BUSINESS IN BRIEF 17/4 Insurance market expected to bloom in ASEAN The Southeast Asia region’s insurance market will continue to reap success once the ASEAN Economic Community (AEC) is formed at the end of 2015, said Singapore’s Straits Times. The newspaper quoted Managing Director of international credit ranking agency AM Best Asia Pacific Roger Sellek as saying that insurers are planning to expand their business to overseas markets once the AEC is formed and international credit rates will be a “passport to neighbouring markets” for 110 insurance and reinsurance companies with branches in Singapore. With impressive growth in the island country’s market, AM Best Asia Pacific experts predicted the personal insurance market will blossom in Thailand and Indonesia, the newspaper said, adding that Singapore is currently the biggest insurance market in the Southeast Asian region with total revenue from life insurance and non-life insurance reaching nearly US$23 billion in 2013. However, experts estimate Singaporean insurers will need a decade or longer to build competitive competency. Many big insurance companies with branches in the country have inked agreements to offer their products through the banking network. Manulife has signed an exclusive agreement worth around US$1.2 billion with Singapore’s DBS bank to sell their products to bank customers in Singapore, China and Indonesia. Previously, Prudential and AIA also made similar agreements with the Standard Chartered bank and Citibank in an attempt to expand their businesses in 11 Asia markets. BNP Paribas agrees upon US$60 million credit deal to Vietjet BNP Paribas- a French bank and financial services company and the low-cost carrier Vietjet Air on April 15 signed a US$60 million credit agreement to financeVietjet’s purchase of five aircraft in the Airbus A320 family in 2015 and 2016. The agreement has acknowledged the effective cooperation between BNP Paribas and Vietjet after BNP Paribas served as a financial adviser to Vietjet in relation to the lease financing of the first seven aircrafts that VietJet have received in 2014 and early 2015. The agreement is part of a contract to lease and purchase 100 aircraft between Vietjet and Airbus that is seen as a contribution to boosting the strategic partnership between the airline and the international bank. VietJetAir's Deputy General Director Dinh Viet Phuong said BNP Paribas and Vietjet will fully tap their advantages for mutual development, adding that the move will help develop Vietjet fleet as well as customers get easier access to best aviation services. MoT to analyse, cut infrastructure projects The Ministry of Transport said it will re-examine transport infrastructure projects throughout the nation and eliminate those deemed as unnecessary to cut down spending from the State budget. The move aims to curb the increasingly alarming problem of inflating budgets for transport projects, which end up guzzling investment capital. Several reports have been made of projects demanding more investment capital than their initial budgets, but only after they begin, thereby tying the hands of many involved parties. In one case, the initial investment budget for the Ha Noi-Hai Phong Highway project was quoted at VND24.5 trillion (US$1.1 billion) but, shortly after construction began, the contractor said that it would actually need VND50 trillion ($2.3 billion) to finish. The Cau Gie-Ninh Binh Highway was another example. The project had an estimated cost of VND3.7 trillion ($170 million), however, it has been gradually increased to VND8.9 trillion ($409 million). Deputy director of the ministry's Department of Construction Management and Transport Quality Duong Viet Roan, said the reason for the increases are due to unnecessary scale and execution of the projects. For example, he said, in highway construction projects contractors could add soil to weak roadbeds and monitor them throughout the construction progress. However, most constructors purposefully chose to build viaducts that cost three or four times more and are improper to the actual need. For flyover construction projects, due to a shortage of national standards, some flyovers are built to be 4.75 metres tall instead of the standard 4.5 metres. This can significantly increase the cost of a project, Roan said. To solve the problem, Nguyen Ngoc Long, an official from the ministry's consultant group said that it was necessary to set up an inspection team to tighten control over design and consultancy work. Investors will be made responsible for choosing the scale of their projects instead of relying on design and consultancy units; this would curb waste in purchasing building materials. Another expert from the group, Tong Tran Tung agreed, saying the establishment of an inspection group would help curb unnecessary costs such as lighting systems along the Lang-Hoa Lac and HCM City-Trung Luong routes. Minister Thang said it was necessary to re-examine transport projects, and tighten up construction in-progress to cut down investment capital by 15 to 20 per cent. Previously, the ministry re-examined a series of projects and saved up to VND40 trillion (US$1.8 billion), more than VND11 trillion ($506 million) of which was from inflated designs. Local authorities told to harness macadamia nut Authorities should pay attention to cultivating macadamia effectively and building a trademark for the nut as the tree could bring high economic benefits, an official said. These benefits were especially important for Viet Nam as it is seeking the growth of value-added products in the agriculture sector. Nguyen Tri Ngoc, general secretary of the Viet Nam Agriculture Association, said this during an online discussion on macadamia held in Ha Noi on Tuesday, adding that growers also needed to care much about the number of trees they planted, cultivation areas and output. "One of the most important issues is a suitable cultivation area and high quality seeds. Even though the north-western and Central Highlands regions offer conditions best suited for the plant's growth, it has some areas, which are not good for the tree," Ngoc said. He added that rubber and coffee had been key pillars in Viet Nam's agriculture industry over the past century and undergone several ups and downs, noting that finding markets for the nuts was also a critical issue for avoiding the situation of bumper crops and low prices. "Businesses are required to participate in cultivation during an early period to link production and purchasing with their commitments," he said, adding that the commitments would make them responsible for their investment. Huong Hoe, former director of the Forest Inventory and Planning Institute, said Viet Nam was estimated to have around 1 million macadamia trees covering an area of 5,000 ha (ha). Hoe said he had visited macadamia cultivation farms in Australia, which had climate similar to Viet Nam's Central Highlands region. The Ministry of Agriculture and Rural Development also supports the tree's cultivation. Sharing his ideas, Nguyen Duc Huong, vice chairman of LienVietPostBank, said Viet Nam had missed the opportunity to earn money from macadamia farming in the Central Highlands region over the past decade. Several farmers said people were now waiting in queues to buy their macadamia produce, Huong said. Viet Nam could even enjoy higher profits due to favourable weather coupled with cheap labour costs. He said the bank had built a value chain for macadamia cultivation. They would lend to farmers, while the Him Lam Company would provide seeds, technical consultancy, as well as build a processing factory, ensuring purchasing and buying insurance for farmers. "It means that farmers would have no risk in capital." In addition, the tree would be planted through intercropping with coffee to maximise risks in macadamia cultivation. Da Nang office in S Korea to promote trade The central city plans to open its representative office in South Korea to promote investment, trade and tourism between the city and its Korean partners this year. Director of the city's foreign affairs department Luong Minh Sam yesterday said the establishment of the representative office abroad would lure more investors and tourists to Da Nang via promotion programmes. "The opening of the city's liaison office abroad will create a link between domestic enterprises and foreign investors, as well as the city's priority policies for investors," Sam said. "The city had set up a representative office in Tokyo, Japan, to build links among Japanese and Vietnamese enterprises and smoothen the way for investors," he said. Sam said the city was in discussions with Korean partners on selecting Seoul, Busan or Incheon as the location of the representative office. The city has long tried to attract foreign investment, by offering low land rents of about $30 to $33 per sqm per year to businesses, and quick processing of business licences. Da Nang's investment promotion centre said the city has attracted 305 FDI projects with a total investment of $3.37 billion, of which 37 projects worth US$710 million were from Korean investors. Korean ranked second in the list of investors in Da Nang, accounting 21 per cent of the total foreign investment capital. Viet Nam Airlines operates two direct flights a week from Da Nang Airport to Busan, while the low-cost Air Busan from Korea operates two weekly flights between the two cities. Five airlines operate 20 flights from Korea to Da Nang every week, carrying an average of 2,000 passengers. HAGL fulfills 91% of 2014 plan, sees $141m in revenue HAGL Group (HAGL) recorded revenue of VND3.05 trillion (US$141 million) last year, fulfilling 91 per cent of last year's business plan, said General Director Vo Truong Son at the company's annual shareholders meeting yesterday. Of the total revenue, only revenues from real-estate business and commercial sales exceeded the projections by 19 and 209 per cent respectively, he said. Son said that sugar production brought HAGL revenue of VND1 trillion ($46.3 million), 92 per cent of the plan. Rubber production recorded the lowest revenue, VND227 billion ($10.5 million), which was only 67 per cent of the yearly plan. HAGL's income from finance operations was more than VND1.47 trillion ($68 million), an increase of 47 per cent over 2013, he said. At the end of last year, HAGL's outstanding loans were more than VND18 trillion ($833 million), an increase of 22.2 per cent over 2013. Short-term loans doubled to VND6.84 trillion ($316.6 million) and long-term loans amounted to VND11.3 trillion ($523 million), Son reported. HAGL will issue 79 million shares from last year's undistributed after-tax profits and pay a ten-per cent dividend to its shareholders. The group will also issue an additional 10 million shares as a reward to its employees, he said. This year, HAGL projects a total revenue of VND5.34 trillion ($247 million), an increase of 75 per cent over 2014. Of the total revenue, cattle for meat production would constitute 46 per cent of revenue, equal to VND2.47 trillion ($114.3 million); real estate VND769 billion ($35.6 million), 14 per cent; and construction business VND785 billion ($36.3 million) 15 per cent of the 2015 plan. The group's Board of Directors set a pre-tax profit target of VND2.1 trillion ($97.2 million), an increase of 18 per cent over 2014. Of the planned VND2.1 trillion, the BoD will use 5 per cent for investment and development, 3 per cent for social welfare and 10-15 per cent for dividends in the form of money or shares. Workshop promotes sustainable lifestyle A workshop on Sustainable consumption in Viet Nam – small actions, great changes took place in Ha Noi on Tuesday, focusing on measures to promote sustainable consumption practices across the country. The event was part of the GetGreen Viet Nam project, funded by the European Union and implemented by the Dutch Delft University of Technology, the Viet Nam Cleaner Production Centre and the Asian Institute of Technology in Viet Nam. Ambassador-Head of the Delegation of the European Union to Viet Nam Franz Jessen said the project aimed to change consumption practices in Asia and targeted consumers and relevant non-governmental organisations. GetGreen project helps generate higher demand for sustainable products, thus enhancing small- and medium-sized enterprises' supply capacity, Jessen said. Since October 2014, the project has trained more than 1,000 people to inspire consumers to change their habits and lead an environment-friendly lifestyle. Forex rates need to be adjusted: experts Experts have urged the central bank to apply the crawling peg - an exchange rate regime that allows depreciation or appreciation to happen gradually - to help firms develop appropriate business plans. At a conference organized by the Academy of Finance's Institute of Economics and Finance on April 15, the stronger dollar in the world's financial market and the recent rise in the VND-USD exchange rate in the unofficial market was discussed. Although, the State Bank of Vietnam at the end of last month had committed to keeping the exchange rate stable, the institute's Deputy Director Nguyen Duc Do, said at the conference that the market was awaiting an adjustment from the central bank, given the rising dollar rates against many other major currencies. Do said the crawling peg regime would be helpful for the economy, where the export potential remained large, adding that this would help firms, especially export firms in foreseeing forex adjustment and develop appropriate business plans. He added that if a crawling peg was applied, a cap on exchange rate adjustments for a year would become necessary. According to Le Quoc Phuong, deputy director of the Vietnam Trade and Industry Information Centre under the Ministry of Industry and Trade, a crawling peg could save the market from possible shocks arising from a huge exchange rate adjustment at one time. In addition, if the exchange rate was kept stable longer term, this might result in speculation. Phuong stressed that the exchange rate should be adjusted more regularly with mild adjustments that prevent market shocks. The Vietnamese dong was devalued by 1% from VND21,246 to VND21,458 against the US dollar in January, the first exchange rate adjustment since 2013. The central bank had pledged that the forex rate would be adjusted by no more than 2% this year. Firms asked to put eggs in farming basket The Vietnam Chamber of Commerce and Industry (VCCI) will collaborate with relevant agencies to boost the participation of businesses in the agriculture sector. VCCI Chairman Vu Tien Loc made the announcement at a conference in Hanoi on April 16, after the chamber released an annual report on Vietnamese enterprises, with a focus on their agricultural operations. National Assembly Economic Committee (NAEC) Vice Chairman Mai Xuan Hung said the Government had adopted a strategy for developing a large-scale and hi-tech agriculture industry, in line with general efforts to restructure the economy and innovate development models. Simulated activities are enhancing the quality and added value of products, boosting exports, besides connecting agricultural production with the processing, maintenance and distribution industries. Fostering competitiveness and establishing links with global value chains will also be encouraged. "Enterprises will play a vital part in order to achieve these goals, but the linkages between businesses and farmers are weak and unstained," Hung said. It was revealed at the seminar that while 70% of the country's population was made up of farmers and agriculture contributed to about 20% to the national gross domestic product (GDP), only 1% of the local businesses were operating in the area. The Deputy Minister of Agriculture and Rural Development, Ha Cong Tuan, said agricultural production was mainly associated with business households, which mostly traded in raw products. This had limited the chances for enhancing product values. Investments in agriculture had seen little improvement, he said, adding that social investments in the area totalled around VND61 trillion (US$2.9 billion) last year, with some 43% of the finance coming from the State budget. Experts from the VCCI's Enterprises Development Foundation, Luong Minh Huan and Pham Thi Thu Hang, mentioned a drawback related to costs and markets, as well as the lack of capital and investment incentives, as hindrances in the participation of businesses in the area. However, Loc said there had been some positive signs. "Many major enterprises in Vietnam, which are involved in property, banking and financial investments, have recently shifted to agricultural developments. This is proof that the area promises significant potential and high profitability in the long run," he said. "Heading hi-tech agriculture will be the right direction for Vietnam, in a context that the majority of our population has rural inhabitants. Any breakthrough will come only if enterprises together start a movement to lead proper methods for tighter connections with farmers and households," he added. The Asian Development Bank's (ADB's) Country Director in Vietnam, Tomoyuki Kimura, said business associations were important for driving the business performance of small and medium-sized enterprises (SMEs). He said the private sector had been driving the economic development of Vietnam in general and the Cuu Long (Mekong) Delta in particular. The delta is the country's main agricultural region, owing to its fertile soil and abundant water sources. "In a matter of a decade or two, Vietnam came from nowhere to rank among the largest agriculture exporters in the world. A net food importer as recently as the 1980s, the country is now one of the largest rice exporters and an increasingly important supplier of aquaculture products. The Mekong Delta has been the engine for this growth," he said. Kimura noted, however, that export growth had mainly been achieved by ramping up volume rather than improving quality, and that the environmental impact of rapid growth was not often reflected in export prices of various farm produce in the delta. Earlier this year, Prime Minister Nguyen Tan Dung had endorsed the selection of agricultural food processing as a field for developing industry clusters and value-chain products. Kimura said the Government would need to effectively monitor the exploitation of natural resources, emphasizing the importance of policy development through strong public-private dialogue. He said ADB was committed to helping improve the effectiveness of such dialogue, and that "the Mekong Delta is a keystone of the ADB's Greater Mekong sub-region programme."  Loc said Vietnam has about 4.6 million business households and 500,000 enterprises. Only 2% of the companies are large, while 96% are small and 2% are medium. Business start-up competition kicks off nationwide Young entrepreneurs nationwide can register for the 3rd Start-Up Wheel competition, which aims to help them gain expertise, experience and support, from April 14 to May 15. According to Truong Ly Hoang Phi, CEO of the Ho Chi Minh City Business Start-up Support Centre, the competition will organise 10 major events in Ho Chi Minh City, Hanoi, Danang, Hue, and Can Tho with an estimated 1,500 participants and 500 initiatives competing against each other. At the elimination round, candidates present their business plans - both online and offline - to the management board. The semi-finalists go through 4 challenges of writing their plans, designing their trademark recognition tools, making promotional videos and raising funds at the website fundingvn.com Last year, the competition drew in 5,000 students in Ho Chi Minh City. In total, 348 start-up plans appealed to 500 investors and received a combined investment of VND10 billion (US$460,829). Throughout the journey, 11 outstanding initiatives received full sponsorship. Annual report spotlights enterprise role in agriculture The Vietnam Business Annual Report 2014 was released in Hanoi on April 15 with a focus on enterprise development in agribusiness. The report analyses the close connection between the development of enterprises and the quality of economic growth in agriculture. It notes that agriculture is pivotal to ensuring national food security, eradicating poverty, and earning hard currency, thus contributing to political and social stability. However, there are a substantial number of shortcomings in Vietnam’s agriculture, lagging behind regional rivals. To address these weaknesses, business engagement in agriculture is necessary to improve farm produce quality and values, it says. Mai Xuan Hung, Vice Chairman of the National Assembly Committee on Economic Affairs, said although agriculture continues to act as a pillar of the economy, the connection between farmers and enterprises is unsustainable. He urged strengthened linkages among farmers, companies, cooperatives, and scientific institutes in order to promote large-scale cash crop production, product quality, processing, and export, ultimately optimising the efficiency of agribusiness. A representative from the Vietnam Chamber of Commerce and Industry (VCCI) pointed out major hindrances to Vietnam’s agribusiness, such as small-scale and scattered production facilities; low quality materials; poor financial strength; lack of access to global scientific, technological and market information; and cumbersome legal regulations. The VCCI representative suggested businesses improve their management capacity, modernise production activities, and pay more attention to niche markets to avoid direct competition with rivals in major markets. The annual report noted that Vietnam’s gross domestic product (GDP) growth rate reached 5.98 percent last year, the largest since 2011. Export revenue reached 150 billion USD while imports posted at 148 billion USD, generating a trade surplus of 2 billion USD. Financial and monetary markets remained stable with deposit and lending interest rate caps lowered, facilitating business development. The 4.09 percent annual rise of the consumer price index in 2014 was the slowest in a decade. Railway companies offer assistance to onion farmers General Director of the Vietnam Railways (VNR) Vu Ta Tung has instructed the Hanoi and Saigon Railways to help transport free of charge onions from southern provinces. According to the VNR, the move aims to alleviate difficulties for farmer in a number of southern provinces, where the price of onion has dropped strongly over recent days. The free transport is only applicable through May 15 from the Song Than station in the southern province of Binh Duong to stations in the north of the country.- Soc Trang breeds ground for new enterprises An business incubation model was established in the Mekong Delta province of Soc Trang on April 15. The initiative aims to build a “new” generation of enterprises to fuel international integration and actively contribute to local social economic development. Funded by the Canadian government, the programme is a key activity of the province’s development plan for small-and medium-sized enterprises (SMEs). The model is expected to help new enterprises or individuals overcome initial challenges in starting businesses in the province. Director of the provincial Department of Planning and Investment, Mai Phuoc Hung said most start-up enterprises face difficulties such as a lack of strategic orientations, underperforming administrative competency and low trade promotion and connection skills. In an attempt to help these enterprises overcome obstacles, local bodies have implemented supportive policies and create favourable conditions for them to develop effectively. The province is currently home to 2,200 businesses, of which SMEs account for over 96 percent—playing a significant role in creating new jobs and reducing poverty in rural and remote areas. Vietcombank receives dual awards The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been honoured with two prestigious awards, Best Cash Management Bank and Leading Counterparty Bank in Vietnam. The awards were announced during the Asian Banker Summit taking palce in Hong Kong (China) from April 14-16. A number of international banks from 30 countries and territories in the Asia-Pacific region participated in the annual banking event. Established in 1963, Vietcombank is one of the largest commercial lenders in Vietnam with nearly 400 branches. It has banking relationships with more than 1,700 banks in 120 countries and territories. In 2015, the Asian Banker group will continue to evaluate more than 100 financial institutions in the Asia-Pacific region to present the Asian Bankers Transaction Banking Awards. New port to be built in Binh Thuan The central province of Binh Thuan will commence construction on Vinh Tan General Port on April 16. The provincial news website baobinhthuan.com said the port, located next to the Vinh Tan Thermal Power in Tuy Phong district, is designed to have two general wharfs, which can receive vessels of up to 30,000 deadweight tonnage (DWT) and one wharf, which will serve ships and cargo of up to 3,000 DWT. The port has been included in the Vietnam Seaport System Development Planning for 2020 and orientation for 2030 approved by Prime Minister Nguyen Tan Dung last June. It will meet demand for exports and imports, as well as socio-economic development, in Binh Thuan and the neighbouring provinces. Thus, the Vinh Tan General Port, once operational, will play a significant role in the Southern Central Area. The port's construction is estimated to cost 1.336 trillion VND (61.8 million USD), and it is expected to receive from 2 to 2.4 million tonnes of cargo this year and between 4 and 6 million tonnes per year by 2020. Foreign enterprise joins Hanoi-Haiphong railway project The Italian-Thai Development Public Co. Ltd (ITD) and the Importcorp company (IMP) will conduct a study on a 100-kilometre railway linking the capital of Hanoi and the port city of Haiphong. The announcement was made at a working session recently held between the Vietnamese Ministry of Transport (MOT) and the two investors. The US$800 million project, conducted under a public-private partnership, will include the creation of bond-houses, storage, infrastructure and facilities at Dinh Vu port, serving railway services. In the first phase, a single-track railway with a standard gauge of 1.435m will be installed, with a double-track railway deployed in the next phases. The project is expected to be implemented in the second quarter of 2017 and completed after 3 and a half years of construction. Businesses remain ‘vague’ about safeguard measures Vietnam successfully defended trade safeguard lawsuits related to exported products last year, according to a recent annual report of the Vietnam Competition Authority under the Ministry of Industry and Trade. For example, India and Thailand removed Vietnam from their list of the countries subject to safeguard duties on raw elastic thread and non-alloy steel, respectively, while the European Commission (EC) stopped investigations without imposing anti-subsidy tariffs on polyester staple fibres (PSF) imported from Vietnam. Despite gaining certain success, the country’s implementation of protective measures still face a number of obstacles. Meanwhile exporters and associations have been fully unaware of legal regulations, particularly safeguard measures. Besides, not a few State policies violated the World Trade Organisation (WTO) agreements as a result of limited understanding of trade safeguard measures, causing anti-subsidy lawsuits against Vietnam exported products. Hustle and bustle of fish markets The border gate in An Giang province has been lively, boisterous, colourful, smelly and gritty with an electric atmosphere during the early months of the year, full of Cambodian traders travelling to Vietnam to buy fish, shrimp and prawns. At the crossing there is a lot of talk that Cambodia once a powerhouse in the Southeast Asian region for fish exports has transformed into just the reverse, a lucrative export market for the Vietnamese aquaculture industry. Cambodia has been transitioning into a large prosperous fish market for Vietnamese farmers said Lam The Gioi Customs Department head at the Tinh Bien border gate. Since the Tet (Lunar New Year) holiday, exports of seafood have been on the uptick with hundreds of tonnes of seafood having made its way into Cambodia via the border crossing. The selection has been quite varied including snake head catfish, white carp, common carp, grass carp, bighead carp, Spanish mackerel, short body mackerel, salmon, prawn, shrimp, crab, cockle and others. You name it and it’s regularly being transported to Cambodia via the border crossing he said. Cambodia has a long history of exporting mainly freshwater fish and related products from its low technology aquaculture farms to other countries in Southeast Asia dating back centuries. However, according to government officials and traders, stocks of both freshwater and marine fish have been steadily declining over the last few years that have given way to the shift of the country into a leading fish importer in the region. Year after year they have said Vietnamese exports of live, fresh, frozen, and processed fish have been steadily increasing and finding their way into the Cambodian market as local fish have been insufficient to keep up with domestic demand. Reliable statistical data on imports into Cambodia is not readily available, because most imports have been sold at urban and rural fish markets as the legal system for importing fish from Vietnam is not commonly used in practice. Many traders with limited funds use unofficial border crossings to avoid paying the high import fees. Only large scale traders that have the capability and financial resources to transport several tonnes of fish at a time pay the necessary import fees and use the legal method. In late March, at the Khanh Binh border gate in An Phu district, An Giang province, there were a bevy of trucks loaded to the hilt with fish, shrimp and prawns parked at the Long Binh market. Immediately, thereafter, a large group of Cambodian traders who were waiting at the Chraythom border gate in Kandal province, Cambodia, swept in and bought the lot and transported all of it to Phnom Penh. A Vietnamese trader said Vietnamese fish has been selling at VND25,000-50,000 per kilogramme in Cambodia and is quickly becoming a popular menu item and a staple in most all restaurants throughout the country. Trading has also picked up at the Tinh Bien border gate where fish exports have regularly passed through on its way to Takeo and Kampot provinces in Cambodia reported local resident Nguyen Van Tuan. Cambodian traders often purchase Vietnamese fish for VND2,000-4,000 per kilogramme higher than it is sold for in Vietnam, Tuan added. Bui Phuoc Dinh, director of Dinh Nguyet Company Limited, said every day his company collects fish and shrimp in local markets and then resells it to regular Cambodian customers. Business is booming and the company has on average exported tonnes of seafood to Cambodia daily, Dinh said, which has resulted in creating hundreds of jobs for employees with average monthly earnings of VND4.5 million. A number of Cambodian traders shared that land for aquaculture has been on the decline as it is being put to other uses. In addition, fishing has become more strictly controlled, making it difficult for aquaculture, they stressed. Nguyen Van Thao, vice chairman of the An Phu District People’s Committee said Khanh Binh border gate located 70km from Phnom Penh as the crow flies has the added advantage of trade via using river transport. Consequently, it greatly facilitates traders from both Vietnam and Cambodia and the gate has become a trans-shipment point for all products, including agricultural products and seafood, Thao said. Currently, the Binh Di Bridge connecting Cambodia to Vietnam is on track to be completed in the near future, which will also benefit traders. Ngo Hong Yen, Tinh Bien district People’s Committee Chairman said the expansion of Vietnam’s seafood trade to Cambodia has been a positive development for aquaculture providing a readily accessible lucrative market. Iranian businesses to join Vietnam Expo 2015 An Iranian delegation of entrepreneurs is expected to join the Vietnam Expo 2015, to be held from April 15-18 in Hanoi, to seek investment opportunities in Vietnam. The tour, organised the Iranian Chamber for Commerce, Industry, Agriculture and Mining (ICCIAM), will be joined by 13 representatives from petrochemical, trade and light industry firms. During a reception for the delegation on April 12, Vietnamese Ambassador to Iran Nguyen Hong Thach lauded the effort of Iranian businesses to invest in Vietnam, contributing to fostering the cooperative ties between the two nations. He briefed them on the business climate in the country, highlighting the international free trade agreements which Vietnam expects to join. Vietnam is currently negotiating the terms of the Trans-Pacific Partnership (TPP) with 11 countries, which presents huge potential for Iranian investors to explore markets in Vietnam and other nations, Thach underlined. The business representatives expressed their hope that a direct air route between Iran and Vietnam will soon be launched to further facilitate the political and economic relations between the two countries. The 25th annual Vietnam Expo 2015, themed “Partnership towards the ASEAN economic community”, is set to have 720 booths of more than 600 exhibitors from over 28 countries and territories worldwide, including the UK, India, Australia, Germany and Japan. A wide range of products will be showcased, from machinery, electronic equipment and spare parts, to food and beverages and health care products. Tuna export value slips on low demand, reduced prices Tuna exports continued to slide during the first two months of this year due to low demand from the traditional markets and owing to a reduction in price, the General Department of Customs' statistics indicated. During the first two months of this year, Viet Nam earned US$63.2 million in the total export value of tuna, 13.5 per cent lower than the same period last year, the general department said. However, the percentage of processed tuna products for exports rose from 38 per cent to 50 per cent of the total export value of tuna. Exports of most tuna products were cut by 46 per cent, including live, fresh, frozen and dried tuna products. Canned tuna exports fell by 3 per cent and tuna loins slipped by 13 per cent. Meanwhile, exports of other processed tuna products surged strongly by 36 per cent, the Viet Nam Association of Seafood Exporters and Producers (VASEP) said. The United States, European Union (EU), Association of South East Asian Nations (ASEAN), Japan, Israel, Libya, South Korea and Taiwan were the top eight importing markets, accounting for 81 per cent of total Vietnamese tuna exports. Among these, ASEAN was the only market that had boosted tuna imports from Viet Nam by 20.7 per cent to $6.2 million for the first two months of this year, compared with the same period last year. The export value of Vietnamese tuna fell by 13.8 per cent to $21.5 million in the United States and 21 per cent to $17 million in the EU from a year ago. The reduction in Viet Nam's tuna exports was due to lower tuna prices, the depreciation of the Euro and lower market demand from traditional markets, the general department said. Tuna prices dropped from a high of $2,400 per tonne in October 2012 to $1,000 at present in Thailand, one of the largest tuna markets in the world. The depreciation of the Euro at present has strongly impacted production costs and competitiveness of tuna processors and exporters in Asia, such as the Philippines, Thailand and Viet Nam. Vietnamese firms urged to focus on Myanmar market Vietnamese firms should study the Myanmar market and act quickly to take advantage of trade and investment opportunities there, the Investment and Trade Promotion Centre of HCM City has said. Ho Xuan Lam, the centre's deputy director, said with its population of 60 million, Myanmar was a large market for consumer products since its demand far outstripped production. Myanmar mostly imported consumer products, mainly from China and Thailand. In recent years Vietnamese firms had expanded exports to Myanmar, but they still accounted for a very small market share due to high transportation costs. Besides, Vietnamese goods faced fierce competition from Thai and Chinese goods. Vietnamese firms should focus on long-term investment rather than quick profits. Nguyen Van My, chairman of Lua Viet Tours Co., Ltd, said with a disadvantage in terms of distance compared to China and Thailand, Vietnamese firms could compete only by investing in producing in Myanmar. Telecom, wood processing, food, tourism, and construction were some of the sectors Vietnamese firms should focus on. There were not many restaurants in that country, while tourism and IT services were pretty much in short supply. Lam said one more direct service from HCM City to Yangon was expected to start this year, while the Bank for Investment and Development of Viet Nam was expected to get approval to open a branch in that country, making it easier for Vietnamese firms to do business. During their visits to Myanmar last year and this year HCM City leaders had urged the country's Government to create condition for Vietnamese firms to set up an industrial park in Yangon. Trade between the two Southeast Asian countries topped US$480 million last year, of which Viet Nam's exports were worth $345.9 million, a year-on-year increase of 51.8 per cent. The two have set a target of raising bilateral trade to more than $500 million this year. VCCI survey studies business community's performance The Viet Nam Chamber of Commerce and Industry (VCCI) will survey the performance of the business community in the country until April 20, the chamber announced on its website. Through the survey, VCCI plans to collect information about the firms' difficulties in doing business, as well as their recommendations and then submit these suggestions to the State and relevant ministries in an attempt to create a favourable climate for the businesses. Enterprises can download the survey form at www.vcci.com.vn. The VCCI said over the past years, the State, ministries, sectors and localities had shown great determination for developing policies and drawing up supportive measures to help enterprises gradually overcome business challenges and ensure their stable development. Meanwhile, business associations and employers in the country had also taken the initiative formulate policy advice and recommendations concerning reforms in the business environment and administrative procedures. More than 5,000 businesses became operational again during the first quarter of this year, posting a 10 per cent year-on-year increase, the General Statistics Office (GSO) said. This had shown that the economy had recovered and presented investment and trading opportunities for firms in difficulty, GSO said. During the three-month period, Viet Nam saw over 19,000 newly-established enterprises starting businesses, with a total investment of VND111.2trillion (US$5.19 billion), up 4 per cent and 13.5 per cent in terms of their count and registered capital, respectively. GSO's data also revealed that in March, 5,238 new firms were established, with a total registered capital of VND33.7 trillion ($1.57 billion). The average registered capital for each company was pegged at VND5.8 billion ($271 million) in March. VN petrol remains stable despite increase in world prices The domestic retail price of petroleum remained unchanged at VND17,286 (US$0.80) per litre yesterday, despite the increase in the world price over the past 15 days. The ministries of industry and trade and finance decided to keep the diesel selling price at VND15,883 per litre, E5 at VND16,956 per litre, oil at VND16,073 per litre and mazut at VND12,653 per litre. The two ministries also asked fuel companies to maintain the stabilisation fund for petroleum at VND991 per litre, while reducing it for other items by VND134 per litre for diesel, VND217 per litre for oil and VND383 per kilo for mazut. The ministry said that the selling prices were not changed in order to stabilise the market after the power tariff hike. In addition, the government wanted to make the prices of products and services stable, especially transport, during the upcoming holiday. Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR