BUSINESS IN BRIEF 9/11 Hanoi forum promotes creativeness for sustainable development   The importance of creativeness for realising sustainable development goals was the focus of the Vietnam Corporate Sustainability Forum (VCSF 2016), which opened in Hanoi on November 8. Addressing the event, Deputy Prime Minister Vu Duc Dam highlighted the significance of the event, saying that it helps foster connectivity among public and private sectors, social organisations and the community. Through the forum, many initiatives to improve business climate in Vietnam and step up Vietnamese business community sustainable development have been submitted to the Government, he said. Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc stressed the need to devise sustainable development orientations, adding that they play a decisive role in the success of the business community. Sustainable development is the only way for all enterprises to follow, he noted. Minister of Natural Resources and Environment Tran Hong Ha appreciated the agenda and initiatives proposed at the event, which called the involvement of the business community in economically using energy, in order to reduce emission and effectively adapt to climate change. In his presentation, the minister presented the country’s plan to implement the Paris Agreement on Climate Change, describing it as strategic orientations to thoroughly address issues concerning climate change in the next decades. It also shows Vietnam’s responsibility in dealing with major challenges that threaten the humankind, he added. The VCSF 2016, the third event of this kind, was organised by the Vietnam Business Council for Sustainable Development under the VCCI in conjunction with the British Council in Vietnam. Binh Dinh licenses three new pharma, cosmetics projects The People's Committee of central Binh Dinh province has granted licences to three new projects with combined investment capital of 570 billion VND (25.5 million USD).  The three projects, to be developed in the province's Nhon Hoi A Industrial Zone, specialise in the pharmaceutical, cosmetics and biology sectors.  In order to attract more investment, the province has announced many measures with a focus on sending delegations to Japan, Singapore, and Thailand to solicit investment. It has also provided support to investors and offered incentives to attract investment and talented people.  Over the past six months, it has attracted 18 projects, including three foreign-invested, with capital totalling 240 million USD. The projects were involved in trade and service, real estate, agriculture, textile and garments, as well as animal feed production. High growth potential for VN steel The country's steel industry has great development potential, according to the Viet Nam Steel Association. Speaking at a seminar titled "Viet Nam's steel industry – rise and fall and development potential" in HCM City on Monday, Dr Nguyen Van Sua, the association's vice chairman, said per capita consumption in Viet Nam is 200kg, below the world average of 216kg. "In an industrialised economy, the per capita consumption ranges from 500kg to 600kg." After more than 50 years of development, the steel industry has become important in Viet Nam, he said. This year production is expected to be 2.6 million tonnes of iron, 7 million tonnes of steel billet and 17 million tonnes of finished steel products, he said. Viet Nam must increase its output since it is investing heavily in infrastructure to drive economic growth and cope with the rapid urbanisation, he said. The output is expected to rise to 10 million tonnes of iron, 18 million tonnes of steel billet and 22 million tonnes of finished steel products by 2020, he said. Currently the steel industry does not operate at full capacity, he said, adding that the country still imports a lot of steel scrap, steel billet and finished steel, with volumes increasing year after year. Dang Tran Hai Dang, deputy director of research at Vietinbank Securities, said last year the country imported 14 million tonnes of finished steel, mostly hot-rolled steel, the sixth highest by any country. He urged the domestic industry to invest in producing hot-rolled steel and hi-tech steel products. Many global producers incurred severe losses due to a price drop in 2014-15, he said. But in the second quarter of this year, a strong recovery coupled with the Ministry of Industry and Trade's safeguard measures against Chinese billet and long steel products have pushed up domestic producers' profits. Overall, the industry achieved a clear recovery in the first nine months of this year, he said. "It is forecast to enjoy 15 per cent growth annually over the next five years, and thus the growth opportunities are huge if companies have a suitable development orientation," he said. Nguyen Huu Kinh Luan of SMC Trading -Investment JSC, speaking about his company's development strategy, said it would build one or two steel plants with modern technologies to ensure it can compete with local and foreign rivals. Nguyen Ngoc Anh, the company's chairman, said the steel industry would continue to develop for another 20-30 years at least because it is hard to find other materials to replace steel. His company would therefore continue to operate mainly in the steel sector, he said. Organised by VietinBank Securities, the HCM Stock Exchange and SMC Trading -Investment JSC, the seminar was held to enable investors to understand more about the industry so that they can make the right investment decisions. Tran Anh Dao, executive vice president of the HCM Stock Exchange, said the raw materials sector, of which the steel industry is a part, increased by 45 per cent in the first nine months of this year, showing how much importance investors attach to it.  New VCCI ranking rewards corporate ethics Firms that do not put profits above communities and promote sustainable development are now recognised by a new ranking announced by the Viet Nam Chamber of Commerce and Industry (VCCI) on November 8. The Top 100 Sustainable Businesses 2016 listing will honour Vietnamese firms for demonstrating corporate ethics mooted recently by Prime Minister Nguyen Xuan Phuc, the VCCI said. VCCI Chairman Vu Tien Loc said sustainable development had become an indispensable path to success for businesses around the world at a time when abundant natural resources and cheap labour were no longer advantages. Firms that focus exclusively on profit and ignore communities' interests were not good businesses, Loc said, adding that recognition by the society that a business was engaged in sustainable development would be an important type of capital that firms needed in the future. Nguyen Quang Vinh, Secretary General of the Viet Nam Business Council for Sustainable Development (VBCSD), told vccinews.com that in order to rank the 100 most sustainable companies in 2016, VBCSD had developed the Corporate Sustainability Index (CSI) based on 151 quantitative criteria. Vinh, who is also Deputy Secretary General of VCCI, said companies could highlight their sustainability via three inter-related pillars: economy, society and environment. This is the first time VCCI is coordinating with relevant ministries and agencies such as the Ministry of Labour, Invalids and Social Affairs, the Ministry of Natural Resources and Environment, and the Viet Nam General Confederation of Labour to set up a benchmarking committee. Some 400 companies, most of which are listed firms, have been assessed, Vinh said, adding that "After nearly a year of preparation and careful selection, we have short-listed the 100 most sustainable companies in Viet Nam". These 100 winners were expected to exert a positive influence on more than 500,000 Vietnamese enterprises, most of whom were small and medium-sized enterprises, he said. Major businesses that received the sustainable business certification yesterday include: Vietcombank, Bao Viet Group, Sai Gon Securities Inc. (SSI), Tan Son NhatAirport Aviation Service JSC, Unilever Viet Nam, Heineken Viet Nam, Deloit Viet Nam, Amway Viet Nam Co Ltd and CP Viet Nam Corporation. "In the coming time, we will coordinate with international organisations such as the UN, the World Economic Forum (WEF) and the World Business Council for Sustainable Development (WBCSD) to nominate these companies for the rating so that they can compete with other brands in the world. "We will use the index to encourage corporate compliance and capacity building, foster sustainable development strategies, and introduce good sustainable development practices to enterprises, especially SMEs," Vinh said. Dao Dinh Thi, Chairman of the Bao Viet Group, said that through the new ranking, customers, investors and employees can identify ethical businesses, increasing their brand visibility and making them more competitive. Earlier yesterday, the Viet Nam Corporate Sustainability Forum 2016 opened in the city, focusing on the importance of creativity in realising sustainable development goals. Addressing the forum, Deputy Prime Minister Vu Duc Dam highlighted the event's significance, saying that it would foster connectivity among public and private sectors, social organisations and the community. Through the forum, many initiatives to improve the business climate in Viet Nam and step up sustainable development of Vietnamese business community had been submitted to the Government, he said. Tran Hong Ha, Minister of Natural Resources and Environment, asked the business community to get involved in economic use of energy so as to reduce emissions and effectively adapt to climate change. The minister presented the country's plan to implement the Paris Agreement on Climate Change, describing it as a strategic orientation to thoroughly address issues concerning climate change in the next decades. It also shows Viet Nam's responsibility in dealing with major challenges that threaten humankind, he said. The third edition of VCSF 2016 was organised by the Viet Nam Business Council for Sustainable Development under the VCCI in collaboration with the British Council in Viet Nam and Unilever. On Monday, Prime Minister Nguyen Xuan Phuc launched a campaign to build corporate culture in Viet Nam. The campaign aims to raise public awareness, shake up trade and production and boost the role of state agencies. At the event, Phuc said building a business culture would improve Viet Nam's image and make it more competitive as it integrates into the global economy. "This is one of the tasks for Viet Nam's Government and its business community. It is part of the effort to turn the country into a start-up nation," the PM said. The Government will pay special attention to business ethics with the core values of transparency, creativity, competency and sustainability, he stressed. The campaign's organising board also announced the PM's decision to observe November 10 as Viet Nam Corporate Culture Day. The purpose of the day will be to promote the building of a favourable business climate in the country, where the law, business ethics, social responsibilities and healthy competition are respected. Peruvian aquatic firms seek opportunities in Vietnam A delegation of six Peruvian aquatic businesses arrived in Ho Chi Minh City on November 7, beginning their tour of Vietnam to seek opportunities in the country. While in HCM City, the Peruvian firms are scheduled to meet with their Vietnamese counterparts to learn about seafood consumption and aquaculture in Vietnam. The meeting will allow Vietnamese aquatic firms to learn about the Peruvian market and seek new cooperation opportunities, according to Sai Gon Giai phong (Liberated Saigon) newspaper. About 75 percent of export-import companies in Peru are small and medium sized, making the market suitable for Vietnamese businesses. Through Peru, Vietnamese products can access other markets like Ecuador, Colombia, Bolivia and western Brazil. Vietnam earned 5.7 billion USD from exports in the first 10 months of this year and shipments are expected to increase significantly in the remaining months of the year because demand in the main import markets usually goes up during the year-end festive season, said Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Producers and Exporters (Vasep). The country’s seafood exports are expected to reach 7 billion USD this year, a year-on-year increase of 5.5 percent, he said. Hanoi set for six-year high economic growth Hanoi estimates its gross domestic product (GDP) growth rate this year will reach 8.03 percent – the highest in six years.  The municipal People’s Committee met on November 7 to review the socio-economic situation in 2016 and set tasks for next year.  While the services sector’s expansion was estimated at 8.1 percent, industry and construction have risen by 8.8 percent, and agriculture growth has hit 2.21 percent.  The local consumer price index is between 3.01 and 3.07 percent in 2016, according to municipal departments.  Chairman of the Hanoi People’s Committee Nguyen Duc Chung said the capital has developed well despite the slow global economic recovery and impacts of natural disasters in Vietnam.  Other officials attributed the economic attainments to new leadership of the authorities.  At the meeting, Chung also asked agencies to consider suspending all karaoke services across the city until December 31 to check karaoke bars’ fire safety, following a blaze at a karaoke bar at 68 Tran Thai Tong Street on November 1 that claimed 13 lives.  More social housing urged Deputy Prime Minister Trinh Dinh Dung has asked ministries and authorities to speed up the building of social housing in industrial and economic zones nationwide. In the Government Office’s document released on Monday, Dung asked the Ministry of Construction to review the master development planning of industrial and economic zones to ensure that it was in line with urban and housing development. The development of industrial and economic zones has not paid adequate attention to developing housing for workers, as well as social facilities. Several industrial and economic zones were poorly built, an have serious shortages of public services, as well as poor environmental standards, which eroded competitiveness in attracting investments. Dung also asked provincial and municipal People’s Committees to allocate land and raise policies to attract investments in developing social housing projects and social facilities to improve living standards of workers in industrial and economic zones and industrial clusters. Further, it was recommended that supervision of the development of waste treatment and fire prevention systems at industrial zones be tightened. Of note, Dung asked the Ministry of Planning and Investment to consider policies for the development of new models for industrial zones, such as ecological zones, supporting zones and industrial service-urban complexes. According to statistics from the Economic Zones Management Department, as of July there were 316 industrial zones, within a total area of 88,600 hectares in Viet Nam, 218 of which were in operation, with an occupancy rate of nearly 70 per cent. Viet Nam had 16 economic zones, within a total area of 15,600 hectares. As of July, there were more than 3 million labourers working in industrial and economic zones nation-wide. Also, firms at industrial and economic zones contributed nearly 51 per cent of the country’s total export revenue.  Central province licenses three new pharma, cosmetics projects      The People's Committee of central Binh Dinh Province late last week granted licences to three new projects with combined investment capital of VND570 billion (US$25.5 million). The three projects, to be developed in the province's Nhon Hoi A Industrial Zone, specialise in the pharmaceutical, cosmetics and biology sectors. In order to attract more investment, the province has announced many measures with a focus on sending delegations to Japan, Singapore, and Thailand to solicit investment. It has also provided support to investors and offered incentives to attract investment and talented people. Over the past six months, it has attracted 18 projects, including three foreign-invested, with capital totalling $240 million. The projects were involved in trade and service, real estate, agriculture, textile and garments, as well as animal feed production.  Ben Tre Province strives for $190m exports in Q4      The Cuu Long (Mekong) Delta Province of Ben Tre has set a goal of earning US$190 million from exports in the fourth quarter of this year, according to the provincial Department of Industry and Trade.  The figure would lift the locality's export turnover in the whole year to an estimated $725 million, surging 11 per cent from the previous year and fulfilling 92 per cent of the target set for the year. Over past nine months, the province's export recorded stable growth, achieving about $535 million, a year-on-year increase of 13 per cent, the department noted. However, the locality witnessed drops in export volume and prices of several key exports such as rice, coconut fiber, and aquatic products due to a shortage of materials for processing and strict import requirements in food safety. That would make it difficult for the province to hit its export turnover target. Ben Tre ships products to 115 countries and territories worldwide, with the Asian market accounting for the largest proportion of its total export turnover at 68 per cent. American and European markets make up 16 per cent and 13 per cent, respectively. 60% of VN residents use Vietnamese goods More than 60 per cent of people in the country use Vietnamese goods, information released at the Proud of Vietnamese Products 2016 programme, held in Ha Noi on Sunday, revealed.  In the two big cities, Ha Noi and HCM City, Vietnamese products account for 90 per cent of the market share in distribution channels. The programme, which was launched by the Ministry of Industry and Trade in cities and provinces nationwide, concluded in the capital on Sunday. It was aimed at promoting locally produced goods and involved various business associations, supermarkets and shopping centres. Speaking at the ceremony, Hoang Quoc Vuong, deputy minister of industry and trade, said the programme had helped Vietnamese businesses promote their brand names and products, thus improving their competitiveness and helping them expand their market. "The programme has contributed to improve people's awareness on the importance of the local market and Vietnamese goods," he said. The movement, "Vietnamese people prioritise Vietnamese products", started in 2006 and has since built people's trust in the quality of Vietnamese goods. The event got a great response, especially in major cities such as Ha Noi, HCM City, Da Nang, Hai Phong and Can Tho. VIB: 5.5% interest rate for online term deposits Vietnam International Bank (VIB) will provide an annual interest rate of 5.5 per cent to enterprises opening online term deposits from July 1 to July 30. The high interest rate will be applied for deposits in dong with terms from one to five months, VIB said in its latest press release. "Digital banking is a trend seen in the global banking system. In Viet Nam, digital and e-banking have been developing significantly with many new products and services being introduced to customers," said Vuong Thi Huyen, VIB's head of Wholesale Banking.  "With the vision of becoming the most innovative and customer-centric bank in Viet Nam, VIB continues to invest in digital (banking), making ongoing efforts to introduce new and innovative products and services to our customers," she said. VIB's online term deposit accounts will allow corporate customers to use its services without having to visit an office or branch of the bank. Customers will only need to access "MyVIB," VIB's popular and user-friendly mobile and Internet banking applications, or they can simply visit VIB's brand new Internet Banking website to register and use the service. The MyVIB mobile banking app was honoured with "Viet Nam's Outstanding Innovative Banking Product/Service Award" in 2015 from the International Data Group, in recognition of VIB's innovative approach through the introduction of the mobile banking app, new website and new VIB Apple Watch app.  VN bank profits surge on services, not lending      Some commercial banks have reported high profits in the first nine months of the year thanks to a restructuring effort which focuses on services instead of lending as previously done. According to financial reports released recently, the Commercial Joint Stock Bank for Foreign Trade of Viet Nam (Vietcombank) posted profit of nearly VND4.5 trillion (US$200.36 million) in the first nine months, up 13.6 per cent year-on-year. Of the total, services made up $521 billion, up more than 18 per cent. Securities business also represented VND203 billion. Vietcombank's profit was nearly equal to that of the Commercial Joint Stock Bank for Industry and Trade of Viet Nam (Vietinbank) and the Commercial Joint Stock Bank for Investment and Development of Viet Nam (BIDV), although its total outstanding loans in the period were less than VND440 trillion, equal to only two-thirds of Vietinbank and BIDV's. Last year, services also accounted for 30 per cent of Vietcombank's profit. The same trend was seen in Techcombank, which reported profit of VND279 billion from services in Q3 and VND911 billion in nine months. With the contribution from services, Techcombank posted net profit of more than VND2 trillion in Q3 and more than VND6.2 trillion in nine months, up 29 per cent and 21 per cent year-on-year, respectively. The financial report from the Asia Commercial Bank (ACB) also showed that the bank posted profit of VND236 billion from services in Q3, helping the bank make total profit of VND415 billion in the period, up 15.5 per cent year-on-year. ACB general director Do Minh Toan said his bank is boosting services with a focus on financial services and individual customers. According to independent expert Dinh The Hien, while lending has shown signs of risk due to a rise in non-performing loans, increasing revenue from boosting services would help banks achieve healthy and sustained development in the future.  PVcomBank cuts deposit interest rates      PVcomBank last week announced it was lowering deposit interest rates in an effort to be able to cut lending rates early to support production and business. Accordingly, the bank's rate for three to five month deposits has been cut from 5.5 per cent to 5.3 per cent per year. The rate for 13 month deposits has also been reduced from 7.5 per cent to 7.2 per cent per year. The bank's highest rate of 7.6 per cent per year, applicable for 18, 24 and 36 month deposits, has also been cut to 7.5 per cent.  Besides aiming to restructure capital sources, PVcomBank expected that the cut would help it cut lending rates soon to support production and business according to guidance from the Government and the State Bank of Viet Nam.  Phu My Hung offers zero interest mortgage at new development      Phu My Hung Development Corporation has said that people taking out a mortgage to buy apartments at its new Saigon South Residences will not have to pay interest for up to 28 months. The developer said it has tied up with VietinBank to offer this deal. Vietnamese buyers can borrow 75 per cent of the apartment value for up to 20 years. Initially, the 0 per cent loan will be worth 30 per cent of the condo’s price. Saigon South Residences is Phu My Hung’s first project outside of its Phu My Hung City Centre in District 7. The company said the aim of moving out was to offer its normal quality to more customers at more affordable prices. The second phase of sales for the project will be this month.  VN should sell rice to Africa: experts Việt Nam and the International Rice Research Institute (IRRI) hope to boost cooperation in developing genetic resources and choosing technology to improve rice quality, experts have said. The IRRI genebanks, wild rice introgression population, structured genetic population and breeding lines represent a critical resource for generating the critical traits and climate-smart varieties that Việt Nam needs to fulfill its vision, said Matthew Morell, IRRI director general. He was speaking at a meeting with officials of the Ministry of Agriculture and Rural Development on rice production development held in Hà Nội on Friday. “IRRI can assist partners in Viet Nam to minimise yield gap and decrease over-use of pesticide, fertiliser, water, labour and seeds,” Morell said, adding that IRRI studies could help the country reduce loss during rice harvesting, drying and processing and optimise the supply and quality of the product. IRRI would work with farmers to facilitate their market access and higher returns through farmers’ cooperatives, branding strategies and providing market and trade information, Morell said. Lê Đăng Doanh, deputy minister of Agriculture and Rural Development, thanked the IRRI for its assistance to Việt Nam since 1963, saying it had provided thousand of varieties to the country every year.  In addition, thousands of researchers and scientists from Việt Nam have been trained or received support by the institute. At the meeting, experts from domestic research institutes expressed hope of continued cooperation with IRRI in using genetic resources, personnel training and studies on post-harvest and intensive processing technologies as well as studies on rice markets, including China.  According to Lê Huy Hàm, Director of the Việt Nam Agriculture Genetic Institute, as one of five countries likely to be most affected by climate change, Việt Nam has a great demand for drought and salinity-resistant rice varieties.  Samarendu Mohanty, an economist from IRRI, said Việt Nam was facing stiff competition from Thailand and Cambodia in the world rice market. Thus, he said, the country should focus on establishing a base in the African market and increase market share in the American and European markets to deal with the competition. Nguyễn Xuân Định, deputy head of Crop Production Department under the MARD, said the ministry had set forth a plan to restructure rice production by 2020, with a vision to 2030, in order to improve production effectiveness and raise the stake of Vietnamese rice on the global market. Specifically, the ministry would focus on setting up rice research programmes, renewing policies and enhancing capacity for rice trading enterprises and associations.  Low cassava price drops further Cassava farmers in Gia Lai Province are in dire straits, unable to sell their produce even after prices have plunged below production costs. They have also suffered a steep decline in productivity. Cassava prices in the Tay Nguyen (Central Highlands) province have dropped to VND30,000-35,000 (US$1.3-1.5) per 100kg, much less than last year, a Nong Thon Ngay Nay (Countryside Today) report says. Last year, cassava prices reached VND1,800 per kg or VND180,000 per 100kg, prompting farmers in the region to cultivate them. "After months of planting and care, we are getting just VND35,000-40,000 for 100kg, what you pay for a bowl of pho (beef rice noodles)," lamented Le Van Thanh, a cassava grower in Chu Drang Commune. Thanh said cassava had been a key crop helping farmers in Krong Pa District escape poverty over several years now, but prolonged drought has affected its yield and quality. Other crops were similarly affected, he noted. Cassava productivity this crop dropped by half over previous years, Thanh said. "Last crop, I harvested about 30 tonnes of cassava per hectare, but this year, I've got just 17-18 tonnes. The drop in productivity and prices is a heavy loss and we don't know what to do for the next crop," he added. The report says farmers had to invest over VND15-20 million  per hectare for planting cassava, but were able to recover just VND5-6 milllion after harvest. Farmers are harvesting the crop now, but the low prices have prevented many traders from buying it, push farmers even deeper into hopelessness. Dinh Van Duyen, head of the Agriculture and Rural Development bureau in Krong Pa, said the area for cassava cultivation reached 15,000ha for the 2015-16 crop. But the area planned for cultivating this crop was just around 8,500ha. "Every year, farmers have rushed to grow this plant, despite warnings," Duyen said. The low prices at present badly affected farmers' incomes and lives, he added. The local authorities are trying to guide and advise farmers cultivate others plants in order to improve their land and earn more money. Nguyen Van Vu, a local farmer planted 1ha of grass for breeding cows instead of cassava. He said that he earned more from planting grass. A representative of the FOCOCEV Joint Stock Company, which purchases cassava from local farmers, said the decrease in prices was due to fluctuations in cassava starch prices in domestic and world markets. Last year, the average selling price was US$350-360  per tonne of cassava starch, but now it is just $270-280 per tonne, the company said.  Prices of Viet Nam's black pepper drop The Ministry of Agriculture and Rural Development (MARD) announced recent drops in pepper prices, both domestic and exported, in October. The cause for the fall in prices is said to be a sharp increase in quantity. According to the MARD, the October domestic buying price for black peppers continued to decline, compared to September.  On average, buying prices for dried raw black pepper in the main producing regions of Gia Lai, Ba Ria- Vung Tau, Dak Lak and Dong Nai were VND142,900 (US$6.39), VND146,800, VND143,900 and VND143,900 per kg respectively, all having decreased by VND4,000 per kg compared to last month's average price. Hoang Phuoc Binh, General Secretary of the Chu Se Pepper Association in Gia Lai, said that the current pepper price in the province had dropped to a mere VND125,000 per kg, as compared to the peak prices in the middle of the year of VND170,000 to VND180,000. At this level of the decline in the buying price, farmers can still turn a profit, though less than before. The export price for pepper had been on the decline this year, in addition to the drop in domestic prices. According to the Viet Nam Pepper Association's (VPA), in the first nine months of 2016 the average export price was $7,726 per tonne for black pepper and $11,329 per tonne for white pepper. Compared to the same period last year, these export prices dropped by $1,232 and $1,533 per tonne, respectively. The reason for such a decline is considered to have been the fall in world demand, while supply rose steeply. Do Ha Nam, VPA's president, said that the rise in the pepper supply was due to the fast expansion of growing areas in recent years, from 50,000 hectare to 101,000 hectare, being more than twice the planned number from 2020 to 2030, as decided by the MARD. "With the production cost similar to coffee, and a price three times higher, farmers would undoubtedly mass produce pepper, leading to the current unplanned situation. If this continues, there is bound to be an excess surplus crisis in the pepper industry, as have been with other plants," said Nam. With its constant development in recent years, the Vietnamese pepper industry is facing many challenged regarding quality and quantity controls. If these problems are not resolved, the country's export status could be overtaken by other producers, and the benefits from signed trade agreements would not be utilised. Nam also warned that should farmers and businesses continue to produce at the current rate and on the current scale, in lieu of the excessive quantity, the price of peppers would drop even further. He suggested that producers switch to a different crops that offer greater economic value. An excess in imports could also be the reason of the recent fall in pepper price. According to the VPA, several markets, such as Australia, Germany, Singapore and others, have gradually reduced the quantity imported, while potential European markets have come to a halt. This could be due to both the lack of dealers and the lack of quality in Vietnamese exports. VPA suggested that the key solution to the quality problem would be to improve the raw ingredients used on the field. If the quality of pepper exports is not improved in the near future, the amount exported will surely decline, as more countries are tightening their supervision on imported peppers, such as in the US market where the Food and Drug Administration is about to implement several new regulations regarding imported agricultural products, including Vietnamese peppers. Viet Nam is currently the largest global supplier for peppers, with more than 50 per cent of total world products. With such an overwhelming supply, the inelastic demand, once halted, would cause Vietnamese farmers and businesses to lose money.  Innovation day discusses building ecosystem Innovation at this moment in Australia's history is driving 60 per cent of the country's national productivity, and is the fundamental factor behind national productivity, which is the driver of jobs, growth, and opportunities, said Greg Hunt, Australia's Minister for Industry, Innovation and Science. Hunt told those attending the Huawei Innovation Day Asia-Pacific held in Sydney last week that exploration and innovation were vital for the progress of society. "ICT is the backbone, along with science, of the whole innovation space. For us as a government, we are involved in innovation and driving this forward as a means of helping the economy, helping individuals, and improving quality of life. Under the Innovation and Science Agenda, we bring young people into innovation and science through a programme worth more than US$100 million," he added. Li Jinge, President of Huawei Asia Pacific, said in his speech that future explorations in ICT would require inputs from all parties, because there are many unknowns in creating an intelligent society. Li said that Huawei's growth and success were a result of its spirit of dedication and focus on customers. Ecosystem innovation is the only way for companies to create an intelligent world. Huawei aims to nourish the 'soil and energy' of the ICT ecosystem to enable the intelligent world of the future. It will push the entire industry forward, and support ongoing social progress through strong, strategic alliances. Huawei has launched six OpenLabs, which are part of Huawei's strategy for creating an ICT ecosystem for enterprise business, located in Munich, Mexico City, Dubai, Singapore, Moscow and China, and has worked extensively with over 400 solution partners worldwide. In addition, Huawei plans to establish an OpenLab in Bangkok, the second of such OpenLabs in the Asia Pacific region, in early 2017. It has also developed the Huawei Innovation Research Programme (HIRP), designed to drive partnerships with leading universities worldwide. To date, this programme has supported over 1,200 innovation research projects at over 300 universities in more than 20 countries around the world. The event, themed Brilliance of Exploration, attracted over 150 experts and researchers from many different industries, institutions, government agencies and representatives to discuss how to face up to the unknowns of the intelligent world and create an open ecosystem. Huawei is a leading global information and communications technology (ICT) solutions provider. Its innovative ICT solutions, products and services are used in more than 170 countries and regions, serving over one-third of the world's population.  Vietnamese, RoK businesses seek to boost agri-product trading Vietnam is a potential market for firms specialised on processed agricultural products from the Republic of Korean (RoK).  This statement was made by Im Chang Ho, Chief of Hamyang County in the RoK’s southeast Gyeongnam province at the Vietnam-RoK trade exchange held on November 8 in Ho Chi Minh City.  RoK agricultural goods, which are produced by hi-technology, are internationally recognised for their safety and high quality, said Im Chang Ho.  He also said Hamyang County is famous for mountain ginseng, fruit juice and nature-based beauty care products which have been favoured by many Vietnamese customers, especially those in Ho Chi Minh City, adding the exchange is a good opportunity for RoK firms to seek partners and boost exports.  Speaking highly of the quality of RoK processed agri-products, Tran Ngoc Liem, Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI)-HCM City Branch, said Vietnamese enterprises should learn experience in organising trade fairs and products launching events of their counterparts.  He also added that by welcoming RoK products, Vietnamese agri-businesses approach hi-technologies to improve planting techniques, thus enhancing the quality and added value of their farm products.  According to VCCI, agricultural trade value between the two countries has increased since the Vietnam-RoK free trade agreement took effect in late 2015.  In the past 10 months of 2016, import value of RoK agricultural products to Vietnam rose 10 percent while export value of Vietnamese farm goods to the RoK surged over 30 percent from the same period last year. Tra Vinh helps SMEs enhance peanut value A workshop was held in the Mekong Delta province of Tra Vinh on November 8 to help local small- and medium-sized enterprises (SMEs) to promote the value chain of peanut.  The event was jointly organised by the management board of the Tra Vinh SME Development Project and the Centre for Service and Technology Transfer under Can Tho University.  Tra Vinh has around 4,700 hectares of peanut, mostly in the districts of Cau Ngang and Duyen Hai. Peanut, together with coconut, is a key product of the province.  Participants agreed on measures to enhance the value chain of peanut by improving product quality, creating more jobs, enhancing the competitiveness of peanut processing companies to expand their markets, and reducing production costs.  They suggested Tra Vinh focus on restructuring peanut harvests by expanding peanut growing areas in the autumn – winter and summer – autumn crops, enhance production capability for farmers, develop local peanut brand names, and improve the quality of peanut varieties.  Deputy Director of the SME Development Project Tran Thi Oanh highlighted the potential of peanut and coconut, such as stable supply sources and markets, and competitive edge.  Basing on studies by experts from Can Tho University, the project will provide assistance for local SMEs to enhance the value chain of peanut products, Oanh said.  The province’s SME Development Project was launched on January 30, 2015 at a total cost of 12.1 million CAD (9.67 million USD), including 11 million CAD funded by the Canadian Agency for Foreign Affairs, Trade and Development. Vietnam, RoK funds join hands for SME development Vietnam’s Small- and Medium-sized Enterprise Development Fund (SMEDF) will join hands with the Korea Small and Medium Business Corporation (SBC) to promote the development of SMEs and help them to seek partners in both countries.  Under the terms of a Memorandum of Understanding signed in Hanoi on November 8, SMEDF and SBC will also exchange information about business supporting policies and assist each other in conducting surveys in their respective nations.  SMEDF Director Hoang Thi Hong said the Republic of Korea (RoK) is now the biggest foreign investor in Vietnam, with a large sum of investment poured into the electronics, energy and manufacturing sectors.  The flow of Korean investment into Vietnam has given a boost to the development of local SMEs and enabled them to join the global supply chain and get access to advanced technologies, she added.  Meanwhile, SBC Vice President for Global Marketing Yong Seung Lee said SBC has accompanied Korean SMEs by assisting them in export marketing and setting up a centre for SME development in Hanoi in 2014.  Established in 1979, SBC is a non-profit, government-funded organization. It is tasked with implementing government policies and programmes for the sound growth and development of Korean SMEs. EU - potential market for Vietnamese farm produce Vietnam’s exports to the EU grew significantly in recent years, with Vietnam’s trade surplus in the market reaching nearly 20 billion EUR in 2015, mostly from exports of agricultural products and foodstuff.  The Vietnam-EU free trade agreement (EVFTA), scheduled to take effect from 2018, is expected to bring about opportunities for enterprises of both sides in seeking new markets for high quality farm produce.  According to Phil Hogan, EU Commissioner for Agriculture and Rural Development, Vietnam is a promising market for EU businesses in agriculture and food.  During his recent visit to Vietnam, Hogan and 42 EU firms met with Vietnamese businesses to forge stronger EU-Vietnam partnerships and realise the EVFTA.  The EU has been the world’s top exporter of farm produce and foodstuff, with 2015 revenue of 129 billion EUR, including 8.4 billion EUR in the Vietnamese market, noted Hogan.  The EU market has highest food safety requirements in the world, he said, adding that EU products with advantages in Vietnam include milk, pork, poultry products, wine and fresh fruit.  Vietnamese products enjoying advantages in the EU are cashew, peppercorn and aquaculture products, he said. Hogan also expressed his belief that two-way trade will continue to thrive once tariff barriers are removed in 2018.  According to Hogan, the EU will not lower standards for imported farm produce and foodstuff.  The EU will send back all products failing to meet its requirements. Therefore, Vietnamese firms who wish to enter the market should enhance the quality of their products, advised Hogan, adding that many Vietnamese enterprises have succeeded in exporting their products to the European market.  Meanwhile, Miriam Garcia Ferrer, First Counsellor and head of the Economic and Trade Section of the EU Delegation to Vietnam, asserted that Vietnamese exporters should study the EU market more.  European consumers are keen on Vietnamese specialties, she said, adding that the impressive growth of Vietnam’s exports in the EU in recent years, mostly contributed by agricultural products and foodstuff, reflected the high potential.  The potential will be optimised through the implementation of the bilateral FTA as well as tax removal beginning from 2018. We believe that the FTA will benefit both sides, said Ferrer.  Being aware of challenges that Vietnamese firms face in meeting its technical and transparency requirements, the EU side has worked to assist them, she said.  She held that many Vietnamese firms are worried when accessing the EU market due to high requirements in quality, origin, package and label. However, it’s time to change their mindset, she said, affirming that once the products are accepted in the EU, they will be accepted elsewhere.  The requirements may cause difficulties for Vietnamese products in the short term, but they also allow Vietnam to affirm the prestige and competitiveness of its products, she stated.  She also suggested Vietnamese firms better understand the preferences they will enjoy in the EU market.  In 2015, Vietnam-EU trade reached 38.4 billion EUR, with Vietnam ’s export reaching 29.9 billion EUR.  In the year, Vietnam ranked 21 st among the EU’s trade partners, while the EU was the second largest partner of Vietnam after China. Japanese enterprises study investment environment in Ha Nam A delegation of the Kansai Association of Corporate Executives led by Akihiro Kuroda, Chairman of the Kokuyo Corporation, visited the northern Ha Nam province on November 8 to learn about investment environment in the province. Nguyen Xuan Dong, Chairman of the provincial People’s Committee, introduced the delegation to the location, potential and advantages of the province and stressed that the Dong Van III support industry park is reserved for Japanese enterprises. Dong said the province gives top priority to Japanese enterprises, especially small and medium-sized enterprises. He said the province has prepared infrastructure, land fund, policy and human resources in line with its 10 commitments to foreign investors. A hot line and a support centre for Japanese enterprises have been launched to address any emerging problem facing Japanese enterprises. On his part, Akihiro Kuroda said Vietnam is an attractive investment destination for Japanese enterprises given its stable political situation and strong and balanced economic development. Appreciating Ha Nam province’s investment policies and 10 commitments to foreign investors, Kuroda pledged to introduce the province to Japanese investors in general and investors in Kansai in particular. According to him, the Kansai Association of Corporate Executives has a history of 70 years with around 800 members. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR