BUSINESS IN BRIEF 28/9 Vietnam, Japan unveil plan to develop four key industries An action plan, laying out a roadmap to develop four key industries under the Vietnam-Japan cooperation framework towards 2020 with a vision to 2030, was unveiled in Hanoi on September 25. The strategy aims to strengthen the nation’s capacity to produce goods and services by installing eco-friendly modernised hi-tech machinery and equipment in agriculture, agro-fishery processing, electronics, and efficient energy production. In announcing the plan, Nguyen Thi Tue Anh, Deputy Head of the Central Institute for Economic Management (CIEM) said Vietnam and Japan have carefully and explicitly conceptualised the strategy and action plan. The strategy is highly dependent upon an influx of foreign investment in the targeted industries and Vietnam and Japan will work cohesively to create a favourable environment conducive to the attraction of investment, Anh said. Doan Xuan Hoa, deputy head of the Department of Processing and Trade for Agro-Forestry-Fishery Products and Salt Production in turn said there should be detailed and specific measureable goals for each individual industry. There need to be both short-term and long-term goals that are readily understandable and measurable in order to attract the participation of companies, Hoa said. Hoa also affirmed the Ministry of Agriculture and Rural Development will co-ordinate with the Japanese Embassy and Japan International Cooperation Agency (JICA) to organize trade exchanges among businesses. BIDV wins prestigious int’l banking award The Bank for Investment and Development of Vietnam JSC (BIDV) was cited on September 25 as the Best Domestic Provider of Foreign Exchange Services in Vietnam by Asiamoney magazine. This is the second consecutive and fifth time BIDV has been selected for the prestigious award. Do Ngoc Quynh, BIDV Treasury and Currency Trading Department said despite fierce competition from local and foreign rivals, BIDV’s treasury and currency activities have developed strongly. Quynh attributes receipt of the award principally to the dedicated efforts of the bank’s staff, saying the award evidences their great efforts in recent times. On the occasion, BIDV was also named as the Best for Foreign Exchange Research and Market Coverage in Vietnam by Asiamoney, as well. Agriculture trade fair opens in northeast region A trade fair in the northeast region showcasing agricultural goods, taking place from September 25-29 in Lang Son City, has attracted over 250 stalls, including 29 from Chinese businesses. At the fair businesses are displaying a wide variety of wares including agricultural and forestry products, seafood, handicrafts and ornamental plants. The event is expected to provide an occasion for Vietnamese and Chinese businesses to seek cooperation opportunities. Polish agriculture companies eye Vietnamese market Polish agribusinesses consider Vietnam a promising export market for beef, pork and fruit, a Polish Embassy spokesperson has said. Poland is one of 39 countries, which fully complies Vietnam’s food safety requirements for bacterial contaminants, pesticides, inspection and labelling. To this end, Poland’s Agriculture Ministry in collaboration with the Union of Producers and Employers of Meat Industry (UPEMI) in Poland held a dialogue in August to promote trade with Vietnamese businesses in Vacsava, Poland, the spokesperson said. At present, the UPEMI is establishing distribution systems in Vietnam and conducting market surveys and analysis to gauge demand for meat products. Agro-forestry and fishery exports hit US$22.66 billion Agro-forestry and fishery exports for the nine months leading up to October jumped 11.4% over last year’s corresponding period to US$22.66 billion, according to the Ministry of Agriculture and Rural Development (MARD). Exports of rice to the Philippines experienced sharp growth in the nine months, skyrocketing over three-fold in both volume and value, ranking it second among markets which import rice from Vietnam. Meanwhile, coffee exports hit 1.35 million of tonnes, fetching US$2.81 billion, up 31.9% in volume and up 27.9% in value over last year’s corresponding period. Germany and the US remained the largest consumption markets for Vietnamese coffee. The MARD said seafood export value reached US$5.65 billion in the nine month period, up 21.6%. The US remains the leading import market for Vietnamese seafood exports, followed by Japan. In the past nine months, seafood exports to Japan, the Republic of Korea and China have increased sharply. Wood and wooden exports saw 13.5% on-year to US$4.41 billion in the reviewed period. Standard Charter Private Equity expands its portfolio to Vietnam Standard Chartered Private Equity (SCPE) has acquired a significant minority stake in Golden Gate Trade and Services Joint Stock Company, the leading restaurant chain operator in Vietnam. The private equity arm of Standard Chartered Bank announced that it has invested US$35 million but did not disclose how much of a stake it has acquired. This is the private equity firm’s first investment in Vietnam and the latest acquisition in a large portfolio in the Southeast Asian region. Golden Gate owns and operates 11 proprietary restaurant brands across more than 60 restaurants located in and around Hanoi and Ho Chi Minh City, including Ashima, Kichi Kichi, SumoBBQ, Vuvuzela and iSushi. An SCPE representative said it expects to provide strategic input into developing the business strategy of Golden Gate and support the company’s future expansion plans. VAMC buys VND60 trillion bad debts Vietnam Asset Management Company (VAMC) is dealing with nearly VND60 trillion worth of bad debts it has bought from banks since October last year. As of September 1, VAMC had bought nearly 3,600 debts for nearly VND49.4 trillion from 35 credit institutions, including those having no need to sell bad debts. The debts carry a total original value of over VND59.5 trillion, the company said. Of the total, VAMC had classified 145 debts worth nearly VND14.8 trillion while restructuring debts with a total original value of around VND9.7 trillion of 123 clients who were capable of recovering production and business activities. The loans’ interest rates were revised down to 10.7% per annum. VAMC and credit institutions had assessed the performance of enterprises who had sold debts to it to see whether they could extend more loans to their half-done projects. They signed credit contracts worth thousands of billions of dong to the enterprises, in which VND450 billion had been disbursed. VAMC and banks had also considered loan interest exemptions for customers. In addition, VAMC had recovered and liquidated properties with a total value of VND1.4 trillion. After classifying debts and mortgaged assets, VAMC had joined hands with banks to liquidate properties of borrowers that were incapable of repaying loans. The firm liquidated assets used as collateral for VND400 billion debts. It had also taken over properties worth over VND300 billion in major cities such as Hanoi, HCMC, Haiphong and Danang. VAMC said that many foreign investors and international finance institutions have offered to buy some bad debts from it. The company has classified assets to sell to domestic and international investors. VAMC has inked information security deals to provide asset lists to 16 investors, including many big organizations. This is a chance for VAMC to sell debts at market prices to international investors after settling all problems in debt and asset sales, a leader of VAMC told the Daily. VAMC is working out a bad debt trading strategy at market prices and will submit it to the Government for consideration and approval. The enterprise has plans to sell debts and assets worth VND150 trillion or higher. VAMC is expected to buy VND150-200 trillion worth of bad debts by 2016. Of which, it will recover or handle VND20-40 trillion worth of debts and the remainder will be sold at market prices. The debt trading firm is calling for related agencies to help complete legal procedures for debt trading and establishment of an auction center. VAMC also aims to approach long-term capital sources from international organizations to buy bad debts at market prices if effective. It also calls for domestic and foreign investors to take part in the settlement of bad debt through restructuring or acquisition. Transport ministry to start work on seven major projects in Q4 The Ministry of Transport is expected to break ground for seven big-ticket transport projects worth a combined VND9.2 trillion in the fourth quarter of this year. Particularly, a project will get off the ground early next month to upgrade a section of National Highway 1A in Phu Ly City in the northern province of Ha Nam costing VND2.3 trillion. The next three others, including upgrade of a section of National Highway 6 in Son La Province, Highway 1A’s section in Soc Trang Province, and construction of Thai Ha Bridge connecting Ha Nam and Thai Binh, are planned for commencement at the same time at a total cost of VND1.2 trillion, VND1.5 trillion and VND1.94 trillion respectively. The transport ministry will also break ground for two major projects in the last two months of this year. One is intended for expansion of a section of National Highway 1A in Bac Lieu Province’s Bac Lieu Town while the other is for building National Highway 91B’s section through Can Tho City. The final project to begin in this quarter is National Highway 38’s section in Duy Tien District of Ha Nam Province. In addition, the ministry plans to start work on 15 key transport projects with total investment capital of VND64.8 trillion next year, such as Tan Van-Nhon Trach Road in Dong Nai Province and some expressways such as Bac Giang-Lang Son, Trung Luong-My Thuan, and Ninh Binh-Thanh Hoa. Statistics from the ministry showed that as many as 58 big transport projects will be put into operation this year. Among them, some will be completed soon, such as Nhat Tan Bridge in Hanoi and Noi Bai International Airport’s T2 Terminal. Vietnamese coffee brand on display at CAEXPO Trung Nguyen coffee, a well-known brand in Vietnam’s instant coffee market, has represented the country’s agricultural products at the China-ASEAN Expo (CAEXPO) in Nanning city of China, with the aim of promoting Vietnamese exports to the ASEAN-China Free Trade Area. Trung Nguyen’s sales revenue in China last year totalled VND1 trillion (US$47 million), nearly doubling the 2012 figure. Trung Nguyen’s G7 coffee has also been sold by the US giant retailer Walmart in China for the last two years. Titled “Maritime Silk Road of the 21 st Century”, the annual expo attracted 2,330 businesses showcasing their products and services in 4,600 booths. This year, Vietnam’s 200 booths displayed products by 100 businesses, the biggest out of the ten ASEAN members. The September 16-22 expo was jointly organised by China ’s Ministry of Trade and the 10 ASEAN member countries, constituting one of the top ten Chinese exhibitions and an important mechanism for the promotion of friendship and trade links between the two sides. Vietnam halts export of bivalve molluscs to EU The European Union (EU) has asked Vietnam to stop its export of bivalve mollusc products to the bloc, the National Agriculture-Forestry-Fisheries Quality Assurance Department (NAFIQAD) said. The request was made after an EU delegation detected two serious violations of food safety regulations for bivalve products during its fact-finding tour to Vietnam from September 9-16. The mission concluded that Vietnam’s blanched noble scallop (Mimachlamys Nobilis) flesh had not been heat-treated in accordance with EU standards before being exported to Europe. Meanwhile, a number of seafood products processed in Vietnam and exported to the EU were found to contain traces of noble scallops and ark clams (Anadara Subcrenata) contaminated with lipophilic toxins. EU inspectors also found that documents on material and quality management were unreliable, the NAFIQAD said. In response to these shortcomings, NAFIQAD ordered a temporary suspension of the export of the offending products in an effort to avoid a total ban on Vietnam’s bivalve mollusc export to the EU. The department also asked bivalve mollusc processing facilities to overhaul the implementation of food safety regulations, and requested local agriculture-forestry-fisheries quality assurance units to intensify their inspections.- Dong Nai expands timber export markets A workshop to prepare for the International Furniture Fair in Singapore 2015 was co-organised by the Dong Nai Forest Products Processing Association and the VCCI Exhibition Service Limited Company on September 22 in an effort to equip local wood processing enterprises with an understanding of the international market. The biggest Asian furniture fair is scheduled to take place at the Singapore Expo International Convention and Exhibition Centre in March 2015, showcasing furniture, handicrafts, paintings and wall decorations. Le Van Danh, Head of Dong Nai’s Department of Industry and Trade, said timber was one of the province’s most valuable exports after apparel and footwear. Dong Nai generated approximately 602 million USD by exporting wood products during the first eight months of 2014, a year-on-year increase of 8.2 percent, he added. The province currently has over 600 wood-related enterprises, earning 2 billion USD in revenue last year, with almost 1.5 billion USD generated by exports. Its exports reported positive growth on all its key markets, such as the US, Canada, the UK, the Republic of Korea and Japan. Moreover, the province’s timber industry is accessing new markets in Latin America and Africa. State receives $30.8b from developing bond market After five years of operating separately from Viet Nam's stock market, the country's bond market has developed rapidly and provided the State with VND654.5 trillion (US$30.8 billion) in value. Vu Bang, president of the State Securities Commission confirmed this at yesterday's press conference which the Ministry of Finance and the Ha Noi Stock Exchange organised. According to Bang, the value represents nearly 18 per cent of the country's gross domestic product. "The average market growth was 23 per cent per year during the period, the highest among emerging markets in East Asia and the ASEAN + 3," noted Bang. Liquidity improved, with the average trading value of each auction increasing 7.5 times through the years from VND365 billion ($17.2 million) in 2009 to more than VND2.7 trillion ($127.3 million) so far this year. In addition to market value, there were encouraging changes in the structure of investors. Although most buyers were commercial banks, the market received increasing interest from insurers, fund management companies and foreign investors. "With an upgraded legal framework and improved liquidity and transparency, Viet Nam's bond market has lured more foreign buyers," Bang said. "Instead of being just a tool for savings, Government bonds have generated profits over the years," he added. However, the bond market was still small compared to banking markets in the overall structure of the financial market, said Pham Thanh Ha, vice president of the Viet Nam Bond Market Association. Bond types were poor while the number of outstanding bonds remained large, with 536 codes traded on the Ha Noi Stock Exchange. "Meanwhile, derivative products have not been developed to reduce risks for investors when interest rates change," Ha added. To attract more foreign investors, he suggested that the Ministry of Finance reduce or remove taxes until the market was more developed. At the conference, the exchange signed a memorandum of understanding with financial news site Bloomberg to jointly develop the third version of the exchange's bond trading system. In the future, the new version will allow investors to trade online and use derivatives. The exchange also plans to connect with other foreign trading systems. Hydro-power firms told to pay up Many hydro-power plants have delayed paying annual charges for the preservation of catchment areas and associated forests used to produce electricity. The situation has forced the Government to ask the Ministry of Industry and Trade (MoIT) to put pressure on them to pay up. This was revealed at an online conference on Saturday to review the three-year implementation of a policy on forest preservation charges. The Deputy Prime Minister, Hoang Trung Hai, told provincial governments to order hydro-power plants to complete the payment to forest landowners. Forest landowners, including local individuals, households and organisations, have been contracted and authorised by the Government to manage, exploit and take care of the trees. The Deputy PM added that the charge to be paid by the hydro plants was tiny compared to what they made in just one price hike for power. He said hydro-power plants had to pay only VND20 to landowners for every kilowatt-hour produced, but they could sell that hour for at least VND596. Hai said MoIT should ask Viet Nam Electricity and its hydro-power companies to review and re-sign the contracts containing forest preservation charges in the price structure. The plants should acknowledge the importance of forests and water preservation in Viet Nam since the country lacked fresh water and much of the treed environment had already been logged or destroyed. The Prime Minister said VND3.3 trillion (US$155 million) had been paid to forest landowners and contracted households, giving them an average income of VND1.8 million (US$85) per year for management and stewardship of the forest. In some provinces, the average income for contracted households was high including VND7.2 million and VND8 million (up to US$370) per year per household in Binh Phuoc and Lam Dong, respectively. The policy had also improved the environmental knowledge of consumers and provided sustainable use and protection of the environment. Conference spotlights intellectual property rights protection Close co-ordination between customs agencies and enterprises is crucial for the protection of intellectual property rights as well as the prevention and detection of violations. Van Ba Tin, deputy head of the Ha Noi Department of Customs, made this statement at a recent conference on intellectual property rights protection. The conference took place in the capital city during the implementation of the Viet Nam Automated Cargo and Port Consolidated System/Viet Nam Customs Information System (VNACCS/VCIS), which the department and React, an international anti-counterfeit network, organised. In order to enhance efficiency, enterprises should provide customs officials with information on their goods before they are imported, said Tin. He also noted that, unfortunately, the increase in international trade went hand-in-hand with an increase in fraud and fake products. Intellectual property rights violations were not just harmful to the economy and trade, but also to consumers' health, Tin added. Currently, Viet Nam is undergoing a strict process of inspection and supervision of imports and exports via the VNACCS/VCIS, and the role of customs authorities in preventing intellectual property rights violations has therefore become more important than ever before, according to Tin. Meanwhile, Tran Viet Hung of the Anti-Smuggling Investigation Department under the Customs Department of Viet Nam said that since VNACCS/VCIS was new to the country, customs authorities needed further information on products and trademarks. Learning from other countries' experience in protecting intellectual property rights would help Viet Nam build an effective inspection process and exert effective control over violations, Hung added. At the event, business representatives expressed their opinions on how to better manage goods and protect intellectual property rights. According to Le Viet Hung of The North Face, the new e-customs system has made it possible for central offices to instruct local customs officials on ways to strengthen inspections in suspected cases. He also provided information on the differences between real and counterfeit products of The North Face to help customs officials distinguish between the two. Pepper export surge puts product on top-earners list Viet Nam has earned US$1.022 billion in revenues from pepper exports, which places the commodity on the list of Vietnamese exports worth at least $1 billion for the first time. According to the Viet Nam Pepper Association, as of mid-September, pepper exports totaled 136,000 tonnes, an increase of nearly 4,000 tonnes in volume and $100 million in revenue from that of the entire 2013. Vietnamese pepper accounts for 30 per cent of the world's total production and 50 per cent of the world's total exports, and its largest markets are in the United States, Saudi Arabia, the Netherlands and India. AirAsia promotion offers seats starting at $9 AirAsia has kicked off its latest promotion, offering 1.5 million seats at base fares starting at US$9 on flights from HCM City and Ha Noi to Bangkok, Kuala Lumpur and Johor Baharu, and from Da Nang to Kuala Lumpur. It is also offering cheap tickets on flights from HCM City to Penang, Macau, Phuket and Singapore (transit in Kuala Lumpur or Bangkok) at fares starting from $45. Guests can also fly on AirAsia X Berhad from $45 for flights from HCM City to Perth, Tokyo and other international destinations. Booking for this promotion should be done between September 22 and October 5, for travel from January 15 to June 30 next year. GE and Hanoi University of Science and Technology collaborate on science, technology and nuclear engineering The US’ GE and Hanoi University of Science and Technology (HUST) today signed a memorandum of understanding (MOU) on their collaboration to enhance training opportunities and develop highly qualified human resources in the fields of science and technology. Furthermore, GE Hitachi Nuclear Energy (GEH) also signed a sub-MOU with HUST to cooperate in the field of nuclear engineering and technology. The MOU signing ceremony was held on the campus of HUST with the participation of vice chairman of GE and president and CEO of GE Global Growth and Operations John G. Rice during his visit to Vietnam. The MOU outlines the collaboration between GE and HUST to strengthen student education programmes and postgraduate job opportunities via structured internship programmes in GE businesses, practical training courses and guidance on final assignments, and GE leadership programnes in the fields of medical equipment technology, nuclear engineering, aviation, and power generation. As part of this MOU, GE and HUST will also jointly research the development of new technologies with regard to medical equipment, aviation, transportation, and power generation. Meanwhile, the sub-MOU signed by GEH, a world-leading provider of advanced reactors and nuclear services, and HUST, will benefit the faculties of Mechanical, Electrical and Nuclear Engineering. The sub-MOU sets out the provision of work experience opportunities for graduate and postgraduate students via internship programmes at GEH’s facilities as an introduction to the nuclear industry and technologies, as well as general business practices and commercial concepts to enhance their professional development. Both parties also agreed to hold technical lectures and seminars on boiling water reactor technology and other issues. “GE is proud to be able to contribute to educational development in Vietnam. Through this collaboration, HUST students can access GE’s knowledge and technology in the fields of science, technology and nuclear science, and can contribute to the country’s development,” CEO of GE Vietnam and Cambodia Nguyen My Lan said. “As part of deepening technological skills and providing job opportunities in Vietnam, GE has established an engineering centre in Ho Chi Minh City and a wind turbine facility in Haiphong which manufactures generators for wind turbines. To date, GE Vietnam has hired a total of 88 full time employees (16 per cent of the firm’s total full-time employees) and 18 interns from HUST.” “We appreciate the collaboration with such strong partners as GE and GEH. HUST is committed to effectively promoting the bilateral cooperative programmes with GE and GEH, which are expected to be highly successful in the future,” HUST vice president Assoc. Prof. Dr. Tran Van Top said. After the two MOU signing, John G. Rice with 26 years’ experience in various leadership positions with GE, gave a talk to 400 HUST students on GE leadership and career development, a useful subject for students who are highly knowledgeable but lack work experience. HCMC businesses to learn Dutch seed technologies Ho Chi Minh City businesses will visit the Netherlands to learn their technologies in seed production and discuss further cooperation between Vietnamese and Dutch businesses on this field, said Deputy Director of the HCMC Center for Agricultural Consultancy and Support Truong Minh Hau. Last week, HCMC Department of Agriculture and Rural Development discussed specific plan about the trip to the Netherlands with 15 leading seed companies in the city. After that, authorized agencies in the city, the Center for the Promotion of Imports from Developing Countries under the Netherlands’ Ministry of Foreign Affairs and the Netherlands Consulate General in HCMC have agreed to send the city's seed production companies to the Netherlands, he said. The Netherlands is the world’s largest seed exporter, occupying 24 percent the global export value. Eight out of ten leading seed companies in the world headquarter or open subsidiaries in the country. HCMC remittance expected at US$5 billion Oversea remittance to Ho Chi Minh City is expected to reach US$5 billion this year, US$1 billion higher than last year, said deputy director of the State Bank of Vietnam in HCMC Nguyen Hoang Minh. The forecast number is based on high remittance volume since early this year and annual floods of oversea remittance to Vietnam in the last months, Mr Minh said. Oversea Vietnamese sent US$2.7 billion to remittance companies and banks in HCMC as of early September, up 6.2 percent over the same period last year. The remittance has mainly come from the United States, Europe and Asia including ASEAN, the South Korean, China and Japan. According to Mr. Minh, the remittance from Asia to Vietnam has been on the rise in recent years. At present, it increases 3 percent compared to the same period last year and accounts for 5.2 percent of the total money remitted to Vietnam. Over 74 percent of the remittance has run into production and trade field and 21.8 percent has come to real estate, up 1 percent from a year ago. The rest four percent has been sent to the remitters’ relatives. The remittance volume usually rockets up in yearend when remitters send their relatives money for  Tet Holiday celebration . It occupies 30-35 percent of the whole-year number, said leader of a remittance company. Government approves construction of Phan Thiet Airport Prime Minister Nguyen Tan Dung has agreed in principal to the construction of Phan Thiet Airport in the south central province of Binh Thuan. This build-operate-transfer (BOT) project, is part of the national aviation development plan for the 2020-2030 period. With the PM’s approval, between 2020 and 2030, Phan Thiet Airport will become a civil airport, meeting all standards of the International Civil Aviation Organisation. The runway will be able to serve large planes such as the Airbus A321. The current airport is designed to serve search and rescue aircraft, and after 2030 it would be converted into a commercial airport. The detailed project plan for Phan Thiet Airport has been approved by the People’s Committee of Binh Thuan Province, the ministries of Transport and National Defense and other related agencies. The next step will be the selection of contractors and the mobilisation of capital in the form of BOT. To date, no airport in Vietnam has been built using the BOT model, which calls for the participation of private companies. So far in Vietnam, this model has only been used on certain road and seaport projects. Students to test knowledge in securities investment The Securities Club of the University of Economics will collaborate with Vietcombank Securities Limited Company (VCBS) to hold a competition on securities investment for university students. This can be seen as the first competition for students to experience real securities investment on Hochiminh Stock Exchange (HSX) and Hanoi Stock Exchange (HNX), said Le Ngoc Hieu, deputy director of VCBS in HCMC. Students from six HCMC-based universities, namely University of Economics, Banking University, Foreign Trade University, University of Finance and Marketing, Industrial University, and Hoa Sen University can participate in groups comprising three to five members and sign up at www.chinhphucdinhcaodautu.com by this Friday. The securities investment competition consists of three rounds. The participating groups will take a test comprised of 75 multiple-choice questions and another essay related to securities, socio-economic affairs and intelligence quotient (IQ) in the first round. The best 12 teams will go to the next round where experts from VCBS will give them advice on making investment portfolios and mobilizing capital with the allowed highest rate of VND30 million. Teams will then proceed with securities investment based on their investment portfolio set up earlier. Notably in the second round, the 12 teams will be entitled to additional profits after VCBS can recoup initial investments. In the event of failure, they do not have to make up for the losses. Three outstanding groups will then enter the final round scheduled for the end of November this year. The winner will receive VND20 million in cash with internship opportunities at VCBS and scholarships of Chartered Financial Analyst Pro at ECOF Vietnam for each winning member. VCBS will jointly work with the Faculty of Banking under the University of Economics to promote such competition with more fascinating questions and challenges in the years ahead, Hieu told the Daily. Students are advised to get further information at www.chinhphucdinhcaodautu.com. PM instructs to cut half business starting, dissolving time The Prime Minister has instructed the Ministry of Planning and Investment to cut short business registration and dissolving time by 50 percent compared to the current average time in the revised enterprise law. He instructed completion of the revised law before December 31, according to an announcement from the Government Office. The ministry should conduct overall examination over the revised law to abolish unnecessary procedures, which have caused difficulties and inconveniences for businesses. The dissolving process must be clear facilitating business withdrawal from the market and a national database on business registration should be quickly accomplished. French Schneider keen on possible mergers and business opportunities French-backed Schneider Electric is seeking to expand production capacity in Vietnam. The French electrics company is interested in potential buy-outs while expandings its own operations in the country. Schneider Electric Vietnam country president Xavier Denoly told VIR at last week’s Xperience Efficiency 2014 exhibition that the firm would continue strongly expanding production in Vietnam. “We are open to capable local partners for mergers and acquisitions (M&A) to further realise our global mission to maintain our position as a leading specialist in energy management,” he said, adding that Schneider Electric had conducted many M&As in the energy industry over the past 20 years, raising the number of its employees from 40,000 to 150,000 through both business growth and M&As. “M&As are always an option for Schneder Electric on both a global and regional level as they’re part of our business development strategy. There are always opportunities to consider. In any markets that we have a business presence, we’re committed to continuing to introduce leading global technology in energy management,” he said. The exhibition jointly organised in Hanoi by the firm and the Ministry of Industry and Trade showcased many of Schneider Electric’s energy efficiency products and solutions which offer 30 per cent cuts in power use and carbon dioxide emissions. In May this year, the firm put into operation its second factory in Vietnam, producing smart wiring devices in the southern province of Dong Nai, joining another factory that began operations back in 1996. The products are sold locally and exported to Australia, Indonesia, New Zealand and South Africa. The new factory recent received ISO 50001 certification and became one of the few factories in Vietnam to receive the certification. Schneider Electric Vietnam also began operations of a distribution centre at the northern Bac Ninh province’s VSIP Bac Ninh Industrial Park in June this year. “Last year, Schneider Electric’s total revenue reached about $30 billion, of which 41 per cent came from emerging markets, including Vietnam,” Denoly said. In terms of information technology, Schneider Electric works with strategic technology partners like IBM, VMware or Cisco to deploy cloud-based or IT applications. In Vietnam, the company provides integrated physical data centre infrastructure solutions for business, comprising of racks, uninterruptible power supplies, precision cooling, and data centre infrastructure management software (DCIM). Schneider Electric has been recognised by IDC as global provider of DCIM in recent years. In order to realise its plan to expand business and production in Vietnam, Schneider Electric Vietnam would continue focusing on training local workers with training courses in country and overseas, Denoly said. Schneider Eelctric Vietnam has also expressed an interest in industrial manufacturing. GEF project helps promote non-fired brick production The Prime Minister has approved the project “Promotion of non-fired brick (NFB) production and utilisation in Vietnam”, funded by the Global Environment Facility (GEF). The project will be carried out through the country in five years with a total investment of nearly 39 million USD, of which 2.8 million USD will be provided by GEF as non-refundable aid through the UN Development Programme (UNDP). Its expected outcomes are to promulgate policies that encourage the NFB manufacturing and use, strengthen the capacity of relevant government bodies in the field, and increase the number of local NFB providers. It will also help enhance the availability of sustainable financial resources for investment projects on NFB and its technology; boost confidence in the financial feasibility as well as economic and environmental benefits of NFB production among financial institutions, brick manufacturers and management bodies; and increase the market share of non-fired bricks. The project’s overall purpose is to help Vietnam reduce the annual growth rate of greenhouse gas emissions by gradually reducing the use of fossil fuels and good quality soil for brick making, while increasing the production, sales and utilisation of NFBs. It is estimated that the direct and indirect cumulative CO2 emission reductions will be 383 ktonnes and 13,400 ktonnes, respectively, within 10 years after the project ends. Vietnam’s export to Laos hits 287 mln USD in 8 months Vietnam earned 287.39 million USD from commodity exports to Laos in the first eight months of 2014, representing a year-on-year rise of 2.97 percent, according to data from the General Department of Vietnam Customs. The humble increase was blamed for decreases in the export turnover of some staples such as steel, down 1.81 percent; petrol, 21.56 percent; fertilizer, 17.95 percent; and electric wires, 58.22 percent. Only several commodity groups like machines and equipment, steel products, and ceramics enjoyed export growths of 30.12 percent, 16.81 percent and 30.02 percent, respectively. In the eight-month period, Vietnam’s total export turnover reached 43.3 billion USD, up 39 percent over the same period last year. Hanoi’s CPI for September edges up 0.51% Hanoi’s consumer price index (CPI) for September rose 0.51% against August, according to the Municipal Statistics Office. Since September of last year, inflation in the city has increased 3.26%. The Municipal Statistics Office reports the CPI increase is principally attributable to an 8.55% increase in the education costs.  These costs are up due to increasing tuition fees in universities and colleges in line with the roadmap approved by the Prime Minister. Education costs were followed by restaurant and food services, which experienced a price hike of 0.31%. Two baskets of goods seeing declines during the month included housing, electricity, water and fuel (0.91%) and transport (1.96%). In September, gold prices declined by 1.65%. The price of the US dollar also fell by 0.09% on-month. Bac Giang attracts over 170 foreign-invested projects Bac Giang provincial authorities have approved the issuance of investment certificates for a cumulative total of 174 projects with foreign direct investment (FDI) exceeding US$1,840 million. “In the first nine months of the year alone, certificates for 21 foreign-invested projects with FDI of US$193 million were approved,” said head of the management board of industrial parks in Bac Giang province Nguyen Anh Quyen. Meanwhile, disbursement of FDI for the nine month period has mushroomed 58% on-year to VND2,750 billion in Bac Giang province, Quyen saidAs a direct result of the increased FDI disbursements, industrial parks in the province have now created over 39,000 high paying jobs, hiring over 30,000 local people, with incomes on average of VND4 million per month, Quyen said. Phan Thiet Civilian Airport to be built in BOT model Prime Minister, Nguyen Tan Dung has approved a plan to build Phan Thiet Civilian Airport in the southern province of Binh Thuan in a Build-Operate-Transfer (BOT) model. PM Dung asked the Binh Thuan Provincial People’s Committee, the State agency in charge of the project, to work with the Rang Dong Corporation and relevant agencies to develop the project’s feasibility study report. The Committee was also required to co-ordinate with Ministries of Planning and Investment, Transportation and Defence and relevant agencies to evaluate and approve the report, while selecting investors for the project in accordance with legal regulations and conducting the project appropriately. In accordance with the Aviation Transportation Development Plan to 2020 and towards 2030, which was approved by PM Dung, the Ministry of Transportation planned to develop the airport into a joint civilian/military airport in Thien Nghiep commune, Phan Thiet city. Goods clearance remains time-consuming The average time needed for goods clearance in Vietnam is over 115 hours, but some cases spend up to 1,400 hours, heard a seminar on customs clearance in Hanoi last week. Le Nhu Quynh, deputy head of the customs modernization board, said the figures were calculated after the customs agency inspected 11 customs offices at ports, border gates and airports in Haiphong, HCMC, Hanoi, Ba Ria-Vung Tau, Quang Tri, Tay Ninh and Lang Son provinces last year. However, Quynh said the 1,400 hours needed for good clearance was not attributable wholly to customs offices as this duration also resulted from relevant units like ports, quarantine and quality control agencies, and export and import companies. According to Quynh, enterprises’ processes of completing goods declarations and procedures for goods clearance take 32.37 out of 115 hours and the remaining direction involve relevant units like ports, quarantine and quality control agencies, and export and import companies Notably, enterprises spend more than 11.6 hours submitting declaration forms and having their export goods cleared. Hoang Viet Cuong, deputy director of the General Department of Customs, said based on the results revealed, the agency has reviewed the processing of procedures at border gates to figure out what need to be improved. He said the department is revising the inspection process for goods clearance via green and red channels to make appropriate adjustments and ensure the efficiency of goods inspections. Besides, the department will cooperate with some commercial banks to speed up online tax payments and create favorable conditions for corporate taxpayers. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR