BUSINESS IN BRIEF 2/4 Aquatic export up 11.5 pct in first quarter The export of aquatic products in March was estimated at 608 million USD, bringing the total shipment in the first three months to 1.7 billion USD, up 11.5 percent annually, according to the Ministry of Agriculture and Rural Development.  Major importers in the first two months this year were the US, Japan, China and the Republic of Korea, accounting for 50.5 percent of the total. Notably, markets seeing strong export growths included the Netherlands (49.7 percent), Thailand (35.3 percent) and China (34.9 percent).  During March, aquatic products import reached 151 million USD, bringing the total value in three months to 423 million USD, marking a 32.4 percent year-on-year increase.  In the first quarter, the total aquatic production rose by 4 percent to 775,800 tonnes, 740,800 tonnes of which was tapped at sea and the remaining was home-grown.  The total tuna output was estimated at 6,406 tonnes in the three-month period, including 3,676 tonnes in the central province of Khanh Hoa, 1,500 tonnes in the central province of Binh Dinh and 1,230 tonnes in the central province of Phu Yen.  Meanwhile, tra fish production in the Mekong Delta was estimated at 230,200 tonnes, up 5.1 percent year-on-year, mostly in An Giang, Dong Thap and Vinh Long.  Tiger prawn output was 42,300 tonnes while white-legged shrimp output hit 40,300 tonnes. HCM City’s index of industrial production rises 6.05 percent The index of industrial production (IIP) in Ho Chi Minh City picked up 6.05 percent year-on-year in the first quarter of this year. The figure in March rose 42.1 percent against the previous month and 7.07 percent against the same time last year. Director of the municipal Department of Industry and Trade Pham Thanh Kien attributed the IIP growth to the city’s programmes and policies to support the development of local industry and support industry. Output of the four key industrial sectors: manufacturing, electronics, chemicals-rubber-plastic and food processing experienced a year-on-year growth of 6.79 percent thanks to market expansion, renovation of equipment as well as improvement in the products’ quality and competitive capacity. Particularly, significant hike was seen in the electronics - information and technology sector with 16.91 percent, he said. Director of the municipal Department of Planning and Investment Su Ngoc Anh said that the IIP surge was spurred by thorough preparations of materials, markets and stable production. In the first three months of the year, Ho Chi Minh City paid due attention to attracting investment from large enterprises and carrying out research activities to support the investors. Investment promotion was accompanied with infrastructure development and environment protection as well. Production value at high-tech parks in the city was calculated at 3.02 billion USD, up 24.5 percent from the same time last year. Meanwhile, export value surged 18.5 percent year-on-year to 2.6 billion USD.  Some 60 pct of local businesses expect better business in Q2 Some 60 percent of local enterprises in a survey expect their business to do better in the second quarter of 2018 against the first quarter. The General Statistics Office (GSO) said this on March 29 while releasing the results of the survey on business trends of manufacturing and manufacturing enterprises in the first quarter of 2018. According to the survey, 33 percent of businesses said they had better business performance in the first quarter compared to the previous quarter, while 24.6 percent of them faced difficulties in doing business and 42.4 percent of them said their businesses were stable. In the second quarter of this year, 55.7 percent of surveyed enterprises expect their businesses to do better, while 10.4 percent of them predict difficulties and 33.9 percent of the enterprises expect stable business. The GSO also said in the first quarter of this year, 26,785 newly established enterprises were registered, with a total capital of 278.5 trillion VND, up 1.2 percent in terms of the number of enterprises and 2.7 percent in terms of registered capital year-on-year. Improving values of Vietnamese textile and garment brands   In the past years, Vietnam’s textile and garment sector achieved double-digit growth rates, with a total export turnover of more than US$31 billion in 2017, which is expected to reach US$34bn in 2018 Although Vietnam is the third largest garment exporter in the world, its brands have not yet found success at an international level, which would create high-added values. It is crucial for domestic enterprises to swiftly set out essential strategies for building strong brands as well as improving their values in order to increase their competitiveness in the new context. Over the past years, the sector has made encouraging achievements, including positive growth in industrial production value, sales, export turnover, and profits. It has also become one of the major contributors to the country’s socio-economic development with 7,000 enterprises, creating jobs and providing a stable income for nearly three million labourers. However, Vietnam’s textile and garment sector faces numerous difficulties and challenges in the period of deep integration into the world’s economy. On the domestic market, enterprises have been confronted with counterfeit goods. Meanwhile, in foreign markets, they are dealing with strong competition caused by trade barriers and protectionist policies which favour domestic goods of many countries. The difficulties require textile and garment businesses to make changes to adapt to the new situation. According to many experts, Vietnam has annually exported billions of US dollars of garments to the world market. However, the price of imported materials accounted for US$16 billion – US$17 billion. It can be said that domestic enterprises have been heavily dependent on imported materials, which has limited their ability to create a high-added value. On the other hand, they have done mostly processing and outwork for foreign companies. Therefore, the companies need to change their production methods towards original design manufacturing (ODM) and original brand manufacturing (OBM) models. In addition to investment and renovation in modern technology as well as the improvement of management and design to boost the exports and development of the domestic market, raising enterprises’ awareness and capacity of develop the values of intellectual property rights for their brands and products is very important. In particular, it is essential to develop a set of criteria for evaluating brand values; promote the brands; and build short-term and long-term strategies. The successful building and development of brands will increase the products’ market prices, creating huge surplus values for enterprises. Facing the increased competition in the both domestic and foreign markets, enterprises should set out effective strategies. Taking advantage of the abundant and cheap labour forces is no longer suitable for businesses in the period of deep integration. They need to pay close attention to enhancing their investment in building and developing strong brands as well as in improving the brand values, and creating strong competitiveness in the international market. Local enterprises advised to boost exports to Israel Việt Nam’s enterprises should promote the transfer of technology from Israel to develop their businesses and also increase trade promotion activities to this market. Lê Thái Hòa, deputy director of the Asia-Africa Market Department under the Ministry of Industry and Trade, said this at a seminar on trade promotion to Israel held by the Ministry of Industry and Trade in Hà Nội on Thursday. The seminar was aimed at updating Vietnamese enterprises with information about the Israeli market. Hòa said in the field of agriculture, Israel is one of the countries with a developed agricultural sector so, Việt Nam can become a potential market for Israeli enterprises in the fields of manufacturing and production of high-tech agricultural machinery. Key export products of Việt Nam will have the chance to enter the Israeli market, especially agricultural products such as rice, coffee, tea, and pepper, as well as furniture, garments and shoes. Israel is an easy market but it still needs quality goods. The market does not have many customers, but their income is quite high. Consumers in this market segment demand high quality and reasonably priced goods, he said. To enter the market quickly and efficiently, Vietnamese enterprises should participate in trade fairs. This is the best way for Israeli consumers to discover Vietnamese products, Hòa said. In addition, local businesses need to coordinate with relevant agencies to organise advertisement programmes, trade promotions and seminars to advertise Vietnamese goods. Lê Hoàng Tài, deputy head of the Việt Nam Trade Promotion Agency, said that since the establishment of diplomatic relations in 1993, the two countries have established cooperative relations in many fields. The bilateral trade value of Việt Nam and Israel increased from US$68 million in 2005 to some $1 billion in 2017, Tài said. Of this, Việt Nam exported goods and services worth $700 million to Israel and saw imports worth $345 million from Israel. By 2017, Israel had 26 direct investment projects in Việt Nam, with a total capital of over $47 million, ranking 11th out of 56 countries and territories investing in Việt Nam. These include seven projects in the manufacturing and processing industry with a total capital of some $25 million. Meanwhile, Israel has committed to providing a $250 million credit package to Vietnamese businesses in the near future. Hanoi’s exports surge 16.9 percent in first quarter Hanoi’s export turnover hit 3.15 billion USD in the first quarter of 2018, representing a year-on-year increase of 16.9 percent, according to the municipal Department of Industry and Trade.  In the reviewed period, all key staples achieved strong growth in export value.  Computer components and peripheral devices were the biggest contributor to the city’s export earnings, with 463 million USD, up 23.2 percent compared to the same period last year. They were followed by textiles and garments, raking in 401 million USD, up 20 percent year on year. Transport vehicles and components, and footwear respectively reached 235 million USD and 72 million USD in export revenues, up 21 percent and 24.8 percent year-on-year.  Electronic products are the only group of commodities suffering a decrease in export turnover in the period, with a fall of 4.3 percent.  Hanoi’s export value has increased sharply in recent years because businesses in the city have taken advantage of the recovery of major economies of the world, such as the US, Japan, the European Union and China.  Experts said to increase the export value, enterprises should renew models of products according to the demand on markets and increase competitiveness by cutting production costs.  They have been also advised to improve product quality and develop the brand as well as promote cooperation with local businesses. In addition to this, they should take advantages in export opportunities from free trade agreements that Vietnam has signed with foreign partners Also in the first quarter of 2018, the city’s import turnover reached 7.92 billion USD, up 15.1 percent over the same period last year. Statistics office says CPI grows slightly in Q1 The consumer price index (CPI) grew 2.82 percent in the first three months of 2018 compared to the same period last year, reported the General Statistics Office (GSO). The GSO and the Ministry of Planning and Investment held a press conference in Hanoi on March 29 to inform the country’s socio-economic indexes in the first quarter of this year. In March, the index declined 0.27 percent from February but increased 2.66 percent over the same period last year. The growth of CPI in the first quarter was attributable to an annual surge in a number of goods categories. The price index of health services soared 35.32 percent during the period, bringing the overall CPI up by 1.37 percent. The increase was a result of the Health Ministry issuing reference fees for health services targeting people without health insurance across 18 centrally run provinces and cities. A number of provinces increased tuition fees in the months, making the price index of educational services up by 6.57 percent, thus adding 0.34-percent increase to the overall CPI. Workers’ average wage has been raised since January 1 this year, followed by increases in prices of maintaining and fixing household items and water-electricity services. The first and second months involved the New Year holidays so there was a high demand for goods and then prices across various services, including food, beverage, apparel, public transport, and tourism were up. The price of beverage and cigarettes and that of ready-to-wear clothes rose 1.36 percent and 1.39 percent, respectively, while the price of public transport service rose 1.87 percent year on year. The price of gas was up by 2.83 percent and that of petroleum surged 9.18 percent year on year. The price of US dollar remained quite stable while that of gold fluctuated to the price in the world. According to the GSO, core inflation in January-March (CPI exclusive of fresh food, energy and State-run health and education services) moved up 1.34 percent year-on-year. VIB in talks with foreign investors for treasury shares sale Vietnam International Bank (VIB) is counting on surging foreign investment inflows in 2018 to offload its treasury shares to foreign investors as soon as in the third quarter, and is looking to bolster its charter capital through a private placement. VIB chairman Dang Khac Vy said at the bank’s annual general meeting (AGM) held today in Hanoi that its research team is working with at least five interested foreign partners from the US, the EU, and Japan on the treasury share sales, which is expected to be completed in either the third or the fourth quarter of this year. “We see a favourable environment that supports our treasury share sales at this time. A number of foreign investment banks with a large pool of spare funds find Vietnam as a destination for their investment. They are indeed very interested to invest in Vietnam,” said Vy. “We are negotiating with these investors, and should we feel any proposal to be most advantageous, we will try to seal the deal within this year,” he added. We see a favourable environment that supports our treasury share sales at this time. A number of foreign investment banks with a large pool of spare funds find Vietnam as a destination for their investment. They are indeed very interested to invest in Vietnam. Accordingly, part or all of the more than 33.868 million shares treasury shares, valued at VND718.64 trillion ($31.91 million), following its treasury share distribution to employees as a bonus, will be available to investors. The treasury shares were bought back in 2017, when VIB was traded at VND22,000 ($0.98) on the UpCom. VIB closed at VND43,000 ($1.91) today. VIB will also offer 10 per cent of its holdings, equivalent to a maximum of 56.44 million shares, to investors through a private placement this year, as part of an attempt to boost its charter capital to VND8.1 trillion ($360 million). In addition, the bank is looking to list its stocks on the Ho Chi Minh City Stock Exchange (HNX) later this year or in 2019. VIB reported a pre-tax profit of VND1.405 billion ($62.44 million) in 2017, doubling its 2016 result and achieving 187 per cent of the target set for the year. Credit growth, meanwhile, advanced some 26 per cent while its non-performing loans ratio stayed at 2.49 per cent. Mapletree opens second property in Ho Chi Minh City Singaporean property developer Mapletree is to open Oakwood Residence Saigon, its second property in Ho Chi Minh City in April this year. Located in District 7, Oakwood Residence Saigon is part of Saigon South Place. This development is invested by Singapore's Mapletree on 4.4 hectares, consisting of the integrated mixed-use SC Vivo City, a 17-story Grade A office tower, Oakwood Residence Saigon, and high-rise residential block RichLane Residences. There are also plans for two more commercial towers in the precinct in the coming time. “Mapletree is proud to launch our first Oakwood-branded property in Vietnam, and the second in the Asia-Pacific that we built after acquiring Oakwood Worldwide,” said Chua Tiow Chye, deputy group chief executive officer at Mapletree Investments. Chye added that this move was part of the company’s wider business strategy to bring the reputable Oakwood brand to global markets. According to Dean Schreiber, managing director, Oakwood Worldwide in Asia-Pacific, Vietnam has been experiencing robust economic growth and with international arrivals and domestic travel expected to continue on a growth trajectory, it is an opportune time for Mapletree to grow its presence in the country. Being the gateway to the Mekong Delta provinces, Ho Chi Minh City receives the highest number of tourists in the country, and international arrivals into Vietnam are expected to reach 20 million by 2020. Domestic travel has also seen a 15 per cent increase with expected continued growth. Preceded by Oakwood Apartments Ho Chi Minh City, which opened in December 2016 in District 3, Oakwood Residence Saigon is located in the city’s fast growing urban centre of Phu My Hung in District 7, adjacent to SC VivoCity and Mapletree Business Centre. Boasting 237 units ranging from studios to three-bedroom apartments, Oakwood Residence Saigon offers guests fully-furnished serviced apartments for both short and long stays. Shareholder activism tops banks' AGM agendas Over the past three years, the manipulation of voting rights or shareholder activism among leaders in the board of directors in Vietnam-based commercial banks was among the most debatable issues brought up at the banks' annual general meetings (AGM). On April 20, Sacombank (HSX: STB ) scheduled to hold its AGM to evaluate the 2017 financial year. The AGM will appoint two members of the bank's board of directors (BoD) for the term 2017-2021, one of whom would be an outside director. Previously, Kieu Huu Dung, permanent vice president of the BoD at Sacombank, handed in his resignation due to personal reasons, which was later approved by the bank's BoD. Notably, Dung was elected as a member of the bank's BoD for the term of 2017-2021, leaving three years befire his term would have ended. As announced by Sacombank, the proposal of dismissing Kieu Huu Dung as a permanent member of the BoD would be one of the main subject matters at the upcoming AGM. In particular, Dung was reported to own at least 300,000 STB shares, equal to 0.02 per cent of the bank’s charter capital. Over the past several years, Duong Cong Minh, chairman of BoD at Sacombank, was reported to be gathering STB stocks, signalling an attempt to raise his voting rights at the shareholders' meeting in late April. To date, the bank's BoD consists of six members, five permanent and one independent. On April 27, Eximbank will also host its AGM, mainly aiming at appointing two of the current four candidates as the next permanent members of the bank's BoD. To date, the BoD of Eximbank comprises of nine members, one president, two vice presidents, and six permanent members. Since 2015, Eximbank’s top personnel has been a "hot issue" among the bank's shareholders and employees. In addition, the bank failed to host multiple AGMs as the shareholders could never come to a unanimous decision. As of March 29, the commercial bank still has not finalised its financial statement to prepare for the approaching AGM in late April. In 2017, the bank secured VD1 trillion ($43.8 million) in pre-tax profit, with a declining rate of non-performing loans. In early 2018, the total value of the bank's divestiture at Sacombank climbed up to $500 billion. On March 28, LienVietPostBank held its 2018 AGM, expecting a change of members in its BoD and Board of Supervisors (BOS) for the term 2018-2023. Additionally, the AGM was expected to elect eight new permanent members for the BoD and three members of the BOS. Previously, Nguyen Duc Huong, president of the bank's BoD disclosed his intention of taking a step back from his current position, leaving quite a hot spot for the next head of the bank's BoD. Eventually, Nguyen Dinh Thang, former vice president of the bank's BOD, was elected as the new chairman of LienVietPostBank's BOD with nearly 800 million "for" votes from shareholders. Hyosung Group to expand business in Viet Nam      At the meeting, Cho said: "We plan to invest in the chemical and heavy industry sectors, including polypropylene and motor vehicles, and also get into construction of infrastructure including power, roads and ports in Viet Nam." Viet Nam is in urgent need of developing electricity, traffic and other infrastructure due to its rapid economic development. Hyosung is confident of achieving success in its Vietnamese infrastructure projects based on the skills and ideas it has accumulated in the power transmission and construction sectors. Prime Minister Phuc expressed Viet Nam’s desire to actively co-operate with Hyosung Group. Promoting IT-related businesses such as ESS, ATM, electronic payment and FinTech is also under consideration. Cho hyun-sang, President of Hyosung Group, accompanied President Moon Jea-in during his visit Cho hyun-sang, the president of Hyosung Group, accompanied the President’s economic mission to visit Viet Nam in order to promote the investment in Viet Nam. At the ASEAN youth job agreement ceremony and job fair, Cho Hyun-sang, the president of Hyosung, expressed the desire to actively contribute to creating overseas jobs for Korean youth in future. He also attended the Korea-Viet Nam business forum and state dinner between the two countries and supported the Government’s new southern policies by discussing future business co-operation plans with major government officials and business leaders from the two countries. Investing in Viet Nam – a key for Hyosung to lead global market Hyosung has invested around US$ 1.5 billion since its entry into Viet Nam in 2007. It is the largest Korean company at Nhon Trach Industrial Zone. At its 1.2million sq.m-site, it produces major Hyosung products such as spandex and nylon and steel tyre cords. It employs over 7,000 people locally. In addition, Hyosung has invested $1.3 billion to set up a polypropylene plant in the southern province of Ba Ria – Vung Tau. The company is now constructing a dehydrogenation process facility and an LPG storage tank in the central Quang Nam Province. Furthermore, since 2011 Hyosung has been sending teams of medical volunteers to treat more than 10,000 people. In the cases of patients found to be high-risk during treatment, Hyosung sent them to Korea for treatment and fully covered the cost. Hyosung has actively engaged in social activities such as donating libraries to elementary schools near its plant and gifting spectacles to students with poor vision. NAPAS to improve cashless payment system in Viet Nam      The National Payment Corporation of Viet Nam (NAPAS) signed a memorandum of understanding (MoU) on market development co-operation with KEB Hana Card Co., Ltd and Alliex Vietnam JSC. Under the MoU, the participants will co-operate to study and build a feasibility report on the development and efficient management of a shared point of sale (POS) network in Viet Nam. They will share experiences as well as market research results from advanced countries in order to recommend a systematic solution in developing card payments through card-accepting equipment at the POS, promoting the development of the domestic card payment market, which is one of the areas of focus for NAPAS in recent years. With KEB Hana Card and Alliex’s cashless payment experience and technology and experience in providing services and infrastructure for interconnected card systems among Vietnamese banks that are NAPAS members, the co-operation is expected to help realise the State Bank of Viet Nam’s plan to develop bank card payments through card acceptance equipment by 2020. KEB Hana Card is one of the first payment organisations in South Korea, belonging to KEB Hana Financial Group, the country’s largest financial group. In South Korea, KEB Hana Card has issued 4.7 million credit cards, capable of making payments for nearly 2.5 million card accepting units. Meanwhile, Alliex Vietnam is a leading provider of fintech solutions in Japan, South Korea and Viet Nam. Alliex is revolutionizing money transfer and payment technologies online as well as offline. As a member of Alliex, Alliex Vietnam is applying advanced technology and proven expertise to invest in non-cash payment infrastructure throughout Viet Nam.  Quang Ninh Customs establishes support team for businesses   The Quang Ninh Customs Department has set up a customs support team for import and export enterprises. - Photo quangninhcustoms.gov.vn  The Customs Department of Quang Ninh Province has set up a team to improve the quality of support for import and export enterprises. The team will collect feedback from enterprises and directly solve their problems in the implementation of customs procedures at the Quang Ninh Customs Department. Enterprises facing problems in the process of customs clearance can send their feedback to mailboxesquality@hqqn.vn or call the 24/7 helpline numbers of 0203.3826148 or 0969.596.646. The members of the support team will periodically see the representatives of enterprises to listen to their problems and give them information about import and export activities. Quang Ninh Customs Department will continue administrative reforms this year to ease customs procedures and reduce the time and costs for businesses. The province now has teams to support enterprises in mechanisms, policies and procedures of customs as well as help in the implementation of customs regulations. In 2017, it promoted administrative reforms to create a favourable business environment for import and export activities. Last year, Quang Ninh’s State budget revenue reached VND10.947 trillion, a strong growth against the target of VND5.4 trillion assigned by the Ministry of Finance and the target of VND10 trillion of the People’s Committee of Quang Ninh.  Hanoi meeting links Vietnam-China localities, businesses The Foreign Ministry of Vietnam and the Hanoi People’s Committee held a meeting between Vietnamese and Chinese localities and businesses in Hanoi on March 31. The event was part of the sixth Greater Mekong Sub-region (GMS) Summit and the 10th Cambodia-Laos-Vietnam (CLV) Summit on Development Triangle Area. The event was attended by Chairman of the Hanoi People’s Committee Nguyen Duc Chung, Deputy Foreign Minister Le Hoai Trung, Trade Counsellor of the Chinese Embassy in Vietnam Hu Suojin, officials of four Chinese provinces (Yunnan, Guangxi, Guangdong and Hainan) and 16 Vietnamese provinces and cities, along with hundreds of the two countries’ businesses. Opening the event, Deputy Foreign Minister Le Hoai Trung highly valued the Chinese provincial leaders’ participation in the meeting. With big economic strength, the four provinces are also the Chinese localities taking the lead in economic, trade, investment and tourism cooperation with Vietnam. In 2017, trade between the four provinces and Vietnamese localities reached 59 billion USD, accounting for 63 percent of the two countries’ total trade revenue. He stressed that the Vietnamese Government welcomes and pledges the best possible conditions for foreign businesses, including those from the Chinese provinces, to invest in Vietnam. The official called on the Chinese central and local governments, especially authorities of Yunnan, Guangxi, Guangdong and Hainan, to continue opening their market for the goods that Vietnam is strong at and China has demand for like agricultural products, pork and milk. He also asked for the facilitation of customs clearance for Vietnamese goods in border areas and the development of bilateral trade in a healthier and more balanced manner. Hanoi always attaches importance to promoting collaboration with Chinese localities and businesses in the spirit of comprehensive, long-term and win-win cooperation, said Hanoi Chairman Nguyen Duc Chung.  He said the capital city is home to 262 projects invested by Chinese firms with total registered capital of 371 million USD, and Hanoi raked in 8.9 billion USD from export to China in 2017.  The municipal authority will continue promoting administrative reform, and work closely with customs agencies of Vietnam and China to maximise support for customs clearance, thus facilitating trade links and goods exchange between the two countries’ enterprises, he affirmed.  At the meeting, Vice Governor of Guangdong province Ouyang Weimin said by the end of 2017, as many as 114 enterprises from Guangdong invested in Vietnam with total capital of 240 million USD.  The authority and people of Guangdong hope the two countries will continue fostering strategic cooperation and joining initiatives, thus creating momentum for the China-Vietnam cooperation.  Guangdong and Vietnamese localities have many cooperation opportunities in the fields of transport, education, and tourism, he stressed, adding that his locality want to further bolster tourism link and people-to-people exchange with Vietnam, towards reinforcing cultural and social collaboration between the two sides.  He also called on Vietnamese firms to further invest in Guangdong, expressing his hope that Guangdong’s firms will enjoy favourable investment environment in Vietnam.  During the event, localities and enterprises of the two countries shared information about investment climate and opportunities for business cooperation in the coming time.  Hanoi meeting links Vietnam-China localities, businesses The Foreign Ministry of Vietnam and the Hanoi People’s Committee held a meeting between Vietnamese and Chinese localities and businesses in Hanoi on March 31. The event was part of the sixth Greater Mekong Sub-region (GMS) Summit and the 10th Cambodia-Laos-Vietnam (CLV) Summit on Development Triangle Area. The event was attended by Chairman of the Hanoi People’s Committee Nguyen Duc Chung, Deputy Foreign Minister Le Hoai Trung, Trade Counsellor of the Chinese Embassy in Vietnam Hu Suojin, officials of four Chinese provinces (Yunnan, Guangxi, Guangdong and Hainan) and 16 Vietnamese provinces and cities, along with hundreds of the two countries’ businesses. Opening the event, Deputy Foreign Minister Le Hoai Trung highly valued the Chinese provincial leaders’ participation in the meeting. With big economic strength, the four provinces are also the Chinese localities taking the lead in economic, trade, investment and tourism cooperation with Vietnam. In 2017, trade between the four provinces and Vietnamese localities reached 59 billion USD, accounting for 63 percent of the two countries’ total trade revenue. He stressed that the Vietnamese Government welcomes and pledges the best possible conditions for foreign businesses, including those from the Chinese provinces, to invest in Vietnam. The official called on the Chinese central and local governments, especially authorities of Yunnan, Guangxi, Guangdong and Hainan, to continue opening their market for the goods that Vietnam is strong at and China has demand for like agricultural products, pork and milk. He also asked for the facilitation of customs clearance for Vietnamese goods in border areas and the development of bilateral trade in a healthier and more balanced manner. Hanoi always attaches importance to promoting collaboration with Chinese localities and businesses in the spirit of comprehensive, long-term and win-win cooperation, said Hanoi Chairman Nguyen Duc Chung.  He said the capital city is home to 262 projects invested by Chinese firms with total registered capital of 371 million USD, and Hanoi raked in 8.9 billion USD from export to China in 2017.  The municipal authority will continue promoting administrative reform, and work closely with customs agencies of Vietnam and China to maximise support for customs clearance, thus facilitating trade links and goods exchange between the two countries’ enterprises, he affirmed.  At the meeting, Vice Governor of Guangdong province Ouyang Weimin said by the end of 2017, as many as 114 enterprises from Guangdong invested in Vietnam with total capital of 240 million USD.  The authority and people of Guangdong hope the two countries will continue fostering strategic cooperation and joining initiatives, thus creating momentum for the China-Vietnam cooperation.  Guangdong and Vietnamese localities have many cooperation opportunities in the fields of transport, education, and tourism, he stressed, adding that his locality want to further bolster tourism link and people-to-people exchange with Vietnam, towards reinforcing cultural and social collaboration between the two sides.  He also called on Vietnamese firms to further invest in Guangdong, expressing his hope that Guangdong’s firms will enjoy favourable investment environment in Vietnam.  During the event, localities and enterprises of the two countries shared information about investment climate and opportunities for business cooperation in the coming time.  Work starts on second solar power plant in Ninh Thuan The construction of a solar power plant with a capacity of 50 MW kicked off in Phuoc Dinh commune of Thuan Nam district, the south central province of Ninh Thuan, on March 31. With total investment capital of 1.15 trillion VND (nearly 50.5 million USD), the project is built on 75 hectares of land in Bau Ngu Reservoir, under the build-own-operate format, according to Tran Huy Duc, Chairman of the project investor – Truong Thanh Development, Construction and Investment Joint Stock Company. The plant is expected to supply all 50 MW of electricity for the national grid before June 2019. Once operational, the Bau Ngu reservoir solar power plant will provide a considerable volume of solar power, helping to local boost socio-economic development.  Chairman of the Ninh Thuan People’s Committee Luu Xuan Vinh said according to international organisations, Ninh Thuan is eligible to develop renewable energy. It has the average wind speed of 7.1 metres per second at a height of 65 metres, while the number of sun hours is about 2,600 – 2,850 per year.  The province is also less vulnerable to storms, so it is an ideal destination for investment in renewable energy, he said, adding that Ninh Thuan considers renewable energy development one of the six pillar sectors to make economic breakthroughs, thereby soon turning the province into a renewable energy centre of Vietnam. The Government targets the solar power output in the province at 2,000 MW by 2020 and 8,000 – 10,000 MW by 2030. Apart from the Bau Ngu plant, the provincial People’s Committee has approved 48 other solar power projects to make survey.  The construction of the first solar power project in Ninh Thuan, which has a capacity of 30 MW, began in January 2018. The Bau Ngu plant is the second project to be built. Vietnamese firm granted operation licence at Cuba’s special economic zone The Cuban government has granted first administrative concession in the Mariel Special Economic Development Zone to the ViMariel S.A company, a subsidiary of the Vietnamese corporation Viglacera. The signing of the document to this effect was witnessed by Minister of Industry and Trade Tran Tuan Anh of Vietnam and Cuban Minister of Foreign Trade and Foreign Investment Rodrigo Malmierca at the Vietnam-Cuba business forum held in Havana within the framework of General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong’s visit to Cuba from March 28-31. Under the document signed between Director General of the Mariel Special Economic Development Zone’s Management Office Ana Teresa Igarza and Chief Representative of Viglacera in Cuba Nguyen Anh Tuan, the Vietnamese firm will invest 300 million USD to build a 160ha industrial park with full road, telecommunication, water and electricity infrastructure to serve industrial establishments. It will take ViMariel S.A five years to construct the industrial park from 2019. The concession is 50 years.  Addressing after the signing ceremony, Igarza affirmed this is part of Cuba’s efforts in calling for foreign investment to serve necessary infrastructure development for potential investors in Cuba. The ViMariel S.A industrial park is expected to welcome businesses involved in logistics, biotech, pharmaceuticals, electronics and processing. Also at the business forum, a series of cooperation documents between Vietnamese companies and Cuban partners. They included a memorandum of understanding between the Hanel company of Vietnam and the Cubanacan group on the construction of a five star hotel in Havana, and a contract between Viglacera and Gran Caribe on management and operation, including upgrade and restoration, of the New York Hotel in Havana downtown. On this occasion, Minister Malmierca announced that the Cuban government had approved two projects of Vietnam’s Tin Thanh Company on agricultural development, and the construction of a bio-mass power plant, both in the central province of Camaguey.  Firms encouraged to engage strongly in regional development The Greater Mekong Sub-region (GMS) Business Summit, which opened in Hanoi on March 30 on the sidelines of the sixth GMS Summit as an initiative of Vietnam, has created an opportunity for governments to hold dialogue with enterprises and development partners, and encourage their stronger engagement in GMS activities. In his speech, Cambodian Prime Minister Hun Sen said, as GMS countries are likely to face the emergence of protectionism and the drop in foreign investment, they should strengthen efforts in regional integration and economic connectivity through prioritised areas of finance, economy, e-commerce and cross-border trade. Chinese State Councilor and Foreign Minister Wang Yi stressed that the GMS Business Summit is important as this is a chance for GMS countries to listen to the voice of enterprises and call for the firms’ stronger involvement. He revealed that China is widely opening its door for regional countries, showing China’s determination to promote trade liberalisation, open service market and attract more foreign investment. China has so far invested 40 billion USD in GMS countries through soft loans and funding for 20 infrastructure projects, he noted. Meanwhile, Lao Prime Minister Thongloun Sisoulith affirmed that the Lao Government will coordinate more closely with GMS states to promote business activities. He called on businesses to increase investment in regional projects, thus helping enhance competitiveness in the GMS, while strengthening affiliation in science, and technology. Myanmar Vice President U Henry Van Thio held that low labour costs and natural resources are no longer advantages of GMS countries, underlining that the states should create a new impetus for sustainable growth, in which the development of the private sector is vital. Sharing the Myanmar leader’ idea, Thai Prime Minister Prayut Chan-ocha said he believes that creativity and digital technology will emerge as a new momentum for economic development on the foundation of public-private partnership. He highlighted the need to exploit digital economic potential, encourage businesses to apply scientific and technological advances and support them in accessing capital and markets. GMS countries should also foster market links to enhance competitiveness, he said. President of the Asian Development Bank Takehiko Nakao praised GMS countries’ progress in economic development, poverty reduction, community development and competitiveness improvement. He held that cooperation among GMS countries will help businesses optimise advantages from technological advances as well as access markets, enhance investment efficiency and share ideas. The ADB leader pledged that the bank will continue supporting the GMS in enhancing the involvement of the private sector in regional economic development. ASEAN Secretary-General Lim Jock Hoi said that the ASEAN is experiencing a dynamic developing period. The bloc is predicted to become the world’s fourth largest economy in 2050, which goes along with improved incomes and living conditions of people in the regional nations. This is also a great opportunity for investors, he stated. At the summit, Joaquim Levy, World Bank Managing Director and Group Chief Financial Officer, forecast that the global economic growth will reach 3.1 percent in 2018, and that of GMS will be 6 percent in following years. Although the poverty rate will continue to fall, there are still risks of instability that force GMS countries to be careful in macro-economic policy, Levy stressed. Changes in technology and population as well as climate change will greatly affect GMS countries where two-thirds of the population are poor, he noted.  The GMS Business Summit drew representatives from nearly 100 international organisations and development partners, together with more than 2,000 domestic businesses and those outside the GMS region. GMS was established in 1992 as an initiative of the Asian Development Bank (ADB). The GMS Programme is the most complete cooperation programme that involves Vietnam, Laos, Cambodia, Thailand, Myanmar, and China’s Yunnan and Guangxi provinces.  The sixth GMS Summit, themed “Leveraging 25 years of cooperation, Building an integrated, sustainable and prosperous GMS aims to celebrate the 25th founding anniversary of the GMS Programme and define cooperation orientations to build a region of prosperity, integration and sustainable development. GMS countries seek to boost open trade, multilateral trade system A symposium on the Greater Mekong Subregion (GMS) and Global Trade was held in Hanoi on March 30 within the framework of the first-ever GMS Business Summit initiated by Vietnam to boost open trade and build a multilateral trade system in the region.  Participating businesses had a good chance to talk with government agencies of GMS countries about benefits, opportunities and challenges from globalisation and cross-border trade, which are important to the GMS development.  They were also updated about the cooperation achievements that GMS countries have gained over the past 25 years.  The session offered an opportunity for delegates to recognise and evaluate changes and developments in international trade order and reposition of GMS countries in regional and global trade panoramic.  The panels also discussed solutions to catching up with new developments in the global economy and continuously capitalize on tremendous opportunities that are set for the GMS economies.  Vice Chairman of the Central and Eastern European Chamber of Commerce in Vietnam Csaba Bundik described the symposium as a high level with big decision makers from different countries.  Businesses were brought together to see their problems in different ways as well as update the GMS business trends, he said.  Meanwhile, Chris Malone, Partner and Managing Director of the Bolston Consulting Group, said the thematic session creates a lot of connection opportunities for businesses. For example, a lot of agriculture companies based in Vietnam are looking for business opportunities in the Southeast Asian country.  Furthermore, businesspeople look to understand more about the business trends that affect their business and get some ideas to benefit them in the GMS region, he added.  The really big opportunity in Vietnam would be the expanding consumer market, he said, adding that there is also interesting GMS connection in the tourism industry. The countries seek to work together to offer integrated tour packages, he took this as an instance.  Speaking at the session, Deputy Minister of Industry and Trade Tran Quoc Khanh highlighted notable achievements of the GMS over the past time, including the development of economic corridors by outlining nine priority railways to increase railway connection.  GMS countries have ratified the Agreement on Facilitation of Cross-Border Transport of Goods and People, signed the “Early Harvest” Memorandum of Understanding, implemented the one-stop-shop model, and cooperated in the field of e-commerce, he said.  He underlined huge opportunities for the GMS to forge economic and trade links and cooperation with China and India through economic corridors and free trade agreements signed between the Association of Southeast Asian Nations (ASEAN) and China and India.  It is also possible to connect the GMS Economic Cooperation Programme with other regional cooperation structures such as ASEAN, Mekong-Japan Cooperation, Mekong-Ganga Cooperation, and Belt and Road Initiative in addition to joining regional and global value chains, especially in the fields of their strengths such as garment-textile, footwear, agriculture, seafood and tourism.  The official also pointed to challenges posed to GMS countries such as limited number of cooperation projects in cross-border trade promotion and facilitation in the region and differences in border gate and e-commerce management regulations and policies, causing difficulties to harmonise regulations to make it easier for trade.  He called on GMS nations to continue promoting open trade and build a multilateral trade system.  According to the Deputy Minister, to facilitate trade and investment, it is necessary to upgrade border gates, simplify administrative procedures, harmonise customs procedures and control effectively border gates as well as expand the one-stop-shop models along economic corridors and signing agreements on mutual recognition of standards on food hygiene and safety, animal and plant quarantine, and enhance cooperation between border management agencies.  The GMS should develop transport infrastructure and logistics along economic corridors, and database to facilitate trade, he suggested.  The region needs to increase opportunities to support businesses, especially small-and medium-sized ones, to take part in regional value chains, he recommended.  At the session, delegates exchanged the situation of cooperation in trade and investment among GMS countries.  They also talked about new development trends in the global economy that have impact on GMS countries and require adjustments of policies and enhancement of GMS cooperation such as building the ASEAN Economic Community, developing e-commerce, shifting to digital economy, and leveraging on opportunities from new-general free trade agreements and the fourth industrial revolution. Sunwah Group plans to invest in steel production in Vietnam The Hong Kong-based Sunwah Group wants to invest in steel production using high, environmentally-friendly technology in Vietnam and boost cooperation in education, solar energy and tourism with the country, said Chairman Jonathan Choi. As it has relations with many Japanese enterprises, the Sunwah Group plans to bring more Japanese businesses to Vietnam by establishing an investment fund with an initial capital of 200 million USD, Choi told Vietnamese Prime Minister Nguyen Xuan Phuc on the sidelines of the sixth Greater Mekong Sub-region (GMS) Summit in Hanoi on March 30. Besides Japanese enterprises, Choi affirmed to do his utmost to bring more foreign investors to Vietnam, since he considers Vietnam as his second home. He also revealed that Sunwah will coordinate with the Vietnamese Embassy in Beijing to organise tourism promotion activities in the northeastern region of China later this year. PM Nguyen Xuan Phuc spoke highly of Sunwah’s business activities and its plan to expand presence in Vietnam in the time ahead. He expressed his hope that Sunwah will continue investing in the fields of its strength and affirmed that the Vietnamese Government will create more favourable conditions for the group. Private sector development a focus of GMS Plans for developing the private sector in the Greater Mekong Subregion (GMS) will be among priorities of the GMS Business Council (GMS BC) from 2018 to 2020, heard a panel discussion in the framework of the GMS Business Summit in Hanoi on March 30. Phan Vinh Quang, Deputy Director of the Mekong Business Initiative (MBI) affirmed that the GMS BC has developed many ideas and visions to support the regional private sector, suggesting more programmes, projects and resources be provided to increase the sector’s participation in the regional development. He suggested the GMS BC implement more activities, including staff training in business operation skills to support the private sector, particularly micro-, super micro, and women-run enterprises. Dr. Sombat Thiratrakoolchai, Vice Chairman of the Thailand’s CP Foods PCL, said his company has made investment in all GMS nations. He underlined the significance for the GMS and regional enterprises to work together as one for the sake of community. The CP Foods PCL creates jobs with equal salary, benefits, training and promotion opportunities for all employees no matter where they come from, he said, adding that the company also cares about the environment. The winner of the Startups of the Mekong AgriTech Challenge (MATCh) highlighted the opportunities and challenges to startups to reach out for finance and technical assistance in the highly competitive market, not only in a certain country, but also in the whole region. She also stressed the need for development of technology solutions for SMEs and MSMEs access to finance and regional value chain. Will Taing, Director of the Australia-based Beanstalkagtech Technology Company, said his company has provided agricultural technology solutions to many clients in the Mekong region. The GMS Business Summit gives his company in particular and other international firms to connect with potential GMS partners, particularly Vietnamese ones, he said. Lan Vy Nguyen, CEO of the VKStar Ltd., Company, organiser of Ao Dai (long dress) shows, highlighted the similarities in cultural values among people in the GMS nations. She hoped that the GMS mechanism in general and the GMS Business Summit will connect her company with potential markets, thus introducing the Vietnamese traditional culture to the regional countries. The GMS Business Summit, a highlight of the sixth Greater Mekong Sub-region Summit (GMS-6), aims to strengthen dialogues between enterprises and governments and connect businesses in the region and the world, while encouraging resources from the private sector for the GMS Programme. The GMS cooperation was launched in 1992 as an initiative of the ADB. The GMS Economic Cooperation Programme is the most complete cooperation programme that involves Vietnam, Laos, Cambodia, Thailand, Myanmar, and China’s Yunnan and Guangxi provinces. The programme prioritises infrastructure development, energy, telecommunications, tourism, trade-investment, human resources, and the environment. VNN