BUSINESS IN BRIEF 14/4 Vissan sells fresh pork from April 15   Vietnamese meat processor Vissan will sell fresh pork that meets the Vietnam Good Agricultural Practices (Vietgap) standards from April 15. The firm, officially known as the Vietnam Meat Industries Limited Company (Vissan), announced on April 12 that its Vietgap fresh meat will be made available in 146 points of sale in wet markets in Ho Chi Minh City and 309 supermarkets in nearby cities and provinces. Van Duc Muoi, Vissan General Director, said the total supply is estimated at nearly 70 tonnes per day. Deputy Director of the municipal Department of Industry and Trade Nguyen Huynh Trang said the activity is in response to a drive on ensuring safe food, launched by the municipal authorities. Vissan, founded in 1970, is among the country’s top manufacturers and exporters of fresh meat, poultry and processed food. It serves customers via its own showrooms, supermarkets, and convenience stores in Vietnam, as well as exporting its products internationally. Following an initial public offering in March, the State still holds a 65 percent stake in Vissan as its major shareholder. It posted a revenue of 4.65 trillion VND (208 million USD) last year.- Vietnam Expo 2016 opens in Hanoi The Vietnam Expo 2016 opened in Hanoi on April 13 with the presence of Deputy Prime Minister Vuong Dinh Hue and representatives from the Ministry of Trade and Industry (MoTI). The event attracted the participation of more than 500 enterprises from over 20 countries and territories, showcasing their products at 520 stands, including local big names such as the Hanoi Trade Corporation (Hapro), the Vietnam Electrical Equipment Joint Stock Corporation (GELEX) and the Tan A Dai Thanh Group. Director of the Vietnam Trade Promotion Agency (VIETTRADE) Bui Huy Son said the event will create opportunities for businesses to partner with both domestic and international enterprises, to improve export growth and attract foreign investment. Belarus is the honoured guest at this year’s fair, which is seen as a significant initiative in the context that Vietnam signed a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), of which Belarus is a member, he added. Hailing the growing importance of the expo, Director of the Hanoi office of the Trade Investment Promotion Agency of the Republic of Korea (Kotra Hanoi), Lee Kyu Seon, said the fairs have brought cooperation opportunities for both Vietnamese and RoK businesses, adding that 71 RoK firms are attending this year’s event with 76 stands. First launched in 1991, the prestigious annual event is helping foreign enterprises seek business opportunities and meet up with potential partners in Vietnam. Jointly organised by the Ministry of Industry and Trade and the National Trade and Advertising Joint Stock Company (Vinexad), the Expo will run until April 16.- Improved Industrial Relations Important for Vietnam'Ss Competitiveness A significant workshop on “EU-Vietnam Free Trade Agreement (EVFTA): How to improve competitiveness through better industrial relations” takes place today in Ho Chi Minh City. The event is jointly organised by the Swedish Embassy and the Vietnam Chamber of Commerce and Industry (VCCI) attracting about a hundred Vietnamese businesses reprsentatives wishing to establish or expand business with Sweden as well as the EU as a whole  and wanting to further understand concepts such as industrial relations and corporate social responsibility (CSR). 2015 was an important year for Vietnam through the conclusion of the negotiations for the EU-Vietnam Free Trade Agreement (EVFTA) and the Trans Pacific Partnership (TPP). When EVFTA comes into force, expectedly in 2018, it is estimated that Vietnam GDP will grow additionally by 15% and that the value of its export to the EU could increase by almost 35%. In 2014, two-way trade between the EU and Vietnam grew by 8.8%, confirming the EU as one of the largest trading partners for Vietnam. Vietnam also enjoyed an export surplus of USD 2 billion.  Once in place, the EVFTA,the first of its kind that the EU has signed with a developing country, will not only facilitate trade, increase market for Vietnamese goods and services but also offer Vietnam new opportunities to improve sustainability and industrial relations.    “We should ensure that trade does not happen at the cost of the environment or of people’s rights. Businesses in Vietnam should be aware of the importance of CSR compliance, as committed by the Vietnamese government in the EVFTA. Money isn’t blind anymore. Consumers are getting more and more aware of how the products they buy have been produced in terms of effects on the environment and workers’ conditions.  Consumers awareness is, among other factors, putting a pressure on businesses in Vietnam and elsewhere to strengthen their efforts to comply with international CSR standards to stay attractive from a consumers point of view,” stressed Swedish Ambassador Camilla Mellander during her opening remarks at the seminar. She also said that Sweden is willing to work together with Vietnam to share its innovative experiences and best practices in the industrial relations field and in the light of the EVFTA. In 2013, Sweden topped the RobecoSAM Country Sustainability Ranking - a comprehensive and systematic index, which ranked 59 countries based on 17 environmental, social and governance indicators. “Swedish companies have a long history of active CSR work and Sweden is viewed as a pioneer within the field. Sweden has taken important steps as an example by asking state-owned companies to set several sustainability goals. The targets are to be set by the company boards, with focus on diversity, environment issues, human rights, working conditions, anti-corruption measures, business ethics and gender equality. The targets must also be measurable, specific and relevant to the companies’ operations, “ continued Ambassador Mellander. “The Swedish government’s view is that open trade and export promotion should go hand in hand with high ethical standards,” said Kristin Pålsson, Deputy Director at the Swedish Ministry for Foreign Affairs and one of the speakers at the event, “but it is also important to engage in a dialogue with businesses on the challenges that this presents.”  Last year Sweden launched an action plan on business and human rights. “Corporate Social Responsibility is becoming more important for sustainable economic growth in today’s globalized world,” emphasised Kristin Pålsson. In the labour market, Sweden also has a long history experience of workers forming unions and through negotiations solving disputes. The Swedish trade union began as early as in 1888. Sweden was a different country 100 years ago and it wasn’t unusual for workers to have very long working hours and poor working conditions.  “A word often used describing Swedish industrial relations is consensus. “The Swedish Model” that is famous worldwide refers to an agreement signed between representatives of employers and employees reached in 1938. They formed the workers unions and the employers’ associations respectively. These two key stakeholders on the labour market negotiate with each other and reach consensus without involving the government. The fundamental idea is that the parties involved, employers and employees, through co-operation and negotiations finalize a collective agreement”, added Mr Erik Andersson, representing the Swedish Trade Union while emphasizing that consensus does not  mean that the stakeholders always agree, but through peaceful negotiations they reach a collective agreement that both parties can sign and agree upon. In Vietnam, the new labour code in 2012 introduced formal procedures for settling industrial relations disputes. But many issues still remain such as the capacity of trade union and the enforcement of labour laws. CSR is still a relatively new concept and Vietnamese businesses are facing increasing challenges in executing CSR programs.   “Quote,” said Mr Vo Tan Thanh, Vice President of VCCI. Currently, Vietnam's key export items to the EU include telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, seafood, and furniture. EU exports to Vietnam, meanwhile, are dominated by high-tech products including electrical machinery and equipment, aircraft, vehicles, and pharmaceutical products.  Since 2013, Vietnam has been the EU's fourth most important trading partner among the ten ASEAN Member States. Bank sector urged to use TPP benefits The Vietnamese banking industry should take advantage of the Trans Pacific Partnership to develop and integrate with global markets, a seminar heard in HCM City yesterday. “Việt Nam will have the chance to attract more foreign investment in its banking industry,” Lương Hoàng Thái, head of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, said. Speaking at the seminar titled “TPP: opportunity and challenge for financial industry and Vietnamese enterprises’ business development”, he said, “Greater participation of foreign investors will help the industry strengthen its resources, technology and management as well as to expand co-operation.” His deputy Ngô Chung Khanh said “The TPP is a new model for regional economic co-operation, and creates the most favourable conditions for trade and investment.” He pointed out that when the TPP came into effect, local companies would benefit from a more transparent business environment, larger export markets, lower prices of goods and services, and a chance to join global supply chains and borrow from international sources. But he also warned that competition would increase significantly with respect to certain products. “Domestic enterprises must compete for capital and human resources with foreign investors and, if they want to join the supply chains, improve their management and technologies.” They should know what Việt Nam’s obligations are, change their mindset in the new scenario, make long-term business plans, improve their competitiveness and seek co-operation with international partners to join global supply chains, he said. Vũ Minh Châu of the State Bank of Việt Nam (SBV)’s International Co-operation Department spoke about Việt Nam’s TPP obligations. “TPP members are committed to retaining existing policies. In case of amendments, freer ones will be allowed.” She was referring to the fact that any changes in commercial policies mean they have to be loosened in favour of foreign entities. "The TPP stipulates that members have to offer national treatment to financial organisations, meaning they cannot discriminate between local and foreign ones," she said. “Việt Nam will open its market to electronic payments through credit cards without any restrictions on the number of card companies. "Foreign credit institutions can set up representative offices, branches of foreign banks, joint venture banks and banks with 100 per cent foreign capital more easily. “The SBV must have a comprehensive legal framework to be in line with the TPP.” She added that the challenges faced by local banks were “limited financial products, poor governance, and middling risk management.” Mineral sector urged to invest in advanced technology Science and technology are key solutions for the success of the mineral sector, so enterprises should make additional investments in new technologies to ensure more effective exploitation, safety and environment protection. Cao Quốc Hưng, deputy minister of Industry and Trade made the statement while attending the conference held in Hà Nội yesterday to review the project to renew and modernise technologies in the mineral sector in 2015, with a vision to 2025. He noted that mineral firms should have specific evaluations of their abilities to take measures to improve science and technologies for the period of 2016-20. Nguyễn Huy Hoàn, deputy director of the ministry’s Department of Science and Technology, said after six years of the project’s implementation, several large State-owned groups and corporations had seen significant improvements in modernising their technologies. “Most of the technologies in petroleum exploitation and processing have reached the regional level, which ensures safety in labour and the environment. The technologies have focused on high automatic levels, as well as processing, to create high added value,” Hoàn said. For example, the Việt Nam National Oil and Gas Group (PetroVietnam) had been using the most modern technologies in chemical, biological and informatics to improve oil recovery at Black Lion, White Tiger while gradually completing technologies in oil exploitation. The group also built key oil refineries, such as Dung Quất, Phú Mỹ Fertiliser and Cà Mau Fertiliser, using the most modern technologies in the world. The National Coal and Minerals Holding Group (Vinacomin) also approved and implemented 10 key science and technology programmes to modernise their technology. It built mines with high capacity and modern facilities, including Hà Lầm, Núi Béo and Khe Cham. The Việt Nam Chemical Group (Vinachem) invested in several new projects using modern technologies, such as DAP Lào Cai and Lao Salt Mine. It also supplemented new technologies which consume less energy. However, he said several businesses in coal and minerals still had outdated technologies with high production costs, causing natural resource waste, as the capital demand for modernising technology remained too high. He urged firms in the sector to make more investments in research and renew technologies. Vietnam promotes products at major food expo in Singapore Scores of Vietnamese businesses are promoting their products at the Food & Hotel Asia 2016 (FHA) expo in Singapore from April 12-15. The biennial event, the largest of its kind in Asia , drew enterprises from over 70 countries and territories, to sell their products at more than 3,000 stands. Close to 68,000 visitors, mainly business players, from 95 countries and territories, registered to participate in the fair. Vietnamese Trade Counselor to Singapore Nguyen Viet Chi told reporters from the Vietnam News Agency that FHA 2016 offers a good chance for domestic companies to seek partners in the region, view the latest in food processing technology and equipment, and study customers’ tastes. As a member to the ASEAN Economic Community and the Trans-Pacific Partnership (TPP) Agreement, Vietnam should be aware of both opportunities and challenges, especially for sectors that have strength in exports. Vuong Thanh Long, Director of Business Development at the Hung Hau Agriculture Corporation, said Vietnamese businesses lack close cooperation when reaching out to foreign markets. Additionally, the price competitiveness among domestic enterprises does not create a firm foundation for them to develop in the global playground, he added. Director General of the Hello Coffee 5 Company Tran Tan Thien suggested businesses be more proactive in joining international trade fairs to seek new customers. Exporters of advantageous products such as coffee, rice and seafood need to create new products to make inroads in choosy markets like Japan, Europe and the US, he recommended. According to Singapore’s Department of Statistics, Vietnam exported 320 million USD worth of food to Singapore, making up nearly 4 percent of the market’s food import. This means the potential to increase food exports to Singapore as well as from Singapore to other countries in the region remains large. Illegal mussel traps delay river renovation project More than 2,000 mussel traps have been placed illegally by residents on the Tắc and Quán Trường rivers of central Khánh Hòa Province, slowing down renovation work here. According to the Lao Động (Labour) newspaper, Khánh Hòa Province has banned aquaculture breeding in these rivers to protect the ecosystem. A restoration project, controlled by the Khánh Hòa province waterway traffic project’s management board, is currently underway. Illegal placement of the traps has made it impossible for the construction equipment and machines to reach the rivers. Nguyễn Thị Hoa Sim, deputy chairwoman of the Phước Long Ward’s People’s Committee, one of the wards that run along the rivers, said the rivers used to be very dry, so raising the mussels was difficult. Since the river dredging project began, the residents have been taking advantage of the emerging tides to place their traps and collect the mussels. There were some 400 traps in the region, but only two households that had laid seven traps had been penalised so far, Sim said. Nguyễn Lê Hoàng Việt, from the provincial waterway traffic project’s management board, said the board had co-operated with local authorities to curb the violations but nothing had changed. Mussels have high economic value and are mainly used as food for shrimps. They can be raised without being fed, so residents from provinces such as Bình Định, Quảng Ngãi and Phú Yên place the traps and go away, returning two to three months later to collect the mussels, which are then sold. The traps also hindered the flow of the rivers, polluted these water bodies and slowed down the river dredging progress, Nguyễn Anh Tuấn, deputy chairman of the Nha Trang city’s People’s Committee, said. The situation became more complicated when residents resorted to threatening the construction workers and officers of local authorities The People’s Committee had ordered the authorities of the wards that own the rivers to persuade residents to stop the aquaculture exploitation, but most had failed to follow the rules, he said. After April 15, inter-sector forces would remove the traps and punish violators according to the regulations, if the residents failed to remove them, he added. Vietnamese dragon fruit comes back to Taiwan China’s Taiwan will begin importing Vietnamese dragon fruit again, Quan Doi Nhan Dan (People’s Army) newspaper reported. The Plant Protection Department (PPD) on April 12 announced that Taiwan has agreed to reopen its doors to Vietnamese white flesh dragon fruit, starting from June 2016, after several years of interruption. The news was welcomed by dragon fruit growers and exporters as Taiwan is a promising market for the fruit. The PPD is working with authorized bodies to complete procedures for exporting the fruit. When the market opens, Vietnam may ship more than 13,000 tonnes of dragon fruit to Taiwan per year. Previously, Vietnam exported about 10,000 tonnes of dragon fruit to Taiwan per year, however from 2009 exports halted, due to Vietnam suffering from an epidemic of fruit flies along with Thailand, the Philippines, India, China, Myanmar, Nepal, Pakistan and Sri Lanka. Vietnam exported over one million tonnes of dragon fruit in 2015.- Belgian expert interests in Vietnamese market Belgium should look to trade ties with Vietnam, where stable politics stimulate economic growth, Nabil Jijakli, an expert from the CREDENDO insurance group, said at a conference on the global economy held in Brussels on April 12. Jijakli said Vietnam’s average growth rate above 6 percent is a dream for many western countries. According to him, the key to Vietnam’s success lies in its geographical location in Southeast Asia and literate young population. These factors help boost industrial development, particularly the manufacturing sector. Jijakli lauded the favourable business climate in Vietnam and advised European firms to invest in the country, as Chinese investors are making inroads in the market. He pointed to the EU-Vietnam Free Trade Agreement that will eliminate several tariffs and strengthen partnerships. Vietnam’s membership of the free trade agreement Trans-Pacific Partnership will also gather momentum for the global economy and benefit the country, he said. Jijakli also noted challenges facing Vietnam, including a slowdown in the global economy and neighbouring China – an economic powerhouse in Asia. Vietnam’s involvement in the East Sea dispute is also a factor, he said. Participating businessmen praised the Vietnamese market, saying it has the potential for European investment in technology, environment and manufacturing. Hanoi calls for PPP investments in key projects Projects on building belt roads and roads along the Hong (Red) River in Hanoi are among those calling for Public-Private Partnership (PPP) investments. Other projects focus on the construction of eight new bridges, eight railway routes, the Hanoi Railway Station and underground infrastructure facilities. Vice Chairman of the Hanoi People’s Committee Nguyen Doan Toan on April 12 instructed the municipal Department of Planning and Investment to coordinate with the municipal Promotion Centre on Trade, Investment and Tourism and relevant agencies to complete the list of projects, which should be presented to the Hanoi Party Committee before April 16. According to the official, the city will hold a business promotion conference at the end of this month, which is expected to see the participation of enterprises and organisations both at home and abroad. Such projects will be introduced at the event in order to seek investments, Toan said. Therefore, he said, the committee has asked the municipal Department of Natural Resources and Environment and concerned units to promptly review the land fund for projects in need of PPP investment and classify them. Vietnam welcomes Indian investors: ambassador Vietnam will create favourable conditions for and offer incentives to Indian firms to invest in Vietnam, said Vietnamese Ambassador to India Ton Sinh Thanh. Speaking at a conference held by the Vietnamese Embassy in India and the Federation of Indian Chambers of Commerce and Industry (FICCI) on April 12, Thanh highlighted expanding Indian investment in Vietnam and the great potential for investment links between the two countries’ enterprises. Vietnam welcomes Indian companies to invest in the oil and gas industry, textiles, support industries, pharmaceuticals, food processing, IT, mechanics, infrastructure development and renewable energy, he stated. Vietnam has participated in 12 free trade agreements (FTAs) and became a major gateway for export into many large markets such as the US, Japan, and the European Union, he said, adding that Vietnam is now an attractive destination for foreign investors. Vietnam commends the Indian Government for setting up its 100-million-USD special fund, which supports Indian companies to build production and supply chains in Cambodia, Laos, Vietnam and Myanmar, Thanh said. The Vietnam-India Strategic Partnership has been strengthened in recent years, facilitating economic cooperation between the two countries, he added. According to the ambassador, along with enhanced links in trade and tourism, Indian firms are increasing their investments in Vietnam. Indian enterprises poured over 230 million USD into Vietnam last year, bringing their country’s total progressive foreign direct investment capital in Vietnam to more than 530 million USD. Vice Director of the Export Import Bank of India Nirmit Ved said there were many reasons for foreign partners to invest in Vietnam, citing its rapid economic growth, strategic position in Southeast Asia and strengthened international economic relations. Representatives from the Foreign Investment Agency introduced Vietnam’s fields of strength and the Vietnamese Government’s preferential policies on tax and land leases. Economic experts call for effective public investment The role of the State in investment activities has been spotlighted at a conference in Hanoi on April 12. The conference on the role of the State in the market economy during 2016-2020 and issues on institutional reform was organised by the Development Strategy Institute (DSI) in collaboration with the Central Institute for Economic Management ( CIEM ). Nguyen Dinh Cung, head of the CIEM, said public debt has increased quickly in recent years, as a growing proportion of public investment is sourced from foreign loans. He said public investment in economic fields has been reduced but at a slow pace, while public investment in public services directly relating to human development has not changed much. For the State to be a positive investor making the right decisions in line with the market economy, according to Cung, it is necessary to adjust the public investment structure towards decreasing public investment proportion and increasing investment from non-State economic sectors. The State should not invest directly in enterprises and commercial production, and set aside an amount of State capital for infrastructure projects in the form of public-private partnership. He also stressed the need to boost discipline, transparency and accountability in budget management, closely supervise public debt and maintain national finance security. Nguyen Van Bich, Deputy Director of the DSI, said there is a need to establish a close relationship between reforming institutions and promoting efficiency in providing basic services. Participants at the conference also discussed the role of the State in improving efficiency of public services and in developing the financial market system in Vietnam.- Transport sector to boost divestments in Q2 The Ministry of Transport (MoT) will divest from non-core businesses in 59 State-owned enterprises under its management in the second quarter of this year, planning to collect 6.367 trillion VND (275 million USD), according to Transport Deputy Minister Nguyen Ngoc Dong. Dong made the statement during a meeting held on April 12 in Hanoi to review the accomplishments of the first three months of 2016 and outline tasks for the next quarter. He said the ministry should focus on proposing mechanisms and policies to encourage enterprises to develop transport infrastructure. The ministry should also accelerate the disbursement of sourced projects, especially prioritised construction works, he added. In the first quarter of this year, 25 enterprises under the MoT held the first shareholder meetings after equitisation, including the Airports Corporation of Vietnam. In the period, the ministry completed capital divestment from 9 companies, collecting a total amount of almost 2 trillion VND (86 million USD). The transport sector also completed and put into operation 23 projects, as well as basically completing the tender-work to choose a consultant for the feasibility study on Long Thanh International Airport, which is set to be Vietnam’s largest airport.     Marujyu inaugurates metal part factory in Ha Nam The Japanese Marujyu Vietnam Company inaugurated a factory producing metal parts for heavy industry in the northern province of Ha Nam on April 12. The 2.1 million USD factory is built on a area of nearly 2.500 sq. metres in the Dong Van 2 Industrial Park (IP) in Duy Tien district at a total investment of 2.1 million USD. Director General of the company Tomonari Matsuo said the factory is expected to ensure a sustainable supply of high quality metal plate products for domestic clients. Chairman of the provincial People’s Committee Nguyen Xuan Dong said the operation of the factory will create jobs for locals and improve their living conditions, thus contributing to the province’s development. He requested the company to observe Vietnam’s relevant laws and local regulations during its operation and take good care of its employees. He also urged the IP management board and relevant bodies to facilitate the operation of the factory and fulfil the province’s commitments to investors. In 2015, industrial parks in Ha Nam province attracted 39 projects, 28 of which were foreign invested, with a combined registered investment of 391 million USD. They are now home to 230 active projects, including 131 foreign invested, with a total registered capital of 1.3 billion USD. Currently, the province has eight industrial parks that cover an area of 2,000 ha. Circular being drafted on venture capital for start-ups The Ministry of Planning and Investment was drafting a circular on a venture capital fund to create a legal framework for promoting start-ups and make Việt Nam a start-up nation. The draft, which is now being raised for public comments, would regulate the establishment, management and operation of venture capital funds for start-ups in Việt Nam. The draft circular said that venture capital into start-ups was defined by investors contributing funds in a start-up or by buying stakes to launch the business or increasing equity when the business had not earned a pre-tax profit. It would take only three days to launch a venture capital fund in Việt Nam, according to the draft circular. In addition, the operation of a venture capital fund would not apply regulations on the equity investment fund. A venture capital fund could raise additional capital from existing members or new members but would not be allowed to borrow money for investments. The draft circular was raised amidst conditions that the wave of start-ups in Việt Nam were in their infancy with several successful examples which managed to raise money from foreign venture capitalists. However, a majority of Vietnamese start-ups were still struggling to find funding. The draft would trigger a wave of venture capital funds, especially from the private sector, in start-ups, according to the ministry’s Agency for Enterprise Development (AED). The AED said that while success stories of Apple, Facebook and Uber were proving that start-ups were changing the world and creating huge economic values, Việt Nam saw start-up as a new driver for growth which relied on innovations rather than by undermining natural resources, labour and capital. “Capital is a pre-requisite for the success of any start-up business,” the AED said, and added that raising capital for start-ups was critical, while borrowing money from banks was an impossibility for start-ups which had not earned profits. However, the AED said that the presence of venture capital funds was modest in the country. Foreign funds like CyberAgent, 500 Startups, and Golden Gate Ventures had just opened offices in Việt Nam while local banks were not interested in funding small projects and start-ups. FPT Venture appeared the most active among domestic funds in investing in start-ups, providing funding for some 10 start-ups each year. “The demand for capital to launch a start-up is still large,” the AED said. According to the AED, Vietnamese start-up companies mainly got funding from angel investors who invested in the early stage of a business start-up, often with a sum of between US$5,000 and $50,000 in exchange for equity ownership interest following the laws on Enterprise and Investment. Facts showed that many angel investors wanted to start a fund for start-ups but the requirements for the foundation of an investment fund following the Law on Securities were very strict. In addition, an equity investment fund and venture capital fund were different, the AED said. The former invested in firms with revenues, profits or those listed on the stock exchange, while the latter provided seed funding in the early-stage of start-up firms with perceived long-term growth potential. So, the securities law could not be applied to venture capital, the AED said. “It is necessary to develop a legal framework for venture capitalists to promote funding for start-ups that did not have access to capital markets,” the AED said. At a conference on improving national competitiveness, Nguyễn Quốc Toản, deputy head of the Party Central Committee’s Economic Commission, said that funds for start-up businesses should be developed to promote innovations and help develop a start-up nation. Deputy Prime Minister Vũ Đức Đam said at the National Start-Up workshop held on March 30 that the Vietnamese government was willing to invest and join hands with private investors to support the national start-up community. VN, India, Myanmar optimistic on markets Twelve of 17 markets in the Asia Pacific recorded declines in MasterCard’s Index of Consumer Confidence, but Myanmar, Việt Nam and India are still extremely optimistic in their outlook. For the first time since 2012, consumers in the region are not optimistic about the immediate future, according to a MasterCard report titled Consumer Confidence (H2 2015). The index has fallen below the 60 point optimism mark to neutral, with 12 of the 17 markets seeing a deterioration in confidence levels. Stock market sentiment was the key driver of the decline followed by prospects for employment. The biggest decline in optimism levels was seen in Sri Lanka, followed by Singapore and Taiwan. Myanmar, Việt Nam and India on the other hand are extremely optimistic in their outlook for the next six months. Consumer confidence in India stayed stable with consumers maintaining their extremely optimistic outlook. Between November and December last year 8,779 respondents aged 18 to 64 in 17 Asia Pacific markets were asked to give a six-month outlook on five economic factors -- the economy, employment prospects, regular income prospects, the stock market, and their quality of life. A zero score is most pessimistic, 100 is most optimistic and 50 is neutral. Eric Schneider, region head, Asia Pacific, MasterCard Advisors, said: “The decline of consumer confidence in Asia Pacific reflects the continued uncertainty in the global economic environment. In particular, recent stock market turbulence has significantly impacted consumer outlook. “However, a number of emerging markets are bucking this trend, namely, Myanmar, Việt Nam and India, which are all continuing to see strong economic growth. “So while Asia Pacific’s overall confidence has dampened and growth has slowed, its markets will still play a key role in driving global growth in 2016.” Overall, the Asia Pacific markets saw a deterioration in confidence, falling 6.4 points to 59.7 points in H2 2015 from 66.1 points the previous half. Eight of the 17 markets surveyed are now below the 50 point neutral, double the number in H1. There were declines across all five key economic indicators: stock market (-10.8 to 52.0), employment (-7.1 to 59.8), economy (-6.7 to 56.2), quality of life (-4.7 to 57.4) and regular income prospects (-2.9 to 72.9). People in Myanmar, Việt Nam and India are  however extremely optimistic about economic prospects over the next six months, with Myanmar showing the biggest improvement. Compared to H1, only Myanmar (+14.1), Indonesia (+12.2) and Việt Nam (+7.3) out of the 16 Asia Pacific markets surveyed recorded a greater than five-point improvement in consumer confidence. Declines were recorded in 12, with extreme deterioration in Sri Lanka (-25.2), Singapore (-20.9), and Taiwan (-20.6). The decreases in Korea, Malaysia, and Taiwan moved them from neutral into pessimistic territory, while Australia, the only pessimistic market in the previous survey, moved from pessimistic to neutral. US import regulations reviewed Opportunities to export to the US and the US requirements for imported food and pharmaceuticals were discussed during a seminar held in Hà Nội on Monday. Việt Nam is currently the United States’ 13th largest exporter, selling primarily apparel, electronic machinery and spare parts, footwear and interior décor. Agro-fisheries and food exporters, however, sustained negative growth last year due to a string of barriers set up by the US, deputy head of the Ministry of Industry and Trade’s Trade Promotion Agency Đỗ Kim Lang said. According to the ministry, two-way trade between Việt Nam and the US soared from US$452 million in 1995 to $1.51 billion in 2002 when their bilateral free-trade agreement came into effect. The figure hit $37.9 billion last year, during which Việt Nam rose to 19th place and was among the US’ leading trade partners. US technical expert David Lennarz said US firms were interested in Việt Nam and were switching to Vietnamese partners from others in the region. Vietnamese enterprises were, however, facing obstacles caused by the US’ technical barriers and strict food safety requirements. Moreover, the US had also launched the Container Security Initiative and set requirements for food production, processing and warehousing, which were adding to export costs. Besides this, the US trade laws were complicated and cumbersome. Experts suggested Vietnamese firms thoroughly learn about their US partners and their business rules and practices before making any transactions. The event was hosted by the ministry’s Trade Promotion Agency. Quảng Trị seeks project funding The central province of Quảng Trị is calling for domestic and foreign enterprises to invest in 17 projects by 2020, the provincial People’s Committee said. The projects specialise in a wide range of sectors including energy, processing, leather and footwear, sea ports, tourism and services. Among the large-scale projects are the 1,350-megawatt Hải Lăng gas-fuelled power plant, expected to cost US$1.5 billion; Cửa Tùng-Cửa Việt coastal resort, worth approximately $110 million; and Trường Sơn tourism and service complex valued at $50 million. Committee Vice Chairman Nguyễn Hữu Dũng told a press conference yesterday in Hà Nội that the province would have a hotline through which investors can address their difficulties. The province will also be able to fulfill commitments in land, tax and administrative reforms. Dũng added that Quảng Trị would organise an investment and tourism promotion conference in the locality on Sunday to better advertise its advantages and investment opportunities, and introduce the list of projects to domestic and foreign investors.   At the event, deputy general director of the Bank for Investment and Development of Việt Nam (BIDV) Trần Phương said his bank would provide a VNĐ15 trillion ($667 million) loan to the province for socio-economic development from 2016 to 2020. Located in the north-central region, Quảng Trị has many advantages in terms of geographic location and adequate transport facilities connecting the province with other localities. This has allowed the province to develop industries such as mining and mineral processing, electricity, agro-forestry-fishery, marine economy and tourism. However, the province’s foreign direct investment still lags behind its potential. As of December 2015, the province attracted only 21 foreign-invested projects with capital totaling $86 million, ranking 57th among 63 localities nationwide, according to the Foreign Investment Agency under the Ministry of Planning and Investment. VN seeks out new trade deals in Egypt The Vietnamese Embassy and Trade Office in Egypt held a trade and investment promotion conference in Aswan Province to draw the attention of local businesses to Việt Nam. At the event held on Monday, Vietnamese Ambassador Đỗ Hoàng Long informed local officials and participating enterprises of Việt Nam’s potential and policies to encourage development, its economic strengths, and the country’s key export products. He said the potential for co-operation between the two countries had not been fully tapped as bilateral trade had only reached some US$390 million in 2015, of which $20 million had come from Egypt’s exports. The ambassador also introduced the participants to the Investment Law and the country’s preferential policies to attract more foreign investment into Việt Nam. Thanks to these policies, some $20 billion was being poured into the country every year, he stressed. The ambassador used the occasion to ask the Aswan Province administration to provide information on its policies as well as projects that required investment. He also proposed the establishment of links between the Vietnamese Embassy and Aswan Province’s Chamber of Commerce to connect businesses in the two countries. The president of the Aswan Chamber of Commerce, Mohamed Abu Al Kassem, called for investment by Việt Nam in the area’s main fields, such as seafood processing and mining. He also suggested Việt Nam exempt visas for Aswan businesses. Facebook Messenger introduces new tools Facebook Messenger has just announced new tools and updates that help people find and get in touch with businesses more easily. The new options are Messenger Codes, Messenger Usernames and Links. Up to 900 million people use Messenger every month. More than a billion messages are sent between people and businesses on Messenger each month. Statistics from Facebook also revealed that Viet Nam was ranked among the top 10 countries and territories that send most messages to business pages. The others were Thailand, the US, Brazil, Mexico, Taiwan, the Philippines, Argentina, Britain and Turkey. In addition, the number of messages sent by Vietnamese users to business pages is three times higher than the global average. Messenger Links make it easy for people to start a message thread with businesses. They use a page's username to create a short and memorable link (m.me/username) that, when clicked, opens a conversation with the business in Messenger. Messenger Codes work the same way. They're unique codes that people can scan in Messenger using the camera in their phones to open a thread with businesses. Tyre bead steel to enjoy 0% import duty  Iron and steel used for tyre bead wire production will enjoy a preferential import tax rate of zero per cent from May 2, the Ministry of Finance announced in a recent circular. Tyre bead wire is used to reinforce virtually all types of pneumatic tyres for motorcycles, passenger cars and trucks, as well as off-road and farming vehicles. Circular No 51/2016/TT-BTC specifies that the zero-per-cent rate will be applied for non-alloy iron and steel in stick, bar or roll shapes, laminated with a diameter of less than 14mm. The rate will also be applied for iron and steel wires. The ministry gave out the preferential import duty after suggestions by steel-maker Posco Viet Nam Processing Centre Co Ltd, which is based in Nhon Trach 5 Industrial Zone in Dong Nai Province. Hai quan, an online Viet Nam Customs newspaper, reported that Posco and tyre makers in Viet Nam currently have to import non-alloy hot-laminated steel sticks with a tax rate of 3 per cent. This is because the country isn't yet able to make this product domestically. Around 30 tyre manufacturers in Viet Nam, including Sao Vang Rubber JSC, Da Nang Rubber JSC and Kumho, are seeing stiff competition from about 460 firms that import tyres from Thailand, Japan, China and Taiwan for domestic sale. Posco proposed the import tax rate be lowered to zero per cent for the steel sticks until this material can be made in Viet Nam. This will encourage development of domestic supporting industries, the firm said. VNCC to offer 25 per cent shares to strategic shareholders State-owned Viet Nam National Construction Consultants Corporation (VNCC) will offer 8.94 million shares, or 25 per cent to strategic shareholders. To become a strategic company shareholder, an investor must have a healthy financial status, and no overdue debts or accumulated losses at the time of document submission. In addition, they must not be a strategic investor or major shareholder owning over 5 per cent of charter capital in any business operating in the field of construction consultancy in Viet Nam. Earlier this year, the Prime Minister approved the equitisation plan to transform VNCC into a joint stock company. After the equitisation, VNCC, under the Ministry of Construction (MoC), will have chartered capital reserves of VND357.7 billion (US$16 million) or 35,774,448 shares at a par value of VND10,000 per share. Under the plan, the MoC representing the State's capital, will hold 51 per cent of the corporation, while 25 per cent and then another 19.03 of the charter capital will be sold to strategic shareholders and at an initial public offering (IPO). The rest will be sold to employees. VNCC works mainly in consultancy on construction investment. In 2015, the corporation earned revenue of VND231.8 trillion and profit after tax of VND28.91 billion . Gross domestic product (GDP) expanded by 5.46 percent in the first quarter, slower than the 6.12 percent during the same period last year, according to the General Statistics Office (GSO). UK newspaper considers now a good time to buy property in Viet Nam UK newspaper considers now a good time to buy property in Viet Nam Foreign investors should take account of buying a property in Viet Nam at this time as the market is offering great opportunities, according to the UK-based Financial Times newspaper. Viet Nam and Russia signed an intergovernmental protocol on supporting the production of motor vehicles in the Southeast Asian country. Shares worth $130m auctioned in Q1: HOSE The Ho Chi Minh City Security Exchange (HOSE) announced 172 million shares worth some US$130 million were successfully auctioned in the first quarter of 2016. At a press conference on April 11, the HOSE said 24 enterprises, including six state-owned enterprises, had put up 307 million shares for auction in Q1. The exchange also announced 63 shares were not eligible for deposit transactions in the first quarter. According to the HOSE, the 10 largest securities companies saw their combined market share increase slightly in Q1 to reach 68.73 per cent of the country's total brokerage value. The top five securities companies in terms of market share in Q1 were Saigon Securities Inc (SSI), with 13.96 per cent; Ho Chi Minh  Securities Joint Stock Company (HSC), with 13.67 per cent; Ban Viet Securities (VCSC), with 10.18 per cent; VN Direct Securities (VNDS), with 5.41 per cent; and MB Securities (MBS), with 5.23 per cent. Regarding the removal of the foreign ownership cap, Tran Anh Dung, general director of the HOSE, said Decree No. 60/2015/ND-CP, which was a modification of Decree No. 58/2012/ND-CP, had come into effect on September 1, 2015, but the market was still waiting for more detailed guidelines, such as the list of conditional business sectors. In addition, the extension of foreign ownership also depended on the shareholder meetings of each company, he said, adding that progress had been made. Dung said the exchange would prioritise the development of new products and the improvement of quality and transparency, besides increasing transactions and connecting member enterprises. Hino opens its first 3S in central region Hino Motors Viet Nam has launched its first showroom under a 3S model (sales-service-spare parts) in the central city, providing international standard service and sales in the central region. This is Hino Motors Viet Nam's 16th showroom. Six in the south and five in the north of Viet Nam feature the 3S model, and five other showrooms nationwide run the 2S model. Hino, the leading truck manufacturer in Viet Nam, placed its only 3S showroom in Hoa Chau Commune in the Hoa Vang district, 20km away from the city centre. The truck producer has introduced different models of light, medium and heavy trucks in the Vietnamese market. Japan ranked fourth among the top investors in Da Nang, with 89 projects worth $378 million, of which, 55 projects involve manufacturing, creating 30,000 jobs for the locals. The city plans to build an industrial park spread across 134ha for medium-sized and small businesses from Japan. The city has proposed launching a direct flight between Osaka and Da Nang soon, as the seven direct flights per week to Narita has helped promote tourism since their launch last year. The central city was also committed to creating the most favourable conditions for Japanese businesses in the future, Da Nang's city leader said. Thai air conditioner arrives in Vietnam with bravado Thai air conditioner marker Saijo Denki Company has recently announced that it will defeat other domestic air conditioner brands, especially Panasonic, Mitsubishi Electric, and Daikin, according to newswire VTC news. On April 8, ADM Group Investment Joint Stock Company (ADM) and Saijo Denki signed an agreement to distribute smartphone-controllable air conditioners in Vietnam. Accordingly, 40,000 Saijo Denki-branded air conditioners will arrive to Vietnam on April 15. Saijo Denki representative Thynyawat Chittiphailungsri commented that before setting foot in Vietnam, the company thoroughly researched the market. The company found Vietnamese people’s income on the rise. Besides, Vietnamese people seem to favour Thai products, making it a suitable time to popularise the Saijo Denki brand in the country. “It is the first time that Saijo Denki’s products have been present in Vietnam, however, we have numerous advantages over Japanese as well as Korean products. Saijo Denki expects that its products will get a market share between 5 and 7 per cent in the first year and carry on to dominate in the upcoming years,” said Dao Tien Duong, ADM’s deputy general director. According to Nguyen Ho Linh, director of AMD’s electronic branch, Saijo Denki is the only Thai brand that can compete with Japanese rivals. Besides, it is one of the few air conditioner brands licensed to export to Japan. Saijo Denki is the first air conditioner controlled by smart phones using GPS Inverter, a combination of the global positioning system (GPS) and Intelligent Inverter application. Besides, Saijo Denki’s products are equipped with a turbo technology that makes cooling 25 per cent faster and uses 40-80 per cent less electricity compared to general air conditioners. Furthermore, Saijo Denki’s products have a higher capacity than that of the average appliances in the same price bracket. For example, a Saijo Denki product worth VND11 million ($494.2) has a capacity of a 10,050 British thermal unit (BTU) instead of the 9,000 BTU comparable to other products at the same price. Established in 1985, Saijo Denki specialises in manufacturing air conditioners and air purifiers. Its products are present in North America, South America, Eastern Europe, and Southeast Asia. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR