ho Chi Minh City’s District 1,   MB Grand Tower and MBLand Central Point in Hanoi’s Cau Giay district, and the Swiss Viet Hotel and Resort in Khanh Hoa province’s Cam Ranh Peninsula, among others. The company is also seeking opportunities to expand its business activities overseas. It is expected to establish representative offices in Japan and Australia and has recently worked with the UAE-based Vault Investment Foundation to establish investment cooperation in Vietnam and the UAE. EVFTA opportunities for Vietnamese businesses On October 26, Ho Chi Minh City hosted a seminar discussing future opportunities and challenges for local administrations and businesses as a result of the signing of the EU-Vietnam Free Trade Agreement (EVFTA). Those in attendance included Deputy Foreign Minister Le Hoai Trung, Ambassador and head of the EU delegation to Vietnam Bruno Angelet, and President of the European Chamber of Commerce and Industry in Vietnam Nicola Connoly. European and Vietnamese experts proposed specific measures to increase the awareness and ability of local administrations and businesses, who will play a decisive role in implementing the agreement. European businesses have worked with the administrations of many Vietnamese localities to enhance connectivity and create more opportunities for investment and business promotion throughout Vietnam. Vietnam losing small retailers to free trade Retailers throughout Vietnam should form affiliated chains to improve their competiveness with foreign rivals, said experts at a recent seminar in Hanoi discussing the opportunities and challenges brought about by free trade. Director Vo Van Quyen of the Ministry of Industry and Trade (MoIT) Domestic Market Department said the retail sector in Vietnam has experienced an average annual growth rate of nearly 16% over the past four years. “However, all of the growth has come from foreign retailers entering the market,” Quyen said and the domestic economy has actually experienced “a drop in the number of retail establishments”. As of the end of 2014, foreign companies had invested in 80 supercentres, 50 specialised small shops and 250 convenience stores in Vietnam Quyen said, adding that 10 retailers from Europe and Asia dominated the nationwide retail market. Quyen said the foreign retailers are having a profound effect on the economy due to their superior business experience and managerial skills and ‘they are better equipped financially to expand their infrastructure in Vietnam compared to their domestic counterparts”. Director General Phan Chi Dung of the Light Industrial Department in turn said the competitiveness of domestic companies is limited due to lack of access to credit, small production scale and lack of management experience. Most importantly, they simply are not professional in their approach to retailing and lack the skills to lay out detailed business and marketing plans he said, adding that few have taken the time to specifically identify a unique selling proposition that distinguishes them from their competitors. Another important part of the business plan Dung said is distribution, or in other words, discerning precisely how customers will buy from the company. For example, will customers purchase directly from the retail store on will they go online and purchase at the company’s website? Or will they buy from other distributors or other retailers? And so on and so forth. To create improved conditions for domestic retailers to develop their distribution system in the future, Quyen said the government should review and complete regulation-related distribution activities to protect rights and interests of Vietnam under international trade agreements. Quyen stressed the government should also provide support for domestic companies to improve the quality of their work forces and advertising, apply information technology and approach credit. “Retailers should form chain affiliations to increase their ability to more cost-effectively purchase through bulk buying, and benefit by advertising together, which also helps with developing brand recognition.” For his part, Central Institute for Economic Management (CIEM) Deputy Head Vo Tri Thanh said local retailers should seize the opportunities to expand their selling markets brought about by integration. They should accept competition and change from competing on price to competing in terms of quality of product Thanh said and “they need to understand that higher quality can only be obtained at a higher cost and in turn sales price”. “Retailers who only focus on selling at a lower price are doomed to failure,” Thanh underscored. Last but not least, Deputy Head Trinh Minh Anh of the National Committee on International Economic Cooperation's administration office suggested domestic retailers pay close attention to changes in the market and keep abreast of the short, medium and long term trends. Quang Ninh speeds up implementation of key projects The northern province of Quang Ninh is expediting a number of key projects to create breakthroughs in the investment climate and socio-economic development. The construction of the Bach Dang bridge and its connecting road is an example of such projects. Carried out under the build-operate-transfer (BOT) form and with a total investment of over 7.6 trillion VND (342 million USD), the bridge is one of the two main components of the Ha Long – Hai Phong highway project. The bridge will be over three kilometres long and 25 metres wide with four lanes allowing vehicles to travel at a maximum speed of up to 100 kilometres per hour. Once completed, it will contribute to completing a route connecting the key northern economic triangle, Hanoi – Hai Phong – Quang Ninh. It is expected to reduce the distance from Quang Ninh to Hanoi from 180 kilometres to 130 kilometres, and shorten the travel time from 3.5 hours to 1.5 hours. Meanwhile, the distance from Ha Long to Hai Phong will be reduced to 25 kilometres from 75 kilometres. Defining the bridge as an especially crucial project, the Ministry of Transports decided to establish a steering committee for the implementation of the project with active engagement from both localities. Once completed, the Ha Long – Hai Phong highway will open up opportunities for investors and businesses to promote trade activities at border gates. Quang Ninh has also been accelerating the Ha Long – Van Don expressway and upgrading the Ha Long – Mong Duong section of National Highway 18 with a total investment of nearly 14 trillion VND (630 million USD) since September this year. Chairman of the provincial People’s Committee Nguyen Duc Long said the projects help build and complete the infrastructure network of the province and shorten travel time from Hanoi to Ha Long city and the Van Don special economic zone. They also help promote socio-economic affairs in Quang Ninh and the northern key economic region in general. The construction of Van Don airport in Doan Ket commune, Van Don district worth nearly 7.5 trillion VND (337.5 million USD) is set to be commenced shortly. The project will have one runway and a parking area for at least four Boeing 777 and Airbus 321 planes. The terminal is designed for two million passengers and 10,000 tonnes of cargo per year. Quang Ninh ranked fourth out of the seven provinces with outstanding economic management quality in the country in 2013, and ranked first in the field in the Red River delta last year, thanks to implementing strategic breakthroughs including administrative reform, human resources development and infrastructure construction. The decisive factor has been local efforts to improve the investment environment. Additionally, the province has put forth a number of policies to facilitate investment and overcome business difficulties. In 2015, the province has welcomed a number of major projects worth trillions of VND from both domestic and foreign businesses such as the Vincom Centre Ha Long and Vinpearl Ha Long invested by Vingroup, Ha Long ocean park by Sun Group, and Ha Long star tourism urban and entertainment complex Casino by real estate developer Nakheel from the United Arab Emirates. Transport links key to Northwest development Transport linkage has been identified as the key factor to further drive the Northwestern region’s social-economic development, according to delegates at a recent conference. Scientists, investors and local officials shared their opinions and solutions to fully tap the region’s potential at the conference on mechanisms and policies to boost connectivity in the Northwestern region that was held in Hanoi on October 24. According to Truong Xuan Cu, Deputy Head of the Steering Committee for Northwestern Region, the region has strategic importance in terms of national defence, security and external relations. However, it remains the poorest region in the country. He said besides objective reasons, the region showed many own weaknesses, such as slow administrative reform, poor management and a lack of strong mechanisms and policies to attract local and international resources for development. Deputy Minister of Transport Nguyen Hong Truong said transport infrastructure bears an extremely important significance and is a breakthrough factor in the region’s development. Despite the general improvement of the road network in the region and the completion of some big transport projects such as Noi Bai - Lao Cai Highway, the transport network has failed to keep pace with the region’s development, he said, pointing to the absence of connectivity among road networks, waterways, railways and aviation services. Participants at the meeting agreed that suitable mechanisms are necessary to attract investment in transport, with high priority given to highway routes connecting provinces of Lai Chau, Tuyen Quang, Ha Giang, Bac Kan, Hoa Binh and other provinces. Management and use of major waterways in the region should be improved, railway routes and existing airports needed to be upgraded, while new airports should be built in Lai Chau and Lao Cai to meet increasing transport demand, they said. Tourism is also another main point of discussion at the conference. Attendees took note of the region’s tourism, which has seen an increasing number of tourists and more diverse tourism services, but urged more investment in tourism infrastructure, tourism personnel training and linkage among localities in the region. Opportunities, challenges brought about by Vietnam-EU FTA examined Vietnamese and European experts pointed out opportunities and challenges facing local businesses and authorities once a free trade agreement between Vietnam and the European Union (EU) is signed while at a seminar in Ho Chi Minh City on October 26. Deputy Foreign Minister Le Hoai Trung said once it is inked, the Vietnam-EU Free Trade Agreement (VEFTA) will open up numerous opportunities for Vietnam, especially exports which are expected to profit from tax reductions. Vietnam needs to improve its business climate in legal and policy aspects to respond to new opportunities and challenges, he noted, adding that localities should actively learn about those facts, build business partnership, better policy effectiveness, and promote human resources preparations. The official underlined that his country and the EU signed the Partnership and Cooperation Agreement (PCA) on June 27, 2012, providing a framework for the comprehensive expansion of their cooperation. The two sides began talks on the VEFTA on June 26, 2012, and declared that they concluded the majority of negotiations on August 4, 2015. The EU became the second largest importer and trading partner of Vietnam last year. Seminar participants evaluated the potential and effectiveness of the VEFTA once it is signed and enforced while proposing concrete measures to enhance local authorities and enterprises’ awareness of the deal, since they are decisive to the successful implementation of the pact. As part of the event, European entrepreneurs met with their Vietnamese counterparts and authorities to boost connections and seek business opportunities in the Southeast Asian nation. Miriam Garcia Ferrer, Head of the Economics and Trade Section at the EU Delegation to Vietnam, said Vietnam is an important market of the EU and the bloc is also a market full of opportunities and challenges for Vietnam. The VEFTA will substantially benefit their peoples and business circles, creating a legal corridor for them to have regular dialogues and ensure business stability. At the seminar, the Vietnamese Foreign Ministry inked a Memorandum of Understanding on cooperation with the European Chamber of Commerce in Vietnam and the EU – Vietnam Business Network with a view to increase connectivity; promote European firm investment, trade and business activities in Vietnam; and help local companies access European markets. Budget value for 2015 higher than target The State budget value for 2015 will rise above expectations by 17.4 trillion VND (790.9 million USD) while the budget deficit is estimated at 31 trillion VND (1.4 billion USD), Deputy Finance Minister Do Hoang Anh Tuan told a press conference in Hanoi on October 26. The higher budget value is buoyed by a 6.5 percent economic growth and a low 1.5-2 percent consumer price index. Explaining the budget deficit, Tuan pointed to low fuel prices and import tariffs stipulated in a series of free trade agreements. To make up for this, the government asked the National Assembly to approve the minimal use of 10 trillion VND (450 million USD) divested by some State-owned enterprises. Additionally, up to 34 trillion VND (1.54 billion USD) worth of late corporate taxes will be collected, more than 5 trillion VND (225 million USD) of which was collected in the first nine months of this year. Tuan admitted that several companies are purposefully delaying tax payments for their own gains. The ministry also established five groups in charge of uncovering transfer pricing behaviours, he said. On public debts, Tuan said they account for 63.2 percent of the budget, inclusive of official development assistance for 2016, which is still within its limits. ISO 20022 helps Vietnam integrate in AEC The State Bank of Vietnam plans to apply the ISO 20022 standard – a universal financial industry message scheme – by 2019 to facilitate cross-border transactions of the banking system, especially when the ASEAN Economic Community (AEC) is formed by year’s end. Talking to Vietnam News Agency correspondents in Singapore on the sidelines of the recent SWIFT International Banking Operations Seminar (SIBOS), SWIFT Standards expert Alexandre Kech said that ISO 20022 is the latest standard system serving communications in payment, securities, investment and international trade. It can boost business and geographical integration, allowing numerous countries to have a common voice during transactions, he added. However, to promote the efficiency of the new scheme, Vietnam should reform its cross-border payment facilities to bring them on par with international standards. Alexandre Kech said that applying ISO 20022 will be an opportunity for Vietnam to facilitate the cross-border transactions of banks as well as importers and exporters while helping the country become a leading ASEAN market. ISO 20022 is an international standard that defines the ISO platform for the development of financial message standards. Its business modelling approach allows users and developers to represent financial business processes and underlying transactions in a formal but syntax-independent notation. Vietnam, DPRK eye economic-trade expansion Minister of Industry and Trade Vu Huy Hoang had a working session with a delegation from the Democratic People’s Republic of Korea (DPRK) led by Minister of Foreign Trade Ri Ryong-nam in Hanoi on October 26 to discuss the future of Vietnam-DPRK cooperation. The two ministers agreed to appoint working groups to study and discuss plans for further expanding bilateral cooperation with a focus on economy, trade and investment. They also looked to boost cooperation in health care, education, science and technology, banking and transportation. According to Minister Vu Huy Hoang, trade ties between the two countries have been limited with many business opportunities going untapped over the past years. The two sides are scheduled to take part in a number of group discussions on cooperation in trade; support and heavy industries; and power, mining and chemical sectors between October 26 and 29. Statistics by the Ministry of Industry and Trade show that trade between Vietnam and the DPRK has shed about half of its value over the past three years, from 15 million USD in 2012 to 8 million USD last year, largely due to differences in economic mechanisms and difficulties in communication and payments. In 2014, the DPRK proposed establishing a special economic zone for Vietnam, which is hoped to be a symbol of their bilateral relationship. The DPRK also pledged to offer preferential policies to Vietnamese investors in the country. HCM City, Lam Dong, Binh Thuan seek to maximise tourism benefits Tourism officials from Ho Chi Minh City, Central Highlands Lam Dong province and central Binh Thuan province have reviewed their cooperation in tapping local tourism strengths for joint development over the past two years. The workshop on October 26 in Phan Thiet City, Binh Thuan also saw the attendance of representatives from the Ministry of Culture, Sports and Tourism, its local chapters, the Vietnam National Administrative of Tourism (VNAT) and travel agencies. Under the programme “Tourism development triangle between Ho Chi Minh City, Lam Dong and Binh Thuan from 2013-2018”, travel agencies have created various inter-tours that offer visitors mixed experiences with beaches and mountains, as well as a signature taste of cultural events in each locality. Chief among these are the tour namely “Sai Gon markets – Da Lat flowers – Mui Ne beaches”. Speaking at the workshop, Vo Hoang Tuyet Linh, Deputy Director of the Binh Thuan Department of Culture, Sports and Tourism, said that tours linking the three localities are among the most successful in which Ho Chi Minh City serves as a transport interchange for travellers to Binh Thuan and Lam Dong. It is estimated that about 60 percent of travel firms in Ho Chi Minh City regularly operate tours from the City to its partner localities. Saigontourist and Benthanhtourist, two major tour operators in the City, have provided holiday packages to Binh Thuan and Lam Dong for 48,000 and 45,000 visitors, respectively, since the beginning of 2015. Investments in the sector have also been fueled. Investors from HCM City are now funding approximately 240 tourism projects, worth over 30 trillion VND, in Binh Thuan and have added 600 billion VND in three extra projects in Lam Dong since June 2013. However, the workshop attendees have spotted some challenges, including the lack of close cooperation between local travel agencies, insufficient infrastructure for tourism and environmental issues. They urged for more support from the municipal and provincial authorities to call for investment, develop new tourism products and boost cooperation between the travel firms. Manufacturing, processing draws EU investors Processing and manufacturing has been Vietnam’s most attractive field to EU businesses who have invested in 573 projects with total capital of US$6.29 billion, accounting for 32 percent of their investment capital in Vietnam. According to the Foreign Investment Agency, at the next sectors are electricity and real estate. 23 nations from the EU have invested in 1,688 projects in Vietnam with capital totaling US$21 billion so far. Five largest investors include the Netherlands, the United Kingdom, France, Luxembourg and Germany holding 82 percent of EU investment capital in Vietnam. Many banks increase bonus interest rates After the latest increase in September, many commercial banks have continued lifting their bonus interest rate by 0.2-0.5 percent for long terms and provided promotional programs to lure depositors. VietCapital Bank has raised the reward rate by 0.2 percent for term above six months taking it to 6.5-6.8 percent a year for 7-11 month terms. Last week, Export Import Bank lifted the rate by 0.1-0.5 percent for terms of above 12 months. The highest rate is 7.5 percent per year for 13 month term now. Terms of 24-36 months have seen it up to 6.6-6.8 a year.  The bank has also presented customers depositing from VND30 million and more. Vietnam Technological and Commercial Bank has increased the rate by 0.2-0.4 percent in Vietnamese dong for terms of three months and longer, hitting 6.25-6.35 a year to 12-13 month terms. The highest rate touches 6.45 percent a year to 18 month term. Previously, Saigon Thuong Tin Commercial Bank had adjusted the rate to hit 7.55 percent a year for 13 month term and 6.4 percent for 24-36 months.  These banks said that their move aimed to supplement capital for loaning in the coming yearend season when businesses will need capital to meet increasing consumption demand. A leader of the State Bank of Vietnam in Ho Chi Minh City also said that the interest rate hike was to meet credit demand ahead of the yearend season. However, it has occurred in small joint stock commercial banks not large banks such as Vietnam Bank for Industry and Trade and Bank for Foreign Trade of Vietnam, who still keep the rate stable at 4.5-4.8 percent a year for 1-3 month terms, 5-5.5 percent for half a year term and 6 percent for one year term, he added. Villa projects grow attractive to investors Real estate developers have said a lot of individual investors are interested in their villa projects. Phu Long Real Estate Joint Stock Co. said it has sold 58 villas at Dragon Parc, which is part of Dragon City complex in HCMC’s Nha Be District. Each villa costs over VND7 billion (US$313,000). Phu Long launched the sale of Dragon Parc at the end of last year but in recent months there have been many successful transactions. Other firms have also started new sales or introduced new villa projects in the city. Saigon Construction Joint Stock Co. (SCC) has begun the fifth sale of PhoDong Village project in District 2, with 44 villas and townhouses offered at VND4.5 billion or higher each. According to a representative of SCC, the investor will sell 240 products through several sale sessions in the first phase. Since last September, according to SCC, around 90% of homes offered in each session have found buyers. Khang Dien House Trading & Investment Joint Stock Co. recently launched the sale of Lucasta high-class villa project in District 9 with 140 villas measuring 192 to 1,000 square meters. The real estate market in the southern province of Dong Nai has heated up thanks to new villa projects. The second sale of Dai Phuoc Lotus villa section at Dai Phuoc Lotus ecological tourism urban area in Nhon Trach District was launched last weekend. Jointly developed by VinaCapital and DIC Group, the project has 332 villas. There are 215 villas in the first phase sold, with 180 of them already handed over to clients. Meanwhile, LDG Investment Joint Stock Co. is developing The Viva City project worth over VND1 trillion in Trang Bom District, including over 2,000 villas and townhouses, and Sakura Valley project worth VND350 billion with 752 villas and townhouses. Le Holdsworth, sales manager at Dai Phuoc Lotus villa area, said half of the villa number in the first phase (around 100 units) was sold to property investors. Each client bought two or three villas and some even bought over 10. Villa projects with completed infrastructure will meet all demands of clients, whether they buy to live or to invest. To support investors, the project developer will help them find tenants in short or long term, she said. Investor buyers of other villa projects make up 30-50%. Japanese businesses survey investment climate in Vinh Phuc A mission from the Japan Chamber of Commerce and Industry (JCCI) made a field trip to northern Vinh Phuc province on October 28 to survey the investment environment in the locality. Yoichi Kobayashi, Chairman of the Japan-Mekong Economic Co-operation Committee under JCCI, who led the delegation, said that JCCI has 514 branches across Japan with 1.3 million members, of which 99.7% are small- and medium-sized enterprises (SMEs), making up one third of the country’s total SMEs. The Japan-Mekong Economic Co-operation Committee, established in 2013 with nearly 200 businesses, aims to promote economic, investment and trade co-operation between Japan and nations in the Mekong Sub-region, he said. The JCCI business members joining the trip are mainly operating in the support industry, purposing to survey the investment environment and infrastructure in some industrial zones in the province. Earlier, the delegation visited Ba Thien Industrial Zone II. At the meeting with local authorities, Kobayashi hailed Vinh Phuc’s favourable geological location and infrastructure, voicing his hope that there will be more Japanese investors to operate in the locality following the visit. Welcoming the visit by JCCI, Chairman of the provincial People’s Committee Nguyen Van Tri said that Vinh Phuc has been striving toward becoming an auto and motorcycle manufacturing centre. The province always welcomes investments in supporting industry, services, tourism and trade, he said, affirming to create favourable conditions for enterprises in general, and companies from Japan in particular to invest in these fields. With the motto, ‘Investors investing in Vinh Phuc are Vinh Phuc citizens, businesses’ success is the success of the province’, Tri said he hoped that the interest from JCCI, especially along with the Thang Long Industrial Park about to be built by the Japanese company Sumimoto, there will be more Japanese companies to invest in Vinh Phuc. On October 22, Vinh Phuc granted an investment licence to Sumitomo to build the 213ha Thang Long Industrial Park in Thien Ke and Tam Hop communes, Binh Xuyen district. The US$1.5 billion project is expected to help lure 79 Japanese projects and bring in employment opportunities for 25,000 local workers, while creating a breakthrough for the local industry. Currently, 26 Japanese businesses are investing in Vinh Phuc with a total registered capital of US$800 million. Vietnam, Cuba share reform experience Vietnamese economists presented Vietnam’s experience in its 30-year “Doi Moi” (reform) process and building a socialist-oriented market economy at a recent seminar in the Cuban capital city of Havana. The event, which lasted from October 26-28, gave Cuban delegates insight into Vietnam’s agriculture and rural areas, industrialisation and modernisation, State-owned enterprise restructuring, private economy, foreign investment attraction, public administrative reform, monetary policy and banking system. The Cuban side showed interest in financial and monetary overhauls and macro policies in Vietnam as well as the country’s settlement of complicated issues regarding the State budget and interest rates. Hailing the precise presentations of the Vietnamese experts, Marino Murillo, Vice President of the Cuban Council of Ministers, said Vietnam’s experience is useful for Cuba in revising its economic growth. Nguyen Xuan Thang, President of the Vietnam Academy of Social Sciences, praised the initiative to organise the seminar, describing it as pragmatic to actualise outcomes of the visit to Cuba by President Truong Tan Sang last September. The event was jointly held by the Cuban Ministry of Foreign Affairs and the committee on implementing the economic model update of the sixth Congress of the Communist Party of Cuba. It brought together Vietnamese senior experts and nearly 100 Cuban delegates, including ministers and the Central Bank Governor. On the fringes of the seminar, Marino Murillo held a meeting with Vietnamese economists to exchange experiences in macro-economic, financial and monetary policies. Forum highlights new modern payment solutions OpenWay Group and Vietnam Banks Association (VNBA) co-organised a forum on new trends in modern payment on October 28. The event attracted the participation of different banks, financial institutions, and businesses which have provided banking and financial solutions in Vietnam. Speakers came from the State Bank of Vietnam, VNBA, Russia, Kenya, Singapore and others. The speakers focused on drastic changes in modern payment as users have shifted from PC to mobile phones. One solution is modern payment Way4 which provides a foundation for the development of banks, telecoms and petroleum companies. Nguyen Manh Ha, Delivery Group Manager at Openway said OpenWay has been in Vietnam for ten years. Eight Vietnamese banks providing these services are VPBank (2005), SeABank, MB (2008), Maritime Bank (2010), Nam A Bank and ACB Bank. OpenWay has been honoured by Gartner and Ovum as the leader in worldwide banking and payment solutions, Ha added. Vietnam boosts cooperation with Italy’s Cassino city Vietnam’s Ambassador to Italy Cao Chinh Thien has visited Italy’s Cassino city in order to boost cooperation between Vietnam and the city. At a meeting with Cassino Mayor Giuseppe Golini Petrarcone, Ambassador Cao Chinh Thien introduced the achievements Vietnam has made in economy, politics, society and external relation in the past 30 years as well as the potential for cooperation between the country and the Italian city. The ambassador also thanked the city for its support given to Vietnamese students studying in the city. Mayor Giuseppe Golini Petrarcone said there is good potential for bilateral cooperation in tourism, culture and education. The ambassador and Cassino mayor agreed to boost the exchange of information to cement mutual understanding and facilitate cooperation in all fields, first of all in education and tourism. Cassino is the second largest city of Frosinone province and a major tourist destination. Around 70 Vietnamese students are studying at universities in the city. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR