BUSINESS IN BRIEF 20/10 Building material market remains stable   The domestic building material market remained stable in the first nine months of this year, according to the Ministry of Construction.  The ministry said plans and programmes for development of building materials have ensured the balance between supply and local market demand. The total consumption of cement and clinker, two key building material products, grew 6 percent to 59.27 million tonnes in the first nine months of this year. Consumption in the domestic market was estimated at 45.28 million tonnes, 4 percent higher than the same period last year, including 18.9 million tonnes sold by the Vietnam Cement Industry Corporation. The cement industry also exported about 13.99 million tonnes, nearly completing the milestone annual export target of 14-15 million tonnes, despite fierce competition from Thailand and China and disadvantages in tax rate and export prices.  During the first nine months, Vietnam produced 141 million sq.m of building glass products, or 96 percent of the total volume in the same period of last year. The ceramic tile volume also reached 416 million sq.m, 4 percent over the same period last year, and sanitary ware production reached 9.9 million units, a year-on-year growth of 4 percent.- Deputy PM highlights ICT business opportunities Deputy Prime Minister Vu Duc Dam has highlighted business opportunities in information and communication technology (ICT) in Vietnam on the back of its 100 million population with 60 percent aged below 35 and many subscribing to Internet.  Speaking to the annual Vietnam ICT Investment Forum 2017 held in Hanoi on October 18, Dam said Vietnam has become a destination for foreign ICT firms. Last year, the domestic ICT sector earned over 67.69 billion USD, more than 60.78 billion USD of which was from exports, mostly contributed by foreign investors.  Vietnam is improving business climate to attract ICT investment, he said, adding that ministries, agencies and associations have launched IT workforce training programmes to meet demand.  He described data as an especially important resource in a digital economy amid the fourth industrial revolution (Industry 4.0), saying that the government and sectors are collecting data for joint use.  Minister of Information and Communications Truong Minh Tuan expressed his belief that amid the trends of Internet of Things (IoT), Big Data and artificial intelligence, investors will succeed in Vietnam thanks to the government’s incentives.  In order to fully tap advantages brought about by Industry 4.0, Tuan said the ministry will create a supportive ecosystem to connect domestic and foreign units with the government as well as partner with the Ministry of Education and Training, associations and business community to promote the training of high-quality IT workforce.  In the near future, Vietnam will prioritise ICT development at home and gear towards ASEAN and global markets, he said.  Participants highlighted opportunities and challenges in attracting investment in Vietnamese digital economy and proposed measures regarding legal framework, infrastructure, digital products and services, innovation and human resources.  On the occasion, forums featuring ICT policies towards attracting investment attraction in digital economy, and digital economy market: investment opportunities and challenges were also held.  ICT firms also attended a business networking exhibition introducing new products.  The Vietnam ICT Investment Forum aimed to connect domestic and foreign ICT investors, especially in e-commerce, smart city, Internet of Things and start-ups. Int’l conference on communications technologies opens in Binh Dinh The International Conference on Advanced Technologies for Communications (ATC 2017) kicked off in the central province of Binh Dinh on October 18. The event was co-organised by the Radio and Electronics Association of Vietnam (REV) and the IEEE Communications Society. It drew the participation of 150 delegates from 22 nations and territories. As many as 60 reports focusing on modern technologies were delivered at the conference, including three plenary session reports and 57 official reports. The ATC 2017 aims to create an international forum for scientific and technological exchanges among Vietnamese and worldwide scientists in the fields of electronics, communications and related areas as well as to gather their high-quality research contributions. It also strives to enhance research activities and human resources training in electronics, information technology and communications in Vietnamese and international universities and institutes. The conference runs until October 20. Roadshow introduces auction of SCIC’s stake at Vinamilk The State Capital Investment Corporation (SCIC) organised a roadshow in Ho Chi Minh City on October 18 to introduce opportunities from the offloading of its 3.33-percent stake at the Vietnam Dairy Products Joint Stock Company (Vinamilk). The stake to be sold is equivalent to more than 48.3 million shares. However, investors have to wait until November 1 to know the shares’ starting price. Compared to the previous sale, the upcoming auction, slated for November 10 at the HCM Stock Exchange, is more open to foreign investors who can make deposits in USD, but these deposits will have to be converted into VND if they win the auction. Nguyen Duc Chi, Chairman of the SCIC member council, said if this auction is successful, the State will hold only 36 percent of Vinamilk’s charter capital. At the first auction last December, the SCIC offloaded more than 130 million shares in the dairy firm but sold only 60 percent of them. Two similar roadshows to popularise the auction are scheduled to be held in Singapore and Hong Kong in the time ahead. As of September 2017, Vinamilk had made up 57.8 percent of the dairy market share in Vietnam. It is set to produce 2.8 million tonnes of products of all kinds by 2021, up 70 percent from 2016. It also targets 80 trillion VND (3.5 billion USD) in revenue by that year. JICA official: Payment delay – barrier to ODA-funded projects Payment and site clearance delay are major barriers to official development assistance (ODA)-funded projects in Vietnam, chief representative of the Japan International Cooperation Agency (JICA) in Vietnam Fujita Yasuo told a press conference in Hanoi on October 18.  In the first half of the fiscal year 2017 from April 1 – September 30, Japanese ODA-funded projects brought fruits to Vietnam, mostly in the three pillars of promoting growth and competitiveness, coping with vulnerable issues and strengthening governance. Among them are a north-south highway and a project to transfer vaccine production technology to Vietnam’s State-run POLYVAC company.  Procurement data also showed that Vietnamese firms won numerous contracts via ODA projects.  Yasuo said JICA highly values the Vietnamese government’s efforts to limit public debts, adding that ODA disbursement is not a major factor to increase public debts.  JICA suggests the Vietnamese government continue reviewing procedures to promptly decide on budget allocation for projects using loans, he said.  In the near future, JICA will continue working more closely with the Vietnamese government to discuss how to effectively devise and carry out priority projects, use capital from the private sector and Japanese firms.  During the six-month period, Japan committed nearly 61.8 billion JPY worth of ODA to new projects, 51.2 billion USD of which was disbursed.  A project using non-refundable aid worth 1.8 billion JPY was also signed. International Woodworking Industry Fair opens in HCM City The 12th International Woodworking Industry Fair (VietnamWood 2017), the biggest of its kind in Vietnam, kicked off at the Saigon Exhibition and Convention Centre in Ho Chi Minh City on October 18. This year’s event drew over 320 exhibitors from 25 nations and territories over the world with a lot of famous names in the wood processing industry such as Wilhelm Altendorf GmbH & Co. KG, Biesse, and Goodtek. Huynh Quang Thanh, President of the Binh Duong Wood Processing Association, said that with the participation of the world’s leading brands, the fair is a venue for enterprises to update latest technologies in order to have plans to buy machines and equipment serving wood production and processing. Deputy Secretary of the Association of Vietnam Timber and Forest Products Ngo Sy Hoai said that the wood export and processing industry is developing remarkably, resulting in higher demand for machines and equipment. VietnamWood 2017 is a good chance for Vietnamese firms to gain access to modern technologies and machines from other countries so as to upgrade their technologies, diversify projects and increase added values for Vietnam’s exported wood products. Several workshops on digital technology application and automation in the wood processing industry are expected to take place during the fair, which will last until October 21. Japan introduces turnip sowing, harvest machine to Can Tho A delegation from Japan’s Nomura Trade Co. Ltd led by Shuhei Tabata introduced its automated turnip sowing and harvest machine to the Department of Agriculture and Rural Development of the Mekong Delta city of Can Tho during a working session on October 18.  The machine also has a sensor to measure weather conditions, including humidity.  Tabata said Japan is one of the countries taking the lead in the fourth industrial revolution with several inventions used in agriculture.  Deputy Director of the provincial Department of Agriculture and Rural Development Nguyen Thi Kieu said Vietnam values Japan’s technologies, adding that the application of automated technology in agricultural production is an inevitable trend.  She suggested the Japanese side survey soil and weather conditions in the Mekong Delta to adjust the equipment appropriately. Gift market bursting ahead of Vietnamese Women’s Day The gift market for Vietnamese Women’s Day, October 20, this year is offering customers a wide range of products and services. Le Trong Van of HCM City, who was choosing gifts for his mother and wife at a supermarket in District 3, said: “In the past I would give my wife some money to buy gifts for my mother and herself. But this year I want to make a difference. “I think my mother and wife will be surprised with my gifts.” He said he would buy a skincare product for his mother and cloth for making ao dai (Vietnamese long dress) for his teacher wife. Van is not the only man buying gifts for the women in their lives on the occasion. And to take advantage of this, supermarkets and malls in HCM City are offering a wide range of gifts and services to satisfy all kinds of demands, and have launched promotions to attract customers. Big C supermarket chain is offering discounts of up to 50 percent on more than 1,000 items from 200 famous brands and freebies under its Ton vinh ve dep Viet (honouring Vietnamese beauty) programme until March 20. The programme focuses on skincare, make-up, body care, hair care and fashion products. Big C has also launched dozens of varieties of gift boxes with nice designs and reasonable prices. It is offering a 50 percent discount on the second item purchased of certain cosmetics. Korean supermarket chain Lotte Mart is organising the Beauty Expo 2 at all its stores nation-wide until October 20, promising customers an enjoyable shopping experience and a chance to meet their idols. It features several activities with the participation of prestigious brands like Unilever, P&G, L’Oreal, Kao, Unicharm, ROHTO, and Francia. In addition, thousands of items are being sold at discounts, customers can enjoy free beauty treatments and various amusement activities, get the chance to win diamonds from a lucky draw programme and participate in competitions to win prizes. Co.opmart supermarket is offering 25-50 percent discounts on women’s fashion products. Cosmetics, gift boxes, kitchen utensils, food and other products are also being sold at big discounts. Jewellery companies have introduced new collections and launched promotions. PNJ has launched many new jewellery collections together with promotions and a lucky draw with total prizes worth over 1 billion VND. The programme will run until October 22. Its PNJ Silver has introduced a new collection, and until October 22, customers with bills worth 700,000 VND and above will get a two-in-one canvas bag as a gift. Many other supermarkets as well as cosmetics and fashion shops and spas are running a slew of promotions. Besides cosmetics, jewellery and clothes, flowers are also popular as gifts. Shops at the Ho Thi Ky Flower Market have increased supply to meet the higher demand. They have also hired more staff to pack and deliver flowers. Dalat Hasfarm said its supply of cut flowers to the market has not increased much compared to last year, but the supply of long-lasting potted flowers with high duration is 20 per cent higher, mainly of rose, kalanchoe and begonia. At Thi Nghe Market on October 17, a bunch of 10 roses cost 80,000 VND compared to 50,000-60,000 VND a few days earlier. Phuong, a flower shop owner at the market, told Vietnam News that the prices are expected to increase further on the holiday. Bio-tech products promote sustainable agricultural growth The results of research on biotech applications such as microbial bio-pesticides have helped foster sustainable agricultural growth in Việt Nam, according to scientists. Bio-pesticides, for example, have been used in coffee and pepper crops, two of the seven main perennial crops of Việt Nam, Dr Phạm Nguyễn Đức Hoàng of the Biotechnology Centre of HCM City, said at an international conference on biotech research and application held yesterday at HCM City Open University. Most microbial bio-pesticides are used to control plant pathogenic fungi and nematodes. “The main purposes of microbial fertilisers for these crops are for nitrogen fixation, decomposition of organic matter, and nutrient absorption,” he said, adding that many microorganisms are used in fertilisers and bio-pesticides help to increase crop yield. The Biotechnology Center was able to create bio-products for these purposes using domestic microorganisms collected in southern Việt Nam, Hoàng said. Biochar from coffee husks and other crop waste can be used to enhance the effect of microbial products, he said. “The process improves crop quality and yield, decreases the use of chemical farming, and maintains the sustainability of the agricultural ecosystem,” he added. Associate Professor Nguyễn Anh Dũng of Tây Nguyên University said that bio-tech products were needed in the Central Highlands region, where agriculture plays an important role, to maintain sustainable development. Microbiological biotechnology, nanotechnology and enzymatic biotechnology should be the focus of more research, Dũng said. The conference, which was held by HCM City Open University, also heard presentations from Japanese and Thai scientists on biotech research and application in agriculture. Professor Akira Suzuki of Tokyo City University said that automated technology used in mushroom cultivation was effective but that its use was still not widespread. Mushroom companies are also eager to apply new technologies to save energy during cultivation. LED lights, for example, are used instead of fluorescent lamps, especially during budding and growth. In a related matter, Dr Takashi Yamanaka of Japan’s Forestry and Forest Products Research Institute, gave a presentation on the cultivation of the Tricholoma matsutake, one of the most economically important edible ectomycorrhizal mushrooms in the world. Pharmaceutical biotechnology, a relatively new field, involves the discovery and development of biomedicine. In Việt Nam, many biomedicines, including therapeutic drugs as well as kits for diagnosis and prognosis of human diseases, are now available. JICA wants to accelerate disbursement The Japanese International Co-operation Agency (JICA) will continue to co-operate with the Vietnamese Government at a higher level to further effectively implement Japanese ODA-funded projects in the future. A road section of North-South Express built by Japan’s ODA fund. -- photo courtersy JICA This was stated by JICA chief representative Fujita Yasuo yesterday at a press conference held to review the implementation of ODA projects in the first half of the fiscal year -- from April to September 2017. During the six months, several ODA projects were effectively carried out, contributing to the country’s sustainable development, he said. According to the chief representative, the ODA projects focused on three main fields -- growth promotion and competitiveness enhancement, preparedness for vulnerable issues, and administrative improvement. In the first half of the fiscal year, the total pledged ODA capital was JPY61.8 billion (US$548 million), of which JPY51.2 billion (US$ 454 million) was disbursed. So far, several projects have been completed and put into operation, such as Bắc-Nam (North-South) Express, Lạch Huyện International Port in Hải Phòng City, Thác Mơ Hydro-power plant in southern Bình Phước Province and POLYVAC vaccine production. Although positive results had been achieved by executing the ODA projects, slow progress in capital disbursement was a main obstacle that needed to be removed, Fujita Yasuo said. Besides this, slow progress of project approval by concerned Vietnamese offfices and slow pace of ground clearance seriously affected project implemementation. Fujita Yasuo said the obstacles would impact Việt Nam’s sustainable economic development and keep foreign investors away. To accelerate Japanese ODA projects, JICA asked the Vietnamese Government to review and simplify procedures to disburse capital soon. In the future, JICA would focus on projects that used capital from private businesses, he said.  Japanese businesses pour capital into Vietnam’s electronics industry The Vietnamese electronics industry is proving an attractive destination for foreign investors, particularly Japanese businesses. The booming tech industry has contributed remarkably to Vietnam’s economic growth and exports with the emergence of big foreign investment playing a pivotal role However, to meet the needs of foreign investors, experts believe a significant improvement in infrastructure is required. The world’s largest manufacturer of printer circuit boards and electronic assemblies, Japan’s Meiko Electronics Vietnam Co, Ltd, recently announced plans to construct a third electronics plant in Vietnam, with investment in the project totaling more than US$50 million. The presence of major electronics groups is forecast to generate further investment in the area, with a large number of other foreign businesses considering production ventures in Vietnam. So far more than US$10 billion in FDI capital has been drawn in with major brand names such as Samsung, Foxconn, LG, Panasonic and Intel all investing. In 2006, when Meiko first invested in Vietnam, it decided to select TNI Holdings Vietnam as its partner to cooperate in developing its first electronics plant in Thach That Industrial Park. Meiko’s project was one of the ten biggest FDI projects in the country in 2006 and the largest foreign electronics production project at that time. Statistics from the General Department of Vietnam Customs show that Vietnam’s exports in the first eight months of this year surged an impressive 19.3% to US$21.9 billion when compared against the same period last year.  20 goods groups hit more than US$1 billion in export turnover, including five goods groups achieving a turnover of over US$5 billion. General Department of Vietnam Customs said phones and components exports in particular increased 18% to nearly US$27 billion against last year’s corresponding period, the highest figure so far. According to the latest assessment by the Ministry of Industry and Trade, the high growth of such groups as mobile phones and components and computers, electronic components has driven production up to 25%. Despite the good news, many foreign investors are concerned with the state of the current infrastructure facilities in Vietnam, which so far lacks integration and synchronicity. They highlighted the need to further upgrade the existing infrastructure in order to both meet the demands of existing foreign investors and attract new FDI businesses. Nguyen Phi Hung, Chair of TNI Holdings Vietnam said his  group has attracted more than 400 investors operating in industrial parks, including 300 foreign investors from Japan, China, the US, Germany, the Republic of Korea, Thailand, Hong Kong and Taiwan. With the growing number of investment projects each year, TNI plans to expand more investments in new industrial parks (IPs) such as Que Vo 3 (Bac Ninh province), Dong Van 3 (Ha Nam province), Bim Son (Thanh Hoa), Minh Quang (Hung Yen) and other IPs in some northern provinces in the near future. Shrimp exports to EU rebound Shrimp exports to the EU constantly increased in August and September, making it the biggest consumer of the Vietnamese product, according to the Vietnam Association of Seafood Exporters and Producers (Vasep). Vasep has reported that shrimp exports to the market in June and July came to a standstill due to the supply shortage and price hikes while EU businesses reduced shrimp imports. However, as from August, exports to the EU have been restored with more supply from domestic businesses. The country’s shrimp export revenue hit US$2.5 billion in the first nine months, up 21.9% against the same period last year. Exports to the EU grew 32% in the period. High demand for shrimp from the EU pushed raw shrimp prices up. Domestic businesses are accelerating shrimp purchase to meet the EU markets. Vasep warned that to boost exports to the market, businesses should pay more attention to labels and the quality of products to build brand names and expand markets. They should make proper plans to improve their competitiveness against other exporters such as India. The EU tends to increase its shrimp imports in the remaining months of this year to serve culture and food festivals, offering a chance for domestic businesses to spur exports. Social media could give SMEs global reach: experts Small- and medium-sized enterprises (SMEs), which make up 90 per cent of businesses in Vietnam, should take advantage of new marketing tools like social media to have access to global value chains, experts said at a meeting held on October 17 in HCM City.  Speaking at the forum on SMEs, Mai Huynh, a representative of a Facebook team based in Singapore, said there were 53 million active Vietnamese Facebook users on a monthly basis. Of the figure, 96 per cent use Facebook on their smartphones, while 68 per cent of Vietnamese view pages about enterprises selling products on Facebook, creating a huge potential for online marketing. Tran Thi Thanh Tam, deputy director of the SMEs Promotion Centre of the Vietnam Chamber of Commerce and Industry (VCCI), said that SMEs were expected to have great opportunities to enter the global market in the digital economy. SMEs should take advantage of digital applications and minimise logistics and transaction costs by using the powerful tools of social media, she said. The fourth industrial revolution, which is digitally based, can help SMEs purchase goods and services in global value chains, opening up market access, attracting foreign investment, and accessing advanced production technology, according to Tam. However, most SMEs lack international customers and markets. Only 21 per cent of Vietnamese SMEs participate in global value chains. This challenge results in SMEs being less likely to benefit from the advantages of FDI, which include technology transfer, knowledge transfer and enhanced productivity. In addition, a major barrier for SMEs is the high cost of technology, while knowledge about e-commerce is still limited, hindering growth. More than 90 per cent of Vietnamese businesses are SMEs. They often encounter difficulties in accessing capital and technologies and lack management skills and connectivity, all of which are major hindrances when joining supply chains. Links among producers and distributors in supply chains are weak and have created unhealthy competition, making it more difficult for Vietnamese to join big markets. Though the Government has stepped up reform of institutions and improved the business environment, experts said it should minimise administrative procedures to help firms join supply chains. The forum was organised by the Vietnam Chamber of Commerce and Industry (VCCI) and Facebook. HCM City to help SMEs, start-ups The HCM City Centre for Supporting Enterprise Development (CSED) on October 18 signed a Memorandum of Understanding (MoU) with 30 organisations to provide support to small- and medium-sized enterprises (SMEs), including start-ups. The organisations include universities, educational institutions, business associations at the district level, industry associations, and State agencies. The signing was part of a conference organised by CSED under the city’s Department of Industry and Trade in cooperation with Gia Thinh Company and Saigon Biz Corporation. The conference discussed ways to help startups and small- and medium-sized enterprises (SMEs) build confidence and access world markets.  The meeting will be held annually by CSED under the direction of the Department of Industry and Trade. Pham Thanh Kien, Director of the Department of Industry and Trade, said: “Through the meeting and MOU signing, the department is committed to asking local and foreign agencies to propose solutions to support companies.” He said that agencies should work together to provide assistance for SMEs and start-ups so they can improve competitiveness. In addition to private investment, public-private partnerships will be the emphasis of the city as part of the effort to support start-ups. The city will also focus on activities to develop a start-up ecosystem under a programme to improve startups’ competitiveness and global integration, according to Kien. The programme’s main purpose is to encourage innovative startups through research, he added. He also pledged to reform administrative procedures, revoke illegal permits, and fight counterfeit products and trade fraud. Le Minh Trung, Director of CSED, said the centre would continue to work with agencies to organise similar meetings to support workers and help SMEs access capital.  “The centre will propose policies to support startups which will help them innovate, apply technology and reform their management models through investment incentive programmes and bank-to-enterprise programmes,” he said.| SMEs, the engine of growth and innovation in the Asia-Pacific region, account for over 97 percent of all enterprises and employ over half of the workforce across the region. Food industry’s HR training: Firms, universities to cooperate      Vice Rector of Ha Noi University of Science and Technology (HUST) Huynh Quyet Thang delivered this message at the 4th meeting of the NutriSEA project’s Steering Committee in the capital city on Wednesday. During the event, Thang emphasised the importance of drawing up effective traning programmes that involve enterprises from the food sector, to help universities and students and the firms themsevlevs. He said HUST was participating the three-year NutriSEA project, co-funded by the Eramus+ Programme from the European Union. HUST and Hue University are two Vietnamese universities selected to join the project, worth more than 970,000 euros (US$1.14 million). The project targets to create added value to the natural resources supporting food production in the three Southeast Asian countries of Viet Nam, Cambodia and Myanmar, while striving to facilitate co-operation between universities and enterprises. It includes training courses and establishment of technology transfer units at the partner universities, which focus on university-enterprise cooperation and innovation. The aim is to set up a regional food network with all the relevant stakeholders (universities, enterprises and authorities). Alejandro Montalban, head of the Cooperation Section, EU Delegation in Viet Nam, said NutriSEA, awarded in 2015, was a good example of EU-funded co-operation. European institutions and universities from Viet Nam, Cambodia, and Myanmar would work together to share experience and strive towards common goals to develop joint university courses and exchange knowledge and best practices. “In the bigger picture, the aim is to help Viet Nam and other ASEAN countries get on the road to achieving the Sustainable Development Goals, a shared objective under which the EU has committed to provide support,” he said. The 4th meeting, which continues until Friday, will witness the participation of representaives from partner schools, lecturers and a number of companies operating in the food sector.  International woodworking fair opens in HCM City      The 12th Viet Nam International Woodworking Industry Fair opened in HCM City on Wednesday, with over 350 firms from 28 countries and regions taking part. Seven international pavilions at the exhibition set up by the US, France, China, Germany, Sweden, Taiwan, and Canada are showcasing many woodworking machines and components used in the wood and furniture processing sector. Besides, many suppliers of high-performance woodworking machinery and equipment from Europe, America, Oceania and Asia have gathered under one roof to constitute a one-stop business trading platform for industry players seeking to upgrade operations. Two seminars on the woodworking sector will be held on the sidelines of the expo to provide an insight into the industry and offer professional opinions and solutions. Organised by the Viet Nam National Trade Fair & Advertising Company (Vinexad) and Yorkers Trade & Marketing Service Co, the exhibition, at the Saigon Exhibition and Convention Centre, will go on until October 21. Viet Nam earned over US$5.5 billion from export of wood and wood-based products in the first nine months of this year, up 11 per cent year-on-year, with the US, Japan, China, and the EU being key markets, according to the Viet Nam Timber and Forest Products Association. Full-year exports are expected to top $8 billion, Ngo Sy Hoai, the association’s deputy chairman, said. Technology plays a crucial role in the woodworking industry, he said, adding that Vietnamese firms need to invest more in modern technologies to reduce cost and improve their productivity and quality.  Int’l industrial fair opens in Ha Noi      The 26th Viet Nam International Industrial Fair (VIIF 2017) kicked off in the capital city on Wednesday, with the participation of 250 domestic and foreign exhibitors. The annual event, being held at the Ha Noi International Centre for Exhibition (ICE), will showcase advanced machines and technologies in manufacturing, agriculture, automation and engineering, as well as packing and printing, plastic and ceramics industries, in a total area of nearly 6,000sq.m. This year, in addition to the usual exhibitors, VIIF 2017 will see many newcomers from countries and territories such as Italy, South Korea, mainland China and Taiwan. At the opening ceremony, Deputy Minister of Culture, Sports and Tourism, Huynh Vinh Ai, said when the Industrial Revolution 4.0 was taking place worldwide, Vietnamese entrepreneurs had to make greater efforts in enhancing their presence in the domestic market, while improving their production capacities to seek more export opportunities, especially in the current competitive business environment. He added that industrial fairs serve as an effective tool to facilitate trade promotion activities and investment co-operation expansion. Organised by the Viet Nam Exhibition Fair Centre Joint Stock Company, the exhibition will run until Friday. Several forums and business events will be held during the event.The previous exhibition attracted the participation of 200 local and international exhibitors and approximately 5,570 visitors.  KDC exceeds full-year target in 9 months      Food producer Kido Group (KDC) reported on Wednesday that it had achieved its full-year profit target by the end of the third quarter. It said profit before tax was 9 per cent above the annual target of VND535 billion ($23.6 million) on revenues of VND5 trillion ($178 million), a 251 per cent increase. Frozen foods contributed 24 per cent of the revenues, the company said. KDC’s foray into the food industry two years ago has been successful, and it now has a nation-wide distribution system with 450,000 outlets selling canned foods and 70,000 others selling frozen food. Efforts to expand the business and increase the frozen food range are under way, it said. In the last quarter of this year it plans to bring a number of new products including new cooking oils, canned foods and sauces, it said. It plans to tie up with Dabaco to produce new products like processed foods and sausage, it added. Its other main product is instant noodles.  VRC Real Estate sells 35.3 million shares      VRC Real Estate and Investment Joint Stock Company sold 35.5 million shares to 581 investors, increasing the company’s charter capital to VND500 billion (US$22 million). These shares were offered at a 70 per cent discount, with the price at VND11,000 per share, on September 12. The custody and listing of the recently-issued shares is scheduled to be implemented from October 2017. Recently, VRC approved a list of 19 strategic investors to issue 25.34 million shares for sale at a price of VND11,000 per share. The only investor is currently VRC shareholder Nguyen Phuong Vi, who owns 602,810 shares of VRC, equivalent to 4.16 per cent stake. This year, VRC targets to achieve VND394 billion in revenue and VND120.5 billion in after-tax profit, a year-on-year increase of 526 per cent. The company expects to earn revenue of VND430 billion and after-tax profit of VND132 billion by 2018.  Hoa Phat reaches 93% of annual profit target      Hoa Phat Group hit a revenue of VND33.8 trillion (US$1.5 billion) in the first nine months of 2017, a year-on-year increase of 43 per cent. The group’s after-tax profit was VND5.6 trillion, a year-on-year increase of 21 per cent. This year, the group targeted VND40 trillion in revenue and VND6 trillion in after-tax profit. Therefore, with the results achieved in nine months, Hoa Phat has fulfilled 85 per cent of its revenue target and 93 per cent of its annual profit target, approved at the shareholder’s meeting. According to the group’s business report, over the past nine months, Hoa Phat has manufactured nearly 1.6 million tonnes of construction steel, an increase of 31 per cent over the same period last year, and achieved nearly 80 per cent of the year’s plan. As regards the export market, the company exported about 127,000 tonnes of construction steel and wire drawing steel, and 35,000 tonnes of steel billets in the reviewed period. Steel pipe products continue to dominate the market with nine-month sales of nearly 425,900 tonnes accounting for more than a quarter of the total steel pipe consumption in Viet Nam, and exporting about 8,000 tonnes of all types. In terms of the Hoa Phat Dung Quat iron and steel production complex, the company has selected construction contractors and technology equipment suppliers. All major machinery and equipment such as blast furnaces, steel furnaces, steel rolling and industrial gas are imported from G7 countries such as Italy and Germany. In particular, the hot rolled steel production line of the project is evaluated at the most modern level in the world till date. In the field of real estate, Hoa Phat is speeding up the completion of the Mandarin Garden 2 project to begin handing over apartments to customers from the end of this year. At the same time, the group has started other housing projects in Ha Noi and Hung Yen Province. The group is also actively implementing the colour coated steel project and the steel wire drawing factory in Hung Yen’s Pho Noi A Industrial Zone, expected to run the chain at the end of this year.      Reality TV programme for start-ups begins in November     Shark Tank, a new reality television programme for start-ups will begin on November 4 at VTV3 of Vietnamese Television. The first of its kind in Việt Nam, Shark Tank aims to connect investors to start-ups that are young and creative. The programme will be broadcast every Saturday and will end on February 17 next year. Start-ups will show their projects to a board of investors composed of leaders from big companies like Sunhouse, SAM Holdings, VinaCapital and CEN Group. Start-ups will try to convince the investors to offer them funds. In each episode, there will be three or four start-ups delivering their projects and then negotiating with an investor board about capital. The board of investors will then make a decision. The participating start-ups will come from many fields: technology, food, agriculture, health-care, education, fashion and service. Shark Tank, a famous programme from Sony Pictures, has two versions, Shark Tank and Dragons’ Den. Starting in Japan in 2001, the programme has appeared in 35 nations and territories and has attracted 300 million views. In the US, the programme receives an average of 250,000 registrations every season, with 48 per cent of the start-ups successfully winning funds from the investors.  Vietfood Beverage-Propack expo to open in HN      As many as 200 enterprises will participate in the 2017 Vietfood and Beverage-ProPack international exhibition, which will take place at the Ha Noi International Exhibition Centre in 91 Tran Hung Dao, from November 8 to 11. This will be the second time the expo being organised in Ha Noi after being held annually in HCM City for 22 years. It was held in the capital city for the first time last year. There will be more than 200 pavilions of exhibitors from 11 countries and territories, including South Korea, Greece, Singapore and Denmark, as well as Bulgaria, Japan, Taiwan, Thailand and India, along with China and Viet Nam. Products displayed at the exhibition include vegetables (fresh, dried, canned, processed), seafood (cooked, frozen), agricultural products (coffee, tea, cashew, pepper) and food ingredients, as well as beverage, confectionery, and packaging and food preservation equipment. Vietnamese firms account for about half of the participants this year, and their key products include tea, coffee, honey and edible nests, as well as rice, spices and packaged confectionery. The four-day event, organised by the Viet Nam National Trade Fair and Advertising Company (Vinexad), is expected to attract some 15,000 visitors, the majority of which are retailers, traders, distributors, importers, exporters and e-commerce partners from other countries and territories, including Hong Kong, Singapore, Thailand and Cambodia, as well as the Philippines, Japan, Russia, France and Australia. FLC Group and KLF on lookout for strategic investors Property developer FLC Group has sought its shareholders’ approval to put 149.5 million shares on sale for a strategic investor. Accordingly, FLC and enterprises who intend to become FLC’s strategic investor will negotiate about the buying price. FLC expects to earn at least VND1.49 trillion ($65.5 million) from the sale. The transaction will be implemented after receiving approval from the State Securities Commission of Vietnam (SSC). Once the sale is completed, FLC’s chartered capital will increase to VND7.87 trillion ($346.1 million) from the current VND6.38 trillion ($280.5 million). After the sale, FLC will spend VND600 billion ($26.4 million) of the proceeds developing an apartment, office, and shopping centre complex at 265 Cau Giay Street in Hanoi. Besides, FLC will pour an additional VND600 billion ($26.4 million) into its FLC Halong resort complex in Halong city of the northern province of Quang Ninh. The 224-hectare project, which has a total investment capital of VND3.4 trillion ($149.5 million), covers a total area of 224 hectares in Hong Ha ward in the city. The resort includes an 18-hole golf course, a 1,300-seat international conference centre, a 600-room five-star hotel, a club, an amusement park, villas, and synchronous transportation network.  According to the latest movements, KLF Global JSC, a member company of FLC, is also seeking shareholders’ approval to issue 98 million shares to increase its chartered capital to VND2.63 trillion ($115.6 million) from the current VND1.65 trillion ($72.5 million). Accordingly, KLF will offer 53 million shares for strategic investors at the price of VND10,000 ($0.44) apiece. These shares will not be transferable to other partners within one year of the sale. The sale will be implemented after receiving approval from SSC. The remaining 45 million shares will be offered to existing shareholders with the initial price not less than VND10,000 ($0.44) per share. KLF expects to complete the sale of these 45 million shares in 2017. After completing the sale of 98 million shares, KLF will spend VND300 billion ($13.2 million)  acquiring FLC’s projects in Sam Son city of the central province of Thanh Hoa, and the remaining money will be used for other investment activities. Foreign investor spends $29 million on stake in Tien Phong Plastic A foreign investor spent $29.3 million buying nine million of the 21.27 million shares in Tien Phong Plastic JSC divested by Nawaplatic Industry Co., Ltd. According to newswire Cafef, Thai PVC manufacturer Nawaplastic has released that it has completed the divestment of its entire 23.84 per cent holding, equaling 21.27 million shares, in Tien Phong Plastic. The transaction occurred between September 25 and October 12. Accordingly, Nawaplastic’s divestment attracted the attention of numerous existing shareholders as well as foreign investors. Notably, Tien Phong’s general director bought 410,000 shares, deputy general director 203,000 shares, and Southern Tien Phong Plastic JSC registered to buy 1.8 million shares. Additionally, an unidentified foreign investor completed the purchase of nine million shares for $29.3 million. Previously, Nawaplastic’s announcement to drop Tien Phong Plastic to increasing its holding in Binh Minh Plastic came as a surprise because both Binh Minh Plastic and Tien Phong Plastic approved lifting the foreign ownership limit (FOL) to 100 per cent. Furthermore, the Thai firm earned a large profit from its investments in the two Vietnamese companies. Both Nawaplastic and Tien Phong Plastic refused to comment on this decision. According to Robert Tran, general director of Robenny Strategic Consulting Group (headquartered in Canada) in the Asia-Pacific region and the US, the decision may have come from the internal conflict in the Board of Directors. Notably, in early July this year, Tien Phong Plastic, through its subsidiary Southern Tien Phong Plastic, struck a share sale agreement with Japanese Sekisui Chemical Company Limited. Accordingly, Sekisui Chemical will become a strategic shareholder with a 25.3 per cent stake in Southern Tien Phong Plastic. Besides, Sekisui Chemical would have a representative on Southern Tien Phong Plastic’s Board of Directors. Sekisui Chemical would help Tien Phong Plastic in general and Southern Tien Phong in particular manufacture products like plastic globe valves, coils, and resistance welding parts which are not made in Vietnam at the moment. Sekisui Chemical can rely on Tien Phong's nationwide distribution network to sell its products in Vietnam, and in return, the Japanese firm will transfer technology to its local partner. The co-operation between Sekisui Chemical and Tien Phong Plastic made Nawaplastic unhappy. At the time, Nawaplastic intended to buy more of State Capital Investment Corporation (SCIC)’s stake in Tien Phong Plastic to hold controlling rights. However, SCIC had yet to issue a specific divestment plan, while Tien Phong Plastic’s plan to lift its foreign ownership limit had yet to be approved at the time. This has created more momentum for Nawaplastic’s decision to withdraw from Tien Phong Plastic. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET