BUSINESS IN BRIEF 20/11 Ho Chi Minh City boosts ornamental fish exports   Ho Chi Minh City’s ornamental fish breeding industry is seeking to expand consumption markets as production and export of the species have been growing. According to statistics from the municipal Department of Agriculture and Rural Development, in the first nine months of the year, the city produced 115 million ornamental fish, up 18 percent year-on-year, and earned 15.11 million USD from exporting 13.36 million fish, respectively surging 35 percent and 23 percent from the same time last year. Small-scale and scattered production without cooperation among production establishments has made it difficult for Vietnamese suppliers to satisfy large orders, said Le Minh Phu, owner of Phu Ca ornamental fish farm in District 12. To handle the problem, a specialised area should be zoned off to raise different kinds of ornamental fish, he suggested. However, Tong Huu Chau, owner of Chau Tong ornamental fish farm in District 12 and Chairman of the city’s ornamental creature association, said that it is difficult to set up such a zone due to limited land fund in the city. Establishment of “satellite” ornamental fish farm systems will be a better choice as it reduces planning for ornamental fish farming land and helps breeders form their own ornamental fish village to branch out business. Linking with fish exporters is the best solution for fish breeders to increase their income, said Vo Thi Mong Thu, head of the city’s fisheries department. New pet fish species must be developed in parallel with improving their quality as they play significant roles in improving Vietnamese fish’s competitive capacity. Especially, Asian countries like China and Singapore import new kinds of Vietnamese ornamental fish and then export to other countries in their brand names. Vietnamese pet fish are shipped to 47 countries, with Europe accounting for 60-70 percent of the market share. Other major buyers are Germany, the UK, Sweden, Denmark, France, Italy, Switzerland and the Czech Republic. Ho Chi Minh City is a major centre for breeding ornamental fish, accounting for 50 percent of the country’s ornamental fish export earnings, according to the city’s Centre for Agricultural Consultancy and Support. It has bred many species, both foreign and local, and has established many feed mills that contributes to the growth of the industry. Siemens Healthcare signs MoU with VijaMetech Siemens Healthcare Ltd. and the Vietnam Japan Medical High-Tech Development JSC (VijaMetech JSC) have officially signed a memorandum of understanding (MoU) on promoting mutual cooperation.  The two have agreed to consider feasible business models for cooperation in order to develop oncology screening and early detection and treatment networks in Vietnam. Siemens Healthcare will provide a spectrum of solutions for Vietnam – Japan International K Hospital projects, ranging from medical imaging and laboratory diagnostics and CT simulation in radiation therapy to value added management services such as consulting and healthcare IT services, as well as state-of-the-art technologies for therapeutic and molecular diagnostics. Siemens Healthcare is committed to supporting VijaMetech in technology transfer, strategic advisory, clinical and workflow advisory, education and training, clinical studies, marketing, and the development of an oncology center network. The cooperation with Siemens Healthcare will enable Vietnam – Japan International K Hospital to be one of the leading centers in the screening and early detection and treatment of oncology in Vietnam and help make VijaMetech’s plans become a reality. According to the World Health Organization, cancer is the second leading cause of death globally and was responsible for 8.8 million fatalities in 2015. Worldwide, nearly one in six deaths is due to cancer, with more than 10 million new cases each year. In Vietnam, it is estimated that there are around 100,000 to 150,000 new cancer cases and roughly 75,000 cancer deaths each year. The Vietnam – Japan International K Hospital is a 100 per cent locally-owned oncology hospital that operates in close cooperation with the oncology hospital network in Vietnam as well as worldwide. The hospital is financed by the VijaMetech JSC and forms part of its ambitious plans to develop a network of oncology screening, diagnostics, and treatment centers around Vietnam under international standards.  The hospital is invested to meet internationally quality requirements and is equipped with a range of the most advanced equipment in order to support diagnostic, treatment and care for cancer patients as well as to support highly efficient research and training in oncology. Quang Ninh strives to become leading tourism centre in the region In recent years, the number of domestic and international visitors to Quang Ninh province has strongly increased, affirming the position as well as rapid and stable development of the local tourism sector. With the investment in modern infrastructure and gradual improvement of the quality of services, Quang Ninh is aiming to become a leading international tourism centre in the country and in Southeast Asia region. Determining tourism as a spearhead economic sector, in recent years, Quang Ninh agencies have drastically directed and implemented the investment in a series of traffic works and tourism infrastructure, of which numerous completed important projects have brought practical effects, such as the upgrade of the Uong Bi - Ha Long section of the Highway 18, bringing electricity to Co To island and the island communes in Van Don district, and telecommunication infrastructure providing mobile and in-vehicle coverage to all tourism destinations. In addition, a number of strategic projects have been accelerated including Ha Long – Hai Phong expressway which will shorten the travel time from Ha Long to Hanoi to 1.5 hours by car; and Van Don International Airport and the Ha Long - Van Don expressway which are expected to be completed in 2018, becoming an important premise to bring into full play the strengths of the Van Don Special Economic Zone. Ha Long – Mong Cai expressway will continue to be built to connect Quang Ninh province with Guangxi province of China and ASEAN countries; while the Ha Long international sea port will create favourable conditions for visitors to visit Ha Long and Bai Tu Long bays by five-star cruise. Notably, after the master plan for tourism development to 2020, with orientation to 2030 was released, Quang Ninh has attracted a series of strategic projects with numerous high-profile investors such as BIM Group, Vingroup, Sun Group, MyWay, Tuan Chau and FLC. The new tourism products of these corporations have contributed to positively changing the province’s tourism, increasing the number of domestic and foreign visitors. Rio Kobayakawa, a tourist from Japan said: “Ha Long bay is very wonderful. I have traveled extensively, but I see that rare places have been endowed with many beauties as here. Its wild beauty makes me really want to explore. I am very impressed with the local specialities.” Quang Ninh province has a number of resorts which have been synchronously invested including the Ha Long Ocean Park complex, the largest amusement park in Southeast Asia, Halong Marina urban area, Vinpearl Ha Long Bay Resort, Vincom Ha Long Trade Centre, and Vinhomes Dragon Bay sea urban area. Chairman of Quang Ninh provincial People’s Committee Nguyen Duc Long noted that “the success of strategic investors in the locality will create the spread and attractiveness for other investors, making a new investment flow to the province. Their success is the province’s success”. In addition, Vietnamese investors, Quang Ninh attracted the projects worth billions of US dollars from famous international corporations from the US, Chinese Taipei, Thailand and United Arab Emirates. For example, international hotel management groups Wyndham and Starwood have built five-star hotels, Wyndham Legend (with 217 rooms) and Sheraton Ha Long Bay (with 330 rooms and apartments). The joint venture between Amata (Thailand) and Tuan Chau Groups is promoting the investment of a high-tech industrial urban area covering over 7,800 hectares, with a total investment of nearly US$2 billion. ISC Corporation from the US also planned to invest around US$7.5 billion in an entertainment complex (including casino) in Tuan Chau island (Ha Long city). The US$1 billion ecological urban area project by Lucky Cement Corporation from Chinese Taipei, with total area of 516 hectares in Hoang Tan island, Quang Yen town, is being planned. “The gather of major brands will help Ha Long improve its position on the map of domestic and international tourism. Luxury travellers around the world will see that, in addition to visiting the Ha Long Bay, there are many other options of resorts and entertainment.”, said Huong Tran Kieu Dung, General Director of FLC Group. According to a report by Quang Ninh Tourism Department, tourists from major markets, including the US, Thailand, Japan, Australia, China and Europe, to stay in the province have seen a strong growth. Since 2001, the number of visitors to Quang Ninh has increased 4.2 times, with total revenue from tourism has increased 4.8 times. In recent years, the growth of revenue is higher than the increase of the number of visitors, which has affirmed that the quality of tourism activities and services in Quang Ninh has markedly improved markedly. Director of Quang Ninh Tourism Department Pham Ngoc Thuy said: “New investment projects have contributed to changing the appearance of the urban area and tourism centres in the province, helping to boost the tourism development towards modernisation and professionalisation as well as enhance the competitiveness and create new impression for Ha Long – Quang Ninh tourism brand. The attraction of investment for tourism development has positively changed, contributing to improving the quality of services and effectively exploiting the key tourism centres to meet the increasing demands of both domestic and foreign visitors.” Quang Ninh has formed four tourist spaces with typical products including Ha Long city associated with Ha Long bay, Mong Cai – Tra Co associated with border tourism, Van Don – Coto associated with sea and island tourism and a high quality resort with casino, Uong Bi – Dong Trieu – Quang Yen area with a cultural and spiritual tourism and community and trade village tourism. The province has also developed numerous new tourism products which have attracted a large number of visitors such as Yen Duc trade village; Binh Lieu ecological and experience tourism; exploring Ha Long bay by kayak and seaplane; Vingroup’s shopping and entertainment centre; Marina Plaza; luxury restaurants, hotels and ships; Ha Long park; Sa Vi border information cluster; Tra Co - Binh Ngoc junction travel icon (Mong Cai city). Changes in entrance and exit procedures have also contributed to increase the number of visitors to Quang Ninh. The reception of Chinese tourists using the passport to visit Mong Cai city has gained the effectiveness, connecting tours to destinations in the city’s centre and Tra Co and Sa Si tourist area. Mong Cai city, in collaboration with China’s bordering town Dongxing, launched a tour through Ha Long and Mong Cai to Dongxiang and Guilin (China) as well as pilot the self-drive tours from Mong Cai to Dongxing. So far, after six months of pilot operations, there have been around 110 vehicles carrying out entry and exit procedures at the Mong Cai international border gate, of which 70 from China and 40 from Vietnam. Chairwoman of Mong Cai city People’s Committee Vu Van Kinh said: “The city is effectively implementing the project to improve the quality of tourism services and build Mong Cai tourism brand as friendly, convenient and reliable. In order to attract more European visitors, the city has focused on building and developing two lines of products including resort and ecological tourism. Therefore, Nhan Dao ecotourism farm is expected to put into operation in Hai Xuan commune by the end of 2017.’ Quang Ninh tourism sector strives to welcome 15-16 million tourists, including seven million international visitors, earning around VND30 trillion – VND40 trillion by 2020; as well as receive 23 million tourists, including 10 million foreigners, earning a total revenue of VND130 trillion and creating jobs for 120,000 local people. Vice Chairwoman of the provincial People’s Committee Vu Thi Thu shared: “Quang Ninh tourism sector is determined to become a spearhead economic sector with high professionalism and synchronous and modern infrastructure as well as high-quality tourism products imbued with local cultural identities, creating a driving force for the socio-economic development. The province is expected to become one of the leading localities with developed tourism industry in the country and the Southeast Asia.” Tourism space of the province has been expanded through the enhancement of tourism promotion and international cooperation. Numerous festivals, including the annual Ha Long Carnival, Cherry Blossom festival, and Yen Tu golden apricot festival, have introduced the land, people and culture of Quang Ninh province to domestic and foreign visitors. Minister: Property market still awash with problems The property market is still rife with risks, Minister of Construction Pham Hong Ha told the 2017 Vietnam Real Estate Forum in Hanoi yesterday. Ha’s view is based on signs of the market such as limited funding sources which are mostly mobilized from credit institutions, and small equity of project investors. Some big investors use capital borrowed from their subsidiaries and affiliates, which makes it hard to supervise credit for property projects. Besides, the structure of the market has been gradually adjusted, but not well-balanced yet. There is abundant supply of high-end homes whereas budget and low-cost commercial homes are in short supply. Many enterprises have focused on investing in high-end residential projects but given little care to the segments of social and low-cost commercial houses and those for rent. Having a similar viewpoint, Nguyen Quoc Hung, head of the Credit Department at the State Bank of Vietnam, said the property market had an abundance of risks. There has existed an imbalance among housing segments. Regarding transparency in the property market, Ha said the implementation of the decree on the building, management and use of the information system for the housing market was going slowly. In addition to limited capabilities of some investors, management agencies have not improved and issued regulations required to tightly govern the property market. Some projects do not fit the market’s needs, and limited management capabilities have led to slow implementation and a waste of land. Despite such problems, according to Ha, the market will not see any extreme volatility next year. The Ministry of Construction is working with relevant units and experts to draw up a scheme to evaluate the market, give mid-term forecasts and propose mechanisms to stimulate a stable and healthy development of the market. The scheme will be presented to the Government in the coming time. Vietnam imports large amount of steel from India Vietnam had imported 1.24 million tons of steel products from India in the year to October, a hefty rise of 673% compared to the same period last year. Data of the General Department of Vietnam Customs shows the country imported roughly 1.2 million tons of steel products worth US$792 million from foreign markets last month, increasing 13.1% and 17.5% respectively over the previous month. The steel import volume in the first 10 months of the year totaled 12.7 million tons worth US$7.48 billion, down 17.5% in volume and up 13.6% in value over the year-ago period. In particular, Vietnam purchased 1.24 million tons of steel worth US$652 million from India in the period, up 673% and 614% year-on-year respectively. India offered the lowest price among Vietnam’s main steel suppliers, according to the customs agency. China remained the biggest steel exporter to Vietnam though its steel exports to the country fell. The northern neighbor shipped 6.11 million tons worth US$3.49 billion to Vietnam in the year to October, down 32.5% and 4.3% respectively. Japan came second with 1.85 million tons worth US$1.12 billion, down 17.7% in volume and up 13.2% in value. Vietnam needs institutional reform to achieve stronger growth Vietnam needs to step up its institutional reform in order to achieve stronger economic growth and ensure the quality of growth as well, heard a seminar in Hanoi City on November 15, Tien Phong newspaper reports. The seminar was held to identify driving forces behind the nation’s future economic growth. Nguyen Quang Thuan, president of the Vietnam Academy of Social Sciences, the organizer of the seminar, said economic growth depending on old resources is no longer appropriate, and even entails risks. New driving forces for economic growth should be able to improve productivity in a way that enhances growth in terms of quantity and quality. The seminar aims to assess the true picture of growth in the past period, he noted. Deputy Prime Minister Vuong Dinh Hue told participants at the seminar that fast and sustainable growth is a goal included in the 12th National Party Congress. “We must grow faster to shorten the gap between Vietnam and other countries so that (our country) will not be left behind any more. At the same time, it is vital to develop economic, social and environmental pillars in a sustainable manner,” the Government leader stressed. The Fourth Industrial Revolution opens up new opportunities but Vietnam may be left far behind if the country does not make good use of them, he added. He underlined the importance of changing the growth model and restructuring the economy. “The localization rate of Samsung is 57% – the growth of the group creates momentum for many provinces across the country. The view of the Party is that internal forces are decisive while external forces are important,” stated the Deputy Prime Minister. Tran Dinh Thien, director of the Vietnam Economics Research Institute, said economic growth in the third quarter of this year is incredible, as it surged from 5.24% in quarter one to 6.4% in quarter three. Meanwhile, disbursements in public investment projects remain slow, and growth in the sectors like the oil and gas industry has slowed sharply. He added the growth rate in the past five years has seen a shift in momentum. The private sector has heavily invested in business so far this year. The agriculture sector has grown dramatically over 2016 while the services sector has also followed suit. Economic expert Tran Du Lich said the country is having difficulty achieving stronger growth and maintaining the quality of growth. To fulfill the targets, he stressed, the Government should proceed with institutional reform. Lich said that it is necessary to pay special attention to major economic zones associated with the development of urban economy. They would serve as an impetus for growth in the coming time, he added. EVFTA expected to boost Vietnam footwear exports to EU The EU-Vietnam Free Trade Agreement (EVFTA) is expected to boost Vietnamese leather and footwear exports to the European Union market, heard a conference organized by the European Trade Policy and Investment Support Project (EU-Mutrap) in Hanoi on November 15. Vietnam fetched US$16 billion from leather and footwear exports in 2016, the fourth biggest export earner after phones and phone parts, textiles and garments, and computers, and electronics, Vietnamplus news website reports. Data of the Vietnam Leather and Footwear Association (Lefaso) shows that in 2016, Vietnam was the third largest footwear manufacturer in the world after China and India. As of late 2016, two years since Vietnam enjoyed the EU’s generalized system of preferences (GSP) with tariffs slashed from 13-14% to 3-4%, the country’s leather and footwear exports to the EU hit nearly US$5 billion, making the EU the second largest leather and footwear importer of Vietnam after the U.S. Phan Thi Thanh Xuan, vice chairwoman and general secretary of Lefaso, said when EVFTA goes into force, it would boost Vietnamese leather and footwear exports to the EU. However, domestic leather and footwear manufacturers and exporters will also face several challenges. To meet the EU’s requirements, Vietnamese businesses will have to improve technologies and manufacturing processes to ensure high quality. Besides, most leather and footwear manufacturers in Vietnam are foreign-invested. Therefore, domestically owned firms will have to improve competitiveness and increase market share. According to Trinh Thu Hien, director of the origin of goods division under the Ministry of Industry and Trade’s Export-Import Department, to make the most of EVFTA, businesses would have to comply with EVFTA’s rules of origin. “Businesses will not be able to enjoy tariff cuts to 0% if they fail to meet EVFTA’s rules of origin,” Hien said. Professor Sanggeeta Khorana, an expert from EU-Mutrap, said when Vietnamese businesses are subject to the EU’s barriers and anti-dumping measures, they should provide sufficient evidence of the absence of subsidy. According to Sanggeeta Khorana, an anti-dumping investigation can be initiated whenever the Directorate General for Trade of the European Commission decides that data are sufficient to launch an official investigation. Foreign traders look to import more Vietnam farm produce Traders from France, Japan, Spain, China, and South Korea, among others, expressed interest in importing Vietnamese farm produce at the Vietnam International Food Exhibition 2017 (Vietnam Foodexpo 2017) that kicked off in HCMC on November 15. French Ambassador to Vietnam Bertrand Lortholary said France has imported Vietnamese seafood and herbs that are very much sought after in France. The country is seeking to import other agricultural products like coffee and cocoa from Vietnam. In addition to fresh products, French companies will import Vietnamese materials to produce high-quality food. Marou chocolate, which is made from Vietnamese cocoa, has become popular in France. On the occasion of Vietnam Foodexpo 2017, French leaders, companies and associations have worked with Vietnamese partners to boost imports of Vietnamese farm produce, according to Bruno Dupont, chairman of the French Fruit Producers Association. Meanwhile, Hidekatsu Ishikawa, director of Tokyo-based Vient Co. Ltd., said his company imported 2,000 tons of banana from Vietnam in 2016, and 50 tons of Vietnamese mango and red dragon fruit in the year to date, adding that the company has plans to import cashew nuts from Vietnam. At the expo, foreign enterprises also introduced their products to Vietnamese consumers. Particularly, the French pavilion displayed French vegetables, ham and dairy products. Data of the French Consulate General in HCMC shows that Vietnam imports about 10 tons of French ham a year. The country also imported 3,000 tons of French apples between August 2016 and March 2017. Jointly organized by the Ministry of Industry and Trade, the Vietnam Trade Promotion Agency and the Ministry of Agriculture and Rural Development at the Saigon Exhibition & Convention Center (SECC) in HCMC’s District 7 from November 15 to 18, Vietnam Foodexpo 2017 features 600 booths of 450 foreign and domestic businesses. On display are a variety of products like vegetables, fruits, seafood, beverages, spices, confectionary, dairy products, canned food, and machinery for the food industry. According to French Consul General in HCMC Vincent Floreani, France is a special participant at Vietnam Foodexpo 2017, with a 360-square-meter pavilion introducing French cuisine, agricultural products and food processing machines. Startups have strong demand for recruiting fresh graduates Fresh graduates often face challenges to land a job as they lack necessary skills and experiences, but startups are keen to recruit them, according to a report of Navigos Group, a company specializing in professional recruiting services. In the report on the recruitment of startups released on Monday, the company said the startup environment opens up many employment opportunities for fresh graduates in the coming time. As high as 54% of companies joining the survey have the demand for recruiting employees in the next three months while around 17% of them plan to add more staff in the next three to six months. Besides, about 11% intend to follow suit in the next six to twelve months. Notably, some companies say they are always in dire need of new staff. The report reveals work experience is not a decisive factor for employing new graduates. Around 35% of companies say they need candidates who just leave university while 12% say they do not care about the previous work experience of job applicants. According to Navigos Group, fresh graduates are often enthusiastic and motivated candidates who are able to adapt to the fast changing startup environment. In addition, recruiting new graduates may suit their budgets. Therefore, such jobseekers have to accept relatively low salaries. The survey finds salary is the biggest obstacle to the recruitment of 49% of enterprises, as their limited salary budgets bar them from luring suitable candidates. Around 18% of startups also have difficulty looking for a job owing to their lack of experience. As startups find themselves tough to compete with large companies in terms of wage they offer their employees other attractive benefits. The survey indicates a whopping 59% of startups reveal what lures candidates into working for their companies is thanks to job positions suitable to candidates and how candidates are treated and recognized, in addition to development opportunities and the interesting working environment. Training centre powered by Siemens technologies debuts      The Digital Process Industries Training Centre debuted has made presence in Viet Nam to meet increasing education requirements for digital technologies, especially in the context of 4.0 Industry Revolution. The centre was launched in Ha Noi on Thursday. Its establishment is the result of the co-operation between Polyco Group, East Asia University of Technology and Siemens in a joint effort to equip present and future Vietnamese engineers with knowledge, skills and latest technologies for the digital manufacturing age. The centre, which is located at Polyco Group’s headquarters in Ha Noi, has been equipped with Siemens automation and digitalisation technologies. It will enable students and engineers to learn and practice directly through actual demonstration, which include products from field level to management level applied in industrial production in general and in the food and beverage industry in particular.  In addition, learners can visualise the five steps in the digitalisation value chain for process industries, namely product design, process and plant design, engineering and commissioning, operation, and services. Pham Thai Lai, president and CEO of Siemens Vietnam, said he believed the centre will remarkably enhance human capacity, not only for Polyco group but also for the whole food and beverage industry in Viet Nam to face challenges in the present and the future.  Korea-Vietnam Incubator Park draws only five companies after two years Korea Vietnam Incubator Park (KVIP) in the Mekong Delta city of Can Tho has managed to attract only five enterprises since its establishment in November 2015, though the park can accommodate up to 40, said its director Pham Minh Quoc. The director said at KVIP’s two-year anniversary on November 14 that five companies namely Nhat Viet High Technology Application Research Co Ltd, Hoang Thang Co Ltd, Pham Nghia T&N Co Ltd, and Calevy Rice Milk JSC have set up shop at KVIP so far. Only Pham Nghia T&N Co Ltd is qualified to leave the incubator to establish production facilities outside, while others have yet to achieve “graduation” qualifications, according to Quoc. Meanwhile, KVIP can support 40 enterprises. As such, the current number of new businesses is quite modest. At the anniversary on November 14, the director said, KVIP has teamed up with Vietnamese and Korean experts to purchase equipment worth over US$2 million in order to facilitate startups. In order to bolster economic growth in Can Tho in the coming time, the city’s chairman Vo Thanh Thong asked KVIP to fulfill three key targets to become a key driving force behind the city’s business startup program. First, KVIP should become the place to support many creative enterprises for the city, and the Mekong Delta region as a whole, as the municipal government is striving to have around 1,200-1,300 startups a year. Second, KVIP should create as many as creative products as possible. Finally, KVIP should help lure investors at home and abroad into the city in a bid to promote the local socio-economic growth. KVIP has a total investment of US$21.13 million, with US$17.7 million of non-refundable aid from the South Korean government and the remainder from the Vietnamese government. Vietnam’s energy sector faces tough competition Vietnam’s energy sector is facing tough competition with many countries in Asia and America since most energy giants have scaled down investment due to the low oil price, said Mark Edmunds, Southeast Asia Energy & Resources Industry Leader and Asia Pacific Oil & Gas Sector Leader for Deloitte. Speaking to the Daily, Edmunds said many countries are struggling to attract foreign investors in the sector as the oil price has remained low over the past four years. Even big companies like ExxonMobil, BP and Shell have become choosy before entering a market. To attract investors, authorities should consider important factors such as tax policies, business environment and administrative papers. With less capital moving around, companies are looking for shorter investment cycles to recover cash quickly. Aside from Southeast Asia, Mexico is emerging as a new investment destination for oil giants. It has opened its market after prohibiting foreign investment for nearly 80 years. Regarding power generation in Vietnam, Edmunds said the nation has seen many coal fired and hydropower plants. However, the Government is shifting to renewable energy sources such as solar, wind and natural gas. The U.S. has improved air quality significantly thanks to the use of gas-fired electricity, while China and India are also following suit. This move would be good for Vietnam as well as a more balanced use of energy sources will help protect the environment. At present, Vietnam still imports natural gas for domestic use. However, as the demand for natural gas continues to rise, the nation is expected to become a natural gas exporter in the future. The expert said Vietnam is going on the right way for giving incentives to attract foreign investors into the energy sector. Earlier, many large enterprises have invested in Vietnam because of the qualified workforce and appropriate investment policies. Under the current circumstances, the nation should invest in technology to develop its natural resources properly, and protect its natural gas reserves and the environment, Edmunds added. Taxman wants sweeping power to fight tax violations The General Department of Taxation has proposed new regulations that give sweeping power to tax authorities to fight tax violations, including putting violators in custody or filing criminal charges against them. In the draft law on tax management sent to the Government, the tax authority plans to set up a force with investigative power, build a database and take professional measures to prevent violations against the tax law. Besides, the tax authority wants to have authority to ask related agencies, organizations and individuals to provide information and documents to facilitate investigations, as well as seal goods, storehouses, documents, and detain violators in case there is proof of violations. If serious violations subject to criminal charges are detected, the taxman can initiate prosecution and undertake investigations in accordance with the criminal procedure code and the law on organization of criminal investigation bodies.  According to the tax authority, those regulations are proposed to deter and prevent tax evasion and fraud. As explained by the tax department, tax investigations are by nature prosecutions against taxpayers who intentionally decline to fulfill their tax obligations. The taxman, according to the proposed regulations, can launch investigations without prior notice, and investigated tax payers will have lawyers or representatives during the process. Many countries have already assigned tax investigations to their tax bodies. Once violations need to be prosecuted, tax authorities will take measures to collect evaded taxes, and at the same time hand over the cases to competent authorities in compliance with the criminal proceedings law. More than 80 countries, including some ASEAN countries, have set up tax investigation bodies. The tax management body in Vietnam consists of both tax and customs agencies, with the customs having been given power to launch investigations in its area but the tax authority having no such power. HCM City’s ornamental fish exports near US$18 mil in 10 months Ho Chi Minh City exported 16.2 million ornamental fish, earning nearly US$18 million in nine months leading up to later October, showing respective increases of 15% and 21% against the same period last year according to the municipal Department of Agriculture and Rural Development. Ornamental fish are exported to more than 50 countries and territories with the EU taking the top spot among importers with 54%, trailed by Asia (30%) and America (12%). HCM City aims to produce between 140-150 million ornamental fish this year, a year-on-year rise of 10-15%, and export around 18-20 million fish with a value of US$20-25 million,15-20% higher than one year earlier. The figures are expected to reach 150-180 million in fish output, and 40-50 million in fish exports by 2020. The ornamental fish market is forecast to continue growing strongly as most businesses in the city are in need of strengthened links in production and domestic and foreign market expansion. Cuong Ca Canh Vina Fish Farm Company in Binh Chanh District currently supplies more than 30 kinds of ornamental fish for both domestic and foreign markets. The company’s director Truong Trung Cuong said the major focus will be on potential markets in the EU and Asia to improve added value as the two markets have sustained a high rate of yearly growth.  In addition, trade promotion measures are being intensified to bolster exports and domestic consumption. HCM City set for 2 new Japanese restaurants People who like Japanese food have two more options in HCM City with Redsun-ITI Corporation this week opening restaurants in Phú Nhuận and Bình Thạnh districts. Tasaki BBQ in Phú Nhuận, the chain’s fourth outlet in the city, has hundreds of grilled beef, pork and seafood dishes and other traditional Japanese ones. The restaurant also serves Japan’s famous Wagyu beef. Sushi Kei, which opens on Saturday (November 18), will be the third in the city and sushi will be its speciality. Redsun-ITI has more than 12 restaurant brands, including King BBQ, Seoul Garden and ThaiExpress. Toyota Vios leads bestselling car list in October      Viet Nam in October witnessed many changes in the group of bestselling cars, according to report from the Vietnam Automobile Manufacturers’ Association (VAMA). Small sedan Toyota Vios sales were recorded at 1,916 units for the month, outperforming all other models and continuing to maintain its leading position on the top 10 list. If Vios has been a familiar name on the list for many months, pickup Chevrolet Colorado from automaker GM entered the bestselling car category for the first time, although its sales were not very impressive, with 338 cars delivered to consumers. Chevrolet Colorado’s sales are still far behind rival Ford Ranger, which ranks the second on the list. GM recently decided to sell 100 special edition Colorado cars to Viet Nam to celebrate the 100th anniversary of its trucks and pickups production under the Chevrolet brand. This limited edition production by GM Global was offered to the Vietnamese market as a priority, just behind Thailand. October also saw the absence of the five-seat SUV Honda CR-V after Honda Vietnam sold out the vehicle by offering a discount of hundreds of millions of dong in September before rolling out the new-general version this month. Meanwhile, domestic carmaker Truong Hai Auto Corporation (Thaco) is hoping to sell out current model Mazda CX-5 to pave the way for the new-generation and modern model of CX-5 in the near future. Customers of current model Mazda CX-5 enjoyed discounts from automaker Thaco and its agents nationwide, due to which the model jumped from the seventh position in September to third on the list in October. The change in positions of car models on the list is primarily due to discounts and promotional programmes from automakers. In the remaining months of this year, it is predicted the automakers will continue their promotions, therefore the list of top 10 bestselling cars will see changes.  Chinese fakes hurting domestic products in Vietnamese market Vietnamese businesses say copycats from China are costing them hundreds of thousands of dollars each year. Clothing dyed with carcinogens. Chemical-laden fruit. Toothpaste tainted with an ingredient used in anti-freeze. Tires missing a key safety component. Many Vietnamese shoppers are worried about the safety of Chinese goods, and are trying to avoid products from their northern neighbor at all costs. The trouble is, that may not be possible. In addition to Chinese products slapped with counterfeit German, French and Italian labels, copycats of many Vietnamese gadgets smuggled into Vietnam from China are believed to be flooding both modern stores and traditional markets nationwide. Up to 70% of fruit and vegetables sold in some traditional markets in Saigon come from China, but many of them bear Vietnamese labels, according to surveys conducted by local media. "Public doubt of food safety is always cast over Chinese products," the World Bank said in a report on food safety in Vietnam published this year. "However, this is not well backed by the available data and test information.” The bank explained that supplies from China are not officially recorded, so tracing vegetables when samples are found to contain hazardous substances is almost impossible. Given the situation, shoppers often have no choice but to listen to friends and family or use their own instincts and experiences in the hope of avoiding dangerous counterfeits. “Local consumers have grown increasingly wary of Chinese food, fruit, vegetables and garments," Nguyen Thu Huyen, a housewife in Hanoi, said. "We tell each other how to distinguish between Chinese and Vietnamese goods.”  “Chinese fruit has been boycotted,” she said while scanning a wide selection of oranges in the fresh produce aisle of a modern supermarket in Hanoi. Echoing Huyen, Nguyen Vu Le, a 30-year-old resident in Hanoi, said: “Vietnamese products, especially houseware, food and clothing, are now the number one choice for many consumers. They are of good quality and reasonably priced.” But an ongoing criminal probe into local silk firm Khaisilk begs otherwise. The renowned high-end Vietnamese brand with a history of over 30 years has admitted to placing "Made in Vietnam" tags with its logo on Chinese silk scarves.  To make matters worse, the scandal only broke when a business in Hanoi took to Facebook to complain about products it had bought from the brand saying they were actually made in China. Most garments with “Made-in Vietnam” labels available in the country are actually fake products smuggled from China, local media quoted Vu Duc Giang, chairman of the Vietnam Garment and Apparel Association,  as saying. Le Hong Son, a member of National Steering Committee 389, the government's anti-smuggling body, said: “Smugglers often bring their goods in from China, slap a ‘Made in Vietnam’ label on them and then sell the contraband to unsuspecting customers.” “Counterfeit products range from sweets and cosmetics to lightbulbs and clothes,” he added. The stigma attached to Chinese products has prompted many businesses to simply replace the tags with a more reputable country of origin.   Authorities in Vietnam uncovered nearly 90,000 cases of smuggling in the first half of this year, but were only able to take 1,200 of those cases to court, according to the committee. Vu Vinh Phu, chairman of the Hanoi Supermarket Association, said that widespread copycats in the domestic market has caused consumers to lose confidence in locally-made products. Agreeing with Phu, Vu Kim Hanh, head of the Center of Business Studies and Assistance, said many handicraft villages and businesses are facing bankruptcy due to the infiltration of Chinese duplicates. Local businesses have also complained that fake products are costing them hundreds of thousands of dollars each year in lost revenue. Experts said fake products are able to enter the country due to poor cooperation between border guards. More border controls are needed, but that poses a challenge because the border with China is long. Authorities need to stop fake goods from entering the country at the border, as it costs more to track them down in local markets, they said. While waiting for state agencies to get a grip of the situation, some companies have found ways of protecting themselves.  Nguyen Hong Nhung, the owner of a garment company in Hanoi, said the only real way to fight back against the duplicates is to keep improving her products. The life cycle of many fashion products is short, with new designs on the market within months, she said. “You innovate faster than the counterfeiters," Nhung said. "You shouldn’t hesitate to throw money at your designers. That’s how you play the game.” Businesses encouraged to seek trade opportunities in Middle East, Africa The Ministry of Industry and Trade (MOIT) will hold a seminar in Hanoi on November 21 to update domestic businesses with market information, trade policies, trading habits and import demands of Middle East and African countries. Main speakers will be representatives from the MOIT, and embassies of the UAE and South Africa in Hanoi. The Middle East and Africa are considered a potential market with high import demands without strict requirements on the quality of products, said a MOIT representative. Import value of the Middle East hit US$807 billion last year and is expected to rise to US$1,500 billion by 2020. Vietnam has potential to export rice, tea, coffee, pepper, natural rubber, cashew nuts, fruits, seafood, garment, footwear and handicraft products to the Middle East. According to MOIT’s statistics, import-export values between Vietnam and the Middle East have constantly increased in recent years, reaching US$10.887 billion last year, up 100% against 2011, of which Vietnam’s exports to the Middle East were valued at US$8.059 billion and imports were at US$2.828 billion. Meanwhile, trade turnover between Vietnam and African countries reached US$5.364 billion last year, including Vietnam's exports of US$2.762 billion and imports of US$2.602 billion. Punctuality rate of airlines hits 89.4 percent in October Domestic Vietnam Airlines, Vietjet Air, Jetstar Pacific and Vasco in October together operated 18,392 flights on time, accounting for 89.4 percent of the total flights, according to the Civil Aviation Administration of Vietnam (CAAV). National flag carrier, Vietnam Airlines, recorded a punctuality rate of 90.1 percent, or 9,141 flights, while the rate of low-cost Vietjet Air was 88.6 percent, or 6,559 flights, in the month. The on-time performance record of Jetstar Pacific was 84.9 percent and Vasco’s were 98.9 percent. The main cause of delays and cancellations was faults on the side of the airlines and late return of planes. Other reasons included airports’ limited infrastructure and services, flight management and operation, weather and technical issues, CAAV said. According to a new regulation issued by the Ministry of Transport which took effect on November 1, airlines must provide information on the status of the flight to the airport authority and enterprises that provide services on the delay or cancellation of the trip. In case of delay, an interruption of 15 minutes or more of the flight schedule, the carriers have to inform the passengers, explain the reason, inform them about the expected takeoff time and apologise the passengers. Drinks, meal and accommodation should be provided for the passengers if the flight delay is for more than two hours, three hours and six hours, respectively. For flights that are delayed for more than six hours beginning from 10pm to 7am the following day, accommodation or alternative arrangements must be arranged with the consent of the passengers.- JLL to manage Nine South Estates JLL has signed an agreement with VinaCapital and VinaLiving to provide Property and Asset Management Services at Nine South Estates.  Nine South Estates is located in Nha Be district, just 9 km from the center of Ho Chi Minh City and close to existing leisure, retail, healthcare, and education facilities. The project is scheduled for completion in the fourth quarter, with a mix of 381 riverfront villas and garden homes within a secure private and fully-equipped residential compound. It will also offer resort facilities, including a free-form swimming pool, a fitness center, meeting facilities, and a snack bar. “Nine South Estates is an exceptional villa development and we want to ensure residents feel comfortable and secure within this new environment, and after careful consideration we have decided to appoint JLL, the leader in property and asset management,” said Mr. Micheal Gammel, Deputy Managing Director of VinaCapital. “JLL is an experienced management company, and we believe they understand the high level of service required. In addition, JLL is a strong international property management brand and our buyers, many of whom are from overseas, will recognize the difference and after-sales service that we will provide.” Mr. Stephen Wyatt, Country Head of JLL in Vietnam, said the company is pleased to have been awarded the contract to manage the asset. “More than just a home, Nine South Estates offers a world-class lifestyle within a community that shares the same values as you,” he said. VinaLiving is Vietnam’s first lifestyle and tailored-living brand that caters to the new generation of Vietnamese homeowners. The VinaLiving collection of properties carefully delivers customized living environments across a range of developments situated in premium locations. Each VinaLiving project is conceived with the aspirations and lifestyles of its prospective homeowners in mind. JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, it helps real estate owners, occupiers, and investors achieve their business ambitions. It has over 50 years of experience in Asia-Pacific, with 36,900 employees operating in 96 offices in 16 countries across the region. The firm won the “World’s Best” and “Best in Asia Pacific” International Property Consultancy at the International Property Awards in 2016 and was named the number one real estate investment advisory firm in Asia-Pacific for the sixth consecutive year by Real Capital Analytics.  Province implements solutions to export star-apples to US      The Mekong Delta province of Tien Giang will implement solutions to be able to export star-apples to the United States in December, the People’s Committee of Tien Giang said. At a meeting on Tuesday at the Tien Giang Department of Agriculture and Rural Department, the People’s Committee, the department and enterprises discussed solutions on producing star-apples for export to the US. After the US Department of Agriculture officially licensed Vietnamese star-apples to be imported into the country in September 2017, Tien Giang has started to complete procedures on exporting Lo Ren star-apples to the US, according to the department. In addition, Tien Giang has also implemented technical solutions to improve output and quality of star-apple gardens. The province has some 460ha of star-apples, declining by six times compared with the previous five years. Therefore, to be able to export the first batch of star-apples to the US market in mid-December 2017, Pham Anh Tuan, deputy chairman of the provincial People’s Committee, asked the department to call on farmers to cooperate with enterprises in pilot production of star-apples on a total area of 43ha in the communes of Huu Dao, My Long, Long Hung and Ban Long in Chau Thanh District. At present, farmers have applied strictly advanced cultivation techniques and an improved irrigation system, used reasonably good fertilisers and pesticides, and obtained the production registration certificate according to Global GAP or Viet GAP. Trading enterprises must have packing and pre-processing houses and the post-harvest preservation process which are necessary to meet the requirements of food hygiene and safety. In particular, businesses need to cooperate with farmers to meet US standards to protect the reputation of Vietnamese fruits. Tuan also asked the department and local authorities to actively support enterprises in terms of legal and administrative procedures and techniques as a requirement for having the first batches of provincial star-apples exported to the US.  FLC plans roadshow in South Korea      Property developer, FLC Group, will organise a large-scale roadshow and seminar in South Korea. The show on November 20 is aimed at informing participants about investment opportunities in the hospitality real estate sector as Viet Nam has been named Asia-Pacific’s premier golf tourism destination 2017. The roadshow is part of a series of events to advertise Vietnamese resort properties and golf courses to foreign countries, as well as to expand FLC’s partners in South Korea. The event is expected to attract more than 400 investors, financial organisations, investment funds and estate and tourism firms in Viet Nam, South Korea and Asia. FLC said the seminar would focus on the latest trends in the resort property and golf course market in Viet Nam. In addition, this would be an opportunity for South Korean suppliers in the areas of tourism, construction and hi-tech agriculture to search for co-operation potential with prestigious firms in Viet Nam. The event follows the success of FLC’s roadshows and seminars in Singapore and Japan this year. It would be a pre-condition for the group to establish representative offices in foreign countries. FLC established its first representative office in Japan earlier this month.  HN prepares goods worth $1.14 billion for Tet      Ha Noi’s Department of Industry and Trade is partnering with firms and business households to prepare goods for the upcoming Tet (Lunar New Year) holiday, worth VND26 trillion (US$1.14 billion) in total. This was a rise of 10 per cent over last year’s plan due to an anticipated increase in consumption, the department said. Le Hong Thang, the department’s Director, said the department would keep a close watch on market supply and demand with a focus on essential items such as food products. Thang also asked district authorities to create conditions for firms and business households to accumulate goods for the Tet holiday and urged firms to actively study market demand and implement plans for production and goods purchase to ensure adequate supply and prevent scarcity of goods and unreasonable increase in prices. Demand for goods in the months ahead of Tet (from January 1, 2018 to February 28, 2018) is estimated to be 10-15 per cent higher than other months, the department said. The volume of goods for the Tet holiday included 193,600 tonnes of rice, 50,000 tonnes of pork, 14,000 tonnes of chicken meet and 13,800 tonnes of beef, as well as 200 eggs, 220,000 tonnes of vegetables, 12,000 processed food products and 12,000 fishery products, along with 3,500 tonnes of dry agricultural products, 3,000 tonnes of confectionary products, 200 million litres of alcoholic and beverage products and 120,000cu.m of petrol and oil.  Ministry proposes to tightly supervise Sabeco stock transactions The Ministry of Industry and Trade has proposed the Ministry of Public Security, State Securities Commission of Vietnam and HCMC Stock Exchange to keep a close eye on SBA stock transactions of Saigon Beer Alcohol Beverage Corporation (Sabeco).  In an announcement yesterday, the ministry said that the move aimed to spot and prevent unusual transactions, ensuring the market to operate stably and transparently until December 31 when state capital withdrawal from Sabeco will start. At present, the ministry is rushing to prepare for the capital withdrawal. According to the ministry’s project, Sabeco shares will be offered for sale to eligible domestic and foreign individuals and organizations. That will be similar to the way which State Capital Investment Corporation has sold state shares at Vietnam Dairy Products Joint Stock Company (Vinamilk). The value of Sabeco share sale is forecast to reach tens of thousands of billions of Vietnamese dong. Last year, the corporation’s revenue reached VND30,666 billion (US$1.35 billion), which is 2.5 time higher than that of Hanoi Beer Alcohol and Beverage Corporation (Habeco). After tax profit of Sabeco was VND4,655 billion ($205 million), up 33 percent over 2015. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET