BUSINESS IN BRIEF 7/12 HCMC more cautious about choosing FDI projects   HCMC has turned more careful in choosing foreign direct investment (FDI) projects so as to avoid those requiring much land and using outdated technologies which are detrimental to the environment, a city official told local media last week. The city authorities even make more careful choices when it comes to projects registered in industrial parks (IP) and high-tech zones, said Su Ngoc Anh, director of the municipal Department of Planning and Investment. “The city has recently faced a problem with a big FDI project whose investor requires nearly 200 hectares of land, which is a very large area,” he said. Regarding the solution for attracting FDI projects in the future, Anh said IPs are preparing land lots to serve Japanese and South Korean investors who use advanced technologies but do not require large land lots. Such IPs are building multi-story facilities to cater to these investors. The city is now home to 6,500 operational FDI projects with combined registered capital of nearly US$41 billion, many of which will expire in the next five to ten years. The city will screen all such projects, and allow them to expand their scales and extend their operational durations. District-level authorities will also make lists of projects that they need to call for foreign investments. Anh noted that foreign investors tend to change their business policies when investing in HCMC by switching from pouring investments in wholly-owned projects to establishing joint ventures, contributing capital or acquiring stakes in operational projects as the move allows them to save time and costs for clearing land and building workshops. Total investment in the city in 2016 is estimated at VND310 trillion (US$13.68 billion), with 17% of it from foreign investors, 8% from the city’s budget, 11% from State-owned firms and the rest from local people, according to Anh’s department. The data reflects the role of FDI in the city’s socio-economic development when its share in the total investment in the city’s economy has increased from 15% in 2010 to the current level. This year, the city expects to attract 713 FDI projects worth a combined US$1.3 billion and sees 174 FDI projects raising their capital by US$465 million. The city also has allowed 1,900 foreign investors to spend US$1.9 billion contributing capital and acquiring stakes in enterprises here. In all, the city expects to lure an estimated US$3.7 billion of FDI capital this year. Vietnam vulnerable to U.S. restrictive trade stance A more restrictive trade stance by a Trump administration is likely to hurt exports and investment in a country like Vietnam, HSBC said in a report released on December 1. Britain’s vote to leave the European Union triggered economic and political changes. And now Donald J. Trump’s stunning win in the U.S. election is raising risks of trade protectionism. Although it is too early to know about the specific policies Trump will pursue, for Asia, if he does what he promised during the presidential campaign, there would be cause to worry. A more restrictive trade stance by the U.S. is likely to hurt exports and investment in a country like Vietnam, where the U.S. accounts for about a fifth of its exports. The U.S. and China are Vietnam’s largest trading partners. Last year, America accounted for 21% of Vietnam’s exports and China 10%. Therefore, if America begins to throttle back imports, Vietnam’s exports would be hurt. China could also feel the brunt of an American restrictive trade stance. If that happens, Chinese demand for Vietnamese imports might decrease as well, especially for components used for re-exports from China to America. The indirect effects of more restrictive U.S. trade policy could thus lead Vietnam’s exports to slow down. The report said the current state of affairs underscores the need for reform. “We think that Vietnam rightly remains committed to its structural reform agenda. The National Assembly adopted three reform targets for 2016-2020, relating to public investment, State-owned enterprises and financial institutions. Financial institutions will be strengthened by speeding up bad debt divestment and having at least 12 to 15 commercial banks in compliance with Basel II standards,” the HSBC Global Research team said. “We believe that if pursued properly, the gains from these reforms will have far reaching consequences in strengthening the fundamentals of the economy. In turn, the economy should find itself less vulnerable to external shocks.” According to the General Department of Customs, America is a key market for Vietnam’s major export items like apparel, footwear, seafood and wood. In January-October, Vietnam earned some US$19.68 billion from outbound sales of textile-garment products, up 4.1% from a year earlier, with exports to America making up over 48% of the total.     America is Vietnam’s biggest importer of seafood and wood with respective export revenues of US$1.2 billion and US$2.52 billion in the ten-month period, accounting for 21% and 50% of Vietnam’s total. HCM City chairman stresses incentives for business development With an aim for 50,000 startups in 2017, the HCMC government will seek to further improve the business environment, and prevent policy discrepancy from hindering the development of enterprises, said HCMC Chairman Nguyen Thanh Phong. Speaking at a meeting on January-November socio-economic performance last Friday, Phong stressed that in order to achieve the above objectives, not only the municipal government but the district authorities must also act together to create favorable conditions for corporate sector development. The city’s leader said the municipal government this December would complete a scheme for giving more power to the leaders of departments and districts in a bid to enhance their autonomy and responsibility. Talking to the Daily, Su Ngoc Anh, director of the HCMC Department of Planning and Investment, said there were now nearly 300,000 enterprises in the city. To have 500,000 firms by 2020, the city must secure at least 50,000 startups a year in the next four years. He said support for business development should be synchronized between relevant departments and district authorities. It is because the majority of activities related to tax, environment, insurance, food safety and hygiene and construction permit are managed by these agencies. Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s HCMC Branch, said the goal for 50,000 newly-established enterprises per year was achievable since the number of individual business households was now large. Also, the banking industry is looking forward to providing enterprises, particularly small and medium-sized ones and startups, with financial assistance to finance their production, business and expansion plans. “The credit growth target of the HCMC banking sector is 18-20%, which also represents greater monetary easing than in previous years with an aim to inject capital into the economy, including newly-established businesses,” said Minh. He added that as of this November, the city’s credit growth had reached 16.01% compared with the end of 2015, which was forecast to rise to 18% by the year’s end. It is expected that some 36,000 domestically-invested enterprises will have been set up in the city by the end of the year, with total pledged capital of VND292.6 trillion, of which one-member limited liability companies take up the highest proportion, nearly 57%. Brokerages: Petroleum stocks’ gains short-lived A number of securities companies said the rise of petroleum stocks, backed by the Organization of the Petroleum Exporting Countries’ (OPEC) decision to slash oil output, would be short-lived. Bao Viet Securities Company said in a report that petroleum stocks would rise in the short term as oil prices depend on real supply and demand. The brokerage is skeptical whether OPEC members strictly fulfill their commitments on oil production cuts. “It takes time to evaluate petroleum stocks’ prospects,” the firm said. Le Anh Minh, head of analysis at VPBank Securities Company, told Dau tu Chung khoan newspaper that petroleum stocks would be vulnerable until the year-end and expected negative earnings results of oil and gas enterprises until mid-2017. Last week saw the VN-Index falling 1.6% from the previous week at 665.14 points and the HNX-Index adding 0.41% at 81.17 points. The average matched volume dropped slightly to 107.16 million shares per session on the HCMC bourse, and was almost unchanged at 33 million shares per session on the Hanoi exchange. Strong foreign selling sent stocks down at the first two sessions last week with the main index losing a combined 17 points. Large caps VNM, MSN, BVH and VIC faced sharp declines. Low prices encouraged bottom fishers to acquire stocks in the two subsequent sessions, thus supporting the VN-Index to rise to the 665-point level. However, foreign investors picked certain stocks such as VNM, HPG and HSG, and then returned to the selling side on the HCMC market later on. Despite gains of energy names, backed by oil price spikes on world markets after OPEC agreed to slash crude output for the first time in eight years to ease a global glut, the broader market stayed in the red. Therefore, the VN-Index retreated last Friday with a 0.2% drop as investors took profit from the recent stellar performance of consumer and petroleum stocks. GAS and PVD saw a slight cut back after closing at their ceilings last Thursday. Consumer large caps VNM and MSN were down for a second session as investors continued to take profit. Exchanged traded fund FTSE announced the results of its quarterly index review. CII will be added to the basket while STB, HNG, PGD and HHS will be removed. Contrary to speculation by retail investors, ROS will not be added to the basket this quarter, according to Viet Capital Securities Company. Meanwhile, foreign investors net sold VND612 billion worth of shares on the HCMC bourse last week. They offloaded VIC with VND151.7 billion, MSN with VND93.2 billion, DPM with VND56.3 billion and SSI with VND52.4 billion. They spent VND47.6 billion on HPG, VND42.9 billion on VCB and VND31 billion on HSG. Foreigners’ net sales surpassed VND66 billion on the Hanoi market. They sold VND62.4 billion of PVS, VND10 billion of VCG and VND7 billion of NTP, while they picked BVS and IVS with VND2.4 billion and VND1.8 billion, respectively. SMEs urged to invest more in technological innovation All enterprises, including small- and medium-sized enterprises (SMEs) are responsible for developing and applying technology, and the business circle must be the centre of innovation, heard an international seminar in Ho Chi Minh City on December 1. There are about 535,000 SMEs in Vietnam at present, accounting for 97 percent of the total business number. They contribute some 45 percent of the national GDP, 31 percent of total State budget revenue, and 35 percent of the business circle’s total investment capital. Pham Ngoc Minh, an official at the Ministry of Science and Technology, said the rapid development of science and technology is shortening the “life cycle” of technology. Therefore, it is an urgent need for enterprises to innovate technology in order to meet production and market demand and ensure their competitiveness. HCM City has continually taken the lead in Vietnam in terms of export value and GDP. It is also known as a sci-tech hub in the country. However, 51 percent of the 700 surveyed companies based in 12 industrial parks and export processing zones in HCM City still use outdated technologies, according to the municipal Department of Science and Technology. Tran Quang Thang from the Association of SMEs in the South said technological and technical obsolescence has resulted products of low value and inconsistent quality products while production costs are 10-30 percent higher than that of imports. Total social investment in science and technology remains low, and up to two-thirds of that sum is from the State budget. In developed countries, the non-State sector’s investment in science and technology is usually higher than the State budget’s. Vietnamese companies’ demand for sci-tech innovation is also not strong enough, Thang said, adding that it is necessary to encourage private firms to establish or cooperate with the State to set up venture capital funds for technology research and development. In the Republic of Korea (RoK), big businesses and groups are ready to invest in science-technology, and they make up 70 percent of the total funding for science-technology each year. Instead of supporting big companies, the RoK is now prioritising assistance for SMEs in the application of new technologies. Park Jun Ho, Director of the HCM City office of the Korea Institute of Industrial Technology (Kitech), said Kitech has many projects supporting businesses, especially SMEs, to develop technology. Many research institutes of Vietnam are working with Kitech, and through this cooperation, Kitech can help local enterprises innovate and transfer technology while improving their competitiveness, he noted. Vietnam-Singapore IPs attract US$9 billion investment    Seven Vietnam-Singapore Industrial Parks (VSIPs) nationwide have drawn US$9 billion investment and generated 176,000 jobs after two-decade development. vietnam-singapore ips attract us$9 billion investment hinh 0 A VSIP Group representative said on December 5 that 660 businesses from 30 countries in the world have invested US$9 billion in seven VSIPs in Binh Duong, Bac Ninh, Hai Phong, Nghe An, Hai Duong and Quang Ngai. Edmund Chong, Deputy General Director of VSIP Quang Ngai said while luring investment into green technologies, VSIP Group focuses on building industrial-urban-service complexes with green spaces to meet workers’ entertainment and shopping demand. VSIP Quang Ngai has invested more than VND1,230 billion on building  a 254ha complex including 21,000sq.m park for outdoor activities of workers and their children.  A VSIP Plaza next to the park offers food and drink, indoor entertainment, gym, tennis and healthcare services. Since its construction started in September 2013, VSIP Quang Ngai has attracted 14 projects with a combined investment of US$200 million. It is expected that after they are all operational in early 2017, they will create 17,000 jobs for the central region. US may not impose high AD duty on Vietnamese steel products The US International Trade Commission (USITC) has issued its final decision on investigations into circular welded carbon quality steel pipes (CWP) imported from Oman, UAE, Pakistan and Vietnam. USITC identified that CWPs imported from Oman, Pakistan and the UAE caused significant damage to the domestic production industry while products from Vietnam met conditions and did not cause substantial injury for the US steel industry. Based on USITC conclusion, the US Department of Commerce won’t impose anti-dumping duties on Vietnamese products while levying anti-dumping duties on CWPs from Oman, UAE and Pakistan. Results of investigations will be published on December 27 on ITC website. Rubber exports go up in volume and value Rubber exports are estimated at 117,000 tons in November with a value of US$165 million, bringing the total export volume in 11 months of this year to 1.1 million tons to fetch US$1.43 billion (up 12.3% in volume and 4.6% in value), according to Vietnam Customs. China and India were two biggest consumers of Vietnamese rubber in the first ten months, accounting for 66.1% of market shares with a value of US$732.1 million and US$104.1 million respectively. Meanwhile, rubber imports in November were 44,000 tons worth US$74 million, bringing the total import volume in 11 months to 387,000 tons with a total value of US$604 million, up 10.9% in volume and 2.5% in value. Vietnam imported rubber mainly from the Republic of Korea, Japan, Cambodia, and Taiwan. The price of rubber latex began going down sharply in 2014. However, since early this crop, the price has been increasing steadily. Natural rubber latex now is priced at VND6,500-12,000 per kilo (up VND1-2.5 million per ton compared to early September. Quang Ninh – a magnet to real estate firms With great strengths in many fields, the northern coastal province of Quang Ninh has become an attractive investment desitnation for domestic and international real estate firms. Over the last two years, Quang Ninh attracted about 100 real estate projects with total investment of 100 trillion VND (4.4 billion USD). In 2015, local authorities granted investment licenses and approved additional capital for 97 private investment projects worth 53 trillion VND (2.33 billion USD). During the year, it welcomed major projects worth trillions of dong from both domestic and foreign businesses such as the Vincom Centre Ha Long and Vinpearl Ha Long invested by Vingroup, Ha Long Ocean Park invested by Sun Group, and Ha Long Star Tourism Urban and Entertainment Complex Casino invested by real estate developer Nakheel from the United Arab Emirates. According to the provincial Investment Promotion Agency (IPA), Quang Ninh has so far lured about 5.97 billion USD in foreign direct investment (FDI). The FDI disbursement in the last nine months reached over 155 million USD. Local authorities granted investment licenses to ten new FDI projects  worth 520.8 million USD in the first ten months of this year, and accepted additional capital for seven others, lifting total FDI in the period to 523.6 million USD Meanwhile, 24 new domestic projects with total investment of 15.9 trillion VND (nearly 700 million USD) were licensed in the period, including big projects like the FLC Ha Long resort worth 3.4 trillion VND (149.6 million USD) and a cow breeding project worth over 2.2 trillion VND (96.8 million USD). IPA Vice Director Truong Manh Hung attributed the increasing investment inflows to consultation provided by international organisations to build the province’s planning and key transport projects. Quang Ninh boasts great potential for industry, tourism and service-based economic development, with 2000 islands stretching along 250km of coast, he added. Its Ha Long Bay was twice recognised as a world natural heritage by UNESCO. Local authorities have paid heed to building investment support and incentive policies, promoting administrative reform and investment promotion activities, and increasing application of technology, Hung said. Quang Ninh is also an attractive tourist site as it draws millions of domestic and foreign tourists each year, especially those from Southeast Asian nations. However, the locality’s tourism infrastructure facilities have yet to meet demand of luxury holiday-makers. Therefore investors have poured investment into building luxury accommodation in the province. Local authorities aim to accelerate the construction of infrastructure projects such as Ha Long - Hai Phong and Ha Long – Van Don, Van Don – Mong Cai expressways, Quang Ninh Airport, and Hai Ha Industrial Park, among others. A series of projects have been implemented under the private-public partnership model since late 2014. Quang Ninh has also applied the model to social and working infrastructure, medical and educational establishments and information technology. Local authorities have also asked for approval from the Government to build Quang Ninh Airport and Van Don-Tien Yen-Mong Cai expressway under the model. Made-in-Korea products pour into Vietnam The Vietnamese retail market is still attractive to businesses from the Republic of Korea (RoK), heard a recent workshop in Hanoi. General Director of the Korea Trade-Investment Promotion Agency Park Chulho said the free trade agreement (FTA) between Vietnam and the RoK took effect in 2015 with several tax lines removed. The FTA between ASEAN and the RoK has also opened up opportunities for the business community, especially Vietnam and the RoK, to realise the two-way trade target of 70 billion USD by 2020, he added. He cited more than 170,000 Korean people and 5,500 enterprises living and operating in Vietnam, and the RoK is also the third biggest trade partner of Vietnam, after the US and China. Hong Sun, Secretary General of the Korea Chamber of Commerce and Industry, said Vietnam imported 22.4 billion USD worth of goods from the RoK. Foreign investors are attracted to the Vietnamese market as they see the country’s potential and rising goods consumption. Ko Sang Goo, president of the RoK’s K&K trading company, revealed its strategy of bringing Korean products to Vietnam in the coming years. He said 67 Korean companies will sell products subject to tax reductions under the Vietnam – RoK FTA in the Southeast Asian market at the end of 2016. This is considered a big campaign to make inroads into one of the largest markets in the region, he added. Korean lawyer Choi Jiung said that with current policies, there are plenty opportunities for overseas businesses to penetrate Vietnam. He urged the two sides to optimise the Vietnam – RoK free trade pact for mutual benefits. Since September 2016, a series of Korean convenience stores opened in Vietnam, a number expected to hit 200 in the next five years. E-Mart, Korea’s No.1 discount store, signed an agreement to inject 4 trillion VND (17.6 billion USD) into Ho Chi Minh City to build a large-scale retail network. Binh Dinh attracts U$440 million from 21 projects The central province of Binh Dinh has granted investment certificates for 21 projects worth US$440 million so far this year, up 50% from 2015. According to the province’s centre for investment promotion and cooperation, the service, trade and real estate sector attracted 12 projects, the agricultural sector - five projects and the industrial sector - four projects. Some among projects with large registered capital are the Hoa Sen tower with an investment of US$ 225 million,  US$91 million FLC five-star hotel-apartment complex and the condotel complex of the BMC Company worth US$35 million. The same period, the province has granted investment certificates to eight foreign direct investment (FDI) projects with a combined capital of over US$30 million. Those brought the total number of FDI projects in Binh Dinh to 61 with combined investment capital of close to US$1.8 billion. Of which, the agriculture-forestry-fishery sector had eight projects worth US$52 million, while 33 projects with a combined capital of US$1.41 billion have registered in the industry-construction sector and 20 projects capitalized at US$336 million were in the service sector. In 2016, Binh Dinh has worked with 50 domestic and foreign enterprises and partners who came to survey investment environment and seek investment opportunities. Around 135 international delegations from 28 countries have come to Binh Dinh while Binh Dinh has sent 156 delegations to 27 countries to attend investment and cooperation conferences. Thaco exports bus parts to Russia Truong Hai Auto Corporation (Thaco) has exported three sets of bus parts to Russia to gauge the market there and if things go well, the local firm will ship 300 sets by the year-end, said Tran Ba Duong, chairman of Thaco. Speaking at a recent seminar on supporting industries in HCMC, Duong said the company is boosting the manufacture of auto parts to increase the local content of its vehicles to 40% and at the same time export some to foreign markets. Thaco now has four auto production and assembly plants and 16 auto parts factories. In April 2016, Thaco broke ground for a project to expand its automotive engineering complex Chu Lai-Truong Hai in Quang Nam Province to 268 hectares. The project includes a new passenger car factory with an annual capacity of up to 100,000 units. Thaco said the other factories would be able to turn out over 100,000 trucks, 12,000 minivans of 12-16 seats, and 8,000 bigger buses. As part of its business strategy, Thaco will expand Chu Lai-Truong Hai Port and establish shipping routes to ports in Japan, South Korea and China to cut shipping time and cost. According to experts, the auto industry holds huge potential but faces mounting competition as tariffs on completely-built-up autos imported from ASEAN nations will be cut to 0% in 2018. The production cost of autos in Vietnam is nearly 20% higher than in Thailand and Indonesia. Vietnam – potential market for Danish businesses Vietnam is a potential market for Danish businesses as their investment into the country tends to increase, said Danish Ambassador to Vietnam Charlotte Laursen. Ambassador Laursen said 2016 marks the 45th anniversary of Denmark-Vietnam diplomatic ties. Denmark has been one of Vietnam’s biggest ODA donors since 1993. Danish ODA grants focus on safe drinking water, sanitation, agriculture, environment and administration reform. Vietnam is considered a success of Danish ODA grants in the globe, Ms Laursen said. Currently, around 130 Danish businesses are operating in Vietnam and concentrating in furniture making, agriculture, fisheries and food industries. They are interested in Vietnam market as they have realized its great potential. According to preliminary statistics from the General Department of Vietnam Customs, Vietnam imported US$281.9 million worth of products from Denmark in the first ten months of this year, up 39.61%. Key import products from Denmark are machines, equipment, tools, pharmaceutical products, chemicals, and seafood.  Machines, equipment and tools ranked top with a value of US$63.9 million, up 129.26%, trailed by chemicals (US$25.9 million, down 2.32%), and pharmaceutical products (US$20.4 million, down 2.04%). Microsoft Vietnam honoured for community dedication by AmCham Microsoft Vietnam continues to be honoured for its community dedication by AmCham at the annual CSR Recognition Award 2016. This is the second consecutive year that Microsoft receives this prestigious award which recognises Microsoft’s commitment to transparency, good governance, sustainable business practices and serving community that provides a model inspiring others to follow in Vietnam, especially in empowering Vietnamese people and organisations to create more and achieve more.  Entering the market in 1996, after nearly 20 years in operation, Microsoft Vietnam not only affirms its position in promoting and developing the ICT sector but also contributes to Vietnam's economic and social developments through a variety of programmes.  The programmes cover infrastructure construction, education projects, entrepreneurship supports, skill trainings and enhancing the quality of human resources. To date, Microsoft Vietnam has invested $80 million in the country, donated software, provided free services, and granted more than $13 million for roughly 200 non-profit organisations across the country.  Microsoft also actively contributes to enhance ICT applications for non-profit organisations aiming at increasing work efficiency and providing better support to the community.  One of the special investment programmes of Microsoft in Vietnam is Youthspark initiative. This is Microsoft's efforts over three years (2015-2018) to support Vietnamese youth access CS and ICT, through free classes, internship programmes and connection forums. Up to present, Microsoft’s Youthspark has created opportunities for more than 100 thousand Vietnamese youth to learn ICT and CS knowledge, develop appropriate soft skills for learning and working in modern society.  The initiative helps improve the capacity of young people and increase their chance to success in looking for job and entrepreneurship.  It is expected that in the next two years, through cooperation with relevant ministries, sectors, and partners such as Vietnet-ICT, VCCI, Kenan, CED, REACH and NGOs, Youthspark programme will hopefully be expanded and increase the accessibility of young people across the country. “Microsoft’s long-term commitment to Vietnam is empowering Vietnamese people and organisations to achieve more, especially disadvantaged areas in remote ones.  “CSR Recognition Award in the second consecutive year has confirmed Microsoft’s efforts in community activities in Vietnam.  “This is certainly a motivation for Microsoft to continue its mission – to strongly contribute to the sustainable development of Vietnam,” said Vu Minh Tri, general director of Microsoft Vietnam. Besides, Microsoft has also supported start-ups and small and medium enterprises.  Microsoft Bizspark successfully supported 194 start-ups. Together with the Vietnam Chamber of Commerce and Industry, Microsoft assisted more than 2,000 small and medium enterprises. In cooperation with the Ministry of Education and Training, Microsoft’s education programme has reached approximately 63,000 teachers nationwide.  Microsoft employees are also encouraged to spend time for community activities.  In 2016, Microsoft employees have volunteered, spent time and material support for over 1,600 orphans and disadvantaged children in Vietnam. Microsoft partners with VCCI to benefit Vietnamese youth Launching M-Powered, Microsoft continues to strengthen commitment to support young people in Vietnam. Today, US tech giant Microsoft and the Vietnam Chamber of Commerce and Industry (VCCI) launch M-Powered e-portal in Vietnam. Powered by the MS public cloud and people, by partnerships with government, academia, multilateral agencies and non-profit organisations, the portal will enhance Vietnamese human capital by providing technical and soft skill learning opportunities and access to job listings. The portal will carry Microsoft and partner-created content in Vietnamese.  Online training can be supplemented by real-time mentoring for tech and soft skills. M-Powered will help young people to strengthen their skills as well as helping businesses to find suitable employees and reducing the cost of training new people. According to data on labour and employment in the first six months of 2016 from the General Department of Statistics, the unemployment rate was at an average 6.83 per cent and 2.27 per cent of young people (from 15 to 24 years old) in working age, respectively, in the first six months of 2016. It can be seen that young people are much more difficult to find jobs than other citizens in working age. Explaining for the high unemployment rate of young people, USAID conducted a baseline survey in 2015. The report indicated that the majority of graduates have not met the demands of employers because they lack necessary skills to perform one’s job. Computing skills and English were identified as critical soft skills needed for workplace. To address this gap, Microsoft partners with VCCI to launch M-Powered which is a part of the Microsoft YouthSpark programme- a Microsoft’s initiative to increase access for all youth to learn computer science, empowering them to achieve more for themselves, their families and their communities. M-Powered reinforces Microsoft’s long-term commitment to the future of Vietnam in terms of developing the country's economy, encouraging innovation and helping Vietnamese people. M-Powered will focus on the following key pillars: Provide Computer Science/ICT and soft skills learning opportunities for youth to improve their competence for work. Through the network of business partners of VCCI and Microsoft Vietnam, the portal will introduce and connect job opportunities from businesses to young people. Besides, on this portal, experts and experienced staff, leaders, trainers from Microsoft, VCCI, universities, colleges, business partners, startup accelerators will provide mentoring to youths on career development, technical skills and business management knowledge, and more which will enable them to overcome issues and enter labor market easily and smoothly. “Microsoft strives to empower Vietnam's digital generation to support the development of country's economy through our YouthSpark programme. M-Powered online portal will be an interface to connect young people with career, mentoring and learning opportunities,” said Astrid Tuminez, regional director of Legal and Corporate Affairs in Southeast Asia of Microsoft. “The portal is built on Microsoft cloud computing platform, using Vietnamese language which is very user-friendly so that youths can easily access to useful resources provided to capture better opportunities for life.” In Vietnam, Microsoft collaborates with local NGOs such as VCCI, VIETNET-ICT, CED and Kenan Institute Asia to implement YouthSpark programme. YouthSpark Vietnam has achieved impressive outcomes during three years: More than 100,000 Vietnamese young people were trained on Computer Science-ICT, soft skills and attended variety of forums, workshops, career days, internship organised by Microsoft and partners to help them meet the demand of modern learning and working environment. “I have graduated for more than six months and I have applied for jobs many times but still could not find a job due to lack of relevant skills. “Then, I was introduced to attend some free training workshops hosted by VCCI and Microsoft. Thanks to the training, I have improved my ability to use technology and computer to work. “The Project also created a chance for me to improve my experience and skills in real workplace via internship at enterprises. Thanks to that, I have matriculated and get to work at MediaMart. “These programmes and network of Microsoft and partners have inspired and supported young people like me not just in developing technical and soft skills but also in real life working experience to obtain employment and meet job satisfaction,” said Trinh Viet Anh, graduate from Hanoi Vocational College of High Technology. “With continuous updated information on M-powered, the portal is expected to be a useful and effective channel for both employers and job seekers,” a VCCI representative shared. “According to the Vietnamese government, the goal is to have one million IT workers by 2020. As a technology leader and commitment to support Vietnam, Microsoft has been cooperating with local partners to provide a variety of IT courses and technology resources to thousands of young people. “M-Powered online portal will serve as the bridge for the youth to make their dreams come true,” said Vu Minh Tri, CEO of Microsoft Vietnam. Microsoft also calls for collaboration from corporations, businesses, experts to support Vietnamese youth having more opportunities of jobs, internships, consultants, via M-Powered to make the e-portal become a truly useful platform in Vietnam. M-Powered e-portal can be accessed at youthvietnam.vn or thanhnienvietnam.net.vn. PM: Vietnam is not the place for pricing transfer Prime Minister Nguyen Xuan Phuc reiterated that Vietnam would continue to improve institutional mechanism for a market economy, including the legal system and administrative reforms in an attempt to create a more favorable business environment in the nation. He promised to assist the private sector to encourage further and stronger development and called on all types of business entities, particularly foreign-invested enterprises (FIEs). “For the FIE sector, the government expects that foreign investors would be patient and put their hopes on Vietnam’s reforms, while strongly accelerating technology transfer, human resource training and management sharing,” PM Phuc told the annual Vietnam Business Forum (VBF), which opened on December 5. “Foreign investors should also be more responsible to the local community, taking the initiative to protect the natural environment for sustainable development in Vietnam,” PM Phuc insisted. While calling for more co-operation among all business sectors – from FIEs to the private sector – PM Phuc noted that Vietnam will not welcome those investors who consider the nation a safe place for pricing transfer and environmentally polluting activities. “Foreign investors should come here to Vietnam with your brain using modern technology and advanced management skills – and your heart which includes high standards of both business ethics and corporate culture,” PM Phuc said. The annual VBF 2016 this year has opened with the theme “Strengthening the private sector: Forging partnerships between domestic and foreign enterprises for a harmonious development of the Vietnamese economy.” This year, the VBF consists of seven programs: empowering SMEs competence; promoting subsidiary industries; raising human resource and training demands; developing the capital market; improving infrastructure and PPP, BOT, BO, BT mechanisms; clean and renewable energy; and climate change awareness and environmental protection. These topics are essential and appropriate within Vietnam’s economic development strategies, according to the Ministry of Planning and Investment (MPI) – co-organizer of the VBF. Shortly prior to the VBF opening, Vietnam climbed up 14 ranks to number 73 in the Global Enabling Trade Index, according to the latest World Economic Forum (WEF) report. The WEF report lists four key sub-indices in terms of performance for each country: domestic and foreign market access; efficiency and transparency of border administration; transport infrastructure; and operating environment. Of the four, Vietnam scored highest in domestic market access at 4.9, ranking 77th of 136. It also showed great improvement in other indices and a general upward trend. For instance, it ranked 66th in national availability and use of information and communications technology, and 77th in operating environment. The report says Vietnam has improved significantly in trade capacity, largely driven by improvements in customs efficiency and reduction in waiting time for import and export compliance procedures. Another clear improvement for Vietnam in the 2016 report is its placement in 19th place for international maritime trade connectivity, nine ranks up over last year. The WEF report also commends Vietnam for making considerable efforts to improve market access for imports, through increasing the proportion of duty free imports from 55 to 71 per cent compared to 2014, creating favorable conditions for exporting and importing businesses, and enhancing the economy’s commercial competitiveness. More and more foreign businesses are conducting trade with domestic firms, the report notes. The country’s capability to penetrate foreign markets has also grown due to relatively low customs tariffs, down from 3.8 to 3.3 per cent, and an increase in preferential treatment for countries importing from Vietnam. However, compared to neighboring countries, Vietnam’s current customs procedures and border access have been undermining its commercial competitiveness, the WEF report notes. It identifies several problematic factors in imports, including burdensome procedures, tariffs and non-tariff barriers and high cost or delays caused by transportation weaknesses. Export sector problems include difficulties in identifying potential markets and buyers, technical requirements and standards, and the high cost or delays caused by domestic procedures. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR