BUSINESS IN BRIEF 25/11 TISCO production expansion given new life The Office of the Government recently issued Announcement No. 375/TB-VCPC on the conclusions of the Prime Minister regarding the second phase of the suspended production expansion by the Thai Nguyen Iron and Steel Joint Stock Corporation (TISCO). The Prime Minister has requested TISCO negotiate with the China Metallurgical Group to resolve problems and determine the total investment of the project and actively prepare the most beneficial plan. He also directed ministries, departments, and banks to consider import duty exemptions on equipment to support the project’s construction as well as restructure TISCO’s loans, repayment terms, and interest rates so it may continue to implement the project. General Director of TISCO, Mr. Hoang Ngoc Diep, said that after receiving directions from the government it will liquidate the contract with its former contractor and repair deteriorated equipment in the suspended project, to ensure construction begins in 2016 and will be completed in 2017. The production expansion project had total investment of VND3.8 trillion ($172.3 million) and began in November 2007. Delays, however, led to an increase in total investment to VND8.1 trillion ($363.4 million) and construction then ceased in the fourth quarter of 2012 because of issues in its capital arrangements. Relevant units have supported TISCO to overcome the difficulties in capital and implement the project. At the end of January this year the Vietnam Development Bank signed a credit agreement with TISCO for loans of VND1.3 trillion ($60.9 million). In March the State Capital Investment Corporation agreed to contribute VND1 trillion ($44.8 million) and in June VietinBank officially signed a credit contract with TISCO for an additional loan of VND1.1 trillion ($49.3 million). The corporation plans to complete negotiations with bidders and seek comments from relevant authorities before signing contracts at the end of this month. Dispatch released pushing e-tax payments The Ministry of Finance (MoF) recently issued Dispatch No. 16132/BTC-TCT requesting cities and provinces implement programs that promote e-taxation services. Ninety per cent of businesses have registered to participate in e-tax services, according to the ministry, but actual payments made via the channel remain low. To reach the target of 90 per cent of enterprises making electronic declarations and paying taxes online by the end of the year, MoF asked local authorities to push enterprises to use e-tax services and directed commercial banks to provide guidance to local enterprises on how to do so. MoF also requested commercial banks to only accept e-tax payments from December. It also asked Departments of Information and Communications to monitor the deployment of the e-tax program between units and prepare a monthly statement for cities and provinces. $325 million in contracts inked at Lao Cai trade fair The 15th Vietnam-China International Trade Fair 2015 at the Kim Thanh Fair - Exhibition Center in northern Lao Cai province officially wrapped up on November 17. Held within the National Trade Promotion Program 2015, the fair was jointly organized by the Ministry of Industry and Trade and the Lao Cai Provincial People’s Committee and aimed at promoting the trade and export of Vietnamese products with potential and advantages, including farm produce and aquatic products. According to the Deputy Director of the Lao Cai Department of Industry and Trade, Mr. Hoang Chi Hien, the fair hosted over 150,000 visitors and saw sales totaling nearly VND20 billion ($896,860). There were also 15 economic contracts signed between Vietnamese and Chinese enterprises at the fair, worth a total of $325 million. Export contracts were worth $222.5 million, accounting for 68 per cent of those signed. This year’s fair featured over 750 booths, of which 520 showcased products from Vietnamese enterprises, 230 were booked by Chinese enterprises, and the remainder belonged to enterprises from Thailand, South Korea, Hong Kong (China), and Ghana. Various products were on display, including farm produce, aquatic products, furniture, handicrafts, machinery, and electronic products. Mr. Le Ngoc Hung, Deputy Chairman of the Lao Cai Provincial People’s Committee, said the fair also provided a venue for enterprises from Vietnam and China to seek partnerships and enlarge export markets, contributing to trade turnover via the Lao Cai - Ha Khau Border Gate reaching $5 billion by 2020 and making the border gate become a bridge between Southwest China and other markets in the ASEAN region. This year’s holding yet again promoted the significant role of the annual trade fair in boosting tourism and the trade and export of products between the northwest provinces of Vietnam and Yunnan and other southwest provinces of China along the Kunming - Lao Cai - Hanoi - Hai Phong - Quang Ninh economic corridor. There are currently 13 foreign direct investment (FDI) projects in Lao Cai belonging to Chinese enterprises, including the Ha Khau - Lao Cai 220KV electricity transmission line, the Seng Chung Ho hydroelectric project, and the Lao Cai Steel Plant. Korea Vietnam Show set for Hanoi The Korea Vietnam Show in Hanoi 2015 will be organized by the Korea Trade-Investment Promotion Agency (KOTRA) on December 2 and 3 at the Lotte Hotel in the capital. The event will connect 50 South Korean enterprises with 400 Vietnamese enterprises in areas such as cosmetics, food and beverages, textiles, consumer goods, medical devices, electrical items, and machinery, which are to see tax reductions or exemptions under the free trade agreement signed between the two countries. Vietnamese enterprise will also have chance to seek partners in the export of agriculture, seafood, and textile products. “Free trade between South Korea and Vietnam has opened up many opportunities for enterprises from the two countries,” said General Director of KOTRA Hanoi, Mr. Lee Kyu Seon. KOTRA Hanoi had already organized seven trade promotion events and three large-scale exhibitions in Hanoi in 2015. “We trust in and highly appreciate the potential of the Vietnamese market,” he added. The event is expected to see a cooperation ceremony between KOTRA and VinEcom, a Vietnamese e-commerce company, which will provide KOTRA Hanoi with a special space on the Adayroi website (the “Korea Zone”) where South Korean products from KOTRA Hanoi’s authorized merchants will be presented and sold. Authorized merchants are those who are introduced to VinEcom via KOTRA Hanoi and have already entered into an agreement with VinEcom over the sales of goods on the website. Sacombank to pay 2013 & 2014 dividends Sacombank has recently paid dividends for 2013 and 2014 to holders of common shares, bonus shares, and additional shares issued after the merger with Southern Bank. The amount of shares receiving a dividend account for 38.75 per cent of the bank’s charter capital prior to the merger, excluding 100 million treasury stocks. The dividend on common stock for 2013 has been set at 8 per cent and for 2014 12 per cent, bonus stock and treasury stock holders 10 per cent, and holders of additional stock 8.75 per cent. For shareholders who have deposited securities, the Vietnam Securities Depository (VSD) will allocate the dividend to the owner accounts of shareholders from November 17. Shareholders who have not deposited securities must present identity cards or certificates of business registration and referrals to receive certification of ownership at branches of Sacombank where they are registered, from November 23. CapitaLand secures bank guarantee for Seasons Avenue CapitaLand Vietnam has agreed to terms with HSBC Vietnam over a Facility Agreement and Bank Guarantee for its high-end Seasons Avenue project in Hanoi, marking the first agreement between the two on bank guarantees, which are now required under Circular No. 07 from the State Bank of Vietnam. CapitaLand is one of the leading foreign developers in Vietnam and has sold more than 3,500 units to date, according to Mr. Chen Lian Pang, CEO of CapitaLand Vietnam. “CapitaLand has consistently delivered houses to buyers before the contractual handover date,” he added: “This CapitaLand-HSBC partnership on the financial guarantee will help demonstrate that CapitaLand continues its commitments on timely handover to buyers and heighten the confidence of buyers towards Seasons Avenue. It also presents long-term business potential as we explore more partnerships with HSBC on new projects in the pipeline.” The agreement further demonstrates HSBC Group’s strategy of pivoting to Asia with a focus on ASEAN countries and also the bank’s commitment to take advantage of its international network to facilitate foreign direct investment into Vietnam, according to Mr. Pham Hong Hai, CEO of HSBC Vietnam. “The agreement today is the result of a joint effort between HSBC Vietnam, HSBC Singapore, and HSBC Hong Kong, with the common objective of delivering a quality solution that provides benefits to consumers in Vietnam,” Mr. Hai said. “We are also very proud that this is one of the first projects that complies with the guarantee requirement of Circular No. 07. We look forward to further cooperation with CapitaLand Vietnam on similar projects,” he said. Under Circular No. 07, property developers must obtain guarantees from eligible commercial banks as assurance of their financial obligations to buyers if apartments are not handed over. With project financing and bank guarantees in place, the interests of homebuyers at Seasons Avenue are fully protected and they have an assurance that they will receive their home on schedule and in line with signed purchase agreements. Seasons Avenue is a project jointly developed by CapitaLand and its partner, the Hoang Thanh Investment and Infrastructure Development Joint Stock Company (Hoang Thanh). Located in the new urban area of Mo Lao in Ha Dong district, Seasons Avenue has a total land area of 1.36 ha, a total gross floor area (GFA) of 196,000 sq m, and total investment of $170 million. It comprises four blocks of 40-41 storeys, called Spring, Summer, Autumn, and Winter. The ground floor and the fifth floor are reserved for a vast array of more than 60 facilities, such as an infinity swimming pool with city views and a wet playing area for children. Levels 2, 3 and 4 are reserved for parking and from Level 5 upwards are 1,300 apartments for sale. Apartment areas vary from 67 to 135 sq m with two or three bedrooms. All are designed intelligently to maximize natural lighting and ventilation. Vietjet holds interesting activities to celebrate HCMC-Seoul route On the occasion of launching its newest international route connecting Ho Chi Minh City with Seoul in Republic of Korea, Vietjet will hold a series of interesting and entertained activities including Flash-mob dancing on electric two-wheel bikes or a fabulous game named “Challenge yourself with a dice”. These activities will be held at Tan Son Nhat International Airport and Incheon International Airport as well. Moreover, passengers onboard also receive special gifts from the airline’s friendly flight attendants. The route is operated on a daily basic with 07 return flights per week. Flying time per sector is about 5 hour and 20 minutes. Flights depart Ho Chi Minh City at 00:15 and arrive in Seoul at 07:25 (local time). Return flights depart Seoul at 11:20 (local time) and arrive in Ho Chi Minh City at 14:50. Tickets can be booked at www.vietjetair.com (also compatible with smartphones at https://m.vietjetair.com) or at www.facebook.com/vietjetvietnam (just click the “Booking”tab) or at our call center 19001886 or at our ticketing offices and agencies in Vietnam and oversea. Payment can be easily made with Visa, MasterCard, JCB, AmericanExpress, and ATM cards issued by 24 Vietnam banks that have been registered with internet banking.  Emerging markets hold potential in real estate As an emerging market Vietnam is currently a hotspot for real estate growth, Mr. Stephen Wyatt, Country Head of Jones Lang LaSalle Vietnam (JLL Vietnam), wrote in a recent news release on real estate investments in emerging markets, with a focus on Vietnam. He touched on why Vietnam can be considered a hot spot and what risks and challenges there are when investing in emerging markets in Southeast Asia, including Vietnam. Vietnam is seeing renewed interest from foreign and domestic investors, he wrote. This can be attributed to its growing economy, a property market that has reached the bottom of the cycle, and the relaxation of foreign ownership restrictions. Vietnam signing a number of free trade agreements with the EU and ASEAN as well as the TPP further boosts the medium to long-term growth prospects. Interest rates and inflation have fallen significantly and stabilized over the last two years, which has led to an increase in development activity in the major cities of Ho Chi Minh City and Hanoi, with many domestic and foreign developers such as CapitaLand and Keppel Land increasing construction activity, encouraged by strong sales volumes in the last 12 months. While Indonesia grapples with relatively weak economic growth and a depreciating Rupiah, which forced JLL to downgrade its forecast for the property market in Jakarta in 2015, and Malaysia faces a backdrop of ongoing negative sentiment over domestic issues relating to the controversial investment fund IMDB and the instability of the Ringgit, Vietnam has been a hot spot for GDP, with economic growth driven by three factors: strong domestic consumption, strong private investment, and net export growth. From the CEIC data above, retail sales growth is accelerating to 15 per cent year-on-year in Vietnam while many other Southeast Asian countries are experiencing declining or negative growth. As an indicator of underlying consumer sentiment, recent retail sales strength reflects a positive outlook on domestic consumption that supports GDP growth. Emerging markets in Southeast Asia, including Vietnam, should be prioritized for investment more so than developed markets, Mr. Wyatt believes. He pointed out that investors are willing to take part in joint venture projects / club deals in these markets, where they team up with local developers that require capital support, in order to gain an early foothold in these markets, which will experience exponential growth in the future when their economies take off. Moreover, these emerging markets have underlying growth drivers that include population growth and accelerating urbanization rates, which investors and developers can leverage upon. Risks in emerging markets are also inevitable, however. In the case of Vietnam, potential hurdles an investor may face include restricted access to credit for real estate development, bureaucratic systems, and especially land disputes, which continue to affect the business environment and block the fast completion of real estate projects. These can be time consuming and costly. Red tape also surrounds land ownership, despite new laws being recently introduced to permit foreign ownership of property. Nonetheless, JLL Vietnam sees great potential in the long-term development of Vietnam’s real estate sector, and as the market becomes more mature and evolves from a frontier market into an emerging market the legal and bureaucratic framework will improve, which will lead to considerable upside in real estate. Bad debt drops to 1.6% at Eximbank Bad debt at Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) has dipped to 1.6% after a cleanup of its balance sheet, the bank’s vice chairman and general director Pham Huu Phu said. Speaking to the Daily on the sidelines of the signing of a Infosys Finacle core banking software installation contract on November 19, Phu said Eximbank sold VND2 trillion (US$89.2 million) worth of bad debt to Vietnam Asset Management Co. (VAMC) in the year to date. The bank has so far sold a total of about VND7 trillion worth of bad debt to VAMC since the debt trading firm came into operation. “Currently, bad debt accounts for 1.6% (of total outstanding loans) at Eximbank,” Phu said. “We have tried to clean up Eximbank’s balance sheet in the past time and I can feel relaxed now.” Eximbank had faced up VND2.144 trillion of bad debt as of the end of last year, 2.46% of the bank’s total outstanding loans. The ratio had plunged to 1.65% by September 30 this year. Eximbank’s risk provisions have surged from VND84 billion in late 2014 to VND332 billion. Eximbank shareholders have approved a target of VND1 trillion in pre-tax profit this year. The bank posted pre-tax profit of VND667.8 billion in January-September, way above last year’s VND69 billion which was less than 5% of the target approved by shareholders for all of 2014. Eximbank has five million individual and corporate clients. This is the third time Eximbank has replaced its core banking system. The new multi-phase project requires a total investment of some US$12.8 million. Vietnam to have first plasma fractionation plant An Phat Pharmaceutical and Medical Equipment Joint Stock Company on November 19  got an investment certificate to build what will become the country’s first plasma fractionation factory at Saigon Hi-Tech Park (SHTP). Nguyen Dang Thong, chief executive officer (CEO) of An Phat, told the Daily at the certificate award ceremony that the three-hectare plant would need over US$30 million in phase one and at least US$50 million will be added in phase two. Thong said Italian firm Kedrion S.p.A, a world leader in six plasma fractionation, is the project’s technology transfer partner. All engineering design and machinery of the project will be supplied by Germany’s GEA Diessel. The plant is scheduled to start producing albumin and other plasma derivatives from the first quarter of 2018. The domestic company wants to develop the plant under GMP-EU standards with an annual minimum fractionation capacity of 300,000 liters of plasma derivatives including albumin and immunoglobulin meeting European pharmacopoeia standards. Thong said An Phat’s plasma derivatives would be sold at lower prices than similar imported products. Thong said Vietnam now has to import 100% of plasma derivatives worth about US$50 million annually. Therefore, the plasma fractionation factory will meet demand of hospitals and help blood centers in the country collect and preserve surplus plasma. On the same day, USM Healthcare JSC received an investment certificate to develop a center for biomedical research and technology transfer at a cost of VND79 billion (US$3.52 million) at SHTP. The center is scheduled to get off the ground later this year and come online in late 2017. USM will also support commercializing viable scientific and research projects for equipment and medical devices. Ben Tre coconut water to be exported to Europe, America About 90% of canned coconut water produced at Thanh Thanh Cong plant in Ben Tre will be exported to North America, Europe and a number of countries in Asia and North Africa. The plans were announced by Ben Tre Import Export Joint Stock Corporation (BETRIMEX) at an inauguration ceremony held on November 19 for Thanh Thanh Cong plant, which specialises in producing canned coconut water and coconut milk for export. The plant, which has a total investment of over US$20 million, covers 7.5ha at Phong Nam Industrial Cluster in Giong Trom district, Ben Tre province. Construction of the plant commenced in 2014 and was completed in June 2015 with a total production capacity of 37 million litres of coconut water and coconut milk per year. This is the first plant in Vietnam using UHT sterilisation technology, which helps retain product taste and freshness without any added preservatives. Speaking at the inauguration ceremony, Chairman of Ben Tre provincial People's Committe Cao Van Trong said that the plant will contribute to enhancing the value chain of Ben Tre coconut. The plant will consume around 200 million coconuts from Ben Tre per year and create jobs for more than 300 people, he added. Canned coconut water is produced entirely from natural coconut water with high nutritional value under the brand CocoXim with a volume of 330ml per can. Vietjet Air launches new domestic routes Low-cost carrier Vietjet Air launched three new air routes between Hanoi and Chu Lai (Quang Nam), Hai Phong and Cam Ranh (Khanh Hoa) as well as Vinh (Nghe An) and Buon Ma Thuot (Dak Lak), on November 19. For the Hanoi – Chu Lai route, the airline will operate four round-trip flights per week on Monday, Wednesday, Friday and Sunday with a total flight duration of one hour and 25 minutes. The Hai Phong-Cam Ranh route will operate five round-trip flights per week on Tuesday, Thursday, Friday, Saturday and Sunday with flight duration of one hour and 45 minutes. The Vinh- Buon Ma Thuot service has three round-trip flights per week on Monday, Wednesday and Friday with flight duration of one hour and 25 minutes. VietJet Air has offered 20,000 tickets at the price of VND199,000 (US$8) to meet the travel need of residents in the key cities. The tickets are available at its website www.vietjetair.com, mobile website http://m.vietjetair.com, its Facebook page www.facebook.com/vietjetairvietnam. Payment can be made with Visa, MasterCard, JCB, American Express, and ATM cards issued by 24 domestic banks that have been registered with internet banking. Bosch funds e-Scooter rental scheme Bosch Vietnam Co. Ltd. on November 19 announced a project to lease solar-powered bikes called e-Scooter by way of cooperating with local students in “The Green Challenge 2015” contest. Bosch will provide solar-powered bikes for rent and those students taking part in the contest will have to build confirmation and payment systems, charging stations and positioning devices for these bikes. UT-Salvator team from HCMC University of Technology won first prize in the contest while two  second prizes went to RTG from University of Science and Technology under the University of Danang and VGU from Vietnamese-German University in Binh Duong. Vo Quang Hue, managing director of Bosch Vietnam, said the company would carry out the project in three different localities to draw different experiences. The ideas from the three winning teams will be put together for further research with the help of experts from Bosch so that the company can come up with the most effective and feasible solution for deployment of the project, which is expected to be launched within the second quarter next year. The project will get total funding of over VND4 billion (around US$178,000), with VND2.7 billion of it used to aid the winning teams to study and implement the project. However, Bosch has yet to determine how many solar-powered motorbikes would be used for the project. Asked by the Daily whether The Green Challenge could be made an annual competition, Hue said the contest had been organized for the first time this year as a pilot scheme, so the company would have to wait until the project has had an outcome. The main purpose of the contest is to boost research on environmental protection and contribute to strengthening the capacity of future engineers, he said. During the event yesterday, Bosch Vietnam also celebrated the fifth anniversary of its software engineering research and development center in Vietnam. The center started operation in 2010 with 20 associates but now its workforce has grown to over 870 engineers, 90% of them Vietnamese. The company expects the center to have 1,100 associates late next year. Vinpearl keen on Saigon Safari project Vinpearl Joint Stock Company is seeking to get involved in the long-planned Saigon Safari project in Cu Chi District, HCMC. The project would require a total investment of US$500 million and cover over 460 hectares in the outlying district. This large ecotourism park is seen as a conservation center for endangered species in the country and the world. According to a Department of Planning and Investment report sent to the city government on Monday, the Saigon Safari would have nine areas, including an administrative center, a theme park, places for diurnal and nocturnal animals, an open zoo, a garden for animal collections, a convention center, and a museum. The department said Vinpearl has much experience in developing and operating amusement parks and resorts in the country. The company has pledged to raise sufficient funds to get the project done. In mid-October, Saigontourist Holding Company, Saigon Zoo and Botanical Garden Co. and Ben Thanh Corporation struck a deal to establish Saigon Safari JSC with chartered capital of VND300 billion to implement some components in phase one of the project. Saigontourist contributes 40% of the total capital and the other two the remainder. According to the department, the city government wants to pick a financially strong investor to carry out the project and relevant agencies to provide information and documents about the project for Vinpearl to prepare a detailed investment plan. Nearly VND600 billion has been spent on site clearance and compensation for 686 of 705 affected households and more than 400 hectares has been cleared for the project. The Saigon Safari has been far behind schedule due to slow site clearance. According to the city government, as of late 2007, 96% of the total area had been cleared to make room for the project but site clearance and compensation for the remaining 4% have come to a standstill, thus hindering work on the whole project and leading to some already-cleared land being illegally occupied by individuals. Mobil lubricants return to Vietnam Mobil lubricant brand of U.S. oil and gas corporation ExxonMobil has found its way back to Vietnam after a five-year absence. ExxonMobil has marked its return to the local market with the appointment of TAT Petroleum Vietnam as its authorized distributor of Mobil lubricants in central and southern Vietnam and PAN International Petroleum Joint Stock Company in the northern region. Meanwhile, Equator Company Limited will distribute lubricants for marine business in Vietnam. Mobil lubricant products are available for cars, motorcycles, trucks, buses, special-purpose vehicles, boats and industrial applications. Mobil products sold in Vietnam are imported, Yasser Al-Azzawi, Cluster Manager-Asia Pacific Fully Distributor Served Markets of ExxonMobil, told the Daily on the sidelines of a function held in HCMC on Wednesday to announce TAT Petroleum Vietnam, a subsidiary of Singapore-based TAT Petroleum, as a distributor of ExxonMobil in Vietnam. According to TAT Petroleum Vietnam, lubricant products are imported from factories in Singapore and South Korea. Vietnam is the fourth market that TAT Petroleum serves as an authorized distributor of Mobil lubricants. “Vietnam’s automobile market is now one of the world’s most dynamic markets for car maintenance and the manufacturing sector continues to grow at a breakneck pace,” Al-Azzawi said at the function. He said ExxonMobil has no plan to build a lubricant plant in Vietnam though he spoke highly of potential in this market. Over five years ago, many Mobil products sold in Vietnam were produced domestically. In late 2009, ExxonMobil transferred lubricant business in Vietnam to Total Raffinage Marketing (Total). Total could trade products bearing the brand of ExxonMobil in two years’ time. According to ExxonMobil, the stake transfer did not affect other business operations of the company in Vietnam at that time, including oil exploitation. HCM City to recall 3,290 hectares of land for projects next year The HCMC Department of Natural Resources and Environment has submitted to the city government a list of 491 projects to be implemented next year with 3,290 hectares of land needed. The department told the Daily that the city government should get approval from the HCMC People’s Council to recall land for the projects in 2016 in line with the 2013 Land Law. These projects are proposed by 24 districts. Of the projects, 293 are carried forward from 2015 with 1,360 hectares of land needed and 198 projects are registered for implementation next year with a total of 1,932 hectares. Article 62 of the law requires approval from people’s councils of provinces and cities for land withdrawals for projects to build offices of State agencies, parks, squares, monuments, memorials, new urban areas, industrial parks, concentrated areas for production and processing of aqua-agro-forestry products, among others. The department also unveiled a list of projects with change in land use purpose for less than 10 hectares of farming land and 20 hectares of protective and special-use forests. Households and individuals in nine districts have applied to change land use purpose for around 1,800 hectares of farming land. In particular, Hoc Mon District seeks to change land use purpose for 510 hectares, followed by Can Gio with 401 hectares, Cu Chi 172 hectares, Nha Be 50 hectares, District 9 with 100 hectares and Binh Tan 45 hectares. Can Tho property market still stagnant The real estate market in Can Tho City has remained in hibernation due to lackluster demand in the city and the Mekong Delta as a whole. Many land lot, apartment and townhouse projects in the city have seen dreary trading while loan disbursements for eligible beneficiaries of the VND30-trillion housing credit program of the Government have been as slow as ever. Speaking at a meeting between local authorities and the Department of Construction on Wednesday, Le Van Sy, head of the department’s economic construction unit, said 47 housing projects have been approved as per Directive 2196/CT-TTg dated December 6, 2011. However, the city government has revoked the licenses of 11 projects. Among the 36 valid projects, only 29 have been making progress and the remaining seven have virtually stalled due to financial constraints being faced by investors. Notably, the 29 active projects have also been struggling with poor interest over the years, he said. According to the department, the 29 projects provide the market with over 26,700 land lots with a total area of 3.57 million square meters and more than 6,500 houses on 918,000 square meters, including over 1,500 apartments of less than 70 square meters each, 553 others of over 70 square meters each and nearly 4,500 low-rise homes. So far, only 40-50% of them have been sold and investors have no plans to offload the remainder in near term. Customers have bought just 10,700 out of over 26,700 land lots and 3,600 out of 6,500 homes on offer. At present, there are over 8,800 land lots and 400 condos with a combined area of over 1,000 square meters recently completed, Sy said. The city has also developed four budget housing projects for students, two for workers and three for low-income people. However, local homebuyers still find it hard to gain access to the VND30-trillion home loan program. According to the central bank’s Can Tho City branch, only one organization and 309 individuals had approached this credit program by September, taking out over VND126 billion worth of loans. Changes proposed for Ba Son area development The HCMC Department of Planning and Architecture has proposed developing an urban-commercial complex in the premises of Ba Son Shipyard in downtown HCMC for a population of 10,700 people, up 5,400 people compared to the previous zoning plan. The department made the proposal in a revised zoning plan for the Ba Son area covering nearly 43 hectares submitted to the city government last week. The shipyard will be relocated to make room for the development of a multi-functional complex, also known as Saigon-Ba Son complex. In the zoning plan, the department suggested the Ba Son area to cover 17.62 hectares of the Saigon River’s water surface, down three hectares compared to the previous zoning plan, and 25.29 hectares of land, up three hectares. The Ba Son area is surrounded by the Saigon River in the east and southeast, Ton Duc Thang Street and Thu Thiem 2 Bridge in the southwest, Nguyen Huu Canh Street in the west and northwest, and Thi Nghe Canal in the north. The area for greenery, square and public works will be adjusted up to more than 69,200 square meters from 62,000 square meters previous as proposed by the department. The city government assigned the department to cooperate with the Department of Culture and Sports, and the authority of District 1 to develop Ba Son Shipyard into a revolutionary and historical museum of Vietnam. PM approves Lotus Cam Ranh Golf Course Prime Minster Nguyen Tan Dung has agreed to add the Lotus Cam Ranh Golf Course in south-central Khanh Hoa province to the National Golf Course Development Plan to 2020. He assigned Khanh Hoa to deploy the project in strict accordance with the Law on Investment and other relevant laws and regulations. The 90-ha Lotus Cam Ranh Golf Course will have 27 holes and be located along Cam Ranh Peninsula’s Long Beach, near Nha Trang. The course will be a part of the Cam Ranh new urban area for luxury resorts, covering an area of 794.45 ha. The Lotus Cam Ranh project meets the criteria and conditions for establishment under the provisions of Decision No. 1946/QD-TTg dated November 26, 2009, and Directive No. 11/CT-TTg dated April 18, 2012, from the PM on developing new golf courses. Vietnam is now home to 30 operational golf courses, with the majority located in the north and south and only four in the central region. Together with foreign investors many domestic enterprises have joined the race to develop golf courses. HCMC set to sell gasoline E5 citywide from December The Ho Chi Minh City Department of Industry and Trade is ready for selling ethanol gasoline E5 at all filling stations in the city from December 1, said a representative from the department on Saturday. The department is about to send a report to the city People’s Committee to implement the Government’s program on nationwide consumption of the blend on schedule, he said. Previously, it had sent a document to businesses asking them to ensure the Government’s consumption schedule of gasoline E5 and encouraging their filling stations to only sell it.  In case they are unable to do that, 50 percent of gasoline available at their stations must be the blend. The city’s People Committee is expected to meet with petrol companies on the December citywide sale of gasoline E5 by the end of this month. An official from Saigon Petrol Company said that all their five filling stations had installed E5 petrol pumps supplying 40 million liters a month. The Vietnam National Petroleum Group has expanded the blend’s sale at another three stations taking the total to eight in HCMC. Mr. Pham Van Khoa, deputy director of Petroleum Materials Joint Stock Company (COMECO), said that gasoline E5 had been sold at 19 out of its 32 stations in the city. However, the number of customers filling this blend is very limited accounting for one tenth of traditional gasoline consumers, he added. He proposed the Government to issue policies to facilitate production and trade of bio fuel to reduce difficulties for E5 gasoline businesses and attract more attendees. Information of E5 gasoline should be strengthened to raise residents’ awareness of bio fuel’s importance to energy security, environmental protection and sustainable development. Ministry adds Vat Yellow to import ban list The Ministry of Agriculture and Rural Development on Monday provided a supplement to the circular on chemicals and antibiotics banned from import, production and use for feed production in Vietnam. The revised circular taking effect on the same day adds cancer-causing substances Vat Yellow 1, 2, 3 and 4 to the banned list in breeding. In addition, Auramine used in textile and dyeing technology has also been listed as forbidden. Previously on November 12, an inspectorate from the Ministry of Agriculture and Rural Development and the Ministry of Public Security raided Truong Phu Company in Hai Duong city and found it use Vat Yellow for making cattle and poultry feed. On the spot, the inspectorate seized 14 kilograms of the substance and took eight samples of the company’s products, which all have been tested positive to lean-meat agent Salbutamol far higher than permissible level. They have decided to seal off over one ton of feed at the company and fine it for using Vat Yellow in breeding. Surging property supply portends ‘purification’ in HCMC, experts Basing on increasing supply sources in the real estate market in Ho Chi Minh City, experts have forecast the second ‘purification’ since 2008 in which businesses with weak financial ability, without strong brand names and good project positions will be eradicated. The city Department of Construction said it had approved 19 housing projects and assessed basic designs of another 18 this year with a total capital of VND9 trillion (US$401 million) and floor area over 600,000 square meters. Savills Vietnam reported that HCMC had 30,500 apartments at the end of the third quarter. Most of these were high class projects in center areas, for instance, Vinhomes Central Park provides 10,000 apartments, Masteri Thao Dien 3,000 apartments, Scenic Valley 1,200, Sarimi 6,500 and The Sun Avenue 1,860. The city is estimated to have about 57,500 apartments from 92 existing projects and other future projects by 2017. About 33 percent of the supply will be built in 2015-2016. Besides, investors have opened for sale about 930 villas and houses by the end of the third quarter taking the total to 1,680, a quarter on quarter increase of 47 percent and year on year increase of 142 percent. District 9 has replaced Go Vap to become the largest supply area of this segment. Most investors have developed their projects towards star standards, for instance, Khang Dien Company has sold villas of Lucasta bio project with the price swinging from VND7.8-25.5 billion (US$347,000-1.14 million). Information from National Assembly sessions show that the economy has still faced with many difficulties. Therefore, there is not much expectation from real estate market assistance policies. Director general of Novaland Group Phan Thanh Huy said that the real estate market has warmed up in all segments but investors have begun facing challenge from large supply. Experts said that projects with the price of VND3-5 billion (US$134,000-223,000) an apartment do not suit the demand of most customers. Investors of these projects have hoped to lure foreigners and oversea Vietnamese, who have mainly bought properties for rent. About 25 percent of high class apartments in the city have been purchased for this purpose. Chairman of the HCMC Real Estate Association Le Hoang Chau said that medium and small apartments with prices of around VND1.5 billion plays mainstay role to sustainable development in the real estate market. This segment meets real housing demand of a mass of residents. A major part of the city’s population of 8-10 million is young people in dire need of affordable houses. However investors have seemed not to be interested in low cost projects because of low profit. Therefore, high-class segment will be a playground of prestigious businesses that can chose good positions to implement their projects. Tough times in 30 years of development Despite 30 years of innovation, positive changes in its economy, and at one time bearing the tag of “Asia’s Next Dragon”, Vietnam’s position in global rankings has not improved to any great extent, according to a report presented by Associate Professor Tran Dinh Thien, Director of the Vietnam Institute of Economics, to the Vietnam Economic Forum: Summary of Economic Development over 30 years in Vietnam, held in Hanoi November 19. He pointed out that after 30 years of innovation Vietnam has made positive changes in economic growth, including high growth for several consecutive years, lifting millions of people out of poverty, introducing many improvements in economic restructuring, and opening up to global integration. From a poor agricultural country with a low average per capita GDP of only $98, Vietnam went on to join the group of middle income countries. GDP per capita in 2013 stood at $1,910, an increase of seven-fold compared with 2000 and 9.5-fold compared with 1986, when the “doi moi” economic reforms were introduced. Vietnam is now a signatory to many trade agreements of large scale and has attracted increasing amounts of foreign direct investment (FDI). The FDI sector has grown strongly and now accounts for nearly 70 per cent of Vietnam’s export turnover. “But Vietnam is still to escape from its low level of development,” Associate Professor Thien told the gathering. “This level is expressed in outdated technology, market economic institutions being hampered by backward thinking, and especially the country’s dependence on the Chinese economy,” he said. Vietnam’s economy continues to face challenges such as growth quality falling sharply, economic restructuring taking place slowly, and the development of the private sector remaining unsustainable. Low labor productivity persists and productivity growth is declining. These are barriers that have hampered Vietnam’s economic development. In 2014 Vietnam was still in the early stages of economic development, while Thailand and China were in the third stage of development and Malaysia had moved to the fourth stage. It’s no surprise therefore that Vietnam’s global ranking has seen little improvement. The improvements that have been seen are those commonly found within the group of economies in the early stages of development. Since 2010 Vietnam’s ranking has slipped from 59th to 68th. With the achievements recorded over the last 30 years, however, Vietnam has laid the platform to become a prosperous nation, Associate Professor Thien said. “Success will depend on choice of development path,” he concluded. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR