BUSINESS IN BRIEF 7/10 Decree stipulates business fee structure Organisations dealing in production and business activities, with a charter or investment capital of more than VND10 billion (US$444,440), must pay a business fee of VND3 million per year. This is stipulated by Decree No 139/2016/ND-CP which was issued on Tuesday and will take effect on January 1 next year. The decree requires organisations with a charter or investment capital of less than VND10 billion to pay a fee of VND2 million per year. For branches and representative offices of the organisations, or non-productive units, the annual fee is VND1 million. The decree states that individuals and households involved in production and business activities generating annual revenues of more than VND500 million must pay a fee of VND1 million per year. Individuals and households with annual revenues of VND300 million to VND500 million, are subject to a fee of VND500,000 per year. Those with annual revenues of VND100 million to VND300 million will pay VND300,000 per year. All fees will be cut in half if the organisations, individuals and households are granted tax or business registration codes during the second half of the year. The decree stipulates that individuals and households with annual revenues of VND100 million or less will not be charged any fees. Individuals and households engaging in irregular production and business activities, or those producing salt, will also be exempt from paying fees. Other groups expempt from paying fees include: organisations, individuals and households cultivating and catching seafood, or providing fishery logistics services; press agencies; and cooperatives dealing in agricultural production services.  A better life for textile traders The Ministry of Industry and Trade has submitted a proposal to Prime Minister Nguyen Xuan Phuc suggesting solutions to issues raised by the Viet Nam Textile and Apparel Association (VITAS). This includes a proposition to abolish inspections of formaldehyde content in textiles and garments. VITAS said the current regulation on this inspection has no legal grounds, and is costly and time-consuming. The ministry has recommended that the directive be abolished and instead, a national technical standard for garments and textile products be put in place. The standard is to be promulgated by the beginning of 2017. Responding to VITAS' demand for modifications in the garment and textile industry's planning and strategy, the ministry has scheduled changes next year in keeping with market realities. The ministry said the sector's ability in dyeing has been limited due to shortage of capital for investment in modern technologies and waste water management. To encourage growth, it has proposed that the Government conduct specific studies to grant licences for the establishment of 500- to 1,000-hectare garment and textile industrial parks (IPs), as well as give them preferential interest rates. Deputy minister Tran Quoc Khanh recently told Viet Nam News that the ministry has tried to solve the sector's business problems and that legal documents under the ministry's authority that are causing problems would be abolished in the shortest possible time.  Kenmark Industrial Zone to be sold Hai Duong Provincial People's Committee have authorised the Bank for Investment and Development (BIDV) and Sai Gon Ha Noi Commercial Joint Stock Bank (SHB) to sell off the Viet Hoa-Kenmark Industrial Zone as loan collateral since its Taiwan-based owner Kenmark Industrial Co., Ltd. has failed to pay back the banks' loans of US$67.6 million. According to enternews.vn, Kenmark Industrial Co., Ltd. had failed to find a suitable buyer to sell off their industrial zone before the deadline of August 31 that was set by the local authority. This resulted in its two main creditors BIDV bank and SHB bank selling off the venue to retrieve their loans' worth. "The key objective is to conclude the matter, retrieve the loans for the banks and reinstall the project since the venue has been off the market for too long, thus causing a loss in the province's business environment," said an informed source. The Viet Hoa-Kenmark Industrial Zone had been under construction by Kenmark Industrial Co. since 2005. The company had since taken loans totalling US$67.6 million from BIDV and SHB in 2008, two thirds of the total investment for the first phase. BIDV is the largest creditor with a loan of US$39.1 million, while SHB provided a loan of US$18.5 million, and has since incorporated a smaller loan of US$10 million after they acquired Habubank, another creditor to Kenmark Co. The project is situated at a very profitable location right at the entrance to Hai Duong City, and has had other potential buyers, but Kenmark Co.'s given price was too high for the seller and buyer to reach an agreement. In retrospect, problems arose when Kenmark Co.'s civil disagreement resulted in their two partners closing factories within the industry zone. Without funding for further operation and investment, Kenmark's Chairman Hwang Ding Kuo left for Taiwan in 2010, while his creditors sealed off the site. This time around, the banks as Kenmark Co.'s creditors will have the final decision on fixing the price of the project and in finding a new buyer. The original investor has therefore been discredited. At present, it is still too early to assess the actual price and method of transaction. The Management Board of Hai Duong Industrial Zone is working with the banks to devise a detailed plan to submit to the Hai Duong Provincial People's Committee for approval. The estimated price cannot be lower than the loan of US$67.6 million, and this project needs a fast solution to clear the way for other foreign investors in the province.  Ministries asked to ease difficulties for coal sector Deputy Prime Minister Trinh Dinh Dung has asked relevant ministries and agencies to put forth proposals to ease difficulties for Viet Nam National Coal-Mineral Industries Holding (TKV). The aim is to ensure competition, retain market share and improve production capacity. The Ministry of Industry and Trade was assigned to cooperate with the ministries of finance, natural resource and environment, planning and investment and relevant agencies to consider TKV's problems, particularly regarding policies on taxes relevant to the coal sector, methods on restructuring the corporation to develop business and production and addressing competition in domestic and foreign markets. With regard to the coal consumption market, the deputy PM asked ministries to issue policies for coal exports in the 2016-20 period to help the sector take the initiative in managing its production and stablising jobs for workers. In recent years, the coal sector has continuously been faced with difficulties. It had to exploit coal from the earth's deep layer, but consumption has been very sluggish, leading to a large inventory volume. Meanwhile, there has been an increase in taxes and fee, affecting income and living standards of the workers. Since July 1, 2016, the tax on natural resource exploitation has increased by three per cent to touch 12 per cent for open-cast mining and 10 per cent for pit-mining. Environment fee was raised from VND6,000 to VND10,000 per tonne. A TKV report dated June 30, 2016, showed that there were was a stock of nearly 10 million tonnes of coal due to the decrease in consumption in the coal market. In that context, TKV's coal price was still high in comparison with its competition, which is why it had failed to capitalise on exports. Domestic consumption has continuously reduced since early this year because key users such as thermo-electricity, cement and fertilisers had all cut productivity. According to enternews.vn, coal producers in the country's western region, including Nam Mau, Uong Bi and Vang Danh, have high volume of inventory, with a total of more than 910,000 tonnes of crude coal. TKV Deputy General Director Nguyen Ngoc Co said the corporation's expense was estimated to reach more than VND1.3 trillion (US$58.18 million) per year, excluding an additional VND70 billion per year as environment fee, which will be charged according to the amount of gravelly soil discharged from the crude coal to the environment. With the new taxes and fees, TKV estimated that it would have to pay VND731 billion as tax for natural resource exploitation in the latter half of this year. In 2017, it would have to pay VND1.5 trillion for this tax. The sector is also witnessing an exhaustion of open-cast mines. The open-cast mine with the largest volume of coal is the Nui Beo mine. The sector has been perfunctorily exploiting the open-cast mines, with annual volume one-fifth compared with 2012. It will exploit pit-mining by 2018. As for pit-mining, the sector has been exploiting coal at a depth of 300,and deeper, where there is high risk of fire and gas explosion. Therefore, the increase in taxes, fees and expenses for large exploitation projects has pushed the corporation's coal price higher, making it less competitive.  Salary raises lower than last year, but expected to rise in 2017 Both multinationals and local companies have given lower salary increases this year compared to 2015, a survey by Mercer, a leading global provider of human resource services, and Talentnet Corp, its associate in Viet Nam, has found. Speaking at a seminar in HCM City on October 6, Hoa Nguyen, senior director of Talentnet, said that while multinationals paid 8.9 per cent more, domestic giants paid 9.3 per cent more, compared to last year's figures of 9 per cent and 9.7 per cent, respectively. However, companies plan to give a slightly higher salary for 2017 because of more optimistic business forecasts for the 2016-17 period, she said. The hi-tech, manufacturing, life sciences and chemicals industries were the top four sectors providing the highest salary increase rate in the market at 9.7-9.9 per cent. Education, financial services and banking, and oil and mining saw the lowest salary increase rate of 5 per cent – 7.5 per cent. The difference in base salaries paid by multinational and Vietnamese companies remained high at 31 per cent, she said, adding that the difference gradually widens from professional to management levels as multinationals focus on offering higher salaries to managers. Even though they pay less than multinationals, local companies are willing to be more flexible in pay and compete with foreign firms for key talents. The 2015 voluntary staff turnover rate of multinational companies was higher than 2014 due to the gradual economy recovery while the staff turnover rate of local companies in 2015 is slightly lower than the 2014, with multinationals having lower average voluntary staff turnover rates than local companies (13.7 per cent versus 17 per cent), she said. For multinationals, the top three industries with a high staff turnover rate were retail (39 per cent), life sciences (17 per cent) and technology (16.2 per cent), while chemicals and oil and mining had the lowest staff turnover rate. The jobs of sales managers, sales executives and marketing managers remained the hot jobs, with companies having difficulty recruiting personnel and keeping them for long. A total of 557 multinational and local companies with more than 244,526 employees in various industries took part in the survey, with the number of Vietnamese companies increasing by 30 per cent over last year's survey. The increase in the number of Vietnamese companies in the survey indicates their more serious attitude towards remuneration and their desire to improve their salaries and to know how competitive their salaries are compared to the market. Four metalworking, supporting industries expos open in HCM City Four exhibitions opened at a single venue, the Saigon Exhibition and Convention Centre, in HCM City on October 6. METALEX Vietnam features over 500 brands from 25 countries and eight national pavilions showcasing the latest metalworking technologies. Isara Burintramart, managing director of Reed Tradex Co., Ltd., said, "Over the past 10 years Metalex Vietnam has gained trust as Việt Nam's international exhibition which helps bring unique opportunities for all participants to learn, source new machinery and discover the latest developments in metalworking." Nepcon Vietnam offers electronics manufacturers the opportunity to witness new SMT (surface-mount technology) and machinery in the electronics sector, he said. The "Business Alliance for Supporting Industry 2016" is meant to connect Japanese parts buyers with Vietnamese parts suppliers. It is organised by the Japan External Trade Organization (JETRO) in HCM City and the Investment and Trade Promotion Centre of HCM City, Takimoto Koji, chief representative of JETRO in HCM City, said: "At present the local procurement ratio of Japanese enterprises in Việt Nam is still at a very low level of 32 per cent compared to 56 per cent in Thailand and 65 per cent in China." The event has 65 booths, "of which 50 booths are given to Vietnamese companies as our contribution to the development of the supporting industry in Viet Nam," he said. "Industrial Components and Subcontracting Vietnam" also offers a good platform for parts makers and buyers to compare notes and seek business opportunities, Burintramart said. The events, to go on until October 8, also include many other activities like engineer master class, technology presentations, shows in show, hand soldering championship, and the long-awaited top-spinning contest. "All the activities are for participants to gain great ideas being shared in this annual gathering of industrial community," Burintramart said. Le Thanh Liem, deputy chairman of the HCM City People's Committee, said: "The city has identified that developing supporting industries plays an important role in increasing the use of local parts and the value and competitiveness of industrial products, reducing the trade deficit, increasing the ability to attract foreign investment and facilitating development of small and medium-sized businesses." The city has implemented many measures to promote the sector, he added. First batches of Vietnamese fresh longan reach Malaysia Viet Nam has exported its first batches of fresh longan to Malaysia, according to the Viet Nam Trade Office in Malaysia. The office, in collaboration with JSC Advanced International (AIC Group) Company and Supreme fresh Farm Sdn Bhd Malaysia, successfully shipped 10 tonnes of Vietnamese fresh longan to the Malaysian market for the first time, after more than two years of preparing for the export of this fruit to the country. To promote exports of the Vietnamese longan to Malaysia, on September 28, the enterprises also partnered with the Matahari supermarket chain to organise a programme on advertising the Vietnamese fresh longan in Selangor, Malaysia. The programme introduced the Vietnamese fresh longan to potential Malaysian customers, who liked the fruit for its delicious taste and reasonable price. Recently, several Vietnamese fruits have been granted export licences for many countries, including mango and dragon fruit to Australia.  Anti-dumping investigation on H-shaped Chinese steel products launched The Ministry of Industry and Trade on October 5 decided to conduct an anti-dumping investigation into H-shaped steel products imported from China (including Hong Kong). Under Decision 3993/QĐ-BCT, the steel products under investigation are coded HS 7216.33.00, 7228.70.10 and 7228.70.90. The dumping period of investigation is from April 1, 2015 to March 31, 2016, and the damage period of investigation is from April 1, 2013 to March 31, 2016, according to the decision. The investigation was launched after the ministry's Viet Nam Competition Authority (VCA) received an appeal from domestic steel enterprises in July demanding imposition of anti-dumping measures on H-shaped Chinese steel products. The purpose of the petition was to prevent the products from being dumped in Viet Nam, which seriously affected local businesses, the enterprises said.  To aid the investigation, the VCA asked petitioners to provide their firms' information related to design capacity and output of H-shaped steel in the past three years and during the first half of this year. Currently, the VCA is carrying out an anti-dumping probe into colour-coated steel sheets imported from China and South Korea. The Ministry of Industry and Trade this year also decided to impose additional tariffs on imported alloys, non-alloy steel ingots and steel rods to safeguard against cheap imports that were allegedly threatening the domestic industry.  Daiwa House to quadruple Viet Nam rental factories Daiwa House Industry plans to increase the size of rental factories it operates in an industrial park in southern Vietnam almost fourfold by March 2019, aiming to capture demand from small and midsize businesses looking to enter the country. The Japanese homebuilder has a 40 per cent stake in the Long Duc Industrial Park near Ho Chi Minh City. At present, it manages 7,000 sq. meters of rental factories. By fiscal 2018, the company plans to construct six more buildings, expanding floor space to 26,000 sq. meters at a projected cost of around 2 billion yen ($19.7 million). The space is leased to corporate tenants on five-year contracts at a standard rate of $5,000 a month per 1,000 sq. meters. While that is around 20 per cent more expensive than local competitors, the main selling point is that the factories have completed infrastructure, including utilities and communications. Daiwa House also has staff members who understand Japanese assist with complex administrative procedures, and the company cooperates in hiring personnel as well. Daiwa House plans to invest 700 billion yen in real estate domestically and abroad over the next three years and will also put effort into businesses that maintain and operate assets. It currently only has rental factories in Vietnam, but is accelerating efforts to cultivate overseas markets, including construction of rental logistics facilities in Indonesia. Vietnam has a population of more than 90 million people and the average worker's wage is less than half of Japan's. The country is also close to the urban areas of Southeast Asia, including Thailand and Indonesia, making it well suited as a processing and export location. In a survey by the Japan External Trade Organization asking Japanese companies in which countries and regions they would like to expand their businesses, Vietnam ranked fourth behind China, Thailand and the U.S. A growing number of smaller businesses in particular are opting to utilize rental factories because this reduces upfront investment costs and makes withdrawal from an area easier.  Tax incentives following FTA commitment won't affect budget Tax incentives following commitments to Viet Nam's free trade agreements (FTAs) would not significantly impact budget revenues, as the liberation of trade is to be gradual, according to representatives from the Ministry of Finance. Pham Tuan Anh, Deputy Director of the Ministry's Department of International Cooperation, said at yesterday's conference that, to date, Viet Nam has signed FTAs, and the process of reducing the proportion of import-export taxes in budget revenues actually began with the country's participation in the World Trade Organisation. Further, there were roadmaps for tax liberalisation following commitments to FTAs, thus, the reduction in import-export tax revenues would not be sudden, Tuan Anh said. Tuan Anh noted that tax liberalization would improve the economy's competitiveness and boost business and production, which would make up for the reduction in import-tax revenues. According to Dao Thi Thu Huong, Deputy Director of the General Department of Customs' Import-Export Tax Department, import-export taxes currently accounted for 8 per cent of budget revenues. While in the 2016-20 period, the proportion was expected to fall to 6-7 per cent. In 2016, revenues from import-export taxes were estimated to total VND270 trillion (US$12.05 billion). The Law on Import-Export Taxes No 107/13-16/QH13 came into force on September 1. Huong said at the conference that overseas Vietnamese who return home would no longer enjoy tax exemptions when importing cars or motorbikes under the regime of movable property, as of the beginning of September. Previously, tax exemptions were provided to overseas Vietnamese to encourage their repatriation, which created a loophole, Huong said. Huong added that only one in ten automobiles and motorbikes imported under the regime of movable property of overseas Vietnamese were found to be of the right subject for tax exemptions. FTA to boost Viet Nam-Russia trade The Viet Nam – Eurasian Economic Union (EAEU) free trade agreement which took effect on October 5 is expected to expand trade between Viet Nam and Russia from the current US$4 billion to $10 billion in the next five to seven years, a Russian official said. Speaking to the media on Tuesday the Russian consul in HCM City, Alexey Popov, said bilateral trade has been on the rise in recent years. With this trend coupled with the co-operation between Russia and Viet Nam in the Việt Nam-EAEU FTA, it is quite possible to grow bilateral trade by two to three times and even more, he said. Ivan Gumnikov of the Russian Trade Office in Viet Nam said after the agreement takes effect two-thirds of all tariff lines on goods traded between Viet Nam and Russia would be reduced to zero per cent. The tariffs on the remaining goods would gradually reduce to zero in the next five to 10 years, he said. Russia is strong in products like meat, milk, wheat flour, fertilisers, oil and gas, oil-based products, automobiles, steel, and machinery. Russian automobile manufacturers are actively working to set up joint ventures with Vietnamese firms. The FTA offers Vietnamese firms the opportunity to boost exports of farm produce, foodstuff, seafood, garment and textile and footwear to Russia. According to the Viet Nam Textile and Apparel Association, the FTA will increase Viet Nam's garment and textile, footwear and seafood exports to Russia by 30-50 per cent thanks to tariffs falling from 35 per cent (seafood) and 10-18 per cent (garment and textile and footwear) to zero per cent. Popov said countries involved in the FTA have rapidly simplified their customs clearance processes to facilitate trade. The EAEU consists of Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan Viet Nam and Russia are discussing making payment in their own currencies to better promote investment and trade ties, Popov said. According to the Ministry of Industry and Trade's import and export department, 938 Vietnamese firms export goods to the EAEU, with the main items being seafood, coffee, tea, rice, cashew, pepper, garment and textile, timber, and confectionary. The trade deal was signed in Kazakhstan in May last year following eight rounds of negotiations. Nguyen Phuong dong, deputy director of the HCM City Department of Industry and Trade, said 41 local firms, mostly from the garment and textile, footwear, handicrafts, wood products, and food and foodstuff industries, are taking part in the "Saigon Expo" to be held at the Hanoi-Moscow Culture-Trade Complex (Incentra) from October 6 to 14. The event would be a good opportunity for them to acquaint Russian consumers with their goods and explore investment opportunities in that market, he said. MBBank increases charter capital by $36 million The State Bank of Viet Nam (SBV) gave written consent for Viet Nam based Military Bank's (MBBank) increase in charter capital to VND17.127 trillion (US$766 million) from VND16.31 trillion ($730 million). MBBank's decision to increase charter capital was approved at the bank's annual shareholders' meeting on April 28, 2016, and by their Board of Directors on June 14, 2016. SBV directed MBBank to increase charter capital in accordance with the appropriate legal requirements. In March 2016, MBBank increased its charter capital from VND16 trillion ($716.6 million) to VND16.31 trillion after merging with the Song Da Finance Company. According to MBBank's financial report in the second quarter of 2016, the bank's before tax revenue reached VND979 billion ($43.8 million), down by five per cent compared with the same period in 2015.  Vietcombank plans to open subsidiary bank in Laos The Commercial Joint Stock Bank for Foreign Trade of Viet Nam (Vietcombank) plans to set up a 100 per cent owned subsidiary bank in Laos with US$80 million charter capital. According to Vietcombank, it has submitted the plan to its shareholders for approval. Under the plan, the subsidiary bank will be headquartered in capital Vientiane. It will provide finance and banking services such as deposit and credit, card payment, insurance and e-banking, besides supporting Viet Nam-Laos trade promotion and investment activities. Vietcombank's managing board said Laos has relatively high economic growth and a large demand on capital and financial services. Besides this, trade turnover and the number of projects invested in Laos is quite significant. Therefore, early participation in the Laos market will be a potentially useful investment opportunity for Vietcombank, the board said, adding that the plan has so far received the green light and support from Laos' relevant authorities. In addition, the opening of the subsidiary bank in Laos is also in accordance with Vietcombank's strategies and demands to enlarge the market share. Since 2014, Vietnamese banks such as Vietinbank, Bank for Investment and Development of Viet Nam, Agribank, Sacombank and SHB have opened subsidiaries and branches in Laos.  Gov't scrutinises financial resources to settle bad debts The Government will scrutinise the use of financial resources to settle bad debts, Mai Tien Dung, Minister and Chairman of the Government Office, said on October 4 during a Government press conference. Dũng said this after a proposal to use State funds to settle commercial banks' bad debts, as stated in the draft plan on economic restructuring for the 2016-2020 period, was given the cold shoulder recently. Experts said the solution is infeasible as it puts pressure on public debts, especially in the context of State budget deficit. Under the plan drafted by the Ministry of Planning and Investment, the feasibility of the proposal will be studied by the Ministry of Finance and the State Bank of Viet Nam. Authorities will have to submit a relevant resolution to the National Assembly for approval next year. Dũng said that this was only a preliminary proposal drafted during the compilation of the plan on economic restructuring for the 2016-20 period. Based on reviews and assessments of bad debt settlement in the 2011-15 period, the Government would consider carefully the use of financial resources to resolve debts in the future in accordance with targets of restructuring the system of credit institutions and the whole economy from 2016 to 2020, he said. Implementation would be transparent and effective while ensuring legal regulations and safety of public debts, Dung said. Experiences of other countries showed that financial resources were required to be able to settle bad debts thoroughly and effectively. Some countries had to spend a lot of money, even up to 10-15 per cent of their GDP, for settlement. A series of measures, such as provision for risky loans, enhancement of debt retrieval, sale of mortgaged assets, transfer of bad debts into contribution capital and establishment of the Viet Nam Asset Management Company, have, so far, been initiated to resolve bad debts. However, results have been limited. To settle bad debts thoroughly, the Government has asked the State Bank of Viet Nam to implement policies to trade debts following market principles and develop a project on restructuring the system of credit institutions in combination with settling bad debts for the 2016-20 period. In addition, the Ministry of Planning and Investment will compile a plan on economic restructuring for the 2016-20 period, which includes bad debt settlement.  Foreigners eager to buy, but Government slow to respond Foreign investors are eager to buy stakes in Government-owned enterprises in Viet Nam, but have come up against a lack of transparency in the firms' information disclosure, as well as red tape, CEOs from financial firms said. Foreign investors have the best opportunity of buying into the State-owned enterprises (SOEs) from which the Government wants to divest as not many local buyers can afford to buy them from the State. Most Vietnamese private companies would be unable to compete against foreign investors in purchasing assets worth VND149 trillion (more than US$6.62 billion), HCM Securities Corporation CEO Johan Nyvene said to a Vietnam News Agency correspondent. Large-cap companies such as Vinamilk are valued at billions of dollars and most domestic buyers seem to lack financial capabilities to purchase stakes in those companies, he said. The Vietnamese Government plans to sell its stake in 12 large SOEs, including Viet Nam Dairy Products JSC (Vinamilk), information technology FPT Corporation (FPT), Bao Minh Insurance Corporation, Tien Phong Plastic JSC, Binh Minh Plastic JSC, and the two largest brewers Sai Gon Beer Alcohol Beverage JSC (Sabeco) and Ha Noi Beer Alcohol Beverage JSC (Habeco). The State Capital Investment Corporation (SCIC), the representative of the State's holdings in the large-cap SOEs, plans to sell an entire 9 per cent stake in Viet Nam Dairy Products Joint Stock Company (Vinamilk) by the end of this year. Sabeco and Habeco have been recently told to get listed on the stock market before they begin selling the State's stakes to private investors. Sabeco is planning a listing by the end of this year while Habeco is expecting to be traded by early next year. Next year, SCIC will offload its shares in nine other SOEs, including Viet Nam National Reinsurance Corporation (Vinare), Ha Giang Mineral Mechanics Joint Stock Company, Viet Nam Infrastructure Investment and Development Joint Stock Company (VIID), and Sa Giang Import Export Corporation. However, the sales of those SOEs has been delayed as private investors are not satisfied with the firms' information disclosure process. Some investors are also wary of the fact that the bidding process is not transparent as the Government prefers selecting a strategic investor, who later owns a large part of the company's capital, to bringing the deal to the public so that all investors can compete equally. On Wednesday, Sabeco CEO Le Hong Xanh told Reuters that "The listing could be in late November, early December, according to the consulting contract and agreement, but how fast it is depends on many other factors, like transparency in management and other conditions like tax." Complicated procedures are also delaying the State's divestment from those SOEs. "There are many interested investors but we haven't started talking specifically with anyone, we are waiting for the Government," Reuters cited Xanh as saying.  VN shares rise with Q3 earning hopes Shares rose yesterday on the two stock exchanges as investors pinned their hopes on prospects of positive earnings of large companies in the third quarter. The VN-Index, a measure of 312 stocks on the HCM Stock Exchange, increased 0.4 per cent to close at 687 points. It rose 0.2 per cent on Tuesday. On the Ha Noi Stock Exchange, the HNX-Index which tracks 378 stocks edged 0.6 per cent up to 85.5 points. This index rose 0.3 per cent in the previous trade. Large-cap stocks continued to lead the market trend. Half of the 30 highest valued stocks climbed, while only one-third declined. The biggest gains were in financial stocks like lenders BIDV (BID), Vietcombank (VCB), Vietinbank (CTG), Sacombank (STB), Saigon Securities Inc (SSI) and insurer Bao Viet Holdings (BVH). According to analysts at Saigon-Hanoi Securities Co, investors tend to bet on the shares of big companies with sound financial indicators, as well as those that promised good earnings in the third quarter like banks, securities and real estate companies. On the other end of spectrum, some blue chips declined and restrained the market rise, including dairy giant Vinamilk (VNM), real estate developer VinGroup (VIC) and steelmaker Hoa Phat Group (HPG), three of the 10 biggest stocks by market value. Especially, HPG inched down 0.8 per cent, extending five-day losses to 6.7 per cent. Heavy sells in this stock seemed to make many investors nervous and at some points negatively affected the overall market sentiment, analysts at Vietnam Investment Securities Co commented. Liquidity was nearly unchanged with a total volume of 156.5 million shares worth a combined VND2.7 trillion (US$121 million) being traded in the two markets by the end of the session. Yesterday, truck dealer Hoang Huy Investment Financial Services JSC (TCH) debuted 330 million shares on the HCM Stock Exchange. The company's shares rose by the maximum daily limit of 20 per cent on its first trading day to VND18,000 per share with nearly 206,000 shares changing hands. Foreign investors returned to net buyers in the two markets yesterday, ending two days of net selling trades. However, their total net buy value was small at just VND6.2 billion.  VinaCapital plans new private equity fund in 2017 VinaCapital, one of the largest investment and asset management firms in Việt Nam, is likely to launch a US$200 million equity fund by early 2017. The fund is aimed at Vietnamese companies, the Singapore-based news and intelligence platform DealStreetAsia reported. "US$200 million is quite doable. It depends on our ability to deploy money in two to three years. If too much money comes in and we cannot deploy it in that period, that is not good," VinaCapital's CEO Andy Ho told DealStreetAsia at the Asia Private Equity – Venture Capital summit held in Singapore late last week. The firm has yet to decide the exact size of the equity fund and when it will be launched, DealStreetAsia reported. The firm's recent investments have seen a rise in value, which is the main reason it is considering launching the new equity fund, Andy said. "Now we invest in the range of $20-70 million because the businesses are getting bigger and our funds are also getting bigger. In order to move and become more effective we have to move to larger opportunities." VinaCapital will look at companies that "can stand alone and operate". The larger the investment opportunities are, the easier it is to divest from those businesses. However, it is quite difficult to raise funds as Việt Nam still is a weak brand, and VinaCapital will have to look for investors who are really interested in the local market, Andy said. VinaCapital has disbursed its investments in Vietnamese private companies through the closed-end investment fund, Vietnam Opportunity Fund (VOF). The latest VOF investment is an investment partnership with the German KfW Group's DEG Fund, to pump $30 million into Vietnamese woodproduct manufacturer An Cuong Wood-Working Materials.  TVSI ranks seventh among top ten Ha Noi brokerage companies Tan Viet Securities (TVSI) ranks seventh among top ten market shares for brokerage companies on the Ha Noi's stock market in the third quarter of this year. During the past quarter, TVSI acquired a market share of 4.31 per cent and entered the top ten, while Bao Viet Securities Co (BVSC) and Maritime Securities Inc (MSI) were removed from the board. Sai Gon Securities Inc (SSI) and VNDirect Securities Co (VND) remained the two brokers with the highest market shares of 10.8 per cent and 8.46 per cent, respectively. TVSI estimates a revenue of VND56.7 billion (US$2.52 million) and a pre-tax profit of VND20.6 billion for the third quarter, increased by 52.6 per cent and 127.7 per cent year on year. Those figures helped TVSI raise its revenue and pre-tax profit for the past three quarters of 2016 to VND133.6 billion and VND31 billion, increases of 30 per cent and 70 per cent respectively from the same period last year. Seminar on technology trend of automobile industry organised Vietnam Automobile Manufacturers' Association (VAMA) held a seminar on trends related to environmentally-friendly technology application in the automobile industry in Ha Noi on October 6. At the seminar, representatives of VAMA and 13 brands, on display at Vietnam Motor Show 2016 in Ha Noi from October 5 to 9, focused on the importance of introducing and applying environmentally-friendly auto technology, emphasising on the efforts of auto manufacturers towards greener living. Participants introduced environmentally-friendly technologies currently in use, such as Eco-boost from Ford Vietnam, Canter E-cell Zero CO2 from FUSO, Toyota Hybrid and PHEV from Mitsubishi. Truong Thanh Hoai, director of the Department of Heavy Industry of the Ministry of Industry and Trade, said the Vietnamese Government was willing to support the production and introduction of environmentally-friendly vehicles in Viet Nam. "This orientation has been mentioned in the master plan for the automobile industry's development and in related documents. Green consumption is the trend of the future and we hope that after this seminar and Vietnam Motor Show 2016, a way to take this trend forward in Viet Nam will become clearer to all of us," Hoai said. In recent years, auto manufacturers have been putting their best effort by undertaking systematic steps to improve and introduce energy-saving and low emission vehicles, which benefit consumers and work towards Viet Nam transportation's sustainable development. The aim is to reduce environmental pollution caused by use of vehicles, which is on the rise in Vietnam, particularly in large cities. The seminar was an ideal opportunity for manufacturers and authorities to openly exchange ideas on trends connected with environmentally-friendly technology application in the automobile industry. It also provided an opportunity to managers, researchers, students and consumers, as well as media agencies and people interested in technologies to comprehensively understand environmentally-friendly auto technologies applied worldwide. Attending the seminar were members of VAMA; representatives of the ministries of industry and trade, transport, and science and technology; journalists from auto magazines; researchers, lecturers and students from the auto departments of technology universities, such as Hanoi Technology University, Hanoi Transportation University and Hanoi Industry University; and representatives of auto users' forums and clubs. Long An solicits investment to meet ambitious development targets The southern province of Long An will solicit investment in residential areas, transport and industrial infrastructure and hi-tech agriculture, according to its Department of Planning and Investment. The province has prioritised supporting industries and hi-tech agriculture, projects using technology, value-added products, energy efficiency and industries that are competitive and environment-friendly, Nguyen Van Tieu, the department director, told a press briefing held to introduce the Long An Investment Promotion Conference. To be held in Long An on October 17, the conference would feature discussions on policies and investment between local authorities, businesses and economists, enabling investors to understand more about the province, he said. Tran Van Can, the province chairman, said soliciting investment is one of the ways for the province to achieve its goals of industrialising by 2020, achieving per capita income of VND80 million (US$3,587), and average GDP growth of 13 per cent a year in accordance with its master plan. Despite difficulties, the province has achieved growth of 11.26 per cent and its per capita income has climbed to VNĐ50.7 million, among the highest in the Cuu Long (Mekong) Delta, he said. It is home to 16 industrial parks and 14 industrial clusters with occupation rates of 61 per cent and 88 per cent, he said. It ranks first in FDI attraction in the delta, with 768 projects with a total investment of over US$5.1 billion, he said. It is also home to 1,259 local projects with a combined investment of VND139.84 trillion. "Long An will create the most favourable conditions for domestic and foreign investors and businesses," Can promised. The province's motto is ‘your difficulties are also our difficulties, your success is also our success,' he said. Tiều said the province would continue to work to improve its investment environment, administrative procedures and transport infrastructure to better meet investors' demand. It would also focus on improving education and training to provide the market with more skilled staff, he said. The conference, titled "Co-operation-Sustainable Development," will be attended by Prime Minister Nguyen Xuan Phuc and executives representing more than 40 Vietnamese and foreign enterprises.  Universal Robots to supply Vietnam with automation solutions Universal Robots (UR), a Danish manufacturer of smaller flexible industrial robot arms, based in Odense, on October 6 announced its plan to expand operation in Vietnam. In Vietnam, UR will cooperate with the Innovative Technology Development Corporation (ITD) and Servo Dynamics to supply effective automation solutions at reasonable prices. Vietnam will be UR’s sixth market in Southeast Asia. This demonstrates UR commitments to meet the increasing demand for automation solutions in the Asia-Pacific region. Ms Shermine Gotfredsen, UR General Manager in Asia-Pacific, said UR is interested in Vietnam as the market has a lot of development opportunities, particularly in small and medium-sized enterprises which account for 97% of businesses in the whole country.  UR has developed a long-term development plan and will focus on its distribution network to meet special demands of different industries in Vietnam, Ms Gotfredsen said. With 200 distributors in more than 50 countries in the world, UR has gained much experience in supplying flexible automation solutions to help businesses improve their productivity and production process. Co-working space rise presents new trend in Vietnam office space market The rising popularity of the “Co-working space” model pushes office space providers to supply more flexible working space for companies. According to a report on the Hanoi real estate market published by commercial property and real estate services adviser CBRE recently, during the third quarter of 2016 the market saw a significant growth of “Co-working space”, serviced offices fully equipped with furniture and management facilities. As a model, “Co-working space” not only offers a sense of community, but also convenience and flexibility. Tenants can book private rooms or choose to share everything, including working space, the pantry, Wi-Fi, printing area, etc.  Not only does the ‘openness’ of the “Co-working space” remove the physical barriers from betweetraditional offices, it also tears down the mental preconception that each company, or  department even, is a separate and closed-off unit. This year, “Co-working Space” is gaining popularity around the world, especially in Hong Kong, Indonesia, Malaysia, and China.   Vietnam and Hanoi in particular do not stand apart from this trend, as there are now various developments offering shared office models: there has been a marked expansion in leasing size, the number of sites, and diversification in location and service types in the third quarter of the year. Notable names include Regus Center, located inside Hanoi Tower in Hoan Kiem district, Elite Business Center in Thanh Xuan district, THT Center in Cau Giay district, CEO Suite in Ba Dinh district, Toong in Tay Ho district, and UP in Hai Ba Trung district. CBRE observed that along with the development of “Co-working space,” companies and corporations have been altering their office models from the traditional cubicles to the activity-based workplace solution.  Offices designed in this model must work to achieve three factors: health, working space personification capability, and comfort. In addition, up-to-date automative technology also holds certain significance. “To achieve the best outcome for this model, it is necessary that office buildings provide effective floor plans with a large and open floor area, sufficient natural lighting, and standardised services,” the report advised. During the third quarter, as the supply continued to increase, office spaces with good quality infrastructure at more affordable prices were getting easier to find. Hanoi’s office supply increased by 5,000 square metres with the newest addition of the VP Bank building in Dong Da District.  The supply is expected to rise even higher by the end of 2016, as Horison Tower will be launched this year in Dong Da district, providing 7,000 sq.m. Additionally, GFA and MD Complex in Tu Liem District shall provide 22,000 sq.m. of gross floor area. To overcome the pressure from future supply, developers are rushing to find occupants before their new projects start operation. As a result, the third quarter saw a dip in rent in both Grade A and B segments. According to the report, the booming IT and software service business in 2016 has significantly shifted the number of companies and employees in this sector.   As a result, Hanoi’s city centre and western side, both offering options with more than 2,000 square metres of floor area and relatively low rent compared to the central business district, have quickly become the hot spot for these organisations. 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