BUSINESS IN BRIEF 18/7 Retail leads in recruitment demand for senior employees Recruitment demand in fast-moving consumer goods (FMCG)/retail topped the list of sectors in need of new senior employees in the second quarter of this year, according to the latest report of Navigos Search. Last week, the leading provider of executive search services in Vietnam released the report on recruitment demand for senior staff in Vietnam last quarter based on its clients’ job orders in the period. The report showed FMCG/retail accounted for 13% of total demand for senior personnel in the second quarter with sales supervisors and managers mostly sought after. Navigos Search ascribed the demand surge to the fact that foreign retail firms are expanding their operations and more have entered the local market. The manufacturing sector ranked second with 12% of total demand. Navigos Search said demand for electronic engineers remained high owing to expanding operations of mobile phone production plants and their satellite enterprises though it fell from the first position in the first quarter to the third spot with 9% last quarter. Vietnam is expected to consume around 15 million smartphones this year. Textile and garment shared the third ranking in recruitment demand, reflecting the overall performance of Vietnam’s apparel industry. Navigos Search quoted sources as saying that the country is the world’s fourth largest textile exporter with US$12.18 billion in revenue. The report showed little change to the recruitment demand for senior and middle-ranking employees in information technology and finance-banking sectors. Improvements in the local real estate market led to higher recruitment demand for senior personnel in the second quarter. Though real estate made up only 3% of total demand, it rose from the first quarter thanks to more successful housing transactions. The most sought-after employees were sales and leasing managers. Navigos Search said many employers offered monthly salaries of VND100 million or higher for candidates in the period. The company found the highest monthly salary of VND174 million was paid to a financial director and two general directors in the manufacturing sector got VND147 million per month plus benefits each. Navigos Search projected FMCG/retail and apparel would lead in recruitment demand for senior employees in the third quarter of this year based on data this month. The company’s statistics showed recruitment needs in retail and textile sectors were in the lead in the first week of this month with each sector holding 21% of all recruitment orders of the period. VND18 trillion raised in treasury bill sale The Ministry of Finance has sold nearly VND18 trillion (US$825 million) worth of treasury bills with tenors ranging from three to six months to local banks. The ministry restarted issuing treasury bills on June 15 after putting the sale of such short-term bills on hold in September 2014. Last month, the State Treasury auctioned VND19 trillion worth of treasury bills, of which over VND13.1 trillion found buyers, according to the Vietnam Bond Market Association (VBMA). Last week, the State Treasury put up for sale VND7 trillion worth of three and six-month bills with nearly VND4.4 trillion raised. The winning coupons for the three-month tenor stayed unchanged at 4.1% while that for six months lost 10 basis points to 4.6%. At present, banks have strong demand for debt papers issued by the State Treasury. Therefore, the Finance Ministry has found it easier to raise funds for the central State budget. According to a Ministry of Finance report, government bond issues as of mid-June had met just one-third of this year’s target. Meanwhile, treasury bill sales by June 29 had fetched around VND115 trillion, helping partially finance the budget deficit and development investment projects. This amount met around 46% of the year’s target of VND250 trillion. The State Treasury organized an auction for VND3 trillion worth of treasury bills on July 13. G-bond sale has also improved as well. According to VBMA, G-bond auctions in June achieved 43.4% of the target, a strong rise compared to 18.4% in the previous month. The winning coupons also increased for tenors of five and 15 years. Last week, the State Treasury announced a G-bond issue scheme in the third quarter of 2015, offering VND60 trillion with terms from five to 20 years. G-bonds currently make up a large part in the local bond market. At the end of June, the ratio of G-bond value dropped slightly to 76.68% (over VND495 trillion) from 77.24% a month a earlier, followed by Government-backed bonds with 20.19% (VND130.7 trillion) and municipal bonds with 3.14% (VND20.2 trillion). High-end apartments by West Lake attractive to customers Customers registered to buy 212 apartments and eight penthouses at the D’. Le Roi Soleil-Quang An apartment project by the West Lake in Hanoi two days after it was unveiled early this month. Tan Hoang Minh Group, the investor of the project, said 150 of the apartments and two penthouses were booked on the launch day on July 4. Foreign customers registered to purchase the two penthouses worth around VND28 billion each. Thousands of potential buyers attended the launch day, according to the investor. The high-end D’. Le Roi Soleil-Quang An project attracted many foreign customers after the revised Housing Law, which relaxes foreign home ownership in Vietnam, came into force on July 1. D’. Le Roi Soleil-Quang An is developed at a prime site covering nearly 10,000 square meters by the West Lake and consists of two apartment buildings with 498 apartments and an eight-floor commercial-service building. The project features parking space of around 20,000 square meters, a commercial center of more than 20,000 square meters, an infinity pool, fitness and spa facilities and kindergarten. The project is expected for completion in 2017. Its apartments measure 80-330 square meters while the penthouses are 330 square meters. Many machines sold at MTA Vietnam 2015 Many machines found buyers at the 13th International Precision Engineering, Machine Tools and Metal Working Exhibition and Conference (MTA Vietnam 2015) in HCMC last week, according to organizers. Yamazaki Mazak Vietnam and Amada Vietnam were among the exhibitors which reported deals at the four-day exhibition at the Saigon Exhibition and Convention Center (SECC) in HCMC’s District 7. The new laser-cutting machine Optiplex Nuxus 3015 introduced by Yamazaki Mazak Vietnam for the first time in the country also found a buyer. Machine distributors Alliance Machine Tools Co. Ltd. in District 12 and Bao Son Technology Company in Binh Tan District sold equipment valued at US$73,000 and US$75,000 respectively. According to Yamazaki Mazak Vietnam’s marketing department, the sales results of the company at MTA Vietnam 2015 were positive as it was hard to sell products to visitors at an exhibition. This meant the improving production sector has resulted in higher demand for machines. The exhibition attracted some 10,000 visitors, according to the organizers. Foreign companies made up 70% of the exhibitors at MTA Vietnam 2015 and they came from Germany, Japan, the United States, Italy, South Korea, Taiwan and China. HCM City okays change to Vinhomes Central Park project Vingroup Joint Stock Company (Vingroup) has won the green light from the HCMC government to increase the construction ratio at and add more stories to the buildings at Vinhomes Central Park project, Binh Thanh District. The company can build the Landmark building in the heart of Vinhomes Central Park at a maximum height of 461.2 meters. Vinhomes Central Park covers 43 hectares in Binh Thanh District’s Ward 22 by the Saigon River. Earlier, the city government originally approved 50 stories for the Landmark but the height was adjusted up to 81 stories late last year or 350 meters. With the latest approval of the city government, the Landmark would be 461.2 meters high. The Landmark building is expected to comprise apartments, restaurants, open-air sky bar, an observatory and a shopping mall in addition to an upscale hotel. Farmers gain lower profit in H1 Farmers saw their profit shrinking in the first half of this year due to falling export prices of Vietnam’s key farm products, but a number of enterprises still posted good earnings. According to the Ministry of Agriculture and Rural Development, exports of rice fell by 10.5% in the first six months of this year to US$1.32 billion, coffee by 35.1% to US$1.42 billion, rubber by 5.1% to US$614 million and seafood by down 16% to US$2.97 billion. Lower export revenues of the key export earner led to declines in domestic prices, thereby eating into farmers’ profit. Data of the Vietnam Pangasius Association showed unprocessed tra fish was sold at VND23,750 per kilogram in the first week of January, VND1,350 per kilogram higher than the same period of last year. However, the price went down to VND20,000 per kilogram in the second week of May and is now VND875 per kilogram lower than the same period last year. With such decreases, tra fish growers earned profit of around VND1,000 per kilogram in early January but now incur losses of some VND2,000 per kilogram. Regarding rice, data of the Vietnam Food Association (VFA) indicated that its members had exported 2.2 million tons of rice with a combined FOB value of US$927.193 million in the year to June 18. The average export price was US$420.71 per ton, down US$12.31 year-on-year. The lower export price of rice affected the domestic price and profit of farmers. But some reports said enterprises in the agricultural sector operated profitably in the first months of this year. Vinh Hoan Corporation, a leading tra fish processor and exporter in the Mekong Delta, posted an export turnover of US$58.3 million in quarter one alone, up 33% year-on-year. International Development and Investment Corporation targets revenue of VND3 trillion and after-tax profit of VND171 billion this year, soaring 40% and 90% year-on-year respectively. A January-June report of PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC) revealed its factory supplied 420,000 tons of fertilizer for the market and earned VND3.15 trillion in revenue and VND584 billion in pre-tax profit. PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) generated revenue of around VND4.95 trillion and pre-tax profit of VND810 billion in the period, equivalent to 53% and 63% of the year’s targets respectively. Bosch joins hands with International University Bosch Vietnam Co. Ltd. and International University under the Vietnam National University of HCMC have clinched a memorandum of understanding (MOU) to cooperate in training, research and recruitment. The firm will support the university to organize trips for students to its production facilities, provide them with internship opportunities and fund their research projects. The objectives are to help students practice what they have learned and participate in certain research projects at Bosch. Ho Thanh Phong, president of International University, said the university wants to build strong links with businesses and train students to meet requirements of employers and support the country’s development. The university is looking to partner with enterprises to enable its lecturers and students to sharpen their knowledge and skills and find more research topics.   Vo Quang Hue, managing director of Bosch Vietnam, said the MOU with International University is the company’s further contribution to training and educational development in Vietnam. The company also needs qualified staff to support its business growth.    As part of the cooperation agreement, Bosch will give scholarships to students with good academic results and excellent research proposals. Bosch has been present in Vietnam since 1994 and set up a wholly-owned subsidiary, Robert Bosch Vietnam Co. Ltd. in HCMC in April 2008. From July last year, all business entities have been merged into Bosch Vietnam Co. Ltd. with its head office registered in Dong Nai Province. The company now has offices in HCMC and Hanoi, a showroom in Danang City, a manufacturing plant producing CVT pushbelts in Dong Nai Province, and a software engineering research & development center in HCMC with more than 600 engineers. In July 2014, Bosch inaugurated a new automotive R&D center (mobility solutions) in HCMC. Ministry wants zoning plans improved The Ministry of Planning and Investment has drafted a zoning law with an aim to drastically solve problems with overlapping and infeasible zoning activities in provinces and cities. Deputy Minister of Planning and Investment Dang Huy Dong told a meeting held in Hanoi last week to introduce the draft law that zoning plans in many localities remained inconsistent and unworkable due to the old mindset of the local authorities. Therefore, many zoning plans have been adjusted after they were completed. Vu Quang Cac, head of the drafting team for the draft law and head of the planning department under the ministry, said 19,285 zoning plans had been drawn up nationwide at a total cost of more than VND8 trillion as a result of 70 legal documents and ordinances governing planning adjustments until 2020. Cac said many of the zoning plans set a slew of conditions for different business areas and sectors, including those for rice export enterprises, the number of beer and spirit sale points in a locality, and tra and basa fish farming. “Many zoning plans are not in line with the development of a market economy and Vietnam’s deeper international integration and reflect the old mindset of a centrally planned economy,” Cac said. He said the Ministry of Justice is evaluating the draft law before forwarding it to the Government for consideration this month. He said there would be a zoning law governing the master zoning plans done by agencies of central and local levels and a law on urban and rural zoning providing detailed planning for commune-level authorities. The draft law is expected to address problems with conflicts of interest and overlapping responsibilities of inter-sectoral agencies and localities. Dong said Toan Thinh Phat Company’s controversial urban rehabilitation and development project by the Dong Nai River would not have been approved if the zoning law had been in place as the Dong Nai River runs through many localities. Businesses enjoy cost reduction to sell goods at trading fair in Russia Businesses will enjoy 100 percent cut of rent and 50 percent reduction of round-trip airfare to Moscow to attend a goods sale fair in Russia from November12-December 12, announced the fair organization board at a press conference yesterday. The fair will be hosted by the Vietnamese Embassy to Russia, the Ministry of Industry and Trade and the Bank for Investment and Development of Vietnam. It is expected that about 12,000 Russian firms will also attend the event. Deputy Head of the Trade Promotion Department under the Ministry of Industry and Trade Ta Hoang Linh said that the fair would create opportunities for Vietnamese businesses to introduce their products, find customers and distribution partners to penetrate the Russian market and the Eurasian Economic Union that signed a free trade agreement with Vietnam in May. Samsung devises measures boosting Vietnam’s electronics industry Samsung will research concrete measures to help develop Vietnam’s electronics industry, General Director of Samsung Electronics Vietnam Han Myoung-sup said at a seminar in Hanoi on July 15. He also underlined contributions by Samsung Electronics Vietnam to attract foreign investments in component manufacturing. It also helped the Southeast Asian country improve its export indexes and create a number of jobs. To develop supporting industries, the country needs to provide capital and policy assistance and ensure the sale of the sector’s products, the executive said while asking for high resolve and long-term vision from businesses. Deputy Minister of Industry and Trade Tran Tuan Anh admitted that though a number of favourable mechanisms and policies have been designed, they have not been implemented strongly enough to support Vietnamese firms in making qualified supporting industry products. His ministry has submitted a decree on supporting industry development to the Government for approval. The decree includes feasible and comprehensive mechanisms and policies in accordance with Vietnam’s current regional and international economic integration, he noted. At the seminar, Samsung Vietnam announced a list of components it wants to source from Vietnamese companies and met face-to-face with local firms to to discuss the possibility of becoming Samsung component providers. The function drew representatives from more than 200 Vietnamese enterprises and from Government agencies such as the Ministry of Finance and the Ministry of Planning and Investment. Samsung first invested in Vietnam in 1995 but made itself known in recent years with its construction of two hi-tech complexes to produce mobile devices and components in Bac Ninh and Thai Nguyen provinces with a combined investment of 7.5 billion USD. The two facilities together exported over 26.25 billion USD worth of products last year and created jobs for over 100,000 labourers. Last May, Samsung began construction on the Samsung Consumer Electronics Ho Chi Minh City Complex, covering 70 hectares at the Ho Chi Minh City Hi-tech Park with a total investment of 1.4 billion USD. Vietnam works to attract RoK investment Vietnam is committed to improving its market economy institutions, developing human resources and building infrastructure to continue attracting investment from the Republic of Korea (RoK), said Nguyen The Phuong, Deputy Minister of Industry and Trade. The RoK has become Vietnam’s largest foreign investor and the two signed a free trade agreement (FTA) in May 2015, he added. The RoK currently has 4,459 projects in Vietnam with a total registered capital of 39.1 billion USD. Trade between the two countries reached 30 billion USD last year and both sides target to increase the value to 70 billion USD in 2020. According to Do Nhat Hoang, Head of the Vietnam Foreign Investment Agency, the implementation of the Investment Law and Enterprise Law from July 1, 2015 will create more favourable conditions for foreign investors, including those from the RoK. Meanwhile, RoK’s Ambassador to Vietnam Jun Dae Joo hailed the strong economic ties between the two countries, besides cooperation in social and cultural development. This year to May, export-import turnover between Vietnam and the RoK surpassed 14.66 billion USD. Currently, Vietnamese businesses are running 24 projects in the East Asian country. Social responsibility essential to fisheries sector Social responsibility and product quality are vital to increase the competitiveness of Vietnam’s fisheries sector, said an official at a workshop in Hanoi on July 15. Nguyen Viet Manh, Head of the Vietnam Directorate General of Fisheries’ Scientific, Technological and International Cooperation Department, said social responsibility will not only benefit the sector but also ensure sustainable development and help protect the environment. Today, foreign consumers require numerous certified standards of social responsibility on Vietnamese aquatic products such as SA8000, BSCI, COSTCO, SMETA, METRO and WALMART. Yet the standards are pursued by only about 30 percent of processing factories and 10 percent of farming households. In the context of globalization and international integration, businesses that do not exercise social responsibility cannot approach foreign markets, Manh said. The workshop was organised by the International Collaborating Centre for Aquaculture and Fisheries Sustainability (ICAFIS), the Vietnam Fisheries Association and Oxfam Vietnam. With the support of Oxfam Vietnam, ICAFIS carried out research on practising social responsibility of fishing in Hai Phong city, Nghe An, Kien Giang, Ben Tre, Khanh Hoa and Binh Thuan provinces. Results show that social responsibility has yet to be incorporated into the fishing process, leading to a loss in fish catches. As such, ICAFIS is working on a draft code of principles on practising social responsibility in Vietnam, according to ICAFIS Director Le Thanh Luu. Forum to boost Vietnam-Cambodia business links Vietnam’s embassy in Cambodia organised a business forum on July 15 to encourage Vietnamese and Cambodian enterprises to support each other for cooperation and development. Addressing the meeting, Vietnam’s Ambassador to Cambodia Thach Du pointed to the traditional friendship, geographical proximity and support from the two governments as major factors contributing to ever-growing cooperation in economics, trade and investment between the two countries over the past years. According to the ambassador, Vietnamese companies had poured 3.2 billion USD into 171 projects in Cambodia as of the end of April 2015, making Vietnam one of the five biggest investors in the neighbouring country. Vietnam is Cambodia’s third largest trade partner and the total trade volume reached 3.3 billion USD in 2014 and is expected to rise to 5 billion USD in upcoming years. Despite impressive achievements, there is still huge potential for economic cooperation between the two countries – leading to the forum’s organisation, Du said. Experts presented a number of reports at the forum including updated information on priority business fields in each country as well as experience on establishing an appealing investment environment.- Banking system has optimistic outlook for 2015 Vietnamese credit institutions and foreign bank branches in Vietnam continue to see a bright business outlook for 2015, according to a survey of the State Bank of Vietnam’s Monetary Forecasting and Statistics Department. Up to 99 percent of the institutions predict an average credit growth rate of 6.8 percent in the third quarter of 2015 and 18.2 percent for the whole year, faster than the 14.2 percent pace in 2014 and the annual target of 13-15 percent set by the central bank. Almost all credit institutions also anticipate that deposit and lending interest rates will remain stable or decline slightly through September. About 51-61 percent forecast a decrease in interest rates by the end of 2015 compared to a year earlier. Lending rates are hoped to decrease 0.44 percent annually while deposit rates will fall by 0.2 percent yearly, the survey showed. In its report, the statistics department said the banking system expects this year’s average deposit growth rate to be 15.8 percent, higher than the 14.9 percent anticipated in the previous survey. Up to 89-93 percent of the respondents project that term deposits from six months to one year will pick up this year. Deposits of over a year are also hoped to climb by 92 percent of those surveyed, the department said. HCM City, Japanese locality discuss cooperation prospects Chairman of the Ho Chi Minh City People’s Committee Le Hoang Quan met with the visiting governor of Japan’s Gifu prefecture, Hajime Furuta, on July 15 to discuss the future of the two localities’ cooperation. Gifu has strong advantages in hi-tech agriculture production and supporting industries, presenting huge cooperation potential between the prefecture and Ho Chi Minh City, Chairman Le Hoang Quan said in his remarks. Quan briefed his guest on Japan’s investment in Ho Chi Minh City and noted that the city has established a Japan office at the municipal Department of Planning and Investment to provide support to Japanese investors and promote trade between the two sides. He invited Gifu prefecture to attend the city’s International Travel Expo 2015 from September 10-12 as an opportunity for both sides to boost cultural and tourism cooperation. For his part, Governor Furuta said Gifu hopes to expand its partnership with Ho Chi Minh City particularly in supporting industries, hi-tech agriculture and personnel training. Gifu is renowned for its high-quality Hida beef, expected to be available in Vietnam in 2016, he added. In addition, both sides agreed to speed up the signing of cooperation agreements in various fields. Coal consumption faces difficulties The coal consumption in the first half of this year faced difficulties and the inventory remains high at about 8 million tonnes. The announcement was made during a conference held by the Vietnam National Coal – Mineral Industries (Vinacomin) in the northern province of Quang Ninh on July 15 to review and implement the group’s business plan for 2015. In the first six months of this year, the group exploited a total of 21.1 million tonnes of crude coal. However, the consumption of coal in the period reached only 18 million tonnes, accounting for only 97.2 percent of the same period last year. Of the 18 million, the group sold 704,000 tonnes for export, 18 percent of the same period in 2014. In the third quarter of this year, Vinacomin targets to sell at least 7.8 million tonnes of coal, including 7.55 million tonnes in the domestic market and 250,000 tonnes for export.- Dak Lak develops local irrigation system for coffee production The Central Highlands province of Dak Lak aims to develop comprehensive irrigation systems to ensure adequate water supply for local coffee production through 2020, according to the provincial People’s Committee. It plans to mobilise more than 15.3 trillion VND (715.4 million USD), the majority of which will be sourced from official development assistance (ODA). The amount will cover the construction of 82 new reservoirs and pumping stations and upgrades to 271 existing ones to help reduce production costs and enhance product quality and competitiveness in domestic and international markets. The facilities will also help increase the coverage of sustainable coffee production in a number of districts and cities by more than 74,000 hectares. Currently, the province has nearly 204,500 hectares of coffee plants producing at least 460,000 tonnes of coffee per year. Roughly 90 percent of the output is shipped abroad, accounting for 89 percent of the total local export value. The sector contributes more than 40 percent to the local GDP and creates jobs for hundreds of labourers. Leather, footwear products showcased in Ho Chi Minh City A wide range of domestic and international leather products and footwear are on display at more than 600 booths in Ho Chi Minh City from July 15-17. The 2015 Shoes & Leather Vietnam is being organised for the 17th time by the Vietnam Leather, Footwear and Handbag Association (Lefaso Vietnam). It features more than 300 exhibitors from 25 nations and territories around the world, including Hong Kong (China), Italy, India, Turkey and Malaysia. The event is expected to present opportunities for businesses to access advanced technologies, new material sources and export markets, according to the organising board. Vietnam overhauls laws to stimulate support industry At a July 15 industrial conference sponsored by the Ministry of Industry and Trade (MoIT) and Samsung, the need for a new legislative framework for marketing of products was the topic of discussion. “Vietnam needs to establish a better – toolbox of measures – to build on existing systems to boost the quality of products, clarify patent and copyright laws as well as improve market surveillance,” said MoIT Deputy Minister Tran Tuan Anh. Anh underscored that these measures will help the market for goods work better, strengthen and modernise the conditions for domestic businesses to innovate and place a wide range of industrial products on the market. Anh revealed that the MoIT is currently drafting a decree containing these measures that he will soon submit it to the Prime Minister for approval. A representative of Samsung in turn said the measures will also serve to attract more large multinational companies to do business and invest in Vietnam as it makes the domestic market more appealing. At the seminar, Samsung unveiled a list of electronics components that the company is seeking suppliers and held direct talks with 200 businesses applying to become material suppliers. Businesses need to prep for ASEAN integration Vietnamese businesses should be well prepared emotionally and physically to tap opportunities from the ASEAN Trade in Goods Agreement (ATIGA), experts said at a dialogue on July 16. Chairman of the Vietnam Association of Small and Medium Enterprises, Cao Sy Kiem, said the 10 ASEAN countries created a production area with a market of more than 600 million consumers. ASEAN was the world's most dynamic development region and one of the top four business partners of Vietnam, he said. Together with the integration process, tax reduction would create conditions for Vietnam to export commodities to ASEAN countries, he added. Kiem said ATIGA had brought many opportunities for domestic businesses to import material resources at cheaper prices and better quality machines. Vietnamese farm produce, such as rice, rubber and coffee, would also have a better chance of being exported to countries in the region. Deputy Minister of Industry and Trade Tran Quoc Khanh, who doubles as head of the Government negotiation delegation on economy and trade, said ASEAN countries were second in supplying goods to Vietnam, after China, and the third export market for Vietnam, after the US and the European Union. However, Deputy Director of the Finance Ministry's Department of International Cooperation, Ha Duy Tung, said Vietnamese business capacity remained low. The private sector had been developed, but on a small scale. It also had many shortcomings in terms of both financial capacity and technology, he said. Domestic production sectors were facing quality and price competition from imported products, he said, adding that issues relating to management and administration of businesses remained a big challenge when the road map for ATIGA tax cuts was approaching. Under the map, Vietnam cut 6,859 tax lines to zero per cent by the end of 2014, accounting for 72 per cent of total import and export tariffs. From January 1, Vietnam continued adjusting an additional 1,720 tax lines to zero per cent (equivalent to 18 per cent of total tax lines). The remaining of 687 tax lines will be cut to zero per cent by 2018, including products such as automobiles and motorbikes. Deputy Director of the Central Institute of Economic Research and Management Vo Tri Thanh said integration was both an opportunity and challenge and had many risks. The commitment to Free Trade Agreements needed to match reforms and economic restructuring requirements as well as changes to the economic growth model of Vietnam, he said. Trade Shows kick-off in grand style in HCM City Three leather and footwear trade shows got off to a strong start on July 15, with a grand opening that featured 300 entities from 25 nations kicking off the three-day events at the Saigon Exhibition & Convention Centre in Ho Chi Minh City. Many attendees were lined up at the doors waiting to get inside and view the vast variety of wares in more than 600 pavilions touting just about everything imaginable in the footwear and leather industry from the mundane to the exotic. A representative of the organizing board said the three events aim to facilitate those in attendance brush up on the latest of technologies, make business contacts, locate cooperation partners, and find out what innovative new products have recently hit the market. For the first time, this year’s events, running through July 17, have attracted businesses from as far away as Hong Kong, India, Italy, Malaysia and Turkey. The events – organized by the Vietnam Leather, Footwear and Handbag Association (LEFASO) – include the 17th International Shoes & Leather Exhibition 2015, International Footwear & Leather Products Exhibition and Vietnam International Exhibition on Garment Manufacturing Equipment & Fabric. Plastic exports to Europe slump amid six-month euro slowdown Plastic exports to the European market have felt the effects of the continuous decline of the euro over the past six months. "Our profit from the European market in the first half of this year fell by 10 per cent," said director of a plastic company in Ha Noi. He said that his company's European partners asked them to reduce their price but he couldn't due to the high cost of raw materials. Their partners then reduced orders from 5,000 tonnes of plastics to 3,000 tonnes, he added. A representative of Nam Thai Son Import - Export Joint Stock Company, said that the downtrend of the euro affected his company because the company signed contracts with partners when one euro exchanged for US$1.3. At present, the exchange is around $1.1, causing big losses for importers who are now rescheduling orders or changing to other commodities, the representative added. The online newspaper Vnexpress quotes Tran Viet Anh, deputy chairman of the HCM City Rubber – Plastic Manufacturers Association, saying that, beside the loss from declining orders, enterprises now have to face competitiveness from more local suppliers in Europe. European plastic producers might be able to provide products at a competitive price since the euro is low. To overcome the new challenges, the chairman recommended Vietnamese enterprises, apart from expanding to other markets or their market share, seek cheaper materials and make changes in product structuring to lower the price for the European market, which is vital to Viet Nam's plastic industry. Estimates for export turnover in the plastic industry are over US$1 billion for the first half of the year. According to the association, the European market accounted for 60 - 70 per cent. The industry saw a year-on-year increase of 10.3 per cent as turnover hit $4.2 billion for the first half of the year. The industry earned $9 billion last year. In the larger picture, growth also depends on how Viet Nam competes with China, Japan and ASEAN countries. Exports to the European market fell across the East and South East Asia region. S Korean firms to expand in Viet Nam South Korean companies will now invest in more areas in Viet Nam, ASEAN-Korea Centre General Secretary Kim Young-sun has told an investment forum in Ha Noi. The South Korean firms are eyeing sectors with high added value, including electronics and information technology, and officials from 20 large South Korean firms began a five-day trip to Viet Nam on Monday to study opportunities in these fields. With some free trade agreements set to be signed, Viet Nam will become an important link in an economic chain that will connect 55 countries by 2020. Fifteen of them will be members of the G-20 group, which includes South Korea. Do Nhat Hoang, director of the Ministry of Planning and Investment's Foreign Investment Agency, on Tuesday said the domestic electronics industry was expected to see breakthroughs in attracting foreign direct investment from the G-20 states, which have highly developed electronics sectors. This will boost technology transfers and the formation of industrial clusters of foreign and local electronics firms, Hoang said. "Viet Nam is striving to become one of the major producers of electronics and high-technology products in the region and the world by 2030 by maintaining a production growth rate of more than 10 per cent per year," he added. The South Korean ambassador to Viet Nam, Jun Dae Joo, said economic exchanges between the two countries had seen "outstanding progress", while General Secretary Kim said the two sides had made "amazing achievements in various areas". Cooperation between South Korea and Viet Nam has been focused on garments and textiles, footwear and light industries. Bilateral trade has crossed the US$30-billion mark and is expected to touch $70 billion by 2020. South Korean investors find Viet Nam attractive because its gross domestic product has grown five to six per cent annually in recent years, and it has stable political and social conditions and an improving business environment, he said. The revision of laws regulating investment and enterprises and the Government's allowance of larger foreign stakes in local public companies are developments especially welcomed by investors, he noted. The Deputy Minister of Planning and Investment, Nguyen The Phuong, said South Korea held the leading position among countries investing in Viet Nam, with more than 100 investors bringing in total registered capital of nearly $39.2 billion. Viet Nam ranks fourth among South Korea's investment destinations, after the United States, mainland China and Hong Kong. Viet Nam was committed to putting in place mechanisms for developing a market economy, Phuong said, adding that it would also develop its human resources and upgrade infrastructure to facilitate foreign investment. Hoang said Viet Nam would like major South Korean companies to take part in the restructuring of the local banking system and State-run enterprises and to get involved in infrastructure projects related to airports, expressways and seaports. Small and medium-sized enterprises from South Korea are also welcome to invest in the hi-tech, manufacturing, processing and energy sectors, he said. To facilitate this, Hoang suggested the two countries should efficiently exploit their bilateral free trade agreement and the two governments should establish regular investment contacts to support business operations. Shrimp exports to UK rise sharply Vietnamese shrimp exports to the United Kingdom have registered a strong growth even as shrimp exports to the European Union have been registering a declining trend since early this year. Shrimp import volumes in the United Kingdom have declined, but Vietnamese exporters have done well in that market, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP). Statistics from Viet Nam's General Department of Customs show that shrimp exports to the United Kingdom reached US$ 9.4 million in May, double the figure for the previous month. In the first five months of this year, shrimp exports to the United Kingdom reached $36.2 million, up 50.9 per cent year-on-year. VASEP General Secretary Nguyen Hoai Nam said shrimp exports to Britain had increased due to a larger supply of shrimp and a lower price for the seafood on the world market. Meanwhile, Vietnamese shrimp exports to the two key markets of Germany and the Netherlands fell 13 per cent and 9 per cent, respectively, in the first five months this year. Britons' seafood consumption is on the rise, thanks to health concerns. Consequently, warm-water shrimp and other new types of seafood are on offer in stores, together with traditional seafood such as cod, salmon, tuna and cold-water shrimp. The association expects shrimp exports to the UK and other European markets to increase. However, the rate of increase is low due to the debt crisis in Greece. In the first half of this year, Viet Nam saw the value of its seafood exports drop to $3 billion, a 16 per cent fall compared to the same period last year. The value of shrimp exports, which account for nearly half the value of seafood exports, dropped by 28 per cent to $1.3 billion, Vietnamplus reported. During the first six months of this year, demand for Vietnamese shrimp fell in the US and European markets, which is unusual when compared to the situation the previous year, Nam said. The importers may be waiting for a fall in prices due to the large supply of shrimp in the world market, he said. Vietnamese exports of shrimp to the US market have fallen since May, when the value of shrimp exports to the US plunged 46 per cent to $48 million. Nam expects the value of Vietnamese shrimp exports this year to reach $3.9 billion. HCM City shoe, leather exhibition opens The 17th International Shoes and Leather Exhibition opened yesterday in HCM City, offering the local leather industry a chance to compare notes and explore business opportunities. It is on simultaneously with two other exhibitions – the International Footwear and Leather Products Exhibition and Viet Nam International Exhibition on Garment Manufacturing Equipment and Fabric – at the Saigon Exhibition and Convention Centre in District 7. They have attracted more than 300 companies from 25 countries and territories including Argentina, Bangladesh, Belarus, Brazil, China, Germany, India, Japan, Korea, Malaysia, Russia, Singapore, and Turkey besides host Viet Nam. Among of them is the US's Dow Elastomers, the world's leading producer of polyolefin elastomers. The company is showcasing Infuse Olefin Block Copolymers, a specialty material used in the midsoles of athletic shoes. For decades the market for athletic shoe midsoles was dominated by ethylene vinyl acetate, but the new material can drop into existing foam processes with minor adjustments, eliminating the need to retool or alter the production process. On display are a wide range of chemicals, machinery, technologies, and accessories used in the footwear and garment industries and in other products. Nguyen Duc Thuan, chairman of the Viet Nam Leather and Footwear Association (Lefaso), said the event is aimed at enhancing export promotion soliciting investment and promoting the image of the country's leather and footwear industry. It also seeks to enable local companies to acquire modern technologies to raise its game, he said. Last year leather and footwear exports fetched the country US$12 billion, and the figure is expected to be $14-$15 billion this year, he said. The exhibitions will go on until July 17 and are expected to receive more than 10,000 visitors. Nam A Bank pre-tax profit almost doubles Nam A Bank's pre-tax H1 profit surged sharply by 96 per cent year-on-year to touch VND188 billion (US$8.66 million), the bank's General Director Luong Thi Cam Tu said yesterday. As a result, the bank, whose total assets reached VND33.473 trillion ($1.54 billion) as of June 30, met half of its annual target set for this year, Tu said at the bank's shareholders meeting yesterday. The bank's capital mobilisation in H1 also surged 45 per cent year-on-year, while outstanding loans were up 36 per cent. Tu said the bank's non-performing loans (NPLs) accounted for roughly 1.31 per cent of its total outstanding loans. Nam A Bank aims to increase this year's pre-tax profit to reach VND360 billion ($16.58 million), while capital mobilisation and outstanding loans will be VND23.5 trillion ($1.08 billion) and VND21 trillion ($967.74 million), respectively. The bank will also continue to keep its NPL rate under three per cent, as required by the State Bank of Viet Nam. The bank also aims to increase its total assets to reach VND40 trillion ($184.33 million) by the end of this year, by selling 100 million shares in its initial public offering. At the meeting yesterday, Nam A Bank also dismissed Nguyen Quoc Toan as the bank's chairman and elected Phan Dinh Tan, who was born in 1954 and has been vice-chairman of the bank's board of directors since March 2014, as its new chairman. Vingroup to invest in green agriculture in Ha Nam $30.8 million project will develop organic fruit and vegetables on 69 hectares in northern province. On July 14 the Ha Nam Provincial People’s Committee worked with Vingroup on the implementation of the Vineco project, growing organic fruit and vegetables of export quality. The project will be deployed on an area of 69 ha in Nhan Khang commune and have total investment of VND662 billion ($30.8 million). The goal of the project is to develop an area of raw materials using high technology in processing. It will also have a research center to restore, improve and create new crops. Principal activities will include using advanced cultivation methods, research, developing new technologies for production, training, providing engineering services, quality control and technological innovation. The project will use greenhouse technology from Japan and Israel as well as automated irrigation technology from Israel. A representative from Vingroup said it expects Ha Nam will hand over the area shortly so the project can grow a winter crop. The Provincial People’s Committee must also have policies and measures to accumulate land for large-scale production. The Group has recommended the province upgrade infrastructure around the project area, including roads and irrigation and electricity systems. Speaking at the meeting, Chairman of the Provincial People’s Committee Mai Tien Dung agreed with Vingroup’s proposal. “This project is consistent with the province’s policy of agricultural development towards industrialization,” he said. “In addition to creating favorable conditions in policies and legal procedures, the province will invest in the infrastructure nearby the project.” He also asked Vingroup to quickly complete procedures and financial and scheduling commitments for the project. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR