BUSINESS IN BRIEF 18/10 HCM City’s bad debts down to 3.8 percent   Ho Chi Minh City’s bad debts had decreased to 3.8 percent of total credit outstanding balance by the end of August, said Director of the State Bank of Vietnam’s municipal branch To Duy Lam during a working session with the city’s National Assembly deputies on October 17.  Local banks settled more than 35 trillion VND (1.56 billion USD) in bad debts, he revealed, adding that in the past nine months, total credit outstanding balance in the city rose over 13 percent, while total lending increased nearly 11 percent year on year.  At the session, local banks highly valued the role of the Vietnam Asset Management Company (VAMC) in tacking bad debts as well as proposed policies and mechanisms in dealing with the debts.  Do Minh Toan, General Director of the Asia Commercial Bank (ACB) attributed difficulties in the work to shortcomings in the procedure of handling bad debts, especially a lack of effective measures to deal with irresponsible asset owners.  At the same time, local authorities and economic departments at districts have yet to well perform their role in coordinating and supporting banks in handling bad debts, he said.  Meanwhile, Secretary of the municipal Party Committee Dinh La Thang asked local commercial banks to actively work with the VAMC in seeking efficient solutions to the work.  Relevant agencies should clarify the exact amount of bad debts and design strategies to speed up the restructuring and management of bad debts, thus winning trust of customers and locals.  Thang also requested the State Bank of Vietnam’s municipal branch as well as commercial banks to work together to soon announce credit packages for startups and small and medium-sized enterprises in line with seven breakthrough programmes of the city. Central Highlands reduces coffee area The Central Highlands provinces of Dak Lak, Dak Nong, Lam Dong and Gia Lai have replaced thousands of hectares of unproductive coffee trees with other plants which have higher economic values such as perennial fruit trees, cashew and pepper. According to the Steering Committee for the Central Highlands Region, since 2012, the provinces have encouraged locals to reduce the coffee area for the sector’s sustainable development.  In several years ago, because of high profits from coffee, local people illegally destroyed forests, even protective ones, to expand coffee cultivation areas. As a result, the region’s land use plan was broken and areas for other trees were narrowed down.  The region’s total coffee area is now nearly 114,000 ha more than that set in the Ministry of Agriculture and Rural Development’s coffee planning by 2020. During the last dry season, the Central Highlands provinces had over 134,594ha of withered coffee trees due to water shortage, leading to a decrease in productivity or total loss.  Dak Lak province suffered the most with 68,780ha of coffee withered and about 5,000ha lost. Int’l conference on sustainable concrete to open in Hanoi The 7th Asian Concrete Forum (ACF) 2016 will be held by the Asian Concrete Federation and the Vietnam Concrete Association from October 30 to November 2.  Themed “Sustainable concrete for now and the future”, ACF 2016 is expected to draw the participation of 400 experts from 250 domestic and international organisations.  Concrete has been the most used building material over the world with increasing production. It is estimated that 35 billion tonnes of concrete are produced worldwide annually.  Therefore, the conference is a platform for participants to share experience and develop sustainable concrete solutions.  Presentations delivered at ACF 2016 will focus on research outcomes, practical solutions and academic exchange of social issues, which were selected and approved by 20 science councils in the world. Within the framework of the conference, participants will pay field trips to major infrastructure works and new urban areas in Hanoi. Law makers urge drastic measures to achieve growth target The economic growth rate in the fourth quarter of 2016 must be much higher than that of the previous months in order to achieve the target of 6.3-6.5 percent growth in GDP at the year’s end, heard the National Assembly Standing Committee in Hanoi on October 17.  The Government said in its report submitted to the fourth session of the NA Standing Committee that NA-set goal of a 6.7 percent increase in GDP in 2016 is unlikely to be met, and the economic growth rate for this year is estimated to be 6.3-6.5 percent.   The NA Standing Committee said even the revised estimated growth rate would not be achieved without drastic and synchronous measures by the Government.  The NA Committee for Economics urged the Government to immediately address the long delay between the promulgation and implementation of policies, while continuing with efforts to remove barriers for businesses.  The committee stressed the need to tighten the management of the State budget and public investment projects as well as administrative discipline and order.  The Government should also push ahead with economic restructuring, especially in public investment, commercial banks, and State-run businesses.  The NA Standing Committee commended the Government on its measures to support businesses in terms of market and credit access.  Nevertheless, the high rate of bad debts, the weak performance of some commercial banks, and the high government bond interest rates have made it difficult to lower lending interest rates.  Some deputies expressed concern that public debts could breach the 65 percent of GDP limit in 2016 while the increasing disbursement of official development assistance (ODA) capital will disrupt budget spending estimate and raise State budget deficit.  Head of the NA Economic Committee Vu Hong Thanh requested that the Government make more detailed assessment about macro economy, major balances of the economy and the implementation of key economic restructuring tasks in the context of failing to achieve the yearly growth target. Rubber cultivation critical to development in northwest The Vietnam Rubber Group held a ceremony at a plantation in Lung Thang commune of Sin Ho district, Lai Chau province, on October 17 to mark nine years of a rubber development project in northern mountainous provinces.  Developing rubber cultivation in the northwestern region is a right direction of the Party and State that aims to make an economic breakthrough. It is expected to eliminate poverty, create jobs, protect the environment and ensure defence-security in the region, said Politburo member Nguyen Van Binh, Secretary of the Party Central Committee and Chairman of the committee’s Commission for Economic Affairs.  Binh, who is also head of the Steering Committee for the Northwestern Region, also praised efforts by the authorities and people of Lai Chau and the Vietnam Rubber Group in expanding rubber plantation there.  Northwestern provinces, including Lai Chau, own favourable conditions for cash crop production, such as large natural area, temperate climate and fertile land. The expansion of rubber farming there also looks to help residents displaced by hydropower projects to settle down, he added.  He asked relevant ministries and central agencies to issue specific policies supporting rubber cultivation in Lai Chau and assist investors to tap into local agricultural and forestry potential.  Binh told Lai Chau authorities and the Vietnam Rubber Group to encourage local residents to enter into contracts with the firm’s subsidiaries. Meanwhile, land that is unsuitable for rubber cultivation should be used for growing other plants to avoid wastefulness.  Lai Chau province is now houses some 12,800ha of rubber trees invested by three companies, along with another 13,860ha owned by local people. Nearly 2,300 people, mostly ethnics, are working in rubber farming projects. Vietnam Cycle 2016 opens next month in Hanoi The Vietnam Cycle 2016 expo will take place at the Hanoi International Exhibition Centre from November 17 through 19. The exhibition is expected to attract the participation of 50 major manufacturers, along with 150 booths from the UK, France, Italy, Japan, the Republic of Korea, Taiwan, China and Vietnam. Also, some 15,000 visitors, including domestic and international distributors and manufacturers, as well as the public, are expected to attend. Organisers noted that the exhibition will open opportunities for trade linkage, franchise contracts and seeking distributors. It is also an opportunity to highlight the bicycle sector, which is a driving force in the booming trend of riding bicycles and promoting green energy in big cities today. Vietnam Cycle 2016 is organised by Vinexad and the Vietnam Auto Motorcycle Bicycle Association (VAMOBA), under the patronage of the Ministry of Industry and Trade, and in collaboration with the National Traffic Safety Committee. SBIC to divest capital from PV Shipyard The Vietnam Ship Building Industry Corporation (SBIC) said it will auction off about 4.479 million shares in the PetroVietnam Marine Shipyard JSC (PV Shipyard) on October 21. The shares account for 7.53 percent of PV Shipyard’s stock on the market. The move aims to recover SBIC’s capital from PV Shipyard in order to add to its manufacturing and business in the coming time. As planned, the auction will be held at the Hanoi Stock Exchange with the starting price of 10,000 VND/share. PV Shipyard’s charter capital stands at nearly 594.9 trillion VND (26.77 billion USD). The company operates in building and upgrading ships and oil rigs, and providing port, warehousing and transport services. Apart from SBIC, the Vietnam Petroleum Technical Services Corporation (PTSC) , has a 28.75 percent stake (17,105 million shares) in PV Shipyard. Meanwhile, the Bank for Investment and Development Bank of Vietnam (BIDV) and the Vietnam Machine Erection Corporation (LILAMA) each owns a 4.03 percent stake (over 2.4 million shares) in the firm. Phu Yen builds infrastructure for hi-tech agricultural zone The southern province of Phu Yen on October 17 started the construction of infrastructure for a hi-tech applied agricultural zone (AZ) with an investment of nearly 520 billion VND (22.6 million USD).  Phu Yen hi-tech AZ is one of the ten hi-tech AZs in a master plan for agricultural areas and zones applying high technologies towards 2020 with orientations towards 2030 under a decision of the Prime Minister.  Covering 460 ha in Hoa Quang Bac commune, Phu Hoa District, Phu Yen hi-tech AZ has been invested to improve Lo Chai 1 irrigation system with capacity of 304,000 m3 of water and 12-kilometer water supply pipes.  There will be 4-kilometre main road, a lighting system, a waste treatment system, an office building and some other supplementary and infrastructure units constructed in the zone.  To date, Phu Yen hi-tech AZ is home to seven invested projects, four of which have started operations, including Taiwan hi-tech AZ, chicken-breeding, biological experimental station and orchard farm.  Apart from the infrastructure project, the province will continue investing in construction of a center for hi-tech agricultural development and research, aiming to study, develop and transfer domestic and international technology applications to farmers and businesses in the south central coast region. Bulgarian minister sees trade potential with VN Viet Nam is  one of  Bulgaria's most important economic partners in Southeast Asia and bilateral trade between the two countries have strong prospects for further development, a senior official said. Addressing the Viet Nam-Bulgaria Business Forum in Ha Noi, Bulgarian Minister of Economy Bojidar Loukarsky called on business communities of both countries to fully exploit co-operation opportunities that arise, especially when the Viet Nam-EU Free Trade Agreement takes effect. Agreeing with his guest, Vietnamese Minister of Industry and Trade Tran Tuan Anh said trade agreements that Viet Nam has inked with several countries and blocs would also open up huge opportunities for Bulgarian and Vietnamese enterprises to cement their relationships. For its part, Viet Nam is committed to improving its legal framework and supporting enterprises' participation in trade and investment promotion campaigns, he said. Bulgarian enterprises attending the forum expressed their interest in collaborating with Vietnamese partners in many sectors including banking, agriculture, pharmaceuticals, cosmetics, food processing and IT. Viet Nam - Bulgaria trade has developed rapidly in recent years, from just US$18.5 million in 2006 to $100 million in 2015, the forum heard. In the first eight months of this year, bilateral trade saw an increase of 88 per cent to $96.7 million. Of this, Vietnamese exports accounted for $31 million, up 19 per cent year-on-year, while imports from Bulgaria hit $65.6 million, up 157 per cent. Viet Nam mainly exports coffee, pepper, cashew nuts, seafood and textile and garments to Bulgaria, while importing medicines, chemicals, machinery and equipment.  Strategic Delta area woos investors Authorities of the Cuu Long (Mekong) Delta province of Long An pledged to create the most favourable conditions for domestic and foreign investors and businesses at an investment promotion conference held in the province October 17. Tran Van Can, chairman of the province's People's Committee, said: "Our province's motto is ‘your difficulties are our difficulties, your success is our success.'" Located in a prime spot in the Southern Key Economic Region, the province serves as a bridge between HCM City and 12 provinces in the southern delta region. It also shares a western border with Cambodia. The province's road and waterway transport, including the Ben Luc - Long Thanh highway that connects the province with Long Thanh International Airport, has greatly improved over the years. These conditions have enabled the province to promote economic development and business co-operation at home and abroad, Can said. Despite difficulties, the province has achieved growth of 11.26 per cent and per capita income of VND50.7 million (US$2,273), among the highest in the delta, he said. Nearly 7,900 businesses are operating in the province with total investment capital of more than VND189 trillion. It is also home to 1,259 local projects with a combined investment of VND139.84 trillion. The province ranks the first in FDI attraction in the delta, with 772 projects with a total investment of over $5.1 billion from investors in 37 countries and territories, he said. Under the provincial master plan for socio-economic development until 2020, the province targets per capita income of VND80-85 million, and average GDP growth of 13 per cent a year, and a higher proportion of the industrial and service sectors included in the GDP. The province yesterday also tabled a list of 16 projects that need total investment capital of more than $7.396 billion. The projects are mostly in the fields of industrial parks, waste water treatment, biotechnology, logistics, agriculture, transport infrastructure and energy development, including the Long An Border Gate Economic Zone, Phu An Thanh Industrial Zone, a dragon fruit processing facility, and a solar energy development project. According to the zoning plan, the province is divided into three specific regions, each with specific investment needs. The first region (food security, tourism, and border gate economic area), has an advantage in agricultural production and tourism attraction. Investment areas with potential include hi-tech agriculture and agricultural processing near raw material zones and specialised production areas, Can said. The Binh Hiep Border Gate Economic Area in Moc Hoa and My Quy Tay Border Gate Economic Area are other potential investment choices, as well as eco-tourism tours, he said. The second region, the buffer zone, is oriented toward agricultural development and has a land fund for industrial development and eco-urban areas, he said. The province also plans to call for investment in hi-tech agricultural projects and solicit investors for existing industrial parks and clusters, and for projects in eco-urban areas along the river. The third region will focus on developing urban areas and complex industries in Duc Hoa, Can Giuoc and Can Duoc. This region is expected to drive development for the province in the future. It needs infrastructure investment at industrial parks and clusters, and residential and urban areas, among others. "The province's land fund for industrial development until 2020 is nearly 15,000ha, 5,000ha of which is clean land ready to welcome investors," he said. The province will prioritise projects using modern and environmentally-friendly technologies, and efficient use of land, mineral and other resources, he said. Speaking at the conference, Prime Minister Nguyen Xuan Phuc hailed the province's achievements over the years in socio-economic development, FDI attraction and the creation of a favourable investment climate. He asked local leaders to issue clear policies and commitments that would enhance trust among investors. The PM demanded that the province become innovative in its development thinking by using a green, clean economic model and ensuring sustainable development and environmental protection. He urged localities to develop a transparent legal framework and a fair competitive environment to ensure the rights of businesses. Local authorities at all levels, he said, must maintain dialogues with enterprises and walk side by side with them, especially newly established ones. Tran Du Lich, a member of the National Financial and Monetary Policy Advisory Council, proposed that the province worked with other localities in the area to improve transport infrastructure, and to solve human resource and environmental problems. At the conference, the provincial government awarded licences to 12 projects, six of which were worth total registered capital of VND4.33 trillion from local investors. Foreign investors invested a total of $118 million in the other six projects. Among the new investors was the Mekong Real-Estate Investment Company Limited, which will spend $50 million to build infrastructure for the Mekong Industrial Cluster in Long Huu Dong Commune in Can Duoc District. The Bang Duong Trade Construction Investment Co Ltd and Bang Duong-Bamboo Capital Joint Venture received an investment certificate for a project to upgrade and extend Route No.830 from An Thanh Town in Ben Luc District to Duc Hoa Town. The province also signed four memoranda of understanding with investors, who pledged to pour an additional $3.16 billion into the province. Six businesses also signed co-operation contracts to exploit Long An International Port and export bananas to Japan, among other projects.  Nghi Son EZ has 28 more investment projects Twenty eight projects received investment certificates in the Nghi Son Economic Zone in Thanh Hoa Province for the first nine months of this year. This was revealed by the Management Board of Nghi Son Economic Zone and Industrial Zones in the province. They comprised 27 domestic projects with total registered capital of VND7.96 trillion and one foreign invested project with registered capital of US$2.3 million. During the nine months, the management board also permitted four projects to increase their investment capital by VND306 billion and two projects to reduce their capital by VND26.5 billion, baothanhhoa.vn reported. By September 2016, the Nghi Son Economic Zone had attracted 10 foreign invested projects with total registered capital of $12.12 billion and 133 domestic projects with total registered capital of VND101.42 trillion. Meanwhile, in the nine months, there were several local and foreign investors who visited the zone to seek investment opportunities and sign memoranda of understanding (MoUs) for investment in the zone, according to the management board. They included Hyosung Group from South Korea which signed an MoU on investing $1 billion in the zone, Keystone Solution Group from the United States studying the development of healthcare projects in the zone and Royal Star Holdings Limited from Singapore studying the introduction of seaport and industrial zone infrastructure in the zone. Nghi Son Economic Zone is located in Tinh Gia District in central Thanh Hoa Province since 2006 and has the Nghi Son seaport system. The zone has given priority to investment in heavy industries and petrochemistry. It has a free trade region, a seaport, an urban area and an entertainment area, as well as financial, service and administrative areas. PVCFC announces 9-month business results PetroVietnam Ca Mau Fertiliser Joint Stock Company (PVCFC) has posted revenue of VND3.4 trillion (US$152.5 million) in the first nine months of the year. The figure represents a decrease of 12 per cent compared with the same period last year. PVCFC General Director Bui Minh Tien said the company had achieved just 58 per cent of the target set for the year. He attributed the performance to common difficulties in the fertiliser market. As of September 30, the company earned VND393 billion in before-tax profit, 16 per cent lower than the figure of the corresponding period. In the third quarter alone, PVCFC generated revenue of VND1.1 trillion and before-tax profit of VND25 billion. Seeing the nine-month business results, the company forecasts that the target of VND5.8 trillion in revenue and VND684 billion in before-tax profit will not be achievable.  Asanzo signs financing deal with VietinBank Asanzo Vietnam Electronics Joint Stock Company has announced it has recently signed a deal with VietinBank to finance the construction of new production facilities and for research and development. Neither the amount of the financing nor any specifics of the deal have been publicly disclosed, which is typical for these types of transactions, as it is highly confidential information. However, company officials did say that most of the financing has been designated for the purchase of plant and equipment and research related to a new joint venture with MyTV service (Telecommunication Group VNPT). It’s all part of the company’s plan to grow revenue  and increase its share of the television market in Vietnam.  Company officials claim to have had a 10% share of the television market in the early months of 2016. Surrogate country and surrogate value promote Vietnamese exports to US After signing of a Bilateral Trade Agreement (“BTA”) in 2000, the trade between Vietnam and US has flourished with total bilateral trade turnover increasing more than 10 times from US$1.5 billion in 2001 to over US$20 billion in 2011. The high quality Vietnamese goods exported to US market have benefitted the Vietnamese producers as well as US consumers.  In the meantime, a litany of US Anti-dumping (“AD”) cases were filed in order to stymie the Vietnamese exports of goods. In such difficult times, surrogate value experts have played an important role in promoting Vietnamese exports to the USA. In AD Investigations, the Vietnamese goods are alleged to be exported to the US market at less than their fair market value. Since the US Department of Commerce (“DOC”) treats Vietnam as a non-market economy (“NME”) country, it rejects all the cost and price data reported from Vietnam and determines the fair market value by constructing the cost of goods in a third country, called surrogate country.  As such, the choice of a surrogate country and surrogate value data holds the key to the outcome in the Vietnamese AD proceedings. To illustrate, in the US AD case on pangasius frozen fish fillets from Vietnam, up until the fifth administrative review of the AD Order, Bangladesh was consistently selected as the surrogate country.  The fair value based on the Bangladeshi surrogate values yielded reasonable AD margins, which was not to the liking of the Petitioners, Catfish Farmers of America (“CFA”). Therefore, in the sixth administrative review, CFA argued that DOC reject Bangladesh as the surrogate country. In the preliminary results, DOC preferred the Philippines as the surrogate country, citing its superior fish price data. This switch resulted in very high preliminary AD margin.  At this point, VASEP’s surrogate value expert from GDLSK LLP has diligently worked in Bangladesh and discovered a new price data source published by the Bangladeshi Department of Agricultural Marketing (“DAM”) to value whole live pangasius fish. He also persuaded DAM to officially release its price data along with several clarificatory letters. All of these information were then submitted before DOC. In the Final results issued in March 2011, in a remarkable turnaround, the DOC switched its surrogate country choice back to Bangladesh, citing the robustness of the DAM data for whole fish. As a result, the AD margins in the sixth review swung back to near zero level and the moribund Vietnamese exports to US was reinvigorated. In the preliminary results of the subsequent seventh administrative review, DOC selected Indonesia as the surrogate country. This time, VASEP’s surrogate value expert undertook extensive field trips in Bangladesh and Indonesia. In Bangladesh, he persuaded the government to publish the DAM data online. In Indonesia, he had the then Director General of Indonesian Aquaculture Statistics (“IAS”), Mr. Ketuk Sugama, issue a detailed affidavit, clarifying the IAS data for whole fish. In an encore, in the Final results issued in March, 2012, the Department switched back to Bangladesh. Commerce was persuaded to make this improbable switch solely on account of new and invaluable information obtained by the surrogate value expert from Bangladesh and Indonesia. Notably, Commerce’s final results in the sixth and seventh administrative reviews have also been affirmed by the Court of International Trade (“CIT”). In recent AD proceedings, DOC has preferred Indonesia over Bangladesh, notwithstanding that Indonesia was not even economically comparable to Vietnam. These decisions are pending in litigation. For future AD proceedings, VASEP’s surrogate value expert is engaged in a global research to identify the most suitable surrogate country. Let’s hope that with excellent work of surrogate value experts, the future would be brighter for Vietnamese exports to the US.  Binh Minh Plastics to lift foreign holding cap by year-end Binh Minh Plastics Company (BMP) is working with a consulting firm to lift its foreign investment cap to 100 per cent before the year-end, HCM City Securities Corporation reported. "It will take four months at the latest to complete all the procedures," the securities firm said in a report that predicted the relaxation will be finished by the end of this year. At the annual shareholders' meeting in April, the company approved of opening 100-per-cent stockholding to foreign investors this year. The plastic manufacturer therefore needs to eradicate business activities that are restricted to foreign investments. Its main business, trade on plastic products, is not included in the list of conditional business lines specified by the Ministry of Planning and Investment. However, its other two business segments, including chemical examination and testing services and road transport services, are conditional investments. The company also agreed to buy Da Nang Plastics Company (DPC), increasing its current holdings from 29.05 per cent to 100 per cent this year. The firm is working with consultants to decide the share swap ratio, which is expected at 100:27. Binh Minh will issue additional 429,000 shares to buy nearly 1.6 million shares, or 70.95 per cent of capital, of Da Nang Plastics Co. The deal is also forecast to be completed by year-end. The Binh Minh Plastics Co stock price rose for four days in a row on Friday, hitting a record high of VND200,000 (US$8.97) a share. It become the second stock valued at VND200,000 a share on the local securities market. The plastic company is among the 10 State-owned enterprises from which the State Capital Investment Corporation will divest capital. The State currently holds a 29.5-per-cent stake in Binh Minh Plastics Co. HCM City Securities Corp estimates Binh Minh's pre-tax profits will reach nearly VND629 billion in the first nine months of this year, a rise of 27.8 per cent year-on-year. For the whole year, the plastic firm is forecast to earn VND3.3 trillion in net sales and VND605.7 billion in net profits, year-on-year increases of 18.3 per cent and 16.7 per cent, respectively. Earnings-per-share ratio is expected at VND12,006 a share. NESCAFÉ Plan project doubles farmers’ income The model of planting additional trees in between coffee trees, introduced by Nestle Vietnam to domestic coffee farmers, has helped increase their income, while protecting the environment at the same time. The model, which is part of the NESCAFÉ Plan project, encourages farmers to plant additional trees, such as pepper, durian, and avocado, between coffee trees. It has helped many farmers optimise soil usage and increase biodiversity. Experts from Nestle instructed farmers on the appropriate density of additional trees in order to optimise soil usage. Afterwards, they compared the results of the new model with those of the current practice. Nestle Vietnam has held conferences at the model garden to show farmers the model and its benefits. The model is an effective method for farmers to have a stable income even if their coffee trees are aging and have low yield, by securing alternatives. After four years, 16,000 farmers have adopted the model, 70 per cent of the total number of farmers instructed. The farmers increased their income by 100 per cent, running laps around the 25 per cent if they only plant pepper between their coffee trees. Nestle Vietnam aims to expand the model to the whole of the Central Highlands. Started in Vietnam in 2011, the NESCAFÉ Plan project aims to develop sustainable agriculture and increase the quality and yield of Vietnamese coffee trees to improve the lives of 500,000 coffee farmers. As of now, the project has distributed more than 14 million high-yield, disease-resistant coffee seedlings to farmers to replant, and held almost 3,000 courses on sustainable coffee farming, attracting the participation of 33,000 farmers, and helped 21,000 farmers receive the international coffee certificate 4C. Citi and ADB partner to provide $100mil for microfinance in Asia The Asian Development Bank (ADB) has entered into an agreement with Citi to expand local currency lending to the microfinance sector under the Microfinance Risk Participation and Guarantee Programme.  Front row from left to right: Sumanta Panigrahi, Managing Director Asia Head, Citi Export & Agency Finance; Christine Engstrom, Director, Financial Institution Division, Private Sector Operations Department, ADB. Back row from left to right: Irene Tapay, ADB; Darshan Mankad, Citi; Sabine Spohn, ADB; Bart Raemaekers, ADB; Joel Gregorio, ADB; Melissa Escurel, ADB. Under the agreement, ADB and Citi will together facilitate up to $100 million of local currency loans to microfinance institutions in developing Asia. “We’re excited to partner with Citi, an established player in microfinance in many countries in developing Asia,” said Christine Engstrom, director in the Private Sector Operations Department. “Our partnership will help further expand the microfinance Programme, which has already facilitated more than $370 million in local currency loans across the region since 2012. Together, Citibank and ADB will improve access to financial services to even more low-income families and small-business owners, especially in rural and remote areas in Asia and the Pacific.” Currently many microfinance institutions struggle to access funds for growth from the commercial market. Through the microfinance programme, ADB fills market gaps by sharing risks with commercial banks to promote local currency lending to those institutions. This helps to mitigate microfinance institutions’ exposure to foreign exchange risks.  Commenting on the partnership, Rajesh Mehta, regional head of Treasury and Trade Solutions for Citi Asia Pacific said, “At Citi, we aim to responsibly provide financial services that enable progress and economic growth for our clients. We are honored to strengthen our collaboration with our strategic partner ADB, and hope to make more meaningful contributions to the development of the emerging markets.”  Backed by ADB's AAA credit rating, the microfinance programe provides risk sharing and guarantees to international and local partner financial institutions. Since 2012, the microfinance programme has supported more than two million microfinance borrowers, primarily in India, Bangladesh and Indonesia. SmartOSC holds second Meet Magento in Vietnam On October 15, ecommerce service provider SmartOSC held the second Meet Magento event in Vietnam. 1,000 companies from 10 countries joined the event in Ho Chi Minh City to learn about the newest trends in ecommerce and the latest version of Magento. The companies, including solutions providers, retailers, marketplaces from Vietnam and other countries, shared their experience and looked for opportunities to cooperate. As the Southeast Asian ecommerce market is growing, the need for an ecommerce platform with a lot of functions and is flexible for expansion is direr than ever. At the event, representatives of companies including Amazon Web Service, Facebook, YouTube, Quarticon, Emarsys and Dotmailer shared about how they boosted sales through web, mobile and social media. The companies also discussed the platform Magento 2 launched in late 2015. Representatives of OgilvyOne, Amazon, Facebook and Google talked about how a digital transformation can benefit companies. Kenny Powar, former chief executive officer of the Asia Pacific region at Possible Worldwide and Christopher Beselin, former CEO of Lazada talked about trends in ecommerce and how companies in the field compete. Topics discussed at the event included technology (mobile, hosting, platform, web development, apps development...); trends (omni-channel retail, Internet of Things, mobile commerce, digitalisation...) and solutions (branding, marketing, sales, payment, shipping...). “Meet Magento Vietnam 2016 is a chance for the ecommerce community in general and fans of the Magento ecosystem to find opportunities to connect and cooperate for mutual benefits,” said Nguyen Thai Son, co-founder of organiser SmartOSC. SmartOSC provides services in consulting, designing, building and marketing Busines-to-Customer online sales channels. The company has served hundreds of large customers using Magento platform from North America and Europe. As of February 2012, SmartOSC has been named a Magento Silver Partner. Supported by Magento Inc, Meet Magento, which has taken place in more than 20 countries all over the world since 2009, is a forum for enthusiasts of e-commerce platform Magento, merchants and service providers to get independent information about Magento and e-commerce and build mutually-beneficial relationships. Reference exchange rate goes up 4 VND The reference exchange rate on October 18 was set at 22,020 VND for one US dollar, up 4 VND from the day before.  With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,680 VND per USD and the floor rate is 21,360 VND per USD.  However, the listed rates varied from bank to bank in the early opening hours.  Vietcombank raised its buying and selling rates by 5 VND to 22,275 VND and 22,345 per US dollar from a day ago.  Techcombank cut it buying rate by 10 VND to 22,250 VND per US dollar, while maintained the same selling rate as the day before at 22,350 VND/USD.  BIDV kept its rates unchanged at 22,270 VND/22,340 VND (buying/selling).  The listed rates at Eximbank were 22,255 – 22,335 VND/USD, the same as October 17.- Vietnam’s food products introduced to French customers Nearly 30 Vietnamese enterprises have brought Vietnam’s food products to the Paris international food industry expo - SIAL Paris 2016 , which kicked off on October 16 at the Paris Nord Villepinte convention centre.  Vietnamese companies’ products including rice and products from rice, pepper, cashew, vegetables, honey and coconut are displayed at an area of 250 sq.m.  Vietnam’s participation in the event is one of important events in the strategy of building the national brands for Vietnam’s food industry, especially in Europe, to promote a common image for the Vietnamese food on the international market.  According to Vietnam’s Ambassador to France Nguyen Ngoc Son, the exhibition is an important gateway for Vietnamese enterprises to introduce their products and penetrate into French and EU markets.  Attending the exhibition will also help Vietnamese enterprises to understanding standards on food safety and hygiene at one of the world’s choosiest markets.  The SIAL Paris 2016 takes place every two years, drawing around 7,000 enterprises from over 100 countries.  The food industry is one of France’s key industries with a revenue of 170 billion EUR (187 billion USD). Bulgaria, Vietnam seek to further trade cooperation Vietnamese and Bulgarian businesses gathered in Hanoi on October 17 to seek opportunities for investment and cooperation in various field. At the Vietnam-Bulgaria Business Forum held by the Ministry of Industry and  Trade on the visit of a Bulgarian business delegation led by Minister of Economy Bonzidar Lukarsky, Minister of Industry and Trade Tran Tuan Anh stressed the importance of bilateral cooperation between the two countries in the past years, while highlighting the potential of bilateral trade and investment.  Minister Bonjidar Lukarsky appreciated the organisation of the forum that serves as a good opportunity for enterprises of the two countries to learn about each other market, approach and take advantage of cooperation and investment opportunities in many fields.  The trade prospect between the two countries is bright, especially as a number of bilateral and multilateral free trade agreements between Vietnam and countries in the region and the world have been signed, he said.  Vietnam is one of Bulgaria’s key economic partners in Southeast Asia, Minister Lukarsky said, adding that Bulgarian enterprises are interested in conditions and investment incentives in Vietnam, especially institution, business environment and support mechanism.  Minister Anh noted the structure of goods between the two countries has been more diverse on categories and had positive changes in the added value.  Vietnam’s major export goods to Bulgaria are coffee, garment and textiles, seafood, pepper and cashew while importing pharmaceuticals, chemicals, pesticides, wheat, and machinery.  However, despite rapid growth in recent years, the trade exchange has been modest and yet to match the potential.  According to the statistics from the General Department of Customs, by the end of August, 2016, the two-way trade exchange between Vietnam and Bulgaria reached 96.7 million USD, up 88 percent from 2015.  Of which, Vietnam’s export value reaches only 31 million USD, a 19-percent increase from 2015, and imported the amount of goods worth 65.6 million USD, up 157 percent from the previous year.  Minister Tuan pledged to create favourable conditions and a simpler legal framework for economic cooperation activities between the two countries as well as study incentives to help enterprises from the two countries to approach and implement trade investment and promotion programmes effectively.  He also recommended Bulgaria to encourage and help agencies and enterprises of the two countries to connect and cooperate in fields of the two countries’ strength and need such as transport infrastructure, irrigation development, materials for garments and textiles, electricity resources development, chemicals and pharmaceuticals. Vietjet’s tickets for Hanoi-Busan flight put up for sale The low-cost airline Vietjet Air has officially launched tickets for Hanoi-Busan flights, which will be officially operated from December 16, at a price from 920,000 VND (42 USD).  A two-way flight, operated daily except Thursday, takes about four hours and a half per leg.  It departs from Hanoi at 1:00 am and arrived in Busan in the Republic of Korea (RoK) at 7:00 (local time). The return flight will take off from Busan at 8:00pm and reach Hanoi at 11:05pm.  With a population of about 4 million, Busan is the second largest city in the RoK after Seoul. The busy Busan city is among destinations in Vietjet Air’s plan to expand its regional network.  With the new route, VietJet Air will raise its total air routes to the RoK to three, meeting travel and trade demands of passengers at a reasonable cost. Go Vacation Vietnam comes into being Go Vacation Vietnam was launched last week, a joint venture between Buffalo Tours, a member of the Thien Minh Group (TMG), and the Go Vacation Group, a total service destination management company with over 500 expatriate and local travel professionals looking after more than 300,000 travelers and creating 1.5 million room nights annually. The establishment of Go Vacation Vietnam will add a vital new dimension to the Go Vacation Group, which already covers Thailand, Indonesia, and Sri Lanka. The joint venture agreement was signed during ITB Berlin on March 10. Planning since includes offices in Ho Chi Minh City and Hanoi as well as a service branch in Phan Thiet to provide a comprehensive range of tour itineraries in Southeast Asia’s most appealing vacation destinations. Buffalo Tours, one of the leading destination management companies, is part of TMG, a premier travel and hospitality corporation that includes hotels, resorts, aircraft, cruisers and luxury trains. Recognition of the success of Buffalo Tours has come in the form of a number of international travel awards over recent years. With the birth of Go Vacation Vietnam, Buffalo Tours and Go Vacation will create a wealth of opportunities to expand the potential of the booming Southeast Asia region for the benefit of global tour operators and guests. Buffalo Tours was established in 1994 and has offices and operations in Vietnam, Cambodia, Laos, Thailand, Myanmar, Singapore, Malaysia, Indonesia, Japan, China and Hong Kong. It offers customized, guided private and group tours, accommodation, transfers, flights, cruises, day trips and excursions across Asia. Safe shrimp production chain for export to be supervised The Ministry of Agriculture and Rural Development (MARD) has designed a plan to monitor the production chain of safe shrimp for export, aiming to develop shrimp farms to the standards of the World Organisation for Animal Health (OIE) and countries importing the product. To this end, the ministry will direct the implementation of a national plan on monitoring diseases on shrimp for export in the 2017-2020 period.  The People’s Committees of major shrimp producing localities have been asked to make plans and allocate capital for the application of measures to prevent shrimp diseases to create low-risk areas and shrimp farms with production chain meeting safety requirements.  It is set that until the end of 2017, at lease 10% of breeding shrimp farms producing over 1 billion of post larval shrimps each year will be recognised as safe farms.  At the same time, the plan also sets a goal of at least one farm recognised to have production chain meeting OIE safety standards.  The regulations of the OIE and importing countries will also be popularised among enterprises, along with guidelines to reach the standards.  According to reports from localities, by the end of September 2016, there were 80,000 hectares of whiteleg shrimp farming nationwide, a year-on-year rise of 6.3%, with an output of 200,000 tonnes, up 4.2%.  Meanwhile, total tiger spawn area was nearly 583,000 hectares, a year on year increase of 0.6%, with a production of over 174,000 tonnes, a fall of 2.5%.  The Vietnam Association of Seafood Exporters and Producers also reported that as of September 15, Vietnam’s total shrimp export was more than US$2 billion, including US$1.25 billion from whiteleg shrimp, US$641 million from tiger spawn, and more than US$168 million of sea shrimp. Vinaconex 3 to raise operating capital by $2.24mn Construction Company No. 3 (Vinaconex 3) will issue 500 unsecured bonds in the fourth quarter to raise its operating capital. The total value of the issuance will be VND50 billion ($2.24 million) at a price of VND100 million ($4,483) per bond, which bear an interest rate of 10 per cent per annum and have a two-year term, a statement sent by the company to the State Audit Office of Vietnam (SAV) on October 11 reveals. This issuance comes after Vinaconex 3 announced last month that it will purchase shares in the Hanoi Construction Material Company (CMC Hanoi) on the over-the-counter (OTC) market. It is expected to purchase a maximum of 5.7 million shares, or 95.34 per cent of CMC Hanoi’s charter capital, at a maximum price of VND35,000 ($1.57) per share, for a total outlay of VND199.5 billion ($8.9 million). Looking at CMC Hanoi’s business results over recent years, however, many have wondered about this strategic move by Vinaconex 3. Business results have been less than stellar. Cumulative losses as at December 31, 2015 reached VND38.2 billion ($1.7 million). It does, however, own a prime plot of land at 249 Thuy Khue Street in the capital. Its largest shareholder, the Hanoi Trade Corporation (Hapro), has divested its entire holding of 510,000 shares, or 51 per cent of CMC Hanoi’s charter capital, since the beginning of this year. Eighteen investors registered to purchase a total of 2.55 million shares; five times higher than the number on offer. Three individual investors spent a total of VND38.25 billion ($1.7 million) on acquiring 51 per cent at VND75,000 ($3.36) per share. The initial offering price set by Hapro was only VND23,100 ($1.04). On September 12 CMC Hanoi completed an issuance of 5 million shares, raising its charter capital from VND10 billion ($448,300) to VND60 billion ($2.7 million). Five internal individual shareholders bought Hapro’s slice at a price of VND10,000 ($0.45) per share. With five individual shareholders holding 5.72 million shares, or 95.34 per cent of CMC Hanoi’s charter capital, Vinaconex 3 must wait another year to complete the deal as the 5 million shares issued in September cannot be transferred for 12 months from the purchasing date. As at October 12, Vinaconex 3’s shares were trading at around VND34,000 ($1.52), up 1.5 times since the beginning of the year (at adjusted prices). VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR