BUSINESS IN BRIEF 5/6 SCIC releases full financial statement   The State Capital Investment Corporation (SCIC) this week announced for the first time its full financial statement for 2015, revealing a sharp rise in revenue and profit. In the past, the largest State-owned investment fund, which was set up in 2005, often released only financial reports of the parent company. The corporation has many investments which can be considered as subsidiaries (over 50 per cent ownership in the charter capital) and affiliated companies (over 20 per cent ownership in charter capital). According to the statement, SCIC's revenue rose sharply from VND7 trillion (US$311 million) in the previous year to VND10.5 trillion in 2015 thanks to the sales of its investment. The corporation's earnings from divestment doubled to nearly VND4.6 trillion last year from VND2.2 trillion in the previous year. Besides this, SCIC's revenue from dividend also rose by VND1.3 trillion to over VND4.9 trillion. However, due to the low interest rates, SCIC's revenue from deposit interests and bond investment fell by VND100 billion to VND1.040 trillion. According to reports, one of the most stable and important sources of SCIC's revenue last year was the dividend of roughly over VND2.7 trillion paid by Vinamilk. It is estimated that the company will contribute at least VND3.2 trillion to the corporation's revenue this year. With SCIC's capital trading and investment operation costs consisting of mainly the original costs of the sold investments, the corporation reported a sharp rise in consolidated pre-tax profit from VND6 trillion in 2014 to nearly VND8.6 trillion in 2015 and an after-tax profit from VND5.5 trillion to VND7.85 trillion last year. SCIC's total consolidated assets by the end of last year reached over VND73.3 trillion, including over VND37.4 trillion in short-term investments and VND32.4 trillion in long-term investments. These figures included the corporation's investments and other investment sources it managed for the State via a fund for supporting enterprises in restructuring and development. Viet Nam promotes lychee exports this year  Viet Nam's enterprises are ready to promote lychee exports this year, the Ministry of Agriculture and Rural Development (MARD) said. This year, lychee output was expected to reach 130,000 tonnes in Bac Giang Province and 50,000 tonnes in Hai Duong Province. The lychee output in Bac Giang was estimated to reduce by 10 per cent against 2015. But the output of high quality lychees under VietGap and GlobalGap, national and international quality standards for farming products, have been increased, Bac Giang Province reported. Hoang Trung, head of MARD's Plant Protection Department, said the department has granted 29 codes for 300ha for growing lychees, mostly located in Bac Giang for exports to high demand markets. Many enterprises have come to the lychee growing regions with codes to order lychees for exports, he said. They would focus on exporting to Australian markets while also paying attention to the United States, European Union and the Association of South East Asian Nations markets. The Ha Noi Irradiation Centre is ready to implement irradiation services for fruit exports this year to reduce spending for lychee export activities. The department has complemented procedures to get recognition from Australia for certificates of the centre, he said. Duong Van Thai, deputy chairman of the People's Committee of Bac Giang Province, said the province expected to sell 78,000 tonnes of lychee on the domestic market and export 52,000 tonnes this year. For export markets of Vietnamese lychees, last year, China was the largest export market with an export volume at 100,000 tonnes, accounting for 50 per cent to 60 per cent of total export volume. This year, Trung said the department has asked phytosanitary agencies in Lao Cai and Lang Son provinces to create favourable conditions for issuing export licences to lychees as soon as possible. The deputy head of customs department of Lang Son Province, Vi Cong Tuong said the Lang Son customs department would create conditions for lychee exports, including transport, warehousing and administrative procedures. At present, Viet Nam has negotiated with China to accord highest priority to export lychee to China and then other fruits, reported chinhphu.vn. Meanwhile, the People's Committees of Lao Cai, Bac Giang, Hai Duong and Hung Yen provinces which account for a large lychee-growing area in the country met in late May to promote the exports of Vietnamese fresh lychees to China via the Lao Cai border gate. Authorities pledged to facilitate administrative procedures, ensure transport safety, and enhance market management to reduce frauds in the trade of the fruit, reported vietnamplus.vn. Deputy Director of the Lao Cai Department of Industry and Trade Nguyen Truong Giang said the provincial management board of economic zones has asked farmers to study the market to have a proper export policy in place. The province also advised farmers and businesses to export via trade contracts to avoid the risk of economic losses. It pledged to create the best conditions for firms to export fresh lychees through Lao Cai border gate, he added. Yang Peng, deputy chief of the Hekou district in China's southern Yunnan province, said that the Chinese side will make it easier for bilateral trade and easier customs procedures. The district's authorities asked Vietnamese firms to strictly follow the customs procedures of the two countries, he added. More than 26,000 tonnes of fresh lychees worth US$11.6 billion were exported to China via Lao Cai international border gate in 2015. In 2016, the volume of fresh lychees exported via the gate is expected to equal the previous year's amount, or about 420 tonnes per day. VN exports surge 6.6%: GSO The country generated more than US$67.7 billion from exports in the first five months of this year, surging 6.6 per cent against the same period last year, according to the General Statistics Office (GSO). Of the sum, domestic enterprises contributed over $19.44 billion, up 3.9 per cent year-on-year, while the remainder of more than $48.26 billion came from foreign-funded firms, up 7.7 per cent year-on-year. Key export products recording a strong increase in export value in the reviewed period included: vegetables and fruit, growing 53.7 per cent to $1 billion; telephones and their components, up 20.6 per cent to $14.4 billion; machines and equipment, with a rise of 16.2 per cent to $3.6 billion; and handbags, hats and umbrellas, up 12.1 per cent to $1.3 billion. Other products with encouraging export growth were: rice, up 8.4 per cent; electronics, computer and parts, up 5.4 per cent; footwear, up 6 per cent; and seafood, up 5.6 per cent. But the first five months saw significant reductions in export turnover of some major export items, such as: crude oil, slumping 49.2 per cent to $883 million; steel and iron, down 10.2 per cent to $649 million; and cassava, down 22.7 per cent. The GSO also reported that from January to May, the value of national imports modestly decreased by 1 per cent year-on-year to above $66.34 billion, with $27.2 billion from domestic enterprises and $39.1 billion from foreign-funded businesses. That resulted in a trade surplus of $1.36 billion in five months, lower than the $1.46 billion recorded during the same period last year. The office said China remained Viet Nam's largest import market. During the period, Viet Nam paid $19.2 billion for imports from China: five times and six times higher than figures from the EU and the US, respectively. Viet Nam's five-month import value from this neighboring nation also doubled that from ASEAN countries and tripled that from Japan. Viet Nam has set the twin goals of fetching a total of $178 billion from exports by year-end, up 10 per cent from a year ago, and controlling trade deficit at 5 per cent. Experts forecast that this will not prove a very difficult target, as export doors will be more open after some of the bilateral and multilateral free trade agreements recently signed by Viet Nam take effect. SBV set to extend $1.3b housing package The State Bank of Viet Nam (SBV) on Monday instructed commercial banks to continue disbursement of the VND30 trillion (US$1.3 billion) housing package for contracts signed before March 31, 2016. Under the dispatch No 3955/NHNN-TD on programme to support housing loans according to the Resolution No 02/NQ-CP, the disbursement could be extracted from commercial banks while waiting for instruction from Prime Minister Nguyen Xuan Phuc. The document took effect yesterday. SBV will have a guiding document on extension of refinancing after receiving instructions from the PM. In addition, the central bank also submitted a document No 3954/NHNN-TD to the PM to extend refinancing for credit contracts signed before March 31, 2016, for individuals and households borrowing money to buy, rent or repair their houses till the end of this year. The total refinancing amount would be around VND32.7 trillion including the current VND30 trillion. Property developers are awaiting new policies that could help low-income earners buy an apartment after the VND30 trillion package is disbursed. Nearly three-fourths of the VND30-trillion low-interest home loan package for low-income buyers has been disbursed, according to the Department of Housing and Real Estate Market Management, under the Ministry of Construction. Local banks have pledged a total of VND24.2 trillion in loans for nearly 49,900 individuals and households. Of these, more than 16,200 households have borrowed VND6.8 trillion to buy budget homes, 26,000 with some VND13.9 trillion to buy commercial homes, and 7,500 with VND3.5 trillion to repair or construct new homes. Besides, banks have pledged loans to 60 projects with a combined value of VND7.7 trillion, including 16 projects in Ha Noi worth VND3.7 trillion, and eight projects in HCM City worth nearly VND1.2 trillion. Nguyen Tran Nam, chairman of Viet Nam Real Estate Association (VNREA), said that the package was reasonable as the total amount had nearly been disbursed. The State Bank of Viet Nam has assigned four commercial banks including Vietcombank, BIDV, Vietinbank and Agribank to issue conditions and methods for preferential loans after termination of the package. However, there has been no move from the banks as they have to disburse the remaining funds. Some social housing projects which have been under construction have faced difficulties. For example, The Vesta project in Ha Noi's Ha Dong District with 1,900 apartments is facing rough weather. Pham Minh Tuan, deputy general director of Hai Phat Investment Company, the project's investor, said the project was certified to be eligible for accessing the preferential loans at the end of the package. Tuan said that if they took commercial loans the prices of their apartments would rise, thus making homes unaffordable for low income earners. "We have to await new policies from banks," he added. Tran Thu Trang, from Dong Da District, said that she was looking forward to some new policies from the government to own a home as her low salary was not enough for her to afford an apartment without support from the package. Exchange rate policy hits farm exports The weakening of many currencies against the U.S. dollar has cut into the competitiveness of Vietnam’s farm exports, heard a workshop in Hanoi last week. Nguyen Trung Kien from the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) said that in 2014-2015, Brazil’s real, Colombia’s peso, India’s rupee, Indonesia’s rupiah, Malaysia’s ringgit and Thailand’s baht fell by 42%, 37%, 5%, 13%, 19% and 5% against the greenback respectively. But the Vietnamese dong currency dropped by a slight 3% versus the dollar, Kien told the workshop on prospects of the agricultural industry held by the institute. In addition to the countries whose farm produce directly competes with Vietnam’s products and whose currencies weakened last year, the euro and Japanese yen have weakened against the dollar. This has left a double effect on local farm produce exporters.    According to agricultural experts, agricultural production is forecast to recover slightly in the second half of this year as La Nina will bring more rain in India, Thailand and Vietnam. The Food and Agriculture Organization (FAO) has forecast farm produce prices would be stable in the coming time. Vietnam therefore should focus on increasing the quality of products and tap potential markets. International Monetary Fund (IMF) forecasts show rice prices could bounce back in quarter two but still be 7.4% lower than last year. This year, rice supplies have dipped due to drought, salination and high inventories in China, Thailand and India. Rice output may recover in the second half. The IMF forecast rubber prices may gain 4.7% against last year. On the contrary, black pepper prices are projected to tumble this year as a result of large inventories and massive domestic production. An IPSARD report showed Vietnam’s coffee exports to major traditional markets like Germany, Italy, Japan and Russia declined last year, so did rice exports to China and the Philippines. Some products with high export revenues last year were wood and wooden products (up 10.7%), cashew (21%), vegetables (23%) and black pepper (5%). These products continued to post good export growth in this year’s first quarter. Stock market capitalization to GDP ratio to be increased to 70% One of the key priorities is to improve the effectiveness of the financial market, including the stock market and insurance market, said Minister of Finance Dinh Tien Dung. The move aims to raise the readiness of the country’s financial services, he said, adding that the Ministry has designed a plan to realize this target. Dung said the Ministry will increase the stock market capitalization to GDP ratio to 70% from the current 34.5% by 2020. The Ministry will strive to heighten the business environment and national competitiveness to the average level of ASEAN-3 countries (including Singapore, Malaysia, and Thailand) and reduce the time required for tax and social premium payment to under 155 hours/year. The Ministry also targets to reduce time required for customs clearance to 41 hours for exports and 46 hours for imports by beefing up the reform of customs management and introduction of e-invoices. Dung also pledged to study the news saying that enterprises have to pay tax and fees up to 40% of profits and report to the Government./. Cargill opens US$8.5 million animal nutrition plant in Nghe An Cargill has opened a US$8.5 million animal nutrition plant in the Nam Cam Industrial Zone inside the Dong Nam Economic Zone in Nghe An Province, bringing Cargill's total number of animal feed mills in Viet Nam to 11. The new facility, which opened on May 28, provides animal feed for livestock and will have a total capacity of 66,000 metric tonnes per year. It incorporates Cargill's uncompromising approach to feed safety, ingredient quality and product integrity. Speaking at the press conference in HCM City on May 30, Jorge Becerra, country representative and managing director of Cargill's feed and nutrition business in Viet Nam, said Viet Nam was one of the leading markets for animal feed in Southeast Asia. The company is on track to expand its production line in the country, including building a new $30 million animal feed mill in Binh Duong with the latest technologies and an $8 million expansion in Ha Nam plant starting next month, he said The two projects are expected to be completed in 2017. The company also added a new production line at its plant in Dong Thap Province in the first quarter this year to enable it to increase production of specialty aquatic feed. It also committed to building 100 schools across rural areas in Viet Nam by 2020 after building 78 schools by May this year. Entering Viet Nam in 1995, Cargill Viet Nam is one of the leading animal nutrition companies in the country, producing premixed and compound feed. It also deals in food and beverage ingredients, grain, oilseed and metals. Sarena Lin, president of Cargill's global feed and nutrition business, said: "Viet Nam is one of our best performing markets in our animal nutrition business globally." Financial-monetary advisory council asked to consult in major projects The National Council for Financial and Monetary Policy Consultation should promote its advisory role in major projects in the field, suggested Deputy Prime Minister Vuong Dinh Hue during a meeting with the council’s members on May 31. Deputy PM Hue, who is also head of the council, requested the council to focus on proposals to re-distribute the State budget, restructure the public debt and tackle bad debts in credit organisations. The agency should also work on projects to mobilise gold and prevent dollarization, and consider the restructuring of State-owned enterprises to strengthen transparency, he added. Under the PM’s Decision 59/2011/QD-TTg, the council is designed to advise the Government and the PM on major policies, projects and proposals as well as other important issues in the fields of finance and monetary management at the macroscopic level. According to Deputy PM Hue, the council serves as a mechanism to bring together managers and researchers in the area to provide consultations in macro-economy management. As scheduled, the fist meeting of the council is slated for June, aiming to review the macro-economic management in the first half of this year and give advice to the government and PM on how to fulfil targets for the rest of the year. The building of a working agenda for the whole tenure of the council will also be discussed. Deputy PM Hue also asked members of the council to give ideas on how Vietnam should manage financial and fiscal policies when Vietnam joins the ASEAN Economic Community. Deputy PM urges to double effort to fight smuggling No areas should be sealed off in the combat against smuggling, trade fraud and counterfeit goods, said Deputy Prime Minister Truong Hoa Binh. The official made the request at a working session with the National Steering Committee on Prevention and Control of Smuggling, Trade Fraud and Fake Commodities (Committee 389) in Hanoi on May 31. He asked the committee to guide ministries, agencies, localities and competent agencies to perform well the tasks put forth in the Government’s Resolution No. 41/NQ-CP dated June 9, 2015 on stepping up efforts against smuggling, trade fraud and fake goods in the new situation. Besides this, more effort should be focused on inspections in a bid to bring into light those tolerating these bad deeds or not fulfilling their assigned tasks, said Binh, who is also head of Committee 389. In the same vein, the committee needs to complete relevant mechanisms and regulations to closely supervise the temporary import for re- export model, as well as business activities relating to food safety, the Deputy PM requested. Another job is to raise public awareness of the harmful effects caused by smuggling, trade fraud and counterfeit goods, he said, urging the committee to play a more active role in learning about serious cases of public concern and closely coordinate with the press, socio-political organisations and associations in this regard. The committee reported that in the first five months of this year, especially during the Lunar New Year festival, complicated smuggling and trade fraud took place nationwide due to increasing consumption demands. Violations mainly occurred in border areas and via air and sea routes with drugs, firecrackers, explosives, oil and gas, wild animals and their products, wine, tobacco, food, pharmaceutical products, cosmetics and electronics as the main smuggled goods. Notably, there have been organisations and individuals illegally using chemicals and addictives in production, cultivation and animal husbandry, which have potentially affected human health and sparked public worries. Thanks to the committee’s guidelines, the combat, particularly in major cities and border provinces, has shown positive signs, contributing to ensuring national security and social safety. During January-May, competent agencies handled more than 78,300 cases of smuggling and trade fraud and contributed nearly 5.3 trillion VND (238.8 million USD) to the State coffers. The most noteworthy of these was a case where 1.84 kg of cocaine was seized at Ho Chi Minh City’s Tan Son Nhat International Airport; another case with 143.5 kg of elephants tusks and their products at Noi Bai International Airport in Hanoi, and a case where 42,000 methamphetamine pills were confiscated in the central province of Quang Tri. HCM City wary of retail competition The HCM City administration has instructed relevant departments to take targeted measures to help local retailers strengthen their competitiveness and retain market share before they lose out to foreign rivals. Speaking at a meeting to review the city's socio-economic performance in the first five months and plan for June, People's Committee Chairman Nguyen Thanh Phong ordered the Department of Industry and Trade to complete zoning plans for commerce-services development, develop the city's brand name and identify its key products. Leading South Korean retailers in Viet Nam regard the country as a promising growth market and will source products from small and medium-sized enterprises in Korea, according to Phong. Japan's Aeon is working towards making Viet Nam its second biggest retail market in Asia after Malaysia. Thai retailers have entered the country, acquiring Metro, Big C Vietnam, e-commerce firm Zalora and others. Foreigners now make up 51 per cent of the HCM City retail market, and "If we do not have a suitable development strategy for the retail market, it will be dominated by foreign investors in future," he warned. This would adversely affect domestic production, he added. Many delegates urged the city to soon adopt measures to support local retailers and producers. Phong said he would hold a meeting on how to develop the retail market in a sustainable manner. He urged departments, agencies and districts to continue with measures to achieve the city's socio-economic targets. "The city needs to focus on promoting production and trading, resolve difficulties faced by businesses and improve the investment environment to attract more investment from domestic and foreign investors," he said. Strengthening trade promotion activities to boost export and soliciting investment in targeted sectors would be among the tasks the city would focus on, he said. According to a report tabled by the People's Committee at the meeting, the city economy achieved robust growth in the first five months, with the retail and service sectors and exports reporting a higher turnover than in the same period last year. Retail and services revenues are estimated at VND288.55 trillion (US$12.93 billion), a year-on-year increase of 11.2 per cent. Exports increased by 1.2 per cent to reach $11.89 billion, with coffee, rice, computers, electronic products and accessories seeing a significant rise. Industrial production rose by 6.4 per cent year-on-year, with some sectors such as machinery and equipment, beverage, electronics, computers and optical devices enjoying high growth. The city's four key industries – mechanical engineering; electronics; chemicals; and rubber, plastics and food processing – achieved higher growth than a year earlier. The tourism and transport sectors also enjoyed good growth. Part supplier industry asks for more funding A shortage of capital support for the part supplying industry is hindering the development of the sector, which is crucial for the country's economic development, participants at a forum said yesterday. At the event held by the Institute for Industrial Policy and Strategy under the Ministry of Industry and Trade to discuss capital solutions for the part supplying industry, experts said that policy and capital support remained inadequate, which was seizing opportunities from firms. According to Nguyen Anh Son, the institute's director, the industry was a major driver of the nation's industrialisation progress, but investment in the industry did not parallel its achievements, given the tight State investment in the part supplying industry. In addition, complicated procedures made access to State financial support difficult while firms were thirsting for capital to invest in equipment and technology. Tran Van Quang, Deputy Director of the Local Science and Technology Development Department under the Ministry of Science and Technology, said at the conference that there were now several funds supporting part suppliers, but the access to incentives remained limited due to complicated procedures and high requirements. Quang said that bottlenecks in the operation of State funds in providing capital to the part supplying industry must be tackled, such as allowing firms to open accounts at commercial banks besides only the State Treasury, which is the current practice. Financial expert Can Van Luc said funds that supported small- and medium-sized enterprises, science and technology development and the part supplier industry must be used to enhance its operation efficiency. In addition, Luc said that commercial banks should have loan packages with preferential terms for part suppliers while the role of Viet Nam Development Bank should be promoted. In November 2015, the Government issued a decree on developing the part supplying industry, which included policy support and incentives for the industry. Viet Nam had about 1,380 businesses operating as part suppliers out of a total of 500,000 firms divided into the three groups of mechanics, electronics, and rubber and plastic. Promoting business connections between Thailand, Viet Nam More than 100 trade officials and business executives attended a training course on maximising business opportunities by taking part in international trade shows held by the Viet Nam Trade Promotion Agency and the Thailand Convention and Exhibition Bureau in HCM City on May 30. The training sought to improve Vietnamese firms' skills in participating in trade shows abroad, Bui Thi Thanh An, chief representative of Vietrade in HCM City, said. It is an effective way to market and sell a company's products, especially in foreign markets, she said. But not all businesses know how to capitalise on the business opportunities fairs and exhibitions bring or even how to effectively participate, she said. Vietrade helps businesses promote their products abroad through national trade promotion programmes, and also collaborates with foreign organisations to enable more Vietnamese firms to market their products abroad, she added. At the event, TCEB introduced the "Thailand Extra Exhibition" that aims to provide support to international trade visitors looking to grow their business via exhibitions in Thailand. Supawan Teerarat, strategic and business development vice president at TCEB, said Thailand organises a slew of exhibitions on the food industry, agriculture, automation, health care, infrastructure, and others. More and more Vietnamese businesses have been visiting trade shows in Thailand in recent years to explore business opportunities, accounting for 6.63 per cent of the all foreign visitors in 2013-15, she said. Exhibitions specialising in the food and agriculture, automotive and medical and healthcare sectors attract high numbers of Vietnamese corporate visitors, she said. Thailand is a major trading partner for Viet Nam in Southeast Asia, with bilateral trade reaching $1.6 billion in the first two months of 2016. Vietnam posts US$19.25bn annual trade surplus with G7 countries Vietnam’s trade ties with the Group of Seven countries has been growing rapidly over the last ten years, with the Southeast Asian country posting healthy trade surpluses annually with the bloc, the latest customs data show. G7 is a group consisting of the world’s seven most advanced economies, Canada, France, Germany, Italy, Japan, the UK, and the US. Vietnam’s total trade with the group has risen from US$25.31 billion in 2006 to US$95.42 billion in 2015, or an average annual growth rate of 17.1%, the General Department of Vietnam Customs said on May 29. Vietnam logged a total trade surplus of US$192.54 billion over the 2006-10 period with the seven-country bloc, or an average surplus of US$19.25 billion per year, according to the Vietnam Customs. In the first four months of this year, Vietnam's total export and import value with the G7 topped US$30.73 billion, accounting for 29.4% of the country’s trade figure. Total trade surplus during this period was US$13.21 billion. Vietnamese Customs also underlined that Vietnam-Japan trade has been growing at a healthy rate over the last ten years, at an average annual rate of 13.9%. Bilateral trade between the two countries was valued at US$9.93 billion in 2006, with this figure growing to US$28.49 billion by 2015. Vietnam mostly sold its textile and garment products, footwear, furniture, seafood and raw materials to Japan, while importing back hi-tech machinery and equipment, automobiles and electronics. Vietnamese Prime Minister Nguyen Xuan Phuc and his Japanese counterpart Shinzo Abe agreed to boost the two countries’ strategic partnership in economy and defense, after they met in Tokyo on May 30. The meeting marked the official visit to Japan of the Vietnamese leader, who also attended the G7 Outreach Meeting one day earlier. In their talks, the two heads of government discussed practical measures to cement the two nations’ economic cooperation, investment and development. Prime Minister Abe said Japan will continue providing Vietnam with official development assistance (ODA) for improving infrastructure and dealing with consequences brought about by climate change. BRG Group deepening global footprint for sustainable development For many years now, BRG Group- a local leading private group in finance, banking and golf resorts, and its chairwoman Nguyen Thi Nga has pursued a strategy of working with global players in the hospitality and finance-banking industry to deepen its international integration. BRG’s main aim is to build high-quality and distinctive Vietnamese properties to serve not only domestic customers, but can also satisfy demanding requirements from both local and international business people and visitors. The group has made great strides in creating increasingly diversified and new unparalleled values in each product and service, looking for a higher quality of life for resident community and the society. BRG’s enthusiasm for and dedication to each project shows its concern not only for profit, but also to the development of the nation and the community. These good values have helped BRG make strong alliances with foreign partners. As for the golf side of BRG’s business, the BRG Legend Hill Golf Resort was designed by Nicklaus Design and is the first golf course in Vietnam to adopt a unique “twin green” design concept, a first for Nicklaus Design in Asia. The course is located in the foothills of a legendary property in Hanoi’s suburban district of Soc Son, adjacent to the Soc Temple, which is famous for its place in the legend of Thanh Giong, one of Vietnam’s mythological heroes. After signing an exclusive contract with BRG on opening the Golf Nicklaus Academy in Vietnam, the Nicklaus Group also decided to sign an exclusive agreement on golf course design with the local real estate group. At the signing ceremony for the deal in late 2015, Nicklaus Group deputy chairman Paul Stringer said that in the group’s more than 100-year history, this was their first-ever exclusive agreement on golf course design. Stringer commended the prestige of BRG Group as well as the hard work and dedication of chairwoman Nga, and particularly her efforts in community development. Apart from Legend Hill, BRG owns two other premier golf courses: Kings’ Island Golf Resort in Hanoi’s Son Tay district and BRG Ruby Tree Golf Resort in Haiphong’s Do Son district, which are financed and managed by experts from the US and Italy. In the hospitality industry, BRG has cultivated close ties with Hilton Worldwide, one of the largest hospitality companies in the world, through operating Hilton Hanoi Opera and Hilton Garden Inn Hanoi, and in the upcoming time new Hilton branded hotels such as Hilton Hanoi Westlake in Hanoi capital,  and Hilton Haiphong & Residences and Doubletree by Hilton Golf Resort Do Son in Haiphong city. At any project with BRG engagement, the group has made comprehensive investments, looking through customers’ eyes and paying particular heeds to details, striving to bring their customers the best values. Developing cooperation on the basis of mutual understanding and benefits for sustainable development is the principle BRG Group and its partners have always strictly observed which has generated fruition. The pipeline of works and projects deployed by BRG and its partners has brought multiple opportunities for local people and the customers to approach international standard products and services, some reaching the highest standards worldwide. “We want every of our products and services will carry BRG’s true distinction,” said BRG chairwoman Nguyen Thi Nga. Nga assumed that with a raft of new-generation free trade agreements which have come into force or are about to take effect Vietnam was moving closer to the world community.  International integration is ushering in a multitude of opportunities, but challenges are also numerous. In this context, growing inner strength of each business and the whole economy to grasp these fresh opportunities is of foremost importance. “Vietnamese businesses need to be proactive to seize growth opportunities in a timely manner. For BRG, the pressure stemming from integration will drive us to overcome hardships and achieve success,” shared the founder of one of Vietnam’s largest private business groups. In reality, the proven core values, such as strong cooperation, constant innovations leveraging sound inner strength, competent leadership and internal solidarity are the competitive advantages paving the way for BRG Group to leap forward, striving to be named among Vietnam’s and regional top multi-industry groups in the not distant future. Dong A Plastic JSC to start operation of expanded plastic profile plant in June Dong A Plastic JSC (HoSE: DAG) is going to start operation of phase 1 of its VND400 billion ($18 million) expanded plastic profile plant manufacturing plant in the northern province of Ha Nam this June. In the first phase, the company invested in 30 production lines made by Austrian company Theysohn to triple the plant’s capacity to 50,000 tonnes of products per year. As such, DAG will become the biggest Vietnamese producer of plastic profile in terms of capacity. DAG hopes that with this project it’s going to become the biggest in terms of market share in Vietnam in plastic profile, gaining the market back from plastic profile imported from China. DAG is one of the first Vietnamese companies to produce plastic profile, which it considers its focus, besides DAG’s smart windows, mica sheets and PP sheets. In 2013 DAG issued VND53.5 billion ($2.4 million) worth of convertible bonds, VND 40 billion ($1.8 million) of which to Japan South East Asia Growth Fund L.P, and VND13.5 billion ($605,000) of which to joint venture Shide Vietnam. The company used the bond sales proceeds to increase its profile production capacity to 2.5 times as much. In 2015 it signed the agreement to distribute uPVC plastic trims of the Shide Profile brand. DAG targets to reach annual revenue of VND3 trillion ($135 million) in five years. In 2015 the company issued 20.9 million shares to the public to mobilise capital for expansion. It’s also looking for a foreign strategic investor. At end-2015, Japanese company RISA Partners Inc., which focuses on investment in real estate, expressed interest in becoming a strategic investor in DAG. In March of this year, through Saigon Securities Inc., DAG met with seven funds namely Dragon Capital, Vietnam Holding, Vietfund Management, Korea Investment, Thien Viet Asset Management, Manulife Asset Management on possible cooperation. It has also worked with Japanese fund DBJ and Japanese building material company Sankyo Tateyama, which is planning to help DAG in product development and introduce Japanese technology in the company. In the second quarter of 2016 DAG started the project to build the 56-hectare VND40 billion ($1.8 million) Water Resources University in Pho Hien, Hung Yen. The project is going to be finished in June 2016. The Grand plans expansion of resort The Ho Tram Project Company – the developer behind the $4.2-billion The Grand Ho Tram Strip integrated resort and casino in the southern province of Ba Ria-Vung Tau, is jumpstarting the construction of the resort’s second hotel tower and  additional amenities. Last week the company signed a memorandum of understanding (MoU) with construction company CotecCons on the $75-million expansion. The signing ceremony was conducted during US President Barack Obama's three-day official trip to Vietnam and witnessed by numerous members of the president’s delegation. The second hotel tower will consist of 599 rooms, raising the number of rooms in the integrated resort to over 1,100. The expansion also includes entertainment amenities, including two movie theatres with a capacity of 70 people per screening room, a retail area, restaurants, a rooftop lounge, karaoke bars, a 2,000-seater amphitheatre, and a water park. The Ho Tram Project Company has spent and  has in construction announced projects of  approximately $1 billion to date. Speaking to VIR on the sidelines of the signing ceremony, Michael Kelly, executive chairman of The Grand Ho Tram Strip, said that the second hotel tower would be complete and operational by late next year. The Grand was opened in mid-2013. To date, the majority of the resort’s international guests are from China, followed by customers from South Korea. According to Kelly, even though the government has yet to raise the ban on gambling for Vietnamese citizens, The Grand is still popular with the Vietnamese thanks to its other entertainment options. “What we’re marketing is not a casino. We’re marketing a resort that happens to have a casino inside. We have a lot of family attractions and we’re continuing to expand to attract families and international tourists,” Kelly said, adding that The Grand was also looking to increase its meeting and convention business. This was the main reason why The Grand was expanding its room capacity. “In order to attract more people, we need more rooms,” he explained. “Also, this fulfills our commitment to the Vietnamese government to build a large, integrated resort.” Like other hotels and resorts in Vietnam which house a casino, The Grand looks forward to the government’s decree that will permit Vietnamese people aged over 21 to gamble. “The casino is just one aspect of our resort, but we believe this aspect will open up another demographic that does not currently frequent our establishment,” said Kelly. In March, the Ho Tram Project Company announced that it had launched its latest residential project, Gallery Villas, which are set to become one of Vietnam’s premier vacation residences. At the moment, a lot of other projects are being developed in the area. However, according to Kelly, The Grand will be the most attractive. “The  Gallery Villas project has the added benefits of the award winning golf course. The hotel and restaurants, and other amenties of the Grand are already in place. None of these benefits exist at any other projects”, he explained. The Grand currently has 541 rooms and features 11 restaurants and bars, an award-winning spa, three swimming pools as well as the nation's first international-standard casino. The resort also includes The Bluffs – the 18-hole Greg Norman-designed championship golf course. This is the first course in Vietnam to be featured in Golf Digest’s Top 100 courses in the world. The first phase of the resort was completed in 2013, while The Bluffs teed off in early 2014. Hai Duong litchi whets American appetites The first batches of Thieu litchi exported to the US and Australia last year are encouraging litchi farmers and spurring production in the Chi Linh and Thanh Ha districts of the northern province of Hai Duong. This success may help the litchi enter other demanding markets across the globe. In order to build a safe brand name, since 2012 Hai Duong has grown its famous Thieu litchi according to VietGAP standards. In a bid to export to the US market, last year the province successfully produced 19 hectares of Thieu litchi under both the VietGAP and GlobalGAP standards. The fruits were sold in supermarkets in California for $17-19 per kilogramme. They were also exported to other markets, including Australia, the UK, and France, where the fruit was praised by customers for meeting the strictest food safety and hygiene requirements. “This year, Hai Duong will implement another ten litchi plantation models on 100 hectares in Thanh Ha district. The trees have been granted a code by the Ministry of Agriculture and Rural Development’s Department for Plant Protection in order for the litchi to be exported,” said Nguyen Anh Cuong, Vice Chairman of Hai Duong’s People’s Committee. This year, the province has five times more export-oriented litchi plantations than last year. The export markets have stringent requirements on food safety and hygiene, which can differ from market to market. For example, the US is concerned about epidemics and pesticides, while European markets are worried about pesticide sediments in the products. “Hai Duong must put together all of the requirements from all target markets, meaning that it has to select a special type of pesticide so that the product meets all markets’ requirements,” said Cuong. “It will be very difficult at the beginning, but in the long term, it will help farmers shift to clean production and improve the quality and the value of the product.” In order to ensure that foreign partners’ strict requirements are met, the Hai Duong and Thanh Ha authorities are supporting farmers by helping to improve their production process. In addition to reducing the use of chemical substances for production, harvesting activities have also been improved. “Last year, companies purchased products and then classified them. However, this year, companies are classifying the products on site, in order to reduce external impacts on the litchi. This makes the fruit fresher and more delicious,” said Thanh Ha’s Party Secretary Nguyen Duc Tuan. To increase the consumption of litchi, the authorities are also boosting commercial promotion programmes, such as workshops and discussions with farmers. In order for their litchi to be exported to the US, farmers take good care of the trees from the very beginning. “Farmers have to follow advice from experts when they want to use fertilizers or pesticides,” Tuan said. The exported litchi must be free from pestilent insects and soil, and must be isolated from products produced in areas that have yet to be granted a code. After being harvested and classified, the litchi are transported to Ho Chi Minh City by refrigerated trucks, and then irradiated. Currently, Vietnam only has two irradiation centres, which are both in Ho Chi Minh City. The Ministry of Science and Technology is upgrading another irradiation centre in Hanoi so that litchi can be quarantined and irradiated more quickly, helping to save time and costs before shipping. In order for the Hai Duong litchi to be exported to such demanding markets, farmers are partially funded to meet the VietGAP and GlobalGAP standards. In addition, in 2016, farmers who participate in programmes to produce litchi for exportation to the US, Australia, and EU are supported with 50 per cent of the cost of pesticides, as well as 30 per cent of the cost to buy bags to wrap the litchi before the harvest. Farmers are also provided with training courses on the VietGAP standard and on preventing pestilent insects for litchi exported to the EU, Australia, and the US. The courses have helped improve farmers’ awareness of production under the VietGAP standards, contributing to a rise in output and productivity. To prepare for the farming of another hundred hectares of export-oriented litchi, Hai Duong People’s Committee has earmarked more than VND1.2 billion ($54,545) to support farmers. “The expansion of the plantations is aimed at creating a large, stable production base and to ensure product quality, thus laying the foundation for further expansion. This will also improve the lives of farmers in the years to come,” Cuong said. According to the committee, the province will continue building up the links between farmers and enterprises in production and consumption. “Low-cost preservation technology and transport by sea will be used for exporting litchi,” said Cuong. It will certainly be difficult to expand the litchi markets overseas, especially to demanding markets like the US, the EU, Australia, and Japan. However, with the robust determination of local authorities and farmers’ hard work, the Hai Duong litchi will likely fly far and wide around the globe. Deloitte Vietnam named "Vietnam Tax Firm of the Year 2016" Deloitte Vietnam won the “Vietnam Tax Firm of the Year” award at the 5th Asia Tax Awards 2016 held in Singapore recently. This was the first time an advisory and audit firm in Vietnam has received the prestigious award since 2010. The efforts of the Vietnam Tax Team in supporting clients in understanding and complying with new regulatory requirements for the financial services sector also contributed greatly to it winning the “FATCA/Withholding Tax Firm of the Year” award from Deloitte Southeast Asia. The Asia Tax Awards, which recognize excellence in tax advice to businesses in the region, is organized by the International Tax Review (ITR), a leading monthly publication on cross-border tax issues. Winners were selected on the basis of examples of their best work, submitted directly by candidates. Submissions were reviewed by ITR’s editorial staff, researching the market and seeking clients’ and professionals’ opinions over a period of several months. The Vietnam Tax Firm of the Year award is an important milestone for a Vietnamese tax advisory firm, and is especially gratifying given it is Deloitte Vietnam’s 25th anniversary (May 13, 1991 - May 13, 2016). It also strengthens the position of Deloitte Vietnam in the Asian market and recognizes the growth of the advisory and audit sector in Vietnam. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR