BUSINESS IN BRIEF 21/7 Japan helps Vietnam develop quality human resources Vietnam and Japan have signed and exchanged notes on a human resource development project funded by the Japanese government during the 2013–2014 fiscal year and beyond. Vietnamese Minister of Education and Training (MOET) Pham Vu Luan and Japanese Ambassador to Vietnam Yasuaki Tanizaki were signatories to the notes at a ceremony in Hanoi on July 18. The project was started in 2000 and as of 2012 the Japanese Government had sponsored more than 360 Vietnamese students’ educational tours to Japan with a total cost of approximately 5 billion Japanese yen. Around 30 more local students are expected to continue their studies in Japan for the 2013-2014 academic year, starting in August 2013. The project’s graduates will be valuable contributors to Vietnam’s national economic development and strengthen bilateral relations, Minister Luan said. He thanked Japan for its funding of human resource training, saying it has helped Vietnam improve the quality of its labour force. He urged the Japanese Government to continue to sponsor Vietnamese trainees into the future and seize any opportunities for expanding bilateral educational cooperation. Ambassador Yasuaki Tanizaki said Japan has cooperated with a number of Vietnamese tertiary institutions, including the Mekong Delta region’s Can Tho University. In addition to its labour benefits, human resource training cooperation also fuels infrastructure upgrade and administrate management improvements. MOET International Relations Department Chief Tran Ba Viet Dung and the Japanese International Cooperation Agency’s Chief Vietnam Representative Mori Mutsuya also signed a 300 million Japanese yen financial assistance agreement on the same day. Vietnam-Laos Trade Fair opens in Vientiane Vietnamese and Lao businesses are showcasing their products at a trade fair, which opened in Vientiane on July 18. On show are agricultural and fisheries products, processed food, beverages, garments, electronics, electrical appliances, plastics, household utensils, machinery, industrial equipment, construction materials, pharmaceuticals, medical equipment, timber products, and handicrafts. The event is part of the Vietnam National Trade Promotion Programme and organised within the framework of the cooperative agreement between the two countries’ Ministries of Industry and Trade. Both Ministries’ representatives described the fair as a bridge between their nations’ respective trade organisations, producers, and investors, facilitating experience, technology transfer, and cooperation. It also provides a valuable opportunity for Vietnamese businesses to promote their trademarks and deepen their understanding of the Lao market’s particular demands. Machinery exhibition attracts foreign businesses The 21st International Industrial Machinery Exhibition (IIME VIETNAM 2013) opened in HCM City on July 18, attracting more than 100 domestic and foreign businesses. Many of the participating companies come from Germany, Hong Kong (China), Malaysia, the US, Japan, France, Singapore, China, Australia, Italy, Thailand, and the Republic of Korea. The three-day exhibition showcases the latest machinery and technology used in the production of plastics and rubber, tools, printing, food packaging, industrial automation, construction and architecture, firefighting equipment, and air conditioning systems. It also encompassed three workshops on “Strengthening Capacity and Maintaining Plumbing Quality Standards”, “2006/42/CE Machinery Standards", and "Fire Prevention Measures". IIME VIETNAM has been held every year since 1993 to help technology and industrial machinery businesses promote their products to Vietnamese customers. Vietnam-India trade hits US$2.6 billion Two-way trade turnover between Vietnam and India totalled US$2.592 billion in the first half of 2013, a year on year increase of 40.3%. The General Department of Vietnam Customs reported Vietnam’s exports to India contributed US$1.160 billion to the total (up 53.7%) while its imports amounted to US$1.432 billion (up 31.1%). Vietnam’s import surplus dropped 19.5% to US$272 million. The India-based Vietnam Trade Office noted India is now one of Vietnam’s ten largest trade partners. Vietnam’s five key export commodities are telephones and components (US$511 million, up 323%); computers, electronics, and components (US$79.7 million, up 58.8%); coffee (US$35.4 million, up 39.7%); machinery equipment and tools (US$69.5 million, down 29.8%); and natural rubber (US$40.5 million, down 12.8%). Its main imports are animal feed, corn, cotton, steel, and pharmaceuticals. RoK, Vietnam diversify industrial cooperation Hanoi hosted a July 18 seminar discussing measures to boost industrial cooperation between Vietnam and the Republic of Korea (RoK). The event, held by the Vietnam Academy of Social Sciences and the Korea Institute for International Economic Policy, attracted a large number of senior officials, researchers, and scholars representing both countries. The participants focused on industrial policies, economic zones, commercial networking, and vocational training. They also debated workarounds for the ongoing impact of the global financial crisis. Delegates complimented Vietnam’s national industrialisation and modernisation achievements, highlighting its policies incentivising sea and border gate-based economic development. They noted Vietnam’s progress is still hampered by subsidies, outdated technology, and a lower quality labour force. Participants also warned Vietnam is one of the countries most vulnerable to climate change, urging a renewed emphasis on alternative energy development. Dr Nguyen Binh Giang, Deputy Director of the World Economics and Politics Institute, stressed there is plenty of opportunity for Vietnam and the RoK to cooperate in such areas as information technology, automobile assembling, garments and textiles, footwear, and support industries. Kyung Hee University Dr. Bokyeong Park said the Vietnamese government should offer small and medium-sized businesses more support as they strive to reform their production structures and apply recent technological advances. Exports to Myanmar up 99.41% Vietnam’s exports to Myanmar increased by 99.41% to US$99 million in the first half of this year. Its major items included steel, machinery and equipment, tools and means of transport. Meanwhile, the volume of wood and timber products, vegetables and seafood it imported from Myanmar was down 32.4% from a year earlier to just US$45.2 million. According to the Industry and Trade Information Centre, two-way trade turnover reached US$228 million in 2012 and was estimated at US$144.3 million in the first six months of this year (up 23.7%). There is high hope that it will hit around US$300 million by the end of this year and US$500 million by 2015. Vietnam’s investment capital in Myanmar is expected to exceed US$500 million this year and to hit US$1 billion by 2015. First Mazda tourism cars exported to Laos The first batch of 25 Mazda 2, Mazda 3, and CX-5 cars assembled in Vietnam reached Laos on July 19. Vina Mazda Company, based in Quang Nam province’s Chu Lai Open Economic Zone, says it will export around 300 cars to Laos and Cambodia in 2013, including 65 cars to Laos. Vina Mazda Director Pham Van Tai confirms that all Mazda cars exported to Laos meet Mazda Motor global standards. The company is expected to achieve deeper integration into the left-hand drive market in the region. Ha Tinh hosts 2013 int’l trade fair The central province of Ha Tinh, in coordination with the Ministry of Industry and Trade (MoIT)’s Trade Promotion Department, opened the 2013 International Trade Fair on July 18. The event was in the framework of the national trade promotion programme aimed at implementing the memorandums of understanding (MoUs) reached at the high-level meeting of nine provinces from Vietnam, Laos and Thailand sharing highways No8 and 12. The fair, the largest of its kind in Ha Tinh, attracted 250 local and foreign businesses with 500 pavilions showcasing products and services ranging from consumer goods to luxury.  It is expected to boost export activities and facilitate economic integration between Ha Tinh and other localities in the East-West Economic Corridor. On this occasion, seminars on trade and investment promotion were also held for domestic and foreign businesses to seek cooperation partners. Bag, suitcase, umbrella exports aim for over US$1.7 billion Vietnam fetched US$169.71 million from exporting bags, suitcases, and umbrellas in June (up 22.34% from a year earlier), bringing the total export earnings in the first half to US$911.62 million, or a year-on-year increase of 21.74%. According to the Vietnam Leather and Footwear Association (Lefaso), the figure will likely reach more than US$1.7 billion by the end of this year. Among large importers were the US, Japan, Germany, Belgium, the Republic of Korea, the Netherlands, France, China, Switzerland, Hong Kong, and the United Arabia Emirates (UAE). The US alone accounted for US$391.62 million or 44.77% of Vietnam’s total export earnings in six months, representing a year-on-year increase of 29.75%. It was followed by Japan with US$111.575 million making up 12.76% (up 30% year on year). The volume of bag, suitcase and umbrella exports to Thailand, Sweden, Italia and Malaysia also grew considerably by 40-50% compared to the same period last year. 7th Vietnam-Japan Economic Dialogue opens More than 100 delegates attended the 7th Vietnam-Japan Economic Dialogue held in Tokyo on July 18. The dialogue, co-organised by Abenomics and the Vietnamese Embassy, was part of activities marking the 40th anniversary of the establishment of diplomatic ties between the two countries. Ambassador Doan Xuan Hung said Japan’s ODA and direct investment have positively contributed to Vietnam’s national development. However, economic cooperation is yet to match the two countries’ potential. Hung admitted that there remain some snags like cumbersome procedures in Vietnam’s investment environment. However, with strong determination to reform, Vietnam will become an attractive destination for foreign investors, especially Japanese businesses in the future. Tran Dinh Thien, Director of the Vietnam Economic Research Institute, affirmed that in recent times, Vietnam has paid great attention to improving the investment environment in line with the common trend of national development. He briefed participants on the Vietnam-Japan economic development strategy approved by Prime Minister Nguyen Tan Dung with a focus of investment cooperation in electronics, agricultural and fisheries processing, automobile manufacturing, shipbuilding and energy. Doctor Etsuro Honda introduced Abenomics’ economic policy and emphasised its important role in the Japanese economy. He said Abenomics can be a factor behind closer economic ties between the two countries as it given priority to developing services. For instance, taking care of elderly people requires a large number of nurses and orderlies and Vietnam can cooperate with Japan in this field, he added. Local exporters concerned about falling rice prices in Thailand Not a few Vietnamese exporters are worried that they will be suffering from the Thai Government’s decision to clear rice stockpiles at low prices. Vietnam Food Association (VFA) Deputy Chairman Nguyen Trung Kien believes rice exports will not be affected by a fall in price. The reason is that with some 17 million tonnes of rice in stock Thailand will suffer an estimated loss of US$9 billion if it continues to lower the purchasing price of rice. According to the Bangkok Post, the Thai National Rice Policy Committee (NRPC) recently decided to cut the paddy ceiling price from 15,000 baht/tonne  to around 13,500 baht/tonne. Such a 15–20% reduction will cause a loss of 136 billion baht during the first year of Thailand’s rice programme. Nguyen Dinh Bich—Deputy Head of the Trade Development Strategy Department under the Ministry of Industry and Trade’s (MoIT) Trade Research Institute—says local rice exporters’ comparatively low prices will inoculate them against the Thai Government’s move. Bich doubts the Thai rice price will fall to a level where Vietnamese exporters will be threatened. Vietnam is second only to India which is the world’s largest rice exporter. So in the face of falling rice prices in the world domestic businesses fear that they will find it difficult to secure a firm foothold in the rice export market. In the first six months of this year, Vietnam exported approximately 3.5 million tonnes. With the price of 5% broken rice dropping from US$410/tonne in January to US$365/tonne in June, Vietnam has become the world’s cheapest rice exporter. The VFA says Vietnam’s rice exports in the first half of 2013 increased by 2.55% in volume but fell 2.04% in value year on year. For this reason, there is a plan afoot to cut the rice export level from 8 to 7.5 million tonnes by the end of this year. Rice shipments will be 2.2 and 1.8 million tonnes in the third and fourth quarters, respectively. VFA Chairman Truong Thanh Phong proposes promoting rice exports to reduce excessive stocks and maintain the purchasing level. The Government has encouraged local rice purchases by providing additional preferential loans, Phong says. He underscores the need to increase rice exports, citing Africa as a potentially lucrative market that annually has to import 6.5 million tonnes of rice. Meanwhile, Nguyen Dinh Bich argues that if foreign partners get used to buying Vietnamese rice so cheaply, they will refuse to accept a higher price—even if the global trend permits. The bottom line is Vietnam will have to export more rice but earn less in revenue. Firms eager to invest in retail industry Several domestic firms have seized the opportunity to invest in Vietnam’ retail industry, even though the economic crisis is far from over. Nguyen Manh Duy, managing director of the Ocean Retail and Real Estate Management Company, says that Ocean Group, his parent company, plans to open between 70-80 supermarkets and shopping centres nationwide by 2015. This will make the retail industry one of the group’s core businesses. The company also has two supermarkets-the Ocean Mart Ha Dong and Ocean Mart Thang Long-that are already in operation. Duy says the gloomy domestic real estate market gives the company the chance to invest in the retail industry for much smaller overheads. Son Ha group, a large domestic producer of home appliances and stainless steel products, has opened its first hypermarket in Ha Dong District, Hanoi, starting a new line of business. Vu Vinh Phu, Chairman of Hanoi’s supermarket association, points to the fact that many firms are currently considering investing in the retail industry, especially as supermarket have become popular with consumers. Meanwhile, CB Richard Ellis Vietnam, a property consultant and services firm, said that the approval of the Ministry of Industry and Trade’s plan for developing supermarkets and shopping centres by 2020 has had a positive influence on investors. Under the plan, the nation is predicted to have between 1,200 – 1,300 supermarkets and 180 shopping centres by 2020, which will account for 45% of the country’s total retail revenue for goods and services. However, Le Vinh Son, Son Ha Group chairman says that he delayed the opening of his second supermarket in 2012 due to business difficulties. Phu echoes Son’s view, saying it is difficult for businesses in the retail industry at the moment because of a low purchasing power during the economic downturn. On top of that, developing a supermarket or a shopping centre’s trade mark is extremely difficult due to high competitiveness in the market. A business needs only six months to build a supermarket, but it needs 10 years to develop and establish it with consumers, says Phu. Enterprises still have the opportunities to develop a supermarket and shopping centre network, Phu says, but they must plan carefully, do the appropriate market research, source adequate quantities of goods and train their workers before launching a new chain of retail outlets. Duy adds that the retail industry is the most competitive in the country, so a company must carefully nurture its supermarkets before it can reach a significant level of success in this sector. Southwestern region asked to boost goods consumption Sectors and localities in the Southwestern region needs to exert a greater effort in clearing hurdles to production and goods consumption while tackling bad debts. Deputy Prime Minister Vu Van Ninh made the request at a conference of the Southwestern Region Steering Committee in Can Tho city on July 18 to review the performance of its tasks in the first half of the year and discuss orientations for the second half. Ninh, who is also head of the committee, urged the region to enhance market and budget management as well as actively fighting smuggling and trade fraud. Regional sectors and localities were required to take measures to boost production and goods consumption in a sustainable manner while considering production planning and product restructuring. Production should be combined with processing and consumption, he said, stressing the need to seek a good model that can be multiplied in the region. The State also needs to devise policies and mechanisms on infrastructure investment and scientific-technological application in production, he stressed. The Deputy PM praised significant achievements the region has made in socio-economic development over the past six months, with average GDP growth of 9%, nearly doubling the country’s figure, people’s improved living standards and reduced poverty rate. This year, the region aims to contain inflation, stabilise the macro-economy with a 11% economic growth rate, raise average per capita income to US$1,760 per annum, and generate US$11 billion from exports, a year-on-year increase of 10%. Singapore becomes Vietnam’s 6th largest trade partner Singapore has become the sixth largest trading partner of Vietnam, after China, Japan, the US, the Republic of Korea and Taiwan. The Vietnam Government Portal (VGP) quoted statistics of the Vietnam Customs as showing that since 2006, goods trading between the two countries has always accounted for a large proportion of Vietnam’s total export and import value. By the end of May, two-way trade was valued at US$3.53 billion, in which Vietnam’s import was US$2.49 billion, down 12.9% against the same period of 2012. Vietnam’s key exports to Singapore in 2012 included computers, electronic products and components with a turnover of US$300 million, up 10.7% over 2011 and accounting for 12.8% of total export turnover to the Singapore market. The customs agency said deficit has increased sharply over the past two years, from US$1.98 billion in 2010 to US$4.32 billion last year. Support industry technologies to be showcased in Hanoi Hanoi will host the 5th Vietnam-Japan Exhibition on Support Industries (SIE 2013), the Japanese Monozukuri Technology Exhibition (JME), and the 2013 Industrial Components & Subcontracting Vietnam 2013 in conjunction across September 4–6. The exhibition schedule was announced a part of a July 18 cooperative agreement signing ceremony between Hanoi’s Department of Industry and Trade, the Hanoi Representative Office of the Japan External Trade Organisation, and the Thai Reed Tradex Company. The three events will grant Vietnamese businesses access to the most up-to-date technology advances developed by 500 brands from 25 countries around the world. The exhibitions include demonstrations of breakthroughs in automation and robotics technology like Honda’s “Murata Boy” and “Asimo” robots. Hanoi’s manufacturers can learn from international experience to improve their management skills and raise the quality of their products. The exhibitions will also help Vietnamese manufacturers prepare to use the expected wave of new Japanese investment as effectively as possible. Bitexco chosen for PPP project Multi-industry group Bitexco has been selected by the Government and the World Bank as an investor of the US$757 million Dau Giay – Phan Thiet Expressway Project, the nation's first public-private partnership (PPP) infrastructure project. In a press release on Thursday, Bitexco said it would contribute a 60 percent stake to the project and would also take part in the country's programme to find, amongst several Asian nations, a second investor. The four-lane, 100-kilometre expressway will connect HCM City to the south-central city of Phan Thiet and would be a critical link in the national north-south highway corridor. The expressway, expected to be completed in 2019, will reduce traveling times between HCM City and neighbouring industrial areas and tourism sites in the central coastal region. "I'm pleased that the public-private partnership model has attracted keen interest from investors around the world," said Bitexco chairman Vu Quang Hoi. "We want to attract like-minded partners who are looking at long-term strategic opportunities in transport and infrastructure development, which will contribute to Viet Nam's growth," he said. According to Hoi, the project will be showcased this month in India, South Korea and Singapore, all of whom have significant investments in Viet Nam. Additional infrastructure projects, including aviation terminals, seaports and subways, will be constructed along the highway. "This is an important project for the nation," said World Bank's country director for Viet Nam Victoria Kwakwa. "There have been significant improvements in roadway capacity but demand still outstrips capacity. The new expressway will boost economic development in southern parts of the country," she stressed. Investment forum On Tuesday, a Viet Nam investment forum was held in the US to attract investment in construction projects and infrastructure development in Viet Nam. Bui Quang Vinh, Minister of Planning and Investment, said US investors believed that Viet Nam was heading in the right direction with PPP and they appreciated the commitment and actions the Vietnamese Government had taken to implement this model. Vinh also said that Viet Nam had established a Government steering committee on PPP, led by Deputy Prime Minister Hoang Trung Hai, to boost the efficiency of the model. Richard Shieldhouse from the Maryland-based Intervistas Company said Viet Nam's move to establish a risk prevention fund worth $1 billion, reserved for the PPP, will help international and private investors feel secure about their infrastructure investments. He said the country would also introduce timely, new legislation on PPP investment, and he expected the National Assembly to soon pass a revised investment law, which would improve the quality of future investments. At the forum, ministry officials said health-care and environmental projects were prioritised in Viet Nam's PPP infrastructure development portfolios. Asset management team appointed Deputy Governor of the State Bank of Viet Nam, Dang Thanh Binh, has become chairman of the board of the Viet Nam Asset Management Company (VAMC). The decision was made by SBV Governor Nguyen Van Binh on Tuesday. VAMC came into being on July 9 in a move to resolve bad debts and boost credit growth. The company, managed, supervised and inspected by the central bank, has a charter capital of VND500 billion (US$23.8 million). According to a governmental decree, credit institutions with a bad-debt rate higher than 3 per cent will be required to sell loans to VAMC. The company will enjoy 2 per cent of the revoked debt. In other moves, the Deputy General Director of Agribank, Nguyen Quoc Hung, has been made VAMC's permanent Deputy Chairman. Nguyen Huu Thuy from the central bank's General Supervisory Department will become VAMC General Director. The SBV governor also assigned three deputy general directors to VAMC. They are all currently deputy directors of the Vietnam Investment and Development Bank (BIDV), Lienviet Post Bank and Sai Gon-Ha Noi Bank (SHB). Construction show takes off More than 100 domestic and foreign companies are taking part in the Viet Nam International Construction and Building Exhibition and the Viet Nam International Industrial Machinery Exhibition that opened in HCM City yesterday. The exhibitions showcase construction technologies and materials, tools, equipment, hardware, and packaging machines among others from countries like Germany, Hong Kong, Malaysia, the US, Japan, France, Singapore, and Australia. They will also feature several conferences and offer companies the opportunity to explore business possibilities and compare notes. They are on display at the Saigon Exhibition and Convention Centre in District 7, and will go until July 20. The annual events hope to attract more than 6,000 visitors this year.- Shops offer students cheap books As a new school year approaches, students and families nation-wide are hoping to take advantage of promotions to cut expenses during difficult economic times. It is a time when they scour all media for details of deals being offered by different supermarkets and bookstores. On the other hand, supermarkets and bookstores are hoping they can boost sales of stationery and other items by attracting as many customers as possible to their stories before schools open. To this end, they have launched promotions specifically targeting the back-to-school crowd. The Co.opMart supermarket chain, for instance, has co-ordinated with its partners to offer discounts of up to 47 per cent on 800 items, including student uniforms, notebooks, pens, other school supplies. It will also set aside about VND4 billion (US$140,000) to present 800,000 notebooks as gifts to shoppers on July 20-21 under its "Vo xinh chung em den truong" (We go to school with nice notebooks) programme. Accordingly, all its stores in HCM City will present eight 96-page Co.opMart brand notebooks for every invoice of VND500,000 ($23) and above. Those with invoices of VND300,000 ($14) and above at Co.opmart stores outside HCM City will receive five of the same notebooks. French supermarket chain Big C is also running a discount programme called "Cung be toi truong" (Go to school with kids) until July 22. The programme offers special discounts of five-50 per cent on more than 700 items including notebooks, pens, uniforms and school bags. Many bookstores in HCM City, including Thang Long, Nguyen Van Cu, Van Lang and Gia Dinh, are offering 10-15 per cent discounts on textbooks, notebooks backpacks and other items. Nguyen Thi Hong Van of Binh Thanh District said she usually buys all school supplies for her son under a Big C promotion programme that helps her save 20-30 per cent on their market prices. Big C has also announced that in a special effort to help disadvantaged children, it will collect used clothes and books for 2-12 year olds at all its 24 outlets nation-wide. Donors will be awarded 1,000 "Big Xu" points on their member cards for each book contributed and a VND10,000 ($0.4) voucher for each shirt or pair of trousers. Big C has said it will attempt to hold the "world's biggest clothes collection day" at its Long Bien outlet in Ha Noi on July 21. Sacombank gets approval to increase capital Sacombank (STB) has announced it has received approval from the State Bank of Viet Nam to increase its charter capital from VND10.74 trillion (US$506.6 million) to nearly VND12.43 trillion ($586.3 million) for the first time this year. In addition, the bank will sell some shares to a strategic foreign partner to boost its capital for a second time, which is expected to happen in the fourth quarter. The banks total assets as of June reached over VND159.6 trillion ($7.5 billion), a rise of 5.5 per cent from earlier this year, while its portfolio of bad debt was just 2.46 per cent. Fines handed out for costly market rumour The Ministry of Information and Communications' Inspection Agency said it would fine one of the three men charged with spreading rumours that the chairman of the Bank for Investment and Development of Viet Nam was arrested in February. The fine will be VND15 million (US$707.5). This man was born in 1980, and currently works for a Ha Noi-based bank. He used the username "Casperskid@gmail.com" on the online forum tathy.com to spread the news. The agency is reviewing the behavior of the other two men, with usernames "HungPVN" and "Danghocdoi" on f319.com, to issue appropriate fines. Securities Commission uncovers 3,000 violations In the first half of this year, nearly 3,000 investors were exposed for using at least two trading accounts to buy and sell shares in a single session, which was forbidden by law, according to the State Securities Commission (SSC). In addition, the commission issued 40 decisions to fine corporate and individual investors worth VND3 billion (US$141,500). During the period, the commission also settled 46 complaints and denunciations, mostly about compensation claims from securities firms by investors. Vingroup sells part of affiliate to foreign partner Property developer Vingroup (VIC) completed the first phase of its US$200 million partnership deal with foreign fund Warburg Pincus. It announced earlier this week it had issued shares worth $150 million from its member company, Vincom Retail, to the fund. Previously, Warburg Pincus had agreed to buy a 20 per cent stake in Vincom Retail. Ha Noi border expansion boosts tourism It has been five years since Ha Noi expanded its administrative border. The capital city's tourism sector has enjoyed positive changes as it knows how to make full use of tourism advantages to attract more visitors, both domestic and international. The number of foreign tourists coming to the city jumped from 1.2 million in 2008 to 2.1 million in 2012, while the number of domestic tourists grew from 7 million to 12.3 million. In the first half of this year, despite a fall in the number of visitors to Viet Nam due to economic difficulties, Ha Noi still welcomed more than one million foreign arrivals, a year-on-year rise of 15 percent, and 7.3 million domestic visitors, up 8 percent. Last year, the city was listed the sixth most attractive destination in Asia by Smart Travel Asia, the region's leading online travel magazine, and second in a list of 100 international cities with good hotel services by the well-known tourism website Trivago. Recently, it also entered TripAdvisor's Top 25 Destinations in Asia, the world's largest travel website. The achievements are attributed to Ha Noi's efforts to exploit the tourism potential of the expanded area. Besides renowned destinations like President Ho Chi Minh Mausoleum, Van Mieu (Temple of Literature ), Thang Long Citadel, Hoan Kiem lake and ancient streets, the city has paid more attention to developing other tourism sites, including Tan Da mountain in Ba Vi district, Duong Lam old village in Son Tay district and Van Phuc silk village in Ha Dong district. Fiscal climate too gloomy for FDI It is vital that Viet Nam improves its investment climate to increase the flows of top-quality foreign direct investment (FDI) to the country, when most other Asian markets have also emerged as attractive destinations for FDI. Although the Government announced plans to enhance the quality of FDI inflows into the country, while having concerns over impacts on the environment, there is a lack of incentive policies to encourage businesses to invest in environmental protection. Japanese firm Ajinomoto Viet Nam invested US$10 million in a waste treatment plant to safeguard the environment, however, the company was not offered any incentives whatsoever to build the plant. Hirokaru Motohashi, vice president of the Association of Japanese Enterprises in HCM City, was quoted by Viet Nam Television News as saying that enterprises still found it difficult to invest in Viet Nam, as policies on environment taxes, export-import taxes, labour restraints, wages and customs procedures are extremely complicated. This has made many Japanese enterprises reconsider previous plans to expand their operations in Viet Nam and has led some of them to shift their investment to other countries, he added. Minister for Planning and Investment Bui Quang Vinh said in last week programme that Viet Nam was losing its advantages when trying to attract more FDI, such as cheap labour and natural resources, toThailand and Indonesia Few improvements have been seen in developing the infrastructure or simplifying administrative procedures, making investing in Viet Nam less appealing, he added. Director of the ministry's Foreign Investment Agency Do Nhat Hoang said that Viet Nam must concentrate on attracting more FDI in the processing and manufacturing industries, instead of the real estate market. Statistics show that FDI flows into the country has slowed down over the last three years. In 2010, Viet Nam targeted attracting around US$23 billion in FDI, however, at the end of the year only $18.1 billion had been recorded. In 2011, the country attracted $14.7 billion despite its target of $21 billion. In 2012, FDI into the country reached only $13 billion, when the final goal was $15-17 billion. However, in the first six months of this year, FDI injected into the country surged 15.9 per cent year-on-year, reaching $10.473 billion. Current levels of disbursement are estimated at $5,7 billion, up by nearly 6 per cent. The country expects to attract a total of $13-14 billion of FDI this year, equal to last year's figure. Export credit insurance unpopular The number of businesses buying export credit insurance has remained low despite a national trial programme that promoted its use, experts said at a conference held yesterday in HCM City. Speaking at a conference on the benefit of export credit insurance, Dang Quoc Hung, vice chairman of Handicraft and Wood Industry Association of HCM City (HAWA), said that many enterprises did not know that such insurance was available. Mai Hong Viet, marketing director of Bao Viet Tokyo Marine Insurance at the HCM City branch, said that only 50-70 enterprises had bought the export credit insurance in the past three years. Most of them were foreign companies. Insurance providers have not advertised the programme well, and the premiums remain rather high compared to other common insurance programmes, he said. The conference, organised by Hawa and Bao Viet Tokyo Marine Insurance, was held to provide more information about the insurance to exporters, especially those who export wooden products. Export credit insurance protects export companies' foreign receivables against commercial and political risks that could result in foreign buyers' non-payment of export invoices, Viet said. Such insurance could help increase the volume of the country's exports, especially in new markets. Hung said under the current economic downturn, exporters faced a high risk of losses. "Even if company buyers have never skipped payments, their companies could become insolvent due to unforeseen circumstances," he explained. In these situations, export credit insurance would protect export businesses, he said. Nguyen Van Hung, director of Hung Dat Company, said the insurance would be useful for wooden product exporters. However, he said most enterprises were afraid of revealing their information as well as their customers' information to insurance companies. Dang Van Dung, director of Asia Manufacturing Construction Co Ltd, said many companies did not know that the Government subsidised 20 per cent of the premiums for this kind of insurance. Hung of Hawa said that insurance providers should improve communications to the business community about the insurance so they can better understand its advantages. "Insurance companies should also develop more policies to make export insurance more attractive to Vietnamese companies," he said.  Mekong Delta records high growth in first six months Farmers harvest the winter-spring rice crop in the southern province of Hau Giang's Vi Thuy District. The Mekong Delta region achieved an average economic growth rate of 9 per cent in the first half of the year, a meeting in Can Tho was told yesterday.—VNA/VNS Photo Duy Khuong The Mekong Delta region reached an average economic growth rate of 9 per cent in the first six months of 2013, nearly double the average growth rate of the entire country. According to figures released at yesterday's meeting, the region attained high growth rates in industrial production, imports/exports, investment, retail and services turnover and finance and credit. However, a majority of residents in the region have encountered difficulties due to the global and domestic economic downturn. The report released by the Steering Board for the Southwest Region at their meeting in Can Tho City yesterday, said that the low sales of rice, seafood and fruit, the three major commodities the Mekong Delta produces, was one of the biggest problems facing the Delta's residents. Speaking at the meeting, Deputy Prime Minister Vu Van Ninh said that economic growth had helped to reduce the number of poor families in the area and also ensured social welfare across the region. Ninh praised the successful coordination between the Steering Board for the Southwest Region and ministries and Government agencies in carrying out the programmes. Ninh said the Steering Board and provincial authorities must supply guidelines for the rest of 2013 on the implementation of resolutions issued by the National Assembly and provincial People's Committees to reach the targets set for 2013. Local authorities must try to remove the difficulties that face the production and business sectors, increase the consumption of goods and deal with bad debts. Management of the market must also be enhanced and the fight against smuggling and trade fraud should be strengthened. Provincial authorities must also keep a tight rein on budgetary incomes and expenses at every locality and agency. Ninh said that provincial authorities and agencies must also ensure that production is conducted in a sustainable way, by re-structuring crops and businesses in each locality Meanwhile, the Steering Committee for the Mekong Delta Economic Cooperation Forum and the region's Social Welfare Fund have discussed preparations for the forthcoming forum. The forum, themed "œMekong Delta Region, Towards a Green Economy", is scheduled to take place in Vinh Long Province between November 21 and 24. The activities will include seminars, trade fairs and exhibitions, attracting more than 500 stands showcasing domestic and foreign businesses. As part of this year's forum, there will be a seminar on ways of developing orchards in line with VietGap (Vietnamese Agriculture Practices) standards and the Global GAP standard, as well as a seminar on promoting investment in the Mekong Delta region. This year's forum will focus on issues related to social welfare,struggling businesses and investment in projects that focus on climate change. "Activities at the forum must include images of the Mekong Delta. With these, localities in the region will be able to enhance links between each other to exploit the region's potential and attract more investment to the Delta," said Ninh. The provinces in the region have finished the preparations for 127 projects, requiring a further investment of VND413 trillion (US$19.6 billion), plus projects worth US$1.2 billion to be introduced during the forum. The forum is an open-link activity aimed at improving relations between the provinces and cities in the Mekong Delta region; cooperation between ministries and departments and cooperation between localities and international organisations. The overall goal is to increase economic growth in the Mekong Delta region. The Steering Board for the Southwest Region has worked with the State Bank of Viet Nam to support the steering board of the Mekong Delta Social Welfare Fund. As of late June, commercial banks in the region have provided loans worth VND499 billion (US$23.8 million). The funds have helped provinces and cities in the region to build five nursery and primary schools. Three more nursery schools and two rural roads will be built in the region in the near future, from a pot of VND100 billion. The Ca Mau Oil - Fertiliser Company has provided VND15.4 billion, while Ha Noi City's authorities have pledged support of VND10 billion, according to a representative from the fund. FPT IS customs software ready for business use in Viet Nam FPT IS on Tuesday announced its plan to upgrade its current FPT.eCustoms electronic customs declaration software to be compatible with Viet Nam's Automated Cargo Clearance System (VNACCS) for businesses. The new software will be officially rolled out nationwide in the second quarter of 2014. FPT IS plans to upgrade its electronic customs declaration software in three phases. In phase one, from now until August 31, 2013, FPT IS will focus on ensuring that the beta (trial) version of FPT.VNACCS is compatible with the new system at the Viet Nam General Department of Customs. In phase two, from September 1, 2013 to October 30, 2013, FPT.VNACCS software will be connected to the VNACCS system at Vietnamese customs to test its operational quality. In phase 3, from November 1, 2013 to March 30, 2014, FPT IS will refine and fine tune the final version of FPT.VNACCS so it can be used by enterprises across the country.- Gia Lai Province revokes five more Hydropower Projects The People’s Committee of Gia Lai Province in the Central Highlands on July 18 said they have revoked five Hydropower Projects in the province. The five projects include Ia Loup, Dak Se Pay, Ia Grang 1, Tchom 1 and Dak Po Kei, which were revoked for running far behind schedule. Besides, investors have failed to meet commitments as per investment contracts. This is the second time that Gia Lai Province has revoked licenses of Hydropower Projects this year. The first time was in mid June, when eight small and medium projects were withdrawn. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR