BUSINESS IN BRIEF 24/11 Vietnam promotes trade in Germany, Poland The Ministry of Industry and Trade and the Vietnam Trade Office in Germany held a series of trade promotion programmes in Berlin on November 20. A highlight of the series was Vietnam Day, organised by the trade office and Germany’s Selgros Cash & Carry. It aimed to promote Vietnamese products in the European country. Many high-quality Vietnamese products, including coffee, beverages and traditional dishes were introduced at the event and received warm responses from visitors. On the same day, a seminar opened at the Vietnam Trade Office, attracting participation from nearly 30 Vietnamese and German businesses. According to Trade Counsellor Nguyen Huu Trang, the seminar aimed to connect enterprises and bring Vietnamese goods to the German market. Pham Ngoc Ky, Chairman of the Vietnamese Business Association in Germany, said the association will do its utmost to work as a bridge, linking the two sides’ businesses and bolstering cooperation. A trade promotion programme also opened in Poland’s capital city of Vacsava. Vietnam expands agro-fisheries market via Singapore Singapore is a strategic gateway for Vietnamese agriculture and seafood exporters to make inroads into other markets, experts commented at a trade exchange programme in Singapore on November 21. The event drew nearly a hundred of businesses from the two countries. Deputy head of the Ministry of Industry and Trade’s Export-Import Department Tran Thanh Hai highlighted rice, coffee, tea, vegetable, fruits, fine art and handicraft products as strengths of Vietnam. Meanwhile, Singapore has advantages in processing, packaging, and increasing product values as well as management, marketing and broad relations with foreign partners, he noted. Chairman of the Hanoi Trade Corporation (Hapro) Nguyen Huu Thang said his company will continue to boost exports of processed food, garment-textile, and handicraft products to Singapore while grasping opportunities from the 5.1-million-population market to enter other countries via trade agreements, including the Trans-Pacific Partnership (TPP) agreement. Singaporean businesses recognised the cooperation opportunities and potentials with Vietnam, especially when it comes to rice, coffee, and tea. Tan Ah Mee, a representative from the Singapore’s Univen Pte Ltd Company said his group imported a large amount of rice from Vietnam and India, of which 60 percent was from the Southeast Asian country. In the coming time, the company plans to purchase 120-150 containers of rice per month, he revealed. Vietnam-Singapore trade posted an annual average growth of 12 percent over the past three years. Vietnam grossed 2.93 billion USD from exports to Singapore in 2014, a yearly increase of 10.4 percent, while importing 6.83 billion USD worth of goods in the period, a year-on-year rise of 20 percent. In the past ten months of 2015, Vietnam’s exports to Singapore expanded by 30 percent year on year to 3.1 billion USD. German company opens first branch in Can Tho DIGI-TEXX Vietnam, a 100 percent foreign direct invested company from Germany opened its first branch in Can Tho City's Ninh Kieu district on November 20, creating 250 jobs. The branch is expected to satisfy the company's need for new production and operation sites as well as an expanded workforce after 12 years in Vietnam. The company said Can Tho had good infrastructure, open administrative policies and quality human resources. From January to June this year, Can Tho attracted 64 foreign investment projects generating a registered investment of 938.3 million USD. These projects are expected to offer 6,700 jobs by 2016. Most of the investment was in industrial, agriculture, hospitality, residential and resettlement projects. DIGI-TEXX is one of several IT companies that have invested in Can Tho. The company expects to promote the city as a potential destination for business process outsourcing to the global market. Vietjet inaugurates HCM City-Seoul flight The budget airline Vietjet inaugurated its new route linking Ho Chi Minh City and capital Seoul of the Republic of Korea on November 23. With this new route, Vietjet will operate daily flights with each lasting 5 hours and 20 minutes. The flight will depart from Tan Son Nhat international airport at 00:15 and arrive in Incheon international airport at 07:25 (local time). The return flight will take off at 11:20 (local time) and land at 14:50 (local time). Tickets are available on the website www.vietjetair.com (also compatible with smart phone at www.m.vietjetair.com) or Facebook at www.facebook.com/vietjetvietnam . Payment can be made online with international Internet banking cards. Apart from online distributions, the tickets are also sold at Vietjet ticketing offices and agencies nationwide. Investors welcome decree guidelines The long-awaited governmental decree detailing and guiding the implementation of some clauses in the new Law on Investment was last week issued, containing clear regulations on investment procedures towards foreign investors. Aside from applying the regulations on business registration procedures and granting investment registration certificates set in the Law on Investment, foreign investors can now handle both of these procedures in one place, according to governmental Decree No.118/2015/ND-CP. According to Quach Ngoc Tuan, deputy head of the Ministry of Planning and Investment’s Legislation Department, this process is clearly regulated in Decree 118 to ensure ease for foreign investors. Investors will submit their investment registration and business registration documents to the investment registration bodies, who will then forward the business registration documents to state business registration agencies within one working day. Then, within two working days of receiving an investor’s records, business registration agencies will consider the legitimacy of these records and give feedback to the investment registration bodies. In the case of amendments or revisions to investor records, either on investment registrations or business setup registrations, investment registration bodies will have to inform the investors of all discrepancies. Based on their investor records, the investment and business registration agencies must co-ordinate on processing and delivering the final results to the investors. “Thus, for the first time, foreign investors doing business in Vietnam will have two options. They can choose to register their investment projects before founding their business here in Vietnam, or handle both procedures simultaneously. As noted in Decree 118, it only takes 15 days for the investors to receive their investment certificates. If the investors satisfy all investment conditions, their projects will not have to be listed amongst those subject to government approval,” Tuan said. In respect to investment procedures applicable to capital contribution or stake purchase, Decree 118 regulates that when foreigners invest in the form of capital contribution and stake purchase, their capital contribution in business organisations are not subject to investment registration procedures. This holds true, except in the case where foreign investors contribute capital or purchase a stake in business organisations that carry special conditions applicable to foreign investors, or when their contributed capital and purchased stakes help hike their chartered capital ownership in targeted business organisations to above 51 per cent. “In these cases, it also takes just 15 days to complete the registration procedures for capital contribution and stake purchases. Notably, already operational local business organisations in which the foreign investors contribute capital or purchase a stake are not subject to an investment certificate revision.” Tuan added. In terms of investment conditions for foreign investors, Decree 118 consists of separate clauses clearly regulating the necessary requirements. The following five points must be clearly stated by the foreign investor: conditions on capital holding of foreign investors in business organisations; conditions related to the investment model; conditions on investment scope; conditions on Vietnamese partners joining investment activities; and other conditions regulated in laws, ordinances, decrees, and international conventions on investment. Foreign investors doing business in diverse fields are obliged to meet all investment conditions of these sectors. Decree 118 states, for example, that in cases where foreign investors are subject to applying international conventions on investment that feature different regulations, they can choose to apply the investment conditions in one of the conventions. In this case, foreign investors shall exercise their rights and obligations in light of regulations in this chosen convention only. Taiwan shoemaker expanding in Vietnam ahead of TPP Pou Chen Corp, the world's largest contract shoemaker, has become the latest Taiwanese manufacturer to shift its focus to Vietnam in anticipation of favorable tariffs brought by a Pacific Rim trade deal. A known supplier of many major brands such as Nike and Adidas, Pou Chen is moving a large portion of its operations from China to Vietnam, where 42% of its shoes were made in the first nine months of this year, Nikkei Asian Review reported on November 19. The company, which ships more than 300 million pairs of shoes annually and has 75% of its revenue from footwear and apparel, made 34% of its shoes in Vietnam in 2013 and then 39% last year. Company spokesman Amos Ho was quoted as saying that it has been gradually moving its manufacturing bases to Vietnam since 2012, due to rising wage and employee benefit costs in China. "We consider economic and political conditions in Vietnam to be stable," Ho said. A file photo of a worker working at a footwear factory in Vietnam. Photo: Diep Duc Minh But, some analysts believed that the move, which has been carried out by other Taiwanese manufacturers, was mainly prompted by the Trans-Pacific Partnership. The free trade agreement among 12 nations, including Japan, the US and Vietnam, is expected to boost shipments within the bloc, which accounts for 40% of the global economy. Negotiations were completed last month and are now pending the approval of the countries' legislatures. Peggy Shih, an analyst at Yuanta Securities Investment Consulting, told Nikkei Asian Review that under the deal, member states can export goods to the US without customs duties. Pou Chen's smaller rival, Taiwanese-owned Feng Tay Enterprises, has also been expanding its business in Vietnam, where its factory has produced more than half of its shoes this year, according to the news report. In June, Far Eastern New Century, Taiwan's leading textile maker, was licensed to invest in a factory with US$274 million in the southern province of Binh Duong. Taiwanese investors pledged a total of US$972.8 million for 124 new and existing projects, mostly in the manufacturing sector, in the January-September period, according to the Foreign Investment Agency. Ganh Hao maximizes maritime economic potential Ganh Hao township, Dong Hai district, Bac Lieu province, has a long coastline. Local people have turned poor coastal villages into a large commercial fishing port. In the past any mention of Ganh Hao town recalled a song by Vu Duc Sao Bien about a beautiful land with arenga and indigo forests stretching as far as the eye can see. But the song’s plaintive lyrics and melody, written in the form of southern traditional music, made listeners feel that the life of the people there was difficult. Today visitors to Ganh Hao will recognize major changes. Ganh Hao has become a prosperous township where residents live in modern houses as people do in urban areas. In addition to arenga and indigo forests there are shrimp ponds and Ganh Hao’s fishing port is busy day and night. Hoang Van Ky remembers his first days in Ganh Hao “in 1972, there was an abundance of mangrove forests, fish, and shrimp. Though fishing equipment was very simple, we still could catch lots of fish and shrimp. As its fame grew, numerous people like me decided to move here.” With a coastline of 23 km and two seaports, Ganh Hao has nearly 4,000 ha of coastal wetland and a vast sea area. In recent years, Ganh Hao has been concentrating resources to develop a sea-based economy and become a key economic hub in Bac Lieu province. Dong Hai district has developed infrastructure, built workshops for ship repair, set up logistic teams, and multiplied offshore fishing teams. Mai Hoang Nen, deputy director of Ganh Hao’s fishing port, said that “the government and provincial administration plan to expand the port in the near future. Once the expansion is completed, more boats will come from other provinces and local aquaculture will grow.” In addition to upgrading and expanding its fishing port, Ganh Hao is calling on enterprises to invest in salt production and shrimp breeding in the form of highly intensive farming in glasshouses. Bui Minh Tuy, chairman of Dong Hai’s People’s Committee, said growth has been averaging more than 16% per year thanks to taking full advantage of the maritime economic potential, and the local average annual income in now more than US$1,600, twice what it was 5 years ago. 25% of Japanese firms relocate to Vietnam after China exit: JETRO One out of four Japanese businesses that left China would head for Vietnam, a trade official has recently revealed. As many as 25% of Japanese firms have relocated their operations to Vietnam after the China exit, Yasuzumi Hirotaka, head of the Ho Chi Minh City branch of the Japan External Trade Organization (JETRO), said at a meeting in the southern city of Can Tho. The regular event was held by the Can Tho branch of the Vietnam Chamber of Commerce and Industry (VCCI) to review investment activities Vietnam’s Mekong Delta. Japanese investors are attracted by the cheap labor costs and the much improved infrastructure in the Southeast Asian country, Hirotaka elaborated. Many new bridges and roads have been built in Vietnam, cutting travel times between localities, so Japanese businesses want to expand investment to other areas rather than just Ho Chi Minh City, he added. Still, businesses from the East Asian country are still concerned as investment information remains mostly unclear, while labor costs have also begun rising, the JETRO official noted. The weak supporting industries of Vietnam is also an issue, as a business could only domestically source 33% of the necessary materials for production, while having to import the remaining proportion. Vietnam thus needs more support in terms of taxes and other incentives to improve the supporting industries. A representative of the Korean trade organization also told the meeting that its member businesses do not know much about the agriculture sector in Vietnam’s Mekong Delta. Mekong Delta provinces are therefore urged to supply more information and introduce their strengths to foreign businesses to be able to attract more investors, the South Korean trade organization advised. Besides Can Tho, which is directly administered by the central government, the Mekong Delta also includes such provinces as Long An, Tien Giang, Ben Tre, Vinh Long, Tra Vinh, Hau Giang, Soc Trang, Dong Thap, An Giang, Kien Giang, Bac Lieu and Ca Mau. These 13 localities took advantage of the meeting on November 19 to inform international investors that they are calling investment for 74 projects. Japanese businesses will boost investment to the Mekong Delta, and seafood emerges as the industry with the biggest potential, according to the Japanese trade representative. Vietnam’s Mekong Delta attracted US$2.3 billion worth of foreign investment between 2011 and 2014, according to the VCCI Can Tho. The area posted an average economic growth of 10% annually from 2001 to 2010, and 8.8% a year in the 2011-14 period. There are now 29,000 businesses operating in the Mekong Delta, accounting for 7.7% of the total number of firms across Vietnam. Considered Vietnam’s granary, the Mekong Delta supplies more than 90% of the country’s rice production, and 50% of the seafood outputs, among many other agriculture produce, according to the VCCI Can Tho. BIDV unveils plans for representative office in Taiwan The Bank for Investment and Development of Vietnam (BIDV) on November 21 revealed plans to open a representative office in Taiwan, as it seeks to expand outside its home market of Southeast Asia. The move is in response to an increase in the number of customers from Taiwan, some of whom are positioning themselves to invest in Vietnam ahead of its imminent entry into the ASEAN Economic Community. "The number of customers that we have from Taiwan is growing, and we hope to facilitate communication with them by opening a representative office there," said BIDV President Tran Bac Ha. President Ha said the bank hopes to open the office by the end of November and inaugurate a branch bank within 3-5 years. Private companies’ outbound investment sees explosive growth Vietnam private companies’ overseas financial investment in the 10 months leading up to November expanded by US$625 million, reports the Foreign Investment Department (FID) under the Ministry of Planning and Investment. The FID welcomed the figures as positive for medium-term economic growth expectations saying most of it was placed into businesses located in Laos, Cambodia and the US. Of the figure, US$192.8 million was registered for deals that were in existence on January 1, 2015 while US$441.9 million was for new business ventures signed during the 10 month period. Outward direct investment favoured mining, agri-forestry and aquaculture but also covered fields such as communications, electricity generation, real estate, finance, banking and insurance.  Vietnam-France JV likely to buy exclusive TV rights of English Premier League When television stations in Vietnam have been united to bargain for a reasonable price of the telecast rights of the English Premier League (EPL), the K+ TV station has shown signs that it will keep way from the group. English Premier League to be broadcast for free in Vietnam Following the recommendation of the government, local TV stations have agreed not to compete with one another to up the prices of the EPL broadcast rights in Vietnam offered by MP & Silva – the authorized sports marketing firm entitled to distribute the exclusive TV rights in Asia-Pacific. The leaders of most major TV stations have reached an agreement that they will buy the TV right packages only if they are at most 20% more expensive than the rate of the previous seasons. TV stations in Vietnam spent US$38 million purchasing the telecast rights for 2013-2016, or US$12.7 million per season. It is estimated that the price for the package of three seasons from 2016 to 2019 will soar to US$70 million. The price of television rights to EPL matches in Vietnam has increased 28-fold within 14 years, from US$450,000 in 2002 to US$12.7 million in 2015. To be exact, the cost was US$900,000 for two seasons in 2002-2003 and 2003-2004, or US$450,000 each. Then, the price rose to US$2 million for a package of three seasons from 2004 to 2007, before it almost doubled to US$3.972 million for a three-season package between 2007 and 2010. For the 2010-2013 seasons, Vietnamese television stations then spent around US$16-US$19 million for the rights to air the matches live. Le Dinh Cuong, vice chairman of the Vietnamese pay-TV association, sent a report to the prime minister on November 19, pledging its members will not agree to any increase of over 20% in the price of the broadcast rights. Cuong added that the station members may buy the rights to air all EPL matches but they will definitely not purchase any exclusive rights. The agreement was concluded on November 17 by 12 major TV stations in Vietnam, including VTVCab, SCTV, K+, VTC Digital, FPT Telecom, VNPT Media, Viettel Telecom, AVG, Hanoi Cable TV, VTV, Hanoi TV and Radio, and HTV. However, a leader of a TV station told Tuoi Tre (Youth) newspaper on condition of anonymity that K+, a joint venture between Vietnam’s national broadcaster VTV and France’s Canal+, may break the promise and stand apart to buy the exclusive rights. After the TV station leaders reached the agreement, the minutes of their meeting were prepared with 11 signatures. Le Chi Cong, general director of K+, did not sign the minutes. “MP & Silva will sell the TV rights of the EPL matches in different packages. Some of them will be exclusive while others will not,” the anonymous leader said. The leader quoted the K+ executive as saying that the station will purchase the exclusive packages if its counterparts do not. Later, a subordinate of Cong signed the minutes with a comment, “We acknowledge the spirit of the association.” It is believed that K+ will ‘employ’ its old trick to stand apart from the pay-TV association by letting their parent agency, Canal+, buy the exclusive packages and transfer them to it. Facilities to be exposed for packaging violations Authorised agencies will publicise lists of facilities and businesses found violating regulations on quality and measurement standards, Tran Viet Thanh, deputy minister of science and technology told a workshop last week. A recent inspection campaign, launched by the ministry, has examined 16 kinds of packaged products from 2,900 facilities and businesses in 63 cities and provinces. Nearly 600 facilities and businesses were found violating regulations on labels and measurement standards with drinking and agricultural products accounting for 50 per cent of violation cases. The most common violation was that the actual weights of the products were less than ones written on the packing. Nghe An Province had the highest number of violation cases. Among 37 samples of bottled mineral water tested, 23 were found seriously violating quality standards, according to a representative of the province's department of science and technology. Owners of the these facilities have used fake quality testing certificates to sell their products in the domestic market. Tran Minh Dung, chief of the ministry's inspectorate said that the current punishment was not strong enough to solve the problem. "The total collected fine for violations of quality and measurement standards of nearly 600 facilities and businesses was only VND1.7 billion (nearly US$76,000)," Dung said. The ministry has proposed a considerable increase in administrative fines for violators. "We need stronger punishment to address the problem. Those who seriously violate quality standards, posing risks to consumers' health should be considered as criminals," Thanh, the deputy minister, said. The ministry's plan to publicise lists of facilities violating regulations on quality and measurement standards will protect consumers' rights and help them make better choices in purchasing packaged products. "This is also a warning for facilities and businesses who only care about their profits regardless of consumers' health. People will protect their health by boycotting low-quality products," Thanh said. Work begins on Lach Giang Estuary project The inland waterway corridors and river ports in the Lach Giang Estuary, worth VND1.6 trillion (US$75 million), were inaugurated yesterday in northern Nam Dinh Province's Thinh Long Town by the Ministry of Transport and the World Bank. The work was finished one month ahead of the deadline. It is part of a major transport project, costing more than $200 million, to build inland-waterway-transport infrastructure in 14 provinces and cities, including a loan of $170 million from the World Bank and the remainder coming from the Vietnamese Government. Speaking at the ceremony, Le Huy Thang, general director of the ministry's Management Board for Waterway Projects said that the work was believed to open an important inland-waterway connection among the northern delta region with other regions throughout the country. Via the corridors and river ports, vessels with loading capacity of 1,000 tonnes could reach ports on the Red (Hong) River and 3,000-tonne ship could enter ports in Ninh Co, he said. In the past, only 500-tonne vessels were allowed go through the Lach Giang Estuary, he said. Thus, it helped to shorten travel time, save travel costs and reduce overload for road transport, he said. Thang also added that the work would contribute much to the economic development of the northern delta region. Victoria Kwakwa, the World Bank's country director in Viet Nam said the work played a vital role in helping high-capacity vessels to easily reach inland waterways year round. In the past, high-capacity vessels had to depend on the tide as well as other factors to reach inland waterways, she said. Deputy Minister of Transport Nguyen Nhat ordered the People's Committee of Nam Dinh to co-operate with the ministry to effectively run the project. Branding holds key to business success Building a brand takes a big effort by enterprises, and enterprises need to invest to enhance product quality, said Nguyen Thi Anh Hong, deputy chairwoman of the Vietnam Tea Association at a seminar held in Ha Noi last Friday. The Viet Nam Chamber of Commerce and Industry (VCCI) co-operated with the wildlife trade monitoring network (TRAFFIC), Vietnamese VP Bank and the British Council to hold the seminar titled "Innovative management and building enterprise image". The seminar aimed at enhancing innovative businesses, accessing modern and sustainable management models. The seminar also discussed building enterprise images through carrying out social responsibility, as well as increasing interaction and cooperation among the business community for the common benefit. Branding is an important factor that helps firms maintain, expand and develop domestic and international markets, and increase trade. Therefore, experts urged Vietnamese firms to build and manage brands for their products as the country will face fierce competitiveness from foreign products in the context of further international economic integration. Nguyen Thi Thu Hang, VCCI general secretary, said Vietnamese firms are lacking of knowledge of brand building and resources to build a brand. Building brands requires efforts not only of resources but also a management system of enterprises, Hang added. She also advised firms need to protect and continue innovation after building their brands to create sustainable brands. The seminar attracted about 200 delegates from enterprises, start-up funds and associations to respond to the Global Entrepreneurship Week from November 16-22 with over 160 countries participating. GAS to auction off SeABank shares in fourth quarter PetroVietnam Gas Joint Stock Corporation (GAS) will offload all its shares in the Southeast Asia Commercial Joint Stock Bank (SeABank). According to the board of directors' resolution, GAS will auction more than 8.226 million shares, or a 1.505 per cent stake, for a starting price of VND10,167(45 US cents) each. The auction, scheduled for the last quarter of 2015, is part of the restructuring plan of the corporation. GAS, the country's largest corporation of its kind in Viet Nam, earned VND14 trillion ($622.2 million) in revenue and VND2.325 trillion ($103.33 million) in net profit in the third quarter this year. GAS, also known as the most profitable stock in the market with a capital of $8 billion, unveiled a plan in October to invest in gas projects overseas in 2020, to ensure that Viet Nam gets five billion to 10 billion cubic metres of gas a year from 2025 to meet domestic demand. The overseas gas projects are part of a development plan of GAS till 2025, with a vision towards 2035. The energy firm aims to become the fourth largest firm in Southeast Asia in 2025 in terms of gas output, and join a list of strong gas corporations in Asia with total assets worth VND128 trillion ($5.71 billion), compared to the current VND53 trillion ($2.37 billion). GAS aims for total gas output of nearly 60 billion cubic metres in the 2016-2020 period, and 300 billion cubic metres in the 2016-2035 period. On November 20, each share of GAS closed at VND43,500 ($1.93) on the HCM Stock Exchange. Meanwhile, the Ha Noi-based SEaBank plans to earn VND1.25 trillion ($55.5 million) in net interest revenue, and between VND100 billion ($4.4 million) and VND110 billion ($4.8 million) in after-tax profits in 2015, an increase of 20 per cent compared with 2014. The bank also aims to earn VND1.4 trillion ($62.2 million) in net interest revenue and between VND100 billion ($4.4 million) and VND130 billion ($5.7 million) in after-tax profit in 2016. Department seeks funds for Da Lat railway The Viet Nam Railway Department has drafted plans to lease out infrastructure in the Da Lat-Trai Mat rail section to mobilise private investment for developing railway infrastructure. The lease of the first rail section aims to create a "breakthrough" in the operation of the country's railways. The 6.7km Da Lat-Trai Mat stretch is part of the Thap Cham-Da Lat rail route built in 1932 and unused since 1972. In 1991 the stretch was restored and put into operation again to carry visitors to Linh Ung Pagoda and nearby areas in the Central Highlands province of Lam Dong. The meagre number of passengers served by the route and the degraded infrastructure are a burden for the railway department. Figures from the department show that in the past three years the Da Lat -Trai Mat section has earned annual revenues of VND2.981 billion (over US$130,000), while maintenance expenses amount to VND1.27 billion ($56,700), operation expenses to VND2.691 billion (over $120,000), and infrastructure fees to VND0.28 billion per year. "On average, the operation of the Da Lat-Trai Mat section gets a subsidy of VND983 million per year [from the Government]," Khuong The Duy, deputy chief of the railway operator, said. "The subsidy will increase in future because infrastructure has been degrading and the number of passengers is declining." The department has lands and other properties like the ancient villas situated inside the nearly 44,000sq.m Da Lat station at 1 Quang Trung Street. "Mobilising funds from investors for restoring and upgrading infrastructure and locomotives to effectively operate and serve Da Lat's tourism industry is a very urgent need," Duy said. Under the proposal by the Viet Nam Railway Department, the leasing would be divided into two phases. In phase 1, the investor will have to spend on construction, management, operation, and maintenance of the section. In the second phase, the investor will develop tourism and hospitality facilities along the route to tap the tourism potential of the route. New possibilities Local companies Hoa Sen and Hoa Phat JSC have shown interest in taking over a proposed steel production complex in the central province of Quang Ngai's Dung Quat Economic Zone from a Taiwanese investor who has backed out due to financial reasons. According to a source from the Dung Quat Economic Zone management, the investor of the Guang Lian steel plant had reported inability to raise funding for the multi-billion-dollar project a few months ago. Hoa Sen and Hoa Phat are keen to develop their projects at the site of the Guang Lian steel project. However, there are signs that Quang Ngai Province authorities prefer Hoa Phat, official comments made on a document on Hoa Phat's bid indicate. Hoa Phat has proposed building a $2-2.5 billion steel plant with an annual capacity of four million tonnes in two phases. The company plans to bring in 65 per cent of the amount and obtain bank loans for the rest. It wants 300-350 hectares of land for the plant, and 150ha for the first phase, at the site of the suspended Guang Lian plant. In the document, Quang Ngai officials note that Hoa Phat has experience in building and operating a 1.2 million tonne per year steel plant in the northern province of Hai Duong and the financial wherewithal to raise the needed amount. They also believe that the 300-350ha requirement by Hoa Phat is better than the 504ha demanded by the Taiwanese company though that was to have been a 5 million tonne plant. Hoa Phat has asked the Government for the same tax and rent incentives it offered Guang Lian. Provincial authorities have said if Hoa Phat takes over the project and keeps the terms unchanged, it can enjoy all the incentives stated in the licence issued to Guang Lian. But any changes to the terms of the project could see a change in the incentives too, they said, though in both cases approval would have to be obtained from the Government. Quang Ngai authorities had earlier written to Hoa Sen after it said it wanted to build a steel plant at the location of the Guang Lian project, saying if the company invests in a new project, the incentives would be in line with new laws on land, investment and construction. They said Hoa Sen should consider a plant with a capacity of 3-5 million tonnes since it would be appropriate for the area and the depth of the local port, they said, adding if it chooses to produce five million tonnes, it would get a maximum of 504ha, the same as Guang Lian. Hoa sen has yet to respond. Land prices surge Land prices have risen on the Thanh Da-Binh Quoi peninsula in HCM City's Binh Thanh District following an announcement by city authorities that they are scouting for a new contractor to develop a VND30 trillion ($1.3 billion) ecological urban zone there. The announcement also meant zoning plans drawn up more than 20 years, which prevented hundreds of families from building houses, have been scrapped, giving another cause for land prices to increase. Prices of land on main roads have skyrocketed from VND6.5-10 million per square metre early this year to double or triple that now. Tran Van Doanh, a resident of Block 1, insists on VND15 million per square metre for his 100sq.m piece of land in an alley and says no to any plea for a discount. Truong Tan Dung, who lives on Binh Quoi Road in Ward 28, wants VND19 billion (nearly $850,000) for his 800sq.m house in the Thanh Da -Binh Quoi peninsula, saying, "I will not give a big discount because it is the going price there." "The five bridges to be built in the near future to link Binh Quoi-Thanh Da with Districts Thu Duc, 2, and 9, will make this place bustle and the most worthy place to live in HCM City." According to Tran Thanh Binh, a real estate division official at the Binh Thanh District People's Committee, prices of street houses in Thanh Da-Binh Quoi have risen to over VND35 million per square metre. He said land prices were raised after the city People's Committee made the decision to find a developer for the ecological urban zone. Le Hoang Chau, chairman of the HCM City Real Estate Association, said investors have been looking for vacant plots of land in the Binh Quoi -Thanh Da Ecological Urban Zone where the five bridges will be built. The bridges would give the peninsula a new look and boost the city real estate market, he claimed. Le Ba Chi Nhan, a housing analyst, said local authorities and relevant city agencies should promulgate detailed zoning plans for the project to prevent people from selling to unsuspecting buyers lands to be acquired later for public works, which would lead to disputes. Auto importers petition PM Automobile importers in Vietnam have sent a petition to Prime Minister Nguyen Tan Dung, Deputy Prime Minister Hoang Trung Hai, Minister of Industry and Trade Vu Huy Hoang, Minister of Finance Dinh Tien Dung, and the Economics Committee of the National Assembly regarding the difficulties in their operations caused by the recently-issued Decree No. 108. On October 28 the government issued Decree No. 108/2015/ND-CP, to take effect from January 1, 2016, which changes a number of regulations on special consumption tax. With the new tax formula regulated in the Decree, taxes would be applied not just on the CIF price but also on the importers’ other costs as well as profits, increasing the retail price by a considerable margin. This will have consequences for consumers, the revenue of importers, as well as State Budget revenue. Genuine importers of ten international brands - Audi, BMW, Mini, Rolls-Royce, Bentley, Lamborghini, Jaguar, Land Rover, Porsche, Renault, Subaru, and Volkswagen - complained that frequent changes to laws and regulations in Vietnam gives the country a poor reputation and creates an unstable and unsustainable environment for them to develop. The importers suggested that the government postpone the date of effect for Decree No. 108 by six months, to July 1, so they may have more time to study it and make changes to their business activities to avoid any disruption. They also asked policymakers in the government as well as the Ministry of Finance to consult with them before making any changes to regulations, in order to ensure policy consistency and market stability. Credit in Hanoi slightly higher in November The Hanoi Statistics Office has released mobilized capital and credit figures for Hanoi in November. Although interest rates have decreased, total mobilized capital at credit institutions increased against October, to an estimated $60.72 million, up 1.2 per cent month-on-month and 16.2 per cent against December 2014. Deposits increased 1.2 per cent compared to October and were 14.6 per cent higher than in December 2014. The issuance of valuable papers increased 0.4 per cent month-on-month and 49.2 per cent compared with last December.   Total outstanding credit in Hanoi in November is expected to reach $52.36 million, an increase of 1 per cent against October and 18 per cent against December 2014. Outstanding short-term credit rose 1.2 per cent compared to October and 9.8 per cent compared to December last year, while outstanding mid- and long-term credit increased 0.7 per cent month-on-month and was 32.2 per cent higher than in December 2014. Hanoi CPI up slightly Hanoi's CPI rose slightly in November, by 0.04 per cent, despite cuts to petrol prices on October 19 and November 3. According to the Hanoi Statistics Department, the CPI increase was attributed to rises in water and gas prices, which pushed up the price of housing, electricity, water, fuel and building materials by 0.37 per cent compared to October. Apparel also increased 0.11 per cent against October due to higher demand for warmer clothes and footwear as the north heads into winter. Four groups of commodities saw slight increases over the previous month, including education, up 0.01 per cent, beverages and tobacco 0.06 per cent, pharmaceuticals and health services 0.07 per cent, and household appliances 0.08 per cent. Several commodities posted rises between 0.11 and 0.37 per cent against October. Meanwhile, prices in three groups of commodities went down compared to October: restaurants and food services by 0.04 per cent, transportation 0.42 per cent, and post and telecommunications 0.26 per cent. 10M trade turnover with Asia at $176 billion According to figures from Vietnam Customs, trade turnover between Vietnam and all continents recorded growth in the first ten months of the year, except for Australia, which fell by 16.8 per cent and ended October with accumulated trade turnover of just $4.89 billion. Compared to the same period of 2014, trade with North America increased the highest, by 19.9 per cent, reaching $45.7 billion. Trade with Africa saw the lowest result, of $4.48 billion, but was second-highest in terms of growth, at 13.9 per cent. European trade followed in both regards, with turnover of $38.75 billion, for an 11.4 per cent increase. Trade with Asia experienced quite low growth, of 10.1 per cent, but recorded the highest value, at $176.27 billion, which accounted for the highest proportion of Vietnam’s total trade turnover, at 64.7 per cent. Mobile World sees 10M profit at $37 million Mobile World recorded a net profit of VND846 billion ($37.65 million) in the first ten months of the year, or 56 per cent higher than in the same period of 2014 and representing 95 per cent of its profit target for the year as a whole. Revenue of the electronics retailer stood at 84 per cent of the annual plan, or VND19,891 billion ($885 million), for an increase of 61 per cent year-on-year. Mobile World also revealed that 83.4 per cent of its revenue (VND16,596 billion, or $739 million), came from its thegioididong.com chain and the remainder from dienmayxanh.com. Revenue from its online business failed to meet expectations, reaching just VND1,253 billion ($55.8 million), or 63 per cent of the annual target, but was nonetheless 76 per cent higher year-on-year. Mobile World expanded its distribution network in the first ten months, with 196 new outlets around the country (164 thegioididong stores and 32 dienmayxanh stores). It opened an average of four new stores every week. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR