BUSINESS IN BRIEF 21/6 Tonkin Gulf oil exploration accord signed The fourth amended agreement for the Viet Nam-China Joint Exploration Accord for the Bac Bo (Tonkin) Gulf, signed by PetroVietnam and the China National Offshore Oil Corporation (CNOOC) yesterday expanded the Defined Area, crossed by the demarcation line, for joint exploration to 4,076sq km from 1,541sq km, covering two equal parts on each side, and extended the validity of the Joint Exploration Accord to the end of 2016. The Viet Nam-China Joint Exploration Accord was reached by PetroVietnam and CNOOC on November 6, 2006, and came into force on January 2, 2007. The Joint Exploration Accord in the Bac Bo (Tonkin) Gulf is carried out by both sides with expenses divided equally. In case commercial oil and gas are found at the Defined Area, the two sides will discuss to move to a joint exploitation stage in line with international practice and each country's law with a view to respecting sovereignty and the sovereign rights of each country in the Bac Bo (Tonkin) Gulf region, and ensuring the interests of both sides. Phu My 3 industrial park under construction Construction work on Phu My 3 industrial park in Tan Thanh district of Ba Ria-Vung Tau province on started on June 19. With an investment of US$345 million, the 999ha Phu My 3 IP, designed by Nikken Sekkei Civil Engineering of Japan, will be divided into four main areas designed for multi-sector and support industry, heavy industries, a port and logistics services, and utility services. At least 300ha of land will be earmarked for Japanese investors. All domestic and foreign firms are entitled to preferential taxes while operating in the complex. Located in the country’s largest economic and consumption hub, Phu My 3 is close to Cai Mep-Thi Vai deepwater port, National Highway 51 and Bien Hoa-Vung Tau expressway. This is one of the two industrial parks in a joint venture between the Vietnamese and Japanese Governments to support Japanese companies operating in Vietnam. The second one will be based in Haiphong port city. Hue hosts 6th Vietnam Economist Annual Meeting Scientists and managers from leading institutes and development organisations in France, the UK, US, Australia, Japan, China and Vietnam have gathered at the 6th Vietnam Economist Annual Meeting (VEAM) in the central city of Hue on June 18-19. Fifty reports were presented with a focus on financial, economic management, policies and growth, and climate change, which are considered hot issues in Vietnam’s current socio-economic development. The event is being held jointly by the Hue University College of Economics, the Development and Policies Research Center (DEPOCEN) and the French National Center for Scientific Research (CNRS). Associate Professor Dr. Nguyen Van Phat, Rector of the College of Economics, said the meeting provides excellent opportunity for Vietnamese universities to access the results of research by international economists. Seminar discusses support for hi-tech exports Preferential policies to encourage the export of hi-tech products should receive more attention, said President of the Ho Chi Minh City Informatics Association Chu Tien Dung at a seminar in HCM City on June 19. Le Bich Loan, deputy head of the city’s hi-tech zone management board, said that the zone has 71 licensed projects capitalized at US$2.240 million and began exporting products several years ago. In the first five months of this year, the zone exported a total of US$5.269 million in products, generated 16,900 jobs and contributed VND300 billion to the State budget. Dung recommended some solutions to boost hi-tech exports such as increasing trade promotions, developing a national trademark for hi-tech products, and creating incentives for training qualified IT staff for businesses, as well as simplifying formalities to help businesses hire qualified, effective people to assume key positions. He also asked the State to facilitate foreign direct investment (FDI) attraction and continue providing preferential support for corporate income tax and import tax for IT product manufacturers and exporters. Last year, hi-tech exports in HCM City reached US$2.46 billion, three times higher than 2011’s level and accounting for 11.4 percent of the country’s total export turnover (excluding crude oil). The Intel Group in the city’s hi-tech zone exported US$1.9 million worth of products alone. Asia and the US are the primary markets for these products. ADB-funded project brings power to Lai Chau province Households in 31 mountainous communes of northern Lai Chau province will soon gain access to electricity under a project to improve the province’s rural power grid.   The project is part of an Asian Development Bank (ADB)-funded programme to develop renewable energy, expand the power grids to remote rural areas. The two-phase programme has a total capitalization of over VND948 billion (US$45 million), including US$30 million from ADB. The first phase is expected to complete later this month, with 5,758 households in Lai Chau province and 7,944 others in Dien Bien province gaining access to electricity. By the end of 2014, the project will provide electricity to 14,487 households in 48 communes in eight districts of Dien Bien province and 16,207 households in 53 communes in six districts of Lai Chau province including Than Uyen, Tan Uyen, Phong Tho, Tam Duong, Sin Ho and Muong Te. It will help raise the number of families getting access to electricity in Lai Chau province from 61 percent to 79 percent and in Dien Bien from 67.9 percent to 81 percent. Central region’s rural infrastructure gets additional funding The Prime Minister has agreed upon an additional loan for the project to develop rural infrastructure in 13 central provinces. The non-refundable aid worth US$200,000 will be provided by the Asian Development Bank (ADB), according to the Vietnam Government Portal (VGP). The small-scale technical assistance project targets to better living conditions for rural residents in 13 central provinces by providing them with better access to markets, agricultural and social services like healthcare, job generation, education and natural disaster mitigation. The PM has assigned the Ministry of Planning and Investment to sign the loan agreement in line with the regulations. Italy, Vietnam promote finance, investment ties A working group of the Vietnamese Finance Ministry led by its Deputy Minister Do Hoang Anh Tuan is on an official visit to Italy scheduled for June 15-20. At a meeting with his Italian counterpart Stefano Fassina on June 17, Tuan hailed Italy’s important role in the EU market and its economic cooperation with Vietnam. The number of foreign direct investment (FDI) enterprises in Vietnam accounts for 25 percent of total businesses operating in the country and those from Italy are playing an important role. Many Italian products, including sanitary wares and electric water heaters and Piagio scooters, are on sale in Vietnam. However, he said direct investment from Italy to Vietnam remains modest and does not match the two countries’ potential. He expressed his hope that the two Governments and Finance Ministries will work out practical programmes to boost bilateral cooperation in the field of financing, customs, tax and debt management. Deputy Minister Fassina said the Italian Government and banks always create favourable conditions for their investors to operate overseas, including those in Vietnam. During the meeting, Italian representatives and experts shared their experience in building corporate and personal income taxes and finding solutions for the current public debt crises in European countries. Later on June 19, the Vietnamese working group will meet with with Florence Customs officials to share experiences in customs management at local levels. Luxembourg assists Vietnam finance sector to develop Vietnam has praised the Government of Luxembourg’s cooperation and support, especially in the finance sector. Truong Chi Trung, Deputy Minister of Finance made the remark at the Vietnam-Luxembourg Finance Forum in Hanoi on June 18, as part of activities to mark 40 years of the two countries’ diplomatic ties. Trung said Vietnam’s financial market is in its infancy and its potential is huge. “Vietnam aims to develop the financial market in an efficient, open, transparent manner, and up to international standards to create important funds and channels for the economy,” he said.“it is developing regulatory tools to enable the market’s stable development, to protect investors and internet services for users.” Trung said Vietnam has received invaluable support from Luxembourg in forms of experience sharing, capacity building and system equipment. Over the years, Luxembourg hasachieved the highest growth rate in the European Union. The service sector and banking and financial services are the main drivers of that growth. Trung said the two countries have signed a protocol on a project titled Development of capital markets in Vietnamwith a grant of EUR3 million. In addition, in the Vietnam-Luxembourg 2010-2015 ICP, Luxembourg had financed the projects in prioritized areas of development in Vietnam. Sameer Goyal, co-ordinator of the World Bank’s Financial and Private Sector, said Vietnam faces challenges in financial sector restructuring because legal, regulatory and supervisory framework is yet to meet international standards and practices. He said banking sector assets have nearly doubled the Gross Domestic Product (GDP) and required large resources while the Government did not have fiscal space. The Government should maintain consumer confidence and undisrupted services, he said, adding that improving corporate governance is a must as bad management led to weak institutions. Nguyen Thi Lien Hoa, vice chairman of the State Securities Commission (SSC), spoke about the achievements of the two countries in developing Vietnam’s securities market. Hoa said Luxembourg has helped the SSC draft professional manuals, finalize a legal framework governing operations in the market and support the legislation process in creating a legal framework for new products. Andrew Capon, banking and finance consultant, Lux-Development (LuxDev) said he looksforward to working closely withthe SSC and other project beneficiaries to strengthen the Vietnam securities market. It would use a pragmatic and practical approach, stirring cross-institutional co-operation and responding to tactical needs of all players. Luxembourg Ambassador to Vietnam Marc Thill said his government is ready to give further support through vocational training and technical assistance. “We are pleased to see steady progress in our economic relations with Vietnam and we are happy to continue to promote Luxembourg’s experience and know-how in the financial sector,” he said. Luxembourg is one of the leading financial centres in the world. It is host to 141 banks and 243 institutions active in sectors of insurance and re-insurance. The country holds an impressive six percent market share in international private banking. Within the international fund industry, it is second rank behind the US while it has become a leader in the cross-border distribution of investment funds. Terumo builds medical equipment factory in Vietnam The Japanese Terumo Vietnam Ltd Company has inaugurated a medical equipment factory in Hanoi’s Quang Minh Industrial Zone. At a ceremony on June 18, Oguma Akita, Managing Director of Terumo Group, said the US$96 million Terumo factory will manufacture and assemble medical machinery and equipment, especially Catheter tubes for patients suffering from heart disease. It is expected to employ around 1,000 labourers from Vietnam and Japan. Terumo considers Vietnam as a major supplier of Catheter tubes for many countries in the world. In 2012, it started building a similar factory in southern Dong Nai province, which is scheduled for completion in 2015. Vietnam joins ICT conference in Singapore Representatives of the Ministry of Communications and Information and 23 businesses of Vietnam are participating in information and communications technology (ICT) conference and exhibition in Singapore from June 18-21. The event has drawn more than 50,000 attendees from 2,000 companies of 56 countries around the world. Over 350 industry experts are also gathering at the conferences to share their knowledge and experience with delegates. Participants at CommunicAsia2013, EnterpriseIT2013 and BroadcastAsia2013 will experience a showcase of the latest ICT developments and trends, broadcast, digital multimedia and entertainment technology industries. At the opening ceremony on June 18, Yaacob Ibrahim, Singaporean Minister for Communications and Information, said that this is Asia’s largest ICT and media showcase of the latest information and media technologies and solutions. “CommunicAsia2013, EnterpriseIT2013 and BroadcastAsia2013 serve as a perfect platform for professionals from the various industries to explore, network and create new relationships and opportunities that will benefit all parties,” said Stephen Tan, Chief Executive of the show organiser, Singapore Exhibition Services. Fifteen Vietnamese businesses which are participating in the CommunicAsia and EnterpriseIT exhibitions include FPT Information System, Mobifone and VNPT Global. They are among the 1,328 companies showcasing their latest products at the two exhibitions, including Over-the-Top (OTT), cloud computing, mobile applications and innovations, mobile broadband, LTE/4G, satellite communications, NFC and mCommerce. The eight other companies from Vietnam are joining 708 foreign partners in the BroadcastAsia2013, which stages the latest updates across the entire broadcasting and film ecosystem, from acquisition, production and management systems to post production, distribution and delivery. The show covers a multitude of technologies, including Connected Digital/SmartTV, Over-the-Top (OTT), Multi-Screen Streaming, Digital Media Asset Management and Storage. Besides participating in conferences and exhibitions, Vietnamese businesses will work with partners from the UK, Australia, Malaysia and others on further cooperation. HCM City seeks Korean IT partnerships HCM City hosted a June 18 exchange conference between more than 50 information technology (IT) businesses from Vietnam and the Republic of Korea (RoK). Attendees were introduced to the latest microchip and software development projects and the market’s latest computers and mobile phones. The Ho Chi Minh City Computer Association (HCA) and the Korean Daegu Mobile, Information, and Communications Centre signed a memorandum of understanding pledging support to businesses seeking distributors, expanding markets, and transferring new technologies. In early June, 12 Korean leaders in microchip technology, electronics, and information and communications technology (ICT) visited Vietnam on a quest for suitable Vietnamese partners. Vietnam currently exports the fourth most ICT products to the RoK. In 2012, Vietnam’s Korean imports - mainly electronic components - were valued at US$5,7 million. Banks offer low rate loans to businesses Sacombank and seven other banks yesterday signed credit contracts worth more than VND1,209 billion (US$57.5 million) to support 44 businesses and six households in District 9 and Thu Duc District. The other banks are Agribank, Vietinbank, BIDV, DongA Bank, Eximbank, HDBank and OCB. Sacombank will offer a total of VND50 billion ($2.38 million) in support for 13 businesses at interest rates beginning at 10 per cent per year. The signing ceremony was chaired by the State Bank of Viet Nam's HCM City Branch in collaboration with the HCM City Department of Industry and Trade, and the People's Committees of District 9 and Thu Duc District. Since the beginning of this year, Sacombank has offered 15 preferential packages worth a total of VND19,450 billion ($926.19 million) and $90 million to support businesses and individuals following policies set by the Government and the State Bank of Viet Nam. TienPhong raises charter capital TienPhong Bank has raised its charter capital from VND3 trillion (US$142.9 million) to VND5.55 trillion ($264.3 million). The bank recently received permission from the central bank to trade Government and corporate bonds on the domestic market. Last month it signed an agreement with the Bank for Investment and Development of Viet Nam (BIDV) to boost co-operation in areas including capital sources, currency and gold trading, payment, cash management, retail banking, non-life insurance, information technology services and high-tech and support industries. New insurance firm opens doors The PVI Sun Life Company has become the latest life insurance company to do business in Viet Nam, launching its operation and sales on Sunday in HCM City. The company, which received its licence in January, has a charter capital of VND1 trillion (US$48 million) 51 per cent of which is accounted for by local firm PVI Holdings; and the remaining 49 per cent by its Canadian partner, Sun Life Financial. Initially, the new company is offering termed return of premiums and personal accident products. It plans to add several products later on, including healthcare, retirement and corporate solutions. Nippon Paint factory building begins Nippon Paint yesterday began construction of its new factory that will produce industrial paint for automobiles and motorcycles, heavy duty coatings, decorative paint, marine coatings and resin in northern Vinh Phuc province. Covering a 60,000 square metre area in Vinh Phuc's Ba Thien II Industrial Zone, the plant has registered investment capital of US$14 million for the next five years, planning to add up to 500 new jobs. Nippon expects to finish the first phase of the plant and start operation in February next year. This is the first project in Ba Thien II Industrial Zone, playing a meaningful role in attracting more projects to a new industrial zone like Ba Thien in Vinh Phuc, said Chairman of the provincial People's Committee Phung Quang Hung. Nippon Paint has had a presence in Viet Nam since 1994 through its first facility in Bien Hoa Industrial Zone II in the southern province of Dong Nai, followed by the opening of its second facility in 2006 in Ha Noi's Quang Minh Industrial Zone. Samsung Vietnam gets tax breaks for giant plant Thai Nguyen has announced tax breaks and other incentives for the four plants Samsung plans to build in the northern province. Work began three months ago on a hi-tech complex in the Yen Binh Industrial Zone in Pho Yen District, and in a statement on its website, the province administration said Samsung would start receiving the incentives after it satisfies investment requirements. A US$2 billion cell-phone and tablet-computer factory does not have to pay tax for the first four years of operation and will get a 50 percent break for the next 12 years. The other three – work on which has yet to start – including a $1.2 billion unit in the complex that will assemble microprocessors and integrated circuits, will have their infrastructure rentals subsidized by 50 percent. A tax official said on the website that the complex would be paying tax of at least VND700 billion ($33.4 million) from its fifth year of operation. The handset plant is scheduled to begin production later this year with an annual capacity of 100 million phones and other electronic devices. Samsung opened its first plant in Vietnam – and second largest handset factory worldwide after its Kumi plant in South Korea – in Bac Ninh in 2009 with an initial investment of $670 million. It expanded the plant last year, with the total investment rising to $1.5 billion. That plant too received several incentives, including tax breaks. Samsung's exports from Vietnam last year were worth $12.7 billion, more than 11 percent of the country's total exports. Prime Minister Nguyen Tan Dung was quoted by news website VnExpress as saying at the ground-breaking ceremony for the Thai Nguyen complex last March that the company's exports are expected to top $20 billion each year. Domestic automobile market on the rise Automobile sales in May reached 9,731 units, representing an increase of 42 percent year-on-year and 11 percent against the previous month, the Vietnam Automobile Manufacturers’ Association have revealed. May was the second successive month that automobile figures have improved from the same period in 2012 and the fourth consecutive month that figures have bettered the previous month. Toyota led the market after selling 2,800 cars, (up 74 percent year on year), followed by Thaco Truong Hai with 2,338 units sold and Ford with 620. Visuco (Suzuki) recorded a year-on-year increase of 116 percent by selling 361 units. GM Vietnam and Honda Vietnam sold 328 and 287 respectively. The VAMA attributed the heated auto market to a cut in car registration fees by 10-15 percent, which is expected to help the market maintain its performance over the months to come. The association has raised its forecast of total car sales this year from 80,000 units to 100,000, as a flock of new models have recently made their debut in Vietnam, including the Nissan Sunny, Honda City, Hyundai Elantra and Porsche Cayman. Vietnam sells 3 million tonnes of rice abroad Vietnam shipped nearly three million tonnes of rice between January 1 and June 13, raking in over 1.3 billion USD, the Vietnam Food Association (VFA) has reported. In the January –May period, almost 2.8 million tonnes of rice worth 1.2 billion USD were sold abroad, representing a year-on-year increase of nearly 10 percent. This included a shipment of 650,000 tonnes which earned the country for 273 million USD in May. According to the Ministry of Agriculture and Rural Development, the Mekong Delta – Vietnam’s rice production hub - is expected to yield 9.3 million tonnes of rice in this year’s summer-autumn crop. The region is also targeting to harvest 4.6 million tonnes of husked rice, 3.1 million tones of which will be designated for trade. Under its rice cultivation strategy, 70 percent of farmland in the region has been set aside to grow high-quality rice varieties for export. Local farmers have begun farming disease-resistantvarieties and adopting proper technical methods such as the Integrated Pest Management (IPM) system to improve productivity and cut farming costs. VFA forecast that rice export this year can reach 7.5-7.6 million tonnes. Last year, the country shipped a record 7.72 million tonnes of rice, earning 3.45 billion USD, based on VFA statistics.- Can Tho leads Mekong Delta in processing industry The Southern province of Can Tho leads the Mekong Delta region in the processing industry, with production value reaching over VND 5.8 billion in May, according to the Steering Committee for the Southwestern region. The processing industry turned out VND29 billion worth of products for the January-May period, up 7.5% over the same period last year, while the total industrial production value in the period came to VND31.6 billion. Can Tho province has designed development plans for key industries and products, such as processed agricultural and aquatic products; mechanical products for agriculture; metal, chemical and pharmaceutical products; plastic goods, garment, consumer goods and electrical and electronic industries. The province is now promoting the application of technology and advanced technique in production. It has also stepped up trade promotion and provides assistance to enterprises in seeking and expanding export markets. The locality has opened more industrial zones and encouraged economic sectors to join infrastructure development in the zones to further attract domestic and foreign investment. In addition, the provincial authorities have issued investment incentive policies, pushed up administrative reform, and provided support for enterprises to renovate technology and machineries, thus helping enterprises reduce product prices and raising their ability to compete in domestic and foreign markets. Rice exports hit US$1.35 billion Vietnam has earned US$1.350 billion from 2.969 million tonnes of rice exported since early this year. According to the Vietnam Food Association (VFA), over 180.8050 tonnes of rice were sold for nearly US$81.73 million in the first two week of June alone. In the Mekong Delta – Vietnam’s largest rice basket – the selling price of rice hovers between VND4,850-5,150/kg. On the domestic market, the prices of 5% and 25% broken rice are somewhere between VND6,400-6,500/kg and VND6,100-6,200/kg, respectively. Tra exports to reach US$800 million in six months Tra fish exports recorded around US$670 million in the past five months, down 6.7 percent from last year’s same period, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The figure is expected to reach around US$800 million at the end of this month, which is another decrease of 7.3 percent compared to the same period in 2012. Despite declining export value in some foreign markets, including the EU, the price of tra fish is predicted to become stable after importers return the market from the recent European Seafood Exposition (ESE) in Belgium, said the VASEP. The average price of frozen tra fillets in May was EUR 2.5 per kilo in Mercabarna, Spain, EUR 2.25-2.4 per kilo higher than the previous month. Despite difficulties in the EU market, tra exports to the US continued to increase, earning US$150.8 million in the first five months of 2013, up 3.8 percent against the same period last year. The average price of the frozen tra fillet in the US has gone up since the beginning of the year, and currently ranges between US$1.70 and 1.80. CMC Telecom in deal with Indonesia partner Telin International Telecom Company, a subsidiary of Indonesia’s biggest telecom group PT Telekomunikasi, signed a deal with Vietnam’s CMC Telecommunication Infrastructure Joint Stock Company (CMC Telecom) in HCMC on Thursday. The agreement helps expand the service network of Telin in Vietnam thanks to the pervasive infrastructure and services of CMC Telecom at home. Corporate customers of CMC Telecom can also benefit from international telecom service IP-VPN via the worldwide system of Telin. At the signing ceremony, Syarif Syarial Ahmad, president director of PT Telekomunikasi, said the bilateral cooperation is a milestone for jointly providing connection services between Vietnam and Indonesia. Nguyen Duc Thanh, general director of CMC Telecom, said the deal would help his firm better meet demand of corporate customers by making the most of Telin’s infrastructure. Investor withdraws from city’s traffic control project France’s Sagem Communication in Vietnam will withdraw from the traffic control center project in HCMC as it has stopped operating in the industry from last Saturday, and the city’s Department of Transport is considering another French firm as replacement. The transport department has proposed the city government to choose the French firm Aximun Produits Electriques to replace Sagem to continue this project. As designed, HCMC will develop a new traffic control center equipped with information technology to integrate control of traffic lights, close-circuit television (CCTV) cameras and electronic boards to better manage traffic flows. When metro lines in the city are put into use, the center will process data from control centers of the metro, bus, underground parking lot and expressway systems. The center will also send information to local people via websites, phones, electronic traffic signs and radio. The project will need an estimated cost of some US$187 million and use official development (ODA) loans. Traffic experts said that the construction of a traffic control center was very essential to a city having a high traffic density like HCMC. According to the HCMC Department of Transport, the city currently has over 1,400 intersections but only 590 of them have traffic lights. HCMC has two traffic light systems working independently with 400 intersections controlled by the urban traffic management unit and 159 ones managed by the HCMC Police Department. U.S. launches dumping probe into Vietnam pipes Nearly one month after three U.S. companies filed a dumping case against welded stainless steel pressure pipes imported from Vietnam, Malaysia and Thailand, the U.S. Department of Commerce (DOC) launched a probe a week ago into the possible dumping of this product on the U.S. market. The DOC will investigate welded stainless steel pressure pipe shipments that came from Vietnam from October 1, 2012 to March 31, 2013, according to the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade. The three U.S. companies suggested anti-dumping tariffs of 89.4-90.8%, 22.67-22.73% and 23.77-24.04% on the pipe shipments from Vietnam, Malaysia and Thailand respectively. In 2012, Vietnamese steel exports to the U.S. that were investigated over dumping accusations amounted to US$17.98 million in value, the DOC reports. Meanwhile, Vietnam last year exported US$16.3 million worth of 4,627 tons of welded stainless steel pressure pipes to the U.S., holding 6.61% of America’s total import, said the three U.S. firms. The U.S. International Trade Commission (ITC) will make a preliminary conclusion on injury, if any, to the steel industry on July 1, said VCA. If ITC concluded that Malaysian, Thai and Vietnamese products cause heavy injury or threaten to cause injury to the U.S. steel industry, the investigation would continue and the DOC would make a preliminary decision in October 2013. If neither injury nor threats of injury are found by the ITC, the investigation would be closed. This is the third U.S. anti-dumping case against Vietnamese steel makers since 2011. The two earlier cases involved carbon-welded steel pipes and steel hangers. As competition in the steel market is increasingly fierce, Vietnamese companies will find it hard to survive if slapped with high tariffs. There is a high possibility that Vietnamese firms would have no chances of staying in the U.S. market if they are levied high anti-dumping taxes. Dong Nam A Hamico Export Joint Stock Company posted total sales of over VND10.4 billion in the first quarter, tumbling nearly 80% year-on-year. The sale fall was ascribed to the anti-dumping and anti-subsidy cases that the DOC filed against Vietnamese steel hangers while the U.S. is its major market. Hamico is looking for other markets to offset the slide in exports to the U.S. The local steel industry from 2011 to 2012 struggled with five anti-dumping and two anti-subsidy cases initiated by the U.S., Brazil, Thailand and Indonesia. Mozambique mulls EZ for Vietnamese agricultural firms Mozambique’s Government will consider building at least one economic zone (EZ) for Vietnamese agricultural companies to lure investment into the nation. The HCMC branch of Vietnam Chamber of Commerce and Industry last Friday organized the Mozambique-Vietnam Business Forum in HCMC to introduce investment chances in the African nation to local enterprises. Vietnamese firms when investing in Mozambique will be entitled to incentives on land and corporate income tax in line with the nation’s Investment Law, Aiuba Cuereneia, Mozambique’s Minister of Planning and Development, said at the seminar. Vietnamese enterprises in Mozambique will be exempted 100% corporate income tax before 2015 and 50% from 2016 to 2020, he clarified. Mozambique now is seeking Vietnamese investment in agriculture, foodstuff and agro-product processing, fishing, seafood processing, mineral exploitation, telecom services and infrastructure. Mozambique now is among the top ten importers of Vietnam in Africa for rice, cement and electronic components. Meanwhile, Mozambique mainly exports unprocessed cashew and processed woodwork products to Vietnam. Mozambique plans to sign an investment protection agreement and another on double taxation avoidance with Vietnam in the near future. Vietnam’s military-run telecom company Viettel won a bid to tap the mobile market in Mozambique in 2010, while Professor Vo Tong Xuan, a Vietnamese agronomist, supported Mozambique’s people with a wet rice farming technique a few years ago. Despite seeing it as a potential market, several Vietnamese agricultural entities have still found investment into Mozambique unattractive owing to technical barriers or poor infrastructure. For example, plenty of members of the Vietnam Cashew Association previously came to Mozambique to open cashew processing plants instead of importing crude cashew into the nation but they failed to do so as Mozambique’s banking system was then still underdeveloped. Microsoft and HPT signed a strategic cooperation agreement Today, Microsoft Vietnam and HPT Vietnam Corporation – a leading company in consulting, designing and deploying IT solutions in Vietnam, officially announced the commitment to strongly support software and service development for enterprises. This agreement will create a new direction to bring most benefits to customers of both companies as well as other domestic enterprises. Particularly, it would help HPT to become the only strategic partner of Microsoft in the field of software and optimised IT service for Vietnam enterprises. According to the agreement, Microsoft will be the senior advisor as well as trusted strategic IT partner of HPT in software and service development for enterprises. Both sides will work together to aim to develop solutions based on Microsoft platform including enterprise content management, business intelligence & analytics, customer relationship management, unified communications and data warehousing. Moreover, HPT and Microsoft will work together and expand opportunities in approaching market and technology to effectively serve customers’ business activities in various sectors and business models in Vietnam. “Bilateral cooperation between Microsoft and HPT in software and IT service development for enterprises marks an important milestone in improving IT affect in future business activities of enterprises. With our global experience, Microsoft will support HPT to continuously improve their products and services quality to create difference,” said Vu Minh Tri, country manager of Microsoft Vietnam. “Microsoft has also pledged to support HPT deploying activities related to products and services for enterprises such as educating, updating and transferring technology; workshops, sharing practical experiences and consulting international standards in this sector.” Dinh Ha Duy Linh, HPT general director said: “As a strategic partner of Microsoft since 2000, HPT believes that this partnership would bring new added value to our customers. Despite the difference of each enterprise, a proper IT solution is always necessary for development and success. Through products and services based on Microsoft platform, HPT is now helping enterprises to maintain profitable loyal customer relationships, creating and improving products, services, business cycles and models towards efficiency and professionalism.” HPT consults and provides copyrighted software, system solutions and services, IT infrastructure, operating and general management solutions for data centre based on Microsoft products and technology. “To enhance performance and simplify the complicated rules while using devices, work out simple but flexible interface and design is Microsoft’s commitment when they provide over one billion Microsoft users with their solutions and devices. I believe that with HPT’s impressive experience in providing solutions and services as well as Microsoft’s best global experience, this strategic partnership will help HPT and Microsoft to bring out the most optimised, profitable and different solutions and service for Vietnamese customers,” said Pham Tran Anh, director of Small and Medium Enterprise Groups at Microsoft Vietnam. Export value hits over US$50 billion According to the Viet Nam General Administration of Customs, exports have brought home US$50.65 billion, higher than the estimated value of US$49.94 billion, in the first five months of this year. Export growth was recorded by both domestic and foreign direct investment (FDI) sectors. The FDI sector’s export turnover of US$33.54 billion, however, surpassed the domestic economic sector’s value of US$17.11 billion. Their contributions were 66.2% and 33.8% to the total export value, respectively. The FDI sector’s export values of such products as crude oil, camera, camcorder, phone, computer, machine, transportation vehicle, electronic and glass products and related accessories, also made larger segments than those of the domestic economic sector in the total export value. This reality shows that the domestic economic sector is facing competition right at home. Thirty export lines made year-on-year rises while 11, including coffee, rice, coal, petroleum, fertilizer, rubber and sea food, faced decreases compared to the same period last year due to falling export prices, which cost them a reduction of US$879 million in earnings. Among the country’s 80 export markets, 36 have generated over US$100 million each and 14 other gave over one billion US$ each. Trade deficit in May was lowered to US$548 million, making that of the first five months of this year worth US$1,203 million, compared to the previous estimate of US$1,923 million. As a result, the VND per US$ exchange rate just increased 0.21% in May and 0.55% in the first five months. Boras pledges to fund Da Nang eco project Vice chairman of the Da Nang People's Committee Nguyen Ngoc Tuan has revealed that the central city will cooperate with Sweden's Boras City on a three-year environmental project. He said the administration of Boras City will help Da Nang enhance its waste management and recycling facilities with a total fund of 2.4 million SEK (7.6 billion VND or 384,000 USD). Boras administrators will also offer their expertise in treating hazardous waste at hospitals and efficiently processing garbage. Phu Quoc cancels two-billion-euro tourism project The government of Kien Giang Province has scraped its in-principle approval for the high-end ecological tourism project Asia Pearl having an estimated investment of two billion euro on Phu Quoc Island. The decision was made at a recent meeting with the island district of Phu Quoc on dealing with problems regarding site clearance and implementation of projects. According to the province, the project proposed by Trustee Suisse Group and Vinaconex Corporation was expected to consist of a financial center and an urban-tourism complex on around 2,000 hectares. Kien Giang agreed in principle to allow the investors to study and conduct investment procedures in 2007. However, necessary investment procedures have yet to be carried out. Although the province has many times urged the investors to accelerate the project’s implementation pace, there have appeared no signs of improvement. As a result, the province decided to shelf this project. In addition to the Asia Pearl project, the province has assigned the management unit of Phu Quoc Island investment and development to evaluate Toan Hai Van Joint Stock’s capability of carrying out the Vinh Dam complex project. If the investor is incapable, the project will be awarded to another investor. Having a total investment of VND1.2 trillion, the Vinh Dam project covering 305 hectares in the island’s Duong To Commune will consist of goods ports in combination with logistics services, tourism and entertainment services, restaurants, resort villas and public services. The province will first scrape the fish sauce production area and the fuel depot of this project. Tourist companies offer many attractive summer tours Vietnam Airlines and Saigontourist have jointly designed tour programs for elderly people offering interesting preferential rates and discounts. The program includes two tours from Hanoi to Bat Trang Pottery Village and Ha Long Bay for VND5.14 million and Da Nang-Hoi An-Hue-Thanh Tan hot mineral spring for VND3.86 million. More information is available on website www.dulichhe.com. In related news, Benthanh Tourist has introduced an attractive six-day tour of Korea this summer, offering a visit to famous tourist attraction sites in Seoul, Jeju and Nami at VND23.4million. More information is available on website www.benthanhtourist.com. Projects presented to Japan investors A delegation from the central province of Binh Dinh introduced 21 projects needing investment during a visit to Japan last week. Japanese investors targeted for these projects include Pacific Development, Elliott, Mitsui Sumitomo Finance & Leasing Bank, Sumitomo Corp, Tokyu Land, Mitsubitshi Estate Co, Recof Corporation, and Itochu Kenzai Corporation, according to the Binh Dinh Investment Promotion Centre. Soon after the delegation arrived in Japan, Le Huu Loc, Chairman of the Binh Dinh People's Committee, met with representatives of Vivace Kyoto and the Luen Thai Fishing Venture Ltd, major companies specialising in tuna fishing, processing and trading. These meetings are expected to facilitate business co-operation between Binh Dinh Seafood JSC and the two Japanese companies. Later, in meetings with Mitsui Sumitomo Finance & Leasing Bank and other Japanese firms, the Binh Dinh delegation presented many other projects, saying they welcomed not just foreign direct investment (FDI), but also BT (Build- Transfer) and PPP (Public-Private-Parnership) forms of investment. Among the FDI projects were: the US$300 million, 287ha Nhon Ly - Cat Tien sea tourism zone; the $400 million, 800ha Thi Nai Lagoon Eco-Tourism Zone; the $300 - $400 million Nhon Hoi Sea Port; and the $37 million, 17km expressway linking Phu Cat Airport with the Nhon Hoi Economic Zone. The delegation sought Official Development Assistance (ODA) or Build-Transfer funding for infrastructure development projects including the $400 million, 107km Quy Nhon - Tam Quan coastal highway. Binh Dinh has invited funding for projects to build a hospital, a tuna trading centre and further infrastructure development in the province's industrial parks. The central province has approved major development projects this year. It has asked a Thai company to complete investment application procedures for a $28 billion oil refinery in the province. In April, it granted a license to Russian company Buscentre Met to establish its subsidiary, Bus Industrial Centre. With an investment of $1 billion, the company's factory in Binh Dinh's Nhon Hoa Industrial Park will specialise in making buses, automobile components and farming machinery. Quang Nam mineral water plant targets 100cu.m per day The central Quang Nam Province inaugurated the Mineral Water Plant in Phu Ninh District on Saturday. The VND43-billion (US$2.05-million) plant is located on 5,700sq.m of land. It will exploit 100cu.m of mineral water each day from a mine in Phu Ninh Lake. At the ceremony, Hung Cuong Tourism investment joint stock company, the project investor, said the plant would increase the capacity to 190cu.m between 2014-19 with a total investment of VND100 billion ($4.7 million). The province has planned the 23,400ha Phu Ninh Lake as an eco-tour destination.- NZ group to sell colostrum supplements in Viet Nam New Zealand's New Image Group, which sells nutritional supplements made from cow colostrum, says its plan to penetrate the Southeast Asian market by starting a representative office in Viet Nam. Colostrsum, also called foremilk, is a thin, yellowish fluid secreted by the mammary glands at the time of parturition that is rich in antibodies and minerals, and precedes the production of true milk. Because it is rich in nutrients, some claim bovine colostrum is good for the immune system and general health, although few scientific studies have been done to test its effectiveness in humans, according to National Business Review.- BKAV offers early warning system against cyber attack The Bach Khoa Anti-virus Centre has promised to help companies and other organisations combat cyber attacks by providing them early warning systems. Its Network Inspector will look for signs of an attack and warn administrators through text messages or email. "In fact, online attacks are happening quietly around the world, even in Viet Nam, and not easy to find until they cause obvious damage like data loss and even system breakdown," Nguyen Minh Duc, director of network security at BKAV, said. Most Vietnamese companies lack early warning systems against online attacks. BKAV Network Inspector has two different kinds of equipment and software for small- and medium-sized firms and large ones. Since 2012 around 3,000 Vietnamese firms have been attacked. Hiep Phuoc Power posts US$5 mil. loss Hiep Phuoc Power Company Limited (HPPC), which is currently negotiating to continue to sell power to Vietnam Electricity Group (EVN), has announced it suffered a total loss of up to US$5 million after two years of halting its operation. Meanwhile, EVN is also considering a power purchase from HPPC with electricity demand varying in line with seasons, said Pham Hong Tien, director of operation of Hiep Phuoc power plant. HPPC has incurred a combined loss of US$5 million since August, 2011 as it has had to spend a huge sum on maintenance services for the electricity plant to avoid technical problems while awaiting power purchase from EVN, Tien told the Daily on Monday. With a designed capacity of 375 MW, Hiep Phuoc power plant came on stream a decade ago with total investment of US$280 million, using oil for its operation. Meanwhile, Duyen Hai Power Company as its key power customer has since August, 2011 shifted to using the national grid to supply for enterprises in Tan Thuan Export Processing Zone, Hiep Phuoc Industrial Park and Phu My Hung urban area. Speaking with the Daily on Monday, Pham Quoc Bao, deputy general director of HCMC Power Corporation, said his firm now is trading power in line with competitive market mechanism, with suppliers offering low prices adopted first. As such, power factories running on oil will be the last choice of EVN due to their high production costs. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR