BUSINESS IN BRIEF 9/12 Plastics & Rubber Vietnam to take place in March The 6th International Plastics and Rubber, Technologies and Materials Exhibition and Conference for Vietnam (Plastics & Rubber Vietnam 2016) will take place from March 1 to 3 at Saigon Exhibition and Conference Centre (SECC) in HCM City. The event will include a comprehensive display of global technologies and equipment, production materials, semi-finished products, technical parts, and services for the industry. The 2016 edition will see international group participations from Austria, China, Czech Republic, Germany, Italy, the Republic of Korea, Singapore and the UK. Last year, the event attracted 152 exhibitors from 19 countries and regions, and 7,000 trade visitors from Vietnam and the surrounding region. This year, it will be incorporated with the 11th International Processing and Packaging Exhibition and Conference for Vietnam, to provide a full marketplace for industry leaders. The plastic manufacturing industry is one of the fastest-growing industries in Vietnam, sustaining average annual growth of 20-25 percent. According to the Vietnam Plastic Association, the country's export turnover of plastic products reached $4.2 billion in the first six months of 2015, up 10.3 percent year on year. Ho Chi Minh City willing to facilitate RoK investments Ho Chi Minh City is willing to address difficulties for foreign enterprises, including those from the Republic of Korea (RoK), Tat Thanh Cang, Vice Chairman of the municipal People’s Committee, said at a dialogue on business support for RoK enterprises held in the city on December 8. The municipal authorities always consider the difficulties facing businesses as challenges in creating a clear and sound business and investment environment, he said. HCM City is one of the localities leading in fostering the Vietnam-RoK strategic cooperative partnership, particularly in economics. As of November, the RoK was the city’s fourth biggest investor with 1,150 projects capitalising at 3.9 billion USD. The City hopes to continue welcoming more RoK investors in the near future, he added. Lee Dong Geun, executive Vice Chairman of the Korea Chamber of Commerce and Industry, affirmed that many RoK companies are considering Ho Chi Minh City an attractive destination for business and investment. The companies wish to contribute to the city’s sustainable economic development through experience sharing and technology transfer. Lee spoke of the significance of the dialogue, saying it offered a chance for RoK investors to meet municipal authorities and get updated about the City’s new policies, and voice difficulties facing them during their operation. The Vietnam-RoK free trade agreement, which was approved by the RoK Parliament on November 30, will open up more trade and investment opportunities for both sides. It is expected to help reach the target of 70 billion USD in two-way trade by 2020. There are over 4,000 RoK companies operating across sectors in Vietnam. Cement export target misses mark this year While the cement industry was struggling with an excess of supply over demand, exports, which were considered a solution to boost consumption, failed to meet expectations. Cement and clinker exports in 11 months of this year dropped by 27 percent over the same period last year to roughly 15 million tonnes, far below the target of 20 million tonnes for the full year. The cement industry faced harsh competition from China, the world's biggest cement producer, which accounted for 60 percent of the world's total output and selling at lower prices. Luong Quang Khai, Chairman of Vietnam Cement Industry Corporation (Vicem), which held a 35 percent share of the domestic market, said that Vicem's cement export could only meet 60 percent of the full year's target. Vicem set goal of exporting 3.5 million tonnes cement and clinker this year, the same as last year. Khai said that Vicem did not want to lower prices to boost exports as doing this would affect other procedures and the entire industry. A representative of The Vissai, the country's leading cement exporters, said it would be difficult to achieve the same cement export results as the previous year. Previously, the Ministry of Construction estimated that total cement sales would reach between 72 million and 74 million tonnes this year, up 4 percent over 2014, in which exports would be at around 20 million tonnes. The ministry forecast that cement exports would fall to around 16 million to 17 million tonnes next year and the total cement sales would be between 75 million and 77 million tonnes. To date, there were 76 cement production lines in the country with a total design capacity of 81.56 million tonnes per year which would then increase to more than 98 million tonnes in the next five years. As a result, the industry was anticipated to continue facing an excess of supply over demand in the domestic market. The ministry urged cement producers to reduce production costs and improve its distribution network to lower prices. Banks called on to improve efficiency The rapid integration requires urgent improvement in the legal framework of credit institutions to enhance operation efficiency and competitiveness amid anticipated rising competition, a conference heard yesterday. Nguyen Hong Son, principal of the Economics University under the Viet Nam National University, Ha Noi said that along with the economic integration, many foreign lenders would penetrate the domestic market offering various choices in banking services for customers. To date, Viet Nam participated in 15 bilateral and multilateral trade agreements, ranking fifth among 10 ASEAN member countries. In terms of the foreign trade-to-GDP ratio, or trade openness ratio, Viet Nam ranked second in the ASEAN region. This required local commercial banks to be well prepared for integration through hastening of restructuring to develop a healthy banking system with safe credit operations and improved capacity of raising social resources for efficient investments, Son said. According to the State Bank of Viet Nam (SBV), the banking sector during the past five years was in a drastic overhaul towards enhanced efficiency and competitiveness. However, the progress was not as rapid as expected, SBV's Deputy Governor Nguyen Kim Anh said. He said that the international economic integration efficiency remained low and the renovation progress remained slow, adding that the legal framework needed to be improved together with a strategy to be raised to cope with potential shocks to arise from more intensive integration. According to Trinh Minh Anh, deputy chief of the Office of the Interdisciplinary Steering Committee for International Economic Integration, local commercial banks must improve their capital, technologies and management capacity to enhance service quality and better meet customer demands, as fierce competition was expected from foreign rivals. Nguyen Huu Nghia, chief inspector at the central bank, said that commercial banks should focus on their core businesses while reducing their businesses in risky sectors. Ties with Swiss firms promoted Potential areas for cooperation between Vietnamese and Swiss businesses were discussed at a forum in Geneva on Monday. The Viet Nam-Switzerland Business and Investment Promotion Forum was co-organised by Viet Nam's Permanent Mission to the UN, the World Trade Organisation (WTO) and other international organisations in Geneva. It aims to create a network of cooperation between Vietnamese businesses and their Swiss counterparts, as well as other organisations. Trade between Viet Nam and Switzerland has reached US$633 million in recent years. In the first 10 months of this year, Viet Nam exported $184 million worth of goods to Switzerland, while importing $340 million worth of goods from the European country. In 2014, Switzerland ranked 18th among 101 countries and territories investing in Viet Nam, with 102 projects valued at more than $2 billion. A number of Swiss firms, such as Holcim, Nestle, Generalli Insurance, ABB and Syngenta, have gained a reputation in the Southeast Asian nation. Many well-known Swiss universities specialising in the fields of tourism and finance have also attracted a crowd of Vietnamese students. Participants at the event shared their experiences in running businesses within the context of global economic integration and competitiveness. Paul Wessendorp, chief of the Investment Promotion Section under the UN Conference on Trade and Development (UNCTAD), lauded the remarkable progress Viet Nam has made in shifting towards a market economy. The country's encouragement of private companies, openness to foreign investors and its host of reforms helped boost its industrial development, diversified the economy and integrated it more deeply into the world economy, he said. Highlighting Viet Nam's engagement in the Trans-Pacific Partnership (TPP) agreement, Paul Wessendorp said Viet Nam was one of the leading nations in Asia in terms of publicising its investment procedures in detail and transparently. Other UNCTAD experts gave their opinions on the Vietnamese market, focusing on issues regarding foreign direct investment, small and medium-sized enterprises and e-commerce in the country. Vietnamese Deputy Minister of Justice Nguyen Khanh Ngoc highlighted his country's efforts to improve the investment environment and provide legal support for businesses operating in the market. The event also heard reports on trade and investment opportunities in the two countries. Established in 1984, the Vietnamese Permanent Mission to the UN is tasked with promoting trade links between Viet Nam and Switzerland. VN to promote S Korea ties Viet Nam – South Korean economic co-operation has gained great achievements in the last 20 years, and it is expected to become even more significant in the next 20 years, delegates heard at a seminar held yesterday in HCM City. "The seminar is a chance to increase our economic co-operation as well as solve all challenges," Kim Heung Soo, deputy chairman of the Korean Chamber of Commerce and Industry in HCM City (KOCHAM), said during his opening speech. South Korea is the biggest foreign investor in Viet Nam with over US$43.4 billion investment, 4,000 companies and jobs for more than 1 million residents. Bilateral trade is over $30.3 billion. "South Korean enterprises have contributed to economic growth of HCM City with 1,152 projects, $3.9 billion in capital, 1,800 enterprises. There are also 80,000 Koreans living in the city," Tat Thanh Cang, deputy general secretary of the city's Party Committee and deputy chairman of the city People's Committee, said at the seminar. Nguyen Noi, deputy head of the Ministry of Planning and Investment's Foreign Investment Department, spoke about new policies for investment at the seminar. "Enterprise income tax will drop from 22 per cent to 20 per cent from early 2016 and to 17 per cent for those who will invest in difficult and remote areas or in some special fields for 10 years," he said. Foreign enterprises would receive lower income tax of 10 per cent in special cases. "Stable politics and social security, a high GDP growth rate, competitive human resources, more incentive policies, deep global integration, strategic location, cultural similarities, and strategic partnership agreements, as well as the up-coming Viet Nam – Korea free trade agreement are all reasons why the Korean enterprise community has invested in Viet Nam," he added. Bilateral trade between the two countries increased from $500 million in 1992 to $28.8 billion last year. South Korea is Viet Nam's third largest trade partner and fourth largest export market. "By 2020, bilateral trade between Viet Nam and South Korea is expected to be $70 billion and there will be full cooperation in industry," said Le Hai An, deputy head of the Ministry of Industry and Trade's Asia – Pacific Market Department. He noted that when the Viet Nam – Korea FTA comes into effect, Viet Nam would be able to expand its export market, increase competitiveness, improve effectiveness of raw material imports, and attract more investment from South Korea. The seminar was organised by KOCHAM in co-operation with the Ministry of Planning and Investment. VN, Belarus hold business forum The Viet Nam Chamber of Commerce and Industry and the Belarusian Chamber of Commerce and Industry organised a Viet Nam-Belarus Business Forum in Ha Noi yesterday to foster future partnerships. Chairman of the Belarusian Chamber of Commerce Belarus Mikhail Mialikov and over 30 businesses operating in agriculture machinery, mining equipment, automobile components, farm products, and beverage shared their high estimations of co-operation with Viet Nam. They expressed the hope that the affiliation between the business circles of the two countries will be strengthened, especially in their core areas. The forum updated Vietnamese and Belarus business people about the current policies and incentives on imports of the respective countries. It also enabled the participating businesses to seek long-term partnerships and investment opportunities. Hoang Quang Phong, vice chairman of the VCCI, commented that co-operation and investment between Viet Nam and Belarus is crucial at a time when commitments in the free trade agreement between Viet Nam and Russia, Kazakhstan, Belarus, and Armenia, along with Kyrgyzstan are implemented. Two-way trade between Viet Nam and Belarus in the first eight months of this year hit US$95.8 million. Viet Nam's exports to Belarus include aquatic products, wooden products, textiles, and footwear, in addition to rice, natural rubber, peanuts, and cashew. The other exports are tea, canned fruit and vegetables, pharmaceuticals and computers, while the imports are fertilisers, machinery, automobile spare parts, and trucks, apart from chemicals from Belarus. Belarusian President Aleksandr Grigorievich Lukashenko has been here for a state visit to Viet Nam to promote traditional friendship and multi-faceted links between the two countries. Regional trade fair starts The Cambodia-Laos-Viet Nam (CLV) triangle development region's trade and tourism fair 2015 opened in Champasac Province, southern Laos yesterday. The four-day fair is one of the events under the 10th conference CLV Joint Co-ordination Committee. Present at the opening ceremony were leaders of the provinces in the development triangle, ministries and business representatives from the three countries. The organising board said the fair was an opportunity for businesses from the three countries to exchange experiences, establishing relationship as well as seeking partners and investment. The event was also meaningful as the ASEAN Economic Community (AEC) would be established by the end of this year. The fair has attracted participation of 297 booths, showcasing famous consumer goods, traditional handicrafts and fine arts from the countries. In addition, the booths also provide information on the tourism potential of the three countries, especially in the triangular area of development. Viet Nam's Kon Tum, Dak Lak and Dak Nong provinces display their specialities of coffee, cashew and pepper. Employees key to making businesses succeed: forum Vietnamese businesses should focus on developing their human resources to become more competitive and capitalise on the opportunities from the Trans-Pacific Partnership, the 2015 Viet Nam HR Awards Forum heard in HCM City yesterday. Luong Hoang Thai, director general of the Ministry of Industry and Trade's Multilateral Trade Policy Department, said besides infrastructure shortcomings the country also faced limitations in terms of human resources, with labour productivity being very low. The country needed to focus on improving labour productivity and the quality of human resources, he said. Pham Phu Ngoc Trai, chairman of Global Integration Business Consultants, said local firms should understand their capability to make suitable business strategies of which human resource development strategies are an inseparable part. "More than 90 per cent of multinational companies have a career development road map for their human resources, while few local companies do so," he said. Pham Hong Hai, CEO of HSBC Viet Nam, said at many local companies, owners made decisions large and small. This posed a risk, he said, asking who would manage the company if something happens to the owner. Preparing the successor management team was very important, he said. "HSBC focuses on diversifying its human resources, using not only local workers but also foreigners, to improve its competitiveness and meet the demands of a wide range of customers," he said. Ngo Hung Phuong, CEO of CSC Viet Nam, said: "The TPP will create huge business opportunities not only in the domestic market but also abroad, and we must invest in advance to avail the opportunities." Investing in human resources is very important, he said. His company's strategy focuses on sectors such as next-generation technologies, cloud computing and cyber security, with the target markets being the US, Japan and Australia. Wilfred John Blackburn, CEO of Prudential Viet Nam, shared his company's experience in developing its human resource strategy, saying it has management trainee programmes, including internal training, that provide them opportunities to work overseas. "Each country is quite unique," he said, adding that his company applies different operational methods in each market. Phuong said industry and academia should co-operate to improve education quality. "There is fierce competition in attracting talent", especially in the IT sector, he said. To retain talent, apart from offering training and competitive salaries and benefits, companies would also need to offer a good working environment, he said. The forum, which attracted more than 300 delegates, saw senior executives compare notes on the importance of management and taking advantage of a variety of talents to become more competitive amid the integration. It was organised by HR consultancy Talentnet Corporation. Infrastructure improved in rural areas Infrastructure development was the outstanding achievement of the national new-style rural development programme, according to Minister of Agriculture and Rural Development Cao Duc Phat. Up to 75 per cent of rural area budgets and a majority of financial contributions by the public have gone into infrastructure projects under the programme, Minister Phat said at a review of the last five years of the programme in Ha Noi yesterday. Prime Minister Nguyen Tan Dung and National Assembly Chairman Nguyen Sinh Hung were in attendance to hear about the progress of transitioning Viet Nam's rural areas into more developed rural communities. Most of the participating localities devised their own unique commodity production development plans, the minister said, highlighting that 22,500 agro-forestry-fishery production models are now active across the country. Rural localities around Ha Noi, Ha Nam, Nam Dinh, Ninh Binh and Thanh Hoa successfully redesigned their transport and irrigation systems to pave the way for further mechanisation of farm work. The provinces of Thai Binh, Ha Tinh, An Giang, Hau Giang and Dong Thap raised the rate of farm mechanisation from 40-50 per cent to 80-90 per cent thanks to policies that supported the purchase of ploughing, mowing and drying machines. About 2,500 large-scale field models were set up in 43 provinces, covering 556,000 hectares, and many production chain models were formed in husbandry, aquaculture and forestry industries. Much of this development contributed to the 56.5 per cent of communes that were able to reach the programme's income targets and 85.5 per cent that met employment targets. Despite the fact that nearly 1.300 communes (14.5 per cent) and 11 districts nationwide are recognised as new-style rural areas to date, Minister Phat admitted the programme failed to achieve its target. According to Resolution 7 of the Party Central Committee, 20 per cent of communes were supposed to be recognised as meeting the standards by 2015. Phat said there was a big gap between the outcomes of localities and regions, citing the 34 per cent and 23.5 per cent of new-style areas recorded in the Southeastern and Red River Delta regions. In the northern mountainous and the Central Highlands localities the rates are closer to just 7 per cent. He said production development, agricultural restructuring, building cultural life in residential areas and environmental protection had not received due attention. For the new 2015-2020 targets, half of the communes nationwide are expected to meet all the requirements, and each province and centrally-run city should have at least one district recognised as new-style rural area. No communes should fulfill fewer than five criteria in the next period. To meet the targets, the minister stressed the need to increase communication work among officials and locals. He said production development and agricultural restructuring should accelerate, and scientific-technological advances and vocational training further applied. Speaking at the conference, NA Chairman Hung said that the results affirmed the rightness of a major Party and State policy. "The movement to build a new countryside is a profound revolutionary movement to mobilize the participation of the entire population. The ultimate goal is to build a new life and to give better care and benefits to farmers," Hung said. Addressing the conference, PM Dung praised the achievements but also stressed the limitations of the programme such as disparities between the criteria of different regions and moderate awareness of the programme's importance. The PM reiterated the new goal of recognising half of the country's communes as meeting new rural standards. He said local authorities and all Party committees should make this as a major political task. Rise in guest workers drives leap in HCM City remittances The total overseas remittances that Ho Chi Minh City will receive in 2015 is likely to jump 10% over last year to US$5.5 billion, according to a report of the Municipal People’s Committee. There is a strong correlation between the increase in the number of HCM City residents living and working abroad with remittances, the report concluded. Currently, there is an all-time high of 4.5 million residents residing in more than 100 countries around the globe, the report noted, with a record high half million guest workers working in Malaysia, Japan, Taiwan, and the Republic of Korea. Citing statistics from the Central Institute of Economic Management (CIEM), the report said overseas remittances to the city have grown more than 38% in the 24-year period 1991 to 2014. Mango exports to Japan surge high Vietnam’s mango exports to Japan have jumped high, said Nguyen Xuan Hong, head of the Plant Protection Department under the Ministry of Agriculture and Rural Development. Hong said the current export price of Vietnam mangoes is around US$8-10 per kilo, US$2-3 higher than Thai mangoes. Vietnam mangoes are very competitive and much sought after in Japan, Hong said. It took Vietnamese relevant agencies five years to complete necessary procedures to meet Japanese requirements, Hong revealed. BIM Group-Syrena Vietnam, PMC manage Green Bay Village BIM Group – Syrena Vietnam has officially signed a contract with Property & Management Company - Real Estate Services (PMC) to manage the project Green Bay Village. The village is a standard urban area model of a gated community in the group's integrated Halong Marina New Urban Area in Quang Ninh province. Green Bay Village offers 144 modern townhouses that provide an ideal living environment in terms of convenience and security in one of the busiest tourist cities in the country. A representative from BIM Group-Syrena Vietnam said the company has sought the most prestigious partners to manage the village in accordance with international standards. The representative expressed belief that PMC will support the operation of key projects in Ha Long Marina Urban Area effectively. A PMC representative said the company commits to building a civilized and sustainable community with a green and safe living space and a good environment. PMC is a professional property management service provider in the country and the world. PMC has been selected to be manager and consultant for high-end real estate projects such as Hoang Thanh Tower, Sky City, Dolphin Plaza, Mulberry Lane Ha Dong of Singapore’s Capital Land, or Hyundai Hillstate Ha Dong of the Republic of Korea (RoK)’s Huyndai RNC. Japanese firms hope to expand investment in Ha Nam, Thai Binh A delegation of Japanese agricultural companies led by Atsuke Kawada, Chief of the Japan External Trade Organisation (JETRO)’s office in Hanoi, went on a fact-finding tour to the northern provinces of Ha Nam and Thai Binh on December 8 to seek investment opportunities in the localities. During their meetings with the delegation, leaders of Ha Nam and Thai Binh affirmed that their localities want to attract more investment from Japanese firms, especially in agriculture – the key to fostering local economic development. Along with promoting the application of science and advanced technologies, Ha Nam is calling on Japanese firms to boost their investment and support for agriculture development, said Provincial Party Committee Secretary Mai Tien Dung. The local authorities give incentives for land and building infrastructure, aiming to encourage investment in the locality, he added. As many as 61 Japanese firms are investing in Ha Nam, including six operating in agriculture. They contribute 22% of the province’s total budget, Dung reported. Thai Binh Provincial People’s Committee Chairman Nguyen Hong Dien speaks at the working session with the Japanese delegation (Source: VNA) Japanese and Vietnamese businesses are seeing good results in a project on planting Japanese technology-based organic vegetables in Ly Nhan district. Meanwhile, Thai Binh Provincial People’s Committee Chairman Nguyen Hong Dien briefed Japanese guests on the locality’s strengths, including rice production, aquaculture and livestock. Thai Binh is encouraging investment in the development of animal-feed processing plants and large-scale breeding establishments, while boosting joint venture-oriented agricultural production, he stressed. Through its supportive, transparent policies, the province has committed to ensuring effective operation for enterprises, he affirmed. Speaking at the sessions, Atsuke Kawada said he appreciated the investment climate in the Vietnamese localities – especially assistance from local authorities for Japanese small- and medium-sized enterprises. Japanese firms are looking forward to stronger trade promotion activities between the two sides’ businesses, and greater facilitation from the provinces for Japanese firms’ operations. Vietnamese online retailers are crowded out by foreign company The e-commerce market in Vietnam is expanding rapidly but local investors are losing their share to foreign competitors with deeper pockets for expensive marketing campaigns. Figures from Vietnam E-commerce Association, which cited data from major delivery companies in the first nine months this year, showed that the number of online shopping orders has increased fivefold from the same period in 2014. Nguyen Dung, representative of the association in Ho Chi Minh City, said the market has a lot of growth opportunities as nearly half of the 90-million population is using the Internet. Major investors said online retail sales has expanded 10 to 15 times compared to five years ago. Reports from the trade and information ministries showed that e-commerce revenues reached US$2.97 billion or 2.12 percent of total retail sales in the country in 2014. The figure is expected to double this year. But surveys also suggested that investors need to spend a lot of money to promote their shopping websites. A survey by the e-commerce department at the trade ministry showed that many consumers are not confident about the products’ quality or comfortable with the online payment procedure. More than 80 percent of online shopping transactions still use cash to pay on delivery, it found. To win consumer confidence, online retailers need to be able to promote their platforms with big marketing campaigns and invest heavily in warehouse facilities. This is where foreign companies may have the upper hand. The biggest among 217 shopping sites in Vietnam in 2014 is Lazada, which had a 36% market share, according to the survey. Sendo of the Hanoi-based Internet firm FPT came second with 14.4%, while the third biggest company is Zalora of Rocket Internet, also the German owner of Lazada. Zalora is focused on apparel, compared to the Amazon-like model of its sister site. Nguyen Ngoc Diep, general director of Vietnam Price JSC, an e-commerce investor in Vietnam, said: "Foreign investors have seen the potential and they are pouring in money to take over the market." Diep said Vietnamese investors have lost in the competition as few of them could be able to raise US$10 or US$20 million. Nguyen Hoa Binh, board chairman of Peacesoft Group which manages various shopping sites in Vietnam, said the combined investment made by Vietnamese online retailers in the past decade was less than US$50 million, just half of what Rocket Internet has poured into Lazada in Vietnam the past three years. But Binh said local investors can survive if they manage to use their domestic strength, such as their ability to cooperate with each other or connect with local delivery services. “The competition will get tougher and without proper changes, local investors may have to scale back or shut down,” Binh said. Vietnam steel producer proceeds with giant mill despite oversupply worries A subsidiary of Hoa Sen Group, one of Vietnam's biggest steel producers, has acquired a license to develop a VND2 trillion (US$87.48 million) mill in the central province of Binh Dinh. Work on the factory of Hoa Sen Nhon Hoi-Binh Dinh Co., Ltd. is scheduled to start this month and complete in June 2017, with a designed capacity of 200,000 tons a year. Last month Hoa Sen Group along with another steel giant, Hoa Phat Group, were reported to be seeking to take over a multi-billion dollar steel project in the central province of Quang Ngai, after Taiwanese investors dropped it due to financial reasons. With their expansion plans, the giants have apparently stayed unaffected by the oversupply and cheap imports, which were believed to have driven many local producers to the verge of shutting down. In its recent plea for the government's help, the Vietnam Steel Association said local steel output is estimated 22 million tons a year with supplies of many products already doubling local demand. It urged relevant agencies to delay 27 steel plant projects. The association also sought the government's intervention in the increasing cheap imports from China, such as increasing tariffs. Vietnam imported 12.62 million tons of iron and steel in the first ten months, up 34% year on year and posting the revenues of US$6.28 billion, according to official figures. More than 61% of the imports were from from China. French beef and apple return to Vietnam French beef and apple have been shipped to Vietnam after a ban on the import of these products was lifted on May 1. At a press briefing in Hanoi on December 8, French Ambassador to Vietnam Jean-Noel Poirier said frozen beef is being sold in Vietnam and French businesses are planning the export of fresh beef to the country. We will also ask the Vietnamese Government to open door to kiwifruit, the ambassador said. Mr Poirier revealed that they will supply a certain volume of beef and apple in order to avoid price fluctuation. French beef is not too costly and just the same as of those from Australia and America. A representative from the French Food Industries Association (ANIA) asserted that the criteria and quality of French exported products all meet EU standards. France used to be a world’s leading beef exporter. However, it had to stop exporting beef due to the impact of Bovine Spongiform Encephalopathy (BSE) disease in 2000. The World Health Organisation (WHO) officially announced that France contained the BSE disease in 2008. Currently, French beef products are shipped to the EU, Brazil, the US, New Zealand and some ASEAN countries. In 2012, France exported 600 tonnes of apples to Vietnam, but after that it temporarily halted because of limited demand. VietJet to launch Can Tho-RoK flight A pilot flight between Can Tho and the Republic of Korea will be kicked off to mark the upcoming Lunar New Year festival (Tet) 2016. Vo Thi Hong Anh, vice chairwoman of Can Tho People’s Committee, said on December 7 that Can Tho has worked with VietJet on the issue. The first flight will possibly be conducted in early February next year. She urged relevant authorities from the two countries to create the best possible condition for the connection. Ms Anh said currently Can Tho International Airport only runs domestic flights to serve both domestic and foreign passengers. FLC approved to develop VND1.6 trillion resort in Quy Nhon The government of Binh Dinh Province has given the nod to FLC Group Joint Stock Company’s eco-resort project worth VND1.6 trillion (US$71.2 million) in Quy Nhon City. According to the Binh Dinh Investment Promotion Center, FLC has registered to invest in an international-standard resort called Eo Gio covering 21.5 hectares in Nhon Ly Commune. Scheduled for completion in 2017, phase one of the two-phase project will include the luxury resort and tourism-related services in Hon Seo area. FLC plans to implement phase two until October 2018. Eo Gio will be the second luxury resort invested by FLC Group in Binh Dinh Province. Earlier, the enterprise broke ground for a VND3.5-trillion resort, hotel, villa and entertainment complex on 300 hectares in the area of Nhon Ly Beach in Nhon Hoi Economic Zone. The investment promotion center said the complex would be put into service in April 2016. Besides FLC, the central province has attracted many real estate investors to tourism projects in recent times. Particularly, Vingroup is investing in Hai Giang tourism complex comprising a luxury hotel of 300 rooms, villas, entertainment center, golf course, restaurants and a cable car system measuring 1.5 kilometers in length. Meanwhile, Kim Cuc Investment and Construction Co. will develop a five-star hotel in Quy Nhon City. Good quality farm produce fails to find markets Despite continual food safety scandals, those farmers producing good quality produce are finding it difficult to find distributors and retailers for their output. Statistics from the Vietnam Business Forum showed that in 2014, Vietnam has 5,000 food poisoning cases. In the first nine months this year, 129 food poisoning cases were reported leaving 3,436 people needing medical treatment and a gigantic 20 fatalities. The Vietnam Food Administration reported that they fined 40 companies over VND675m (USD30,700) and withdrawn 11 food hygiene certificates as of October this year. Unofficial research has pointed out that 50 percent of fertilizer in Vietnam does not meet required standards or are fake. David Whitehead from Vietnam Business Forum said food hygiene could hinder the development of export industry and badly affect Vietnam's reputation. Due to lack of regulations, some banned substances in other countries are still used in Vietnam, he said. Meanwhile, farmers that apply Vietnam Good Agriculture Practices are struggling to find outlets. Seed To Table, a non-government Japanese organisation that supports farmers in Tan Lac District, Hoa Binh Province, with hygienic farming practices, said they couldn't find any regular buyers. Farmers in Lang Chau Bac Village, Quang Nam Province, also suffered since they had to spend more than usual to follow good farming practices while prices from wholesale buyers were too low. Many farmers chose to grow something else to offset the loss. An anonymous expert from the Institute of Policy and Strategy for Agriculture and Rural Development, said, "This remains a long-standing problem in Vietnam. We lack a cohesive link between the government to the scientists, farmers and companies. The farmers keep producing food while there's no good distribution system to reach consumers. Consumer trust has also fallen as unscrupulous distributors mix good quality produce in with below-standard goods." He went on to say that in order to reach consumers, farmers need to co-operate with each other to increase their quantity and improve their farming practices to reduce prices. November automobile sale revenue hikes up 86 percent Vietnam’s automobile sales in November revved up by 86 percent from the same period last year and 33 percent from October, amounting to 29,706 units, the Vietnam Automobile Manufacturers Association (VAMA) announced on December 9. During the month, the number of passenger cars sold shot up 42 percent against October to 18,611 vehicles. Commercial cars increased 18.4 percent to 9,723 units and special-purpose cars sales escalated 31.2 percent to 1,372 units. They were sold by both VAMA members and completely-built-up (CBU) non-VAMA-member car importers. The sales of domestically assembled cars over the month stood at 17,129 units, 7.6 percent lower than October. In a stark contrast, the industry recorded a 95 percent rise in the purchase of CBU imported cars – 12,577 vehicles. By the end of November, auto turnover surged 57 percent compared with the same period last year. The sales of passenger cars, commercial cars and special-purpose cars rose 45 percent, 73 percent and 109 percent, respectively. Also in the 11-month period, 154,257 domestically assembled cars and 61,260 imported cars were sold, up 50 percent and 78 percent yearly. Mekong Delta asked to develop urban areas adaptive to climate change The Mekong Delta region should develop urban areas that are adaptive to climate change, while intensifying access to official development assistance (ODA) used to respond to this phenomenon, experts suggested. Sea level rises, caused by climate change, have increased flooding in the region – especially in urban areas. Flood levels in An Giang province’s Tan Chau town in 2011 were 20cm lower than in 2000, while the level in Can Tho in 2011 was 20cm higher than in 2000. Luu Duc Cuong, Deputy Head of the Vietnam Institute for Urban and Rural Planning under the Ministry of Construction, warned that the region’s average sea level will increase by 23 to 27cm by 2050, and 59 to 75cm by 2100. At that time, more than 3 million hectares of land in the region will be submerged more than 0.5m under water, of which 2.4 million hectares, accounting for 60 percent of the region’s total area, will be more than 1m under water. Can Tho and its neighbouring Vinh Long province will be affected the most. According to Cuong, during the rainy season the Mekong Delta’s urban areas face difficulties draining all the water. He suggested the region reduce its concentrated development. It should build reservoirs, canals and pipelines connecting to big reservoirs and dykes to prevent flooding. Nguyen Hong Thuc from the Research Institute for Settlements stressed that as the nation’s strongest agro-fishery and forestry region, the Mekong Delta should classify and develop agricultural urban areas, including urban fishery areas, urban agricultural services areas, urban forestry areas and urban sea and island areas. It is essential for the region to develop smart areas in order to respond effectively to climate change, the official said. Meanwhile, Pham Quoc Viet, Deputy Head of the Economic Department under the Steering Committee for the Southwestern Region, suggested the Mekong Delta prioritise addressing regional, inter-regional and cross-sector issues in its socio-economic development plans. He asked for intensified connectivity between localities in urban development to proactively respond to climate change, as well as their appropriate use of natural resources in urban planning. The Mekong Delta contributes roughly 50 percent of the country’s total food output and over 90 percent of rice exports every year. Aquaculture accounts for over 60 percent of output and 80 percent of export, while the livestock industry brings the country 1.5 to 2 billion USD per year. TMV sales continue upwards Toyota Motor Vietnam (TMV) has announced that sales reached 4,419 units in November, an increase of 6 per cent compared to November 2014. In the first eleven months of the year sales stood at 44,935 units, 24 per cent (8,785 units) higher year-on-year. The north of the country saw 1,869 units sold, accounting for 42 per cent, the central region 664 units, or 15 per cent, and the south 1,886 units, or 43 per cent. In November sales in the passenger cars segment were 2,275 units, in which the all-new Vios led the way with 1,257 units, an increase of 41 per cent compared with November last year. Following were the Camry 2015, with sales of 410, and the Corolla Altis, with 387. Sales in the commercial vehicle segment reached 2,144 units, of which the Fortuner was the most popular, with 877 units sold, and the Innova 854 units. The all new Hilux 2015, which was introduced in early October, was the leading model imported and distributed by TMV. It is expected to open up a new era for pickups with its tough design and SUV-like driving comfort and advanced safety features. FPT & Fujitsu finish smart vegetable project FPT and Fujitsu have announced the official completion of their FPT-Fujitsu Akisai Farm and Vegetable Factory project, which applies cloud computing technology with the aim of developing a smart agricultural model in Vietnam. This is the initial step within a framework of cooperative projects in smart agriculture signed by the two corporations at the end of 2014. The project is also the first time an information technology solution in agriculture from Japan has been applied in Vietnam. With an area of over 400 sq m in Gia Lam district, Hanoi, the project will introduce new business models from Fujitsu and the application of its modern technology, knowledge, and experience in Vietnam’s agricultural sector. There are two models involved - a greenhouse and a vegetable area trialing the introduction of high-value vegetables. Information and images about the environment and the growing area are monitored and managed not only in Vietnam but also in Japan, through online information technology systems. A representative from FPT told VET that the group and Fujitsu will use the project as a location to promote smart agriculture co-creation activities, involving the Vietnamese Government and companies from a variety of industries, and to contribute to the further development of Vietnam’s agriculture sector. The group is Vietnam’s leading information and communications technology (ICT) company, with more than 25,000 employees in 19 countries worldwide. After 27 years of operations it has provided IT infrastructure that has contributed to the success of most of the country’s key economic and social sectors, such as public services, banking and finance, telecommunications, transportation, healthcare, and education. Fujitsu is Japan’s leading ICT company, offering a full range of technology products, solutions, and services. Approximately 159,000 Fujitsu people support customers in more than 100 countries. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR