BUSINESS IN BRIEF 17/2 US$1 billion spent on unprocessed seafood imports last year   Vietnam spent over US$1 billion importing unprocessed seafood to turn out products for export last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Quoting data of the General Department of Customs, VASEP said last year’s import of unprocessed seafood inched up by 0.5% in value compared to 2014 though the nation saw outbound seafood sales declining. Shrimp import amounted to US$426 million, accounting for 40% of total seafood import value but dropping around 11% from 2014. Tuna import totaled US$215 million, making up 20% and rising by 15% while fish import stood at US$283 million, up 12%. According to VASEP, domestic firms mostly imported fresh and frozen seafood for export processing. They bought shrimp from 37 markets, with white-legged and tiger shrimp representing 65.9% and 20.3% of total shrimp imports respectively. Explaining the huge spending on seafood imports, the director of a seafood exporting firm in the Mekong Delta said that as prices of seafood materials in Vietnam were higher than in other markets, local firms had to count on imports to raise competitiveness and maintain export growth. Last year, India was Vietnam’s biggest supplier of shrimp, accounting for a hefty 74.7% of total shrimp imports. In 2016, VASEP forecast local enterprises would have more opportunities to step up shrimp exports to key markets thanks to new free trade agreements. Therefore, total shrimp import is put at US$470 million this year, up 10% against 2015. Last year, Vietnam fetched US$6.57 billion in seafood revenue, down 16.1% from 2014, due to falling export prices, weaker demand in importing countries and tougher competition. Caution over post-Tet trading advised As the local stock market moved flat on the last trading day before the market was closed for the Lunar New Year holiday, securities firms called for investors to practice prudence on the first post-Tet sessions to avoid risks. FPT Securities Company in a report said that many listed enterprises will announce earnings results in the last quarter of 2015 and all of last year after the long holiday. Therefore, market turnover is expected to improve. Investors are advised to focus on stocks with promising business growth in 2015 or benefiting from macro improvements to secure safety after the longest holiday in Vietnam, the brokerage firm said. Saigon-Hanoi Securities Company said on Dau Tu Chung Khoan newspaper that foreigners returned to the buying side in the last session before Tet, helping buoy investor sentiment. Besides, the signing of the Trans-Pacific Partnership (TPP) was a strong supportive factor. The market saw little volatility before the long holiday amid unpredictable developments of the world oil price and China’s economy. Therefore, investors should keep a close watch on market developments in the coming sessions. According to Viet Capital Securities Company (VCSC), the market succumbed to negative global sentiment in January. The VN-Index fell sharply in the opening weeks, which was in line with the global rout in equity markets as investors fretted over China’s declining fundamentals and the seemingly bottomless slide in crude oil prices which fell below US$30 per barrel. Vietnamese equities then staged a late recovery as some positive company earnings results started trickling in and oil and gas stocks started recovering on the back of compelling valuations and a recovery in oil prices. Aside from the energy sector, several companies reported strong earnings growth in the last quarter of 2015. Despite strong earnings growth announcements, January saw a total of US$54 million worth of net foreign capital flowing out of Vietnamese equities. This was mostly a reflection of increasing risk-aversion amid a slowing global economy and souring views on China’s prospects which sparked a run on riskier assets. Blue-chips like VIC saw huge foreign selling while foreigners also dumped banks despite VCB’s announcing strong fourth-quarter earnings and evidence of strong continued system-wide credit growth of 17-18%. BID’s exposure to Hoang Anh Gia Lai Company (HAG) left some impact on the banking sector. “Overall, with valuations failing to keep up with earnings across sectors, we saw Vietnam’s discount to regional peers widen. We view January’s poor performance as an anomaly and our view for the market performance as a whole in 2016 remains unchanged,” the report said. Official urges competitive markets to foster growth Vietnam should further nurture competitive markets to help fuel economic growth this year, said Vuong Dinh Hue, head of the Party Central Committee’s Economic Commission. Speaking to the Government’s portal chinhphu.vn, Hue took stock of the nation’s economic performance, highlighting high GDP growth (over 6.5%), industrial production recovery, improved aggregate demand. These achievements resulted from the positive impacts of the amended investment and enterprise laws and the new free trade agreements (FTA) which the country has signed. The Government has taken bold steps to improve the business and investment environment, especially in the fields of taxation, customs and energy access. The nation also accelerated international integration by signing more bilateral and multilateral FTAs including the Trans-Pacific Partnership (TPP) and joining the ASEAN Economic Community (AEC). This year, the Government is expected to quicken economic model change, restructuring of State-owned enterprises (SOEs) and the banking sector, and settlement of bad debt. More measures have been taken to put SOE equitization and State capital divestments on fast track. However, Hue said, the goals for capital divestment and SOE equitization have not been realized. The debt trading market is still underdeveloped while the capability of Vietnam Asset Management Company (VAMC) is limited. Hue said the Government needs to develop an efficient debt trading market to better deal with bad debt. “Leaders of some international financial groups have told me they are willing to buy Vietnamese bonds but a few of them want to acquire 10- or 15-year bonds…,” Hue said. Last year the Government issued regulations governing development of a State-controlled derivatives market, which will not only serve bond trading via banks but also help attract capital from other financial institutions, investment funds, hedge funds and pension funds. Baoviet Fund licensed to sell bond fund certificates Bao Viet Fund Management Co Ltd (Baoviet Fund) has got approval from the State Securities Commission of Vietnam to sell fund certificates of Bao Viet Bond Open Ended Fund (BVBF) in the coming time. The second open-ended fund of Baoviet Fund was established to bank on fixed interest rates. Dau Minh Lam, general director of Baoviet Fund, said BVBF will focus on Government bonds, government-guaranteed bonds, corporate bonds, deposits and legitimate investment assets. BVBF will target individual investors and those who have little chance of investing in government and corporate bonds. The domestic market has 17 open-ended funds -- four bond funds, four balanced funds and nine equity funds. BVBF is the fifth bond fund on the market after VFF (Vinawealth), MBBF (MB Cap), VFMVFB (Vinafund) and TCBF (Techcom Cap). The funds had total net asset value of around VND2.1 trillion (US$93.7 million) as of end-2015, with four bond funds accounting for VND349 billion, or 16.6% of the total. Their operation efficiency is average and equivalent to deposit rates -- VFF with 6.7%, MBBF with 5.54% and VFMVFB with 6.32%. Lam said Baoviet Fund will launch a program to introduce and sell BVBF fund certificates to institutional and individual investors via distribution networks of the enterprise, Bao Viet Securities Company and others. Investors who have a minimum of VND1 million can acquire fund certificates and get other incentives. Baoviet Fund looks to mobilize at least VND50 billion in the initial stage. Baoviet Fund is a member of Bao Viet Holdings with total assets worth over VND31 trillion under its management. It is one of the leading companies on the local market in terms of asset management portfolio. Hoa Binh to develop innovation center at SHTP Hoa Binh Construction and Real Estate Corporation has got an investment license to build an innovation center at Saigon Hi-Tech Park (SHTP) in HCMC’s District 9. Le Viet Hai, chairman and general director of Hoa Binh, said the 16-storey Hoa Binh Innovation Center will cover more than 2.45 hectares at the scientific section at SHTP and cost VND750 billion (US$33.6 million). Hai said the center will meet standards of the U.S Leadership in Energy & Environmental Design (LEED), and become a place for science-technology creativity. It is expected to attract many investors, firms and scientists in the high-tech sector. The center will have an incubator for research, development, innovation and technological transfer in Vietnam and Southeast Asia as a whole. The center will promote cooperation among scientists, experts, researchers, investors and tertiary students to work toward scientific breakthroughs with financial support of investment funds and tech outfits. The center will focus on research and development of new technologies, information technology, biotechnology, pharmaceuticals, construction technology and industrial automation. Hoa Binh said it has taken the company two to three years to prepare for the project in collaboration with tech firms from the U.S, Japan, and Canada and overseas Vietnamese intellectuals. Hai told the Daily that Hoa Binh was planning to call for international investors and investment funds to develop the Hoa Binh Innovation Center, which is scheduled to be up and running in 2018. Le Hoai Quoc, head of the SHTP Authority, said that if Hoa Binh translated the center into reality, SHTP would ask the Ministry of Science and Technology for a slew of incentives for the company, including land use fee exemption for the project. Nguyen Thi Minh Thu, head of the investment promotion and international cooperation department of SHTP, said the scientific section at the park has attracted eight investors and Hoa Binh is the first domestic private business to develop an incubation facility for high-tech companies at SHTP. The 93-hectare scientific section is located in the center of SHTP. It plays an important role in science-technology research and development at SHTP and makes it different from other industrial parks in the city. Online retail sales projected at US$10 billion by 2020 The Vietnam E-commerce Association (VECOM) has projected the nation’s online retail sales would amount to US$10 billion by 2020, accounting for 5% of total retail revenue.   E-commerce has steadily grown over the past years, with online sales reaching US$4 billion last year. Nguyen Thanh Hung, vice chairman and general secretary of VECOM, said the e-commerce sector was in its infancy in 2006-2015. The sector now has more favorable conditions in terms of human resources, technology and legal framework to enter the next stage of development. Hung said the e-commerce sector is expected to expand by over 30% annually from 2016 to 2020 and probably 2025. Hung quoted a study by Ken Research as saying that online retail sales in Vietnam would rise to US$7.5 billion by 2019. Based on a 2016-2020 master zoning plan for the sector sent to the Prime Minister and the Ministry of Industry and Trade, VECOM predicted online retail sales would total US$10 billion by 2020. The association said the Government plays a pivotal role in the development of e-commerce and should issue proper policies to boost manpower, e-payment and tax collections from individuals and cross-border online transactions. According to VECOM, more transactions and business models will lead to an upsurge in disputes. Management and market monitoring agencies, associations for consumer protection, arbitration organizations and courts should enhance their capacity of building and executing regulations.     VECOM and businesses said to fuel growth in the e-commerce sector, relevant agencies and firms must join hands to support the sector in other localities in addition to Hanoi and HCMC. These two biggest cities of the nation took the lead in the Vietnam E-commerce Index 2015. Tran Trong Tuyen, chief executive officer of DKT Technology JSC, said Hanoi and HCMC hold 75% market share and that e-commerce will grow by three to five times in the coming years if it develops well in other localities. Online sales of retail firms will jump accordingly. DKT Technology has the online shopping platform bizweb.vn for around 15,000 companies in Vietnam.    Tuyen said half of over 90 million Vietnamese use the Internet, so Vietnam holds huge growth potential. He said DKT Technology has plans to back e-commerce growth in other localities by supporting around 100 businesses in each locality to efficiently apply e-commerce on bizweb.vn. VND5.9 trillion for Hai Van tunnel expansion project Deo Ca Investment Joint Stock Company will expand the existing tunnel under Hai Van Pass in central Vietnam to four lanes at a total cost of around VND5.9 trillion (US$264 million). The company said local lender VietinBank has clinched an agreement to finance the Hai Van Pass tunnel expansion as part of phase two of the tunnel project. VietinBank will provide VND4.18 trillion for Deo Ca Investment Joint Stock Company to carry out the second phase of the project. The company was picked to implement the Hai Van Pass tunnel project under the BOT (build-operate-transfer) form with a total investment of VND7.3 trillion (US$326.8 million), including VND1.4 trillion for phase one and VND5.9 trillion for phase two. Work on phase two of the tunnel project is scheduled to begin in May this year and be completed in the first quarter of 2020. Deo Ca Investment Joint Stock Company is also the investor of Ca Pass and Cu Mong tunnels. As scheduled, Ca Pass tunnel will be opened to traffic in 2017 while Cu Mong tunnel will be up and running in 2018. After completing Ca Pass tunnel, Cu Mong tunnel, and expansion of Hai Van Pass tunnel projects, the investor will collect tolls at seven stations on National Highway 1A. Prime Group likely to turn all Thai-owned Thailand’s SCG, the owner of an 85% stake in Prime Group, plans to acquire the remaining 15% to make the major ceramic tile maker in Vietnam a 100% Thai-owned concern. According to The Nation newspaper, SCG’s board of directors has approved a proposal to buy the 15% stake in Prime Group at a cost of 2.19 billion baht (US$61.2 million). If the deal is inked, SCG will have full control of Prime Group. In December 2012, the Thai giant acquired 85% of Prime Group shares for 7.2 billion baht (about US$240 million) to become the world’s biggest ceramic tile manufacturer. Prime Group earned sales revenue of 8.3 billion baht in fiscal 2015, according to The Nation. Kan Trakulhoon, president and chief executive officer (CEO) of SCG, said earlier that the corporation will invest further in Vietnam and focus more on acquiring local businesses to expand operations here. In July last year, SCG bought an 80% stake at Tin Thanh Packing JSC (Batico) in a bid to expand business and consolidate its position as one of the leading suppliers of packaging paper in ASEAN. According to SCG’s financial report on last year’s fourth quarter, SCG Vietnam had total assets of over VND16.6 trillion (US$737 million), up 17% year-on-year. SCG’s sales in Vietnam amounted to VND14.1 trillion (US$638 million) in fiscal 2015, a rise of 7% from a year earlier. The leading Thai conglomerate wants to push for its US$4.5-billion integrated petrochemical complex in Vietnam’s Ba Ria-Vung Tau Province despite the recent withdrawal of Qatar Petroleum, one of the four key partners in the project, dubbed as Long Son Petrochemicals. SCG is active in various fields, mainly cement-building materials, petrochemicals and packaging, and has over 200 subsidiaries and 52,500 employees. The corporation entered Vietnam in 1992, focusing on the three major sectors. At present, SCG has 22 subsidiaries with more than 6,900 local employees. Banks looking to hire more in ‘16 Domestic commercial banks plan to recruit thousands of employees this year to boost development and seize new opportunities, business news website cafef.vn reported. After recruiting more than 2,100 personnel last year, Sacombank said its recruitment demand this year would be roughly 2,500 employees to replace personnel who have retired and to supplement the sales force. A representative of Sacombank said the bank would focus mainly on employees those who directly deal with individual and business customers, besides consultants and those involved in transactions such as tellers. Pham Phu Cong, recruitment director of the human resources management division at Techcombank, said the bank recruited 1,850 personnel annually, of whom 65 per cent were new graduates, while the rest were middle managers with experience. The majority of new recruits are assigned to the sales department and customer care services that are given special attention by the bank to provide the best customer services. Smaller banks also do not miss these development opportunities. An ABBank representative said the bank hired more than 200 employees every year, but it would need nearly 400 new recruits for its branches and headquarters in 2016. This is good news for the banking system as many banks have been forced to cut thousands of jobs in the past few years, except in 2015, due to the economic slowdown and to meet the central bank's restructuring programme. In the past four years of implementing the restructuring programme of credit institutions, banks have had to do comprehensive restructuring, including about personnel. Reports about cuts in salary, allowances and personnel in 2013 and 2014 has been mentioned repeatedly, with several banks such as Maritime Bank, ACB, Techcombank and Eximbank being forced to dismiss hundreds or even thousands of personnel. The number of banks was also cut from 42 to 34 during the period. The situation has improved since 2015. A survey, conducted by the Department of Monetary Forecast and Statistics under the State Bank of Vietnam in Q4/2015, shows that more than half of the credit institutions increased their staff numbers in 2015, as compared with 2014. As reported by banks, several banks such as VPBank, MB, Vietinbank and Sacombank recruited about 1,000 people last year. Banks such as ACB and Techcombank that cut personnel heavily in the previous years also claimed to recruit again. Thanks to last year's growth, the labour demand of the credit institutions is also expected to increase this year. According to the 2015 survey, 64.2 per cent of the institutions said they would recruit more people in 2016, with 50 per cent saying the recruitment would be made right in the first quarter to allow them to seize new opportunities. Local rice consumption grows State and local rice firms should pay attention to developing domestic rice markets, as they have a great potential in the overall selling of rice, said experts. Viet Nam produces 20 to 21 million tonnes of rice each year. Of this rice, 8 to 9 million tonnes are annually exported, based upon signed contracts. The remaining rice is purchased by domestic consumers, according to the Viet Nam Food Association. However, rice enterprises have not paid attention to domestic rice markets, where there is a high demand, choosing instead to focus on exports. In 2008, two centres for distributing rice for local consumption were built in HCM City and Can Tho City to stabilise domestic rice prices. Also, several retail shops selling rice were opened for local consumers. But these shops faced many difficulties in selling rice and even had losses, the association said, because enterprises trading rice on the domestic market must pay a 5 per cent value added tax (VAT), resulting in the prices for their rice being higher than rice sold by household businesses that do not pay VAT. Therefore, to assure there being profits in selling rice on the local market, rice firms have had to sell high-grade rice at higher prices to those consumers with larger incomes. In addition, firms must compete with household businesses in services involved in selling rice, the association said. The household businesses have had flexibility in distributing rice and provided a high level of services, even to rural and remote areas, while firms have distribution systems in both cities and towns. Truong Thanh Phong, former chairman of the association, said the association had repeatedly proposed to the Government that they abolish the VAT paid by rice firms. But the Ministry of Finance has objected, causing rice firms to ignore local rice markets. Meanwhile, in rural areas, people continue to hold back rice for their own consumption after harvesting, while selling the remaining rice to enterprises, he said. He hopes that in the coming 5 to 10 years, living standards in rural areas will have improved and small rice mills will be closed. The people in rural areas might then sell all their rice after harvesting, and then purchase rice for daily use. If this occurs, local rice markets will have more opportunities to further develop, he said. For the development of local rice markets, the VAT must be abolished and convenient and flexible distribution systems from rice enterprises must be put in place, he said. Investors return from Tet eyeing crude Vietnamese exchanges will likely extend gains this week after remaining closed during Tet, as investor confidence may rise on strongly rebounding oil prices and a weaker US dollar against the Vietnamese dong. On Friday of the final trading week before Tet, the benchmark VN Index on the HCM Stock Exchange gained 0.5 per cent to close at 544.75 points, down 0.1 per cent from the previous Friday. The southern index rose 1.5 per cent during the last three sessions. Meanwhile, the HNX Index on the Ha Noi Stock Exchange added 0.8 per cent to end at 76.90 points, a 0.04 per cent increase from the previous week's finish. Further, the northern index had risen 1.5 per cent in the last two trading days. Crude prices will remain a decisive factor this week as they have shown strong volatility during the last two weeks, especially after the Organisation of Petroleum Exporting Countries (OPEC) on Friday indicated its willingness to work with non-OPEC producers to cut their production output in a bid to boost trading prices. That willingness helped oil prices surge on global trading markets. US benchmark crude West Texas Intermediate (WTI) jumped 12.3 per cent from its twelve-year low of US$26.21 per barrel, reaching $29.44 per barrel on Thursday, while the London-traded Brent crude surged 11 per cent to close at $33.36 per barrel. However, analysts have doubts about an agreement between OPEC and its competitors, which have resulted in volatile crude prices that have seen the WTI plunge 12.4 per cent since the end of January and Brent crude prices fall 4 per cent during the same period. Unstable global oil prices also helped pull down local energy stocks. PetroVietnam Gas Corporation (GAS) lost 3.1 per cent in the latest trading week, PetroVietnam Drilling and Well Services Corporation (PVD) fell 3 per cent, and PetroVietnam Mud Drilling Corporation (PVC) dropped 4.3 per cent. In addition, foreign exchange rates between the Vietnamese dong and the US dollar may help boost the market, as the dollar became weaker against the dong in final trading sessions. On the last Friday before Tet, Viet Nam's central bank cut its reference mid-point rate for its exchange trading band by VND15 to trade at VND21,861 per dollar. Further, the mid-point rate declined by VND58 from its high of VND21,919 per dollar hit early last month. A weaker US dollar against the Vietnamese dong may help local importers, such as plastic manufacturers, reduce their expenses to import materials from overseas suppliers for production. Those companies included Binh Minh Plastic JSC (BMP), Tien Phong Plastic JSC (NTP) and Rang Dong Plastic JSC (RDP), which gained 0.8 per cent, 0.9 per cent and 8.3 per cent during the last trading week. Higher investor confidence may also help large-cap stocks improve, such as banks, insurers, as well as food and beverage producers. Those firms include Vietcombank (VCB), the Bank for Investment and Development of Viet Nam (BID), insurer Bao Viet Holdings (BVH), dairy firm Vinamilk (VNM) and food producer Masan Group (MSN). Improved investor confidence is also expected to bolster market liquidity, which dropped on a regular basis during the last week before Tet as investors held onto their cash and did not make further investments in stocks. During the final trading week, an average 114 million shares were traded each session, worth VND1.6 trillion ($70.5 million), a decrease of one-third in both trading volume and trading value from January's last trading week. TPP to bolster agriculture export opportunities Swift ratification of the Trans Pacific Partnership (TPP) will help create new export opportunities for agriculture and enhance the industry’s contribution to the national economy, says the Ministry of Agriculture and Rural Development (MARD). After the TPP’s signing, MARD Deputy Minister Ha Cong Tuan said the trade deal has the potential to create long term benefits for Vietnamese farmers, particularly in markets like the US, Canada, Mexico and Peru. Deputy Minister Tuan said MARD recognized the TPP signing achievement but stressed it was now “critical the next steps be taken post-haste” and the agreement ratified by each Pacific Rim nation. “What we need is for the benefits of this agreement and its potential to bolster Vietnam’s export opportunities and the broader economy to be realized,” said Tuan and for the ratification process not to get bogged down in politics. When the agreement is ratified and given effect, it will help Vietnam reduce dependence on certain markets, such as the Chinese market, and become more flexible in its import-export activities. Secondly, we are confident the agreement will provide expanded markets for Vietnam’s key farm produce exports by allowing them to be more price competitive in major national and regional markets around the globe. There is no guarantee, but we are hopeful the trade pact will in turn help attract badly needed investment in the industry to facilitate installation of modern machinery, equipment and technologies into the antiquated systems that are now all too common. Tuan stressed the signing of the TPP is a milestone for Vietnamese agriculture and a comprehensive and liberalizing agreement for the Vietnamese community. “We now urge all those involved in the ratification process to ensure the agreement is promptly approved so that our industry and the broader economy can reap the benefits of increased global market opportunities,” said Tuan. “The TPP is a monumental agreement for farmers and producers in the nation’s agriculture industry and the earlier it is ratified the sooner we can unlock the benefits of increased international trade.” Nguyen Do Anh Tuan, director of the Institute of Policy and Strategy for Agriculture and Rural Development agrees with the assertion Vietnam will gain some competitive advantages in agriculture from the TPP. “The biggest benefit is the opening up of foreign markets, particularly the US and Japan markets, which should provide a tremendous boost to farm produce exports in the coming time”, said Tuan. However, there is little doubt that agriculture won’t be able to compete, at least initially with other nations said Tuan, specifically mentioning the inability to compete with the US and Canada (pork and chicken) and with, Australia and New Zealand (beef and milk products). Lastly, Dr Nguyen Ngoc Tien from Quy Nhon University emphasized the need for agriculture to improve the quality of farm produce to meet the strict requirements of major markets such as the US and Japan. “To do so, the government in concert with academia and non-governmental organizations should focus on research activities to create higher-yield varieties of agricultural produce taking into consideration the conditions of each region”, Tien underscored. France’s Casino Group has yet to sell Big C Vietnam: representative French mass retailer Casino Group is only in the initial phase of transferring its supermarket chain in Vietnam, according to a Big C Vietnam representative. The representative denied on Friday recent reports that Casino Group has finished selling Big C Vietnam to a new owner, adding that the group is still looking for a suitable partner for its business in the country. Since its announcement on December 15, 2015 that Casino Group is seeking a new owner for its business activities in minor markets, the group has only agreed to pass on its controlling stake, which accounts for 58.6 percent, in Thai Big C to Thai Charoen Corporation Group (TCC), one of Thailand’s leading corporations, the representative toldTuoi Tre (Youth) newspaper. The transaction, which was worth US$3.5 billion, was made during an auction on February 5 and is expected to be completed before the end of March, the representative added. The decision to sell Big C Vietnam has been welcomed by several investors, including Singaporean retailer Dairy Farm International Holdings, South Korea’s Lotte Shopping, and Japanese retail corporate group AEON, according to a Reuters source. Big C is among several major foreign retailers who took up an early presence in Vietnam and is a big competitor in the country’s retail sector. There are now 32 Big C outlets across Vietnam, with eight in Ho Chi Minh City. On December 15, Casino Group issued a memorandum stating that it may seek a new owner for its supermarket chain Big C in Vietnam, as the company plans to strengthen its financial flexibility by selling assets in the country, as well as Thailand and Colombia. In multiple annual reports, the French retailer has assessed Vietnam as a market with high potential for growth in the future, once the economic slowdown is over and consumption begins to grow again. However, given the minor contribution of Big C Vietnam and the small market size, especially compared to neighboring country Thailand, the chain is now on the priority list to change hands. Binh Dinh gets $94m investment via hotel projects The central coastal province of Binh Dinh's people's committee granted investment licences to four hotel projects in January, involving capital amounting to VND2.1 trillion (US$94 million). A conner of Binh Dinh's Quy Nhon City. The central coastal province has granted investment licences to four hotel projects in January. - Photo dulichbinhdinh.com.vn According to the provincial Investment Promotion Centre, Fagros Construction Investment JSC has been allowed to start the construction of Quy Nhon Hotel FLC trade centre-luxury hotel complex, covering more than 17,300sq.m in an urban-trading service area in An Duong Vuong Street in Quy Nhon City's Nguyen Van Cu Ward. It comprises a five-star hotel of international standards, a business centre and a saltwater swimming pool, with a total investment capital of VND800 billion ($35.7 million). The second project belongs to Binh Dinh Minerals Co (BMC), comprising a 15-storey four-star hotel and service complex, also being built in the urban-trading service area in An Duong Vuong Street. The project is expected to be spread over 9600sq.m with an investment capital of VND500 billion ($22.3 million). It is expected to be complete in two to three years. In addition, Anh Vy Company was granted a licence to conduct surveys and research on a project consisting of a four-star hotel, a trade centre and a luxury service complex, covering nearly 200ha at 35, Nguyen Hue Street, with an estimated capital of VND300 billion ($13.4 million). Earlier, the province permitted Kien Hoang Construction Investment Co., Ltd to invest in five-star Xuan Dieu Hotel project at Hai Cang District. The Xuan Dieu hotel will cover more than 3,400sq.m, comprising 198 rooms, with a total investment of nearly VND500 billion ($22.3 million). The project construction will begin in the first quarter of 2016 and the hotel will become operational in the fourth quarter of 2017. HNX sells 109.9m shares from State-owned enterprises' divestment The Ha Noi stock exchange (HNX) successfully sold shares from the State-owned enterprises' divestment, worth more than VND1.5 trillion (US$67.9 million), in January. It's reported that seven auctions were held during the month, and 109.9 million out of the total 116.8 million shares were purchased. In particular, the Ministry of Transport successfully sold 85.5 million shares in the Viet Nam Motor Industry Corporation Joint Stock Company, earning VND1.25 trillion ($55.9 million) on January 11. The HNX plans to hold four auctions this month to sell shares of Ha Noi May 19th Textile One Member Limited Company and Thanh Hoa Water Supply Limited Company. HBC pours investment into hi-tech project Sai Gon Hi-Tech Park's management board has granted an investment licence to Hoa Binh Construction and Real Estate Corporation (HBC) for a total investment of VND750 billion (US$33.5 million). The project, Hoa Binh Innovation Center, is a 16-storey building, covering an area of 2.5ha in Sai Gon Hi-Tech Park in HCM City. When completed, the project will specialise in research and in developing information technology, biotechnology, pharmaceuticals, construction and the automobile industry. It is expected to start construction this year and will be completed in the first quarter of 2018. HBC Chairman and CEO Le Viet Hai said Hoa Binh Innovation Center would become a center of advanced science and technology, not only nationally but also regionally, attracting high-tech enterprises, international investors and scientists. The centre will also provide training courses for young, enthusiastic entrepreneurs in innovation, technology transfer and research and development. Great strides thanks to economic integration Signing the Bilateral Trade Agreement [with the US] and the Trans-Pacific Partnership and joining the World Trade Organization were evidences of Viet Nam’s deep integration into the global economy. The 6tth meeting of the leaders of TPP members at the Sofitel Hotel, Manila, Republic of the Philippines These milestones have contributed to advancing economic development and helped the country to make significant progress in reforming institutions and improving transparency and competitiveness. Before 1995, Viet Nam was known as a tiny but unyielding country during resistance wars, not a country with economic potential. However, the introduction of the Viet Nam-US Bilateral Trade Agreement in July 2000 was considered as a manifesto to the world that Viet Nam not only normalized its relations with the US but also officially opened its economy to the number one power. For the first time, Viet Nam was familiar with such concepts like opening market, investment commitments, national treatment, and non-discrimination rules. Things changed remarkably after the agreement took effect in 2001. Viet Nam’s export revenue reached US$36.3 billion in 2014 compared to just US$1.51 billion in 2001. Noticeably, Viet Nam has enjoyed trade surplus over years with US$2.45 billion in 2002, US$5.93 billion in 2005, US$14.24 billion in 2010, US$30.6 billion in 2014, and around US$39 billion in 2015. Six years after signing the Viet Nam-US Bilateral Trade Agreement, Viet Nam became the 150th member of the World Trade Organization. The event created strong effect in luring foreign investment with the total registered volume soaring from US$10 billion in 2006 to US$21.3 billion in 2007 and US$64 in 2008. Viet Nam’s exports rose 20%/year on average while distribution and retail sale services developed vigorously, evidenced by the appearance of modern supermarkets and trade centers. The Tran-Pacific Partnership is another milestone as it touches upon new areas like Government procurement, labor, and environment among others. It is estimated that the agreement would help expand the national GPD by US$23.5 billion by 2020 and US$33.5 billion by 2025. Export value is forecast to increase by US$68 billion by 2025. There is no doubt that significant advances have been made in reforming institutions, improving competitiveness and business environment over the past years. A series of important laws like the Law on Enterprises, the Law on Credit Organizations, the Law on Intellectual Property Rights, and especially the Law on Commerce have been revised to further define the right to business freedom. Under the World Trade Organization rules, all laws and administrative decisions must be made public before the date of effect. Statistics show that Viet Nam has amended or issued 86 laws since the country joined the World Trade Organization. The Trans-Pacific Partnership is a new-generation agreement with higher standards on transparency, anti-corruption, facilitation of corporate performance, which requires huge efforts in order to successfully grasp opportunities generated from the course of international integration./. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR