BUSINESS IN BRIEF 20/9 Habeco to wrap up talks on stake sale to Carlsberg in November Hanoi Alcohol Beer and Beverage JSC (Habeco) will end negotiations over sale of more shares to Denmark’s Carlsberg in November. At a conference on State-owned enterprise equitization in Hanoi City, a Habeco senior official said the company has tumbled on numerous obstacles in the negotiation process. Vuong Toan, deputy general director of Habeco, said Carlsberg had bought 16% of Habeco’s shares to become a strategic partner as stated in a cooperation agreement signed in 2009. The deal offers Carlsberg a priority option to acquire more shares at the State-owned company. Habeco had conducted nine rounds of talks with Carlsberg before the Government allowed Habeco to proceed with the stake sale at the end of this year. Carlsberg, which now owns 17.5% of Habeco, wants to increase its stake to at least 51%. However, the Vietnamese Government does not allow foreign companies to own more than 49% of Vietnamese companies trading in alcohol, food and real estate. A source told the Daily that the share price is the biggest problem that remains to be solved. Last month, the price of the Habeco stock on the Hochiminh Stock Exchange (HOSE) averaged out at VND85,000 (US$3.74) per share, meaning its market capitalization amounted to VND19.35 trillion. This price is double the level in October last year when the company listed on the bourse and 50% higher than in the initial public offering (IPO) in 2008. However, Carlsberg has insisted on acquiring Habeco shares at the IPO price, making it tough to reach common ground. Meanwhile, the Ministry of Industry and Trade, the administering agency of Habeco, has yet to officially announce how many shares would be offered and whether shares would be sold at once or in stages. And the ministry has not informed Carlsberg and other investors of a Habeco share sale cap. If Carlsberg acquires an extra stake at Habeco as planned, it would hold 30% of Vietnam’s beer market, the second largest market share after Saigon Beer-Alcohol-Beverage Company (Sabeco) with 40%. Petrol price experiences fifth hike   The domestic retail price of RON 92 petrol increased by 319 VND to 18,111 VND (79 cents) per litre, as of 3pm on September 20. The increase was made according to the latest decision of the ministries of industry and trade and finance. It is the fifth straight rise of RON 92 petrol from July 20, with a total rise value of 2,040 VND per litre. The price of E5 bio-fuel also rose by 297 VND to 17,836 VND per litre. The prices of diesel and kerosene were up by 491 VND and 568 VND per litre, standing at 14,441 VND and 13,115 VND, respectively.  The Ministry of Industry and Trade and the Ministry of Finance also decided to keep using the price stabilisation fund for RON92 petrol at 110 VND per litre. The use of the fund for E5 biofuel remained at 90 VND per litre. Meanwhile, the use of the fund for diesel and kerosene was 180 VND and 110 VND, per litre. From the beginning of this year, the petrol retail price faced 18 adjustments, including seven decreases and eight hikes. China imports 35% of Vietnam’s crude oil shipments China International United Petroleum and Chemicals Co Ltd (UNIPEC) spent US$733 million buying 1.78 million tons of crude oil from the Vietnam Oil and Gas Group (PVN) in the first eight months of this year, accounting for 35% of Vietnam’s crude oil exports. PVN on September 18 said it extracted 10.49 million tons of crude oil in January-August, with 9.19 million tons pumped locally. PVN and its partners sold 8.81 million tons at nearly US$3.6 billion through the PetroVietnam Oil Corporation (PVOIL). Of which, 4.97 million tons of crude oil worth US$2 billion was shipped to other countries and more than 3.8 million tons was supplied for domestic customers at US$1.59 billion. China was among 30 customers to buy crude oil directly from Vietnam or via third-party international traders. Chinese customers imported the product directly from PVN at an average price of US$412 a ton, US$9.59 higher than the average export price. For all China’s crude oil imports from Vietnam, the average price was US$405.31 per ton, US$2.9 above the average export price. The price depended on the quality of crude oil and market conditions. Vietnam currently extracts and exports 18 types of crude oil, with 17 of them at local oil fields and one at overseas oil fields. The quality of these types is different, leading to a price differential of US$17-18 a ton between high-quality crude oil, such as from Bach Ho and Black Lion fields, and the rest. Jan-Aug auto imports leap Imports of cars with nine seats or less into Vietnam grew strongly in the first eight months of 2017, according to the General Department of Vietnam Customs. Customs data shows that August imports of completely-built-up (CBU) autos bounded back, with 7,830 units worth US$187.8 million, up 12.8% and 12.7% over the previous month. However, CBU auto imports in July and August were lower than the average levels of the first and second quarters, which were respectively 8,850 and 8,240 units per month. According to the customs, Vietnam imported nearly 65,500 autos worth US$1.39 billion in the first eight months of 2017, down 4.9% in volume and 14.1% in value compared to the same period last year. Although imports of vehicles with nine seats or more and trucks fell sharply, imports of under-nine-seat cars and commercial passenger vehicles picked up. In January-August, the nation bought 32,700 cars under nine seats from abroad, up 13.9% year-on-year, while imports of pickup trucks and other kinds of vehicle totaled 25,400 and 7,400, down 14% and 30.2% year-on-year respectively. The rise of imports of cars with less than nine seats resulted from Vietnam’s commitments to the ASEAN Trade in Goods Agreement (ATIGA) in which the duty on CBU autos imported from ASEAN countries is down to 0% from 2018. Some auto assemblers in Vietnam have stopped making some models and shifted to importing them from some ASEAN countries instead. Thailand was the biggest CBU auto exporter to Vietnam in the first eight months, with 23,840 units worth US$431.85 million shipped to Vietnam, up 12.8% in volume and 9.9% in value year-on-year. Indonesia came in second with 15,540 units worth over US$277 million exported to Vietnam, up eight-fold and 12-fold against the same period last year respectively. CBU autos imported from Thailand and Indonesia accounted for over 60% of the country’s January-August auto imports. CBU vehicles imported from Thailand and Indonesia are replacing domestically assembled ones. According to the Vietnam Automobile Manufacturers Association (VAMA), 177,030 domestically assembled cars found buyers in the first eight months, down 6% year-on-year. Meanwhile, auto imports from other countries declined. In the first eight months of 2017, South Korea was the country’s third largest auto exporter to Vietnam, with nearly 6,000 units worth US$126.94 million, down 53.4% in volume and 43.8% in value year-on-year. Vietnam also imported 5,230 units from India, nearly 5,000 units from China and 2,410 units from Japan. Hai Phong considers reducing seaport fees The leaders of Hai Phong city said that they are collecting opinions from a number of associations in order to submit them to the municipal People's Council as they consider reducing fees for using infrastructure, service facilities and public utilities at ports in the city. Le Van Thanh, Secretary of Hai Phong municipal Party Committee and Chairman of the municipal People's Council, said at the working session with the Prime Minister Working Group on September 19 that the municipal People's Committee are collecting opinions from four associations and other relevant agencies to revise and adjust fees for using infrastructure, service facilities and public utilities at seaports in Hai Phong. The four associations include the Vietnam Automobile Transport Association, Vietnam Logistics Association, Vietnam Textile and Garment Association and Vietnam Seaports Association. According to Thanh, the adjustments in seaport charge rates will be included in the meeting of the municipal People's Council, scheduled for December 2017, for consideration and approval. The Secretary of Hai Phong Party Committee also stressed that the fees for import-export goods stored in 20ft shipping container (VND250,000 per container) and in 40ft shipping container (VND500,000 per container) are currently at a reasonable rate. Regarding liquid and bulk cargo, the fees are proposed to be reduced from VND20,000 per tonne to VND16,000 per tonne. Thanh said that the fees for import and export goods at ports in Hai Phong are equal to just 50% of the fees for 20ft shipping container and 62.5% of the fees for 40ft shipping container applied at border gates in Lao Cai and Lang Son. According to the Hai Phong municipal People's Committee, after eight months of collecting fees for seaport infrastructure use, 617 businesses are falling into arrears worth approximately VND45.7 billion (US$2.01 million). At the working session with the Prime Minister Working Group, a representative from the Vietnam Textile and Garment Association said that the implementation of seaport infrastructure fees in Hai Phong was carried out too quickly, without collecting opinions and considering its influence, making it difficult for enterprises to respond. The representative suggested that Hai Phong quickly considers reducing fees to facilitate enterprises in accordance with the guidance from the Prime Minister. Do Hoang Anh Tuan, Deputy Minister of Finance, also proposed that Hai Phong considers reducing the fees for import and export goods from 25-50% compared to the current levels to support domestic enterprises. Reference exchange rate up by 3 VND The State Bank of Vietnam set its reference VND/USD exchange rate at 22,446 VND/USD on September 20, up by 3 VND from September 19.  With the current  +/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,118 VND per USD and the floor rate is 21,774 VND per USD.  Major commercial banks’ rates continued to remain stable. Vietcombank, BIDV and Vietinbank offered 22,690 VND (buying) and 22,760 VND (selling), per USD, unchanged from the day ago. Vietnamese, Chinese businesses seek cooperation opportunities Nearly 50 businesses from Fujian province of China and Vietnam’s northeastern province of Quang Ninh gathered at a seminar in Ha Long city on September 19 to seek investment and trade cooperation opportunities.  The Fujian enterprises are operating in industrial production, trade, finance, transport infrastructure, export-import, logistics, IT, high-tech and green energy. Meanwhile, firms from Quang Ninh province specialise in tourism, material production, infrastructure construction and real estate.  Ta Duc Quyet, Director of the Mai Quyen Tourism One Member Company Limited, said over the past decade, apart from tourism, his company has cooperated with several Chinese businesses in mining. He expressed his hope that through the seminar, Quang Ninh will further simplify its administrative procedures to facilitate the operation of businesses.  Nguyen Duc Tuyen, Chairman of the Managing Board of Dong A Group which specialises in metallurgy, said his group has partnered with foreign counterparts, including those from China, in order to improve product quality.  The seminar created an opportunity for the participating enterprises to expand the market and seek cooperation opportunities in trade and investment, thus improving their competitiveness and ability for international integration. AIPA: Vietnam proposes building AEC with equal development Vietnam proposed a resolution on strengthening intra-regional cooperation to build an ASEAN Economic Community (AEC) of equal development and inclusive growth at the second plenary session of the 38th ASEAN Inter-Parliamentary Assembly (AIPA) General Assembly in the Philippines on September 19. The resolution, which was adopted with high consensus from AIPA member countries, suggests enhancing multinational cooperation to narrow development gap, ensure sustainable poverty reduction and effective implementation of social welfare. It calls for considering the building of a common institutional framework for the AEC. Vietnam also put forward ideas to modify the content of a resolution on combating marine plastic debris and micro-plastic proposed by Indonesia. The ideas concerned the mention of the UN sustainable development goal of enhancing the conservation and sustainable use of oceans, seas and marine resources and a call for the governments of AIPA member countries to promote communication campaigns to change the consumers’ habit of using plastic bags. Within the framework of the conference of the Women Parliamentarians of AIPA, the Vietnamese delegation contributed to the content of a resolution addressing health matters for women migrant workers and urging AIPA member countries to improve health financial policies to help them access healthcare services. After adopting 21 resolutions, heads of delegations of AIPA member countries signed a Joint Communiqué.  Participants also agreed to change the logo of the AIPA with the hope of promoting its solidarity and development. The AIPA-38 is taking place from September 16-19 with the participation of representatives from 10 ASEAN member countries and 11 observer nations.  Themed “ASEAN and AIPA: Partnering for Inclusive Change”, the event focuses on challenges facing the region and the world such as anti-drug, environmental protection, healthcare protection for women migrant workers, protection of women and children from sexual abuse, and food security, among others. Conference to talk Mekong Delta sustainable development model A conference on shaping the shift to sustainable development model adaptive to climate change in the Mekong Delta will take place in Can Tho city on September 26-27.  Prime Minister Nguyen Xuan Phuc will chair the event, which is expected to attract about 350 delegates, said Minister of Natural Resources and Environment Tran Hong Ha during a meeting with organisers on September 19.  The meeting will review challenges faced by the Mekong Delta between now and 2100, particularly those related to the management of water resources, and opportunities for regional sustainable development.  Participants will contribute ideas to the building of Mekong Delta socio-economic development plans, while discussing measures to shift to livelihoods and agricultural production models adaptive to climate change and projects on using cross border water resources. Relevant parties will define resources coordinating mechanisms and seek foreign and private support for the effort in both resources and technology.  The plenary session and deep discussions, hosted by ministers, will debate the possibility of foreign resources support for priority fields and consider issuing a joint statement on supporting the government’s efforts in shaping the shift to the Mekong Delta sustainable development model adaptive to climate change.  At the plenary session, the PM will listen to thematic reports and feedback by experts, scientists, foreign partners and entrepreneurs. British firms want to expand operations in HCM City Politburo member and Secretary of the Ho Chi Minh City Party Committee Nguyen Thien Nhan hosted a reception on September 19 for UK Ambassador to Vietnam Giles Lever, who noted British firms’ intention to expand operations in the city. Nhan appreciated the ambassador’s contributions to UK-Vietnam ties, including relations between the UK and HCM City. The UK is one of the biggest investment and trade partners of the southern city of Vietnam, he noted, explaining that bilateral trade exceeded 800 million USD in 2016. The country also ranks 12th among foreign investors in HCM City. He expressed his hope Lever would continue to promote HCM City-UK cooperation programmes, including a public-private partnership to build an on-demand examination and treatment section at Nguyen Tri Phuong Hospital. The official also called for British investment in fields HCM City is focusing on such as education, trade, the city’s financial centre construction, and smart city development. For his part, Ambassador Lever voiced delight at the growth in cooperation between the UK and Vietnam. Highlighting HCM City and Vietnam’s attractiveness to British investors, he said the British Business Group Vietnam is developing and wants to expand in the city, particularly in infrastructure development, banking and services. He noted his country’s readiness to support HCM City in developing a smart city and pushing ahead with cooperation projects. The UK also attaches importance to bilateral cooperation in education-training, investment and trade. Major bridge in Mekong Delta ready late this year Vam Cong Bridge, which connects Can Tho City and Dong Thap Province, will be opened to traffic in late December this year. Nguyen Dinh Vien, deputy general director of Cuu Long Corporation for Investment, Development and Project Management of Infrastructure, the developer of the bridge, told the Daily on the sidelines of his working session with Can Tho City on September 18 that the bridge is 95% complete. The corporation is trying to finish the bridge by November 31 and access roads by December 31.  The final spans of the bridge will be put in place late this month. Vam Cong Bridge spans the Hau River and connects Dong Thap’s Lap Vo District and Can Tho’s Thot Not District. The bridge alone is around three kilometers long and if the access roads at both ends of the bridge are included, the total length of bridge and road will be 5.75 kilometers. The six-lane bridge, which got off the ground in September 2013, allows for a maximum speed of 80 kilometers an hour. The cost of the bridge is more than US$271 million, funded by South Korea’s official development assistance (ODA) loans and Vietnam’s reciprocal capital. He said the bridge’s final spans would be put in place on September 29, not September 1 as stated by Deputy Minister of Transport Nguyen Nhat during a working session between Vice Chairman of the National Assembly Phung Quoc Hien and Can Tho City on August 31. Vam Cong is the largest bridge in the Mekong Delta connectivity plan, followed by Cao Lanh Bridge. The delta is divided by Tien and Hau rivers, with traffic between the regional centers relying on Vam Cong ferry service across the Tien River and Cao Lanh ferry service across the Hau River. Once in place, the two bridges will make travels faster and more convenient between HCMC and Mekong provinces like An Giang, Can Tho and Kien Giang. Traveloka strikes tourism deals with Danang and Hue Traveloka, an online tourism platform, has clinched memorandums of understanding on cooperation with the Danang Tourism Promotion Center and the Tourism Department of Thua Thien-Hue Province. The two agencies will act as a supporting media sponsor of Traveloka programs on every promotion channel, and give the company advice on how to promote travel destinations. Traveloka, meanwhile, will find ways to promote the reputation and image of the two Vietnamese localities through online marketing activities. The deals will help local businesses lure more tourists to Danang and Thua Thien-Hue, and increase bookings on the Traveloka platform. Danang is a major tourist destination in Vietnam. According to a report from the municipal tourism department, the city attracted 3.3 million visitors in the first half of this year, rising 33.2% year-on-year and making up 51.3% of the year’s target. Meanwhile, Thua Thien-Hue Province served about 1.7 million visitors in the six-month period, up 1.9% year-on-year, with revenue estimated at US$76.3 million. Traveloka Vietnam is a leading flight and hotel booking platform in Southeast Asia. It is working with more than 100 airlines, offering information about more than 200,000 routes across Asia-Pacific and Europe, and 300,000 hotels in 28 countries. It provides more than 40 payment options for customers in Indonesia, Thailand, Vietnam, Malaysia, Singapore and the Philippines, with 24/7 assistance from local customer service centers. Its mobile app has been downloaded more than 20 million times. Market corrects after long rally Shares declined on the two exchanges on September 19 as investors increased selling to capitalise on profits after a long rally. On the Ho Chi Minh Stock Exchange, the VN-Index erased September 18’s gains, edging down 0.24 percent to end at 805.93 points. The key market index increased 0.25 percent in the previous session. On the Hanoi Stock Exchange, the HNX-Index dropped 0.38 percent to end at 104.73 points. The northern market index gained 0.62 percent on September 18. The overall market breadth was negative with 249 stocks falling, 201 rising and 263 remaining unchanged. There was no consensus among large-cap stocks as 17 of the top 30 largest shares by market value and liquidity on the southern bourse (VN30) declined and 11 advanced. Vinamilk (VNM), brewer Sabeco (SAB), Vietcombank (VCB), Mobile World Group (MWG), Masan Group (MSN) and PV Gas (GAS) were among losers. Stocks which maintained an upward trend included VinGroup (VIC), FLC Faros Construction (ROS), Vietinbank (CTG), BIDV (BID), insurer Bao Viet Holdings (BVH), IT group FPT (FPT), steelmaker Hoa Phat Group (HPG) and PetroVietnam Drilling and Well Services (PVD). “The fact that many stocks corrected today had created strong pressure on the market, which is proven by the decrease in the afternoon trade,” analysts at BIDV Securities Co wrote in a note. Profit-taking pressure increased after the VN-Index touched the 810 resistance level in early afternoon trade. However, the positive signal was that money shifted from large caps to speculative stocks in the real estate, construction and building materials. The most active stocks on September 19 included FLC Group (FLC), Sai Gon Thuong Tin Real Estate (SCR), KLF Joint Venture Global Investment (KLF), Kim Vi Inox Import Export Production (KVC) and C.E.O Group (CEO) with trading volume of between 2-19 million shares each. According to analysts at Vietnam Investment Securities Co, cash flows tend to look for stocks that are expected to have positive third-quarter earnings. However, there is still a long time to go before the reporting season so the market will likely see large divergence. “Thus, the selection of stocks is very important and investors should be consistent when looking for stocks to increase,” analysts said. Liquidity decreased slightly with a total of 230.4 million shares worth a combined 4.5 trillion VND (198.2 million USD) being traded in the two markets, down 9.3 percent  in volume and 2.2 percent  in value compared to the previous session. Workshop seeks to enhance development of ethnic minority areas A regional workshop to share experience in harmonising culture, environmental and economic development for mountainous and ethnic minority areas was held in the northern province of Thai Nguyen on September 18. The workshop drew participation of representatives from ministries and departments of Vietnam, Laos, Cambodia, Myanmar and Thailand. Participants discussed relations between ethnic minority people and forest resources and employment of ethnic people amid intensive regional integration, thus proposing practical cooperation among countries to support them. Countries’ experience in building policies to provide jobs for ethnic people, especially women, was also shared at the event. Regional countries were advised to review and integrate policies and be transparent in assigning tasks for localities in enforcing policies. Besides, local authorities should be more active in creating chances for ethnic people to escape poverty and improve living standards with their own abilities. Participants also noted that countries should give priority to infrastructure, human resources development, vocational training and sustainable poverty alleviation.  In addition, more attention should be paid to investment in ethnic minority areas, along with social welfare and insurance. Vietnamese, Chinese businesses seek cooperation opportunities Nearly 50 businesses from Fujian province of China and Vietnam’s northeastern province of Quang Ninh gathered at a seminar in Ha Long city on September 19 to seek investment and trade cooperation opportunities.  The Fujian enterprises are operating in industrial production, trade, finance, transport infrastructure, export-import, logistics, IT, high-tech and green energy. Meanwhile, firms from Quang Ninh province specialise in tourism, material production, infrastructure construction and real estate.  Ta Duc Quyet, Director of the Mai Quyen Tourism One Member Company Limited, said over the past decade, apart from tourism, his company has cooperated with several Chinese businesses in mining. He expressed his hope that through the seminar, Quang Ninh will further simplify its administrative procedures to facilitate the operation of businesses.  Nguyen Duc Tuyen, Chairman of the Managing Board of Dong A Group which specialises in metallurgy, said his group has partnered with foreign counterparts, including those from China, in order to improve product quality.  The seminar created an opportunity for the participating enterprises to expand the market and seek cooperation opportunities in trade and investment, thus improving their competitiveness and ability for international integration. Hau Giang calls for investment in seven key projects The Mekong Delta province of Hau Giang is calling for nearly 300 million USD of investment in seven key projects, provincial officials said.  The province announced at a press conference on September 19 that it will hold an investment promotion conference in late September to announce priority projects and local incentives. Director of the provincial Department of Information and Communication Pham Van Tuu said the projects include a rice processing for export project accompanied by a rice farming area, a ecotourism site at the Lung Ngoc Hoang nature reserve, and infrastructure construction for several industrial parks and a high-tech agricultural zone.  Hau Giang plans to offer exemption and reduction of corporate income tax for between 2-4 years and a 50 percent reduction for the next 4-9 years, with the preferential tax rates ranging from 10-17 percent.  In the framework of the investment promotion conference there will be such activities as a fair and exhibitions, and seminars on the local potential for investment and development.  Currently, there are 4,200 enterprises with a total registered capital of 45 trillion VND (2 billion USD) in Hau Giang. The province has so far attracted 40 foreign and domestic investors, who have poured capital worth 760 million USD and 66.4 trillion VND, respectively, in the local industrial zones and complexes. Workshop talks ASEAN-generated chances for rural industry products The Department of Local Industry and Trade under the Ministry of Industry and Trade held a workshop in Hanoi on September 19 to look into ASEAN-generated opportunities for rural industry products. The workshop was part of events to honour Vietnam’s outstanding rural industry products. ASEAN has 622 million consumers and combined GDP of about 2.6 trillion USD and is the seventh and the third biggest economy in the world and Asia, respectively, boasting huge potential for businesses. Foreign direct investment in ASEAN has grown well, reaching 120 billion USD in 2015, with Vietnam the fifth largest investment destination in the region. Meanwhile, ASEAN is the second biggest trade partner of Vietnam, accounting for 13 percent of the country’s total foreign trade in 2015. Vietnamese exports to ASEAN are benefiting from reduced or removed import tariffs, the workshop heard. Dang Mai Anh, Vice Rector of the University of Industrial Fine Art, said to develop rural industry products, it is necessary to meet export markets’ demand by gearing products towards markets’ conditions and customs while paying attention to prices, design and Vietnam’s cultural identity in the products. Le An Hai, Deputy Director of the ministry’s Department of Asian and African Markets, said a challenge during integration is connectivity among domestic businesses. Some firms have very good competitiveness but do not coordinate well with other firms to compete with foreign rivals. Hoang Chinh Nghia, Deputy Director of the Department of Local Industry and Trade, said his department will promote industrial production and encourage businesses to step up innovation and application of modern technology, aiming to boost competitiveness and build trademarks. He said he hopes with industry promotion policies, rural industry producers will be able to grasp integration opportunities. UK eyes bilateral trade deal with Vietnam An official from the UK’s Foreign and Commonwealth Office has reaffirmed her country’s commitment to signing a bilateral trade agreement with Vietnam after it leaves the European Union.  This was reflected through Prime Minister Theresa May’s appointment of Ed Vaizey as a Trade Envoy for Vietnam, Director for Asia-Pacific Kate White stated on September 19 at a ceremony held by the Vietnamese Embassy in the UK to mark Vietnam’s 72nd National Day (September 2). The UK wants to boost trade cooperation with Vietnam, and appreciates the country’s efforts to reform its economic structure and improve the business environment, she stressed. She expressed her belief that hosting the APEC Leaders’ Week 2017 in November will be a chance for Vietnam to introduce its economic potential to the world. Vietnamese Ambassador Nguyen Van Thao lauded efforts made by the two governments and peoples to develop bilateral ties. Two-way trade reached 5.6 billion USD in 2016, up 30 percent compared with 2014, while education and tourism remain important cooperation aspects between the two countries. At present, there are about 12,000 Vietnamese students in the UK, with the figure rising yearly. The number of UK tourists to Vietnam is rising as well, especially after Vietnam offered visa exemptions for UK visitors and the launch of daily flights connecting Hanoi and Ho Chi Minh City with London. Since the beginning of this year, Vietnam has welcomed more than 250,000 UK tourists. MoIT to reveal list of gas traders      Viet Nam’s Ministry of Industry and Trade (MoIT) has recently announced a list of eligible exporters, importers and distributors of gas. Under the announcement, 51 enterprises are eligible to distribute gas and 23 traders are qualified to export and import gas in Viet Nam according to Decree No 19/2016/ND-CP on regulations of gas business and requirements for gas trading in Viet Nam. The list of 23 qualified traders for gas import and export includes some large companies in the gas industry, such as Petrovietnam Northern Gas Joint Stock Company, Tran Hong Quan Trading Company Limited, Hai Linh Company Limited, Petrovietnam Gas Corporation One Member Company Limited and Totalgaz Viet Nam Company Limited. Four traders are eligible to export and import liquefied gas, including Tannan Viet Nam Company Limited, Birz Viet Nam Company Limited, Samsung Electronics Viet Nam Thai Nguyen Company Limited. In particular, PetroVietnam Gas Joint Stock Corporation (PV Gas) is on the list of eligible traders producing and processing liquefied petroleum gas (LPG) that can exercise the right to export and import LPG. MoIT issued Decree No 19/2016/ND-CP on March 22, 2016 stipulating that enterprises trading in gas must meet certain conditions, such as every gas importer/exporter must own a certain quantity of LPG bottles (excluding mini-sized LPG bottles) that are eligible to be used on the market with total capacity of at least 3.93 million litres or every bottled LPG distributor must own LPG bottles (excluding mini-sized LPG bottles) that are eligible to be used on the market with total capacity of at least 2.62 million litres. In addition, the total capacity of LPG tanks has been reduced to 300cu.m. (formerly 800m3) for bottled LPG distributors. Prior to that, more than 40 small gas trading companies petitioned against the decree, saying they were being pushed into bankruptcy and were forced to quit the market because of this regulation.  Mekong countries emphasise infrastructure connectivity      Countries in the Greater Mekong Sub-region (GMS) should enhance their economic and infrastructure connectivity to promote economic development in the sub-region, Deputy Minister of Planning and Investment Dang Huy Dong said at a forum on Tuesday. Dong made his remarks during the ninth GMS Economic Corridors Forum, themed “Deepening and Widening Benefits of the Economic Corridors through Inter-sectoral Synergies.” The forum, co-organised by Viet Nam’s Ministry of Planning and Investment and the Asian Development Bank (ADB), attracted ministers, vice-ministers, senior officials, development partners and representatives of the private sector from the six GMS countries. GMS co-operation in general and the forming of economic corridors in particular, with the support of ADB and development partners, would help the GMS countries fully tap their development potential and achieve equitable and sustainable development, Dong said. “The strengthening of co-operation within member countries in the GMS region would help us achieve a common strategy which is fortifying linkages, enhancing competitiveness and community spirit,” he added. To achieve these goals, Dong stressed the need to improve the transport system, particularly the transport links that formed the base of the envisioned corridors, facilitating trade and hastening the development of industries along the economic corridors.  Ramesh Subramaniam, director general of the ADB’s Southeast Asia Department insisted on the need to build country-linking transport in multiple modes, including roads, railway and inland waterways. But simply building the infrastructure is not enough, he said. “Deepening and widening connectivity along the GMS economic corridors requires the upgrading and enhancement of transport infrastructure, but the crucial question now is how to ensure that these infrastructure links will yield their intended benefits in terms of increased trade flows, investment activity, industrial growth, employment, and incomes,” Subramaniam said. According to ADB’s assessment, GMS countries should strengthen infrastructure connectivity within the sub-region, boost the mobilisation of finance resources through Public-Private Partnership (PPP) form, reduce non-tariff barriers and facilitate trade within the GMS and between the sub-region and other regions. The larger goal is to build a Greater Mekong Sub-region of peace and stability in security and politics, dynamism and connectivity in economy, sustainability in the environment and harmony in social affairs. The forum also discussed the promotion of environmentally sustainable power trade in the region; the mobilisation of private sector investment into GMS infrastructure; local area development along the GMS economic corridors; ensuring the growth of regional e-commerce confers benefits for society; and the promotion of safe and environment-friendly agro-based value chains in the GMS. The GMS countries formed the forum in 2008 to bolster efforts to ensure the region’s inter-country transit links facilitate not only the movement of people, but also trade and other economic activities. The ADB has supported the establishment of the East-West, North-South, and Southern GMS Economic Corridors since 1998 to promote economic growth and integration in the sub-region.  Interest rate of short-term deposits inches up      Interest rate of short-term deposits last week inched up 0.1-0.2 percentage points, according to a report from SSI Retail Research. According to the report, the rates of one-month and six-month deposits increased from 4.5 per cent to 4.7 per cent per year and from 5.5 per cent to 5.6 per cent per year, respectively. In contrast, the rate of medium-term deposits declined slightly, with six and 12-month deposits dropping to 5.8 per cent and 6.7 per cent from 6.0 per cent and 6.8 per cent, respectively. Experts attributed the change to seasonal reasons as banks often restructure their capital source in the last quarter of the year. At the interbank market, the overnight and one-week rates last week also inched up to 0.76 per cent and 0.99 per cent, respectively. According to the SSI’s report, during the past week, the central bank issued bills worth VND18.43 trillion (US$811.9 million) at yield of 0.45 per cent, up from 0.4 per cent in the previous week. The report also showed that in the bond market, the State Treasury last week called for the bid of VND2 trillion bonds for four maturities -- five years, seven years, 10 years and 15 years. Five and seven-year tenor bonds successfully mobilised VND254 billion and VND200 billion at yields of 4.63 and 4.83 per cent per year, respectively, 0.04 and 0.02 per cent lower than the bid winning interest rates of the previous session. Ten-year tenor bonds also mobilised VND400 billion at yield of 5.38 per cent per year, equal to the bid winning interest rate of the previous session. Fifteen-year tenor bonds did not have bid winning interest rate. The average interest rate for G-bond auctions last month was 4.6 per cent per year for five-year tenor, 4.8 per cent for seven-year tenor, 5.38 per cent for 10-year tenor, 5.75 per cent for 15-year tenor and 6.1 per cent for 30-year tenor. The Ha Noi Stock Exchange (HNX) last month organised 17 auctions, mobilising a total of bonds worth VND3.179 trillion issued by the State Treasury. Compared with the previous month, the bid winning interest rates of Treasury bonds in August tended to decrease, with 0.12 per cent per year for a five-year term, 0.15 per cent for a seven-year term and 0.12 per cent for a 30-year term. The State Treasury has, so far, this year successfully mobilised G-bonds worth more than VND145.956 trillion through auction at the HNX.  Nghe An to get US$440.5 million resort complex      Property developer FLC Group has proposed its intention to build a VND10 trillion (US$440.5 million) FLC Beach & Golf Resort in the central province of Nghe An’s Nghi Loc District. The group on Monday had a meeting with the Provincial People’s Committee on its investment plans for the resort. FLC’s deputy general director Dang Tat Thang said they worked with foreign consultancy firms and conducted over 10 surveys at Tien Phong, Hai Don and Lu beaches in the province over the past three months. According to the investment plan, the complex would cover an area of 460ha and include 24 international standard constructions of 18-hole golf courses, a hotel and condotel with 1,000-2,500 rooms, a 1,000-seat international convention centre, villas, a shop house, a park, adventure sports and camping. The FLC group asked the People’s Committee and relevant agencies and departments to facilitate the group in securing land clearance. It plans to begin construction in March 2018. Speaking at the meeting, Nguyen Xuan Duong, deputy secretary cum chairman of the People’s Committee, lauded the investment plan and said it would give the province a new appearance and help promote tourism in the future. He assigned the relevant agencies to quickly complete procedures to ensure the project’s progress. At the meeting, FLC also donated VND9 billion to help people affected by the recent storm in the province.  Growth slows down as investors sell shares      Shares maintained an upward trend on the two exchanges on Tuesday morning but growth slowed as a few investors began to sell shares to realise profits. On the HCM Stock Exchange, the VN Index inched up 0.08 per cent to 808.53 points. The market breadth was neutral, with 128 stocks rising, 126 falling and 89 remaining flat. Large-cap stocks saw a divergence. Of the top 30 largest shares by market value and liquidity, 10 advanced, 10 declined and 10 closed unchanged. Vinamilk (VNM), PV Gas (GAS), Vietcombank (VCB) and Sacombank (STB) were among the losers, while FPT (FPT), Mobile World Group (MWG), BIDV (BID), Bao Viet Holdings (BVH) and Masan Group (MSN) maintained an upward trend. On the Ha Noi Stock Exchange, the HNX Index rose by 0.25 per cent to 105.40 points. The two indices have been on an upswing for the past month, and many investors have begun to sell shares to earn short-term profits. The VN Index expanded over 5 per cent in the past four weeks, while the HNX Index increased by 4.3 per cent. Some 136.5 million shares worth a combined VND2.4 trillion (US$105.7 million) were traded in the two markets. The afternoon trade session starts at 1pm.  Khánh Hòa to work with Grab on the hailing services After Grab announced the launch of GrabTaxi in Khánh Hòa, the provincial Department of Transport said operation of the ride hailing services firm was not licensed in the central province. Nguyễn Công Định, director of the Department of Transport, was quoted by Người Lao Động (The Labourer) online newspaper as saying that Khánh Hòa had not granted a licence for Grab’s operation due to the province’s overloaded transport infrastructure. The transport department would work with Grab on this issue. Due to the overloaded infrastructure, the province wanted Grab to cooperate with exiting taxi operators in the province to set up its service rather than introducing more cars. Previously, the provincial People’s Committee sent a document to the Ministry of Transport about why it had not granted a licence to GrabTaxi. However, GrabTaxi was reported to be available for booking in Khánh Hòa Province on Monday. Grab announced its operation of GrabTaxi in Khánh Hòa Province on Sunday after launching GrabTaxi and GrabCar in northern Quảng Ninh Province one month ago. Currently, Grab is present in five provinces and cities, including Hà Nội, HCM City and Đà Nẵng City. On January 7, 2016, the Ministry of Transport issued Decision 24 on the implementation of a pilot project on contracted passenger transportation in five provinces and cities, namely Hà Nội, HCM City, Đà Nẵng, Khánh Hòa and Quảng Ninh, by 2018.  Cities host largest startup conference and exhibition      HATCH! FAIR, an international startup conference, will return to the three cities of Ha Noi, HCM City and Da Nang, the event’s organiser said on Tuesday. HATCH! FAIR Elite conference, which discusses challenges and opportunities to promote the role of businesses in sustainable development, will take place in the capital city on Saturday. A similar conference, slated to be held in Da Nang on October 7, will showcase leading influential entrepreneurs, while discussing actions towards improving the early-stage startup ecosystem in the city. The conference will be held in HCM City on October 27-28, as part of HCM City’s Innovation and Entrepreneurship Week 2017. It will gather international and national players within the startup ecosystem in Viet Nam and feature top national and international leaders, entrepreneurs, investors and ecosystem builders. An annual startup exhibition will be held at the same time as the conference, showcasing more than 200 innovation-based startups, which will be vying for the attention of potential customers and media coverage. Notably, over 30 shortlisted early-stage innovation-based companies will compete for awards including cash, investment and field trips in HCM City. Since 2013, HATCH! FAIR has been organised by HATCH! Ventures Vietnam with support of the United Nation Development Programme in Viet Nam and the Embassy of Australia in Viet Nam. The previous event witnessed the participation of 128 start-up companies and orgnisations while attracting over 80 speakers from 20 countries, including successful entrepreneurs, experienced investors and top experts in their own industries. Mercedes-Benz vehicles recalled for power system fault      Mercedes-Benz Vietnam is issuing a recall to the owners of 1,234 vehicles of various models in Viet Nam to fix faulty power systems and the electrical connection to the electro-hydraulic power steering (EHPS). According to the German car company, the list of vehicles includes many small-size models from the A-Class, C-Class and E-Class sedans, SUVs like the GLC, GLE, GL, and high-performance AMG models. Under the recall campaign, 940 vehicles are being recalled to fix the power systems due to a risk of fire and the remainder of nearly 300 SUV units will be recalled to replace the electrical connections of the EHPS. Mercedes-Benz Vietnam said that the reason for recalling 940 vehicles is due to a defective starting current limiter that can be overloaded when starting the engine. The starting current limiter could overload under “unique” conditions where a driver repeatedly tried to start their car when the engine had seized up, said Mercedes-Benz Vietnam. In the worst case scenario it is possible to ignite the surrounding parts and thus cause a fire. The solution is to install a fuse on the starting current limiter as a precaution to ensure the safety of drivers and passengers. As for nearly 300 SUVs, Mercedes-Benz Vietnam says the EHPS’s electrical connection could get wet, increasing the risk of accidents depending on the condition of the vehicle. Mercedes-Benz Vietnam recommended that consumers should bring their vehicles to its official dealers to fix the error. The repairs are expected to take about one hour per unit. The recall campaign will last from now until September 10, 2020 at authorised agents across the country and is completely free. As for vehicles imported to Viet Nam under the form of assets, diplomatic and personal use, Mercedes-Benz Vietnam will support and fix the error for free when it receives approval from Daimler AG in Germany.  VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET