BUSINESS IN BRIEF 9/8 Vinh Phuc pitches for UK investments The northern province of Vinh Phuc pitched its potential, strength and projects in need of investments at a recent seminar in London. Addressing the event, held with the coordination of the Vietnamese Embassy in the UK, Chairman of the Vinh Phuc People’s Committee Nguyen Van Tri underlined the province’s advantages including favourable geographical conditions, an abundant workforce and good infrastructure. He reported that as of the end of June 2016, Vinh Phuc was hosting 221 foreign-invested projects, including successful ones run by Toyota and Honda of Japan, Piaggio of Italy, and Partron Vina, Heasung Vina, Jahwa and Sindoh of the Republic of Korea (RoK). Ambassador Nguyen Van Thao described Vinh Phuc as a bright spot in terms of economic development in Vietnam. He pledged that the embassy will assist UK businesses in studying opportunities in Vietnam in general and in Vinh Phuc Province in particular. Paul Smith from the UK’s Harvey Nash Group, which has been in Vietnam for more than 15 years, suggested Vinh Phuc and other Vietnamese localities improve foreign language skills for their labourers in order to attract more foreign investors.- Ten enterprises commit 17 trillion VND in investment to Ha Nam The authorities of the northern province of Ha Nam signed cooperation agreements with and granted investment certificates to 10 enterprises on a total investment of 17 trillion VND (765 million USD) in the locality at an investment promotion conference on August 6.  Worthy of note is a 300 million USD project invested by the Seoul Semiconductor group from the Republic of Korea.  Also on the occasion, the Bank for Investment and Development of Vietnam (BIDV) pledged 20 trillion VND (900 million USD) in credit for developing infrastructure facility of local industrial parks (IPs) and to support investors in the IPs, particularly those from Japan, the Republic of Korea, Taiwan (China).  The local government and BIDV’s branch in Ha Nam also signed four memoranda of understanding on providing credits, worth a total of nearly 4 trillion VND (180 million USD).  Those were the outcomes of the August 6 conference to promote investment in the locality with the attendance of Prime Minister Nguyen Xuan Phuc and over 400 representatives from international and domestic businesses.  Addressing the event, PM Nguyen Xuan Phuc said Ha Nam’s ten commitments to investors help increase the locality’s attractiveness.  He urged the local authorities to promote the new way of thinking in economic and administrative management, establishing more mechanisms to enhance dialogue with businesses and increase businesses’ access to information. At the same time, the PM reminded the province to pay heed to protecting the environment and promoting the development of other sectors, including tourism, services, education, training and health care.  The Prime Minister pledged the Government will continue creating a favourable business climate to make Vietnam one of the top investment destinations in the ASEAN.  Ha Nam is among 15 top destinations for investors in the country. As of June this year, the province was home to nearly 600 valid investment projects, worth over 4.95 billion USD.  In 2015, the locality ranked 31st in the provincial competitiveness index (PCI), up from the 45 th position in 2014. Saigon Innovation Hub opens in HCM City The Saigon Innovation Hub (SIHUB) was officially opened in the metropolis of Ho Chi Minh City on August 6. Launched by the Ho Chi Minh City’s Energy Conservation Centre (ECC) under the municipal Department of Science and Technology, the facility will work to assist the startup community toward making the locality a “startup city”. Director of the Department of Science and Technology Nguyen Viet Dung said SIHUB will be a channel linking the department and the startup community, hence they will make use of the city’s supporting policies, and public resources. According to the ECC, SIHUB will prioritize projects in four key industrial sectors of the city, which are food processing, electronic-information technology, mechanical manufacturing, and chemistry (rubber, plastic, pharmaceuticals). The launching event witnessed the signing of cooperative projects in the framework of the Mekong Business Initiative (MBI) and the Vietnam Angle Investor Network (iAngle). Dominic Mellor, Head of MBI project who is also a senior economist of the Asian Development Bank (ADB), said SIHUB will be a catalyst for the city’s development, adding that the centre will serve as a dialogue channel among businesses, local officials, policy makers to discuss development opportunities.- Seminar promotes Vietnam – Argentina trade Lanus district in Argentina’s Buenos Aires province wants to boost trade and economic ties with Vietnam, the district’s Secretary of Economic Development Oscar Jofre said at a local seminar on August 5.  The event, jointly organised by the Embassy of Vietnam in Argentina and the Argentina - Vietnam Cultural Institute (ICAV), attracted a crowd of Argentinean businesses.  Oscar Jofre said Lanus wants to import consumer goods, such as electronics and garments from Vietnam while it can sell leather and leather products and automobile spare parts to the Southeast Asian country.  Meanwhile, Nguyen Thi Thanh Van, Vietnamese Commercial Attaché in Argentina updated the local business community on Vietnam’s economic development and potential for trade exchange.  According to Argentinean Customs, in the first five months this year, the trade value between the two nations reached 1.27 billion USD, a 32 percent year-on-year increase.  Vietnam’s exports to Argentina were valued at 355 million USD, doubling the same period last year, while Argentina’s exports to Vietnam stood at 918 million USD, up 8 percent.  ICAV Director Poldi Sosa noted the opportunities in tourism cooperation between the two countries, adding that around 10,000 Argentinean tourists visit Vietnam each year.  Numerous documents featuring Vietnam’s landscapes and tourism were delivered to participants during the event.-VNA Trade agreements benefit Vietnamese, Lao businesses The trade treaty signed between Vietnam and Laos in March 2015 and the border trade agreement inked in June 2015 offer special tariff preferences for the two nations’ businesses, heard a conference in Hanoi on August 5. The special tariff preferences under these trade pacts are not applied to any other countries, deputy head of the Asia-Pacific Market Department under the Ministry of Industry and Trade Le An Hai said, adding that numerous goods made in Vietnam and Laos will be subject to zero percent or a 50 percent tax reduction. The Vietnam-Laos bilateral trade deal in March 2015 replaced the old one in 1998, he noted. The establishment of the ASEAN Economic Community at the end of 2015 will provides both opportunities and challenges for businesses, he said, adding that bilateral trade activities will be boosted if business players take advantage of the aforesaid agreements. The two trade deals have paved the way for new commodities to enter their respective markets, he said. Lao Ambassador to Vietnam Thongsavanh Phomvihane said the Vietnamese and Lao Ministries of Industry and Trade are willing to help businesses promote trade and investment. The bilateral border trade agreement, in particular, will make it easier for cross-border goods exchanges, he added. Two-way trade recorded a constant increase between 2010-2014 with an annual growth of 25.8 percent. However, in recent times, two-way trade has been on the downward trend, which only reached 1.12 billion USD in 2015, down 12.6 percent against 2014. In the first six months of 2016, bilateral trade topped 433.3 million USD, a year-on-year decline of 34.7 percent. Participants proposed several measures to boost two-way trade, including building a joint trade development project for the next 10 years. New international container shipping route opens in Quang Nam An international container shipping route traversing to the central province of Quang Nam was officially put into operation on August 5. The route, launched by the Chu Lai Truong Hai (Thaco) Automobile Company, connects the province’s Chu Lai-Truong Hai port and the Republic of Korea (RoK). The first ship on this route, weighing 20,000 tonnes, anchored at the port right on the opening day, opening up opportunities for domestic and foreign businesses to transport goods directly from the RoK by sea. The same day, the company started the expansion of the Chu Lai – Truong Hai port at a total cost of 200 billion VND (9 million USD), which is expected to be completed in February next year. The port currently consists of a 44,000 sq.m container area and a 70,000 sq.m logistics area. After the expansion, it is capable of accommodating vessels of up to 30,000 tonnes in 2018, with its dock having a total length of 500 metres. Last year, the port handled 950,000 tonnes of goods and the figure is expected to reach 1,350,000 tonnes this year. Addressing the ceremony, Chairman of the provincial People’s Committee Dinh Van Thu said the route and the expansion of the port are expected to lure investment to and boost economic development in the province and the central region in general. He pledged to create optimal conditions for investors to operate in the province.- Việt Nam to encourage seaweed farming Farming of seaweed, a promising seafood product, will be encouraged, the Directorate of Fisheries has said. A report it tabled at a conference titled "Current State and Outlook for Viet Nam Seaweed Sector" in HCM City yesterday projects annual growth in seaweed output at 5.3 per cent and 3.3 per cent in terms of area. Nguyen Ba Son of the directorate said by 2020 the output would rise to 137,500 tonnes and the total area under seaweed to 12,600ha, up from 101,600 tonnes and 10,150ha last year. Seaweed would be raised on islands and lagoons to increase yield, he said. To achieve the goal, research would be done to develop high-quality seaweed products. He called on processing companies to improve their technologies to meet the high demand in the domestic and international markets. Experts told the conference that Viet Nam has ideal conditions to farm seaweed, thanks to a 3,260km coastline and 1 million square kilometers of water surface. Ngo Dang Nghia, director of the Institute for Biological Technology and Environment, said the country has more than 800 species of seaweed. "Viet Nam has [good] conditions to grow seaweed," he said, pointing to the large ocean surface area and good environment. Seaweed has beneficial health effects like reducing cholesterol and preventing certain types of cancers as well as cardiovascular diseases, he said. It can also be used to make food products as well as cosmetics, he said. The use of seaweed is becoming very popular in Viet Nam as South Koreans and Japanese come to the country, bringing with them a habit of consuming it daily. Nghia said many investors have started to explore this new sector on seeing the potential. He said the Government should study the sector's potential to develop it. Nguyen Thi Thu Sac, deputy chairwoman of the Viet Nam Association of Seafood Exporters and Processors, said both the Government and companies have underestimated the potential of the industry because they thought Vietnamese do not like seaweed because of its taste. It is time to draft plans to develop the sector, she said. She told Viet Nam News that 90 per cent of the country's seaweed products are exported to many countries including Japan, South Korea and EU members. Farmers urged to use new rice-sowing model Many farmers in the Cuu Long (Mekong) Delta continue the traditional habit of sowing rice at a high density, leading to increased production costs and frequent disease outbreaks.    Despite local authorities' recommendation to use 120 kilos of seed per ha, most farmers in Kien Giang Province's Tan Hiep District, for example, use 150-180 kilos of seed. Nguyen Minh Tan, who uses the suggested 120 kilos, said his yield was the same as 150-180 kilos of seed sown per ha. "However, only a few people are willing to do this because it requires more labour, and the surface of the fields must be levelled," he said. Tan learned about the new sowing method by attending a training course, which urges farmers to use less fertiliser and pesticide as well. The course was organised by Tan Hiệp District's Agriculture and Rural Development Bureau. Known informally as the "three reductions, three gains" model, the sowing method results in higher yields, quality and profits.    Tân said that initially his family did not want to use the model, so he divided his 3ha field, planting 180 kilos of seed on 1.5ha and 120 kilos on the remaining 1.5ha.   After harvesting, the yields from the two sections were equal, and production costs for the field sown with 120 kilo of seed were lower. Nguyen Trung Tien, director of Kien Giang Province's Breeding Centre for Agriculture, Forestry and Fishery, said the higher-density sowing caused losses of about 20-30 per cent of plants. Moreover, many farmers do not use high-quality seeds, so the germination rate is low. "If farmers inevest in leveling the surface of their rice fields, they can cut production costs and reduce the seed quantity," he said. Farmers taking part in the province's rice-seedling development programme are using the recommended 120 kilos of seed, according to Tien. The centre targets reducing the quantity of seeds to 80 kilo per ha in the future. Nguyen Van Ba, who grows 1.5 ha of glutinous rice in An Giang Province, said his family used 130-140 kilos of seed per ha, helping cut costs for seed by VND700,000-800,000 (US$32 - 36) per ha. He also uses less fertiliser and needs less time to spray pesticide, increasing profits by VND1.2 – 1.5 million ($55-68) per ha, compared to traditional methods. Nguyen Huu An, head of An Giang Province's Plant Protection Sub-department, said the province had instructed farmers in advanced farming techniques, including the use of high-quality seeds and new cultivation models. Besides the "three reductions, three gains" model, the province also promotes the "one must, five reductions" model in which certified seeds "must" be used. The "reductions" refer to the number of seeds and as well as reduced amounts of crop-protection chemicals, nitrogenous fertiliser, water and post-harvest loss. In Dong Thap Province, local authorities have instructed farmers to use fewer seeds, but many farmers continue to sow 120-180 kilos, and 200-220 kilos of glutinous rice seed per ha. Farmer Tran Van Liet, who has grown rice in Dong Thap's Hong Ngu District for 30 years, said farmers would change their habits if they were shown evidence of the new model's results on fields in their areas.   In February, the Ministry of Agriculture and Rural Development launched a programme in the Mekong Delta to reduce the quantity of sown seed, aiming to reduce the quantity to 80 kilos per ha by 2020. If the target is achieved, the delta would save about 300,000 tonnes of seed or VND4.5 trillion ($204 million) a year, according to the ministry. The delta's rice farmers use an average of 150 kilos of seed per ha, while the rate is only 40 kilos per ha in the north. The delta, which plants more than 4 million ha of rice every year, accounts for about 55 per cent of total rice cultivation in the country.  Economy Deputy PM approves road toll cut Deputy Prime Minister Vương Dinh Hue has approved a proposal by the Ministry of Finance (MoF) to reduce road tolls for a number of vehicles to ease the burden of transportation enterprises. A 10-15 per cent toll reduction will be applied to trucks weighing over 10 tonnes, and container trucks with capacities of 20 to 40 feet. This reduction will take place at 29 toll booths out of the 45 booths currently operating across the country. Road tolls for cars and coaches with under 30 seats, buses, and trucks weighing from two to four tonnes in five toll booths will be slashed by 10-20 percent. These booths include two booths on National Highway 5, two booths on National Highway 1 at Ben Thuy Bridge, Nghe An Province, and Cau Gianh booth in Quang Binh Province, which currently apply the highest charges. Deputy PM Hue also agreed that tolls applied at booths, which started operation before 2014 and are located on roads without any new expansions or upgrading projects would not be increased this year. Only tolls on roads having new projects are allowed to increase but the rates must not be higher than the new reduced rates just agreed upon by the Deputy PM. The Deputy PM told the MoF to discuss with road investors for a common roadmap of charge adjustments in conformity with each road building project. The ministry is also asked to soon issue a circular on this matter which will take effect immediately after issuance. HCMC receives $2.5bn in remittances in seven months Remittances to HCM City in the first seven months of this year rose 4.16 per cent year-on-year to reach US$2.5 billion. According to State Bank of Viet Nam's HCM City branch Deputy Director Nguyen Hoang Minh, with the rising rate, HCM City, which is among the localities receiving the largest volume of remittances nationwide, would receive $5.7 billion-$5.8 billion in remittances this year, up 5.6 per cent against last year. Minh said the remittances mainly went into production and businesses. Remittances to HCM City have increased roughly 10 to 12 per cent on average in the past five years. The rise in remittance sources has been mainly attributed to an increase in remittances from the United States and the European Union, Minh said, adding that remittances from China and the Republic of Korea had remained modest. Remittances to HCM City last year reached $5.5 billion, exceeding the $5.2 billion received in 2014. More than 70.8 per cent of the remittance value flowed into production and businesses, while roughly 21.6 per cent went into real estate and seven per cent to relatives. Mortgaged projects safe for buyers: experts Taking out mortgages for property projects is a normal practice among developers, and laws would protect the interests of buyers who have bought mortgaged property products, according to experts. Recently, the HCM City Department of Natural Resources and Environment published a list of 77 apartment projects that have been registered at land registration offices as mortgaged assets. The list has been submitted to relevant offices in the city and also uploaded on the Land Registration Office's website. The action is said to have been prompted by the Harmona scandal in the city a few months ago. More than 600 buyers of Harmona apartments in the city's Tan Binh District got a rude shock one day when they were told their homes would be seized by a bank because the developer had mortgaged the building and failed to repay the loan. That meant nearly 2,000 people living there had to leave their apartments despite already making full payments. As a result, the city has decided to make the legal status of property projects public to reduce the risk for buyers. Later, Ha Noi's Department of Natural Resources and Environment also published a list of 26 apartment projects that had taken out mortgages at banks to get capital for developing the projects. Now, the capital city has a total of 300 property projects, while HCM City has 584 property projects. The announcement was necessary to protect the interest of buyers, investors and banks, and to ensure transparency on the property market, Pham Ngoc Lien, director of the HCM City Land Registration Office, said at a seminar held by the Phap luat Thanh pho HCM newspaper on August 2. Vu Thi Khuyen, a representative of the HCM City Construction Department, said it was normal for enterprises to mobilise capital from society, including buyers and banks, to develop property projects. Investors of the projects must be certified by the city's construction department to be eligible investors of mobilising capital. Bank and financial expert Dang Quoc Tien said all enterprises could take loans out for their businesses. Banks pay attention to the ability of investors to repay loans, as well as the legal status and feasibility of the projects, before deciding to give them loans, he said. Le Hoang Chau, chairman of the HCM City Real Estate Association, said it was the responsibility of parties involved in the projects to release public information about the mortgaged property projects. However, Chau said, the parties should carefully consider their announcements regarding mortgage information to avoid misunderstandings from buyers, who sometimes have the misconception that mortgaged projects are weak projects, even though it is a common practice. Le Hung Manh, general director of Gia Hoa Company, which has mortgaged projects in HCM City, supports publicising information on mortgaged property projects. But the HCM City Resources and Environment Department had not prepared well for this plan, he said. The department should co-operate with property enterprises and media to hold press conferences on announcing the mortgaged projects in order to provide thorough information on this issue, he suggested. Nguyen Huu Nghia, deputy director of Ha Noi Resources and Environment, said mortgages taken out for commercial projects are both normal in business and in compliance with the law. State offices have controlled mortgaged projects, and mortgages would not affect the interests of apartment buyers, he said. In fact, apartment buyers of some mortgaged projects had received ownership of real estate certificates. In addition, investors of those projects had implemented all their rights and obligations in lending capital and selling property products, he said. In the future, the HCM City Resource and Environment Department and the HCM City Land Registration Office would update information regarding the repayment of loans for mortgaged projects, said Pham Ngoc Lien, director of HCM City Land Registration Office.  The departments expect to organise a meeting between investors, banks and apartment buyers to find the best solutions and ensure more transparency on the local property market, he said. To protect property buyers, Le Hoang Chau, chairman of the HCM City Real Estate Association, said the resources and environment departments should provide more information about investors' purpose of mortgaging their projects at banks, including plans for developing and constructing the project. Buyers would need to know this information before deciding to buy the property product, Chau said. He added that banks should also supervise investors that have mortgaged projects to ensure that investors use loans and capital mobilised from buyers for the right purpose - completing the projects and handing the apartments over to buyers. Pham Sy Liem, deputy chairman of the Viet Nam Construction Association, said some investors mortgaged their property projects to get banking loans to develop the projects, but in fact, they used the loans for other purposes, prohibiting them from handing over apartments to buyers. Therefore, he said property buyers should take down information at State management offices about the property products they want to buy before deciding to buy apartments that are part of mortgaged property projects. The buyers could contact the Ha Noi resource and environment department to receive a consultation on property projects to determine if the projects have a certificate of real estate ownership, Nghia said. SSI issues $8.9 million of non-convertible bonds Sai Gon Securities Inc (SSI) yesterday issued VND200 billion (nearly US$8.9 million) worth of two-year non-convertible bonds with an annual yield rate of 7 per cent for the first 12 months. In the second year, the yield rate will level the average deposit rate of 12-month đồng-based accounts at Vietcombank, Vietinbank and BIDV with a margin of 1.2 per cent on either side and be adjusted every three months. This was SSI's first bond issuance of this year and the bond yield rate was also the lowest ever. In 2015, the brokerage firm issued VND800 billion worth of bonds. SSI said that the fund mobilised from the bond issuance would be used to increase the firm's working capital and strengthen the firm's top position in all business sectors. SSI said that the bonds were issued successfully as the bond market showed a high amount of available capital and the lending growth rate remained low. During the first half of the year, the banking sector recorded a lending growth rate of 8.16 per cent, lower than deposit growth rate in the sector of 8.23 per cent. The difference between lending and deposit growth rates has helped increase the liquidity among all banks and reduce the interbank overnight lending rate. SSI also said that the scale of the bond issuance was small and short, thus the company was able to mobilise the capital with a low yield rate. In addition, investors were professional and highly reputable finance institutes in Viet Nam and they were able to evaluate precisely SSI's financial status and credit rating. SSI is now among three leading brokerage firms in Viet Nam. At the end of June, the company's chartered capital reached VND4.8 trillion. SSI has recently reported a total pre-tax profit of VND508.86 billion, equal to 53.5 per cent of the expected result for this year. Uber riders at 300,000 in May-Jul Active Uber riders in Hanoi and Ho Chi Minh City have reached over 300,000 in the last three months, according to Uber Vietnam. In the two cities the average waiting time is under four minutes and, overall, 92 per cent of trips in Ho Chi Minh City arrive within ten minutes of the estimated time and 94 per cent in Hanoi. Over the last two years tens of thousands of Vietnamese drivers have become Uber drivers, with the company reaching its target last year of providing 10,000 jobs. “Eighty per cent of Vietnamese driver-partners choose to drive 40 hours a week or less,” the company said. Vietnam has a fast-growing economy and a young population. Since the Uber app was launched the level of technology and innovation adoption has been remarkable, according to Mr. Dang Viet Dung, General Manager of Uber Vietnam. “Vietnamese have always been forward-thinking, inclusive and quick to embrace new ideas and innovative technology,” he went on. “We’re very pleased to see how the app has influenced driver and passengers in Vietnam.” Uber’s growing presence in over 450 cities in 70 countries ensures overseas visitors have a familiar and safe way to explore Vietnam and visit a broader and more diverse range of neighborhoods. Uber has connected Ho Chi Minh City with international passengers from 66 countries and Hanoi with passengers with 62 countries. An Uber user in the US, for example, can book an Uber ride in Vietnam for a friend and the two can see the trip updated via smartphone. Uber entered Vietnam in July 2014. Late last year Vietnam became the first country in Southeast Asia to launch cash payments and since then a significant proportion of fares have been paid for by cash. uberMOTO was launched early this year, providing motorbike taxis with lower fares. Uber China recently merged with Didi Chuxing, a Chinese car service similar to Uber. The value of the new company is estimated at $35 billion. Didi is the leading booking car app in China while Uber China lost about $2 billion. By merging with Didi, Uber can save its resources in the country to develop in Asia Pacific countries, including Vietnam. Last year Uber Vietnam said it was looking at Nha Trang and Da Nang as part of its expansion plans but specifics are yet to be revealed. Tokyo Gas involved in Vietnam’s strategic gas solution LNG Vietnam Joint Stock Company (LNG Vietnam), a liquefied natural gas (LNG) importer and distributor, has been established to contribute to meeting the supply gap of LNG in the upcoming years. LNG Vietnam, worth $4.4 million, is a joint venture of Japanese Tokyo Gas Group (Tokyo Gas), PetroVietnam Gas Joint Stock Corporation (PV Gas), and Bitexco Group. Accordingly, PV Gas will hold a 51 per cent stake, Bitexco 39 per cent and Tokyo Gas 10 per cent. Although Vietnam is currently self-sufficient in natural gas, the government plans to import and distribute LNG to meet the growing demand of power plants and industrial users. Last year, the country announced plans to build six LNG storage facilities by 2020 for distribution to industrial parks across the country. PV Gas predicts a supply gap of six billion cubic metres, particularly in Southeast Vietnam, within the next four years. The figure is expected to rise over 15 billion cubic metres by 2025. Thus, LNG Vietnam is expected to pioneer LNG in Vietnam, managing all facilities in the country, along with export-import and distribution activities in order to meet domestic demand and trade with other countries in the region. In Vietnam, LNG is mainly used as a source of energy by industrial producers and fertiliser plants or as fuel for gas-fired power plants. According to PV Gas, LNG will be brought in by specialised carrier ships and degasified before delivery to pipelines and consumers. Because the price of imported LNG is much higher than domestic gas, the target customers will be those who can afford it, including the largest state-owned power producer, Electricity of Vietnam, which consumes more than 80 per cent of PV Gas’s output. Previously, in May, leaders of Tokyo Gas and PV Gas met to discuss the investment plan in the construction and operation of Thi Vai LNG warehouse in Cai Mep industrial zone in the southern province of Ba Ria-Vung Tau, as well as the expansion and management of LNG warehouse infrastructure and the development of the Vietnamese LNG market in the future. Haiphong announces plan to turn Cat Hai into smart island The management authority of the northern port city of Haiphong and Haiphong Economic Zone Authority yesterday announced a detailed Master Plan ratio 1/2000 of Cat Hai Island, part of Dinh Vu-Cat Hai Economic Zone. The detailed master plan was made by Nikken Sekkei Civil Engineering from Japan. According to the approved master plan, the total planned area will be 5,007 hectares (ha), comprising 2,650ha Cat Hai Island and the remaining 2,357ha earmarked for Haiphong International Gateway Port and a non-tariff area.  Nikken Sekkei clearly decided the function and development plan of Cat Hai Island.  This region, belonging to Dinh Vu-Cat Hai Economic Zone, will become an industrial city with big logistics systems, playing an important role to spur northern logistics development, and maximise the advantages of Lach Huyen International Gateway Port.   Besides, the planning of Cat Hai Island is based on the Triple Bottom Line principle, ensuring the balance between Society, Economy, and Environment, heading towards sustainable development.  The land for industrial production will cover 28 per cent of Cat Hai Island total area. There will also be the space for logistics development which spreads along Tan Vu-Lach Huyen highway, and port area.  Part of Cat Hai Island will be dedicated for social building, such as hospitals, schools, parks, seawalls, green zone, and resort area. According to Nikken Sekkei, clearly determining the areas’ functions helps bring comfortable life for the residents while ensuring an eco- friendly working environment.  The infrastructure system, particularly transport system, will be built simultaneously to ensure best connection between Tan Vu-Lach Huyen highway and Lach Huyen port, alongside rebuilding the road and bridge connecting Quang Ninh-Lach Huyen which is 65m long and 4x10.5m wide, and a rail system linking Lach Huyen port to Dinh Vu station, connecting with the national railway network.  The plan will be conducted into four periods, from 2017 to 2030 and after 2030. “Cat Hai Island has great potential to attract investors. Besides, the island is part of an economic coastal zone, making it very appealing to investors. Therefore, having in place a scientific and efficient planning scheme for Cat Hai is essential to make the most of these advantages,” said Do Trung Thoai, head of HEZA.  Thoai also said that the city has thus far attracted more than $2 billions in foreign direct investment. There will be two major investment projects in Dinh Vu-Cat Hai economic zone worth more than $1 billion in total committed capital.  Thoai expected the announcement of Cat Hai Island detailed master plan will become a highlight, helping the city, particularly Cat Hai, to further allure investors.  One of most successful investors is Rent A Port Group, the developer of Dinh Vu Industrial Zone (IZ). At the end of 2015, the group decided to expand and invest three more IZs covering a combined area of 2,000ha.  The work includes expanding current Dinh Vu IZ, and building 650ha Deep C IZ, 500ha Deep C III IZ in Cat Hai Island, and Tien Phong IZ in Quang Ninh province.  According to Marc Stordiau, Rent A Port managing director, total investment sum of above projects will be about $800 million. Deep C III IZ is in the legal setup stage for detailed planning and site clearance.   With those mega infrastructure projects in the development pipeline, Haiphong city will offer a great deal of opportunities for investor community in the region. SBIC calls for consortium to build solar power plant Vietnam’s state-run Shipbuilding Industry Corporation (SBIC) expressed interest in co-operating with Foxconn to develop a 200 megawatt solar power plant in South Cam Ranh industrial zone (IZ), in the central province of Khanh Hoa. Accordingly, SBIC has proposed the Khanh Hoa People’s Committee not to revoke the investment certificate of the long-delayed South Cam Ranh IZ, so that SBIC can carry out negotiations with HC Global Joint Stock Company (HCG) to join the solar power plant. According to SBIC’s design, the plant is to be implemented by a consortium of Taiwan’s Foxconn Technology Group, HCG, and Clean Energy JSC. However, no further information on the solar power project has been disclosed for now. South Cam Ranh IZ, invested by Nha Trang Shipbuilding Co., Ltd., was licensed in March 2009 with the total investment capital of VND980 billion ($43.9 million). However, the construction has yet to be implemented due to the investor’s financial troubles. Khanh Hoa has been considering revoking the project’s investment certificate since 2012, due to its long delay in construction.  In 2007, Foxconn announced that it would invest $5 billion in Vietnam to help draw the country into the global supply chain. At the time, the Taiwanese company signed a cooperation framework with the Ministry of Planning and Investment, pledging to invest in a series of projects in the hi-tech sector and supporting industries. Foxconn was also linked to investment agreements in Ho Chi Minh City, Haiphong, Bac Ninh, Bac Giang, Vinh Phuc, and Binh Dinh. Foxconn kick-started its Vietnamese investments by opening two factories, worth $160 million in total, in Bac Ninh’s Que Vo industrial park. In 2008, they were licensed to build a $200-million smart phone production facility in Vinh Phuc. It also built plans to construct facilities in Bac Giang. A $1-billion IP on the outskirts of Ho Chi Minh City was also on the menu. However, these ambitious investment plans seemed to fizzle out when Foxconn’s Vinh Phuc project had its investment licence revoked in 2015. Meanwhile, the hi-tech project in Bac Ninh went bankrupt, and the fate of Foxconn’s other investment commitments in Binh Dinh, Haiphong, and Ho Chi Minh City remain unclear. In its latest move, Foxconn spent $22 million on acquiring Microsoft’s Bac Ninh phone plant where it’s going to produce feature phones and smartphones. The facility started operation in October 2013. It has area of 65,400 square metres and capacity of 15,000 units per day. South Korea-Chu Lai container shipping route launched in Quang Nam Chu Lai-Truong Hai Automobile Company (Thaco) yesterday launched a container shipping route from South Korea to Chu Lai-Truong Hai port at Chu Lai open economic zone, Nui Thanh district, the central province of Quang Nam. For the first time, a 20,000 ton vessel was able to dock at the port without transiting other ports in Da Nang and HCMC, opening opportunities for local and foreign businesses to lower prices of their products and improve competitiveness. On the same day, the company started work on a project to broaden the port by 270 meters, increase its wharf length to 500 meters with the total cost of VND200 billion (US$8.97 million). Sakkara interested in new property projects Australia’s Sakkara Group is looking for opportunities to invest in new real estate projects in HCMC, including rebuilding old apartment buildings. Neil Wilson, chairman of Sakkara, told a meeting with HCMC chairman Nguyen Thanh Phong on Tuesday that the group, together with its partners Dragon Capital and GIC, are seeking to develop office, apartment and mixed-use property projects. The firms also want to renovate and rebuild old apartment buildings in the city as well as develop an international-standard property complex for business, commercial, recreational and cultural activities in the Thu Thiem New Urban Area in District 2. Phong said investment opportunities for foreign enterprises abound here and pledged to create favorable conditions for them to implement their projects. Phong said the city has 474 buildings with more than half of them deteriorating. The city has asked the Government to allow investors to rebuild the shabby buildings. As for other property projects proposed by Sakkara, Phong said there are chances for it as the city still has land for property developments and is developing new urban areas in Thu Thiem, Nam Hiep Phuoc, northwest of Cu Chi District and other parts of the city. The city is finding foreign investors for underground retail malls at metro stations. Wilson said Sakkara has invested in Vietnam since 2004 through five projects: City Garden, President Place, Holm, Sanctuary and Centre Point. Sakkara is present in this market via its member company Sapphire JSC. Experts call for accurate info about mortgaged properties Experts have underlined the need for accurate information about real estate projects in which developers or buyers have used their properties as collateral for bank loans. Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said at a conference in HCMC on Tuesday that there are many problems with a list of 77 mortgaged real estate projects the HCMC Department of Natural Resources and Environment has publicized. He said information about individuals who have mortgaged their apartments should be announced with prudence as it may infringe the civil code. Besides, the department did not provide updated statistics about the mortgaged projects. There are over 500 half-done property projects in HCMC but the department announced just 77. Chau said many realty developers have used their projects as collateral for bank loans though they have not received certification from the HCMC Department of Construction to mobilize capital for their projects. According to Chau, the natural resource-environment department is monitoring mortgages of land use rights, landed assets and future assets. However, it is the Department of Justice which manages projects mortgaged by asset rights.  Therefore, the departments of natural resources-environment, construction and justice should closely coordinate with one another in monitoring mortgages of asset rights. Le Hung Manh, chairman of Gia Hoa Company, told the conference that purposes of mortgages should be clarified when the list is updated in the coming time as many firms mortgage their projects to seek lenders’ guarantees for completion of these projects in the future rather than taking out bank loans. Pham Ngoc Lien, head of the land registration division at the Department of Natural Resources and Environment, admitted information about the real estate projects in the list have not been updated, causing public concern.   However, he said in addition to the mortgage matter, realty developers’ wrongdoing in construction, design and financial obligations, among others could affect the issuance of home ownership certificates to buyers. Lien said such information should be provided to homebuyers to ensure transparency on the housing market, and urged cooperation among relevant agencies in this field. Duong Thi Thanh Lan of the HCMC Department of Justice shared Lien’s view, saying that a mechanism for the provision of information about realty projects is needed. Agencies should work out requirements and update and manage relevant information.    Vu Thi Khuyen from the Department of Construction said realty firms should update the implementation process and clarify mortgage purposes of real estate projects on their websites to help homebuyers. Lien of the land registration division said the natural resources department will continue updating information about mortgaged real estate projects and names of businesses which have made mortgage redemptions. The department will ponder announcing information about homebuyers who have used their properties as collateral for bank loans. Lien said people wanting that information can get it at the division. Meanwhile, the State Bank of Vietnam’s HCMC branch has written to credit institutions in the city ordering them to strictly monitor mortgaged realty projects and comply with the prevailing regulations on the use, registration and handling of assets used as collateral for loans, especially assets to be created in the future.  According to the HCMC branch, announcing information about mortgaged property projects is one of the measures to make the housing market transparent and protect the rights of customers. Banks should give information and explain to customers so that trading and transferring of houses could progress smoothly. Major thermal power plant off ground Malaysia-based Janakuasa Sdn. Bhd has broken ground for Duyen Hai 2 thermal power plant in the Mekong Delta province of Tra Vinh, the Vietnam News Agency reports. Occupying 60 hectares of land at Duyen Hai Power Center in Dan Thanh Commune, Duyen Hai 2 costs a total of US$2.2 billion and is designed to have two generators with a combined capacity of 1,200 megawatts (MW). Janakuasa plans to complete construction of the build-operate-transfer (BOT) facility in five years and will transfer it to Vietnam 25 years after it is put into operation. Duyen Hai 2 is one of the four thermal projects with a total capacity of 4,308 MW located at Duyen Hai Power Center. As for the other three, Duyen Hai 1 has come on stream, Duyen Hai 3 is test-running its first generator and carrying out work on the second generator, and construction of Duyen Hai 3 extension is underway. Situated in an area of more than 878 hectares, the US$5-billion Duyen Hai Power Center belongs to the country’s master zoning plan for power development in 2011-2020 with a vision toward 2030. Cacao development center to go up in Dong Nai Trong Duc Cocoa Co Ltd has cut a deal with Atlantic Commodities Vietnam Ltd (ACOM) to open a cacao development center in Dinh Quan District in the southern province of Dong Nai. The center in Dong Nai aims at providing farmers with knowledge and skills about cultivating cacao trees to help them improve productivity and product quality, said Nguyen Tuan Vuong, head of ACOM’s cacao section. In the initial stage, the center will run courses on cacao farming for farmers who are cacao suppliers of Trong Duc and ACOM. The center is expected to become a place for cacao growers and even students to learn the ropes, said Yessa Tuegeh, a representative of ECOM Agroindustrial Asia Pte. Ltd. Tuegeh said extracurricular courses at at a cacao development center in Indonesia have attracted many secondary students, and most of them are children of cacao farming families. “Their families provide them real experience while the center offers them general knowledge and latest information on plant protection drugs.” Vuong said the center will also provide experts in cacao farming, build model cacao farms with high yields, and encourage local people to grow cacao. ACOM is a subsidiary of Switzerland’s ECOM Agroindustrial Corp, which specializes in coffee, cacao, cotton and sugar businesses. ECOM has set up cacao development centers in many countries around the world, including Mexico, Ivory Coast, Cameroon, Nicaragua, and Indonesia. In Vietnam, several companies having a cacao business have established their centers in Daklak and Binh Phuoc provinces. Vietnam currently has 7,000 hectares under cacao farming and ACOM expects the acreage to rise to 100,000 hectares, Vuong told the Daily. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR