BUSINESS IN BRIEF 5/11 Interflour Group launches plant in Da Nang The Interflour Group has launched its plant – the eighth in the world and the second in Viet Nam – in the central city's Son Tra Peninsula. The plant, spread over 3ha in Yet Kieu Street near Tien Sa Port, has a capacity to produce 70,000 tonnes of flour products each year. It's the second plant in Viet Nam after a 250,000-tonne capacity factory in Cai Mep Industrial Zone in the southern Ba Ria-Vung Tau Province. A source from the city's investment and planning department said the plant, which was named the Viet Y flour factory and was owned by Foodinco Investment and Trading Company, was transferred to the Interflour Group for US$4 million. The Interflour Group is a major flour manufacturer in Viet Nam, claiming a 50 per cent market share. The group has built plants in Indonesia, Malaysia, the Philippines, and Turkey, besides Viet Nam, with a total capacity of producing 1.7 million tonnes per year. In 2012, the group established its International Flour Trading company in HCM City to boost distribution in the south and the Mekong Delta river area. Proper steps for Vietnam's 4G service eyed Le Nam Thang, former Deputy Minister of Information and Communications, has advised network providers to make a careful calculation on the demand for 4G (fourth-generation network) implementation. Representatives from the Ministry of Information and Communications, network providers including Vinaphone, Viettel, MobiFone and Vietnamobile, 4G device producers and experts in telecommunication and economy gathered at a recent seminar titled "How does Vietnam go to 4G?" in Hanoi. All users want good technology with high quality and wide coverage area, which is the same as all people want to travel by luxurious cars such as Audi and BMW, but the important thing is that we should consider the general social development, Thang said. The market is the decisive factor on whether the service is successful or not, he said. Producers have talked a lot about how it is time to implement 4G, which will allow wireless Internet access at a higher speed than 3G. However, the former minister recommended telecom service providers should not be hasty, given the experience from the deployment of 3G. 3G was implemented in 2010 but it just became popular in recent years as more people use smartphones and tablets in Vietnam. Devices for 4G in Vietnam are rather costly at this time, which is not suitable with Vietnamese finances. Besides market demand, two other decisive factors for the deployment of 4G include technology and ecosystem, said Thang. It is important to check whether the technology is popular because if we deploy the technology too early, the price of devices and fees will be expensive. On the contrary, if we deploy late, we will slip as the world will move to another technology, he said. The total subscription of 4G LTE and LTE Advanced hit 700 million users in the world, accounting for 10.4 percent of mobile subscription world-wide by the third quarter in 2014. When the percentage of mobile subscription is at between 10 and 15 percent, the technology is considered popular. Pham Anh Chien, director of VTV Digital said that to successfully deploy 4G, the ecosystem and content should be strong enough. If for 2G, ecosystems are calling and SMS and 3G's ecosystem is Internet, the ecosystem of 4G will be media. A company is expected to provide television services and high-quality calling to the market, therefore, it needs the handshake with content providers to be able to offer the best service, he added. Tran Tuan Anh, representative of the Vietnam Telecommunications Authority under Ministry of Information and Communications said that the ministry may grant licences for three businesses asking for trial 4G services. Representatives of VNPT-NET and Viettel said they are ready to pilot 4G. Ho Chi Dung from Viettel said that the group will draw experience from the deployment of 3G to deliver the best 4G services based on user's experience and creative data services. Meanwhile, Nguyen Nam Long, Deputy Director of VNPT-NET also confirmed the 4G technology has matured and the corporation is waiting for a trial licence to provide services to the market. Phu Quoc Island property to shine Phu Quoc Island’s investment and development management board has announced that as at the third quarter 200 projects were registered on the island with total capital of VND168 trillion ($8 billion). Vingroup is the largest investor, with VND9 trillion ($405 million), followed by the Sun Group with VND8.6 trillion ($387 million) and BIM Group, Milton Group, and CEO Group. Ms. Do Thu Hang, Head of the Savills Hanoi Research Department, told VET that Phu Quoc Island’s property market has great potential, especially coastal villas, because the island is still in the early stages of development. “The supply of real estate on the island will increase strongly in the future,” she added. CBRE, meanwhile, also recognizes that Phu Quoc has among the best potential for development in Vietnam at the moment. Abundant land sources, beautiful and pristine beaches, a warm year-round climate and few storms make it suitable for the development of hotels, villas, and resorts, including casinos, as well as medical tourism or simply recreation. As a special economic zone Phu Quoc offers many special incentives, such as VAT exemptions for passengers at Phu Quoc Airport, a 10 per cent reduction on corporate income tax rates, and visa exemptions for international tourists of up to 30 days. Infrastructure is being completed quickly, such as the airport, which had investment capital of VND3 trillion ($135 million), and a road network with total capital of VND5.8 trillion ($261 million). The international passenger port started in April, with total investment of VND1.6 trillion ($72 million) and the capacity to handle ships of 5,000-6,000 DWT, while the electricity grid has received investment of nearly VND2.4 trillion ($108 million). According to the Vietnam National Administration of Tourism, 400,000 tourists visited Phu Quoc in 2013 and in the first nine months of this year had reached 1.2 million. Experts predict that numbers will continue to increase at a fast pace, especially when the projects of the abovementioned groups are completed and opened. Transport deputy minister backs Uber and GrabTaxi   Deputy Minister of Transport Nguyen Hong Truong said technology would help the transport sector improve in response to the Hanoi Transport Association appeal to halt Uber and GrabTaxi's operations. Truong believed that the Hanoi Transport Association did not fully understand what Uber and Grab taxis are. He said Uber and GrabTaxi cars connect passengers and transport firms. That's why the ministry had proposed to let GrabTaxi pilot its operation in five major cities. "This kind of technology can help transport firms have more e-contracts," he said. "Hanoi Transport Association is worried that unlicensed taxi firms and drivers can take advantage of Uber and GrabTaxi to operate but this just need strict management and punishment." In regards to worries about tax avoidance, Truong said, "As far as I know, the Ministry of Finance and General Department of Taxation are not very worried. They will check and collect the taxes in the coming time." Even though Uber and GrabTaxis are legal as matching services, the manner in that they are operating has raised much concerns from industry rivals. According to Hanoi Transport Association, Uber and GrabTaxi cars do not have the required logos and taxi signs. The association also accused Uber and Grab taxis of price dumping and regulatory violations. "They keep operating on streets that taxis are banned. This causes congestion and doesn’t match the city's traffic planning," said Nguyen Anh Tuan, vice president of Hanoi Transport Association. Several nations have banned Uber, among them France, Belgium, Spain, Germany, Thailand and even some US states. The most common reason is that Uber was not a registered taxi operator, and had launched its operations without seeking proper permits from authorities. E-customs system helpful to businesses: survey The Japanese-supported e-customs system VNACCS/VCIS is highly accurate and helps businesses save time, manpower and expenses, as viewed by a majority of companies in a recent survey.  Au Anh Tuan, Deputy Director of the General Department of Vietnam Customs’ Customs Control and Supervision Management Department, revealed the information at a meeting to garner businesses’ feedback on the system in Hanoi on November 3.  The survey was conducted on about 500 companies operating in different industries like processing, manufacturing and logistics to learn about hindrances to the implementation of the Vietnam Automated Cargo and Port Consolidated System and the Vietnam Customs Information System (VNACCS/VCIS), he said.  A representative of the Brother Industries (Vietnam) Co. Ltd, based in the Phuc Dien Industrial Park in northern Hai Duong province, said since the VNACCS/VCIS was applied 18 months ago, it has taken only a few seconds for the firm to fill in a customs declaration form and receive the result, instead of about two minutes previously. The system has helped the company save 6,213 minutes and 12,660 USD per month.  Meanwhile, some enterprises pointed out flaws in the VNACCS/VCIS regarding declaration forms which have some sections that do not ask for accurate corresponding information or need more space for filling.  The General Department of Vietnam Customs said it will take temporary measures to deal with the shortcomings, adding that the full system needs to be put into use and added with more functions so as to thoroughly address the problems.  The VNACCS/VCIS, worth nearly 2.7 billion JPY (21.2 million USD) funded by the Japanese Government, ran in all 34 provincial and municipal customs departments across Vietnam from June 30, 2014.  The consultation meeting was held by the general department, the Japan International Cooperation Agency, and the USAID Governance for Inclusive Growth programme. Cycle brands ready for Vietnam Vietnam Cycle 2015 will take place from December 2 to December 5, in HCM City at the Saigon Exhibition and Convention Centre (SECC). The Vietnam Cycle 2015 will bring many opportunities for Vietnam and international businesses to advertise their brands, advanced products and seek potential partners in Vietnam and Southwest Asia countries. Over the past three years, Vietnam Cycle has been the only two-wheeler exhibition in Vietnam with booths of more than 200 participants from 15 countries and territories. One of the most outstanding activities which is organised for the first time in Vietnam is the Asia Bicycle Alliance Congress with the participations of 10 bicycle associations in Asia. All participants will come together for a Cycling Festival for Environment in response to the campaign as well as enjoy the beauty of HCM City. Vietnam Cycle 2015 will also raise awareness of the benefits of protecting the environment while cycling. It is also a valuable opportunity for bicycle/electric cycle manufacturers to exchange experiences with manufacturers from developed countries. This year, the exhibition has attracted many famous brands such as the Thong Nhat Bike, JettCycle, Trinx, Strongman, and Asama, in addition to the Bamboo bike, and Fornix.  They have come with various products such as the sport bicycle, electric bicycle, children's bicycle, apart from bicycle accessories, and bicycle components.- Mekong Delta to boost trade exchange with Japan The Vietnam – Japan cultural and trade exchange in 2015 will be held in the Mekong Delta city of Can Tho on November 19-21 with the aim of promoting ties between the Mekong Delta and Japan, heard a press briefing in the locality on November 3.  On the occasion, the third annual conference promoting investment in the Mekong Delta will also be held, focusing on the food processing sector.  Truong Quang Hoai Nam, Vice Chairman of the Can Tho municipal People’s Committee, said Japan is the second largest foreign investor in Vietnam, but its investment in the Mekong Delta in general and Can Tho in particular remains limited.  The exchange will be the largest-ever event of this kind to be held in Can Tho in the hope of facilitating the partnership between regional firms and Japanese hi-tech partners.  Japanese enterprises are expected to run 70 stalls at the event, which will be co-hosted by the Vietnam Chamber of Commerce and Industry chapter in Can Tho and the municipal People’s Committee. Vietnam businesses learns UK experience in trademark building The Vietnam Chamber of Commerce and Industry (VCCI) and the UK Embassy in Vietnam jointly held a seminar in Hanoi on November 3 to help local businesses learn from UK enterprises’ experience in branding.  The event is part of activities to support Vietnamese businesses in developing trademark and boosting import-export activities in the European markets, including the UK .  Doan Duy Khuong, VCCI Vice Director, held that Vietnamese firms should promote their strengths and take advantages of opportunities generated by sustainable development trend in the world to enhance their competitiveness amid the difficult economic situation and increasing international integration.  Building trademark is one of the important factors to maintain and expand both domestic and foreign market for Vietnamese enterprises, he said.  Particularly, the freshly-reached Trans-Pacific Partnership poses an array of challenges in competitiveness, requiring Vietnamese businesses to renovate and become more creative in trademark building, said Khuong.  Speaking to the media before the seminar, Bruno Angelet, new Ambassador and Head of the EU Delegation to Vietnam , said the EU is willing to assist Vietnam in penetrating to the EU market as well as optimising benefits from the free trade agreement between the two sides.  Over the past years, failure in meeting EU countries’ quality standards is one of the main reasons hindering Vietnamese products, especially agricultural products, from entering these markets.  Participants also agreed that Vietnamese businesses should also pay more attention to issues related to trademark and copyright to utilise benefits from bilateral and multilateral trade agreements between Vietnam and her partners. VAMC cuts rates on NPLs denominated in euros, dong The Vietnam Asset Management Company (VAMC) has cut the applicable interest rates by 0.3 percent of the Vietnamese dong and the euro for non-performing loans (NPLs) purchased from credit institutions.  Accordingly, the interest rate on NPLs denominated for the dong is reduced to 9.6 percent per year while the rate on NPLs in the euro is 5.4 percent per year, effective in the fourth quarter this year. However, the interest rate on NPLs denominated in the US dollar in the fourth quarter this year remains unchanged at 4.3 percent per year. According to the State Bank of Vietnam's regulations, the VAMC is required to review and adjust the interest rates applied to the purchased NPLs in keeping with the repayment capacity of the borrowers, the interest rates prevalent in the market and based on the agreement with customers. Those interest rates will be publicised by the VAMC quarterly. This is the sixth time the VAMC has announced an adjustment in interest rates applicable to the purchased NPLs. The company had adjusted interest rates for the first time during the second quarter of 2014, when it decided to significantly cut interest rates on the bought NPLs in dong from 15 to 18 percent per year to only 10.7 percent per year. In the third quarter this year, the VAMC kept unchanged the interest rates of 9.9, 4.3 and 5.7 percent applicable to the purchased NPLs denominated in dong, US dollar and the euro, respectively. The VAMC acquired 90.23 trillion VND (4 billion USD) in bad loans at book value of 82.73 trillion VND (3.69 billion USD) from credit institutions till October 20, 2015, in exchange for special bonds. The accumulative amount of bad debt the VAMC has purchased since its launch in 2013 totals 225.6 trillion VND (10.07 billion USD).-VNA HCM City hopes for closer cooperation with EU Ho Chi Minh City always considers the European Union (EU) its top partner, especially after Vietnam and the union declared to conclude negotiations on their free trade agreement (FTA) last August, Vice Chairman of the municipal People’s Committee Le ThanhLiem has said. Meeting with representatives fromthe European Chamber of Commerce in Vietnam (EuroCham)on November 3, Liem affirmed that his city pioneers in fostering collaboration with the EU in all fields, especially economy, adding that the local authorities are working to create the most favourable conditions for the foreign business community, including European companies, to operate in the city. The municipal authorities and relevant agencies have taken a series of measures to support and resolve difficulties facing domestic and foreign businesses, he noted. Chairwoman of EuroCham Nicola Connolly described the meeting as a chance for European enterprises toask forthe city government’s more assistancefor their operation in the locality. Through the event, the European business community was provided with updated information related to the city’s economic and socio-cultural policies, thus seeking future investment and business opportunities in the city and inVietnam in general. According to the municipal Department of Planning and Investment, Vietnam joined 10 bilateral and multilateral free trade agreements, and completed negotiations on FTAs with some partners, including the EU, and most recently the Trans-Pacific Partnership (TPP) agreement. As of October this year, the EU had operated 656 investment projects worth 4.3 billion USD in Ho Chi Minh City. Two-way trade hit around 6 billion USD in 2014 and is expected to continue increasing in the coming time. Vietnam attends Cuba’s international trade fair Vietnam is joining 4,500 foreign exhibitors from 60 countries and territories worldwide at the 33rd Havana International Fair 2015 (FIHAV), which is taking place in Havana from November 2-7. A Vietnam Day and a Cuba- Vietnam business conference are scheduled to be held on November 3 and 4, respectively, in the framework of the fair. Consumer goods, machinery, equipment, raw materials and services, among others, are on display on an exhibiting area of more than 20,000 square metres. This year’s event has seen the largest number of participants in the past 15 years, Cuban Foreign Trade and Investment Minister Rodrigo Malmierca said at the opening ceremony, highlighting that this shows the international community’s interest in the Cuban market. Cuba is diversifying its trade relations, especially in bio-technology and services, he affirmed. FIHAV, annually held since 1982, is the most important general trade exhibition in Cuba and the Caribbean region. HCM City companies strategise for TPP Companies in HCM City are devising new strategies and focusing on product research and development to prepare for the Trans-Pacific Partnership (TPP) trade agreement, which will take effect by 2017. Because of lower tariffs in TPP-member countries, Vietnamese exports will have more competitive advantages. Key export industries like textiles and garments, footwear, seafood, wood furniture and agricultural products are expected to benefit from the more liberal trade environment. The TPP is expected to narrow Vietnam's trade deficit and reduce dependence on larger markets in countries that are signatories to the TPP. It will also help Vietnam increase its GDP by an estimated US$23.5 billion by 2020 and US$33.5 billion by 2025. Foreign investment attraction, especially from developed nations like the US, Canada and Japan, will bring more modern technology and management expertise to the country. And small- and medium-sized enterprises are expected to have more opportunities to join the global supply chain. The TPP is also expected to create a more market-oriented economy and management. Because of international pressure, state-owned companies will be expected to have more transparent governance. Vietnam, however, is the least developed nation among TPP members, and as such, will face competitive pressure, particularly in agricultural products from the US, Australia and New Zealand. Most agricultural producers in the city's price stabilisation programme are preparing for severe competition. They have expanded their distribution networks, conducted research on new high-quality products and developed and tailored products for Vietnamese consumers in different market segments. All agricultural products are expected to be part of the city's Safe Food Supply Chain project, which requires safety, hygiene and traceability. To support enterprises, central and local government authorities have organised programmes to promote locally made agricultural products. This has allowed enterprises to borrow loans for technology; increase their product quality; develop distribution networks; create their own raw material areas; and promote closed production processes from farm to table. Fifty enterprises in HCM City and other neighbouring provinces are part of the Safe Food Supply Chain with 100 kinds of products. They produce 16,000 tonnes of fruits and vegetables, 8,600 tonnes of pork, 7,700 tonnes of chicken, 140 tonnes of tea, 36 tonnes of seafood and nearly 35 million eggs a year. Many other enterprises are completing their investment and procedure to join the programme. Wholesale and retail enterprises like Co.op Mart and Satra, for example, are expanding and making their own products. Firms expect customs improvements Businesses expect further improvements in customs clearance to promote management efficiency while creating convenience in cross border trade, a conference heard on November 3. Held by the General Department of Customs, Japan International Co-operation Agency (JICA) and USAID's Governance for Inclusive Growth Programme, the conference aimed to review the Vietnam Automated Cargo and Port Consolidated System (VNACCS/VCIS) after one and a half years in operation and listen to the opinions of firms to improve the system. According to Dao Thi Thu Thuy from the General Department of Customs, a survey of more than 300 businesses revealed that 95% of them were satisfied and very satisfied with the automated customs clearance system. A representative from Brother Industries Vietnam said that the system helped save time, human resource and money spent in customs declaration, estimated to save around 100 hours and more than US$12,000 per month for his company. Still, the system needed to be further improved as businesses found some inconveniences such as limited space for customs declaration, slow feedback and support. Thuy said that the system currently operated only 50% of its functions and needed the co-ordination of relevant ministries and organisations to ensure that all procedures were conducted online. Au Anh Tuan, deputy director of the Customs Control and Supervision Department, said the system would be improved to reduce time for customs clearance and tighten management of imports and exports. The system including e-customs declaration, e-invoicing and e-payment among others, was put into operation on April 1, 2014 and now all customs departments nationwide conducted customs procedures through the system. E-customs and e-tax payment systems were among administrative reform efforts of Vietnam to improve its business climate. Statistics from the Finance Ministry revealed that as of October 26, more than 90% of businesses registered to pay tax online and that 98% registered to conduct tax filings online. In the latest report on the ease of doing business announced late last month, the World Bank ranked Vietnam 90th out of 189 countries, moving three grades up.  Yuan adjustment yet to affect firms Monday adjustment of China's yuan is yet to impact Vietnamese businesses, experts said. Vietnam Steel Association Vice Chairman Nguyen Van Sua said the 0.54% adjustment would not affect steel exporters, who sell insignificant quantities of products to the Chinese market. The adjustment might cause import prices to rise but it would not affect steel import volumes from China, which account for up to 60% of Vietnam's total steel imports, he said. He noted, however, that domestic firms would have to continuously cut costs and improve product quality to enhance competitiveness right in the home market. Vietnam Fertiliser Vice Chairman Nguyen Hac Thuy said enterprises in this sector, especially major firms such as Phu My, Ca Mau and Ninh Binh, were operating well with sufficient supplies. While the companies were able to meet domestic demand and serve their exports, insignificant fertiliser imports from China could hardly affect local businesses, he said. However, he urged authorities to tackle units that produce fake and low quality fertilisers, which are damaging both, enterprises and farmers. Hung Yen Garment Corporation General Director Nguyen Xuan Duong said that as local garment and textile companies usually imported materials from China to serve their production for exports, the adjustment of the yuan would not affect the companies as they would gain when exporting their finished products. The appreciation would only impact importers producing materials, such as those importing cotton to manufacture threads, or chemicals to dye cloth, he said. Dap Cau Garment JSC Chairman Luong Van Thu said all of its existing orders with Chinese partners were contracted in US dollar, so they would not be affected by the yuan fluctuation. But he warned that the depreciation of the currency would eventually have an impact on domestic firms, since China is a power in exporting garment production materials. Phan Thi Thanh Xuan, general secretary of the Vietnam Leather, Footwear and Handbag Association, said companies in this area were also insignificantly influenced by the Chinese currency fluctuation, with US dollar contracts. While firms were cautiously observing the unpredictability in exchange rates, any clear currency impacts on their business would be exposed early next year, she said. "In the long run, we need to have more suitable modes of production and use more materials made domestically, or made in other countries rather than China," Xuan said. "This is not a new issue, but enterprises should make a note of it to adapt to global policy changes in the future, especially with regard to the Chinese market," she added. Vietnam Cassava Association Vice Chairman Nguyen Minh Tien said exporters in this industry would also see little impact from China's monetary adjustment, as China was still a major importer of Vietnamese cassava. China, the world's second largest economy adjusted the yuan's mid-rate upwards by 0.54% against the US dollar on Monday. This is the largest currency adjustment by the country in a decade, just three months after its surprise devaluation sent shockwaves through global markets. Franklin Templeton puts faith in Vietnam ahead of ASEAN In light of the launch of ASEAN, US-based Franklin Templeton Emerging Markets Group, which trades on the New York Stock Exchange, has announced plans to invest US$3 billion in the country’s logistics, restaurant and services industries. “We expect Vietnam to be a relative outperformer among emerging markets in Asia over the next five years,” said Mark Mobius, PhD, executive chairman of the company on October 19 at a meeting with current and potential shareholders in Ho Chi Minh City. Mobius said the formation of the Association of Southeast Asian Nations (ASEAN) economic community on January 1, 2016 will bring 10 economically diverse Southeast Asian countries together into a single economic organization. It represents another strand of reform in which more technologically advanced emerging economies are becoming increasingly interconnected with less-developed neighbours who possess resources of low-cost labour and commodities, to the potential benefit of both groups. The reform measures have had some short-term costs, but we believe that the Vietnam government will continue to succeed resulting in longer-term benefits that will soon begin to feed into greater economic growth figures. The emphasis on market discipline should also create a closer correspondence between the Southeast Asian nation’s emerging-market growth and corporate profitability. “We expect to see robust economic growth in Vietnam that will provide our shareholders with significant gains,” said Mobius. The company has been investing in businesses in Vietnam since 1996 Mobius said citing it currently has invested heavily in Huy Vietnam Food Processing Co Ltd, which owns roughly 100 restaurants under the brand names of Pho Ong Hung, Mon Hue and Com Tho Chay. It has also placed about US$200 million into the pharmaceutical, consumer goods and manufacturing industries as well as Vietnam National Oil and Gas Group (PetroVietnam) and affiliates. Mobius applauded the government’s move to step up the equitisation of state-owned enterprises saying it provides the impetus for strong development of the private sector and should fuel stock market growth. A US born German citizen who holds a PhD from the Massachusetts Institute of Technology, Mobius currently directs the Franklin Templeton Investments research team which is based in 18 global emerging markets offices and manages emerging markets portfolios. State to encourage use of bio-petrol The relevant state offices must ensure supply of E5 grade bio-fuel for the domestic market to sell bio-petrol nationwide from November end, the deputy minister of Industry and Trade said. Deputy Minister of Industry and Trade Do Thang Hai said the state offices should have support policies to encourage petrol dealers to sell E5 petrol, a kind of petrol with 5 per cent ethanol and 95 per cent petrol, as well as promote propaganda among the public on the usefulness of bio-fuel. The Ministry of Industry and Trade's Science and Technology Department has said Viet Nam has seven factories producing ethanol, of which four have ethanol meeting quality standards to process E5 petrol. The four factories have a total capacity at 318,000 tonnes of ethanol to process 4.78 million tonnes of E5 petrol. Meanwhile, three other factories need more investment to produce ethanol that reaches quality standards to process bio-fuel. So far this year, E5 petrol has been sold at seven cities and provinces, including Ha Noi, Da Nang, Can Tho, and HCM City, in addition to Quang Nam, Quang Ngai and Ba Ria Vung Tau. The products will start to sell nationwide from November 31. The nation has three E5 petrol processors, including the Viet Nam National Oil and Gas Group (PetroVietnam), the Viet Nam National Petroleum Group (Petrolimex) and PetroVietnam Oil Corporation (PV Oil). Petrolimex plans to expand the retail system of E5 fuel at all its petrol stations nationwide. By the end of this year, the group will ask its companies to report their specific schedule on selling E5 at the group's distribution system. Meanwhile, PetroVietnam has 359 E5 petrol retail stations in 52 cities and provinces nationwide. The group has processed a total output of 80,000 cubic metres of E5 petrol per year, which is enough supply for its distribution system. By the end of this year, PetroVietnam's petrol stations in eight cities and provinces will sell only E5 petrol. It will sell bio fuel products at around 90 per cent of its petrol stations in the remaining cities and provinces by the end of 2016.  Programme to help increase Vietnamese startup businesses’ capacity Microsoft Corporation, Expara Vietnam and the Customer Loyalty and Acquisition Services (CLAS) Company Limited have just introduced startup support programme called “CLAS Expara Startup Accelerator” at Phu My Hung new urban area in District 7 of Ho Chi Minh City. As the world’s leading IT company and trusted advisor to Vietnam, Microsoft wants to reaffirm its strong commitments to help Vietnamese startup businesses achieve more, thereby contribute to the national economic growth and transform the future. CLAS Expara Startup Accelerator, a programme to help increase capacity for startup businesses, was initiated by Microsoft Vietnam and Expara –Singapore's pioneer and leader in incubation, early-stage venture capital, entrepreneurship, VC and innovation training, mentorship and advisory work; and CLAS – a startup company of SHTP Microsoft Innovation Centre– a hi-tech software service company to make use of the internet and mobile technology whose software can be custom tailored to businesses’ marketing need.  Microsoft and its partners –CLAS and Expara will accept applications from startups between November 2 and November 20. Interested startups can apply at www.fundacity.com/clas-expara-vietnam-accelerator/apply/525. The organisers will establish Screening Committee to evaluate participants’ applications and choose up to eight startups for enrollment in the Accelerator’s 2016 Batch 1. Within CLAS Expara Startup Accelerator programme framework, Microsoft Vietnam will provide startups the opportunity to access Microsoft technology including BizSpark and BizSpark Plus package with the total value of $147,000 within three years.  Microsoft Vietnam also develops Go-To-Market Plan with startups whose solutions meet the needs of Microsoft customers. CLAS will provide the facilities, management, and operation of the Accelerator. Expara Vietnam will provide the workshops on entrepreneurship, business plan and model, competitive strategy, fundraising and financial plan and investor pitching (valued at $10,500).  Expara Ventures III will invest $10,000 into promising startups after the mid-point review and will invest up to $500,000 in successful graduates after Demo Day (subject to Investment Committee approval and successful due diligence). Vu Minh Tri – General Director of Microsoft Vietnam said, “Vietnam is an important emerging market for Microsoft in Southeast Asia with great growth potential with its large, young, proactive, talented population. We believe that Vietnamese enterprises have many creative ideas, and the things they need are capital, market and specialised knowledge. Therefore, we are striving to empower Vietnamese startups to transform the future and continue contributing to the national economic growth through this programme”.  “We are very glad to be in collaboration with Microsoft to implement this programme. We believe that, with Microsoft’s extensive expertise and global experience in technology, CLAS Expara Startup Accelerator programme will offer great benefits for startups in Vietnam,” said Pham Chi Thanh, chairman of the Board of Advisors of CLAS. “We believe that Vietnam is one of the most exciting start up and venture capital markets in South East Asia today. Microsoft and CLAS are absolutely the best partners we could have to launch our first accelerator in Vietnam.  We are looking forward to helping Vietnamese startups to scale and to contributing to the growth of the enterprise ecosystem in Vietnam,” said Douglas Abrams, general director of Expara Vietnam. Microsoft has actively supported small and medium enterprises (SMEs) in Vietnam, sponsoring more than 100 start-up businesses through BizSpark programme since 2009 with free access to coding tools, technical support and products, services promoting consultancy.  This mid-year, Microsoft partnered with Vietnam Software and IT Services Association (VINASA) to help Sao Khue programme’s startups develop their good potential to access to foreign markets with BizSpark and BizSpark Plus packages.  Startup packages enable software businesses to gain opportunity to use Microsoft application development tools free of charge for three years together with free three-year usage of Microsoft cloud computing tools and services, which would cost $750 per month.  It’s possible to say that Microsoft is reaffirming its strong commitment to help Vietnamese startups through empowering, reinventing productivity to help them do more and achieve more, thereby contributing to the national economic growth of Vietnam. Amway tax payments break into top 200 Amway is ranked 119th amongst the top 200 companies making the largest contributions of corporate income tax in Vietnam in 2015, according to the V1000 ranking list conducted by Vietnam Report, Vietnamnet, and Tax Journal under the General Department of Taxation. This can be considered as a result of Amway’s achievements in business activities. With annual revenues reaching almost $100 million and holding a 30 per cent market share in Vietnam only after seven years of operation, Amway Vietnam is always in compliance with the law and tax policies. In 2014, the company earned a revenue of $90 million and paid $3.6 million in taxes to the state budget. Emphasising the importance of transparency, Amway Vietnam is committed to enhancing sustainable development in Vietnam in the long term. The company keeps contributing to local socio-economic development by creating employment and well-paying jobs for Vietnamese people. This is the sixth year that the V1000 ranking list has been complied, which is aimed to encourage, honour, and acknowledge the country’s top 1,000 corporate tax contributors. The ranking is based on the amount of taxes paid in 2014. V1000 is based on independent data surveys processed by Vietnam Report. Information and data about enterprises were taken from the top 500 Vietnamese enterprises (VNR500), top 500 enterprises with the fastest growth (FAST500), and Vietnam Report’s extensive database of enterprises in Vietnam (VNR). US data protection firm in Vietnam US-based new generation data protection company Acronis has announced a partnership with NTS Group to distribute its products and solutions in Vietnam.  Acronis's solutions enable users to safely backup, migrate, protect, and recover critical data from any location and any physical or virtual environment. The growing IT market in Vietnam offers new opportunities to Acronis, whose solutions are used by over 500,000 businesses and five million consumers around the world. According to a country analysis by BMI Research, Vietnam's software sales market will expand from 9.9 trillion VND this year to 16.1 trillion VND (644 million USD) in 2019, driven partly by security products.- VN agriculture to benefit from free trade Officials and economists see Viet Nam's membership of the Trans-Pacific Partnership bringing more opportunities than challenges for the country's agriculture sector. Speaking on the sidelines of a recent seminar on TPP and its impacts on the country's agriculture sector organised by the University of Economics and Law and Van Hien University on Wednesday, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said: "I don't think the TPP will hurt Viet Nam's agriculture sector; I think it will bring huge opportunities for speedy development. "It will present Viet Nam the opportunity to assess the strength and weakness of its agricultural sector." Other TPP members are likely to become huge consumers of Viet Nam's agricultural products, which would help the country reduce its dependence on traditional markets, he said, referring especially to China. In the first eight months of this year China bought 35 per cent of Viet Nam's total farm exports and sold over 53 per cent of the agricultural inputs it imported. With tariffs scrapped or reduced to very low levels under the trade deal, Viet Nam is expected to steal a march on its non-TPP rivals in exporting seafood, furniture, rubber, pepper, cashew. The trade deal would also help Viet Nam attract more investment, including foreign, in its agricultural sector. FDI in the sector has been worth US$3.4 billion this year. Viet Nam is set to straddle the TPP rice market like a behemoth. Nguyen Dinh Bich of the Ministry of Industry and Trade's Trade Researcher Institute said Viet Nam accounts for 26.7 million tonnes of the 45.3 million tonnes of the grain produced annually by TPP members. The trade deal is expected to provide Viet Nam with an opportunity to restructure agriculture by boosting research, improving agricultural infrastructure, and developing production chains. Now the country's agriculture is mostly small scale or household-based. For instance, there are nearly 12 million farming households of whom 80 per cent cultivate less than a hectare. Four million households rear pigs, but 77 per cent have less than five; 7.9 million households raise chicken, 90 per cent have less than 49. Of 21 million agricultural workers, over 97 per cent have got no training. But Tuan said TPP membership is likely to usher in comprehensive changes, creating production chains with support from research organisations. Enterprises would be partnered by new-style co-operatives that bring small farmers together under the large scale farms programme, he added.  October consumer confidence improves as optimism jumps The ANZ-Roy Morgan Vietnam Consumer Confidence Index gained 5.8 points to 141.1 in October, rising well above the long-term average of 135.9. ANZ Bank said in a report last week that the index is also 6.4 points higher than it was a year ago, and the latest improvement stems from increased optimism about personal finances as well as future economic conditions in Vietnam. Thirty-four percent (up five percentage points month-on-month) of Vietnamese respondents said their families are "better off" financially than the same time last year, while a record low 16 percent (down six percentage points) chose "worse off". Fifty-seven (up two percentage points) expect their families to be "better off" financially this time next year, while only 4 percent (down two percentage points) expect to be "worse off", the lowest ever recorded for the indicator since the survey started in mid-2014. Fifty-seven percent (up seven percentage points) expect the country to experience "good times" financially during the next 12 months, but 10 percent (down two percentage points) expect "bad times". Sixty-four percent of the respondents expect the country to have "good times" economically in the next five years, while five percent (down two percentage points) expect the domestic economy to have "bad times". "Consumer sentiment rose both strongly and broadly in October in a sign that the Vietnamese economy continues to uniquely weather the global trade slowdown," Glenn Maguire, the chief economist of ANZ Bank in South Asia, ASEAN and the Pacific, said. "The strong ongoing performance of the external sector is having positive spill-over effects into the broader economy, particularly for domestic-facing sectors," he said. Maguire said the global backdrop will continue to remain on a weakening trend due to China's economic slowdown and the recovery trend in the United States, Japan and Europe firming but not strong. "Thus, it is important that domestic demand in Vietnam emerges as a further stabiliser to growth. Our consumer confidence index clearly confirms that this is happening," he said. According to the report, the number of respondents who felt that "now is a good time to buy" major household items edged lower to 40 percent, the lowest value recorded for the indicator since November 2014. On the other hand, the number of respondents who felt "now is a bad time to buy" also slipped by one percentage point to 11 percent, the lowest level since February 2015. Action plan adopted to actualise auto industry development plan The Prime Minister has issued an action plan to realise the automotive industry development as part of the Vietnam Industrialisation Strategy (VIS). The VIS was laid down in the Vietnam-Japan cooperation framework through 2020 and a vision towards 2030. The plan set to maintain domestic manufacturing and assembling of automobiles and spare parts, increase “healthy” auto demand with regard to infrastructure development and environmental impacts, develop supporting industries, cut down costs of production and logistics and take part in regional and global production networks by 2020. It also involves new adjustments of auto taxes and fees and simplified import procedures for automotive components from overseas suppliers. Import taxes will be cut on spare parts that are unable to be manufactured locally. Auto and automobile components will be added to the list of key mechanical products encouraged for development while businesses in automotive supporting industries can access soft loans from the state fund for development of small- and medium-sized enterprises (SMEs). The action plan also looks to develop special industrial clusters for the auto industry. Universities and colleges are encouraged to re-design curriculum aligning with business demand regarding human resources development. Furthermore, preferential policies will be offered to Japanese firms in Vietnam that provide apprenticeship programmes for Vietnamese trainees. Vietnam’s automobile sales in September amounted to 21,366, up 32 percent from the same period last year, according to the Vietnam Automobile Manufacturers Association (VAMA). The figure marked the 30th consecutive upward trending month for the market, which is forecasted to continue to rise in the last quarter of this year thanks to a number of incentives and automobile exhibition events. By the end of September, total automobile sales had reached 163,443, up 53 percent from the same period last year. Within the first nine months of this year, 83,000 imported cars had been sold worth nearly 2.1 trillion VND (93.3 million USD) were imported, up 88 percent in volume and 113 percent in value year-on-year. Japanese corporation to introduce farming machinery to Can Tho Japan’s Satake Corporation aims to invest in the Mekong Delta city of Can Tho’s agricultural equipment, General Director Nguyen Trong Hieu told municipal authorities on November 2. Satake works on high-tech machinery for agriculture, from sowing to post-harvest preservation. It plans to introduce Can Tho to seed-split and drying equipment with a designed capacity of 30-120 tonnes per batch. Municipal People’s Committee Vice Chairman Dao Anh Dung suggested Satake hold seminars to introduce products, support policies and technology transfers. Can Tho will work closely with Satake to launch product displays, he said, adding that Satake should offer affordable prices to compete with Chinese and Thai rivals. Vietnam-China trade fair opens in Ha Giang The Vietnam – China trade fair opened in the northern province of Ha Giang on November 2, featuring 500 booths by exhibitors from northern Vietnamese provinces and China. Opening the event, Vice Secretary of the provincial People’s Committee Nguyen Van Son said the fair, a joint annual effort between Ha Giang and Yunnan province’s Wenshan prefecture, is part of the national key trade promotion programme launched by the Ministry of Industry and Trade. The event offers a venue for business networking and contract signing, he added. More than 60 booths on displayed by merchants from China. The fair will last until November 8. SBV to take synchronous measures in exchange rate management The State Bank of Vietnam (SBV) will keep a close watch on the developments of domestic and global macro economies and monetary markets to assure synchronous exchange rate management, said SBV Deputy Governor Nguyen Thi Hong. The SBV official told the Vietnam News Agency that the move aims to curb inflation, stabilise the macro economy and spur national economic growth. According to Hong, the central bank predicted early this year that changes in the international financial market would impact Vietnam’s exchange rate and export-import activities. So the bank revised the interbank exchange rate two times with a total hike of 2 percent. However, the People’s Bank of China (PBoC) on August 11 announced a 1.9 percent devaluation of the Yuan, which resulted in the depreciation of major currencies in Asian countries – some of Vietnam’s big trade partners. To prevent negative impacts on Vietnam’s exchange rate and export-import activities due to fluctuation, the SBV decided to raise the exchange rate amplitude from +/-1 percent to +/-2 percent from August 12. The domestic monetary market still had no time to relax as worries over the US Federal Reserve (Fed)’s possible interest rate increase began to spread, she further said. In that context, the central bank continued to expand the interbank average exchange rate by 1 percent and the VND/USD exchange rate amplitude from +/-2 percent to +/-3 percent from August 19. Hong said the adjustments help Vietnam’s exchange rate flexibly cope with unfavourable developments in the domestic and international economies that may occur in the remaining months of this year and even the first few months of 2016. This would ensure the stability of the foreign exchange market and the competitiveness of goods made in Vietnam. With such preparations, the Fed’s interest rate rise will not affect the SBV’s exchange rate, she affirmed, noting that with the resolve to stabilise the market, the bank already has necessary solutions and equipment prepared to keep the exchange rate stable. The deputy governor said the central bank considered heightening the Vietnam dong’s position and constraining dollarisation in accordance with the Government’s guidelines an essential task. Hong cited the SBV’s decreases of US dollar deposit rates to 0.25 percent per year for individuals and 0 percent per year for organisations as examples. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR