BUSINESS IN BRIEF 26/5 Long Hau IP to meet with investors The Long Hau Industrial Park Management Board is hosting a meeting with industrial park tenants on May 26 in order to listen to their concerns and suggestions to better support their operations. The event, which aims to foster the relationship among investors, the board as well as the authorities of Long An province, is going to be held at the conference room in the Long Hau Industrial Park Management Board Building in Village 3, Long Hau commune, Can Giuoc district, Long An province. Guests come from the Korean Chamber of Commerce in Vietnam, the American Chamber of Commerce in Vietnam, the Italian Chamber of Commerce in Vietnam, leaders of Long Hau JSC - developer of the park, and over 127 investors in the park. At the meeting, the Long An Provincial People’s Committee is going to report on the province’s progress in attracting investors and its activities to support the business community in 2015 as well as policies in investment, infrastructure, taxation and environment. Representatives of Long Hau JSC are going to report on the operation of the park. With the event, Long Hau JSC reinstates its commitment in supporting investors in the park. HVG purchases 50 per cent stake in FMC for US$2.78m Hung Vuong Corporation (HVG) bought 2.5 million shares issued by Sao Ta Foods Joint Stock Company (FMC) for a price of VND24,000 (US$1.11) per share. The investment totaled at VND60 billion ($2.78 million). HVG stakes in FMC now amounts to 10 million shares, equal to 50 per cent of FMC's chartered capital. The deal will help FMC since it can now call on capital and operation support from HVG. In the first quarter of this year, FMC recorded revenue of VND504.3 billion ($23.3 million), a decrease of nine per cent over the same period last year. The company's after-tax profit rose by 175.34 per cent to VND11.8 billion ($546,000) in the first three months. After Friday's session, FMC's share rose by 3.28 per cent to stand at VND25,200. In contrast, HVG's revenue fell by 16.5 per cent to VND3.12 trillion ($144 million) in the first quarter. The company recorded a net profit of VND50 billion ($2.3 million), a decrease of two-thirds compared to last year. After the last trading session, HVG share reached its ceiling price of VND18,500. CIMB–Vinashin Securities Company suspended from nothern bourse The State Securities Committee (SSC) decided last Friday to suspend CIMB-Vinashin Securities Company (VSC) from the stock market for six months, starting May 22. SSC said that VSC had failed to comply with regulations issued by the Ministry of Finance. VSC failed to meet requirements regarding the company's minimum financial budget. CIMB-Vinashin was once the one-member VFC Securities Company, set up by Vinashin Finance Company (VFC) with a chartered capital of VND300 billion (US$13.9 million). Earlier this month, the Viet Nam Securities Depository (VSD) revoked VSC's membership licence. Thuong Dinh Footwear Company to hold public offering in June The Ha Noi Stock Exchange (HNX) will organise an initial public offerings (IPO) for Thuong Dinh Footwear One on June 8. The company will offer 1.9 million shares with an initial price of VND10,000 per share. These shares are valued at 20.46 per cent of the company's chartered capital post-equitisation. The company expects a chartered capital of VND93 billion ($4.3 million) after IPO, with 36 per cent of stakes held by the state, 23.54 per cent held by its employees, 20 per cent purchased by strategic investors and 20.46 per cent sold on the market. The company has stakes in two other firms in Ha Noi - 86.85 per cent of stakes in the Ha Noi Rubber Joint Stock Company and 18.67 per cent of stakes in Ha Noi Truc Bach Paper Joint Stock Company. Thuong Dinh Footwear Company produces sneakers, sport shoes, sandals and slippers. The company's sales volume averaged over 3.9 million pairs a year from 2012 to 2014. The company's after-tax profit in 2013 and 2014 were VND930 million ($42,649) and VND3.67 billion ($168,000) respectively. CPI in May rises 0.16 percent The consumer price index (CPI) for May showed an increase of 0.16 percent over April and a year-on-year surge of 0.95 percent, the General Statistics Offices (GSO) said on May 24. Hence, average CPI in the first five months of 2015 increased 0.83 percent compared to the same period last year. According to Deputy Director of GSO’s Pricing Statistics Department, Do Bich Ngoc, the rise in May’s CPI is mainly due to the hike in petrol price on May 5, which contributed to a 0.08 percent increase in the CPI. The rise in electricity price in March plus surging electricity use due to hot weather also pushed the CPI up by 0.11 percent. Seven out of 11 main commodity groups in the CPI baskets showed price increase, led by housing and building materials, which jumped 1.27 percent since last month. A 1.02 percent increase was seen in transport service; 0.13 percent for home appliances; 0.39 percent for cultural, entertainment and tourism; and 0.17 percent for goods and other services. Only restaurant and catering services had a price reduction, which was 0.22 percent compared to April. Meanwhile, the State Bank adjusted interbank exchange rate between Vietnamese Dong to US Dollar from 21,458 VND to 21,673 VND to one USD (one percent) on May 7. The move aims to support the country’s exports in the context of a strong USD. The office forecasted CPI in June will see a slight growth due to continued effect from the petrol price hike on May 20 and high demand of electricity during hot weather. New housing, commercial complex unveiled in Hanoi The Hoa Binh Infrastructure Construction Investment Corporation (HBI) unveiled its Imperia Garden office, housing and commercial complex in Nguyen Huy Tuong Street in Hanoi's Thanh Xuan District on May 21. The project covers an area of 42,000 sq.m, including apartments, luxury villas, offices available for leasing and a trade centre. The complex is slated to become operational by the end of 2017. Nguyen Hong Ngoc, HBI general director, which is the owner of the project, said the property market in general, and in the capital city in particular, has undergone a dramatic change, which presents an opportunity for property developers. Also at the ceremony, HBI signed strategic cooperation agreements with local partners to participate in the projects, including M.I.K corporation, VP Bank and STDA. Property brokerage association to debut The Vietnam Association of Property Brokers will make its debut on May 28 in Hanoi, according to the Vietnam Real Estate Association (VREA). The association is established as a branch under the VREA, representing individual brokers, real estate trading floors and brokerage companies. Director of Housing and Real Estate Market Management Department Nguyen Manh Ha was appointed president of the property brokerage association. There will be many changes related to brokerage activities when the Law on Real Estate Business comes into force on July 1. According to VNREA, some 30,000 people nationwide have been granted real estate brokerage and assessment certifications. HCM City's enterprises eye Myanmar market Ho Chi Minh City is implementing several trade promotional activities in Myanmar to help its enterprises effectively tap into potential markets, the Vietnam Economic Times reported. The Vietnam-Myanmar Trade, Service and Tourism Exhibition 2015 (HCM City Expo 2015), one of the crucial trade promotional activities, is ongoing in Yangon city and some 80 leading Vietnamese enterprises involved in sectors such as processed food, household utensils, garment, textiles, as well as electronics and interior decorations are participating. Vice Chairperson of HCM City People's Committee Nguyen Thi Hong said the annual expo, which is to conclude on May 24, was an effective bridge that connects Vietnamese enterprises and Myanmar customers and can help enterprises in the two countries seek new business opportunities and partners as well as exchange information. In an effort to explore the Myanmar market, Hong, along with a business delegation, worked closely with several agencies in Mandalay city and visited some supermarkets and wholesale markets in the city. Pho Nam Phuong, director of the municipal Investment and Trade Promotion Centre, noted that Vietnamese firms have increased their exports to Myanmar. Apart from exporting home appliances, pharmaceuticals, fertilisers, construction materials, and machinery and equipment, enterprises have also accelerated the export of services, especially in the IT sector. "Most of the firms have pointed out that despite its huge potential, Myanmar remains a challenging market as Vietnamese goods have to compete with locally-made goods and those from many other Asian countries," Phuong said. If Vietnamese firms want to succeed in Myanmar, they should focus on product quality rather than selling prices. Proper investment in product designs to advertise their trademarks in a better way also deserved attention, he said. Nguyen Van My, chairman of Lua Viet Tours Co, said due to the disadvantage of distance compared to China and Thailand, Vietnamese firms could compete only by making investments in production in Myanmar. Telecom, wood processing, food, tourism, and construction were some of the sectors that Vietnamese firms should focus on, he said, adding that there were not many restaurants in that country, while tourism and IT services were pretty much in short supply. Pan Food now second biggest stake holder in sweet maker Pan Food Joint Stock Company has raised its stake in confectionery maker Bibica (coded BB on the HCM Stock Exchange) to 42.25 percent, becoming the second biggest shareholder of Bibica after Korea's Lotte Confectionery. In a filing to the HCM City bourse in mid-May, Pan Food announced it purchased almost 3.26 million Bibica shares, equivalent to 21.12 percent of the company's outstanding shares in the market. The amount of purchased shares was lower than the number the company registered to buy. In early April, Pan Food made a public bid for more than 4.6 million shares of Bibica, which would account for a 29.87 percent stake. At that time, it owned 21.13 percent of BBC's stakes. Pan Food said the deal aimed to serve the long-term investment. It offered to buy each share for 56,800 VND (2.62 USD), costing about 185 billion VND (8.5 million USD) for the deal. The price of BBC has climbed 7 percent since early April, from 57,500 VND a share on April 3 to 61,500 VND on May 15. Earlier on Bibica's website, the company announced three of five board members had no objection to the proposed bid of Pan Food. Lotte is still the largest stakeholder with a 44.03 stake of Bibica's charter capital. Pan Food is a subsidiary of the Pan Pacific Corporation (coded PAN), which specialises in agriculture and food products. Apart from Pan Food, another subsidiary of Pan Pacific, Ben Tre Aquaproduct Import and Export Co (coded ABT), currently holds a 3.58 percent stake in Bibica. Bibica is one of the leading confectionery makers in Vietnam, with popular brands including Hura, Choco Bella, Orienko, Zoo and OneTwoThree. It reported sales of almost 1.13 trillion VND (52.8 million USD) in 2014, an increase of 7 percent over the previous year. Its net profit jumped 27 percent to touch 57.4 billion VND (2.7 million USD). Pan Pacific (PAN) reported a consolidated revenue of over 1.12 trillion VND (52 million USD) and a pre-tax profit of 183 billion VND (8.4 million USD) for the whole year.- Clothing firms face thorough checks Hundreds of garment and textile enterprises across 12 provinces and cities will be thoroughly inspected by the Ministry of Labour, Invalids and Social Affairs and experts from the International Labour Organisation (ILO). The inspections, to be conducted over the next five months, will look into factories' working conditions and training courses for workers. Statistics published by the Ministry of Labour, Invalids and Social Affairs showed that more than 80 percent of textile and garment enterprises inspected in 2014 violated policies about working duration, rest periods and other labour safety regulations. Vu Kim Hue, project officer of ILO Country Office for Vietnam, said on May 22 that industry enterprises push hard to meet contract deadlines, entailing large amounts of overtime for workers, who are also often unequipped with protective gear. The inspections are not aimed at punishing violators, she said, but instead on helping companies conform to labour safety regulations and improve working conditions for their workers. The Ministry and ILO representatives also hope to use the inspections as a chance to improve the knowledge and skills of labour inspectors. These labour inspectors are responsible for supporting and supervising garment companies to ensure proper labour conditions and workers' rights. About 360 garment and textile enterprises will be inspected for workers' hours, rest periods, salary, bodily protection, warning signs, fire prevention equipment and other tools to ensure safety for labourers. Japanese precision firm starts in Da Nang Tokyo Keiki Precision Technology Inc inaugurated its first plant outside Japan at central Da Nang city’s Hi-Tech Park on May 22, following eight months of construction. The 40-million-USD plant is the first to be operating in the 1,010-hectare park in Hoa Vang District, 20km west of the city centre. The plant will manufacture electro-magnetic and hydraulic equipment, targeting to export more than 50,000 digital directional valves per month for the Asia-Pacific region. According to members of the managing board of the Hi-Tech Park, another Japanese investor, Niwa Foundry company, a partner of Keiki company, also has begun construction of its first engine castings plant, at a cost of 30 million USD. It's scheduled to be put into operation in 2016. Japanese businesses have invested 330 million USD in 68 projects in the city, employing more than 27,000 people. Vietinbank officially merges with PGBank Vietnam Bank for Industry and Trade (VietinBank) and the Petrolimex Group Commercial Joint Stock Bank (PGBank) signed an official merger document on May 22, thereby opening opportunities for the new bank. With a total charter capital of nearly 41 trillion VND (1.889 billion USD), the new bank will rank first in the country's banking system in terms of charter capital. Chairman of Vietinbank Nguyen Van Thang affirmed that the merger will help the bank boost capital, develop expanded branches, and foster retail services, in addition to stepping up lending and investment. It also opened up new opportunities for VietinBank and Vietnam National Petroleum Group (Petrolimex) to head strategic cooperation, which also benefited shareholders, customers, and the State, Thang said. Following the merger, Vietinbank can enlarge its network with the help of PGBank's 16 branches and 63 offices nationwide. As PGBank is a strategic partner of Petrolimex, Vietinbank will also capitalise on PGBank's significant competitive advantages, based on its network of 6,200 filling stations across the country, to enlarge its network to communes, Thang said. He noted that following the merger, Vietinbank plans to become a banking and finance group, which will hold a key position in the domestic banking system and will have a size and capacity in line with those at regional levels. It will also look for gradual expansion to international markets. In January, Governor of the State Bank of Vietnam Nguyen Van Binh urged Vietinbank, along with Vietcombank, to actively take part in the national banking reform process by handling weak lenders. This was also part of a general scheme to consolidate the two banks' positions in the market in the future. Vietnam seeks stronger economic partnership with Iran Vietnamese Ambassador to Iran, Nguyen Hong Thach has recently paid a visit to the West Asian country’s central Yazd province to promote economic cooperation between the two nations’ localities. During the visit from May 19-20, the diplomat held a working session with Yazd Governor S.M. Mir Mohammadi and other provincial officials. Despite flourishing political relations, Vietnam and Iran still need to strongly promote their economic partnership, the Governor said while presenting the local advantages in industry, agriculture and tourism. He expressed delight at Yazd-based Alloy Steel’s collaboration with a Vietnamese partner and the upcoming shipment of the firm’s first batch of goods to the Southeast Asian country, which he described as a good signal for the future. Ambassador Thach said he expects economic relations between Vietnam and Yazd to be elevated in the time ahead. At a separate meeting with Mohammad Reza Ghomi, Director of the Yazd Chamber of Commerce, Industries and Mines, Thach presented on the fields Vietnam excels in, especially agricultural products. The Iranian official pledged he will introduce Vietnam to some of Yazd’s business clients, initially focusing on Vietnamese rice, coffee, tea and rubber. He also said a business delegation from the province will soon visit Vietnam to explore cooperation opportunities. Japan pledges to boost agro-fisheries ties with Vietnam Japan is committed to furthering cooperation with Vietnam in agriculture and fisheries, and hopes the Vietnamese Government will facilitate the implementation of the target projects. Japanese Minister of Agriculture, Forestry and Fisheries Yoshimasa Hayashi made the statement at talks with Vietnamese Deputy Prime Minister Vu Van Ninh in Tokyo on May 22. The Minister said Japan will assist Vietnam in developing the value chain of farm produce, build boats for fishermen and the fishing inspection sector, and exploiting ocean tuna. Deputy PM Ninh said he hopes the Japanese Ministry of Agriculture will help to increase the presence of Vietnamese farm produce and seafood in the Japanese market. Earlier the same day, Deputy PM Ninh, who is on a Japan working visit, hosted separate receptions for a number of Japanese business organisations. At the meeting with President of the Japan International Cooperation Agency (JICA) Tanaka Akihiko , the Deputy PM said he hopes the agency will persuade the Japanese Government to maintain official development assistance (ODA) for Vietnam, while calling on Japanese firms to expand investment in the Southeast Asian country, especially agriculture. He noted several successful cooperative projects in the field of fishery and agriculture such as the cultivation of organic vegetable in the Central Highlands city of Da Lat and the tuna fishing project in the central region. For his part, Tanaka Akihiko said JICA will continue to help Vietnam improve the investment environment to attract more Japanese firms. While receiving President of Japan-Vietnam Economic Committee under the Japan Business Federation (Keidanren) Takahashi Kyohei , Deputy PM Ninh said Vietnam is actively implementing policies to support foreign investors, including those from Japan . He noted that Japan ’s investment in Vietnam has increased three folds against the previous time. Takahashi Kyohei said Keidanren will continue to enhance economic links with Vietnam based on the agreements signed between the two sides. He added that the Vietnam-Japan joint initiative has entered the sixth phase, which is expected to improve the respective investment climate and cooperation between the two countries. During talks with Vice President of the Japan External Trade Organisation (JETRO) Satoshi Miyamoto, Deputy PM Ninh asked for JETRO’s help to develop the support industry and increase the competitiveness of Vietnamese small-and medium-sized enterprises. The Vietnamese Government will continue to fine-tune its import-export policies to develop domestic market and simultaneously benefit Japanese businesses. Satoshi Miyamoto revealed a JETRO recent survey which showed that up to 70 percent of Japanese businesses want to expand investment in Vietnam . The organisation vows to actively assist Vietnam with developing support industry and hopes the Vietnamese Government, ministries and sectors will create all favourable conditions for Japanese investors, he said. First Eastern US-bound container ship docks at Cai Mep port The United Arab Emirates’ ZAMZAM vessel moored at Cai Mep International Terminal (CMIT), in the southern province of Ba Ria- Vung Tau on May 22, becoming the first container ship to dock in Vietnam to collect goods destined for the US East Coast. The 300-metre-long ship is operated by Ocean 3, an alliance of French container transportation and shipping company CMA-CGM , China Shipping and the United Arab Shipping Company (UASC). The 9,006-TEU-capacity vessel left China’s Yantian port for CMIT and will continue its voyage to Port Kelang-El Suweis, New York and Malta, among other destinations. The deep-water CMIT is capable of receiving ships of up to 160,000DWT. Forum discusses business growth in rural areas A forum featuring the role of businesses in new rural areas took place in Hanoi on May 22, where an expert urged farmers to adopt a more commercial mindset. Two major questions for Vietnam’s agriculture is quality and quality control, said Director of the Vietnam Institute of Economics, Tran Dinh Thien, adding that large-scale production will provide the answer with farmers still playing the key role while businesses work as the organizer. Another expert, Nguyen Dinh Bich, said firms need to work closely with farmers and cooperatives to establish farm produce distribution channels. Since the National Target Programme on new rural development was launched five years ago, the nation has recognised 785 districts as new rural areas, or 8.8 percent of the total. However, businesses’ investment accounted for just 3.71 percent of the total capital disbursed for the programme, while the target is 20 percent Nguyen Van Tien, head of the Agriculture Department under the Party Central Committee’s Economic Commission, said the shortage of companies in agriculture and rural areas is slowing the economic restructuring process and creating an excessive pool of labourers in localities. He noted that the business sector plays an important role in organize production and export of agricultural products and suggested such measures as improving the quality of land planning management and vocational training, simplifying business licensing procedures in agriculture, and launching effective production models in rural areas, in order to attract businesses to rural areas. The forum was co-hosted by the Coordinating Office for New Rural Development, the Central Steering Board for the National Target Programme on New Rural Development, and the Ministry of Agriculture and Rural Development’s Trade Promotion Centre for Agriculture. HCM City enterprises learn about Vietnam-RoK Free Trade Agreement The business community in HCM City and provinces in the southern region have been informed in detail of the Vietnam-Republic of Korea Free Trade Agreement (VKFTA). At a conference titled ‘The Vietnam-RoK Free Trade Agreement (VKFTA): Commitments and its Impacts on Vietnamese Enterprises’ held in HCM City on May 22, the Ministry of Industry and Trade introduced the agreement’s key points. Pham Khac Tuyen, head of the Northeast Asia Division under MoIT’s Asia-Pacific Market Department, said the opportunity for Vietnamese commodities to enter the RoK will be greater than ever, because the agreement has abolished taxes on many Vietnamese goods. Concerning imports, Tuyen said it is now easier for Vietnam to get access to materials and parts used for the manufacturing of garments and textile, footwear and electronics at cheaper prices, thus reducing the risk of reliance on certain countries for these vital materials. Specifically, tax commitments in the VKFTA will see the RoK liberalise 97.2 percent of its import tariffs, including many key exports of Vietnam such as agro-products and seafood. According to Tuyen, the challenges for Vietnamese enterprises and the domestic market are not big because the Vietnam-RoK trade relationship is complementary. He added that Vietnam’s commitment regarding services and investment will help the country form a more transparent and open environment to draw investment from the RoK as well as other countries. Tran Ngoc Liem, deputy director of the Vietnam Chamber of Commerce and Industry in HCM City, said that challenges from the VKFTA will force Vietnamese enterprises to improve their competitiveness, thus preparing them for the tougher competition from other upcoming FTA agreements with the United States, the European Union and the Customs Union of Russia, Belarus and Kazakhstan. Vietnam-RoK trade has increased tremendously from 500 million USD in 1992 to 26 billion USD in 2014 with an annual growth of 20 percent. The RoK is Vietnam’s third biggest trade partner, fifth biggest export market and second biggest import market. The Northeast Asian country is also the leading investor in Vietnam with 4,140 valid projects and a combined capital of 37.43 billion USD as of the end of 2014. Deputy PM directs ministries to boost agro-product exports Deputy Prime Minister Hoang Trung Hai has asked governmental agencies to help facilitate agro-product exports since it faced a decline in the first four months of this year. The leader has requested that the Ministry of Industry and Trade (MoIT) forms an inter-sector working team on exports and imports while speeding up negotiations on trade agreements. MoIT was asked to increase its promotional activities and better manage cross-border import and export activities. The Deputy PM has asked the Ministry of Agriculture and Rural Development to review regulations concerning quarantine procedures and to revise unsuitable regulations. He has also ordered the State Bank of Vietnam to examine proposals providing incentivised credit packages for enterprises that export agro-products. The Ministry of Finance will examine added value taxes and other tariffs on tea, semi-processed rubber and spare parts used in hi-tech products. Hai asked the Ministry of Transport to examine the problem of overloaded vehicles transporting agro-product exports and to control fees charged by shipping companies. In the January-April period, the export of agro-forestry-aquatic products was estimated at 8.5 billion USD, a decrease of 5.1 percent year on year. Vietnam property market sees potential growth Vietnam’s real estate market, despite its long-lasting struggle, is finally gaining momentum with stable prices on the rise, Savills Vietnam Managing Director Neil MacGregor declared on May 21. He claimed that in the next five years there will be no repeat of the property bubbles that occurred in 2008 and 2010. Vietnam’s real estate market is expected to boom when the amended Housing Law, which allows foreign property ownership for the first time, takes effect on July 1. Under the Law, foreigners will be entitled to own up to 30 percent of the apartments in a building, or 250 villas/townhouses in a project. Housing ownership certificates will be valid for 50 years. Foreign investors, especially from Singapore – the leading FDI investor in Ho Chi Minh City – are raring to grab a share of the pie, he revealed. The growing global economy, expanding middle class and the diversity of supply and demand will also contribute to the domestic success during the next five-year period, Savills believes. They noted that Ho Chi Minh City, with its urban railway project; central Da Nang city, an emerging tourism hub; and northern Hai Phong province, will consolidate their positions as key real estate markets. A recent report from Savills Vietnam showed that Vietnam has enjoyed rapid economic growth over the last 20 years. The Southeast Asian nation has recorded a total registered overseas capital of 70 billion USD and ranked among the world’s top ten countries for the volume of remittances. In 2014 alone, the overall remittances sent to Vietnam were worth 12.5 billion USD, up to 20 percent of which belonged to the property sector. Local government monetary policies, including an interest rate reduction to 6.5 percent per year, have stimulated the economy, particularly among retailers, with new engagement from international giants like McDonalds and Starbucks. Meanwhile, the office leasing market has been on the rise with increasing domestic demand from finance, insurance and real estate companies. The residential market has seen higher demand for condominiums as the younger generation is following an independent lifestyle of living apart from their parents. Quang Ninh calls for capital in 71 projects for 2015-2020 The northern province of Quang Ninh has released a list of 71 projects in need of investment capital for 2015-2020, a majority of them are in the public-private partnership model with capital sourced from private investors. Nearly one third of the listed projects are in culture, tourism and trade, notably Phuong island, Cai Chien and Tra Co tourist sites, each worth 200 –360 million USD. Other 13 projects are in transport, including a 1.2 billion USD Cai Bau port, and Ha Long – Mong Cai and Ha Long – Noi Bai highways valued at 700 million USD and 577 million USD, respectively. Ten technical infrastructures projects are in industrial and urban areas, namely a non-tariff area and Van Don clean industry complex that need close to 1.5 billion USD. The remaining are in health care, education - training, environment, water supply and agriculture. Located in the pivotal economic zone in the north of Vietnam, Quang Ninh is seen as an important part of the economic development triangle in the north (Hanoi – Hai Phong – Quang Ninh). It sits on the largest coal reserve in Southeast Asia and boasts an abundance of world heritage and natural wonders. The locality is expected to achieve a two-digit growth this year. Mekong Delta welcomes more international tourists The Mekong Delta received 7.3 million visitors in the first quarter of this year, an increase of 20.9 percent compared with the same period last year. They included 540,175 international tourists, an increase of 14.4 percent. An Giang attracted the highest number (2.6 million), and Kien Giang accounted for the highest tourism revenue (624 billion VND or 29.7 million USD). Dong Thap, Bac Lieu, Soc Trang, and Hau Giang provinces saw the most impressive growth in the number of visitors. The delta provinces focus on developing eco-tourism and island tourism, its strengths. Da Nang hosts international accounting conference Experience, initiatives and study results in accounting and business administration were shared by experts from the UK, Japan, Indonesia, Australia, and Vietnam during a conference in central Da Nang city on May 22 . The event was organised by the Economic University under Da Nang University in collaboration with Japan’s National Yokohama University and the UK’s Aston University. Participants scrutinised challenges facing the country in the fields and put forward measures and ideas for Vietnam’s accounting sector to meet its integration goals. They heard 21 reports, focusing on topics related to management of accounting-related issues, sustainable accounting, business finance, quality of financial statement, and auditing. Vietnam’s accounting and audit are underdeveloped in comparison with regional partners. Inefficient rice exporters to go out of business The number of rice exporters in the country may fall from the current 144 to 107 in the coming time as those performing poorly last year could be eliminated from the market, sources said. The director of a rice export company in Dong Thap Province, also a member of the Vietnam Food Association (VFA), said 37 exporters could be out of business as they were among the exporters that suspended rice shipments last year to avoid losses when rice prices became volatile on global markets. Speaking to the Daily, VFA chairman Huynh The Nang did not confirm the accuracy of the news but said the rice export management agency under the Ministry of Industry and Trade tended to suspend poorly-performing rice exporters. “Currently, Vietnam has 144 rice export companies and therefore removing some firms will not affect rice exports,” Nang said. Vietnam had 200 rice export companies before January 1, 2011 when the Government’s Decree 109/2010/ND-CP on rice trading and export came into force. Unhealthy competition led the Government to issue the decree setting higher standards for rice exporters in a bid to reduce the total number to around 100. The decree requires enterprises to have a rice trading certificate, a warehouse able to store at least 5,000 tons and a milling facility with a minimum hourly processing capacity of 10 tons, and always store a volume of rice equivalent to 10% of the amount exported in the six preceding months. Market difficulties have already reduced the number of rice exporters to 144, and the goal of the decree could be realized if weak firms are removed. Data of VFA showed Vietnam had obtained US$707 million from shipping abroad 1.7 million tons of rice by May 14. Dong Nai wants to take resettlement job in Long Thanh airport project Dong Nai Province has proposed the Government separate resettlement work from the Long Thanh international airport project and then hand this job to the province. The proposal aims to quicken resettlement of and compensation and help affected households resettle as soon as possible, heard a meeting between leaders of the southern province and its departments on site clearance and compensation for the multi-billion-dollar project in Long Thanh District on Tuesday. The province held the meeting with relevant agencies to discuss resettlement and compensation for the international airport project, which would cover 2,750 hectares, instead of the originally planned 5,000 hectares. At the meeting, leaders of departments requested the agency responsible for drawing up resettlement and compensation schemes to listen to local residents and prioritize job creations for the households whose land will be cleared to make room for the project, according to VietnamPlus. Tran Van Vinh, vice chairman of Dong Nai Province, told the Department of Natural Resources and Environment to work with relevant agencies to complete the schemes this month for submission to ministries for consideration next month. Vinh assigned the provincial Department of Labor, Invalids and Social Affairs to prepare supporting measures for the affected households and train them so that they could work for local enterprises in need of new recruits. According to Dong Nai Province, 4,566 households with 14,400 members will be affected by the Long Thanh airport project and more than 9,200 of them are of working age. Some 1,820 of the households depend on farming while 1,407 have incomes at industrial parks. A survey of the province showed that almost all the affected households support the development of the international airport, whose first phase will require some US$5.2 billion (some VND109.97 trillion). State funding is expected to amount to VND12.15 trillion (around US$559 million) in the first phase, ODA loans VND29.18 trillion, and other sources VND68.64 trillion. Deputies of the National Assembly will discuss the need to develop the airport at their ongoing sitting in Hanoi after the project got the green light from the Party Central Committee earlier this month. The airport is expected to have one runway and one terminal able to handle 25 million passengers per year in the first phase. The second runway and another terminal would be built in the second phase to handle 50 million passengers a year before its annual capacity is increased to 100 million passengers. The cost of the project has been adjusted down to around US$15.8 billion from the initial estimate of US$18.7 billion. Initially, the first phase was planned from 2015 to 2020 with two parallel runways and terminals able to receive 25 million passengers and 1.2 million tons of cargo per year as well as parking space for 34 aircraft. The second phase until 2030 would have three runways with each being 4,000 meters long, and terminals for 50 million passengers and 1.5 million tons of cargo a year. A fourth runway was planned in the third phase after 2030, and the airport would then have terminals for 100 million passengers and five million tons of cargo per year. When in place, Long Thanh would be able to handle 90% of international flights and 20% of domestic services in the south from 2020 to 2035. It will replace Tan Son Nhat as the biggest international airport in Vietnam and become a major aviation hub in Southeast Asia. Vietnam sees surge in rubber exports Exports of natural rubber have increased significantly according to the Ministry of Agriculture and Rural Development. In the first four months of 2015, the export volume for natural rubber hit 259,000 tonnes, up by 37.7 percent compared to the same period last year. However, export turnover only totalled 371 million USD, a 0.6 percent decline with an average price of 1,420 USD per tonne, which is 29.15 percent lower than last year. In April, Vietnam exported 58,000 tonnes of natural rubber, generating 84 million USD. Major markets include China, Malaysia and India, who account for 68.08 percent of Vietnam’s natural rubber market share. Recently, domestic rubber prices have started to show signs of recovery, but prices are still lower than in early April 2015. In the southern province of Binh Phuoc, the purchasing price for SVR 3L rubber is around 29,900 VND (1.4 USD) per kilogramme. It sells on the Singaporean trade market and it’s offered on the Singapore Commodity Exchange Sicom for 1,670 USD per tonne. Vietnam official insists on making Nha Trang more beautiful than Hawaii with urban planning The chairman of Khanh Hoa Province in south-central Vietnam did not pull any punches as he defended a controversial zoning decision for the provincial capital of Nha Trang, saying it is shortsighted to oppose a plan that will enable the city to rival the U.S. island of Hawaii. The Vietnamese province should steadfastly implement the plan so that Nha Trang, a destination favored by international tourists thanks to its beautiful beaches, can “become even more beautiful than Hawaii,” Nguyen Chien Thang said as he met local voters on Thursday. Scores of skyscrapers have been constructed on several streets in Nha Trang in recent years, forming what experts say is a towering ‘wall of high-rises’ that could hurt the city’s ecosystem. The controversial zoning, approved by Thang in October 2014, is intended for the eastern parts of Tran Phu and Pham Van Dong Streets, where several resort facilities will be built on certain beaches and the surface of Nha Trang Bay itself, as well as Chong and Do Islets, which are supposed to be kept intact. Tuoi Tre (Youth) newspaper earlier this week published opinions by some experts and local officials who warned that the city is gradually losing its tourist appeal due to such skyscraper growth. “These are just the opinions of a few people, not a majority,” Thang said during the meeting, referring to the Tuoi Tre report. The chairman asserted that the planning was done “as per majority consensus and the law,” adding Nha Trang "is a municipality, not an ecotourism area.” Thang said in the future Nha Trang will become a special municipality like Hong Kong and Singapore, and it thus needs to be developed in a different way from an ecotourism area. “Many people say Nha Trang is an ecotourism area, which is incorrect,” he said. “If you want ecotourism development, please go to Bai Dai or Van Phong Bay.” Bai Dai is a less-crowded beach located between Khanh Hoa’s Cam Ranh International Airport and Nha Trang, whereas Van Phong is some 30km north of the beach city. He said opposition to the construction of high-rises in Nha Trang is a “shortsighted argument” that will prevent Khanh Hoa from developing. “We still listen to these opinions but will not follow them,” he asserted. “Behind the zoning is a national committee and even the Prime Minister so it is inappropriate to listen to a few voices.” Thang quickly left the meeting after reiterating that “we will keep on developing so that Nha Trang can be more beautiful than Hawaii,” which displeased many voters. Architect Nguyen Van Loc, a former director of the Khanh Hoa construction department and now chairman of the province’s architecture association, said he is “very upset” over the chairman’s speech. Loc is a member of a committee, which consists of many former provincial leaders and architecture pundits, set up to provide a critical review of the plan. “And yet the province’s chairman just called us a myopic minority, which is very sad,” Loc said. Chairman Thang said the plan has received majority consensus but “he could not say so when the planning has never been open for public comment,” Loc added. Architect Nguyen Hoang, deputy chairman of the province’s architecture association, also said the chairman must provide proof for his claim that the planning is backed by the majority and the government. Hoang said the Nha Trang beach planning should be carefully reviewed by the Khanh Hoa administration as “any mistakes will be impossible to be corrected.” Huynh Ngoc Bong, the spokesperson of the Khanh Hoa administration, told Tuoi Tre the chairman must have referred to the “planning for Nha Trang approved by the government in 2012,” rather than the new zoning. In a meeting with Prime Minister Nguyen Tan Dung in April 2014, Thang also said Nha Trang will be “more developed than Hong Kong in the future,” thanks to its ecosystem potential. Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR