BUSINESS IN BRIEF 13/4 Shrimp exports see bright prospect this year   Shrimp breeders enjoyed a bumper crop and high prices in the first quarter of this year as a result of favourable weather, growing market demands and stable global market prices, which have facilitated domestic production and exports. The country’s seafood exports are estimated at 441,500 tons valued at US$1.67 billion in the first quarter of this year, up 8.73% in volume and 11.2% in value against the same period last year, of which shrimp exports ranked second in terms of volume but first in value. The EU, the US, Japan, China, the Republic of Korea, Australia, Canada, ASEAN, Taiwan, and the Switzerland were top ten importers, which accounted for 88.6% of Vietnam’s total shrimp export value. All of these markets, except Japan, obtained a positive growth with Australia seeing the highest growth of 76.2%. The EU, Japan and China were the three largest consumers of Vietnamese shrimps late last year, but, the placed orders have changed with the US rising to the second place, followed by Japan and China. The EU remained the biggest importer, making up 18.6% of the country’s total shrimp exports with US$81.9 million in the first two months of this year (up 11% over the same period last year). Being considered the most dynamic market of Vietnamese shrimps in 2017, exports to the EU have further maintained an upward trend this year. Currently, shrimp exports to the market enjoy many advantages as Indian shrimps known as its key competitor are loosing favour due to overuse of antibiotics and facing threats of an import ban. As a result, Vietnamese products are chosen to replace Indian shrimp. Besides, Vietnamese products are enjoying the Generalised Scheme of Preferences (GSP) tariff from the EU with 4.2% for frozen shrimp and 7% for frozen processed shrimp. Meanwhile, two other big competitors - Thailand and China do not get the EU’s GSP. Particularly, the Vietnam - EU Free Trade Agreement (EVFTA) which is coming into force will create more opportunities for Vietnam to boost shrimp exports to the market. Shrimp exports to the US show a signs of recovery after constant decline last year. Exports to the market rose 6.6% to more than US$75.07 million in the first two months of this year. The growth helps the US rise from the fourth last year to the second place among world leading importers. Exports to the country tend to inch up thanks to good consumption, increasing consumers’ trust and positive economic prospect. Japan is the third largest consumer of Vietnamese shrimp, accounting for 15.5% of the country’s total exports with US$68.2 million in two months of 2018, down 15.8%. Its consumption demand is highest among key importers. Domestic exporters have improved product quality and processing methods to attract more Japanese customers. In the same period, Australia imported US$16.6 million worth of  Vietnamese shrimp products. With high import demands, Vietnam has seen excellent prospect to increase shrimp exports to the market, especially with Australian experts’ positive evaluation of product quality after their recent working visit to Vietnam. Food producer KIDO targets 43% increase in profit     Foods and flavours producer KIDO Group (KDC) plans to earn VND800 billion (US$35.1 million) in pre-tax profit in 2018, up 43 per cent year-on-year, the group has announced. At a meeting held on April 6, KIDO Group, listed on Ho Chi Minh Stock Exchange under the code KDC, revealed that it targeted a revenue of VND12 trillion in 2018, up 71 per cent compared to last year. The company also plans to pay cash dividend to shareholders at the rate of 16 per cent in 2018. Meanwhile, the group’s Board of Directors submitted to the shareholders a plan to increase the ownership of foreign investors in the company to 100 per cent, while preparing for the necessary procedures to adjust the company’s business lines if these are restricted to the ownership ratio of foreign investors. KIDO Group recorded a revenue of VND7 trillion in 2017, more than three times the figure in 2016. It’s pre-tax profit in 2017 reached VND561 billion, while post-tax profit touched VND440 billion. As of December 31, 2017, the total assets of the group reached VND11.3 trillion, an increase of VND1.9 billion compared to the beginning of the year. Total debt was estimated at nearly VND3.5 trillion, up by VND631 billion compared to the beginning of the year. Viet Nam contributes to regional broadcasting     Viet Nam actively participated in forums and meetings of the Asia-Pacific Telecommunity (APT) Wireless Group, and contributed possible recommendations on a harmonised frequency band plan for the 700 MHz band. Director General of the Authority of Radio Frequency Management of Viet Nam (ARFM), Doan Quang Hoan told Viet Nam News at the 23rd meeting of the Asia-Pacific Telecommunity Wireless Group (AWG-23) in Da Nang yesterday. He said Viet Nam had joined the AWG early to propose initiatives among member countries in the Asia-Pacific region in planning frequency for new technology applications. Hoan said AWG’s frequency plans and recommendations over past years had been widely used not just in the local region, but on a global platform as well. “For example, APT’s plan for the 700 MHz band, which was used for television technology, was then applied to broadband radio among European and African countries,” Hoan said, adding that Viet Nam also joined the AWG in promoting the plan. “Viet Nam even took a role in researching radio frequency at AWG forums and discussions, and the country also hosted a series of key meetings of ATP with the participation of many representatives from regional countries.” Deputy minister of information and communications, Pham Hong Hai, said the outputs of AWG have effectively assisted APT members in using the radio frequency spectrum and deploying wireless networks. Hai said the AWG recommendation on a harmonised frequency band plan for the 700 MHz band has been adopted by a huge number of countries in all regions of the world. “The demand of mobile communication can be seen through the continuing development of telecommunication and mobile internet infrastructure. The wireless applications and technologies such as ITS, wireless power transmission, railway radio communication system, and unmanned aircraft are emerging as well. It all requires policy makers to prepare relevant policies, and allocate additional spectrum resources and operators to prepare for this development,” Hai said in the opening ceremony. He also highly appreciated the key contribution of AWG to the growth of radio communications by developing the best practices and recommendations for the use of spectrum and harmonizing mobile broadband and emerging technologies. “Only by working together can we successfully promote the development and harmonization of wireless systems.” Secretary General of ATP, Areewan Haorangsi said the AWG-23 focus on assisting APT members to improve spectrum management practices to mitigate digital infrastructure constraint relating to the use of spectrum. “At the 14th Session of the General Assembly of the APT (GA-14) held in November last year, the Strategic Plan of the APT for of 2018-2020 was adopted which emphasises five strategic pillars and identifies a number of strategic actions to be implemented by all APT work programmes,” Areewan Haorangsi said. “The new strategic plan of the APT has given a lot of emphasis on developing the digital infrastructure and harnessing the benefits of new technologies. The Strategic Plan focuses on increasing broadband penetration particularly reaching to the underserved and unserved population to ensure affordability and quality of service with improved speed and coverage,” she said. The secretary general added that the strategic plan has also given directions to APT to continue its effort to foster the development and adoption of the latest telecommunication technologies. She stressed that AWG has always been active in developing numerous tangible outcomes in order to implement the previous Strategic Plans of APT. Chairman of APT, Kohei Satoh said he hoped the AWG-23 would gain results during the five-day discussions among members. Nguyen Anh Tuan, deputy manager of spectrum policy and planning office, under the ARFM, said Viet Nam will offer some initiatives and recommendations at the AWG-23 including smart traffic, and broadband use for new applications in mobile phones, internet and wireless routers. Tuan said Viet Nam has benefited from positive co-operation among members of ATP and AWG as the country has witnessed booming internet use over the past decade. Discussions and working sessions in frequency management, spectrum arrangement, additional spectrums available for 4G and many other emerging wireless technologies among ATP members will continue till April 13th. ASEAN Bahrain Council delegation to network in April An ASEAN Bahrain Council (ABC) delegation under the patronage of its Chairman, Sheikh Duaij bin Isa Al-Khalifa, will hold networking sessions followed by a dinner in Hanoi at the Intercontinental Lakeside at 6pm on April 12 and in Ho Chi Minh City at the Sofitel Saigon Plaza at 6pm on April 16, with the objective of creating business opportunities between Vietnam and Bahrain. The initiative is proudly endorsed by the Ministry of Foreign Affairs and the Vietnam Chamber of Commerce Industry (VCCI), who have jointly invited Vietnam’s business community to attend. The gateway to the Gulf Co-Operation Council (GCC) countries in the Arabian Gulf, Bahrain will assist Vietnam’s business community in studying the prospects for investment, trade and commerce, with a presentation of all opportunities and incentives on offer from the Bahraini Government. What began as the Bahrain-Malaysia Business and Friendship Society has since evolved to include the other ASEAN countries. The ASEAN Bahrain Council (ABC), established in September 2017, is an independent, non-political and non-profit association regulated by the Ministry of Social Affairs in Bahrain. The ABC’s mission is to promote and strengthen trade, economic, tourism, and cultural relations between ASEAN nations and the Kingdom of Bahrain. It is also to enhance mutual consultative relations for the benefit of Bahrain and ASEAN countries, increase trade exchange, and strengthen trade partnerships between Bahrain institutions and ASEAN countries. The ABC also acts as the premier advocacy organization for Bahraini corporations operating within the dynamic ASEAN region. “The idea of establishing the ASEAN Bahrain Council was put forward since the establishment of the Bahrain-Malaysia Business and Friendship Society,” said Mr. Shaikh Daij bin Isa Al Khalifa, Chairman of the ASEAN Bahrain Council. “The idea evolved to include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Burma, and Cambodia in ASEAN.” April 6 was a historical moment for the Kingdom of Bahrain, as it marked the largest discovery of oil under the leadership of HM King Hamad bin Isa Al Khalifa. The new resource is forecast to contain highly significant quantities of tight oil and deep gas, dwarfing Bahrain’s current reserves. Bahrain’s Higher Committee for Natural Resources and Economic Security, chaired by HRH the Crown Prince, announced the discovery of a new tight oil and deep gas resource in the Khaleej Al Bahrain basin, located off the west coast of the Kingdom. SBT to buy back 83.5 million shares     Domestic sugar producer Thanh Thanh Cong-Bien Hoa Joint Stock Company has announced it will buy back more than 83.5 million shares as treasury stocks. The company will buy the shares through order-matching transactions between April 18 and May 17. It will buy those shares based on the firm’s share price levels but the price levels will not exceed VND30,000 (US$1.33) per share. The company is not holding any treasury shares, the HCM Stock Exchange said in a statement. The targeted buyback shares are equal to 15 per cent of the company’s total outstanding shares on the stock market. Thanh Thanh Cong-Bien Hoa JSC is trading more than 557 million shares on the HCM Stock Exchange with code SBT. Its shares closed flat on Monday at VND18,050 per share, up a total of 5.5 per cent from its three-month low of VND17,100 per share hit on March 29. SBT shares have fallen sharply by 56.6 per cent from their record high of VND41,650 per share on August 2, 2017 and by nearly 26 per cent from the six-month high of VND24,350 per share made on January 11, 2018. SBT and other sugar producers have underperformed on the stock market since the beginning of the year as they have suffered from trade agreement threats and the sharp decline of sugar prices. The price of sugar was down nearly 0.1 per cent on Monday to trade at 12.33 US cents a pound ($27.2 cents a kilogramme), data on Bloomberg showed. The sugar price has almost lost a fifth of its one-year high price of 15.33 cents a pound hit on January 2. Due to a surplus on the global market, last month was volatile as it peaked at 12.93 cents a pound on March 12. Domestic producers will have to compete with sugar imports from other producers in the ASEAN region, especially after the ASEAN Trade in Goods Agreement (ATIGA) took effect on January 1, 2018, allowing sugar imports in Viet Nam to be taxed only 5 per cent. Other sugar stocks that have also witnessed a downtrend included Lam Son Sugar JSC (LSS), Son La Sugar JSC (SLS) and Kon Tum Sugar JSC (KTS). Vietnam exports rambutan to New Zealand The Ministry of Agriculture and Rural Development (MARD) and the New Zealand Embassy in Vietnam announced the export of Vietnamese rambutan to New Zealand in Hanoi on April 10. Rambutan is the third fruit of Vietnam to be exported to this market, after mango and dragon fruit. Director of the MARD’s Plant Protection Department Hoang Trung said to export rambutan to New Zealand, Vietnam needs to meet import requirements such as making dossiers to register rambutan farms, which will be granted code numbers on cultivation method, control of harmful pests, production as regulated and right use of plant production medicine.  In addition, packaging units must register and be certified by the department to meet New Zealand’s requirements for packaging and labeling, according to Trung. Irradiation facilities to treat the fruit must be certified by the department as being qualified to ensure the treatment of rambutan for export meet New Zealand’s requirements. All batches of rambutan will be checked and granted quarantine certificates by the department, to ensure the fruits are free of infection with harmful bacteria. Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said the announcement event marked a milestone in the agricultural cooperation between Vietnam and New Zealand, especially trade of agri-products. It also confirms the advantage of the Vietnamese fruit and proves its quality has been improved because New Zealand strictly controls quality and quarantine of plants, he added. Furthermore, the entry of rambutan in New Zealand also means opportunities to export to other countries with equally tough restrictions, he noted. The deputy minister added that his ministry will focus on directing the research and application of advanced science and technology in farming, preservation and processing. It will also reorganise production, especially the value chain of farm produce, so that Vietnam has enough high quality and safe agricultural products that meet the increasing standards of importing countries. Dam Quang Thang, General Director of Agricare which exports rambutan to New Zealand, said his company will seek more New Zealand partners to expand export to this market. Vietnam earned a record 3.45 billion USD from fruit and vegetable exports in 2017, a year-on-year rise of 40.5 percent, much higher than traditional staples like rice, crude oil and coffee. In January-March this year, Vietnam raked in 960 million USD from fruit and vegetable exports, up 35.6 percent against the same period last year. State budget collection up 5.3 percent in Q1 Total revenue of the State budget reached 308.4 trillion VND (13.6 billion USD) in the first quarter of 2018, equivalent to 23.4 percent of the yearly estimate and up 5.3 percent year-on-year, said the Ministry of Finance. Domestic revenue, estimated at 253.1 trillion VND (11.16 billion USD), rose by 7.2 percent from the same period last year. The figure was equal to 23 percent of the estimate. Meanwhile, revenue from crude oil surged 13.9 percent year on year to 13.2 trillion VND (582.1 million USD), accounting for 36.9 percent of the estimate. Import-export activities contributed nearly 67.58 trillion VND (2.98 billion USD) to the State budget, equal to 23.9 percent of the estimate.  In the reviewed period, State budget spending stood at 290 trillion VND (12.78 billion USD), equal to 19 percent of the yearly estimate and up 1.7 percent annually. Of the sum, development investment spending, regular spending and debt payment were 35.3 trillion VND (1.55 billion USD), 222.5 trillion VND (9.81 billion USD), and 31.4 trillion VND (1.38 billion USD), respectively. Government bonds worth 40.4 trillion VND (1.78 billion USD) were issued as of March 28, ensuring supply for spending and debt payment. The Finance Ministry said it would continue coordinating with relevant agencies to enhance budget collection management and combat smuggling, trade fraud and transfer pricing, along with handling tax arrears. Vietnam – potential market of Russian businesses Vietnam is a potential market that Russian businesses want to cooperate and boost trade exchanges with, heard a forum in Ho Chi Minh City on April 10. Chief Representative of the Russian Export Centre in Hanoi Robert Kurilo said Vietnam and Russia became members of the Eurasian Economic Union (EAEU) in 2016. Since then, the bilateral trade exchange has increased significantly. Many Russian products including farm produce have been present in Vietnam and vice versa, he added. There is a wide room for the two countries to boost cooperation in tourism, agriculture and oil and gas, Kurilo said, noting that Russian firms are especially keen to collaborate with Vietnamese partners in developing tourism and agri-products. Vietnam has a lot of delicious fruits and farm produce while the demand for such products in Russia is really huge. Russia is importing various kinds of fruits from countries in the Southeast Asian region. This will be an excellent opportunity for Vietnamese businesses to boost exports to the market, he said. Nguyen Viet Anh from Nafoods Group JSC said his company is seeking partners to expand its exports to Russia.  Anh said Russia is a huge market that has big demand for farm produce and tropical fruits.  He hoped to establish partnership with Russian import-export companies to make inroads into the market in the coming time. Russian firms not only want to import farm produce and aquatic products from Vietnam but also expect to bring Russian food products to Vietnamese customers.  Gostevskikh Mikhail, managing director of Siberia company, said Russian businesses consider Vietnam an attractive destination to implement new commercial development strategies. Vietnam is one of the fastest growing economies in Asia with improved local living standards and increasing demand for high-quality and safe products. Vietnam is not only a potential economic partner of Russia but also a close friend of Russian people, Mikhail said, adding that he believes the bilateral trade will reap positive outcomes in the coming time with the efforts of two sides’ State agencies and businesses. Sergey Klishin from Schelkovo Agrohim, one of the largest manufacturers of pesticides in Russia, said his company is seeking opportunities to export its products to Vietnam as the Southeast Asian country boasts a large area for agricultural production. At the forum, participants suggested Vietnam and Russia step up trade promotion and business connectivity to create more opportunities for enterprises to seek partners and set up long-term partnerships. Fire destroys 2,000sq.m factory of ABC Bakery A huge fire broke out and destroyed the whole 2,000sq.m factory of ABC Bakery in Binh Tan district, Ho Chi Minh City. The fire broke out at 7 PM last night in the new factory of Asia Bakery & Confectionery Pte., Ent. (also known as ABC Bakery) at Lam Hoanh Street, An Lac ward, Binh Tan district, Ho Chi Minh City. The workers and security staff of the company could not put the fire out before it spread. The Ho Chi Minh City Fire Prevention Department has sent 28 fire engines and 200 fighters to the scene who fought the fire until midnight. The fire did not have casualties, but injured two firefighters. ABC Bakery is a home-grown bakery chain based in Ho Chi Minh City, Vietnam, well known for its high-quality range of bakery products, such as bread, pastries, and cakes. ABC Bakery first started as a small store in an alley in District 11 and has developed into a chain of bakeries all over Ho Chi Minh City, Nha Trang, and Can Tho, with a presence in Cambodia. This morning, another fire also destroyed Sam Ngoc Linh JSX’s 2,000sq.m ginseng plantation in Da Lat city, Lam Dong province. Ngoc Linh ginseng is considered one of the five most valuable medicinal herbs in the world and produces high profit for the company. Fortunately, there were no casualties in the fire, but the damage to assets was substantial, estimated at nearly half a million dollar. Seminar discusses macroeconomics of first quarter The Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment have organised a seminar on the institute’s macroeconomic report in the first quarter in Hanoi on April 11. At the seminar, Vice Director of the CIEM’s Macroeconomy Department, Nguyen Anh Duong, briefed the group on the main points of the report in terms of growth, construction, industry, inflation, credit, the exchange rate, foreign direct investment (FDI), and imports and exports. Accordingly, economic growth for the first quarter of 2018 has exceeded its expected potential (GDP growth rate in the first quarter of 2018 reached 7.4%, up 2.2% compared to 2017). However, Consumer credit increased slowly, as the credit structure shifted to support production investment (medium-long term credit increased by 4.3%), and some import sectors decreased. In order to create the prerequisites for development in the coming time, experts advise that the State should focus on maintaining macroeconomic stability; harmonization of the requirement on increasing prices of goods and services with increasing productivity and quality of supply; and researching, planning, and communicating on the adjustment to regional minimum wages in 2019. Over 1,000 enterprises join Saigontex 2018 The Vietnam Textile & Garment Industry Expo (Saigontex 2018) –an annual international event took place in April 11 at Saigon Exhibition Convention Center, district 7, HCMC and lasts till April 14, 2018. The event attracted the participant of over 1,000 enterprises from 27 nations and territories across over the world such as Belgium, India, Canada, China, France, German, Indonesia, Italy, Japan, Korea, Malaysia, Pakistan, Singapore… It is also good chance for Vietnamese enterprises to meet and exchange, seek partners; promoting brand names and expanding the market. A range of sideline activities will be taken place during the event such as international conferences, exchanges and dialogues between domestic and international businesses... The event is co-organized by the Vietnam Textile & Garment Association, Vinatex, VCCI and Vietnam Exhibition Organization Co. and CP Exhibition Hongkong. Vietnam-Russia economic cooperation prospects under spotlight Cooperation prospects between Vietnam and Russia in the fields of industry, energy, information and technology and agricultural exports were discussed at several workshops held in the framework of the 28th Vietnam International Trade Fair (Vietnam Expo 2018) in Hanoi from April 9-11. The events were attended by representatives from the Eurasian Economic Commission’s Department for Industrial Policy, and many Russian corporations such as Russian Railways Logistics JSC, Alfa Robotics, Intelligent Security Systems and GOST group. How to apply new technologies and artificial intelligence in Vietnam in an effective way as well as opportunities for Vietnamese education and healthcare to access the world’s scientific achievements were tabled for discussion, along with measures to promote cooperation between Vietnamese and Russian enterprises. According to Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry, Russia has long-standing relations and close cooperation with Vietnam, its only strategic partner in the Asia-Pacific. Economy and trade have been always the highlights in the bilateral cooperation after the two countries upgraded their ties to a strategic partnership in 2001. Four pillars in the cooperation are trade, investment, oil and gas and electricity power. The bilateral economic ties have been elevated to a new height thanks to the free trade agreement between Vietnam and the Eurasian Economic Union (EAEU), which took effect in October, 2016. Russia holds strengths in economy, finance and technology while Vietnam has advantages in human resources, natural resources and geographical location along with its stable politics-economy-society. Those strengths, once combined, will help consolidate the strategic cooperation between the two countries, Khuong stated. In the past years, Vietnam has reaped crowing achievements in economic reforms, business climate improvement, completion of legal regulations and simplification of administrative procedures, he said, adding that Vietnam will continue with the work to facilitate conditions for foreign investors, particularly those from Russia. Khuong said that the Southeast Asian nation is prioritising investment in renewable energy, support industry, green industry, manufacturing mechanics, petrochemical, pharmaceuticals, information and technology, education, healthcare and tourism, among others. The VCCI pledged support for the Russian Embassy, trade representative offices and trade promotion organisations to connect companies of both sides, Khuong stressed. HCM City: Conference spotlights India-Vietnam textile cooperation A conference, entitled “Textiles: India – Vietnam Cooperation, Partners in Progress”, was held by the Consulate General of India in Ho Chi Minh City on April 11, aiming to boost trade relations between the two countries in textiles. Addressing the event, Consul General of India K. Srikar Reddy said Vietnam’s textile industry has huge potential and more and more Indian investors are interested in doing business in Vietnam. Meanwhile, India is a supplier of high-quality materials, fabrics and machinery at competitive prices and is also a market of 1.3 billion people, Reddy noted. The government of India is encouraging investment in the textile industry by allowing all foreign direct investment (FDI) to enter the sector without government approval, he added. Truong Van Cam, Vice President of the Vietnam Textile and Apparel Association (VITAS), said Vietnam’s textile sector is growing rapidly but in an unbalanced way as the country has limited domestic supply of materials like cotton.  He warned that if Vietnam does not improve self-supply capacity, the country will not be able to take full advantage of benefits brought by free trade agreements. According to Cam, Vietnam is in great demand of quality yarn and fabric at reasonable prices. He expected that with strength in technology and textile material production, India will provide Vietnam with effective support in this field. Enhanced cooperation between businesses of the two countries will help both sides offset their limitations and boost production and expand markets, he said. During the conference, enterprises from the two sides showed their desire to develop links in the sector through accelerating trade promotion and information exchange. India runs 176 FDI projects in Vietnam with total investment of 814 million USD, making it Vietnam’s 28th largest investor. Last year, Vietnam exported 31 billion USD worth of textile and garment products, up 10.23 percent from the same period last year while its imports of textile and garment materials, mostly yarns and fabrics, amounted to 19 billion USD. India’s textile-garment shipments to Vietnam hit 429 million USD in 2017, a year-on-year surge of 44 percent while its imports from Vietnam were estimated at 178 million USD, up 42 percent. The two countries aim to bring bilateral trade to 15 billion USD by 2020. Russia’s key products displayed at Vietnam Expo 2018 Russian enterprises are displaying products of their key sectors like machinery, precision mechanics, automation equipment, industrial biotechnology, and high tech electronics at the 28th Vietnam International Trade Fair (Vietnam Expo 2018), which opened in Hanoi on April 11. Russian exhibitors’ attendance at the event is hoped to bring an effective trade promotion chance for the two countries’ enterprises, thus enhancing their cooperation.  Speaking at the opening ceremony of Russia’s pavilion, Deputy Minister of Industry and Trade Tran Quoc Khanh said the Vietnamese side is pleased that Russia accepted the invitation to participate in the event as the guest of honour.  He highlighted the significance of the event, saying that it will help the two countries’ business communities seek partners and establish partnerships in the coming time.  The expo also offers a good opportunity for Vietnamese firms to learn Russia’s advanced technologies in aviation, railway, mining, automation and biotechnology, he noted.  In 2017, two-way trade between Vietnam and Russia hit 3.56 billion USD, up 29 percent year-on-year. Vietnam’s exports to Russia valued at 2.17 billion USD (up 34 percent), while its imports from Russia was 1.39 billion USD (up 23 percent).   In the first two months of 2018, the trade between the two countries reached 657.7 million USD, 45.3 percent higher than the same period last year.  The free trade agreement between Vietnam and the Eurasian Economic Union (EAEU), which took effect on October 5, 2016, is expected to serve as an effective legal framework, helping promote the exchange of goods, services and investment flows between Vietnam with the EAEU in general, with Russia in particular. Themed “Vietnam Expo - Enhancing Regional and Global Economic Links”, the Vietnam Expo 2018 attracts enterprises from 16 provinces and cities of Vietnam and 23 countries and territories, including Russia, the Republic of Korea, China, Nepal, Thailand, Japan, Singapore, Cuba, Laos, Cambodia, Taiwan and Hong Kong (China), and Mongolia. Many promotion activities will be also arranged on the sidelines of the four-day expo such as an export promotion forum, symposiums, and visits to industrial parks. Seminar seeks ways to improve growth quality Economic experts discussed measures to improve the quality of economic growth in a workshop held by the Central Institute for Economic Management (CIEM) in Hanoi on April 11. Participants heard that with economic growth of 7.38 percent, Vietnam’s GDP growth in the first quarter of 2018 surpassed most of the forecast expectations. According to Nguyen Anh Duong from the CIEM, the impressive economic growth in the first three months was attributed to the improvement of trade balance.  He said the low inflation and stable macro economy created favourable conditions for Vietnam to achieve high growth in the period.  However, economic experts said Vietnam’s growth quality has not been improved as the national economy still relies on foreign invested sector and is affected by the world economy’s fluctuations.  To create impetus for the higher economic growth in the remaining quarters of the year, Duong said the Government should give priority to stabilising the macro-economy and exchange rate, while carefully considering regional minimum wage increase in 2018 to avoid impacts on inflation.  He also underlined the need to further improve business climate, accelerate the restructuring of State-owned enterprises and encourage businesses to apply advanced technologies in production to increase labour productivity and quality. Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises, stressed that it is necessary to have fundamental changes in FDI attraction policy with specific orientations and objectives, towards expanding affiliation between foreign-invested enterprises and local partners, thus promoting sustainable economic growth.  CIEM Director Nguyen Dinh Cung said Vietnam should be more active in finding high quality FDI sources that have great impact on its economy.  Along with changing the FDI attraction strategy, there should be solutions to support the development of domestic economic sector, contributing to the national growth, he noted.  Economic experts said in order to achieve high and sustainable growth in the coming years, Vietnam needs to take advantage of opportunities from international economic integration, particularly benefits brought by the newly-signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Vietnam-European Union Free Trade Agreement (EVFTA) which are said to positively impact Vietnam’s economic and export growth. SaigonTex 2018 introduces modern textile-garment machinery The Vietnam Textile and Garment Industry Expo – SaigonTex 2018, the biggest and most influential event of the textile and garment industry of Vietnam, opened in Ho Chi Minh City on April 11. The event is organised by the Vietnam National Garment and Textile Group (Vinatex), the Vietnam Chamber of Commerce and Industry and Hongkong-based CP Exhibition company. It is Vietnam’s sole textile and garment industry expo meeting UFI standard of the Global Association of the Exhibitor Industry. This year, SaigonTex attracts the participation of more than 900 firms from 27 countries and territories across the world, including Belgium, Canada, France, Germany, Hong Kong (China), India and Indonesia. Many leading experts are expected to attend the event to suggest measures to address the sector’s challenges.  Many advanced textile equipment machinery and spare parts as well as new materials are introduced at the event. It also offers opportunities for domestic and international firms to meet and promote their brands, as well as seek new customers and expand markets.  Numerous fashion collections of famous Vietnamese designers are also on display.  President of the Vietnam Textile and Apparel Association Vu Duc Giang said SaigonTex 2018 is hoped to not only enable participants to explore new garment-textile equipment, but also bolster investment in the field. The event runs until April 14 at the Saigon Exhibition and Convention Centre. Vietnam Airlines to add 300 flights during upcoming holidays The national flag carrier Vietnam Airlines announced on April 11 that it would increase domestic flights to meet the high travel demand of passengers during the Reunification Day (April 30) and May Day (May 1).   Accordingly, the firm will add nearly 300 flights or nearly 60,000 seats on 12 domestic air routes, especially key ones such as Hanoi/Ho Chi Minh City-Da Nang; Hanoi/Ho Chi Minh City – Phu Quoc; Hanoi – Nha Trang.  Vietnam Airlines said it plans to supply 480,000 seats during this time, 14 percent higher than usual and up 4.5 percent over the same period last year.  The firm recommended passengers to early book flight tickets, and use online check-in services to reduce time for waiting in the airport before departure.  Low cost carrier Vietjet Air recently also said it plans to increase 200 flights, with 46,000 seats, to domestic popular tourism destinations such as Phu Quoc, Nha Trang, Da Nang, and Da Lat, and international destinations, including the Republic of Korea, Taiwan (China) and Thailand. Jetstar Pacific will also add 20 flights per day to serve the growing demand, an increase of 20 percent from the same period last year. The two carriers said they have ensured sufficient ground services and flight crews for the holidays. Vietnam’s sugarcane industry licks lips over Coca Cola-VSSA deal The Vietnamese sugarcane industry’s capacity will be improved after the Vietnam Sugar Association (VSSA) and Coca-Cola Beverages Vietnam Co., Ltd inked a cooperation deal on April 11. VSSA Chairman Pham Quoc Doanh said that under the agreement, 100 percent of the beverage giant’s sugar materials will be purchased domestically. In addition, the company will develop some sugarcane plantation areas so that female farmers can increase their incomes. Training is included in the cooperation deal as well, Doanh noted. In the past years, Coca-Cola has accompanied Vietnam’s sugarcane industry in production, business and consumption, making significant contributions to the sector’s development, he said, adding that many sugarcane companies of Vietnam have inked contracts with the beverage firm. According to Calin Dragan, Coca-Cola Regional Director, Bottling Investments Group ASEAN and Middle East, Coca-Cola Vietnam has committed to enhancing domestic value chain through production, business and training activities. The company has an ingenious plan to use domestic materials like coffee and aloe as the ingredients in its new beverage products, he stressed, saying that the freshly inked deal will create a comprehensive access for the involved parties to meet development priorities from the Government and businesses.   Vietnam is currently home to 300,000 hectares of sugarcane and 38 sugar plants with total designed capacity of 150,000 tonnes of sugarcane per day. The country produces some 1.2-1.5 million tonnes of various kinds of sugar, 50 percent of which are refined sugar, serving processing industry and domestic consumption. Vietnam attends ASEAN-India business cooperation conference Vietnam joined member states of the Association of Southeast Asian Nations (ASEAN) at a conference promoting cooperation between the group and India in New Delhi on April 11. Themed Doing Business with ASEAN, the event held by the India’s PHD Chamber of Commerce and Industry (PHD Chamber) drew the participation of high-level officials from India’s Ministry of Commerce and Industry and PHD Chamber, Indian businesses, the Ambassadors of Brunei, Myanmar, Thailand and Vietnam to India and representatives from ASEAN states’ diplomatic agencies in New Delhi. Speaking at the event, Vietnamese Ambassador to India Ton Sinh Thanh lauded achievements in cooperation between ASEAN and India across the fields of politics, economy and society. He informed the Indian businesses of Vietnam’s business environment, investment policies and prioritised fields. At the conference, ASEAN members highlighted traditional and comprehensive cooperative ties with India as well as potential for further collaboration between the two sides. Meeting eyes breakthroughs in Vietnam-Czech cooperation The 6th meeting of the Vietnam-Czech Republic inter-government committee on economic cooperation took place in Hanoi on April 11 to discuss measures for creating breakthroughs in bilateral economic ties.  Head of the Vietnamese delegation to the meeting, Deputy Minister of Industry and Trade Do Thang Hai informed the Czech side on the economic situation in Vietnam in recent time.  He affirmed that Vietnam appreciates the Czech Republic’s move to include Vietnam in the list of 12 priority foreign trade market in its export strategy for 2016-2020, adding that the two economies are enjoying dynamic growth and deep international economic integration, which is a favourable condition for bilateral economic, trade and investment ties to expand.  Reports show the Czech Republic is one of the largest partners of Vietnam in Central and East Europe. According to Vietnam Customs’ statistics, two-way trade was valued at 257.6 million USD in 2017, up nearly 3 percent from 2016. Of the figure, Vietnam’s exports were worth 151.4 million USD and imports 106.2 million USD, increases of 3.5 percent and 1.5 percent respectively. In the first two months of 2018, bilateral trade turnover increased 31.3 percent year on year to reach almost 50 million USD, with Vietnam’s exports accounting for 28.1 percent. Vietnam’s main exports include footwear, garments, aquatic products, industrial machinery and components, and electric equipment. It imports from the Czech Republic machinery and equipment, chemicals, pharmaceuticals and glassware. Regarding investment, the Czech Republic had 36 valid investment projects worth 90 million USD in Vietnam as of the end of February, ranking 49th among 126 countries and territories investing in the Southeast Asia country.  Vietnamese investors have so far poured 4.44 million USD in four projects in the Czech Republic.  Sharing the Vietnamese side’s view, Deputy Minister of Industry and Trade of the Czech Republic Vladimir Bartl expressed his joy at the unceasing development of bilateral ties.  He noted that there is great potential for bilateral trade considering the good relations between the two countries at present.  According to the official, Czech firms want to seek Vietnamese partners in engineering manufacturing, energy, cement and construction materials, medical and aviation equipment supply, and environmental protection. The 6th meeting of the Vietnam-Czech Republic inter-government committee on economic cooperation was also attended by 15 Czech companies. Russia launches Commercial House to boost trade with Vietnam The Russian Export Centre in HCM City has launched a Russia Commercial House to support business connectivity between the two countries, thus boosting bilateral trade.  Russia will promote trade exchange activities and support import-export businesses in Vietnam, Russian Consul General in Ho Chi Minh City Alexey V.Popov affirmed at a ceremony introducing the Russia Commercial House model in the city on April 10. The Russia Commercial House, which offers space for product displays and meetings of businesses, is expected to become a venue for importers and exporters to exchange information and seek partners. Popov said the sound traditional relations between Vietnam and Russia create a firm foundation for the two countries to develop economic and trade exchanges, noting that two-way trade topped 5.3 billion USD in 2017, showing a year-on-year rise of 35 percent. Vietnam and Russia aim to bring the bilateral trade to 10 billion USD by 2020. The Consul General added that Russia’s trade promotion agencies will actively work to connect Vietnamese and Russian businesses as well as increase support for their operation. Elizaveta Zinovyeva, director of international trade development from RETs Group of the Russian Export Centre, said Russian businesses evaluate Vietnam as one of the most promising countries to expand exports in the coming time, especially after the free trade agreement between the Eurasian Economic Union (EAEU) and Vietnam came into force in 2016. Vietnam not only records high economic growth but also serves as an important bridge for Russian businesses to access to other markets in the Association of Southeast Asian Nations (ASEAN), she said, adding that this is the reason why the Russian Export Centre launched the first Commercial House in HCM City – the southern economic hub of Vietnam. According to Zinovyeva, the house will provide a number of services supporting trade activities for Russian exporters and Vietnamese importers.  It will help businesses seek new partners and provide the latest information on the market in addition to introducing prestigious and highly competitive suppliers and consulting about import-export contracts. The house will also offer financial and insurance services for trade activities between Vietnam and Russia, she noted. Vice Chairman of the Vietnam Chamber of Commerce and Industry Vo Tan Thanh said Vietnam and Russia have stepped up cooperation in various fields in recent years, especially trade and investment.  The Commercial House model is expected to boost import-export activities and increase trade value between the two countries, he added. Vietnam, Kuwait to boost economic ties Kuwait and Vietnam are ready to promote bilateral economic and trade relations, the Kuwait News Agency said, citing comments by Fahad Al-Joan, a member of the Kuwait Chamber of Commerce and Industry. Talking to reporters on the sidelines of a meeting with a visiting Vietnamese business delegation, the official said there are agreements between the sides for the future expansion of Kuwait's direct investment in Vietnam, adding that Kuwait – Vietnam trade revenue amounted to 500 million USD in 2017. Mentioning oil investments, he said Kuwait has 150 fuel stations in Vietnam, which is predicted to hit 300 in the future. Meanwhile, Ahmad Al-Qattan, CEO's Representative of the Kuwait Petroleum International, said the Vietnam Refinery, one of the biggest external projects launched by the Kuwaiti oil sector, would be operational on May 11, with its total cost estimated at 9 billion USD. He said the refinery is expected to become a booster for bilateral investment relations. The facility has an estimated production capacity of 200,000 barrels per day, he said, revealing a plan to push the figure to 400,000 barrels per day in the future. VNN