BUSINESS IN BRIEF 10/6 Ocean Group refocuses real estate investments   The Ocean Group (OCG) will restructure its property portfolio and set top priority this year on a complex in Hanoi. It also targets to complete the Fafilm project in the capital, which has been partly completed, with apartments built, while the project’s trade center and office space for lease sub-projects are still awaiting licensing. It covers an area of 3,500 sq m in total, with investment capital of VND400 billion ($18 million). “We will put our focus on the complex project at Tran Khanh Du Street in Hoan Kiem district this year,” Ms. Nguyen Thu Thuy, OCG’s PR Manager, told VET on June 8, the day of the group’s annual general meeting. The $27 million complex project comprises office space for lease, a trade center, a hotel and apartments. “We plan to hold a breaking ground ceremony this month,” Ms. Thuy said. Two years ago OCG was embroiled in a scandal involving its Chairman, Mr. Ha Van Tham. Mr. Tham was arrested on October 24, 2014 after police found he had signed a decision approving a VND500 billion ($23.4 million) loan to the Trung Dung Commercial Ltd Company despite knowing the company’s loan application fell short of requirements. At the time, OCG, which is also the parent company of Ocean Bank, had charter capital of VND3 trillion ($141.6 million) and interests in real estate, banking, securities, retail, media, and hotels. Early last year the State Bank of Vietnam (SBV) became the sole shareholder of the ailing Ocean Bank, purchasing all shares with no exchange of cash and terminating all rights of and benefits to existing shareholders. Ocean Bank had exhibited various weaknesses in terms of management and operations, according to the SBV. In August last year Vingroup acquired OCG’s $330-million StarCity Center after acquiring Ocean Retail, another OCG subsidiary. “We are still fine in terms of finance so we can move on with four key projects this year,” said Ms. Thuy. In addition to the two projects mentioned above, OCG also plan to implement its Yen Hoa Park project this year, with investment of VND1.6 trillion ($72 million) and on an area of 112,410 sq m. The project is a cooperative effort between OCG and the VNT Co. and is expected to commence in the third quarter this year after all procedures are completed. It is also seeking an investment licenses for a complex on Le Van Luong Street in Hanoi (Licogi 19), which covers an area of 4,632 sq m and has investment capital of VND1.4 trillion ($63 million). Along with focusing on key projects, OCG has also sold certain projects and called for more investment partners in other projects in northern Quang Ninh province, the Lega Fashion House project in Ho Chi Minh City, and an urban area project in northern Bac Giang province. According to OCG’s financial report released on June 7, in the first quarter of this year it earned revenue of VND250 billion ($11.25 million), an increase of 6 per cent year-on-year, with pre-tax profit of VND9.3 billion ($481,400). Vietnamese limes exported to RoK In Jae Company from the Republic of Korea has signed a contract with the Cao Lanh Cooperative in the Mekong Delta province of Dong Thap to buy 80 tonnes of limes per month. Director of the Cooperative Pham Minh Cuong, said the limes will be shipped to the RoK company in four batches at an initial price of 20,000 VND (9 USD) per kilogramme.. The limes, produced in accordance with the VietGAP standard, have met the requirements of the company, according to Cuong. VietGAP limes are mainly grown in Binh Thanh commune in Cao Lanh district and An Hiep commune in Chau Thanh district, with the involvement of 75 households. Secretary of the Cao Lanh district Party Committee Huynh Thi Hoai Thu said the locality will expand lime growing areas in order to ensure a stable supply for export. Currently, the district has over 800 hectares of lime trees. A brand name has also been developed to boost export and domestic consumption, according to Thu. Binh Dinh’s tuna fishing benefits from Japanese technology With Japanese support in technology transfer, fishermen in the central coastal province of Binh Dinh have brought onshore 2,477 tuna fish, weighing 101 tonnes, in their most recent catch. Binh Dinh has the capacity to develop its marine economy, especially the tuna industry, but in past years, despite the increasing output of tuna fishing, little economic outcomes were recorded. Due to primitive fishing techniques, long periods at sea and poor preservation efficacy, there was only a negligible number of local tuna fulfilling export standards. Since 2015, the Japanese-based Kato group has transferred its latest fishing equipment and technologies to the province and provided relevant training courses. As part of the transfer, a local fleet of 25 boats were equipped with automatic fishing rods and 130 fishermen received training. Of the total catch from the fleet’s latest sailing between January and April, 712 tuna fish or 29 tonnes were tested to meet requirements for export to Japan. However, only 28 fish or 1.2 tonnes were shipped to the country. Binh Dinh tuna often nets bidding prices ranging between 950 and 1,600 JPY (9 – 15 USD) per kg in Japan. According to boat owners participating in the Kato project, local fishermen are yet to get used to Japanese fishing method and tools. Following the new techniques, they need to work harder and pay more for ice used for preservation. Offshore fishing and long time taken to transport the catch onshore still represents an obstacle, as there is only one tuna auction mounted in Japan per month. Consequently, not many local fishermen are taking interest in exporting tuna. Japanese experts said Vietnamese tuna has a beautiful skin colour but rather pale flesh, which does not match Japan’s consumer preference. This has resulted in the low export quantity. Local authorities are working on these shortcomings to improve tuna quality and productivity for higher export volumes. Measures include making adjustments to Japanese tools suitable for fishing conditions in Vietnam and ensuring the transport duration is under nine days. Ha Noi pushing safer farm products Ha Noi will create favourable conditions and support policies for better links between producers and traders in order to bring safe farm products to consumers. Nguyen Huy Dang, deputy director of the municipal Department of Agriculture and Rural Development, made the statement at a conference in Ha Noi on Tuesday. A representative of the Fivimart chain stressed the need to clearly define standards and conditions of licences and certificates, particularly for semi-processed animal products, and also make it easier for farmers to introduce more products to supermarkets. Truong Kim Hoa, director of the centre for varieties and transfer of breeding procedures, said the centre is strong in producing safe agri-products and is ready to cooperate with farmers to produce quality products. Representatives of some cooperatives and breeding farms committed to following safe and organic production practices. Ha Noi has 157 large-scale fields and areas producing high-quality commercial rice, 157ha of fruit trees and over 80ha of tea meeting VietGap standards. The city also has 5,000ha for growing safe vegetables, including 352.7ha applying the VietGap standards and 40ha of organic vegetables. The city has 76 key poultry breeding communes and 3,232 farms outside residential areas. It has 11 supply chains for safe vegetables and 21 supply chains for products from farm animals. Despite this progress, many limitations exist in production and distribution of agri-products because of the poor connection between producers and traders. Steel firms need import safeguards Several companies representing the domestic steel industry asked the Viet Nam Competition Authority to apply safeguard measures for their coloured plated steel, also known as galvanised paint-coated steel. The Ministry of Industry and Trade's authority said in a notice on Tuesday that it received documents from the companies petitioning for safeguards on May 24, without naming them. The firms said large amounts of cheap steel imports were causing difficulties for local producers of coloured cold-rolled steel sheets, coloured galvanised steel sheets, and black steel sheets. On Monday, the authority confirmed that the documents were sufficient and valid in accordance with Viet Nam's laws on safeguards in trade. The agency asked domestic producers and dealers of the aforementioned products to provide more information related to their business profiles, designed capacity and production yields between 2014 and 2016, and any materials and evidence relevant to the case. The companies are to submit the information to its trade remedy compliance division by June 16. "This is to serve consideration and assessment of the case so as to decide whether investigations will be carried out, and to guarantee legal rights and interests of enterprises," the agency wrote in the notice. In a related development, the Ministry of Industry and Trade in early March conducted investigations for imposing anti-dumping duty on plated steel sheet imported from China and South Korea. According to Phap luat Thanh pho Ho Chi Minh (Ho Chi Minh City Law) online, a preliminary conclusion about this case was expected to be announced on June 1, but it was later postponed by 60 days. Currently, Viet Nam imposes temporary safeguard duties of 23.3 per cent for steel ingots, and 14.2 per cent for long steel products imported from many countries and territories between March 22 and October 7 this year. Quang Ninh, VCCI ink development deal The People's Committee of the northern province of Quang Ninh and the Viet Nam Chamber of Commerce and Industry (VCCI) have signed an agreement to support local enterprises up to 2020. This forms part of the activities in the framework of a conference on implementing Resolution No 35/NQ-CP on supporting enterprises' development till 2020 in Ha Long City on Tuesday. The two sides will work together to improve the investment environment and local enterprises' competitiveness. Incentives will be offered to domestic and foreign firms to boost operations in the locality. Addressing the event, Chairman of the provincial People's Committee Nguyen Duc Long affirmed that the province has attaches significance to local businesses in generating growth. With the co-operation of the VCCI, the local business climate has remarkably improved, Long said. According to an action plan, by 2020, the province aims to have over 9,000 highly capable and competitive enterprises, including 250 large scale and financially strong enterprises. Credit predicted to grow at faster pace Credit would increase faster in the next few months thanks to new regulations on lending, experts have forecast. This year, the government is targeting a credit growth between 18 per cent and 20 per cent. However, lending rose only 4 per cent by the end of April and then slipped back to about 3.8 per cent by the middle of May. However, after the issuance of new lending regulations recently, the Bao Viet Securities Company forecast that lending in both the dong and the United States dollar would receive a boost in the next few months. On May 30, the State Bank of Viet Nam (SBV) issued Circular 06/2016/TT-NHNN which raises the risk index of receivable lending for real estate and securities from the current 150 per cent to only 200 per cent, lower than the cap of 250 per cent as proposed earlier by the SBV. On the same day, the central bank also issued Circular 07/2016/TT-NHNN to supplement and amend some articles of the Circular 24/2015/TT-NHNN on providing foreign currency loans by credit institutions and foreign bank branches. Under the new regulation, from June 1, companies who have demands for short-term loans in foreign currency can borrow from banks to satisfy their short-term capital needs. However, BVSC analysts also anticipated that the credit growth this year would be lower than the government's plan, fluctuating between 15 per cent and 17 per cent as banks would be more careful with lending related to the areas with high risk loans such as real estate. Dinh Duc Quang, deputy general director of Ocean Commercial Bank, said commercial banks tend to search the loan portfolio more stringently, especially after warnings about being careful of the growth of the real estate market. Under a report released recently, the Institute for Economics and Policy Research (VEPR) also recommended to the central bank that it control credit growth and quality. It also suggested to the central bank to avoid maintaining a loose monetary policy for too long, which led to the formation of asset bubbles. Concerning the return of high inflation, VEPR said that a credit growth target of 18 per cent in 2016 is too high, suggesting that the central bank should consider a credit growth target for 2016 at 15 per cent with credit flows aimed at the production areas. HNX trading picks up in early 2016 Ha Noi Stock Exchange (HNX) chairman Nguyen Thanh Long said the exchange reported fruitful results seven years after shifting from the stocks centre. The highlight of the results was the development of the unlisted market. Long said trading activities were more exciting in the first five months of 2016. As of June 6, 2016, the average transaction value reached more than VND5.4 trillion (US$240 million) in each trading session, an increase of VND1.1 trillion over the same term last year. Of these, listed stocks reached VND510 billion in each session, stocks on the unlisted public company market (UPCoM)  reached VND129 billion each session, and the government bond auction reached VND5 trillion in each session. The total market capitalisation reached VND1,099 trillion, including VND148.6 trillion of listed equities, and VND840 trillion of government bonds. The chairman also said there were 171 initial public offerings (IPOs) auction via the bourse from 2014 to 2016, nearly doubling in quantity compared to the period 2009 to 2013. The ratio of winning bid reached over 85 per cent of the offerings. The rate of the winning value was also double compared to the previous period. The chairman said the strong growth of HNX was thanks to the government's timely guidance and policies to remove difficulties and shortcomings in the equitisation of State-owned enterprises (SOEs). In 2014 and 2015, it was the deadline for the restructuring of many SOEs, so all the relevant agencies made efforts in the regard. In the last six months, big firms with trillions of dong in capital, such as Viet Nam Pharmaceutical Corporation (Vinapharm), Viet Nam Engine and Agriculture Machinery Company and possibly one of the three biggest telecom providers Mobifone, have launched their IPOs in the bourse. With more than 300 companies with unlisted stocks, UPCoM was now was a ‘highlight' of the HNX with the strongest growth. The current capitalisation of more than VND111 trillion ($5 billion) was 25 times bigger than when it started in 2009. The number of firms in the market reached 303, ten times bigger than 2009. Total trading volume was of VND130 billion, far better than VND4 billion in 2009. Notably, the market capitalisation of UPCoM reached VND111.2 trillion, more than double compared with the end of 2015. Seeing the growth of the market, HNX was also trying to create more excitement for investors to attract capital and increase liquidity to the market. Long said that most of the investors were interested in stocks with high liquidity and trading value. Therefore, in the first half of this year, HNX implemented numerous measures to promote synchronised market transactions, such as equitisation regulations to associate with listing and transactions in the exchange. In particular, HNX was working with others for the revision of Circular 74 that allowed faster and easier transactions for investors and the Circular 108 that enforced firms to list in the market after IPO. "All this is aimed to boost the local liquidity in the market," Long said. In another solution to boost the UPCoM, on June 24, the HNX would officially divide stocks on UPCoM into two sets of the UPCoM Premium set with stocks of good financial health and transparency and the UPCoM Warning set with restricted stocks with suspended trading due to the firms' accumulated losses or failure to report their financial statements and other problems. Korean firms to build solar power plants in Vietnam’s Central Highlands Households in the Central Highlands province of Dak Lak will soon have electricity sourced from solar power as two Korean power firms are to build photovoltaic power plant projects there. Bui Hong Quy, chief of the provincial People’s Committee, has confirmed that Dak Lak representatives were traveling to South Korea to discuss one of the projects with SolarPark Korea Co. Ltd., a crystalline manufacturer, after a memorandum of understanding (MOU) was signed by local officials and the company on April 5. The solar power plant project, with planned total investment of between US$0.6 billion and $1 billion, is expected to generate 300-500MW, according to the provincial website, saying that the project is scheduled to finish in 2056. The power facility is slated to be built at Ea Sup Thuong Lake in Ea Sup District, the website stated. The company is interested in solar-based electricity prices in Vietnam, the possibility to connect the power plant with the 500kV national power lines, solar panel installation issues, and more, with the website citing Park Hyun Woo, SolarPark’s chairman, as saying at the MOU signing ceremony.    Additionally, the Dak Lak People’s Committee has also held a discussion with another South Korea-based company and Long Thanh Infrastructure Development and Investment JSC in Hanoi about building a 120MW photovoltaic power facility in Cu M’Lan Commune, Ea Sup District. The total investment for the project is around $200 million. E-tax refunds to be piloted The General Department of Taxation (GDT) will pilot e-tax refunds in some cities and provinces in the third quarter of 2016. Deputy General Director Nguyen Dai Tri said the department is completing procedures to carry out the project. The move aims to save time and cut costs for tax payers, and improve national competitiveness as advocated by the Government. The GDT will also strengthen risk management in taxation. As of May 31, 2016, the department handled 7,501 tax refund files worth over 38.7 trillion VND (1.74 billion USD). With the support of international organisations such as the International Finance Corporation and the World Bank, the GDT is building criteria to evaluate tax payers’ compliance. PM issues budget directive The Prime Minister has asked ministries and agencies to initiate drastic and effective measures to ensure a balance in the State budget amid decreasing revenues and rising expenditure. Under Directive No22/CT-TTg aimed to enhance the implementation of the State budget and finance tasks in 2016, the PM has required the Ministry of Finance (MoF), other relevant agencies, and municipal and provincial authorities to implement tax laws effectively and strive to exceed the State budget collection estimate set by the National Assembly (NA) for 2016. The NA in January this year passed a resolution to target a collection of 1,015 trillion VND (45.1 billion USD) to the State budget in 2016 while allowing expenditure from the State budget to reach 1,273 trillion VND. Under the new directive, the MoF has been ordered not to adjust the State budget collection downwards. It must keep a close eye on the economic situation, especially changes in crude oil price and their impact, and take effective measures aimed at ensuring a balanced budget in light of rising expenditures and falling revenues due to natural disasters and climate change. The ministry must also assess the impact of free trade agreements on government revenues and propose ways to relieve adverse effects. According to director of the Vietnam Institute for Economics and Policy Research Nguyen Duc Thanh, taxes and tariffs will be reduced considerably as the many free trade agreements Vietnam has signed will come into effect shortly. Lower tax revenues from import-export duties will have a significant impact on budget revenue collection. The ministry was told to direct its tax and customs officials to strengthen efforts to collect taxes and tax arrears, prevent smuggling, trade fraud and tax evasion. The customs officials were also asked to check the certificates of origin for imported goods which enjoy low duties under the free trade agreements. The PM also directed the Ministry of Finance to propose measures to enhance the management of public capital and public assets and seek ways to use them effectively for the country’s development. The ministry should accelerate administrative reforms, especially in the fields of taxation and customs, so that Vietnam can meet tax-related criteria in ASEAN-4. To bolster State budget revenue, the PM has instructed the Ministry of Industry and Trade to boost sustained exports while requiring the Ministry of Planning and Investment to improve the business climate and support domestic small- and medium-sized enterprises, besides creating a favourable business environment to attract foreign investment. Under the directive, the PM has also asked provincial and municipal governments nationwide to try and increase the collection value to the State budget this year in their respective locations by at least 14 percent to 16 percent against last year. For companies that the government has full ownership of, the PM has asked them to contribute all their remaining profit to the State budget, after allocating a part of it to their legal funds. They are not allowed to retain the profit to add to their charter capital this year. Besides the budget collection, the PM has also called for measures to intensify the supervision and transparency of budget spending in a move to keep the deficit under control. According to experts, the government must take drastic measures to better control the budget as it is reported that the budget deficit hit 70 VND.1 trillion in the first five months this year. Statistics from the finance ministry showed that budget revenue from January to May was 396.2 trillion VND, equal to only 39.1 percent of the annual estimate, while budget spending reached 466.3 trillion VND, equal to 36.6 percent of the annual estimate. In the first five months, the country spent 64.55 trillion VND on foreign debt settlement, up 5.3 percent year-on-year. It also disbursed VNĐ68 trillion for development projects and 332 trillion VND for national defence and administrative governance. Tumbling crude oil prices cut budget revenue considerably in the period, with revenue from oil in the first five months of 2016 falling sharply by 48.1 percent to 15.9 trillion VND, accounting for only 4 percent of total budget revenue. Under the directive, the PM has also asked the State Bank of Vietnam to pursue a flexible policy to curb inflation, stabilise the economy and boost growth to be able to achieve the economic growth target of 6.7 percent this year, contributing to stable government income.- Vietnamese, Italian localities beef up economic ties Vietnamese Ambassador to Italy Cao Chinh Thien said that he hoped that Milan city and the region of Lombardy will become a pillar in the relations between Vietnam and Italy. He made the statement during a meeting with Vice President of Lombardy Region Fabrizio Sala and Mayor of Milan city Giuliano Pisapia, which was held following trade promotion activities in the Liguria and Veneto regions in north Italy. Ambassador Thien noted that the two sides should enhance locality and business delegation exchanges. Sala spoke highly of Vietnam’s achievements in socio-economy and international integration as well as the two countries’ sound relations in past years while underscoring Vietnam’s contributions to Expo Milan 2015. He highlighted that enterprises in Lombardy are interested in business opportunities in Vietnam and Lombardy encourages and facilitates its enterprises to access investment information and operate in Vietnam. Milan Mayor Giuliano Pisapia said that direct flights connecting Vietnam and Italy should be set up to promote trade, tourism and cultural exchanges. He added that Italian small and medium enterprises have made robust achievements in the Vietnamese market. Ambassador Thien also attended and delivered speech at a conference on the Vietnamese economy, tourism and culture held by the Italy-Vietnam Chamber of Commerce and the Association of Vietnamese Entrepreneurs in Italy. A delegation from north and north-west Italy will visit Vietnam to study business-investment opportunities by the end of this year. Sugar output drops 1.4 million tonnes Sugar mills nationwide turned out 1.2 million tonnes of sugar in the 2015-2016 sugarcane crop, a fall of 1.4 million tonnes from the previous crop, according to the Vietnam Sugarcane and Sugar Association (VSSA). This is the second consecutive sugar crop with a sharp fall in production. Sugar supply woes pushed domestic prices higher, the VSSA said, adding that each kilogram of domestic sugar fetches between 16,500 VND (0.74 USD)-17,100 VND (0.77 USD) in 2016 while it was priced at 12,750 VND (0.57 USD)-13,400 VND (0.6 USD) last year. To ensure sufficient sugar for domestic consumption, the Ministry of Industry and Trade asked the Government’s permission to import 200,000 tonnes of sugar. According to the Ministry of Agriculture and Rural Development, the country has 305,000 hectares of sugarcane crops with an average yield of 65.3 tonnes per hectare. Vietnam to import 450,000 tonnes of raw cashew nut Vietnamese cashew nut processing firms plan to import 450,000 tonnes of raw materials worth over 600 million USD this year, according to the Vietnam Cashew Association. Domestic cashew processors have recently not had enough materials to process nuts for export. Raw cashew ouput this year is likely to drop 20 percent and hit only 400,000 tonnes. The Ministry of Agriculture and Rural Development has asked localities to take measures to create stable cashew production areas. Vietnam is expected to have 300,000 hectares of cashew growing area by 2020, up 5,000 hectares against this year. It is expected that the amount of processed cashew exports this year will reach 350,000 tonnes with a value of 2.5 billion USD. In the first two months of this year, enterprises exported 37,000 tonnes of cashew nuts worth 278 million USD, a year-on-year rise of 5.3 percent in volume and 11 percent in value. Measures proposed to manage public debt level Public investments that exceed the State budget’s payment capacity should not be implemented, Finance Minister Dinh Tien Dung said, referring to it as one of a string of measures to ensure public debt stays within safety limits. The government’s investment should be narrowed to go into key economic sectors, while conditions for government bailouts must be tightened, he stressed. Minister Dung admitted that public debt has been rising quickly in recent years but is still under control. He affirmed that his ministry has been working with other ministries and sectors to keep public debt within safety limits. As of December 31, 2015, the country’s public debt made up 62.2 percent of its Gross Domestic Product (GDP) and its foreign debt was equal to 43.1 percent of GDP. Both numbers are still within safety limits set by the National Assembly, 65 and 50 percent, respectively. Meanwhile, the Government’s debt reached 50.3 percent of GDP, which, however, surpassed the allowed 50 percent threshold by 0.3 percent, according to the Ministry of Finance. Dung stressed the need to urgently restructure public debt towards increasing the proportion of long-term loans to reduce pressure on payment in the short-term. It should be coupled with stablising the macro-economy and ensuring national financial security as top priority. For Dr. Nguyen Dinh Cung, Head of the Central Institute for Economic Management, the Government should build a public-debt management institution with improved forecast and analysis capacity and transparent operation. Independent public debt audit will contribute to minimising State budget’s wastefulness, reducing unnecessary spending and public debt, Cung suggested. Economic experts pointed out that managing public debt also requires monetary, exchange rate, structure and foreign trade measures. At a conference on international experience on public debt management recently co-held by the Agency for Debt Management and External Finance and the International Monetary Fund (IMF), John Gardner, Head of the IMF expert delegation, said effective public debt management should be based on a wide range of criteria, such as the local/foreign currency structure, average payment time, the debt scale with payment time of less than one year. According to the Agency for Debt Management and External Finance, the agency will work with relevant agencies to develop the domestic capital market to diversify bond terms and issue government bonds with terms of at least five years and expand the average terms of government bonds during 2016-2020 to six to eight years to mobilise capital.- Transport firms up for ODA after restructuring Enterprises in the transport sector have become more eligible for official development assistance (ODA) after being restructured, officials say. Many international organisations, including the World Bank (WB), Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA), alongside sponsors from France, the Republic of Korea and China, have been funding traffic infrastructure projects in Vietnam. However, strict requirements by the sponsors, related to financial capacity and experience, left hardly any chance for the participation of State-run companies in ODA-funded projects in the past. For example, the WB did not let State utility companies bid for its projects, enabling only foreign companies to become its major contractors. According to Nguyen Duc Kien, General Director of the infrastructure development Thang Long Corporation, "domestic companies usually had to work as sub-contractors for foreign firms, being put at many disadvantages." The situation is different now. Vu Anh Minh, Director of the Ministry of Transport's Enterprise Development Department, said numerous firms have been equitised and State capital has been withdrawn from many other businesses in the sector over the past two years. With the reorganisation, they are now capable enough to contract for major projects with ODA capital, either independently or jointly with international contractors, he said. Minh said earlier this year that the ministry would accelerate equitisation of transport corporations. It planned to complete capital withdrawal from several firms, including Cienco 5, Cienco 6 and Cienco 8 in 2016. "The sooner enterprises get off ‘their parents' nourishment', the more experience and resources they will gain to better adapt to market developments," he said. "This is especially meaningful when we are integrated more deeply into the global economy." Between 2011 and 2015, 137 businesses in the transport sector went public, 67 more than the target that the ministry set for the period, according to the ministry's data. Vietnam Expressway Corporation General Director Mai Tuan Anh said any domestic enterprises could now participate in ODA-funded projects of his company provided they prove adequate financial capability and experience. The company strictly selected contractors using international competitive bidding procedures, he said. According to Anh, JICA financed a part of the Da Nang-Quang Ngai highway in the centre of the country, with Vietnamese enterprises executing seven of eight construction packages, while a joint venture between Viet Nam and Spain was responsible for the rest of this part. With regard to three packages funded by JICA in the Ben Luc-Long Thanh highway project in the south, Vietnamese and Japanese enterprises jointly became contractors. Nguyen Tuan Huynh, Chairman of Civil Engineering Construction Corporation No 4 (Cienco 4), said the State-run firm transformation into a joint stock company in mid-2014 was a landmark for its development. This created better conditions for it to expand markets and approach large-scale projects funded by WB, ADB and JICA. Two of the projects were the Noi Bai-Lao Cai highway in the north and the Nhat Tan bridge in Hanoi. Huynh said Cienco 4 was actively renewing management methods, rationalising organisational structure and enhancing operational efficiency. It now would focus on improving technology, financial capacity and human resource quality to stay competitive for ODA project requirements. Kien from Thang Long Corporation said his firm would promote cooperation with foreign contractors to better respond to opportunities of ODA projects. According to the public-private partnership project management board under the transport ministry, it is important to develop cadres for equitised businesses. Besides capital and equipment, human resources are reportedly of the most decisive factors in determining tender winners. Hanoi economy shows rosy signs in first five months Hanoi drew 1.6 billion USD in newly-registered and additional capital from foreign direct investment (FDI) projects in the first five months of this year. The figure represents a three-fold increase from the same period in 2015 and meets 78.9 percent of the target, according to Nhan Dan (People’s) newspaper. From January to May, up to 9,367 businesses were established in Hanoi with combined capital of 74.6 trillion VND (3.36 billion USD), up 59 percent over the same period last year. FDI worth nearly 10.16 billion USD flowed into Vietnam in the first five months of this year, an increase of 136.4 percent from the same period last year, according to the Ministry of Planning and Investment. As of May 20, Vietnam had 907 new FDI projects with a total registered capital of 7.56 billion USD, a year-on-year rise of 155.9 percent while 425 adjusted-capital projects brought in 2.59 billion USD, up 93.3 percent from last year. Some 5.8 billion USD was disbursed, rising 17.2 percent against a year ago. A large amount of the investment was in the processing and manufacturing sector. The Republic of Korea remains the top investor among 45 countries and territories that invested in Vietnam in the period. Gypsumboard manufacturing plant comes into operation  Knauf Viet Nam Co., Ltd yesterday officially introduced its new Gypsumboard Manufacturing Plant in the northern Hai Phong Port City. With a total annual capacity of 20 million m2 gypsumboard, Knauf Vietnam has started to supply the Vietnamese market and increase its brand awareness through the region. Early customer feedback has been very positive in terms of how the product looks, performs and its usability and Knauf branded product has been increasing its market share. "After only two years of operation in Viet Nam we have gained product presence in key market segments and regions, which we believe will increase with the supply of our new locally produced products," David Victor Thomas, general director, said Knauf StandardShield 9.5mm thick with dimension of 1220x2440mm and 1210x2420mm is a product with high performance in terms of flexural strength, sag/nail pull resistance that has passed all strict requirements of TCVN 8256:2009 and ASTM C1396. "Knauf believes that the launching of our new local manufacturing plant in Hai Phong will help develop not only our business but also our customers businesses and the Viet Nam gypsumboard industry. We are committed to supplying our customers with the best products, on time deliveries and services to support them in achieving their business goals," he added. The plant became operational in only one year of construction. Knauf Group which was founded in 1932 is a multinational producer of building materials and construction systems that operates more than 220 production plants in over 60 countries with nearly 25,000 employees. Recently, Knauf has been expanding into a number of East Europe and Asian markets. Capital stops issuance of $178 million bonds The capital stopped the issuance of bonds worth VNĐ4 trillion (US$177.8 million), which were to be used for municipal development in 2016. Ha Noi State Treasury Director Dao Thai Phuc said although the local People's Council had adopted the issuance of the five-year bonds, it was then stopped to save costs, reduce public debts and avoid capital dispersal in capital construction. The city would use its existing resources to complete the scheduled construction and the traffic projects, he said. According to the treasury, budget revenue totalled more than VND73 trillion in Ha Noi during the first five months of this year, representing 43 per cent of the annual quota. Revenue from import-export activities reached some VND5.9 trillion, while some VND66.4 trillion came from domestic sources. Budget spending in the city reached nearly VND47.5 trillion as of May 31. FLC estimates VND500 billion pre-tax profit in Q2 The FLC Group on Tuesday estimated the group would gain a pre-tax profit of VND500 billion (US$22.32 million) in the second quarter this year. At the annual shareholders meeting on Tuesday, the real estate developer also announced targets for consolidated revenue of VND7 trillion and pre-tax profit of VND1.2 trillion in 2016. The group expected its revenue this year would come not only from residential real estate like before, but also from tourism resorts. This year, the group's three resorts in Sam Son, Vinh Phuc and Quy Nhon have been put into operation. To boost business plans, besides focusing on corporate governance, FLC also plans to issue more shares to increase charter capital to nearly VND7.095 trillion this year. In 2016, FLC also expects to develop some potential business segments, such as agriculture, pharmacy and healthcare services.           FLC reported impressive consolidated revenue of VND5.326 trillion last year, up 258 per cent from the previous year. Its pre-tax profit also surged sharply by 255 per cent to VND1.158 trillion. The group paid dividends through shares worth VND748 billion, while contributing VND272 billion to the State budget. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR