BUSINESS IN BRIEF 2/5 Vietnam-Spain trade exchange hits 2 billion euro Two-way trade turnover between Vietnam and Spain hit a record high of 2.003 billion euro in 2012, a year-on-year increase of 19.4 percent. Of the figure, Vietnam’s export surplus continued to remain high. According to the Spanish Customs, Vietnam’s exports to the country were estimated at US$1.799 billion euro (up 23.8 percent) and its imports at nearly 204 million euro (down 9 percent). Vietnam mainly exports phones and components, footwear, coffee, garments and aquatic products while importing seafood, chemical products, machinery and equipment, mechanical tools, pharmaceuticals and materials for garment and footwear production. Two-way trade exchange between the two countries hit 1 billion euro in 2008 and has grown considerably ever since. Tuna fishing faces difficulty despite growth Vietnam’s tuna exports have earned US$154 million so far this year, a year-on-year increase of 19 percent, and the highest growth among seafood exports.   However, its growth also causes concerns – a drop in tuna quality has resulted in a sharp fall in price. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), since the beginning of this year the US has imported US$57 million worth of Vietnamese tuna, an increase of 3 percent from the same period last year. It is followed by the European Union with US$32 million (up 37 percent) and ASEAN with US$9.4 million (up 81 percent). Nevertheless, despite the high output, the quality of tuna is being threatened by an increasing number of fishermen using high pressure lamps to reduce costs and increase productivity. As a result, tuna prices have seen a continuous decline over the past months, from VND60,000-VND65,000 (US$3) per kilo to VND50,000-VND55,000. Meanwhile, increases in the prices of fuel, ice and other necessities raise fishing costs from VND150 million (US$7,200) to VND170 million for a month-long fishing trip. Low incomes have made many fishermen quit and do other jobs. Now, a large number of ships in central provinces like Phu Yen and Binh Dinh cannot go fishing due to a lack of labour. Chairman of the Vietnam Tuna Association Vu Dinh Dap forecasts a record tuna output of 17,000-18,000 tonnes this year. To enhance the quality, fishermen should avoid using high pressure lamps and use traditional fishing methods, he suggests. New Zealand assists Vietnam in dragon fruit export New Zealand has started on a project to help Vietnam achieve its target of becoming the world’s leading exporter of dragon fruit. Under the five-year project, the New Zealand Institute for Plant & Food Research Ltd. will cooperate with Vietnamese experts from the Southern Fruit Research Institute (SOFRI) and the Vietnam Institute of Agricultural and Post-Harvest Technology (VIAEP) to produce high-quality and disease resistant varieties. The NZ side will provide its expertise in post-harvest preservation and transfer sustainable production technology, helping Vietnam meet global demanding consumer tastes, and raise incomes of local farmersas well as those involved in the dragon fruit supply chain. It will also train local farmers and packaging workers, aiming to increase the efficiency of production modes and product quality. The New Zealand Institute for Plant & Food Research Ltd. expects the plan will be a representative model of effective cooperation for other countries in developing tropical fruits and building brand names in the world market. Steel trade deficit reaches over US$2 billion Vietnam’s steel industry has seen an import surplus of more than US$2 billion in the first four months of this year. According to the Vietnam Steel Association (VSA), an imbalance in the steel industry’s development strategy has led to an increase in the import of high-value steel, while the domestic supply mostly focuses on popular products. Steel export earnings in the past four months were estimated at US$500 million, reported the VSA, Steel is currently among the top five import surplus sectors, with its trade deficit hitting US$5 billion in 2012. Fair showcases northern provinces' specialities An agriculture, industry and trade fair of the northern mountain region will be held in Ha Giang province from May 3-9. Nguyen Duc Vinh, director of the Ha Giang provincial Department of Agriculture and Rural Development, says the fair is part of the national agricultural promotion programme, aiming to develop agriculture and forestry in northern provinces in the process of rural industrialisation and modernisation. The event is expected to attract hundreds of domestic and foreign businesses which will display products and services in the fields of agriculture, forestry, fisheries, trade, transportation and handicraft making. During the fair, a wide range of activities will take place, such as a seminar, providing technical manuals and introducing investment policies and potential of 23 northern localities. This will provide a good chance for farmers, managers, scientists and businesses to exchange experiences, access advanced technologies to promote agricultural production and expand markets. The fair will also help Ha Giang introduce Dong Van Stone Plateau, one of the world’s geological parks, and tourism products of ethnic minority people. Favourable opportunities for footwear exports Most Vietnamese footwear businesses have received steady orders, for the second and third quarters of 2013, according to the Vietnam Leather and Footwear Association (Lefaso). Many producers are now turning to new markets, such as the US and Japan, in addition to their traditional consumers in the EU. Statistics from the General Department of Vietnam Customs show that revenue from footwear exports hit US$1.73 billion by the end of March, up 16.1 percent over same period in 2012. Footwear is now one of the country’s key 10 export items with total earnings in the first quarter of 2013 surpassing US$1 billion. The increasing production of footwear businesses is mainly attributed to trade agreements that are currently in the final stages of negotiation. The signing of the Vietnam-EU Free Trade Agreement (FTA) and the Trans-Pacific Partnership (TPP) agreement expected in the coming months will bring more advantages to the sector. The TPP alone will help Vietnam penetrate to a larger market of 2.7 billion consumers that makes up half the global GDP. In addition, tariffs levied on imports to the US, one of Vietnam’s key markets, will be slashed to zero percent from the current 14.3 percent on average. Footwear and leather exports to TPP member states are expected to account for more than 47 percent of the sector’s total value, with the US having the lion’s share of 31 percent. The sector aims to reap US$9.7 billion in revenue this year, an increase of 10 percent over 2012. The Japanese market is also forecast to contribute significantly to the sector’s 20 percent growth in orders this year, especially since the Tokyo Business Association sent 10 footwear businesses to Vietnam to conduct market research at the end of last year. Over half of these businesses have subsequently decided to shift their orders from other markets to Vietnam. US$3.34 billion trade surplus for FDI businesses The foreign direct investment (FDI) businesses have gained a trade surplus of US$3.34 billion in the first four months of this year. The Foreign Investment Agency (FIA) said the FDI sector’s exports (including crude oil) are expected to hit nearly US$25.53 billion, an increase of 23.2 percent over the same period last year and accounting for 64.69 percent of Vietnam’s total export revenue. Its imports reached US$21.76 billion, up 25.2 percent and equalling 54.16 percent of the country’s import expenses. Overall, the nation recorded a trade deficit of US$722 million for the January-April period. Vietnam’s investment climate introduced in Japan More than 100 businesses from Japan’s Niigata prefecture recently attended a workshop to explore Vietnam’s investment environment and policy. Yutaka Wanatabe, General Director of Towa Industrial Vietnam Co. Ltd., spoke highly of Vietnam’s political stability and steady economic growth, as well as the two countries’ close partnership as advantages Japanese businesses should take to enter the Vietnamese market. Vietnam is a key gateway to a dynamic Southeast Asia, said Wantanabe, who is also deputy chief of the Japanese entrepreneurs society in Ho Chi Minh City. He expressed his hope that the workshop will help promote initiatives aiming to boost cooperation between Vietnam and businesses from Niigata. Vietnamese ambassador to Japan Doan Xuan Hung briefed participants on the growing ties between Vietnam and Japan, as well as between Vietnam and Niigata prefecture. He noted that both sides have great potential for increasing cooperation in economics, trade, investment, and people-to-people exchanges, especially in the areas of agriculture, education-training and tourism. During a visit to Niigata on April 26-28, Hung met with the prefecture’s leaders, discussing the possibility of stronger cooperation between Vietnam and Niigata. RoK becomes Vietnam’s major car supplier Vietnam imported 3,518 completely-built-units(CBU) from the Republic of Korea in the first quarter of the year, accounting for more than 50 percent of the country’s CBU car imports. Though the figure represents a year-on-year decrease of 1.1 percent, the RoK was Vietnam’s largest car supplier in the reviewed period, according to the Vietnam Automobile Manufacture’s Association (VAMA). VAMA reported that total CBU imports fell 4.29 percent in the first quarter to over 7,000 units, but the import value increased by 0.5 percent to US$137.27 million. In March alone, Vietnam purchased nearly 2,468 units, up 64.8 percent over the previous month with the import value reaching nearly US$48 million, up 33.9 percent. Total auto sales hit 8,390 units in March, up 97 percent against February’s figure. The positive sign encouraged automobile manufacturers to launch new products to cater to customer tastes and rev up the domestic auto market. Vietnam is world No. 4 in instant noodle consumption Consuming more than 5.1 billion packets of instant noodles in 2012 earned the country fourth place in the global instant noodle consumption rankings. China, Indonesia and Japan are the world’s top three consumers of instant noodles. China tops the list with 44 billion packets, followed by Indonesia (14.1 billion) and Japan (5.4 billion). According to the World Instant Noodles Association in Osaka, Japan, 101.4 billion packets of instant noodles are consumed worldwide every year. Instant noodles were invented by Japanese businessman Momofuku Ando, who also founded the Nissin Foods Holdings Company in 1958. Ho Chi Minh City investment flourishes Despite the ongoing domestic and global economic woes, investment in Ho Chi Minh City has shown positive signs of foreign direct investment (FDI) re-growth in the first few months of this year. In late March, the HCM City People’s Committee granted an investment license to Sanofi Vietnam One Member Company, Ltd., under the Sanofi Aventis Group. The company invested US$75 million to build a factory and research centre for pharmaceuticals, cosmetics and food supplements in HCM City Hi-Tech Park. This is Sanofi Vietnam’s third factory with the largest amount of investment. A company representative said the most important factor for choosing the site for its factory was the high quality of human resources in HCM City. The company also received active support from the city in finalizing necessary procedures and improving transport infrastructure. Hoang Lan Anh, Sanofi Vietnam Communications Director, noted that HCM City’s current policy to attract investment provides maximum support for foreign businesses to enter Vietnam, establish production and contribute to the country’s economic development. Apart from central agency policies, HCM City Hi-Tech Park also offers many incentives to attract more investment to the city, she said. Not a few foreign companies have also decided to invest in the city in the first few months of 2013. As of March, 78 new FDI projects were licensed for operation in the city with total investment capital of nearly US$160 million, up 109 percent over last year’s same period, and there are still 26 adjustable expansion projects invested with over US$175 million. Overall, the number of new projects has dropped but total investment capital has risen and adjustable capital increased much more than during the same period last year. This shows signs of FDI re-growth which help investors regain their trust in the production and business environment in the city. HCM City authorities and departments have recently made considerable efforts to boost the city’s investment environment by gradually improving transport infrastructure to reduce congestion and overload, providing facilities at industrial areas and export processing zones to welcome investors and focusing o education, training to increase high quality human resources. The Hi-tech Park in District 9 was designed specifically for high-tech enterprises and it is now operating effectively, making it a desirable destination for technology investment in Vietnam. The Hi-tech Park’s sixty three projects with total capitalization of US$2 billion have been granted licenses to establish business, three of which, worth nearly US$50 million, have been added since the beginning of this year. HCM City Hi-tech Park Management Board Deputy Director Le Bich Loan said, "Our investment strategy is focused on open, international standard infrastructure to meet the needs of high-tech enterprises.” To further improve its competitiveness and attract more investors to the city in the near future, HCM City will continue improving its investment environment and capital management, particularly for FDI; prioritize attracting new investment and large-scale projects; and apply modern and environmentally friendly technology. It also aims to promote the efficient use of natural resources and limit the number of non-manufacturing investment projects not associated with processing. The HCM City Planning and Investment Department Director Thai Van Re underlinied the need to remove cumbersome administrative procedures and deal with other problems that may arise after investment licenses or business registrations are granted to both domestic and foreign enterprises. Business tax exemptions and payment extensions and social order is also a priority for attracting new investment, he noted. The influx of investment, in the first few months of this year, especially from foreign sources, indicates the reforms to the city’s incentives, policies and mechanisms have been effective which has paved the way for the city to attract more investment towards achieving its socio-economic targets. Ha Tinh's socio-economic development plan announced The central province of Ha Tinh announced a master plan on socio-economic development for the province into 2020, with a vision to 2050, at a conference on April 27. Chairman of the provincial People’s Committee Vo Kim Cu said that the master plan was based on the prospects of Ha Tinh’s competitive sectors, namely steel manufacturing; agriculture, forestry and fishery industries; trade, transport and logistics; textiles and garments; construction; education and training; information and communication. Accordingly, by 2020, the province aims to have an annual economic growth rate of 18.4 percent; industrial, service and agricultural sectors will account for 54.7 percent, 32.2 percent and 13.1 percent of the province’s economy respectively; and the number of poor households will fall by 3-4 percent per annum. At the event, Deputy Prime Minister Nguyen Xuan Phuc stressed that Ha Tinh needs to continue promoting its potential and this master plan to businesses and regional countries, in order to attract investment in priority sectors. The province should also improve the quality of its human resources to serve economic zones and large projects’ demands, he added. On the occasion, Ha Tinh presented certificates of investment to six businesses, including four foreign investors from Japan, the Republic of Korea, Hong Kong and Taiwan (China). The investors pledge to pour more than VND55.4 trillion (US$2.6 billion) in the province. Since 2011, 301 new projects, worth more than VND346 trillion (US$16.5 billion), have been licensed to operate in Ha Tinh. Among them there are 48 foreign projects with total registered capital of VND218 trillion (US$10.4 billion), including those run by such giants as Formosa (Taiwan, China), Samsung (the RoK) and Mitsubishi (Japan). Australia, Vietnam foster trade and energy cooperation (VOV) - Vietnam and Australia have agreed to support the trade promotion agencies- VIETRADE and AUSTRADE in encouraging effective and sustainable cooperation between the two countries. The agreement was reached at a meeting between Vietnamese Minister of Industry and Trade Vu Huy Hoang and Australian Minister for Trade and Competitiveness Craig Emerson during Mr. Hoang’s visit to Australia from April 22-28.  The two ministers compared notes on bilateral cooperation in trade and industry, as well as hygiene, quarantine, and transferring seafood processing technology. They also examined ways to take advantage of the incentives offered under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). Vietnam suggested that Australia support the Seafood Importers Association’s proposal to open a quality control office in Vietnam in order to facilitate the country’s exports to Australia.  The two sides also pledged to make all-out efforts to boost the Trans-Pacific Partnership Agreement (TPP) and Regional Comprehensive Economic Partnership (RCEP) negotiations between ASEAN member countries and their partners. Australia will consider and give official opinions on continuing its technical assistance to Vietnam through the Austrian Agency for International Development (AusAID) in the post-WTO period. In response to Vietnam’s proposal to increase energy cooperation, Australia supports extending the Memorandum of Understanding (MoU) on energy cooperation until 2016 Minster Hoang worked with a number of Australian ministries on cooperating in oil and gas exploration and exploitation, energy conservation, and importing and exporting coal, and witnessed the signing of MoUs and long-term coal supply contracts between Vietnamese and Austrian groups. During his visit, Minister Hoang also met with the governors of Queensland and New South Wales to discuss expanding trade and energy cooperation. Canon opens first Image Square store in Hanoi World leading image technology solution provider Canon officially launched its first Image Square store on April 27at the Vincom shopping mall in Hanoi. The store displays authentic, high-quality Canon products, including its full line of professional imaging products as well as DSLR and digital cameras, lenses and printers. Image Square is a chain of branded retail stores aiming to bring a range of diverse, high quality,international standardproducts to Vietnamese consumers Addressing the launching ceremony, President cum General Director of Canon Singapore, Mr. Kensaku, said the store offers consumersthe opportunityto learn about and access the company’s products through its consulting services. Nick Yoshida, President and CEO of Canon Marketing Vietnam, said Canon inaugurated its first concept store in the new HCM CityVincom shopping center last December and it plans to open a chain of 20 stores nationwide by 2014. Agricultural products need protection after FTA Signing the Free Trade Agreement (FTA) between the European Union (EU) and Vietnam will create opportunities for exported Vietnamese agricultural products in the EU market. The EU will not only reduce its taxes on these goods but also accept responsibility for protecting the reputations of famous Vietnamese agricultural produce brands. The European Commission (EC) in Vietnam recently organised a workshop on Geographical Indication (GI) and the prospects for protecting Vietnamese agricultural products in the EU. Ambassador Franz Jessen said the EU is one of Vietnam’s most important trade partners. Vietnam’s total EU export revenue has hit US$13 billion, making it the only regional grouping to boast an export turnover increase last year. Negotiations for the EU-Vietnam FTA look destined for success. After it is signed, most Vietnamese agricultural products will only face taxes ranging from zero to five percent. The ratification of the GI agreement will deliver many benefits to the Vietnamese agricultural industry. Many foreign businesses use counterfeits to exploit the reputation of Vietnamese agricultural brands already popular in the EU. Ratifying the FTA will encourage producers possessing GI in Vietnam to register for the direct protection of their traditional products in the EU, making international promotional significantly easier. Tran Huu Nam, Deputy Head of Vietnam’s National Office of Intellectual Property,  said Vietnam’s geological, climactic, and cultivation idiosyncrasies  create many agricultural products that would benefit from GI. So far, Vietnam has granted GI to 35 agricultural products, three of which are protected overseas. Statistics suggest almost 1,000 products could be eligible and suitable for GI. EC Department of Agriculture and Food Representative Laurent Lourdais, explained the EU’s three GI-related systems currently in operation. They are Protected Designation of Origin (PDO), the Protected Geographical Indication (PGI), and the Traditional Specialty Guarantee (TSG). Farm produce bearing GI certification  are sold at twice the price of those without. Consumers are also protected from unwittingly purchasing counterfeits. The EU has extended its GI protection to 14 foreign agricultural products, including some from China (10 products), Colombia (one), India (one), Thailand (one), and Vietnam (one). Once the Vietnam-EU FTA enters into effect, the procedure for registering Vietnamese goods for this production will become radically simpler. Some Vietnamese specialties—such as Chu Se pepper, Buon Ma Thuot coffee, Shan Tuyet tea,  Binh Thuan green dragon fruit, and Phan Thiet fish sauce—are internationally renowned and need the EU’s anti-fraud protection. As both the EU and Vietnam have long agricultural histories encompassing numerous traditional farming methods, farm produce GI certification is especially important for socioeconomic development in rural areas. Ha Long hosts trade, tourism and food fair A trade, tourism and food fair opened in Ha Long city in the northern coastal province of Quang Ninh on April 26 as part of the 2013 Ha Long Carnival. The event features 120 stalls representing more than 100 businesses and economic organizations from the province and across the country. Garments and textiles, electronics, refrigeration and agricultural products are all on display along with processed foods, handicrafts, furniture, and high-tech items. The fair also showcases tourism products and services, including tour and recreational packages, entertainment, shopping and food areas. Stage performances, fashion shows and comedies starring local and regional amateur and professional performers and art troupes will take place in the evenings during the fair. Quang Ninh Department of Culture, Sports and Tourism Deputy Director Do Khanh Tung said the fair is a place for entertainment as well as an opportunity for the province to promote its tourism potential. It also gives businesses a chance to introduce their products, meet and dialogue with each other, and boost cooperation between local companies and their domestic and foreign counterparts. Two Vietnamese banks honoured by Asian Banker The Asian Banker magazine has awarded the prestigious Best Cash Management Bank in Vietnam and Leading Counterparty Bank in Vietnam to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank). The prizes were announced during the Asian Banker Summit in Jakarta, Indonesia on April 24-25. Established in April 1963, Vietcombank is Vietnam’s leading provider of financial services for international trade, as well as capital mobilization, credit, and project funding. It also offers modern banking services such as foreign currency exchange, credit and debit card services and e-banking. This is the third consecutive year Vietcombank has been named the Best Bank in Vietnam for a variety of its operations. Vietnam Export Import Bank (Eximbank) was also presented with the Best Managed Bank in Vietnam 2013 award by the magazine and its General Director. Truong Van Phuoc,won the Asian Banker Leadership Achievement Award. The bank’s achievements are attributed to its enhanced competitive capacity and expanded scope of activities, as well as the director’s initiatives to develop its technological infrastructure. It has also focused on developing its human resources, improving transaction processes, and increasing capital and financial rates to comply with the State Bank of Vietnam (SBV) regulations. WB approves US$202.5 mil to upgrade Da Nang infrastructure The World Bank (WB) Board of Directors approved US$ 202.5 million in credit on April 26 to support sustainable development in Da Nang city. The credit is being provided under the Da Nang Sustainable City Development Project to help improve the city’s drainage systems, wastewater collection and treatment services, arterial roads and public transportation. The project aims to expand and upgrade thepublic transport system and provide better access to sanitation facilities for most city residents, especially women, the elderly and other vulnerable populations. It will also make the city more attractive and friendly to investors and tourists through better infrastructure and urban management. World Bank Country Director for Vietnam Victoria Kwakwasaid she hopes that the project will create a good model for a “green city” and sustainable urban development to inspire similar development in other cities across Vietnam. She added that the strong leadership of the Da Nang People's Committee to promote the concept of green urban development, accelerate quick decision making andsupport close monitoring will ensure the project’s smooth implementation so Da Nang residents can enjoy the advanced infrastructure of a sustainable city. The project creditcomes from the International Development Association, the WB’s fund allocated for the poorest countries. It will be used for the project’s five components, including improving drainage and wastewater systems, developing a rapid transit bus system, improving strategic urban roads, capacity building for city authorities in managing urban infrastructure,and completingmajor infrastructure sub-projects initiated by the Da Nang Priority Infrastructure Investment Project. Da Nang is Vietnam’s fourth largest city and is widely regarded as a being well-planned and well- governed, with a higher quality of infrastructure compared to other cities in the Country. Municipal leaders have committed to developing Da Nang into a “green” city by 2025, with an emphasis on high-tech industries and tourism. Agro-forestry and fisheries exports hit US$8.67 bil in 4 months The Ministry of Agriculture and Rural Development (MARD) has reported the export value of farm produce reached approximately US$4.54 billion in April, with agro-forestry and fisheries export turnover estimated at US$2.37 billion. April’s results push agro-forestry and fisheries’ export value to US$8.67 billion for the first four months of 2013, up 0.4 percent against the same period last year. Seafood is predicted to decline by 4.6 percent to US$1.71 billion due to plummeting demand in the important American, Japanese, and South Korean markets. But forestry’s export value could rise to US$1.69 billion—up 14.5 percent. Rice export volume in the first four months of the year is forecast at 2.38 million tonnes earning nearly US$1.04 billion—up 7.6 percent in value and sliding 0.2 percent in volume compared to the same period last year. The first quarter’s average rice export price of US$445 per tonne is down 12.4 percent on 2012. The volume of coffee exported over the first four months totalled 608,000 tonnes and earned over US$1.3 billion. VCCI continues to represent Vietnamese business community The Vietnam Chamber of Commerce and Industry (VCCI) will continue to serve as the voice of the business community. It will consult on policy development in the hopes of perfecting the socially-oriented market economy and ensuring an equitable, transparent business environment. Deputy Prime Minister Nguyen Thien Nhan stated the above at an April 26 ceremony in Hanoi, marking the 50th anniversary of the VCCI’s establishment as the national representative body for entrepreneurs, associations, employers and the Vietnamese business community. Deputy PM Nhan affirmed the VCCI’s important role in the country’s development. He asked the VCCI to continue to monitor the Party’s and State’s business orientations— especially in relation to the political bureau’s resolution No 9 on developing a contingent of Vietnamese businesses. The VCCI has expanded its consulting activities on behalf of the Party and State for issues including economic development, business development, international integration, and economic competitive capacity. Nhan urged the VCCI to continue coordinating with relevant government agencies on furthering administrative reform, fine-tuning the domestic business environment, and providing businesses with the support necessary for success. The VCCI has more than 11,000 direct members, over 100,000 indirect members, and represents the diverse interests of a range of economic sectors. It has actively contributed to policy-making, helping to establish the Vietnamese business environment’s legal foundations through legislation like the Law on Enterprises and Law on Investment. The VCCI has also co-chaired major economic dialogue forums inside and outside the country. HP launches new class of server HP on April 26 unveiled the world’s first commercially available HP Moonshot system. The system delivers compelling new infrastructure economics by using up to 89 percent less energy, 80 percent less space and costing less than 77 percent compared to traditional servers. Today’s mega data centers are nearing a breaking point wherefurther growth is restricted due tothe current economics of traditional infrastructure. HP Moonshot servers are a first steporganizations can taketo address these constraints. “With nearly 10 billion devices connected to the internet and predictions for exponential growth, we have reached a point where the space, power and cost demands of traditional technology are no longer sustainable”, said Meg Whitman, President and Chief executive officer, HP.  “HP Moonshot marks the beginning of a new style of IT that will change the infrastructure economics and lay the foundation for the next 20 billion devices.” More than 20 years ago, HP introduced the first commercial UNIX server, the HP9000 Series 840,as well as the first x86 server, the HP SystemPro. More than a decade later, HP was granted one of the first patents for blade server architectures. The company hasremained the x86 server market leader for the last 16 years. The new HP Moonshot system is the second-generation server from HP’s Project Moonshot. This new class of server is engineered to address the IT challenges created by social, cloud, mobile and big data. HP Moonshot servers are built from chips more commonly found in smartphones and tablets, which allow the servers to deliver reduced energy use and a high-density footprint, all at a significantly lower cost. Laos, Vietnam trade to hit US$2 billion in 2015 Vietnam and Laos expect to increase two-way trade turnover to US$2 billion in 2015 and US$5 billion in 2020. According to Tran Bao Giam, Trade Counsellor at the Vietnamese Embassy in Laos, Vietnam’s products currently account for 16.4 percent of Laos’ imports, mostly steel and iron, petrol, vehicles, machines and spare parts, coal and textiles. Giam said that the biggest difficulties Vietnamese enterprises face entering the market is the small size of the Lao economy, poor transport infrastructure and an incomplete legal and policy foundation. In addition, Vietnamese companies must do everything by themselves, from purchasing goods to transporting, delivering and marketing due to the lack of supporting services and weak transport connections. In order to promote exports to Laos, Vietnamese businesses should diversify the range of products, and participate more in bidding for projects in the fields of infrastructure construction, industry, mining, agriculture-forestry and social development. Moreover, businesses should boost links with Lao partners, particularly Vietnamese businesspeople in the country, and customise product packaging and labelling to suit Lao consumers’ taste.  Industry production index up 5.8 percent in April Industrial production index in April increased by 5.8 percent over the same period last year, contributing to a year on year increase of five percent in the first four months of this year, the General Statistics Office (GSO) reported. Accordingly, in April the mining industry saw a rise of one percent; manufacturing and processing industry - 6.9 percent; electric production and distribution - 9.2 percent; and water supply, waste and waste water treatment - 9.7 percent. The industrial production index of Ho Chi Minh City recorded a 3.9 percent rise in April compared to one year ago while Hanoi’s increased by 4.7 percent. The northern province of Vinh Phuc’s index was up 15.1 percent and central Danang city saw a 10.7 percent increase. However, the inventory index of the processing and manufacturing industry by April 1 saw a 13.1 percent year on year rise. The index is particularly high in beverage production, motor vehicle manufacturing, furniture, chemicals, electrical equipment and pharmaceutical production. Dragon fruit farmers reaping huge profits Le Minh Duc, director of the Department of Agriculture and Rural Development in Long An Province, said on April 27 that dragon fruit farmers are now reaping huge benefits from cultivating the fruit. One hectare of dragon fruit cultivation brings in VND400-500 million (US$19,221-24,026); as a result, more farmers have expanded land area to cultivate the fruit. On the downside, 80 percent of the volume is consumed by the Chinese market, which remains unstable and risky. The Mekong Delta provinces of Long An and Tien Giang have the most farm land under dragon fruit cultivation--with over 5,000 hectares. Recently, farmers reaped huge profits after they used light-bulbs hung over the plants to stimulate early flowering. Leaders of both the above provinces have however asked farmers not to widen farm land to grow more dragon fruit but to focus on higher yield, quality and steady prices to increase competition as well as profits, and simultaneously search for new markets rather than rely so much on the Chinese market. The provinces have now decided to allow only those households whose farm land has electricity to artificially stimulate dragon plants to bear out-of-season fruits. Garment, textile exports maintain steady growth Garment and textile exports continued to maintain steady growth in April with export value reaching US$1.31 billion, with this year’s exports touching $5.1 billion, an increase of 20 percent compared to the same period last year. Although this is not peak season for the garment and textile industry, average monthly turnover still exceeded $1.3 billion, currently accounting for 15 percent of the country’s total exports. According to Ho Chi Minh City-based garment and textile companies, many importers have placed or increased orders, and hence firms are in a position to choose from best orders to fulfill. Some firms said they have already received orders for August and September. In order to achieve an export target of $126 billion this year, the country’s total exports have to reach at least $10.6 billion each month. However, total exports in April barely touched $9.7 billion. Agro-aqua-forestry exports see marginal rise A report by the Ministry of Agriculture and Rural Development estimates the country’s agro-aqua-forestry exports were at US$2.37 billion in April, sending the figure in the first four months of this year to $8.67 billion, up 0.4 percent year-on-year. In the first four months, four commodities of rice, coffee, seafood, and wood and wooden products, exceeded $1 billion in export value. Of these, rice exports were at $1.04 billion; coffee at $1.3 billion; seafood at $1.7 billion; and wood and wooden products at $1.6 billion. The Ministry also noted that animal husbandry has been facing difficulties because of diseases. Total herds of cattle and pig, and most of the poultry has decreased to a large extent compared to the same period last year, with cattle dropping by 3-4 percent; pigs by 2-3 percent; and poultry by 2-3 percent. Swine and poultry breeders are both in despair due to low prices and diseases, with some facing losses, while others have had to halt production. Footwear exports see abundant orders Several Vietnamese footwear businesses have been speeding up production to meet the sudden demand in exports since early this year. Truong Thi Thuy Lien, director of Lien Phat Shoe Company in Binh Duong Province, said in 2012 the shoe industry met with a lot of difficulties due to fall in purchasing power in the EU market. However, since the first quarter of the year, orders have increased from old customers. Besides, orders have also been placed by new customers from Germany and England. The company now has to recruit more workers to meet production demand, said Lien. Nguyen Chi Trung, director of Gia Dinh Shoe Company in Ho Chi Minh City, said there are more orders now than there were during the same period last year. Besides orders from old customers in the EU market, there are also orders from the US and Japan.  The company has had to speed up production to meet this demand. This good fortune can be attributed in part to commercial agreements like the Free Trade Agreement between Vietnam and EU (FTA) and the Trans Pacific Partnership (TPP), still under negotiation. When FTA takes effect by 2015, import tariff on several kinds of footwear exported to the EU will slash to zero percent. According to the Vietnam Leather and Footwear Association (Lefaso), TPP will bring many opportunities for Vietnamese businesses to expand their market. The current import tariff of 14.3 percent to the US market will fall to only zero percent when this agreement takes effect. Vietnam is now the second largest footwear export country after China, for the EU and US markets. Lefaso expects that footwear exports will reach US$8 billion this year, an increase of about 10 percent over last year. HCMC to boost key export items Ho Chi Minh City has set targets to boost more export growth and restrict imports this year, with focus mainly on key export items. Huynh Khanh Hiep, deputy director of the Department of Industry and Trade in HCMC, said plans are in place to strengthen production and export competitive items such as mechanical, nano and soft ware products. To achieve this, City leaders will boost trade promotion between the City and the Ministry of Industry and Trade, open new markets and improve export turnover. Along with this, the City will focus on exploiting the traditional market, major markets and develop more markets at border crossings of Laos, Cambodia and China. Enterprises are being encouraged to expand scale of operations, improve production technology and technology transfer with foreign counterparts. Firms are also being encouraged to use domestic-made materials to limit imports. At the same time, synchronized measures should be conducted to increase exports of agro-aqua products and tighten imports. Enterprises should rearrange production, enhance productivity to improve quality and decrease price, to meet fierce competition.  Meanwhile the government will review and change inappropriate policies and mechanism, and reduce taxes to help enterprises survive in the global economic crisis. The City will organize fairs and meetings between local firms and foreign counterparts to help enterprises reduce inventory. The City estimates that export turnover will thereby reach $34 billion, an increase of 13.5 percent. If crude oil export turnover is excluded, turnover will be $24.2 billion, a year-on-year increase of 12.2 percent. The domestic sector will account for 70.2 percent of the entire turnover or equivalent to $23.88 billion, an increase of 13 percent against last year while the foreign investment sector will reap $10.12 billion, a year-on-year increase of 14.6 percent. Three key traffic projects inaugurated in Da Nang City On occasion of the 38th anniversary of South Vietnam Liberation and National Reunification Day, on April 30, the People’s Committee in the central city of Da Nang inaugurated three key traffic projects. The Nguyen Tri Phuong Bridge, the Khue Dong Bridge and Vo Chi Cong Road were inaugurated on the auspices of Vietnam Reunification Day. The World Bank has invested VND1.22 trillion (US$58.62 million) in the three projects, of which, the 802m Nguyen Tri Phuong Bridge cost VND540 billion, 417m Khue Dong Bridge cost VND370 billion and 5.2km Vo Chi Cong Road cost VND310 billion. On the same day, Nguyen Van Binh, Governor of State Bank of Vietnam, and Victoria Kwakwa, director of WB in Vietnam, signed an agreement to finance some major sustainable development projects in Da Nang City. The projects will use up $270 million, of which the WB will provide $200 million, whereas the remaining fund will come from the City budget. Investor of the projects, namely, the Da Nang City Department of Transport, will be responsible for upgrading the drainage and sluice system in the City, develop a bus rapid transit service and some urban road projects--among few others. World-class Laguna Lang Co resort operational Banyan Tree Group of Singapore on April 27 put into service the integrated resort complex of Laguna Lang Co located in Lang Co town, the central province of Thua Thien-Hue. Laguna Lang Co is Banyan Tree’s first fully integrated world-class hospitality development in Vietnam. Framed by three kilometres of beach and lush countryside, the 280-hectare resort near Lang Co Bay in the Chan May region overlooks the East Sea. The area is famous for its pristine beauty, tropical jungles and rugged mountain peaks. It is an ideal base for tourists to explore UNESCO-recognised world heritage sites such as the ancient imperial capital of Hue, Hoi An ancient city and the relics of My Son. This unique holiday destination is a world unto itself, comprising the Banyan Tree and Angsana branded hotels and resorts, award-winning spas, convention facilities and an array of recreational offerings including a championship golf course. The 18-hole, par-71 course is expected to bring a wonderful golfing experience to both expert players and beginners alike. Over 2.4 mil int’l visitors to Vietnam in four months Vietnam welcomed nearly 614,000 foreign visitors in April, bringing the total number of foreign arrivals to more than 2.4 million in the first four months, according to the General Statistics Office. Of the total, 1.5 million arrived in the country for holiday, 407,000 for business purposes (down 5.4 percent), and 401,000 for visiting relatives (down 9.1 percent) and 120,000 for other purposes. Vietnam’s major tourism markets saw impressive growth, including Russia (up 51 percent), Thailand (32.5 percent), Indonesia (26.4 percent), New Zealand (up 20.9 percent) and Malaysia (7.1 percent). Tourist arrivals increase sharply The number of tourist arrivals increased sharply during the past five-day holiday in celebration of National Reunification Day and May Day. They were attracted to wide range of cultural activities, such as Lao Cai’s festival in the clouds, Quang Ninh’s Ha Long Carnival, Haiphong’s Do Son- the Calling Sea, Thanh Hoa and Nghe An’s sea tourism festivals, Thua Thien Hue’s traditional craft festival, Danang’s International Fireworks Festival, and many other places of interest like Nha Trang, Da Lat, Mui Ne, Can Tho, Vung Tau and Phong Nha-Ke Bang received a large number of visitors. According to initial reports, the number of tourist arrivals in Nha Trang was estimated at 90,000 and those in Vung Tau, over 80,000, nearly 30 percent higher than last year’s figure. In the island district of Ly Son, Quang Ngai province, visitors enjoyed attending the Feast and Commemoration Festival for Hoang Sa Soldiers and a ceremony held by the local administration to receive a national cultural intangible heritage certificate. Nguyen Cong Hoan, Deputy Director of the Hanoi Redtour, said the company served around 5,000 customers during the holiday, including 3,000 on out-bound tours to Thailand, Singapore, Malaysia, Hong Kong, China, Cambodia, Laos and Myanmar at reasonable prices. The Vietnam International Travel Mart (VITM) held by the Vietnam Tourism Association offered a 20-percent discount for some 6,000 tours. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR