BUSINESS IN BRIEF 10/8 Turkey continues imposing AD duties on Vietnam tyres   Turkey continues extending anti-dumping (AD) duties on motorbike tyres imported from Vietnam, according to the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade (MoIT). The AVC reported that the General Directorate of Imports under the Turkish Ministry of Economy has issued its conclusion on reviewing AD duties on motorbike tyres imported from Taiwan and Vietnam. Accordingly, Vietnamese motorbike tyres coded 4011. 40 and 4013.90.00.00.11 will be imposed AD duties of 29% and 49%, respectively. The above mentioned AD duties are also levied on spare parts of motorbike tyres coded 4011.40 and 4013.90. Turkey initiated AD investigations on motorbike tyres coded 4011. 40 and 4013.90 imported from Vietnam on July 15, 2015 according to a complaint lodged by Anatolia Rubber Ind. and Trade Inc. company. Export growth 50% of target The country’s total export turnover in the first seven months of the year was US$96.83 billion, representing an annual increase of 5.3%, said Duong Duy Hung, Director of the Ministry of Industry and Trade’s Planning Department. However, the growth of total export turnover in this period was much lower than that of 9.2% in the same period last year, meeting only half the target. Hung told a meeting in Hanoi on August 8 that the total export turnover in July was US$14.7 billion, 0.2% less than the previous month. July exports by the agro-forestry and fishery sector rose only 0.1% from June.  In addition, the processing industry has not maintained its high growth rate of previous years, with a turnover drop of 0.9% compared to June. “The declining export prices have been the main reason for the decrease of the manufacturing sector,” he said. The country’s import turnover last month was also 1% lower than June’s. In the January-June period, the total import turnover reached US$95.03 billion, posting a 0.9% year-on-year decrease. Vietnam saw a trade surplus of US$1.8 billion in the first seven months of 2016, equal to 1.9% of the total export turnover. Deputy minister Hoang Quoc Vuong said the country would be hard pressed to meet the targeted export growth rate of 10% for the whole year barring breakthrough solutions. Vuong asked the industry and trade sector to focus on providing solutions to ease difficulties for business, thus promoting exports. “The industry and trade sector has contributed 60% of GDP for the country. The sector should make great efforts in the year-end months,” he added. Minister Tran Tuan Anh also asked departments to review regulations relating to export procedures to facilitate exports. He urged relevant agencies to enhance trade promotion in order to find new markets. Foreign investors spend US$3bn on capital contribution, stock in Vietnam More foreign investors have been investing via capital contributions and stock purchases in Vietnam over the last year, the Foreign Investment Agency has said. Between July 20, 2015 and July 20, 2016, foreign investors channeled a total of US$2.948 billion into contributing capital to, or purchasing stocks at, 3,141 businesses in the country, according to the agency. This is the first time the Foreign Investment Agency has publicized information related directly to capital contributions and stock purchases by foreign investors outside of traditional reports on foreign direct investment (FDI). Of the amount, nearly US$1.9 billion has been focused on 1,709 companies whose foreign capital contribution has exceeded 50% of the charter capital or that operate within conditional investment sectors. The rest has been directed to companies where foreign capital contribution accounts for less than 50% of the charter capital. Real estate remains the most attractive destination for foreign capital, with a total foreign capital contribution of US$350.1 million, accounting for 23.1% of the sector’s total. Retail occupies second place, with 57 projects and a total foreign capital contribution of US$318.9 million, or 21% of the entire amount. Experts said that the statistics show a burgeoning rise in foreign capital contributions and stock purchases. After the new Law on Investment came into effect on July 1, 2015, foreign investors have chosen capital contributions and stock purchases in order to enter the Vietnamese market quickly and develop their projects. More efforts promoted for tax administrative reform The General Department of Taxation under the Ministry of Finance has worked hard to simplify tax-related administrative procedures to facilitate businesses’ tax payments, said the agency. The tax sector proposed the ministry abrogate 32 procedures and simplify 40 others, while examining and adjusting regulations concerning tax management.  The sector issued decisions to modify and supplement 51 out of 70 regulations. Attention was given to the expansion of online tax declaration, with 99.47% of total businesses joining the scheme. The general department has arranged online tax declaration and payments for house-leasing, house and land assignment and the payment of the registration fee for automobiles and motorbikes.  The agency also worked with relevant units on a plan to apply information technology in issuing electronic invoices with the confirmation of tax agencies.  It has also coordinated with tax agencies abroad and international organisations to learn experience in tax collection, towards bettering tax management in Vietnam. To date, Vietnam has signed 74 agreements relating to tax with foreign partners, with 66 of them in effect.  The country has had connections with nine countries and territories, including the Republic of Korea, Japan, Singapore, Taiwan (China), France, Belgium, Poland, the Philippines and China.  It has also joined activities in the framework of cooperation programmes with the US, France, the RoK, Laos and Malaysia, and organisations such as the International Monetary Fund, the European Union, the Study Group on Asian Tax Administration and Research (SGATAR) and the Japan International Cooperation Agency (JICA). Dong Nai willing to cooperate with Ukraine’s Ternopil city Dong Nai province is willing to cooperate with Ternopil city in particular and Ukraine in general, especially in supporting industry, hi-tech agriculture and industry, tourism and services, said Chairman of the local People’s Committee Dinh Quoc Thai. Meeting with visiting Mayor of Ternopil Serhiy Nadal on August 8, Thai shared that Dong Nai is located in the southern key economic region and holds an important position in the region’s socio-economic development. Businesses from 44 countries and territories are investing in the southern province with current total investment reaching over US$25 billion, he said, adding that US$1.4 billion has been poured into the locality since the beginning of this year alone. He expressed his hope that Dong Nai and Ternopil will maintain cooperation to contribute to developing the relations between Vietnam and Ukraine. Serhiy Nadal spoke of the collaboration between his city and Dong Nai province, wishing that the province will share its experience in developing industry and attracting foreign investment. He informed the host that several enterprises operating in the fields of transport and education accompanying him this time are seeking investment and cooperation opportunities in the province. Exports of bivalves jump 1.6% in first half of 2016 Exports of bivalves (clams, oysters, mussels and scallops) from Vietnam in the first half of 2016 have jumped 1.6% against last year’s same period to US$40.86 million, reports the Vietnam Association of Seafood Exporters and Producers (VASEP). For the six-month period, VASEP noted that shipments of bivalves, principally clams, to the US shot up roughly 78.3% on the back of food safety concerns over imports from the Republic of Korea (RoK).    Relatedly, the US Food and Drug Administration issued a blanket ban on all certified RoK shippers of bivalves in June of this year prohibiting them from exporting any clam, oyster or similar bivalve product such as krill into any US market. The US combined with Japan and the EU account for an 85% market share and all three markets saw overall improved sales for the January-June period, said VASEP, while consignments to ASEAN nations collectively declined  by nearly 22.7%. Mondelez Kinh Do launches 62 kinds of moon cakes this year Confectionery producer Mondelez Kinh Đo announced that it will bring to the market 62 kinds of moon cakes to welcome the mid-autumn festival this year, which is coming in about one month. Prices, the company said, will range from 35,000 VND to 460,000 VND each. The company said it will produce both traditional and modern cakes to meet the demand of its many consumers. Some cakes will be made with green beans and eggs while others are made with special ingredients, such as abalone, shrimp and Alaskan crab, it added. Cakes in the shape of fish and pigs will also meet the demand of young consumers, the company said. Mondelez Kinh Do started its new moon cake season by exporting products to the US last month to meet the demand of Vietnamese living in this country. The company said all of the products will be sold from the beginning of August. Bank loan-deposit ratios improve significantly The loan-to-deposit ratio (LDR) of eight State-owned commercial banks has improved significantly in recent months, making the industry more optimistic about keeping it at a maximum of 90 percent.  According to the latest statistics from the State Bank of Vietnam (SBV), the LDR of these banks at the end of June had dropped to 93.93 percent, the lowest level over the past 10 months.  Expert said the fall was significant as the LDR had remained high, at 99.11 percent, earlier this year.  For many years, the LDR of the banks has remained high, even reaching 110.01 percent in December 2011, causing high risk for these banks. While restructuring the banking industry in 2011-15, the SBV targeted reducing the LDR of State-owned commercial banks to a maximum of 90 percent. However, it failed to meet this target. According to experts, the improvement of the LDR in the first half of this year was attributable to good liquidity and a good balance between deposits and credit in the affected banks. BIDV, for example, reported that its deposits grew 13 percent in the first half of the year, while credit rose by only 8.3 percent. The deposit and credit ratios at Vietinbank were 9.6 percent and 7.7 percent, respectively. At Vietcombank, the capital mobilisation ratio rose 6.72 percent in H1, while the credit increased 10.76 percent. However, the gap had little effect on the bank's capital source balance as its LDR was often under 80 percent in recent years. Vietcombank's total mobilised capital by the end of June was 535.203 trillion VND (23.89 billion USD), while its outstanding loans were only 437.58 trillion VND.  Vietnam has seven State-owned commercial banks: BIDV, VietinBank, Vietcombank and Agribank, as well as Construction Bank, GPBank and OceanBank. French firms interested in transport projects in HCM City Businesses from France are interested in transport projects in Ho Chi Minh City, French Ambassador to Vietnam Jean Noel Poirier was quoted by Sai Gon Giai phong newspaper as saying on August 8. He made the statement at a meeting with Secretary of the municipal Party Committee Dinh La Thang in the city. According to the newspaper, local officials welcomed French investors and said transport is a major challenge for HCM City, with a population of more than 10 million and a large number of tourists every year. The city is developing transport, especially the underground system, he said. He added that he hopes French businesses will study and invest in transport projects in the city. During the reception, the Secretary also highlighted the thriving strategic partnership between Vietnam and France thanks to high-level delegation exchanges. Vietfood, Beverage-ProPack exhibition in HCM City The Vietfood and Beverage-ProPack international exhibition will opens take place at the Sai Gon Exhibition and Cention Centre in Ho Chi Minh City on August 10.  After 19 exhibitions, witnessing significant and rapid changes in the market, and from the initial purpose of serving the basic needs of consumers, the food and beverage industry has now become a sector with considerable market share. It accounts for 15 percent of GDP, and it will continue to grow. The 2016 Vietfood and Beverage-ProPack marks its 20th anniversary with an ever largest scaled event. To date, the organising committee has received registration from 425 companies from 21 countries and territories, such as Poland, Germany, the Republic of Korea, and Malaysia, apart from Thailand, China and Vietnam, among others. The four-day exhibition is expected to accommodate 500 booths, an equivalent of 900sq.m, divided into large pavilions. Ministry works to remove bottlenecks for exports The Ministry of Industry and Trade is enacting measures to remove bottlenecks for exports in the remaining months of 2016. According to Deputy Minister Hoang Quoc Vuong, export turnover reached 96.83 billion USD between January-July, up 5.3 percent over the same period last year. However, this increase is much lower than the yearly target of 10 percent that the National Assembly has set, he said, adding that the export growth is likely to stand at only 8 percent for the whole year if prompt measures are not implemented. Phan Thi Dieu Ha, a representative from the ministry’s import-export department, explained that the unfavourable weather conditions such as drought and saltwater intrusion along with the unpredictable development of global crude oil prices have significantly affected farm produce. It is also the case that import countries are increasing commercial protection measures and technical barriers to make it difficult for foreign exporters to enter their markets, she said. The restructuring of local agro-forestry-fisheries production is still at a small-scale, while processed industrial goods – the biggest contributor to export growth, showed a decline over the same period last year, she noted. To address these problems, the Ministry of Industry and Trade has reviewed and adjusted incompatible legal documents and called on businesses to make use of free trade agreements (FTA). The ministry’s import-export department is building a specific project for farm produce as this commodity is the most sensitive to market impacts. The ministry will have a working session with the Ministry of Agriculture and Rural Development on August 11 to put forth practical measures to balance local production for exports to key markets where Vietnam is facing difficulties. Deputy Minister Vuong said the ministry will mull over regulations relating to import-export procedures as well as improve administrative reform and promotion activities. He confirmed that the ministry will promulgate policies to enhance production so as to increase export value. The signing of several FTAs this year, particularly the Trans-Pacific Partnership (TPP) agreement and the Vietnam-EU free trade agreement, is expected to open up new opportunities for Vietnamese exports, he said.- Cat Hai to become ‘smart island’ The Hai Phong Port City management authority and Hai Phong Economic Zone Authority (HEZA) has announced a detailed master plan making Cat Hai Island a smart island.  According to the plan released on last week, the total area will be 5,007ha, comprising 2,650ha of Cat Hai Island, with the remaining 2,357ha being earmarked for the Hai Phong international gateway port and a non-tariff area.  A representative of Nikken Sekkei Civil Engineering Company, the consultancy contractor, said a part of the Dinh Vu-Cat Hai Economic Zone would become an industrial city, with large logistics systems playing an important role in boosting northern logistics development, and maximising the advantages of the Lach Huyen international gateway port.  “The planning of Cat Hai Island is based on the triple bottom line principle, ensuring a balance between society, economy and the environment, leading towards sustainable development,” he said.  The land for industrial production will cover 28 percent of Cat Hai Island’s total area. The remaining area will be used for logistics development, spread along Tan Vu-Lach Huyen highway and port area, as well as social building, such as hospitals, schools, parks and resort.  Activities on the island will aim to save energy, conserve the ecosystem and maintain systemic circulation. The island will also be a comfortable living space, suitable for relaxation. The traditional fishing village will continue to be maintained and developed.  Nikken Sekkei aims to provide a comfortable life to the residents, while ensuring an eco-friendly work environment.  The infrastructure system, particularly of transport, will be built simultaneously to ensure the best connections between Tan Vu-Lach Huyen Highway and Lach Huyen Port, along with rebuilding of the road and bridge connecting Quang Ninh-Lach Huyen, and a rail system linking Lach Huyen Port to Dinh Vu station, connected with the national railway network.  The plan will be implemented in four phases, from 2017 to 2030 and after 2030.  “Cat Hai Island has great potential to attract investors. In addition, the island is part of the economic coastal zone, making it very appealing to investors,” Do Trung Thoai, head of HEZA, said.  Thoại said the city has attracted more than 2 billion USD in foreign direct investment so far this year. There will be two major investment projects in the Dinh Vu-Cat Hai economic zone, with a total investment of more than 1 billion USD.  He expected the announcement of the detailed Cat Hai Island master plan to be a highlight, helping the city, particularly Cat Hai, to further attract investors.  One of the most successful investors is the Rent A Port Group, the developer of Dinh Vu Industrial Zone (DVIZ). At the end of 2015, the group decided to expand and invest in three more IZs, covering a combined area of 2,000ha.  The work includes expansion of the Dinh Vu IZ, and building of the 650ha Deep C IZ, 500ha Deep C III IZ in Cat Hai Island and Tien Phong IZ in Quang Ninh Province.  Total investment in the projects will be about $800 million. The Deep C III IZ is in the stage of finalising a legal setup for detailed planning and site clearance.  The large project is for the city and country too, focusing on the most important region of the Dinh Vu - Cat Hai Economic Zone. This project is expected to be a breakthrough for the development of the Dinh Vu - Cat Hai Economic Zone in the future. VN shrimp costlier than China's The shrimp sector will face several challenges this year, despite an anticipated increase in exports, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP). Deputy Director of the VASEP Training and Trade Promotion Centre Le Hang said in the first half of this year, the shrimp sector earned more than US$1.35 billion, a year-on-year increase of 4.8 per cent. The sector is also expected to bring home $3.2 billion this year, up 10 per cent against last year. She said the sector had seen recovery in key export markets such as the United States, the European Union, the Republic of Korea and China, except for an 8.8 per cent decrease in exports to Japan. However, Hang was concerned that high production costs and a shortage of raw materials were among issues that have hindered the sector's growth. She said Viet Nam's shrimp export prices were 20 per cent higher than that of other foreign competitors. For instance, the average price of Vietnamese shrimp shipped to the United States is $11.2 per kilo, while China and India are selling at $6.7 and $10.8 per kilo, respectively. Besides this, a surplus supply over demand has made the market's competitiveness fiercer both home and aboard, Chairman of the Board of Management of Minh Phu Seafood Group Le Van Quang said. He said shortcomings and challenges were seen in most shrimp manufacturing processes such as breeding, harvesting, preservation and exports, which might lead to instability, high costs and weak competitiveness for the sector. In order to cope with the situation, industry insiders said the state and relevant authorities should introduce overall measures to help the sector develop substantially, as well as increase its competitiveness in the context of economic integration. Thua Thien-Hue receives $332m of investment Central Thua Thien-Hue Province yesterday granted 16 investment certificates with total investment of nearly VND7.5 trillion (US$332 million) and signed six co-operation agreements with partners. The moves come after conference to promote investment in the province held yesterday, with Deputy Prime Minister Vuong Dinh Hue and more than 500 representatives from international and domestic businesses attending. Speaking at the conference, Deputy PM Hue said that the province still had room for development. He asked provincial leaders to make clearer policies to call for investment and make lists of projects that needed private investors. He urged the province to develop tourism into its spearhead economy, suggesting tapping the tourism potential based on market economic principles, as well as building special mechanisms to uphold local heritages and boost public-private partnership in relic restoration and upgrades. Deputy PM Hue reminded local leaders of the then Prime Minister's decision to turn Tam Giang-Cau Hai Lagoon into an ecosystem tourism site. He said that the decision was issued in 2009, but since then, the region had not received much attention. He also suggested holding more thematic discussions on the development of the Chan May – Lang Co economic zone and the Tam Giang-Cau Hai lagoon to attract more investment. Nguyen Van Cao, chairman of local People's Committee said that the province picked tourism, hi-tech industry and hi-tech agriculture as strategic sectors to boost the economy. In tourism, the province has diverse potential that no other localities in the country could compete with, including a complete set of imperial monuments and culture of the Nguyen Dynasty (1802-1945) and great natural landscapes. But local authorities have struggled to exploit this potential. Cao said the province will give priority to developing Hue into a "heritage" city with a high-class well-being and resort area, deserving its tourism trademark: "One destination – Five heritages". The chairman said that provincial leaders would create a favourable investment environment and were ready to meet enterprises and investors to receive complaints and tackle difficulties during the investment process.  Export turnover less than half of Government's target The country's total export turnover in the first seven months of the year was US$96.83 billion, representing an annual increase of 5.3 per cent, said Duong Duy Hung, director of the Ministry of Industry and Trade's Planning Department. However, the growth of total export turnover in this period was much lower than that of 9.2 per cent in the same period last year, meeting only half the target. Hung told a meeting in Ha Noi yesterday that the total export turnover in July was $14.7 billion, 0.2 per cent less than the previous month. July exports by the agro-forestry and fishery sector rose only 0.1 per cent from June. In addition, the processing industry has not maintained its high growth rate of previous years, with a turnover drop of 0.9 per cent compared to June. "The declining export prices have been the main reason for the decrease of the manufacturing sector," he said. The country's import turnover last month was also 1 per cent lower than June's. In the January-June period, the total import turnover reached $95.03 billion, posting a 0.9 per cent year-on-year decrease. Viet Nam saw a trade surplus of $1.8 billion in the first seven months of 2016, equal to 1.9 per cent of the total export turnover. Deputy minister Hoang Quoc Vuong said the country would be hard pressed to meet the targeted export growth rate of 10 per cent for the whole year barring breakthrough solutions. Vuong asked the industry and trade sector to focus on providing solutions to ease difficulties for business, thus promoting exports. "The industry and trade sector has contributed 60 per cent of GDP for the country. The sector should make great efforts in the year-end months," he added. Minister Tran Tuan Anh also asked departments to review regulations relating to export procedures to facilitate exports. He urged relevant agencies to enhance trade promotion in order to find new markets.  Kien Giang province eyes $1 billion in export turnover by 2020 The Mekong Delta province of Kien Giang is striving to earn at least US$1 billion from exports by 2020, according to the provincial Department of Industry and Trade. Of these, farm produce is expected to yield $495 million; aquaculture $230 million; other commodities, $44 million and products from state-owned enterprises $250 million. The province will boost the exports of frozen shrimp, frozen squid and rice to markets with strong purchasing power while enhancing the competitiveness and integration capacity of businesses. The province will also support key export enterprises in finding partners, boosting selling and buying opportunities and providing services. Maintaining and enlarging distribution networks, as well as stabilising traditional markets and expanding potential markets, are also among the province's goals. Along with creating favourable conditions for local enterprises to upgrade their production, the province is seeking to attract large-scale projects with advanced technology. In addition to enhancing trade promotion, the province will use market surveys and international and domestic trade fairs and exhibitions to popularise local products. The province's products have been sold in 43 countries and territories. It earned $196 million from exports in the past seven months, equivalent to 44.5 per cent of its yearly plan and up 1.8 per cent from the same time last year. Meeting export goals has been challenging due to fierce competition from regional countries, shortage of capital, restricted markets and lack of materials for aquaculture processing. However, the province still enjoyed a surge in rice exports in July, increasing total rice shipments to 270,000 tonnes in the first seven months of the year.  HoSE puts TTF in special control list The HCM Stock Exchange (HoSE) put the stock of Truong Thanh Furniture (TTF) in the special control list from August 9. After the firm's loss of more than VND1 trillion (US$44.8 million), discovered by auditors in late July, the stock lost more than 66 per cent in value. From the special control list, TTF shares were permitted only to trade under matching and agreement methods in the afternoon session. HoSE also replaced TTF with the stock of the Ocean Group Joint Stock Company (OGR) in VNMidcap list or VN100 on the same day. According to the audited financial statement of Q2, the firm suffered a loss of up to VND1.12 trillion, with its retrospective restatement seriously affecting the business results of the firm. Ernst and Young auditors found that inventory worth VND980 billion was missing, which added to the cost price of Q2. Since July 19, TTF has fallen in 15 consecutive sessions, losing 66 per cent. On August 8, each TTF share closed at VND15,000. The fall of TTF began when Tan Lien Phat Construction Investment Corporation suspended a plan to acquire TTF shares in exchange for a VND1.2-trillion loan, which it had given to TTF after finding serious discrepancies in data provided by furniture firm. Vinamilk to pay 40% dividend in cash Viet Nam Dairy Products Joint Stock Company (Vinamilk) announced that they would pay a 40 per cent dividend in cash on August 31 for the first quarter of 2016. According to Vinamilk, the owner of each share will receive VND4,000. Thus, the firm was expected to pay VND4.8 trillion (US$216 million) for the current over 1.2 billion shares. As Vinamilk's largest shareholder, with a stake exceeding 45 per cent, the State Capital Investment Corporation will receive some VND2.16 trillion. On August 3, Vinamilk has announced its final list of shareholders for the next issuance of nearly 242 million shares to raise equity. Vinamilk said it would release the new shares at a ratio of 5:1, where shareholders holding five old shares would receive one new share. The shares issued were valued at more than VND2.4 trillion. After H1, Vinanilk earned more than VND21 trillion in revenue and VND4.8 trillion in after–tax profit in the first half, an increase of 17 per cent and 32 per cent year-on-year, respectively. After the issuance is completed, Vinamilk will have more than VND14.5 trillion in charter capital. As the country's largest dairy firm, Vinamilk stock (VNM) was always in the top three in the domestic stock market. VNM has so far risen about 50 per cent over a year. On August 8, each VNM share ended at VND158,000 on the HCM Stock Exchange. Sales and marketing camp planned in Ha Noi The first Vietnam Sales and Marketing Camp (VSMCamp 2016) will be held at Flamingo Dai Lai Resort in the northern province of Vinh Phuc on September 24 and 25. Many well-known Vietnamese and international speakers will join the event, being held under the theme "Building sales and marketing strategies for national brands" with around 10 workshops, to discuss the latest topics related to strategies on sales, product distribution, and branding, apart from marketing, advertising, media and technology. According to the organising board, the programme is expected to attract 3,000 participants including executive directors, sales and marketing directors, chief technology officers, and administrators, in addition to representatives of professional associations. Tran Ngoc Anh, chairman of the Vietnam Chief of Sales & Marketing Officer Club (CSMO Vietnam) said the programme was designed to mobilise a collective intelligence to build a professional network for the sharing of knowledge, skills and experiences on developing strategies for marketing, sales, advertising, and communications for big Vietnamese brands. The event was co-organised by the Club of Sales and Marketing Director of Vietnam (CSMO Vietnam), Vietnam Marketing and Communications Club (VMCC) and Le Bros Company. The innovation of VSMCamp 2016 is derived from real demand of Viet Nam that it should have a standard and large-scale playground for those who work in the field of sales and marketing to have an opportunity to learn and exchange experiences with a view to making Vietnamese brands stronger. VSMCamp is expected to become an annual event of national sales and marketing industry, Ngoc Anh said. More foreign investors have been investing via capital contributions and stock purchases in Vietnam over the last year, the Foreign Investment Agency has said. Foreign investors spend $3bn on capital contribution, stock in Vietnam in past year Between July 20, 2015 and July 20, 2016, foreign investors channeled a total of US$2.948 billion into contributing capital to, or purchasing stocks at, 3,141 businesses in the country, according to the agency. This is the first time the Foreign Investment Agency has publicized information related directly to capital contributions and stock purchases by foreign investors outside of traditional reports on foreign direct investment (FDI). Of the amount, nearly $1.9 billion has been focused on 1,709 companies whose foreign capital contribution has exceeded 50 percent of the charter capital or that operate within conditional investment sectors. The rest has been directed to companies where foreign capital contribution accounts for less than 50 percent of the charter capital. Real estate remains the most attractive destination for foreign capital, with a total foreign capital contribution of $350.1 million, accounting for 23.1 percent of the sector’s total. Retail occupies second place, with 57 projects and a total foreign capital contribution of $318.9 million, or 21 percent of the entire amount. Experts said that the statistics show a burgeoning rise in foreign capital contributions and stock purchases. After the new Law on Investment came into effect on July 1, 2015, foreign investors have chosen capital contributions and stock purchases in order to enter the Vietnamese market quickly and develop their projects. Deputy PM attends Hue investment promotion conference Deputy Prime Minister Vuong Dinh Hue asked the central province of Thua Thien-Hue to develop tourism into its spearhead economy during a local investment promotion conference on August 8. Speaking at the event, he suggested tapping the tourism potential based on market economic principles, as well as building special mechanisms to uphold local heritages and boost public-private partnership in relic restoration and upgrades. The province should outline a roadmap to embark on projects, especially the project: “Socio-economic development in Tam Giang-Cau Hai lagoon, the central province of Thua Thien-Hue until 2020,” which was approved by the government in 2009 and aims to build the lagoon into an ecological tourist area, he said. He also suggested holding more thematic discussions on the development of the Chan May – Lang Co economic zone and the Tam Giang-Cau Hai lagoon to attract more investment. On the occasion, the Deputy PM asked ministries, agencies and the Bank for Investment and Development of Vietnam (BIDV) to facilitate the transforming of Thua Thien-Hue into a centrally-run city and a regional hub of culture, tourism, science-technology, health care and education. As one of the five provinces in the central key economic region , Thua Thien-Hue holds huge potential in developing tourism, industry, agriculture and the marine-based economy. However, challenges remain ahead. Nguyen Van Cao, Chairman of the provincial People’s Committee, said the province will give priority to developing Hue into a “heritage” city with a high-class well-being and resort area, deserving its tourism trademark: “One destination – Five heritages”.  In the meantime, Chan May-Lang Co will be connected with Hue, Da Nang, Chu Lai, Dung Quat, Nhon Hoi and Van Phong to create a regional key urban corridor which is a complex of seaports, resorts and innovative industry. Chairman of the BIDV Board of Directors Tran Bac Ha said the lender pledges to assist Thua Thien-Hue in building a socio-economic development master plan, and provide credit for socio-economic development projects for 2016-2018, primarily those on industry, trade, services and hi-tech agriculture. BIDV will also co-organise investment promotion events at home and abroad, as well as join programmes on social welfare and workforce training, such as building kindergartens and medical stations and providing support for the poor, he said. At the event, the provincial authorities presented certificates of investment to 16 investors who registered a total capital of more than 7.7 trillion VND (350 million USD) and signed six cooperation agreements with investors and partners. The BIDV also inked an agreement to fund a 7 billion VND local tourism master plan, and signed seven other deals to provide funding worth over 4.55 trillion VND (206.8 million USD) for investment projects in the locality. Can Tho attracts US$175 million in FDI Can Tho City has attracted US$175.7 million of foreign direct investment (FDI) capital this year, including a Republic of Korea’s shoe-production plant that will be the largest FDI project in the Mekong Delta region. The plant, valued at US$171 million, will be located in the 2B Hung Phu Industrial Park. The city also issued licences to two FDI projects worth a total of US$4.26 million last month. In 2015, Can Tho attracted only seven FDI projects with total registered capital of US$19 million. However, this year FDI has been far higher and is expected to continue to increase. can tho attracts us$175 million in fdi hinh 0 Foreign investors, especially from Japan and the Republic of Korea, have visited the area recently and expressed interest in doing business, according to Vo Thanh Thong, Chairman of Can Tho City’s People’s Committee. “Can Tho is expected to issue licences for new FDI projects in the coming time,” Thong said. To ensure sustainable development, the city has shifted priorities by focusing on the quality of projects, not just investment value. Business areas that have been given priority include electronics, agricultural machinery, support industries, hi-tech agricultural and fisheries products, and transport and tourism infrastructure. Logistics, garment and textiles, industrial parks, IT zones, hospitals and international schools are also among the city’s top priorities. To date, the city has attracted a total of 71 FDI projects with a total registered capital of US$1.13 billion. Of the figure, total implemented capital has reached US$358.8 million. Most of the investors have been from Asia, including the Republic of Korea, Singapore, Hong Kong, Thailand and Taiwan, in addition to Western countries like the US, Germany and France. However, many of the projects over the years have been of small scale and have used outdated technologies. Cooperation between large foreign companies and their local counterparts has been inadequate, and little technology transfer has occurred. The city aims to improve investment promotions to attract more quality foreign projects in the coming time. Located on the south bank of the Hau River, a branch of the Mekong River, Can Tho is the largest city in the Mekong Delta, with a population of 1.2 million. VAMA: motor vehicle sales up 15% in July Total motor vehicle sales in July stood at 28,004 units, a 15 per cent increase against June and up 38 per cent against July 2015, according to the latest report from the Vietnam Automobile Manufacturers Association (VAMA) released on August 9. Passenger car sales totaled 17,541 units, up 36 per cent against June, commercial vehicle sales 9,334 units, down 10 per cent, and special purpose vehicle sales 1,156 units, down 2 per cent. Completely-knocked-down (CKD) vehicle sales reached 20,726 units, up 15 per cent against June, while sales of completely-built-up (CBU) vehicles stood at 7,278, up 14 per cent. From January to July sales were up 32 per cent year-on-year. Passenger car sales rose 28 per cent, commercial vehicles sales 36 per cent, and special purpose vehicles 49 per cent. Govt comments on draft betting rules The Government Office has announced Deputy Prime Minister Vuong Dinh Hue’s conclusion on a draft decree on betting on horse racing, dog racing and international soccer, which has been delayed for years. The draft went before the National Assembly (NA) Standing Committee a long time ago but has yet to be adopted as many issues remain to be improved. According to the announcement, the Ministry of Finance and the Ministry of Culture, Sports and Tourism are told to stick to the contents of the draft presented to the NA Standing Committee. No betting on international horse and dog races and no images of these races would be allowed while international soccer betting would be approved on a pilot basis for a period of five years. Points of sales must be no less than 500 meters from schools and public parks for children. Betting firms cannot decide when to start and end a bet. Those firms wanting to distribute tickets via phone or other telecom channels must have at least five years’ experience in betting business. Under the draft decree, betting ticket distribution on the Internet would not be allowed. The Finance Ministry would be in charge of deciding on betting products, the sports ministry would choose which international soccer competitions to bet on. Selecting firms to invest in race tracks where betting is permitted and firms to pilot international soccer betting must go through investment and bidding processes provided by law. Reviews of the draft decree must be finished by August 15. Mitsubishi to expand auto assembly in Vietnam Mitsubishi Motors Vietnam (MMV) said affirmed it will inject more capital into its auto assembly facility in the country to expand production despite lower tariffs on imports of completely built-up autos (CBU) from ASEAN. Kenichi Horinouchi, general director of MMV, told the media on the sidelines of a ceremony held in HCMC last Saturday to launch the Mitsubishi Outlander SUV. The Outlander, which is manufactured in Japan, is the next completely built-up model of Mitsubishi to be imported into Vietnam after Triton, Attrage and Mirage which come from Thailand. Therefore, there is speculation that MMV could shift to importing CBUs rather than assembling vehicles in the country. However, according to Kenichi Horinouchi, Mitsubishi regards Vietnam as one of its potential growth markets in Southeast Asia, so it will expand operation in this market. The recent increase of Mitsubishi’s capital contribution to the joint venture from 50% to 82% indicates the Japanese automaker is committed to long-term investment in Vietnam. The Outlander is the first product to be imported after the rise in the firm’s shareholding. In Asia, the Outlander is manufactured in Japan and China, Kenichi Horinouchi said. The vehicle may be assembled in Vietnam if annual sales reach around 1,500 units. Besides the Outlander and the Pajero, other Mitsubishi models might be assembled in Vietnam to be competitive. The planned auto assembly expansion will need additional investments. Kenichi Horinouchi said the firm will increase its capacity to roughly 8,000 units in 2018 from the current 1,500 units per year. In addition, more dealerships and service centers will go up in the country. He added Mitsubishi autos assembled in Vietnam will also be exported to Laos, Cambodia and the Philippines. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR