BUSINESS IN BRIEF28/10 New CEO for Doosan Vina Doosan Heavy Industries Vietnam, located at the Dung Quat Economic Zone in central Quang Ngai province, has appointed Mr. Jung Yeon as the new CEO of Doosan Vina. Mr. Jung joined Doosan in 1987 after graduating from Pusan University in South Korea with a degree in Machine Design. He is a lifelong Doosan employee and has progressed through the company over the last 28 years. During this time he has acquired a great deal of experience in manufacturing, change management, and procurement, and is fluent in both Korean and English. He feels his education and 28 years in manufacturing, change management and purchasing have prepared him for this appointment and his experience will serve him well as he takes the lead at Doosan Vina. “I’m looking forward to continue working with our 2,500 Vietnamese employees to see that our momentum not only continues, but accelerates so that we can play an even larger role in Vietnam’s forward march towards becoming a developed country,” he said. Doosan Vina is a high-tech industrial complex supplying the mega infrastructure products that make modern life a reality. Products include boilers for thermal power plants, heat recovery steam generators that increase the efficiency of a typical power plant by over 30 per cent, desalination plants the size of a football pitch that turn sea water into fresh water, material handling systems like cranes, which are the heart of logistics at ports around the world, and chemical processing equipment that turns the earth’s natural resources into the useful products we use every day. In 2014 the company recorded exports of $200 million and in 2015 expects this to reach $300 million. ASEAN mobility for six tourism jobs After eight years of negotiations, ASEAN countries have reached agreement that six jobs in the tourism sector will have free movement between countries: receptionist, chambermaid, wait staff, chef, tour guide manager, and travel agent. These six jobs are the most common out of the 40 jobs in the tourism sector, according to Mr. Ha Van Sieu, Deputy Director General of the Vietnam National Administration of Tourism (VNAT). ASEAN countries have been working towards completing the ASEAN Mutual Recognition Arrangement for Tourism Professionals (MRA-TP), which will be applied from the beginning of 2016. Countries reached agreement on vocational standards and tourism training curricula for the six jobs, which must be followed by all tourism training institutions. Vietnam has selected and nominated trainers for the ASEAN training programs, to develop human resources in the tourism sector. It has actively participated in the creation of MRA-TP and is now making its national standards in the tourism sector compatible. Mr. Sieu stressed that due to the free movement throughout ASEAN for staff in these six jobs, Vietnam must introduce policies to attract and retain talent as the personnel market becomes more competitive. OCB signs guarantee for Topaz City On October 25 the Orient Commercial Joint Stock Bank signed an agreement with the Van Thai JSC to provide a guarantee for its Topaz City project in Ho Chi Minh City, with purchasers also given the opportunity to take out loans at preferential interest rates. The agreement was signed on the same day sales at Block A1 of the project were open to the public. The project developer is the Dat Xanh Mien Nam Corporation. Speaking at the signing, Mr. Truong Dinh Long, Deputy General Director of OCB, said: “OCB is highly appreciative of the relationship between the two parties and we commit to providing out best support to the Van Thai JSC and purchasers at Topaz City. Purchasers will be able to borrow 85 per cent of the contract value for a term of 20 years, with a 12-month extension. I am sure this cooperation will be fruitful.” The Topaz City apartment complex is located in a green area on 157,358 sq m in Ta Quang Buu Street in Ward 4 of District 8, and includes a business center and a pool, among other facilities. Eximbank recalls two representatives at Sacombank Ha Thanh Hung, permanent vice chairman of Eximbank, has decided to recall two people who represent the bank’s stake at another commercial joint stock bank in HCMC, Sacombank. Nguyen Van Ly and Ha Ton Trung Hanh are no longer representatives of the Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) at Sacombank, according to the decision, with effect from October 21. Eximbank acquired a 9.73% stake at Sacombank in 2012 and assigned Pham Huu Phu, Ly and Hanh to represent the bank to hold 8%, 0.73% and 1% respectively. In March 2014, Phu resigned from the post of Sacombank chairman and got back to Eximbank to serve as general director after Eximbank’s general meeting last year. Eximbank’s board then divided the stake at Sacombank into two for Hanh and Ly to hold on the bank’s behalf. Market observers said there might be two scenarios as a result of Eximbank’s latest move. First, Eximbank might sell its stake to other investors, which would require regulatory approval. Southern Bank has been merged into Sacombank, so Eximbank’s stake at Sacombank has been diluted to 6.4% in the merged bank and is worth over VND1.2 trillion on book value. Given such a big value, it would be hard for Eximbank to find buyers. The second scenario is that because certain amounts of Eximbank shares owned by some individuals in name have been returned to their real owners but these owners have authorized the State Bank of Vietnam to hold those shares indefinitely. This might be the reason behind Eximbank’s decision to recall the two representatives at Sacombank. Three members of Eximbank’s board of directors may have to go in a restructuring plan, which is one of the proposals made by inspectors of the central bank after an inspection into the operations of Eximbank. Asset firm buys $4.1b of bad loans The Viet Nam Asset Management Company (VAMC) has bought bad debts worth more than VND92 trillion (US$4.09 billion) from credit institutions this year. The company's chairman, Nguyen Quoc Hung, said the amount had exceeded its VND80 trillion ($3.56 billion) non-performing loan purchase value targeted for 2015. Since its establishment in 2013, the firm has acquired VND218.90 trillion ($9.73 billion) in bad loans, with a combined buying price of about VND191.32 trillion ($8.50 billion). The firm, also known as VAMC, has recovered and sold debts and mortgages worth nearly VND15.67 trillion ($696.44 million) since then. This month, the company has begun to issue a new class of bond against bad debts that it buys from credit institutions, one that can be traded between the central bank and lenders, as well as among the latter. These bonds have been created through a circular of the State Bank of Viet Nam, which took effect on October 15. Earlier, the company was issuing special bonds that could not be traded and could only be used as collateral to secure funding from the central bank. The bonds, both old and new, carry a zero per cent interest rate.  Japanese corporation to construct $135m IP in Vinh Phuc Japan's Sumitomo Corporation has been granted permission to build an industrial park worth US$135 million in the northern province of Vinh Phuc, following an investment registration certificate that was granted by the provincial committee on Thursday. The project is the third Thang Long Industrial Park built by Sumitomo, with the others located in Ha Noi and the northern province of Hung Yen. The latest Thang Long Industrial Park in Binh Xuyen District will cover an area of 213 hectares and consist of two phases. The first phase of the project has an area of 94.5 hectares with total investment of VND1.5 trillion ($67.3 million). When operational, it is set to attract nearly 80 Japanese businesses involved in automobile and motorcycle components, and high-tech and other products for support industries, creating 40,000 jobs for local residents. Speaking at the official ceremony, Vinh Phuc Party Committee Secretary Hoang Thi Thuy Lan said the project would create a new image of industrial development for Vinh Phuc Province. She also asked related agencies to create the best conditions for Sumitomo to implement the project. Swiss companies seek business opportunities in VN Representatives of 20 small and medium-sized Swiss enterprises will visit Ha Noi and HCM City from October 26 to 30, to explore tie-ups with Viet Nam's ICT and software industries. Representatives of 20 small and medium-sized Swiss enterprises will visit Viet Nam from October 26 to 30, to explore opportunities with Viet Nam's ICT and software industries. There will also be representatives from Germany, Ukraine and Estonia. During their stay in Viet Nam, the delegation will visit Vietnamese and ICT companies with foreign investment, educational institutions and hi-tech parks. The business mission has been organised by the Swiss Import Promotion Programme (SIPPO) and tcbe.ch - ICT Cluster Bern, Switzerland, in co-operation with the Swiss Embassy in Ha Noi, as well as the Swiss Consulate General and the Swiss Business Association in HCM City. Switzerland is the fourth largest European investor in Viet Nam. Swiss companies have invested about US$2 billion in more than 100 projects in Viet Nam. According to the Swiss Customs Administration, the combined volume of the country's trade with Viet Nam reached $1.5 billion in 2014, an increase of 35 per cent compared with the previous year, with Switzerland exporting goods worth $460 million to Viet Nam. Swiss exports to Viet Nam mainly comprise pharmaceutical products, machinery, optical instruments and medical technology, besides watches. Meanwhile, Viet Nam's exports to Switzerland totalled $1.04 billion. Proper steps for VN's 4G service eyed Le Nam Thang, former deputy minister of Information and Communications, advised network providers to make a careful calculation on the demand for 4G (fourth-generation network) implementation. 3G was implemented in 2010 but it just became popular in recent years as more people use smartphones and tablets in Viet Nam. Devices for 4G in Viet Nam are rather costly at this time, which is not suitable with Vietnamese finances. - Photo nld Representatives from the Ministry of Information and Communications, network providers including Vinaphone, Viettel, MobiFone and Vietnamobile, 4G device producers and experts in telecommunication and economy gathered at a seminar titled "How does Viet Nam go to 4G?" in Ha Noi this week. All users want good technology with high quality and wide coverage area, which is the same as all people want to travel by luxurious cars such as Audi and BMW, but the important thing is that we should consider the general social development, Thang said. The market is the decisive factor on whether the service is successful or not, he said. Producers have talked a lot about how it is time to implement 4G, which will allow wireless Internet access at a higher speed than 3G. However, the former minister recommended telecom service providers should not be hasty, given the experience from the deployment of 3G. 3G was implemented in 2010 but it just became popular in recent years as more people use smartphones and tablets in Viet Nam. Devices for 4G in Viet Nam are rather costly at this time, which is not suitable with Vietnamese finances. Besides market demand, two other decisive factors for the deployment of 4G include technology and ecosystem, said Thang. It is important to check whether the technology is popular because if we deploy the technology too early, the price of devices and fees will be expensive. On the contrary, if we deploy late, we will slip as the world will move to another technology. The total subscription of 4G LTE and LTE Advanced hit 700 million users in the world, accounting for 10.4 per cent of mobile subscription world-wide by the third quarter of last year. When the percentage of mobile subscription is at between 10 and 15 per cent, the technology is considered popular. Pham Anh Chien, director of VTV Digital said that to successfully deploy 4G, the ecosystem and content should be strong enough. If for 2G, ecosystems are calling and SMS and 3G's ecosystem is Internet, the ecosystem of 4G will be media. A company is expected to provide television services and high-quality calling to the market, therefore, it needs the handshake with content providers to be able to offer the best service, he added. Tran Tuan Anh, representative of the Viet Nam Telecommunications Authority under Ministry of Information and Communications said that the ministry may grant licences for three businesses asking for trial 4G services. Representatives of VNPT-NET and Viettel said they are ready to pilot 4G. Ho Chi Dung from Viettel said that the group will draw experience from the deployment of 3G to deliver the best 4G services based on user's experience and creative data services. Meanwhile, Nguyen Nam Long, deputy director of VNPT-NET also confirmed the 4G technology has matured and the corporation is waiting for a trial licence to provide services to the market. Property market shows promise with rising liquidity Viet Nam's property market is on the path to recovery and promises to remain busy in the last few months of the year, the Viet Nam Real Estate Association said. About 5,300 successful transactions were recorded in the nine-month period in Ha Noi, representing a rise of 70 per cent over the same period last year. - VNS Photo Nguyen Manh Ha The association's figures revealed rising liquidity and falling inventories of the property market, with large numbers of successful transactions lowering inventories, especially in major cities such as Ha Noi and HCM City. Statistics showed that as of the end of September, property stockpiles declined to nearly VND59.4 trillion (US$2.64 billion), dropping by more than half of the figure recorded in the first quarter of 2013. The current property stockpile includes 11,380 apartments worth about VND17.4 trillion ($733.3 million), 8,542 houses worth VND14.6 trillion ($648.89 million) and seven million square metres of land worth VND22 trillion ($977.7 million). About 5,300 successful transactions were recorded in the nine-month period in Ha Noi, representing a rise of 70 per cent over the same period last year. The southern market witnessed 5,300 successful transactions from the beginning of this year, double the figure a year ago. The recovery of the property market was also reflected in the rising number of new firms operating in property investment and business, the association said. The association's statistics revealed a hefty 78 per cent rise in the number of property start-ups over the same period last year, together with a drop of 30 per cent and 7.2 per cent in the numbers of firms being dissolved or temporarily halting operations, respectively. The anticipated rise in the inflow of foreign direct investment (FDI) was also expected to boost the development of the property market, the association said. The association said the supply of high-end apartments would rise in the remaining months of the year, especially in large cities. High-end apartments accounted for nearly one-third of the total number of apartments that were put on sale so far this year, with the successful transactions accounting for 22 per cent of the total transactions, up from six per cent in 2013 and 18 per cent last year, the association said. The association said an estimated 4,300 high-end apartments would be released in the Ha Noi market towards the end of the year. There would be mild increases in property prices, driven by the overall market recovery and rising demand, especially from foreigners for high-end apartments, the association said. Tea companies focus on domestic market Amid a decline in tea exports, processing and export companies are shifting their focus to the domestic market with anticipated consumption demand. According to the Department of Agriculture and Rural Development of Thai Nguyen Province, the country's premier tea growing region, during the last three years many local firms had invested for further expansion in the domestic market, besides exports. Phan Huy Binh, chairman of Trung Nguyen Import Export Company, one of the biggest manufacturing and processing tea companies in the province with an annual export turnover of more than US$1 million, said that as it was mainly exported as a raw product or through intermediaries, export prices fluctuated between $1.7 to $2.3 per kilo, much lower than selling prices in the domestic market. In such a situation, the company, besides maintaining its export markets, had developed many products for the domestic market with prices around VND200,000 ($9.5) per kilo and recorded positive consumption. In recent years, Tan Cuong – Hoang Binh Tea Company joined farmers to develop stable plantation areas and with local distributors such as BigC, Hapromart and Coopmart to expand the domestic market. The company's director Do Thi Duc Ly said that tea exports did not bring very high added value as it was mainly exported in its raw form. According to the provincial Department of Agriculture and Rural Development, only around 20 per cent of the province's tea output was exported while the rest was for domestic consumption, estimated at around 31,500 tonnes per year. Previously, the Ministry of Industry and Trade said Viet Nam was the fifth largest tea exporter in the world, but tea was mainly exported as a raw product with low export price, equal to about half of the world's average price. In the first nine months of this year, tea exports dropped 8.8 per cent in volume and 8.1 per cent in value to 88,000 tonnes and $151 million turnover, respectively, over the same period last year. Fall in tea exports was forcing the tea industry to enhance product quality and develop brand names, experts said. As of the end of last year, the total area in the country under tea plantation was 130,000ha with Lam Dong, Thai Nguyen, and Ha Giang, in addition to Phu Tho and Yen Bai, being the largest areas.  Regulations on national reserve goods storage, discharge costs announced The Ministry of Finance (MOF) has issued Circular 160/2015/TT-BTC to regulate standard costs for  storage and discharge of national reserve goods which are directly managed by the General Department of State Reserves (GDSR). The circular regulated costs for storage and discharge of food, salt, materials and devices for rescue work under the GDSR’s direct management.  The costs cover the lease of relevant organizations to verify prices; the conducting of tests and inspections of the reserves; the repairing and testing of  measuring devices; the repairing and purchase of devices, tools and packages; the weighing, counting, measurement, packing and unpacking of goods; the installment and trial on the spot; and the loading and unloading of goods. The GDSR’s head will base on the regulations to decide appropriate expenses within regulated quotas. The regulations will also provide a basis for building financial plans and national reserve goods storage and discharge plans from the 2016 budget year.  The costs in 2015 will be counted in accordance with Circulars 186/2011/TT-BTC and 187/2011/TT-BTC dated December 19, 2011 by the MOF.  The newly-issued circular will be effective from December 1, 2015. 2019 start for Long Thanh Airport The feasibility study for the Long Thanh International Airport in southern Dong Nai province will be submitted to National Assembly (NA) for opinion at the end of 2017 and construction is expected to begin in 2019, according to a report presented by the government to the NA. According to the NA resolution on the airport, the legislature must approve feasibility studies at each stage before deciding to continue. Minister of Transport Dinh La Thang, who signed the report, said that in the current preparatory phase of the project there are two key issues that need to be focused on: the compiling of the feasibility study for the first phase and planning, compensation, site clearance, and resettlement. Regarding the first task, Mr. Thang said the government has assigned Airports Corporation of Vietnam (ACV) as the investor and permitted the use of its development funds to prepare a feasibility study for the first phase. He added that, in July this year, the Japanese Government expressed a desire to assist Vietnam in preparing a feasibility study for the project and proposed it sponsor the necessary funds for a feasibility study on passenger terminal categories, worth about $4.3 million. The government is considering directing the Ministry of Transport (MoT) to work with the Japanese side on using this non-refundable capital to reduce the burden on domestic funds in the preparation of feasibility studies. The Minister also said that the conditions on accepting and implementing the funds must comply with existing regulations and ensure synchronization with the preparation of feasibility studies for other elements of the project. Acceptance must not impact on Vietnam selecting contractors and investors. MoT also directed ACV to research and propose plans for raising capital, including ODA and other forms of investment, during the preparation of the feasibility study. Minister Thang said that the government is considering splitting the project’s compensation, site clearance and resettlement issues and assigning the Dong Nai Provincial People’s Committee to implement appropriate site clearance measures. Initially it is expected to build resettlement infrastructure for the clearance of about 2,750 ha in the first phase. The government is also considering investment packages for the construction of the Loc An - Binh Son resettlement areas, on about 282 ha, for the resettlement of all households. Da Lat wholesale market not to sell Chinese-imported potatoes As per a decision of People’s Committee in the hill city of Da Lat in the highlands province of Lam Dong, from October 20, Chinese -imported potatoes will not be sold in the wholesale market Da Lat. The decision was issued because Da Lat Town’s administration wanted to prevent dishonest traders  from coating vegetables with the typical red dirt of the Central Highlands city to disguise potatoes imported from China as the local vegetable and then sell in other markets in the country. This is an act of commercial fraud damaging the brand name of potatoes grown in Da Lat. However, on October 21, some traders gathered in front of the market to raise their objection to the decision. According to lawyer Le Cao Tanh from the lawyer association in Lam Dong province, local government just fine traders who sell Chinese potatoes but scrapped dirt off the potatoes before coating them with Da Lat's distinctive red soil to disguise them as home-grown. If Chinese - imported potatoes that have safe and genuine documents are still alowed to sell in the market.  Consumers will themselves decide to buy what kind of potatoes. Consumer lending surges on high demand Banks and finance companies in HCMC have reported a pickup in outstanding consumer loans in the past three years, driven by high demand of individual customers. Speaking at a workshop in HCMC on Tuesday, Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch, said local banks and finance firms have focused more on consumer lending and related services. In the past three years, consumer loans have tripled those in the 2011-2012 period to around VND80 trillion (US$3.58 billion), accounting for 6.8% of total outstanding loans. Of the figure, secured credit made up 17.5-17.6%. Consumer loans are expected to continue growing given strong demand and higher incomes of residents in the city. Banks have concentrated more on this consumer lending segment to help people overcome financial problems, boost credit growth and raise revenues, Minh said. Some local banks have also acquired finance firms to speed up consumer lending. Statistics showed domestic commercial banks offer interest rates of 9-11% per annum for consumer credit while foreign banks apply annual rates of 6-11%. Meanwhile, finance companies in the city offer rates of 39-49% per year. Minh said the high lending rates are lawful as the central bank only imposes lending rate ceilings on short-term loans in a number of priority sectors. Finance firms are not allowed to mobilize capital from the public but from organizations via valuable papers such as bonds and treasury bills. The enterprises are only able to take out loans from the central bank via refinancing. At present, a bad debt ratio of around 5.1% is reported in the consumer lending segment, which is double that of the city’s banking system. As of September 2015, the bad debt ratio of the system had reached 4.2%, or 2.4% if bad debts at banks bought by the central bank at VND0 each share were excluded. Financial expert Le Xuan Nghia said the lending rate of 49% is high compared to the bad debt ratio of 5.1%. Therefore, the central bank should find solutions to lower lending rates at finance companies. For instance, the central bank should facilitate healthy competition among finance enterprises to reduce lending rates. Besides, their operations will be safer and more transparent if the central bank increases their supervision, Nghia said. Minh, meanwhile, suggested clients of finance companies read lending contracts carefully, focusing on debt payment and interest rate issues, to avoid misunderstanding and risks. The city has around 12 active finance firms. From now to the end of this year, relevant agencies will launch a probe into finance enterprises to reduce risks for customers and protect their legitimate rights. Rubber price falls further Lower rubber prices on global markets have delivered a blow to the domestic price of the commodity over the past two weeks. The price of rubber products for delivery in November was quoted at 159.9 Japanese yen (VND29,553) per kilogram on Japan’s commodity exchange Tocom on Tuesday, the lowest in almost three weeks. The price was 167.1 yen (VND30,876) per kilogram for delivery in March 2016, down 1% from one day before and down 2% compared to last week’s trading session. Domestic rubber prices decreased correspondingly. A kilogram of SVR3L and SVR10 rubber products in southeastern and central provinces were sold at VND26,200 and VND25,900 respectively, down VND1,100 and VND800 per kilogram against October 16. According to the news site about rubber markets thitruongcaosu.net, local rubber exporters offered the free-on-board (FOB) price at less than VND27,300 per kilogram for SVR10, down VND250 per kilogram over October 16. The Ministry of Agriculture and Rural Development reported that Vietnam had shipped abroad 740,000 tons of rubber worth US$1.06 billion in the first nine months of 2015, down nearly 7% in volume and 14 % in value year-on-year. The rubber export price in the first eight months of this year averaged US$1,451 per ton, down nearly 20% over the same period last year. China, Malaysia and India were the main export markets for Vietnamese rubber in the period. China was the largest rubber importer of Vietnam. While exports of natural rubber dropped, imports of industrial rubber products increased. Particularly, in the first nine months of this year, Vietnam imported 283,000 tons of rubber worth US$488 million, up nearly 23% in volume and 5% in value year-on-year. According to the Vietnam Rubber Association (VRA), enterprises have stepped up rubber imports to increase material in stock for production as the price of industrial rubber is in decline on global markets. Vietnam’s fabric production capacity to increase fast Vietnam is expected to quickly increase its fabric production capacity to meet the rules of origin in free trade agreements, said the general secretary of the Vietnam Cotton and Spinning Association (VCOSA). Nguyen Hong Giang said that with textile-garment exports amounting to over US$24 billion last year, Vietnam needed around 8.5 billion square meters of fabric. However, total local fabric output estimated by VCOSA neared three million square meters, Giang told reporters on the sidelines of the 15th Vietnam International Textile and Garment Industry Exhibition (VTG 2015), which kicked off in HCMC on October 21. According to Giang, while the ratio of locally-produced fabric is low, the yarn-forward rule in the Trans-Pacific Partnership (TPP) trade deal and the fabric-forward rule in the free trade agreement (FTA) between Vietnam and the European Union require Vietnam’s fabric production capacity to rise. Vietnam is a big yarn producer with a production volume reaching more than 900,000 tons last year, two-thirds of it exported. If such an export volume is used to produce fabric locally, increasing the yarn production capacity is not urgent, even though the TPP will boost the development of the textile-garment sector. Giang cited sources as saying that around US$3 billion of foreign capital had been pledged for Vietnam’s textile and dyeing in the past 18 months. Regarding retailers’ demand for apparel produced in Vietnam and made of Vietnamese-made fabric to enjoy preferential tariffs of the FTAs, Giang said Vietnam would quickly increase the proportion of locally-made fabric. However, according to Giang, fabric demand requires efforts of enterprises and the Government’s supporting policies in terms of land and wastewater treatment for enterprises investing in textile and dyeing facilities. To produce an additional five billion square meters of fabric, much land and investment would be needed for construction of production and wastewater treatment facilities. Besides enterprises from Taiwan, China and South Korea, Indian firms also plan to set up shop in Vietnam. Talking to the Daily at VTG 2015, Shailesh Martis, deputy director of India’s Cotton Textiles Export Promotion Council (TEXPROCIL), said four Indian enterprises came to Vietnam last week to explore investment opportunities in the textile and dyeing sector in Vietnam. According to Martis, 18 yarn and fabric producers of India are attending VTG 2015 to seek to supply products for Vietnam. India has an edge in yarn and fabric production and its enterprises want to boost exports to this market.  VTG 2015 is taking place at Tan Binh Exhibition and Convention Center in HCMC until Saturday with the participation of over 125 exhibitors from 12 countries and territories. The exhibition is organized by Vietnam National Trade Fair and Advertising Joint Stock Company (VINEXAD), Taiwan’s Chan Chao International Co. Ltd., Hong Kong’s Yorkers Trade and Marketing Service Co., Ltd, Hong Kong’s Paper Communication Exhibition Services, the Association of Garments, Textiles, Embroidery and Knitting (AGTEK), and VCOSA. Middle East-Africa promising market for local firms With an area of more than 36 million square meters and a combined population of nearly 1.5 billion, the Middle East-African region has become a promising market for Vietnamese businesses. At a recent workshop on the prospects of economic co-operation between Vietnam and countries in the Middle East and Africa, Deputy Prime Minister Vu Van Ninh said Vietnam has founded sound traditional friendships and co-operative ties with countries across the region, laying a firm foundation to expand partnership in trade, economics and investment. Secretary General of the UN Conference on Trade and Investment (UNCTAD) Mukhisa Kituyi affirmed that Vietnam was one of the few countries in the world to have long-standing friendly collaboration with the Middle East and Africa. Many Vietnamese businesses, particularly the military-run telecom Viettel and the Vietnam Oil and Gas Group (PetroVietnam or PVN), have co-operated across the region. In a new meeting with Deputy Prime Minister and Foreign Minister Pham Binh Minh, Mukhisa Kituyi said the UNCTAD was willing to support Vietnamese firms to enhance connectivity and investment with partners in the region, particularly in agriculture and food security. Within the framework of the South-South Co-operation (SSC) in natural resources, techniques and knowledge between developing countries and the Triangular Co-operation (TC) between two developing nations and one partner, the UN Food and Agricultural Organisation (FAO) has worked to connect and expand co-operation among Vietnamese and Middle East-African enterprises. Nguyen Song Ha, an assistant FAO representative, said Vietnam was one of the key suppliers of technical assistance for the SSC, adding that African countries highly valued skilled technicians from Vietnam. Agricultural, seafood, and agro-aquatic processing businesses in particular are finding great opportunities to exchange their know-how with experts and investors in the Middle East and Africa, he noted. Deputy Minister of Foreign Affairs Vu Hong Nam said the ministry is working with relevant ministries and sectors to speed up the signing of a legal framework agreement with Middle Eastern and African countries to facilitate the expansion of Vietnamese businesses there. Additionally, the Foreign Ministry will host a number of workshops and forums for entrepreneurs to study law and business environment in the respective societies. Nam said Vietnam is integrating extensively and inclusively into the global community with the signing of many new-generation free trade agreements (FTAs) with the EU, the Eurasia Economic Union (EAEU), and the Republic of Korea. The co-operation prospects for Vietnamese and Middle East-African business players would be expanded further, he said, adding that Vietnam needs a big consumption market like the Middle East and Africa. On the other hand, the Middle East and Africa need Vietnam to embrace links with other markets, specifically ASEAN, he said. The diplomat suggested that local firms diversify their products and take advantage of business opportunities. Mukhisa Kituyi said Vietnamese firms, especially small-and medium-sized enterprises (SMEs), should sharpen their competitive edge to secure a firm foothold and expand operations in the market. Two-way trade between Vietnam and the Middle East-Africa has increased from 2 billion USD in 2005 to 15.7 billion USD in 2014. This, however, remains modest compared to both sides’ strengths and potential. Vietnam has established diplomatic ties with all countries in the Middle East and 52 out of the 55 nations in Africa.- Little impact expected from State capital divestment The upcoming divestment of State capital from 10 major companies is not likely to cause big impact on the market, said an official from the Finance Ministry.  Dang Quyet Tien, Deputy Head of the Agency for Corporate Finance under the Ministry of Finance, said in Public Letter No 1787/TTg-DMDN, the Government has instructed the State Capital Investment Corporation (SCIC) to select suitable time and divestment plans with a view of ensuring minimum impact on the target enterprises’ operations, labourers’ interests and the market.  Eight of the 10 companies which are subject to SCIC's divestment list shares on the two national stock exchanges, including dairy giant Vinamilk (VNM), software producer FPT Corp (FPT), Bao Minh Insurance Corp (BMI), Tien Phong Plastic Co (NTP) and Binh Minh Plastic Co (BMP).  The divestment roadmap will be decided by the SCIC.  Tien stressed that the decision on divestment shows the Government’s resolution to carry out the Law on Management and Use of State Capital that the Government would reduce its involvement in economic sectors where the private sector can operate. Instead, the Government will focus its capital on the fields that need State control, such as security-defence, social welfare, poverty reduction and infrastructure.  Capital obtained from the divestment will be used, as stipulated in the resolution of the third plenum of the ninth Party Central Committee, to invest in the economy, especially in sectors subject to the State control.- Expectations positive for Q4 business prospects About 85.6 percent of the surveyed 4,028 enterprises in the processing-manufacturing sector expect to maintain their current growth trends or expand their business operations in the fourth quarter, according to the General Statistics Office (GSO). Data from the GSO showed that 46.8 percent of respondents were upbeat about their performance prospects, another 38.8 percent forecast stable business operation while 14.4 percent said that they would face difficulties.  Escalating and stable output production will be seen in 86.2 percent of the surveyed businesses while only 13.8 percent forecast a decline. The foreign-invested sector has the highest amount of enterprises expecting a productivity surge in the last quarter of this year with 53.5 percent, followed by State-owned enterprises with 50.7 percent and private enterprises with 47.2 percent.  Regarding the number of orders, 87.3 percent of the respondents anticipated higher stable orders in the next three months and 12.7 percent said that they would have fewer orders than the previous quarter. The largest number of orders is predicted to be in the pharmaceutical production sector, the electronic production sector and other manufacturing industries.  Additionally, 86.9 percent of the enterprises are preparing for stable export orders during the period while 13.1 percent prophesied a fall. Foreign-invested enterprises had the highest optimism for export order increases with 41.5 percent of the respondents compared to the private sector with 35.7 percent and the State-owned sector with 29.6 percent.  Pham Dinh Thuy, Head of the Industrial Statistics Department, affirmed that industrial production is making a remarkable recovery from its recession between 2008 and 2014. Ministries launch rice brand name development project Ministries of Agriculture and Rural Development and Science and Technology hosted a conference to implement a project on development of Vietnamese rice brand name in the Mekong Delta province of Kien Giang on Tuesday.  The Ministry of Agriculture and Rural Development affirmed the project’s significant role with a target that 20 percent rice export volume will be under Vietnamese brand names by 2020.  The rate will increase to 50 percent by 2030, of these 30 percent will be fragrant rice and specialties, it added.  After 30 years of renovation, from a food-shortage nation, Vietnam has developed into the third largest rice exporter in the world with annual output of 6-8 million tons and value of US$3-3.7 billion.  However, Vietnam’s rice production industry still shows many challenges such as small scale, weak connectivity, unequal quality, products without brand name and limited attention in globally value chain. Export resilience to boost economy The Vietnamese economy will likely expand more than 6 percent annually over the next few years thanks to continued export resilience and ongoing reform measures by the government to improve the country's business environment, according to BMI research firm. In the latest study in October, BMI research, a Fitch Group company, forecast gross domestic product (GDP) growth will accelerate to 6.4 percent in 2015, an increase of 0.4 percentage points, compared to 2014 and for the economy to grow in excess of 6.0 percent in real terms over the coming years. BMI maintains a "positive outlook" on Vietnam's economy due to rising foreign investor interest, continued efforts by the government to improve the country's business environment, and the potential for greater private sector participation. The country has made substantial efforts to establish itself as a key logistics hub in the Greater Mekong region, and consequently has reduced bureaucracy to attract investment. Specially, firms have benefited from a gradual reduction in tariff and non-tariff trade barriers, increasing the competitiveness of local producers compared to other regional producers. Regarding the labour market, the study observed that Vietnam offers a number of notable advantages to firms including a high rate of literacy and an increasingly skilled and well-educated graduate population. These advantages allow companies to access a competitive and available workforce. Besides, Vietnam also has strong potential in the construction and real estate sectors. With the easing of regulations on property ownership for foreigners taking into effect since July of 2015, foreign investors can engage more deeply in the housing market and Vietnam. Meanwhile, loose monetary policy and lower inflation will boost the construction and real estate sector in the future. With regard to foreign direct investment (FDI), the study found out that Vietnam will attract more FDI in the next quarters thanks to the great effort of the government to stabilise the the economy. In addition, the Vietnamese Government has sent a strong message to investors that Vietnam will accelerate the process of equitisation of State owned enterprises. This reform will improve the banking system, as well as reallocate many resources for the private sector. Jetstar Pacific launches two new air routes Budget airline carrier Jetstar Pacific on October 25 launched two new air routes linking Hue – Da Lat, and Ho Chi Minh City – Pleiku. In relation to the Hue-Da Lat route, Jetstar Pacific is currently operating three return flights each week every Wednesday, Friday and Sunday, using Airbus A320 aircrafts. The flights depart from Da Lat at 9:40 and land in Hue at 10:50 while the return flights take off at 11:25 and land in Da Lat at 12:30. Regarding the Ho Chi Minh City – Pleiku air route, with a total travel time of 70-minutes, flights take off at 18:10 from Ho Chi Minh City and 19:55 from Pleiku. The two new air routes are the first civil flights offered by Jetstar Pacific in the central and Central Highlands regions to meet travel demands and stimulate trade and tourism development in the localities. On the occasion, Jetstar Pacific announced a promotion programme entitled ‘Return for Free’ on 25 domestic and international air routes. Under the programme, which will run until October 28, passengers only have to pay for one-way fares and are applicable to receive a return ticket free of charge. Passengers can purchase tickets at jetstar.com, mobile.jetstar.com, Jetstar’s call center: 19001550 or at ticketing offices and travel agents nationwide. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR