BUSINESS IN BRIEF 4/11 Fuel prices fall following global trend The retail price of petrol fell by VND770 to reach VND17,230 (76 US cents) per litre yesterday, the Ministry of Industry and Trade (MoIT) said. The price of biofuel E5 RON 92 also dipped by VND881 to reach VND16,737 (74 cents) per litre, while the price of diesel came down by VND430 to reach VND13,510 (60 cents) per litre. The price of kerosene dropped by VND480 per litre to VND12,523 (55 cents), while that of mazut fell by VND316 per kilo to VND9,571 (43 cents). In addition, the MoIT and the Ministry of Finance said in a joint statement that they had decided to use the petrol price stabilisation fund at a rate of VND300 per litre. Taxes and fees for the products had remained unchanged. The ministry said the sharp decline was attributable to the plunging prices on the world market. The price of A92 petrol in Singapore has dropped over the past fortnight from $62.43 to $58.11 per barrel. The prices of diesel, kerosene and mazut are also on a downward trend. Statistics from the MoIT show that petrol prices have fallen nine times and increased six times so far this year. On October 19, the retail price for RON 92 petrol fell by VND136 to reach VND18,003 (80 cents) per litre. Binh Thuan completes Phan Ri – Phan Thiet irrigation project The first phase of the Phan Ri – Phan Thiet irrigation project, which uses Japan’s non-refundable official development assistance (ODA) capital, was completed and put into operation on October 31.  The main components of Phase 1, which are located in Bac Binh district, includes irrigation and drainage facilities, an overflowing dam, a water-collecting sluice with a design flow of 20.7 cu.m per second; a drainage gate and an operation building.  The canal system includes a main canal of 9.72 kilometres, eight level-1 canals with a combined length of 40.79 kilometres, 29 level-2 canals with the length of 83.28 kilometres and more than 200 level-3 and field canals.  The drainage system has nine canals with a combined length of 34 kilometres.  The project, which has a total capital of 1,547 billion VND (68.7 million USD) also includes the building of two model farming fields and two resettlement areas.  The entire system will supply water to 15,700 hectares of farming land in Phan Ri delta, which is home to 10,100 hectares of cotton, 2,730 hectares of rice and 2,870 hectares of fruit. Japanese firms seek investment opportunity in Nam Dinh Representatives from the Japan External Trade Organisation (JETRO) in Hanoi had a working session with leaders of the northern province of Nam Dinh on October 30 to learn about investment and trade opportunities in the locality. Head of the JETRO delegation Atsusuke Kawada spoke highly of the local authorities’ policies to attract investment, especially in agriculture and light industry. He said JETRO is supporting Japanese small-and medium-sized enterprises in investment activities in Vietnam in agriculture, service, manufacturing and processing. Nam Dinh’s provincial Party Committee Secretary Doan Hong Phong highlighted the locality’s potential and strength in many fields, affirming that Nam Dinh always welcomes investors to the fields of industrial park infrastructure development, agriculture, food processing industry and tourism.  The locality is accelerating the restructuring of its agriculture sector in order to fully tap its advantages and improve the quality and value of farm products, he said, expressing the hope to attract more investment to carry out the task successfully. Vietnam’s Top Brands 2015 announced A total of 170 domestic enterprises were announced “ Top Brands 2015 ” and “Qmix 100” winners at an awards ceremony in Ho Chi Minh City on October 31.  Co-hosted by the Institute of Economics Research (IER) and the Global Trade Alliance- Global GTA (UK), the Top Brands 2015 aimed at evaluating and recognising competitiveness competency of Vietnamese enterprises.  Accordingly, 150 businesses were recognized for having successfully adopted management procedures to develop the image of their brand, while 21 businesses have applied the Qmix 100 standards to increase their overall business competitiveness. The named enterprises included such big players as Tien Phong Plastic Joint Stock Company, Lam Son Sugar Joint Stock Cooperation, and Phu Quy Jewelry Joint Stock Company.  The award recipients must ensure the application of international standard-quality management system, the recognisability and the popularity of their brand, the credibility, trust and respect for the brand from society as well as overall management capacity in cooperation process and trade alliance.  The Top Brands event aims to support enterprises better their operations and sharpen their competitive edge in the domestic and global playing grounds. First oil flows from new rig in Te Giac Trang field Deputy Prime Minister Hoang Trung Hai witnessed the first flow of oil and gas coming from the new H5 rig at the Te Giac Trang (White Rhino) oil field, at a ceremony held in HCM City on October 30. Te Giac Trang oil field is situated in Block 16-1, based on a continental shelf about 100km southeast of the southern Vung Tau City. It is under contract and management of the Hoang Long Joint Operating company. The H5 rig will contribute up to 20,000 barrels of oil per day, helping to raise the total yield of the oil field to between 40,000 and 42,000 barrels per day. This means the oil field will reach an annual yield of some 11.56 million barrels. Deputy PM Hai appreciated efforts of the Vietnam Oil and Gas Group and Hoang Long for having put the H5 on stream 80 days ahead of schedule, and saving more than 37 million USD compared with the approved budget while implementing the project. He said the new operation will help guarantee national energy security and increase economic benefits, reflecting efficient co-operation between domestic and foreign partners. It would also help enhance competition capacity, labour productivity and operation efficiency for units in the domestic oil and gas sector, he added. Hoang Long announced commercial development at Te Giac Trang in September 2009. Prime Minister Nguyen Tan Dung officially adopted the H5 oil and gas development project in 2013, with a total investment capital of 324 million USD. Rice market gains momentum The rice market is expected to continue gaining ground in export, as the Philippines plans to import a million tonnes in early 2016.  Earlier, after winning bids to sell 450,000 tonnes of rice to the Philippines and a million tonnes to Indonesia, Vietnam has seen rice export prices grow continuously.  A range of Vietnamese rice products, which have been exported at prices lower than Thailand’s for a long time, are now valued at 10 to 15 USD more per tonne than the same Thai products.  Businesses expect the prices to rise further once Indonesia starts importing rice.  According to the Vietnam Food Association, by October 20 Vietnam had shipped 4.5 million tonnes of rice abroad, reeling in more than 1.9 billion USD.  Increases in exports push domestic business transactions, as local merchants collect more goods to cater to rice exporters’ demands.  Domestic prices also rose across the Mekong Delta. Rice in Can Tho costs 400 VND per kilogram more than it did the previous harvest. Vietnam’s handicraft products showcased in Laos Vietnamese enterprises are taking part in a handicraft products fair which is underway in Vientiane, Laos from October 30 to November 3. Vietnam and other ASEAN countries are invited to the fair, the 14th of its kind, as Laos wants to display their products and strengths in the field to prepare for the ASEAN Community (AC) which will be officially formed by end of this year, said Chairman of the Lao Fine Arts Association, Hansana Sisane.  The event features more than 550 booths, showcasing a wide range of products such as brocade, silk, wooden furniture, rattan and jewelry. A workshop aimed at providing information on the regional world markets for local handicraft trades is set to open during the five day event. In addition, a competition on handicraft products and a show of ASEAN countries’ traditional costume will also be held. Phu Quoc-Guangzhou air route to open in 2016 An air route from the southern resort island of Phu Quoc to China’s Guangzhou will begin in 2016, according to Huynh Quang Hung, Vice Chairman of Phu Quoc District People’s Committee in the southern province of Kien Giang.  Hung said the district, the Phu Quoc International Airport and a Chinese airline agreed at a recent meeting to launch the air route connecting Phu Quoc and Guangdong city in China’s southern Guangzhou province in January, 2016, with three flights each week.  The new service is hoped to bring more tourists to the island, which is known for its beautiful beaches.  The island district and the Phu Quoc airport are completing necessary legal procedures and make preparations for the opening of the new route.  In the past 10 months, Phu Quoc welcomed 750,000 local and international tourists, up 44 percent against the same period last year.  In the remaining two months, up to 85-90 percent of rooms in hotels and resorts have been booked and tourist arrivals are expected to reach 850,000 at the end of 2015, surpassing its year target. Vietnam meets five-year energy savings target The national target programme on energy efficiency has achieved satisfactory results in the last five years, according to officials attending a seminar organised in Ho Chi Minh City on October 30. Trinh Quoc Vu, director of the Department of Science, Technology and Energy Efficiency under the General Department of Energy, said that between 2011 and 2015 the volume of energy savings was equivalent to 5.96 percent of total energy consumption, while the national target set for the period was between five and eight percent. One of the difficulties in carrying out the programme was increasing the awareness of people about energy savings. Today, more than 85 percent of Vietnamese citizens know about energy savings, including technologies and investment funds. Vu estimated that energy efficiency in the industrial sector, which consumers more energy than any other sector, has the potential to increase between 20 percent and 30 percent. Industry takes up more than 46 percent of the total energy consumption nationwide, while transport consumes roughly 30 percent and the rest is divided between the service sector and household use. In order to exploit the potential, the World Bank and the Ministry of Industry and Trade are working on a 200 million USD project that will allow industrial enterprises to upgrade technology to save energy. "It is expected that the project will be carried out in the first quarter next year," Vu said. However, the project is just an initial step, because the capital demand for investing on energy savings in industry is huge. The project will give priority to enterprises that consume high levels of energy, including cement, construction material, steel, paper, chemical, food processing and other sectors. Huynh Kim Tuoc, director of HCM City Energy Conservation Centre, said HCM City's savings in the last five years contributed greatly to the national energy savings. "In 2011, to create 1,000 USD of GDP in the city, we had to use 203 kilos of oil. Now, five years later, the oil usage (equivalent to creation of 1,000 USD) has fallen by eight percent, a significant amount of energy saved," Tuoc said. HCM City contributes 21 percent of the city's GDP, which means the more energy HCM City saves, the better the country can reach its overall target. This year, 952 enterprises in HCM City deployed solutions to save 43.4 million Kwh of electricity and 461,508 litres of oil a year. The Ministry of Industry and Trade is creating a new programme on efficient energy usage that will be submitted to the government for approval. The target is to focus on solutions and energy efficiency models.-VNA Quang Tri seeks 4 billion USD investment The central province of Quang Tri intends to call for a total investment of 87 trillion VND (nearly 4 billion USD) in its 18 projects in key sectors at an investment promotion conference in November.  Speaking at a meeting with 20 investors on October 28, Nguyen Van Hung, the province's Party secretary, said Quang Tri had many sectors with great potential to attract investment, such as the processing, energy, trade and tourism sectors.  Hung said the province had called for several key large-scale projects with high feasibility, such as the Cua Tung-Cua Viet seaside resort, a golf course in Huong Hoa district and development of the Truong Son tourist area.  The province features a supportive business environment, offering a centralised administrative mechanism. It scored the highest points (39.74) on the Vietnam Public Administration Performance Index in 2014.  Nguyen Duc Chinh, Chairman of the provincial People's Committee, said it would apply the most preferential Government regulations for investors. In addition, the province will support investors by facilitating land clearance, offering labour training and building supporting infrastructure outside industrial parks (IPs) and economic zones (EZs).  Tran Bac Ha, Chairman of the Bank for Investment and Development of Vietnam (BIDV)'s Management Board, praised the province's potential.  However, Ha said its Provincial Competitiveness Index for the past five years was low as was the province's income per capita, whereas it had a high rate of poor households.  He pointed out that the province had seen difficulties in transport while neighbouring localities such as Nghe An, Thanh Hoa, Quang Binh and Thua Thien-Hue had the advantages of tourism, a port system and IPs.  He proposed that Quang Tri should focus on solutions for improving the effectiveness of investment, such as by developing the economic corridor connecting the country's East to the South and the West, building the La Lay border gate EZ and developing the Cua Viet-Cua Tung-Con Co Island marine tourism area.  BIDV will consider providing a 15 trillion VND (667 million USD) loan to the province for socio-economic development during the period of 2016-20. The loan would focus on three sectors with high potential: seafood processing, trade services and the energy industry.  A representative from Binh Ha Company said it had planned to invest in a glass plantation and cattle-raising project in the province, with total capital of 3.6 trillion VND (160 million USD). However, the company had not yet found a suitable location for the farm.  Vingroup said it had launched its projects in neighbouring localities, such as Thanh Hoa, Ha Tinh, Hue and Da Nang. The group has just begun examining options to invest in commercial centres, hotels and the agricultural sector in the province.- VietJet Air opens new domestic routes The low-cost carrier Vietjet Air will launch two new air routes linking Nha Trang to Hai Phong and Vinh to Buon Ma Thuot, announced the company on October 30. The air route connecting the central coastal city of Nha Trang to the northern city of Hai Phong will open on November 19 with ticket fares sold at 599,000 VND (27 USD). The airline will conduct five round-trip flights per week with flight duration of one hour and 45 minutes. VietJet Air will offer tickets at price of 299,000 VND (13.5 USD) for the Vinh-Buon Ma Thuot air route, which will be launched on November 20 with three round-trip flights per week.  Vinh is the capital and largest city in the northern central province of Nghe An. Meanwhile, Buon Ma Thuot is the capital and biggest city in the Central Highlands province of Dak Lak. Local firms urged to join global value chain Vietnamese enterprises have a big opportunity to enter the global value chain with several investors entering the country, Nguyen Mai, Chairman of Vietnam Association of Foreign Invested Enterprises said. Mai told the conference on connecting supply chain for support products held in Hanoi on October 29 that several international big groups such as Samsung, Intel, LG, Canon and Microsoft – Nokia expected to see Vietnamese companies joining their production chain and becoming their vendors. For example, Samsung Electronics Vietnam wanted to cooperate with local firms to provide spare parts for their production. "Demand for support industry development in Vietnam has been big as FDI inflows into the country has been on the rise," he said. Statistics from the Foreign Investment Agency showed that foreign direct investment (FDI) worth 19.2 billion USD poured into Vietnam in the first 10 months of the year, posting year-on-year 40 percent increase. He forecast that a new wave of high quality FDI inflow would come into Vietnam from the Organisation for Economic Cooperation and Development (OECD), especially from the United States after the Trans-Pacific Partnership (TPP) takes effects. He asked Vietnamese companies to be confident while investing in modern technologies and taking advantage of the government's preferential policies. Truong Thanh Hoai, Director of the Ministry of Industry and Trade's Heavy Industry Department, said the ministry has completed a draft decree on supporting industry development which they will be submitting to the government for consideration. The decree is expected to issue in the middle of next month. He said the most difficulties for Vietnamese businesses in cooperation with global groups in the support industry was with regard to limited capacity and technology with low competitiveness and dependency on imported material. Most of the domestic firms have produced simple products with low technology while big groups required three criteria of stable quantity, on-time delivery and suitable prices to join into their production chain. Sharing the ideas, Luu Hoang Long, Chairman of the Vietnam Electronics Industries Association said Vietnam's electronics industry has low added value despite increasing export turnover in the past few years. The sector's exports have surpassed that of crude oil since 2012, becoming Vietnam's key export staples. "The electronics sector has largely depended on contributions from FDI enterprises," Long said, adding that the firms accounted for over 80 percent of local market and 90 percent of export turnover, though the number of the companies was one-third of the total. He suggested that Vietnam should increase supply of spare parts for FDI producers, thus increasing added value and GDP. The government should create a consumption market for local support industry producers. The ministry should clarify on the list of support industry products which Vietnamese businesses could have advantages for development and provide them with support policies. Large-scale logistics centre to be built in Bac Giang Building a large-scale logistics centre is a focal mission of Bac Giang province by 2020, and the northern locality is rolling out the red carpet for investment in this facility, Vice Chairman of the provincial People’s Committee Duong Van Thai has said.   The logistics centre is expected to cover some 80 hectares in Dong Son and Song Khe communes of Bac Giang city.  It will be situated in the intersection of many arterial roads and near the province’s main railway station and Dong Son port, which is favourable for goods transport by inland waterways to northern coastal Quang Ninh province and Hai Phong city.  The centre’s location will also be conducive to road transport as it is 50km away from Hanoi, 60km from the capital city’s Noi Bai International Airport, 110km from the Huu Nghi International Border Gate contiguous to China, 70km from Cai Lan deepwater port, and 140km from Hai Phong port.  The facility will serve as the transit point for the flows of goods that follow the trans-Asia highway; the economic corridor of China’s Nanning city and Vietnam’s Lang Son province, Hanoi, Hai Phong city and Quang Ninh province; north – south roads; and roads in the northeastern and northwestern regions.  At a working session on October 30, Deputy Minister of Industry and Trade Tran Tuan Anh said the best possible conditions will be provided for Bac Giang to successfully build the logistics centre, which will help tap local advantages and fuel socio-economic growth.  He also asked local authorities to carefully examine the project to ensure its feasibility, make thorough land use planning, calculate the appropriate level of investment, and closely coordinate with investors to work out principles for project implementation. TPP’s impacts on investment attraction in Vietnam: seminar The impacts of the Trans-Pacific Partnership (TPP) on investment attraction and trade in Vietnamese localities was a major focus of a seminar held in the central city of Da Nang on October 30. Herb Cochran, Executive Director of the American Chamber of Commerce (AmCham) in Vietnam, suggested developing logistics and new factors for a sustainable growth with better competitiveness. Nestor Scherbey, head of the AmCham’s customs and trade facilitation working group, said intermediate goods account for 60 percent of global trade while more than 30 percent of transactions are undertaken by a corporation’s affiliates. Multi-national companies must align the global supply chain with the TPP’s rules of origin (ROO) to be entitled to tariff incentives for the end-products, he said. According to him, almost multi-national conglomerates in Vietnam import materials and intermediate goods that require further processing before they are sold abroad. The deal’s ROO will afford Vietnamese firms a chance to become a supplier of foreign-invested and other companies in the global supply chain. Apart from the recent positive changes in the customs law and relevant administrative procedures, he said there should be further improvement in State management regulations for goods subject to specialised inspection. The government and business associations need to build and launch new personnel training courses as soon as TPP’s details are announced, he added. Vice Chairman of the Da Nang People’s Committee Phung Tan Viet hailed the TPP as an opportunity and challenge for local enterprises and urged them to gear up for the global economic integration through the deal. The event was co-hosted by the Party Committee of the municipal business bloc, the Da Nang chapter of the Vietnam Chamber of Commerce and Industry (VCCI), the municipal Association of Young Entrepreneurs and the Investment Promotion Centre. Vietnamese producers eye better quality Vietnamese businesses were urged to strengthen cooperation with distribution channels in addition to enhancing product quality as ways to directly put their products on shelves of foreign supermarkets.  Currently, most Vietnamese products must go through intermediaries to reach foreign retailers due to various reasons from the lack of a brand name, poor design, to tight regulations on product quality, experts said. Direct procurement of foreign retailers was considered a good way to help local producers earn higher profits and also be a bridge to boost exports through sales with retailers in foreign markets. It was not easy to bring locally-produced products into the foreign supermarket chains amid global integration with anticipated increased inflow of import products given trade liberalisation, according to Nguyen Ngoc Hoa, member of the National Assembly's Economic Committee. This was because locally-made products were generally less competitive by design, quality and prices compared to imported ones, Hoa said. He said that there would be opportunities, however, if Vietnamese businesses enhanced their product quality to meet foreign requirements and re-organised the distribution system to cut intermediaries. Tran Duc Toan, Director of the T&N Garment Company, which recently devised ways to directly sell products at several outlets in France and the US, said that working directly with purchasing departments was the first door, which would bring higher profits than through intermediaries while receiving helpful consultation for improvements. Earlier in September, Prime Minister Nguyen Tan Dung approved the plan to promote Vietnamese businesses to directly participate in foreign distribution networks to 2020. The project aimed to promote exports through ensuring Vietnamese products are directly sold into major distribution systems of countries in Europe, North America, Southeast Asia and Northeast Asia which signed free trade agreements with Vietnam. Previously, Deputy Minister of Industry and Trade Do Thang Hai said that the ministry firstly would focus on negotiating with foreign retailers which were currently operating in Vietnam to ensure Vietnamese products could penetrate their store chains not only in Vietnam but also in foreign markets. According to the ministry, many foreign supermarkets such as BigC, Aeon and Lotte Mart have programmes to bring Vietnamese products overseas. Property inventory continues falling Real estate inventory had an estimated value of 56.28 trillion VND (2.55 billion USD) by the end of October, down 40.4 percent compared with December 2013, according to statistics from the Ministry of Construction.  This estimated value shows a reduction of 3.1 trillion VND (140 million USD) against the previous month. The ministry found that property inventory in the apartment segment was 9,562 units, worth 15 trillion VND (680 million USD), while that of low-rise houses was 7,883 units, worth 14.1 trillion VND (641 million USD).  Inventory for residential land was 7 million square metres, worth 22.5 trillion VND (about 1 billion USD), and commercial land was 1.6 million square metres, worth 4.5 trillion VND (204 million USD). HCM City saw the highest property inventory of 11 trillion VND (500 million USD), with 516 low-rise houses worth 1.4 trillion VND (63 million USD) and over 264,000 square metres of residential land worth 1.2 trillion VND (54 million USD). In October alone, the inventory in the city saw a 354 billion-VND (16 million USD) drop compared with the previous month. Real estate inventory in Hanoi was about 7.3 trillion VND (331 million USD), a decline of dropped 247 billion VND (11.2 million USD) from the previous month, mainly in low-rise houses, with 2,272 units worth nearly 6.7 trillion (300 million USD). According to the Vietnam Real Estate Association, housing demand in Hanoi and Ho Chi Minh City is still huge. Thus, there’s no need to worry about surplus supply. Vietnamese firms seek to increase exports to US Economic experts predicted that Vietnam’s exports to the US, mainly textiles and footwear, would continue to increase if local exporters could meet technical standards and requirements. They stressed that the completion of negotiations on the Trans-Pacific Partnership (TPP) agreement in early October would help open bigger markets for Vietnamese exports, suggesting that Vietnamese businesses fully tap advantages brought by the deal. Statistics from the Vietnam Textile & Apparel Association show that over 60 percent of Vietnam’s textile products are shipped to the US and Japan – the two key markets joining TPP negotiations – with a 17-percent tax rate. When the world’s largest trade pact is signed, Vietnamese textile producers will have greater opportunities to promote their export to the countries with a zero tax rate. According to Vietnam’s Commercial Affairs in the US, Vietnam is the second largest garment exporter to the US, with stable growth in recent years, hitting 12.3 percent in 2014. Aside from textile enterprises, footwear producers are also investing in producing materials that meet US requirements. Nguyen Chi Trung, General Director of Gia Dinh Shoe Company, said his firm started operating an industrial cluster for producing materials in Binh Duong province, which would help satisfy the company’s production demand and supply materials for other enterprises. The firm’s revenue in 2015 is expected to increase between 15-20 percent compared with last year, thanks to its efforts to enhance promotion activities in the US. Seventy percent of its products are being shipped to the US this year. Toan Thinh, a company that specialises in silk production, also plans to expand exports to TPP member countries, especially the US. According to Phan Thi Thanh Xuan, General Secretary of the Vietnam Leather , Footwear and Handbag Association, the Government should issue a decree on support industries to encourage investment in material production. She also underlined the need for enterprises to improve the quality of human resources and labour productivity; promote the application of advanced management models; and shift production establishments to rural areas to take advantage of abundant workforces, thus reducing production costs and the price of products. The American Market Department under the Ministry of Industry and Trade also suggested promoting closer connections between domestic producers and material suppliers in order to make the most of the TPP deal. EU willing to help Vietnam enter European market The EU is willing to help Vietnam make inroads into the region’s market and take full advantage of the free trade agreement between the two sides, Head of the EU Delegation in Vietnam Bruno Angelet told reporters in the southern region on October 30. He said a number of Vietnamese goods, especially food and agricultural products, could not enter the European market because they failed to meet its strict requirements. He called for exporting countries, including Vietnam, to make greater efforts to fulfill food safety requirements, stressing authorities’ assistance in the development of brand names. Bruno also suggested that the Government offer more incentives to improve the investment climate and facilitate the sustainable development of small- and medium-sized enterprises and farmers. The EU will provide technical support to manage the quality of Vietnamese agricultural products in a bid to boost their popularity in the European market, he said. The Ministry of Industry and Trade should make specific requests for technical support so the two sides could optimise the effectiveness of the Vietnam – EU FTA in the coming time, he added. The Union will help Vietnam improve management and service delivery in a number of sectors, including infrastructure, education and training, judicial assistance, social and health insurance and sustainable energy, he said. Vietnamese firms show at ASEAN's exhibition Southeast Asia's largest machine-tool and metalworking technology trade exhibition and conference, Metalex 2015, to be held next month in Thailand, will provide Vietnamese firms with a chance to update technologies and discover new business opportunities.  Sirirat Sungvichai, project manager for Thailand-based Reed Tradex Co. Ltd, the organiser, said that 2,700 global brands from 50 countries and territories would display thousands of new machines and cutting-edge technologies. Under the theme of "Infinite Solutions, One Show," Metalex 2015 to be held from November 18-21 at Bangkok will also include conferences and forums on nano and metallurgy technologies, latest industry trends, and strategies. In addition, its Business Matchmaking Programme will help participants expand networks, recruit new agents, seek new or alternative suppliers, and explore new business opportunities. With the ASEAN Economic Community to come into existence by the end of this year, to remain competitive, Vietnamese firms need to invest in modern technologies. The organiser said it received registrations to participate in the show from more than 60 companies from Vietnam. Listed companies with high governance standards announced Vietnam Dairy Joint Stock Company, Ho Chi Minh City Securities Corporation and PetroVietnam Fertilizer and Chemicals Corporation were on a list of listed Vietnamese enterprises that received the highest assessment from the ASEAN Corporate Governance Scorecard (ACGS) project. According to the Ho Chi Minh City Stock Exchange (HOSE), Hoang Anh Gia Lai Joint Stock Company and the Refrigeration Electrical Engineering Corporation were praised for improving their governance scorecard over the past three years. The Asian Development Bank and the ASEAN Capital Markets Forum created the ACGS in 2012. The ACGS is a series of assessments based on publicly available information and compared with international best practices that encourage listed companies to go beyond national legislative requirements. The ACGS report can serve as a reference for capital market regulators and other stakeholders who want to understand the current corporate governance standards across the region. It also provides opportunities for businesses to promote their images. In 2015, governance scorecard assessments were made to 55 publicly listed enterprises in the Vietnamese market. A number of conferences and workshops have been held in the country to announce the ACGS evaluations and disseminate information on the benefits of increasing governance and capital competitiveness. The ACGS awards are scheduled to take place on November 14 in Manila, the Philippines. 15th International Agriculture Trade Fair to be launched in Hanoi The 15th International Agriculture Trade Fair (Agro Viet 2015) will be held in Hanoi between November 6 and 9.  This year’s event, themed “Enhancing the effectiveness of food processing and preservation”, will feature 400 stands from foreign and domestic businesses and organisations.  The fair provides an opportunity for businesses to promote their products and honour Vietnam’s high-quality farming, forestry, seafood and handicraft products. Advanced techniques and technology in agricultural production will also be introduced during the event.  Trade Promotion Centre for Agriculture Director Dao Van Ho, who is head of the organisation board, said visitors would see the agricultural sector of Vietnam as a modern, well-developed key economic sector.  Outstanding achievements in the agricultural sector will be showcased as part of the event.  A workshop on the use of fertilisers and chemicals in agricultural production and a seminar on value chains in agricultural produce would also be organised.  This year marks the 70th founding anniversary of the Ministry of Agriculture and the 20th year of the Ministry of Agriculture and Rural Development.  According to the General Statistics Office, the agro-forestry-fishery sector in the first six months of this year posted a growth of 2.36 percent, lower than last year’s 2.9 percent. But the whole sector’s production value was estimated at 489 trillion VND (22.4 billion USD), a 2.41 percent rise year-on-year. Vietnam rises 22 places in WB’s “getting electricity” ranking Vietnam moved up 22 places from 2014 to rank 108th in “getting electricity” this year, according to the World Bank (WB)’s “Doing Business 2016” report that collected data from 189 economies worldwide. “Doing Business 2016” is the 13th in a series of annual reports that measure aspects of regulations affecting 10 areas of the life of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The “getting electricity” indicator measures the efficiency of the process of obtaining an electrical connection for a standardised warehouse. This is reflected in the procedures, time and costs required. Vietnam’s “getting electricity” ranking made the biggest improvement among categories, Electricity Vietnam (EVN) said, adding that the report named Vietnam among 19 countries that have made it easier to access electricity. EVN’s efforts this year greatly contributed to the success. It cut the number of days required for customers to get power access from 18 to 10 days. Customers are now able to file an application for power access and track its progress on the State-owned firm’s official website, where all necessary information and application requirements are also available.-VNA Chile plans timber exports to Vietnam Chile is a big timber producer and wants to boost exports to Vietnam, which has increasing demand for wood to make products for export, a seminar heard on October 29 in HCM City. Chile has 17.3 million hectares of forests, or 22.9 percent of its land area. Its annual timber production stands at 40 million cubic metres. Chile has sustainable forest management certification, which reduces the pressure on natural forests, Aldo Cerda, Chairman of the Chilean Timber Council, told the seminar. "FSC and PEFC are by far the most important certification systems worldwide, and 70 percent of the forest plantations in Chile are not only certified, but double-certified. The remaining 30 percent has been almost entirely assessed according to both standards as ‘non-controversial' sources, ensuring long-term availability of wood that fulfills all requirements of responsible procurement." With Vietnam's wood production and exports forecast to develop strongly, there is an enormous potential for collaboration between Chile and Vietnam, he said. Dao Tien Dung, Office Manager at the Handicraft and Wood Industry Association of HCM City (HAWA), said Vietnam's wood products exports grew at an annual rate of 15-18 percent in the last decade. To sustain production, Vietnam imports large quantities of timber from other countries, but not Chile, he said, adding that out of 2.1 billion USD worth of imports last year, that country accounted for only 49.2 million USD. The seminar was followed by business-to-business meetings. Organised by HAWA and the Chilean Trade Promotion Agency, the seminar was attended by a delegation of 14 Chilean companies, businesses from Indonesia, Malaysia, and Singapore together and more than 40 Vietnamese companies. Vietnam's wood product exports were worth 6.3 billion USD last year and are expected to top 7 billion USD this year. The country ranks first in Southeast Asia and sixth in the world in terms of wooden products production, he said. Thaco launches made-in-Vietnam Kia Sedona Truong Hai Automobile Company (Thaco) rolled out the locally assembled Kia Sedona minivan at Chu Lai-Truong Hai Complex in the central coastal province of Quang Nam on October 29. The premium seven-seat multi-purpose vehicle (MPV) will be sold from 1.198 billion VND (54,000 USD) to 1.3 billion VND (58,300 USD) (including VAT), depending on the version. The high-end segment car is equipped with high-quality, US-standard equipment. It comes to the Vietnamese market in two models: V6 3.3L gasoline engine and 2.2L diesel engine. A partner of Kia Motors since 2007, Thaco has been given the technology to assemble the completely knocked down (CKD) models, including the Kia Morning, Carens, Forte, Picanto, Sorento, K3 and Rondo. The company has manufactured and assembled more than 75,000 Kia minivans. According to Hong Sun Ho, CKD business manager of Kia Motors, thanks to sound co-operation between Thaco and Kia Motors, a line-up of locally made cars have been launched in the market. He said Kia would continue to renovate and fine-tune the products to increase their competitiveness in regional and global markets. Ho Chi Minh City economic growth likely to surpass 10 percent Ho Chi Minh City’s economic growth is likely to surpass 10 percent for 2015, said Le Hoang Quan, Chairman of the HCM City People’s Committee.  At an October 29 conference on the economic, cultural and social realities for the first 10 months of 2015, and main tasks for November, Quan said data on industrial production, trade and services indicated that the city would be able to beat its yearly growth target of between 9.5 and 10 percent.  The city’s growth showed in an increase in its budget income, which is estimated to reach 260,000 billion VND (11.6 billion USD) for the year, said Quan. Budget income reached 225,972 billion VND (10 billion USD) by the end of October.  Su Ngoc Anh, Deputy Director of the municipal Department of Planning and Investment, said total retail sales amounted to 550,100 billion VND (24.5 billion USD) by the end of October, a year-on-year increase of 10.5 percent.  The city’s exports and imports, excluding crude oil, reached 22.11 billion USD in the first 10 months, up 9.2 percent over the same period last year.  The growth could be seen in the tourism sector, as well. The city welcomed 3.63 million visitors, up 4.6 percent on year – 77 percent of the year’s goal. Tourism revenue was 75,645 billion VND (3.36 billion USD), up 5 percent.  The city’s industrial production continued expanding, increasing the proportion of the processing and manufacturing industries. The four key industrial sectors expanded 7.9 percent.  Another highlight of the city’s economy was the increase of investment capital. It reached 3.08 billion USD, up 4.8 percent. Foreign direct investment capital increased 44.3 percent.  The banks’ middle- and long-term capital grew 16.5 percent from 2014 and the remittances reached 3.7 billion USD.  Tran Anh Tuan, Interim Director of the HCM City Institute for Research and Development, said the increase in investment capital showed investors’ expectations about the business environment.  The large proportion of new companies established in the city showed that the city has maintained its position as a top destination for local investors. This helped generate more jobs for labourers, Tuan said.  The 14.3-percent reduction of companies ending their operations and the strong growth in middle- and long-term credit indicate that the appeal for investment was gradually stabilising.  In order to complete the social-economic development plan from now to the end of 2015 and lay foundations for 2016, Quan asked departments and sectors to implement measures to work toward set goals, including controlling inflation, stablising the macro-economy and ensuring social security.  The banking system was asked to assist companies on interest rates to help them get access to capital for production and business in the end of the year.  The Public Investment Law will take effect in 2016, so Quan asked districts and departments to tighten public spending and projects using state funds to prevent profligacy.  Other goals the city aims to meet include improving the business environment, helping enterprises improve their competitiveness, creating more innovative technology, boosting productivity and quality, and expanding markets by promoting trade and investment.- Southern Cai Mep port receives super freighter China Shipping’s CSCL Star, a container vessel with loading capacity up to 160,000 tonnes, docked in southern Ba Ria-Vung Tau province’s Cai Mep International Terminal (CMIT) on October 29.  The freighter – 366 metres long and more than 51 metres wide – can carry over 14,000 TEUs (a unit measuring cargo capacity).  Two hundred scenarios had been tested in preparation for the docking.  By successfully receiving the 14,000 TEUs, the CMIT has made Vietnam one of three regional countries – alongside Singapore and China – that can handle this type of ship.  This opens up a new shipping route between Asia and Europe, which will enhance competitiveness and bring about more opportunities for the container terminal.  The CMIT, a joint venture between Denmark-based APM Terminal, the Sai Gon Port and Vinalines, received 80,000-tonne-capacity vessels in 2010.  The CSCL Star docking has become a milestone for the deep-water port after upgrades were made to enhance its capacity.  China Shipping belongs to the “Ocean Three” Alliance that is formed by CMA-CMG of France, China Shipping Container Lines of China and United Arab Shipping Co. of the United Arab Emirates (UAE). Non-tariff barriers might hinder free trade flow Non-tariff measures included in free trade agreements (FTAs) were the highlight of a seminar held in central Da Nang city on October 29.  Participating economists agreed that joining a range of FTAs will help Vietnam meet new opportunities, particularly preferential tariffs for export and a flow of foreign investment. Domestic business, however, will face tougher technical and origin barriers, including those concerning specific packaging-labelling-marking and product quality.  Deputy Director of the Central Institute for Economic Management (CIEM) Vo Tri Thanh said Vietnam could capitalise on the recently-signed Trans-Pacific Partnership (TPP), as bloc members such as the US, Japan and Australia are expanding their import markets for agricultural produce, garment-textiles, woodwork products and footwear.  The US contributes half the value generated by Vietnam’s garment-textiles shipped abroad. After the TPP, current 17.3 percent tariffs issued on the goods will be eliminated.  China, Japan and the Republic of Korea are also prominent partners of Vietnam with bilateral trade revenues reaching 13.3 billion USD, 13.7 billion USD and 6.6 billion USD in 2013, respectively.  Nevertheless, export turnovers recorded with the three markets have fallen short of their potential, said Dang Thanh Phuong, an expert from the European Trade Policy and Investment Support Project (EU-MUTRAP).  She pointed to technical specifications as reasons behind the underperformance, because the local criteria are largely under common standards. Many export companies are small-scale and have inadequate competencies to fulfil the requirements of foreign importers.  To improve capacity, domestic enterprises ought to expand export markets and overhaul their production from the materials selection and processing to packaging and shipping. Research and development units are necessary for large enterprises to make their products eligible for export despite non-tariff barriers.  Standard technical system needs to be devised while export criteria set by import nations should become more accessible. HCM City, Netherlands talk to forge agricultural ties Nguyen Thi Hong, Deputy Chairwoman of the Ho Chi Minh City People’s Committee, met with Dutch Vice Minister for Agriculture Hans Hoogeveen on October 29 to discuss ways to enhance agricultural ties between the City and the Netherlands. Collaboration between Ho Chi Minh City and the Netherlands has achieved major successes in multiple fields, Hong said while hoping that the Dutch Government would continue supporting the City in the future, particularly in improving the competitiveness of local businesses. She proposed that the two sides should prioritise four key agricultural projects which focus on export support, post-harvest handling, adding values to the City’s key products and personnel training. Hoogeveen agreed, saying that the Netherlands and its enterprises are keen to expand cooperation with Vietnam, including Ho Chi Minh City. The Netherlands, with great strength in agricultural exports, plans to carry out a pilot project on advanced technology for post-harvest handling, he added. In the presence of the municipal leader, the Dutch Vice Minister and the Dutch Consulate General in Ho Chi Minh City, the Saigon Trading Group (SATRA) and Fresh Studio Innovation Asia Ltd. inked a Memorandum of Understanding (MoU) on a project to establish a 14-hectare trading centre for ornamental plants and fish at the Binh Dien Wholesale Market and to test flower supply chains from Da Lat to the City. The trading centre will offer services for post-harvest treatment, refrigerated transport and storage, packaging, conference and exhibition organisation and payment among others. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR