BUSINESS IN BRIEF 2/4 Thai electronics account for 70 percent of market share   According to the Ministry of Industry and Trade, Vietnam had imported a worth of US$226.9 million of household appliances and spare parts by the end of February, up 20.45 percent compared to the same period last year. Noticeably, household appliances and spare parts were mainly from Asian countries, of which, Thailand accounted for more than 50 percent of total turnover. This proves the infiltration of Thai enterprises into Vietnamese market via acquisitions and mergers of large retail chains. For instance, Berli Jucker (BJC) bought the Japanese 42-convenience-store FamilyMart and renamed it to B’mart. Earlier, it also purchased the Vietnam cash-and-carry wing of Germany's Metro AG for 655 million euros ($876 million). In early 2015, Central Group bought 49 percent stake in the company which owns Nguyen Kim electronic chains. Up to now, Thai products are present in nearly 9,000 markets across the country and predominate over products of other countries, especially made-in-Thailand electronic and refrigeration appliances which account for up to 70 percent of market share. Vietnamese consumers have favored Thai products because they tend to be 10-20 percent more expensive than Vietnamese ones and half as expensive as European ones but are of same level of quality. Meanwhile, most domestically-made products are unfashionable and of uneven quality, hence, they only suit low-income consumers. Soc Trang launches wood-hulled fishing boats built under Decree 67 Fishermen in the Mekong Delta province of Soc Trang have launched the first four offshore wood-hulled fishing boats built under the Government’s Decree 67. The ships have engine capacities from 650 Hp. They were built at a cost of up to 9 billion VND (405,000 USD) each, of which over 6 billion VND (270,000 USD) came from loans from the Vietnam Bank for Agriculture and Rural Development (Agribank). The province has been implementing the building of 25 new offshore fishing vessels under Decree 67. The province has over 100 offshore fishing vessels with over 1,000 fishermen. Decree 67, which took effect in August 2014, stipulates policies in investment, credit, insurance, and tax incentives in support of fishermen and ship owners, who wish to build new fishing boats, upgrade their existing ones or buy fishing and marine equipment. Its aim is to ensure fishermen can earn higher incomes. Garment-textile firms urged to gear up for global value chain Vietnam’s garment-textile sector still plays a passive role in the global supply chain (GVC) as they mainly specialise in straightforward production stages without studying market demands, heard a workshop in Hanoi on March 29. Addressing the event, which aims to disseminate the Asia-Pacific Economic Cooperation (APEC) forum’s plans and strategies on the GVC, Deputy Minister of Industry and Trade Nguyen Cam Tu said that local businesses have taken no initiative in seeking partners and expanding the market. According to the official, the GVC refers to a set of necessary activities to create a finished product or a service, from the first step of conception to delivery to the end customer. Joining the GVC will help businesses know where they are standing in the international arena in order to select suitable stages to participate in, thus maximising their benefits, Tu noted. Pham Quynh Mai, from the Multilateral Trade Policy Department under the Ministry of Industry and Trade, pointed out difficulties facing Vietnam’s garment-textile sector which, she said, mainly relies on materials imported from foreign countries, especially China. Besides, domestic firms have yet to pay much heed to how their foreign peers and rivals do business, thus they are slow to revamp their production methods and technologies, and raise their competitiveness, she added. In fact, a lot of support industry companies have joined hands with local garment-textile enterprises which, however, have failed to seek markets for their products, resulting in the collapse of the collaboration, Mai said. It is the problems in connectivity between businesses that hinder sustainable development of the country’s garment-textile sector as well as its engagement in the GVC, she noted. The workshop heard that the global garment-textile production scale will double by 2030. The Asian region alone is expected to expand its production by 2.4 times and make up more than 60 percent of the world’s garment-textile output. Moreover, the Trans-Pacific Partnership (TPP) agreement and other free trade agreements will turn Vietnam into a destination for the global supply chain, Mai said, suggesting the country make the best use of this opportunity. To raise the sector’s competitive edge when joining the GVC, the Vietnam Textile and Garment Group (Vinatex) also suggested businesses overhaul their production and management strategies, and build a quality troop of labourers, while teaming up with each other to create a national supply chain. In 2015, Vietnam remained in the top five largest apparel exporters, raking in 27 billion USD, which was 500 million USD short of the target. Vinatex General Director Le Tien Truong estimated the sector’s export turnover for this year at 29.5-30 billion USD. Vietnam exporters cleared of charge on circumventing anti-dumping tax The Turkish Ministry of Economy has confirmed that three Vietnamese exporters of welded cold-rolled stainless steel pipes did not circumvent anti-dumping duties, according to the Vietnam Competition Authority. The Vietnam Trade Office in Turkey informed the Vietnam Competition Authority about the Turkish ministry’s final decision on March 23. On December 12, 2014, the Turkish ministry’s General Directorate of Imports initiated an investigation into welded cold-rolled stainless steel pipes hailing from Vietnam. It suspected that Chinese and Taiwanese makers of welded cold-rolled stainless steel pipes subject to Turkey’s anti-dumping duties shipped their products to Turkey through Vietnam and Malaysia to evade the tariffs. In Turkey’s final conclusions, three Vietnamese companies (Inox Hoa Binh JSC, Sonha International Corporation, and OSS Dai Duong International JSC) have proved that they have produced the products on their own, not made any circumvention transactions, and fully cooperated throughout the inquiry process. Therefore, they are confirmed to not have evaded tariffs. Other companies, which failed to answer the questionnaire as fully as required or provide detailed information, will be subject to an anti-dumping duty rate of 25.27 percent. The rate is also being imposed on welded cold-rolled stainless steel pipes from China. Qatari bank considers Vietnam among fastest growing EMs Vietnam is expected to remain one of the fastest growing emerging markets (EMs) as the country’s economy is likely to grow at over 7 percent and above in 2016 and 2017, said Qatar National Bank (QNB) in its latest economic commentary released on March 28. The commentary from the largest bank in the Persian Gulf region noted that the documents adopted at the 12th National Congress of the Communist Party of Vietnam (CPV) commit to continued reforms aimed at the banking sector, state-owned companies and macroeconomic liberalisation. As a result, the outlook for Vietnam remains positive, in line with the forecasts published in QNB’s December report for growth of 7 percent in 2016 and 7.5 percent in 2017, said the commentary. In 2015, Vietnam ’s real GDP growth accelerated to 6.7 percent from 6 percent the previous year, making it one of the fastest growing emerging markets. Vietnam’s outperformance has been driven by strong export growth and supported by a number of other factors. The report said that Vietnam is attracting strong investment in low-end manufacturing for exports, thanks to competitive wages and free trade deals, such as the agreement on the Trans Pacific Partnership (TPP) and a free trade agreement (FTA) with the European Union (EU). According to the QNB, foreign direct investment (FDI) is pouring into Vietnam. Also, low-end manufacturing exporters are shifting from China to Vietnam as China shifts to higher-end manufacturing and Vietnam’s wage levels remain lower than in China. The report showed that FDI has already risen after trade agreements were signed in 2015, but the strongest impetus to growth and exports will come once the TPP comes into force, likely in 2017. Domestic demand still remains strong. Incomes could be boosted by the strong export sector, while the housing market is showing signs of recovery. All of these may bolster investment and consumer sentiment, said the report. Mining industry to modernise Việt Nam is one of the few countries maintaining an annual economic growth rate of around six per cent and this growth has been the momentum for modernising its mineral sector, BT Tee, deputy head of the representative office of Singapore Exhibition Services, said. Tee, who is also a member of the United Kingdom’s All World Exhibition Alliance, told the conference on improving safety in mining processes in Việt Nam by improving technologies at the Mining Việt Nam 2016 held in Hà Nội yesterday, that the mineral sector has played an important role and is actively contributing to the economy. “Basically, the sector has met with demand of materials, coal and metals for several other industries such as thermo-power plants, cement, chemical and iron,” he added. Last year, the mineral sector produced around 40,000 tonnes of coals, 109,000 tonnes of iron ore and hundreds of tonnes of other ores such as copper and tin. “We expect that the exhibition this year which showcases modern and advanced machines, technologies for the coal sector in particular and construction sector in general, as well as experiences from international exhibitors would bring good results for businesses," he said. Sherwin Morgan, manager technical solutions of Outobec Southeast Asia Pacific, said in the current tough mining environment with lower commodity prices, improving operational profitability while maintaining good health and safety standards have been key factors in attracting investment. The efficiency of the installed process equipment plays a crucial role and inferior process equipment could pose a risk to both staff and operating margins. “Mining operations facing these challenges usually need to invest in new equipment and to modernise their existing equipment,” he said. Experts also updated new trends to improve productivity and maintaining competitiveness of local industry to take opportunities of the country’s deeper international integration. Mining Việt Nam 2016 attracted 171 businesses from 22 countries and territories in the world. Seminar priorities HR solutions Human resources have a huge bearing on corporate success, delegates told a panel discussion on “Integrated mindset” held in HCM City yesterday. With existing and future free trade agreements, including the ASEAN Economic Community and TPP, Vietnamese firms are expected to have opportunities to expand their market, but on the other hand, they would face challenges, including fiercer competition and a loss of talent. They should pay more attention to improving their HR strategies to attract and retain talent, Tiêu Yến Trinh, general director of Talentnet Corporation, said. Businesses should build professional and methodical business strategies, and then define their HR strategy to satisfy those objectives, she said, explaining this would result in proper talent attraction and retention policies. Firms do not need to hire top talents in all positions, but instead can combine internal promotions with hiring outside talents and outsourcing work, she said. Lê Bá Thông, general director of TTT Corporation, which specialises in interior decoration, furniture, architecture, said corporate culture also plays a very important in retaining talent. Edward Foong, general director of Singapore-based Treino Consulting and honorary general secretary of the Singapore Human Resources Institute, said: “In Singapore one of the challenges in HR we always face is we can’t find people. In Việt Nam, there is a huge amount of talent. The only shortcoming is your English capability. So I encourage you to work hard, to continue to work on your English.” With new technological innovations, delegates said, smart use of technology would result in efficient talent management. Organised by Talentnet Corporation, the panel discussion marked the launch of the second biennial Việt Nam HR Awards, which recognise and honour enterprises that have displayed excellence in planning and implementing HR policies, contributing to business efficiency and performance as well as enhancing the quality of their employees’ lives. Việt Nam HR Awards have been adapted from the “Singapore HR Awards” by Talentnet Corporation and given in association with the Labour and Social Affairs newspaper. All businesses operating in Việt Nam for at least three years are encouraged to apply for the awards. Registration for the biennial awards is open until May 15, and the awards will be presented in September. Winners would have a chance to participate in the Singapore HR Congress or HR training courses in Singapore organised by the SHRI, Trinh said. This time more Vietnamese firms are likely to stand a chance since, according to her, the focus will be on small and medium sized ones to help them develop confidence in their HR management. Đỗ Mạnh Hùng, deputy chairman of the National Assembly’s Committee for Social Affairs, hailed the awards, saying the Government is focused on HR development. When the discussion turned to strategies to expand abroad, Thông said businesses must first achieve a strong foothold in their domestic market before thinking of going overseas. Simon Wan, managing director of Cornerstone International Group, said companies need to understand what they are good at and develop their business based on that. Tin Nghia to launch IPO on April 1 Tin Nghia Corporation, the second largest State-owned corporation in southern Đồng Nai Province, plans to sell 14.9 million shares or 9.56 per cent of its stake at its initial public offering on April 1. The auction, which will be done on the HCM Stock Exchange at a starting price of VNĐ10,200 a share, is expected to be among the most wanted IPOs this year. Established in 1989, Tín Nghĩa Corporation is currently among the 100 biggest firms in Việt Nam with an annual revenue of more than VNĐ10 trillion (US$454.5 million). If successful, the corporation will earn VNĐ158 billion after the IPO. Under the equitisation plan, the corporation will have charter capital of nearly VNĐ1.56 trillion. With eight subsidiaries, five divisions and 11 affiliates, the company has been operating in the areas of industrial park management, agricultural products, logistics, petrol and oil, gas, real estate, tourism, resorts and building materials. After the IPO, the corporation will sell 54.53 million shares or 35 per cent of its stake to strategic investors, while the dominant stake of 50 per cent will remain with the State. Tín Nghĩa owns over 3,500ha of land in the province, including areas for eight industrial parks (IPs), urban areas, tourism sites, petroleum depots, petrol stations and a 20ha clay quarry. According to its report, the corporation has not earned good revenues from the land fund. Instead, coffee production was the key area bringing in turnover. Coffee exports accounted for about 50 per cent of total sales, followed by revenues from animal feed imports. In 2015, the corporation estimated a net revenue of VNĐ10 trillion and a net profit of VNĐ304 billion. By 2020, Tín Nghĩa will increase revenues to VNĐ17.5 trillion and profits after tax to VNĐ339 billion. After the IPO, Tín Nghĩa will continue to develop the four key areas of IP development, petroleum trading, import-export and logistics. In addition, the corporation also plans to spend VNĐ3.4 trillion and VNĐ1.77 trillion on expanding An Phước IP and Ong Keo IP, respectively, and VNĐ930 billion on a petroleum storage project in Phú Hữu Commune. It would also invest VNĐ92 trillion in a 40ha port in Nhơn Trạch District. The corporation has grown 700ha of coffee in Laos, which will be expanded to 3,000ha in the future. It also plans to build a coffee processing plant in the neighbouring country in the future. In June 2015, it opened its representative office in Bentonville of Arkansas, USA to buy local commodities, such as soybeans, corn, cotton and timber for processing in Việt Nam. Banks take out int’l loans to meet long-term needs Some commercial banks have recently taken international loans to meet their long-term capital demands. Sài Gòn Thương Tín Commercial Bank (Sacombank) has inked a contract to borrow US$50 million from Cathay United Bank to secure capital for the provision of medium and long-term loans. Vietinbank has recently also signed a syndicated loan worth $200 million with 18 international banks in Taipei, led by BNP Paribas and Taipei Fubon Commercial Bank. Vietinbank said the foreign currency loan would provide the bank with funds for the production and business activities of enterprises. Some other domestic banks are also negotiating with international institutions for loans. Người Lao Động (Labourers) newspaper quoted Director of the central bank’s Monetary Policy Department Bùi Quốc Dũng as saying that previously, US dollar holders often deposited short-term tenors and commercial banks capitalised on the capital source to provide long-term loans. However, after the central bank cut the interest rate of dollar deposits to zero per cent, dollar holders have turned to demand deposits. Commercial banks, therefore, have to borrow long-term foreign currency loans from international institutions to offset the funds lent to domestic businesses, Dũng said. Besides this, industry insiders said, commercial banks that used too much short-term capital to provide medium- and long-term loans also had to borrow international loans and then transfer the dollar loans into đồng to balance their long-term funds. With the transfer, banks also expected to make a profit as they forecast the forex rate would not rise beyond 5 per cent while they would lend the capital in đồng with a long-term interest rate of more than 10 per cent per year. Currently, the interest rate on dollar loans from foreign institutions is roughly 2 per cent per year, equal to the 6 per cent interest in đồng. However, experts said it would be risky for banks as no one could accurately forecast the movement of the dollar in the global market, according to the Người Lao Động newspaper. Trần Ngọc Thơ from the HCM City Economics University warned that it would be very hard for banks to forecast the movement of the dollar against the đồng under the current foreign exchange policy as the central bank no longer announces a cap for the forex rate yearly but allows the forex rate to change daily. Thơ suggested that the central bank should not allow local commercial banks to lend out their international loans after transferring them into đồng. Only the government can legitimately borrow international loans through the issue of bonds, Thơ said. Contract delays water project A contract relating to the construction of Đà River Water Project Phase 2 between a Vietnamese water supply company and a Chinese pipe supplier has not yet been signed, said an official. Trương Quốc Dương, deputy general director of the Vinaconex Water Supply Joint Stock Company (Viwasupco), the project’s developer, told Tiền Phong (Pioneer) newspaper that  the company and Xinxing Corporation were drafting the contract. Viwasupco was making a report on the project’s implementation to submit to the Department of Construction and the City’s People’s Committee, Dương said. The contract, which was supposed to be signed this week, was postponed after Deputy Prime Minister Nguyễn Xuân Phúc instructed the city administration to review the whole project. The deputy Prime Minister also urged Hà Nội authorities to clarify information relating to the project after concerns by local residents. Solutions should be put forward to ensure the project is effectively carried out on schedule, and in accordance with state regulations, he said. Phúc asked local authorities to submit a report on the case by March 31. In a related development, the city’s department of construction held a meeting on Monday afternoon with relevant agencies and the project developer to hear Viwasupco’s report on how it had sought and chosen the Chinese contract. No competence agencies had raised their voice against the choice of ductile iron pipes or the Chinese contractor, Dương said. The Hà Nội Construction Department would report the case to the city’s administration after the meeting, he said. Last week Viwasupco announced that China’s Xinxing Corporation had won the bid for the supply of materials for the second phase of the Đà River water pipeline. The firm would supply materials at about 10 per cent less than the approved cost, according to the Viwasupco’s press release. Concerns have been raised by the public about the quality of the project as well as the choosing of the Chinese contractor as the pipe has broken 17 times since the completion of the first phase in 2009. The construction of Đà River Water Project Phase 2 is an important project for providing clean water to people in the capital, and ensuring livelihood security and social stability. Because of the importance of the project, Viwasupco conducted open international bidding to choose contractors with sufficient capacity and experience, the company said in a press release. After a strict and careful selection process, Xinxing Corporation was chosen by Vinwasupco for the supply of ductile iron pipes and fittings. The second phase of the project started last October after several delays. The project is one component of a larger project to supply clean water to nearly 200,000 households living along the chain of Sơn Tây, Hòa Lạc, Xuân Mai and Miếu Môn, as well as the Hà Nội and Hà Đông urban areas. Hà Nội authorities have asked agencies to speed up the progress of projects in Hà Nội including the Đà River Water Project Phase 2 to ensure water supply for urban areas, especially in the summer time. In a written request sent to agencies, Hà Nội City’s Party Committee has also asked water supply companies to operate at full capacity and review water supply systems as a ground for upgrading the existing system. It called for more investment from other sources to develop water supply companies and water supply systems to meet the clean water needs of the city’s urban and suburban areas. The Party Committee has also demanded that companies intensify the use of surface water and gradually reduce the exploitation of underground water. Vietcombank introduces first 'Digital Lab' The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) introduced its first "digital lab", a Wi-Fi hot spot for digital banking, on March 28. The new digital labs are located at the Ha Noi Vietcombank branch at 11B Cat Linh street and at the HCM City Vietcombank branch at Me Linh Square in District 1. The lab is the first of its kind ever provided by a Vietnamese bank. It offers customers self-service banking transactions inside the digital Wi-Fi hot spot. Vietcombank Digital Lab is part of a Vietcombank project to build a modern branch network called "Smart Branch". The project is part of Vietcombank's strategy to develop digital banking services. Instead of queuing for bank tellers, clients can now make transactions themselves using the digital lab, including sending money, cash withdrawals, money transfers, opening bank accounts, and other banking services. Now that their first two digital labs have been launched, Vietcombank expects 40 per cent of transactions to be conducted through e-banking channels, with about 50 per cent of clients using electronic banking services, such as internet banking and mobile banking. Asia Commerical Bank expects 14% profit growth this year  The Asia Commercial Bank (ACB) plans to report a pre-tax profit of about VND1.5 trillion (US$66.7 million) this year, an increase of 14 per cent over last year. This year, the bank is expected to pay dividend in shares at a rate of 10:1, meaning a shareholder owning 10 shares will receive a new share. Its total assets are expected to reach VND237 trillion on December 31, 2016, up 18 per cent over the end of 2015. The bank also projects a year-on-year growth of 18 per cent for both deposits and lending, while controlling bad debts at less than three per cent of its total outstanding loans in 2016. Apple seeks to expand presence in Vietnam Vietnam may soon be getting a bigger bite of Apple. The technology giant, the maker of iPhones, iPads, iPods and Mac computers, is looking to expand its presence throughout the nation and has been searching for key staff to take the helm. Currently, among other positions, Apple is recruiting for the Distribution Manager position for the Vietnamese market, according to Thanh Nguyen, managing director of the Anphabe, the nation’s largest employment recruiting agency. “They’re specifically looking for a highly motivated, tech savvy, service-minded and customer oriented person to lead the IPhone and IPad sales team in the market,” said Nguyen who was hired to spearhead the search. They especially want to be in the larger metropolitan areas of the country near the universities where there’s a lot of intellectual capital to tap into, said Nguyen.  Anyone interested in any position with Apple should contact Anphabe for an interview. Currently, Apple products are sold in Vietnam through the distributor model and the company is particularly anxious to expand into Vietnam, which has been branded as one of the bright spots in the Southeast Asian economy. Startups surge in first quarter There have been 23,770 enterprises set up in the first quarter of the year with total registered capital of VND186 trillion (US$8.24 billion), up 24.8% and 67.2% year-on-year respectively. According to the General Statistics Office (GSO), more than 9,860 businesses have been established in March alone with combined capital of VND72.9 trillion (US$3.27 billion), representing month-on-month increases of 76.6% in number and 35.7% in capital and year-on-year rises of 86.7% and 116.6% respectively. The registered capital of startups in the first quarter averages out at VND7.8 billion (US$350,000) each, up 34.5% over the same period last year. New firms plan to recruit 322,200 employees, up 21.5% from a year earlier. Data of the GSO showed that nearly 9,380 enterprises have resumed operation after suspension, soaring 84.1% year-on-year. However, 20,044 businesses have stopped operation due to tough market conditions, up 23.9% over the same period last year. More firms upbeat about market The GSO’s survey of enterprises in the processing-manufacturing sector revealed 29.2% of respondents said business in the first quarter is better than in the previous quarter and 43.7% rated the performance in the period as stable. The survey found 53.3% of the respondents expected better business performance in the second quarter than in the first quarter and 35.5% look to stable business results. Regarding production, 31.4% of the surveyed enterprises said the first quarter is better than in the previous quarter, 39.1% reported stability and 29.5% bemoaned production contraction. Asked about the prospects of quarter two, 54.2% expected production to fare better than in quarter one. As for outbound sales, 31.4% reported more export orders in the first quarter than in the previous quarter and 52.3% saw stable orders. According to the survey, 38.6% and 48.8% of the respondents hoped export orders to increase and stabilize in the next quarter respectively. In terms of production cost, 23.6% said cost has gone up in the first quarter compared to the previous quarter and 65.6% said cost is unchanged. According to the survey, 14.3% of respondents have recruited more employees in January-March while 69.5% have maintained their current payrolls. For the second quarter, 21.2% plan to scale up employment. HCM City sees fuel import tax revenue down The HCMC Department of Customs estimates the city has seen fuel import tax revenue declining by VND2 trillion (US$89.6 million) this quarter. The contraction is attributable to lower prices of fuel products in the period and the fact that domestic fuel trading firms have shifted to importing fuels from the markets where they can enjoy special tax incentives. A representative of the HCMC Department of Customs told the Daily that all fuels imported into HCMC have come from those markets offering special tariffs as provided in the free trade agreements in the year to date. Therefore, the Ministry of Finance’s recent decision to lower import tariffs for diesel, kerosene and jet fuel will not affect the city’s budget collection from fuel imports as firms can no longer import fuels subject to Most Favored Nation (MFN) duties, he said. Due to lower prices, the turnover of fuel imports has dipped by 50% though imports have risen in the January-March period. Besides fuel products, the city’s quarterly budget collections have plummeted by an additional VND3 trillion as duties on multiple products imported from South Korea and ASEAN countries have been cut to almost 0%. Certain fertilizer products, machines and equipment for agricultural production, offshore fishing boats, animal and poultry feed are exempt from value-added tax. In all, HCMC encounters a budget shortfall of some VND5 trillion from imports and exports each quarter. However, the city had collected export-import taxes of VND17.5 trillion by March 22, accounting for 17% of the full-year target. The representative of the customs department said the result was not bad owing to higher fee and tax revenues from many products. He took completely built-up (CBU) autos as an example. Car imports into HCMC in the first three months have surged nearly 42% year-on-year to US$44 million. The HCMC Department of Customs is assigned to collect VND102.5 trillion for the city’s budget this year compared to last year’s VND93.93 trillion. With the target of VND102.5 trillion for this year, HCMC will contribute 37.96% of total tax and fee collections registered by the customs sector. The ratio was 35.7% last year. MBS debuts on Hanoi bourse MB Securities Joint Stock Company (MBS) on March 28 listed on the Hanoi Stock Exchange with 122.12 million shares launched at a starting price of VND10,000 each. Closing the session, MBS was traded at VND7,700 per share. The enterprise has chartered capital of over VND1.2 trillion (US$54.2 million). At present, Military Bank (MB) is the biggest shareholder of the securities firm, holding 79.52% of chartered capital, equivalent to 97.11 million MBS shares. MBS was set up by the bank in May 2000 and merged with VIT Securities at the end of 2013. The merged firm MBS was considered the first successful merger on the local equity market. MBS now focuses on the two key sectors of stock brokerage and investment banking services. Listing on the stock market is part of MBS’s development strategy in the long run. The company expects to post revenue of VND96.8 billion (around US$4.34 million) in the first quarter of this year, meeting 20% of the full-year target, and profit of over VND12.3 billion, 30.7% of the target. Its equity is estimated at VND1.3 trillion and the capital adequacy ratio (CAR) at 290%. Legal support programs yet to meet demand of businesses The legal support programs for enterprises in HCMC have not met expectations of the business community. The programs should be changed to benefit businesses, especially at a time when Vietnam is intensifying its international integration, experts said at a conference organized on Friday by the HCMC government to review legal support for businesses in the 2012-2015 period. Pham Binh An, director of the WTO Integration Support Center, told the conference that Vietnam has participated in a dozen free trade agreements (FTAs), with nine of them taking effect. The country’s stronger integration requires businesses to improve operations, especially from 2016. An said the center has sent staff to districts to promote 14 legal support programs for enterprises, primarily for small- and medium-sized ones. However, many enterprises still complained that the programs have been of low efficiency. For example, the HCMC Department of Science and Technology has launched many programs to aid firms in quality and management improvements but they have remained unknown to many businesses. There should be changes in the coming time when enterprises need a lot of legal assistance to benefit more from the nation’s further international integration. If firms are not assisted properly, they would face woes and even go out of business when the Trans-Pacific Partnership (TPP) agreement comes into force. An suggested the city government to survey businesses’ demand for legal support and consult business associations to tailor programs to help them. Nguyen Van Hau, vice chairman of the HCMC Bar Association, said free legal assistance programs have not suited what enterprises actually need. Meanwhile, websites of ministries and agencies lack updated legal documents and enterprises must pay for the documents they need. The legal system in Vietnam still plagues the corporate sector with complicated and inconsistent regulations. Sawaco proposes major water reservoir Saigon Water Corporation (Sawaco) has written to the city government proposing building a water reservoir with a capacity of 1.35 million cubic meters on 23 hectares in the outlying district of Cu Chi in 2016-2017. Sawaco said the city now lacks back-up crude water resources and water treatment facilities. Therefore, the large-scale reservoir could ensure a sufficient supply of crude water for Tan Hiep water plant in one to three days when salinity and pollution affect the quality of water in the Saigon River. Crude water reservoirs have been built in some countries like the Netherlands and Japan, according to Sawaco. To adapt to climate change, pollution and salinity intrusion, the city needs to build the reservoir to secure water supply for millions of citizens. Currently, the combined daily capacity of six operational water plants in the city is 2.1 million cubic meters. Four of them get crude water from the Dong Nai River and the remainder use water from the Saigon River. However, the latest report of Sawaco says that water pollution in Saigon and Dong Nai rivers has worsened. Particularly, organic, ammonium and microbial indicators have exceeded the permissible levels in the Saigon River. Besides, water shortage and salinity caused by climate change have worsened in recent times. The El Nino phenomenon has affected the city’s water supply system since the beginning of this year and some water plants stopped taking crude water from the Saigon River when salinity was beyond permissible levels. Nguyen Van Dam, director of the HCMC Irrigation Management Exploitation and Service Company, said all water flowing into the rivers in HCMC originate in other provinces. The city needs a reservoir to adapt to climate change. The city often gets water from Dau Tieng Lake in the upstream of the Saigon River for local water treatment plants. However, due to severe drought at present, the volume of water in Dau Tieng is only 930 million cubic meters, 76% of the average in previous years. The volume is 80% at Tri An reservoir in the upstream of the Dong Nai River. Tra fish prices rebound Prices of unprocessed tra fish in the Mekong Delta have bounced back significantly after months of decline. Processing enterprises now buy tra fish at VND21,000-22,000 a kilo, up from VND17,000-18,000 per kilo early this year, said Tran Hieu Trung, a farmer in the Mekong Delta city of Can Tho. The An Giang Fisheries Association (AFA) said the current prices of unprocessed tra fish stand at VND20,000-22,000 per kilo in An Giang Province, VND3,000-4,000 higher than earlier this year. Exporters of tra fish in the Mekong Delta ascribed the price spike to increasing demand from major markets, including the United States, the European Union (EU) and China. Figures of the General Department of Customs showed tra fish exports to the U.S. in January neared 12,000 tons worth US$32.42 million, up 24.54% in volume and 4.09% in value against the same period last year. Local enterprises exported nearly 11,000 tons of tra fish worth US$23.63 million to the EU in the first month of this year, rising by 35.39% and 13.24% respectively, and more than 7,500 tons worth US$13.32 million to China, up 57.39% and 29.83%. Although prices of unprocessed fish in the Mekong Delta have recovered, farmers are still running the risk of incurring losses as they can barely cover production cost with the current selling prices. Credit grows 1.54% in Q1 Banks have reported 1.54% credit growth in the first quarter of this year compared to the end of 2015, according to the General Statistics Office (GSO). This loan growth rate is above 1.25% in the first quarter of last year. As of March 21, capital mobilization by commercial banks had risen by 2.26%, well above 0.94% in the same period last year. Total money supply has edged up 3.08% versus the end of 2015, higher than 2.09% in the same period last year. The GSO announced credit growth in the January-March period at a time when banks are racing to hike deposit rates. At present, a number of small banks offer a high rate of 7.5% per annum for 12-month deposits. Meanwhile, inter-bank interest rates have edged down after three consecutive weeks of increase. The State Bank of Vietnam has net withdrawn some VND200 trillion (US$8.8 billion) via open market operations (OMO) in over one month. Those developments reflected concerns about a new race to raise interest rates among lenders. However, compared to previous years, liquidity in the banking system is ample, which is evident in the fact that banks have spent much acquiring Government bonds. HCM City names 54 firms as tax debtors The HCMC Tax Department on March 28 announced a list of 54 enterprises which have owed taxes this year, with many of them in the property sector. According to the list signed by the department’s deputy director Le Xuan Duong, Hoang Hai Housing Business and Investment Joint Stock Company (JSC) has the biggest tax debt of over VND101 billion (US$4.5 million). The company in Hoc Mon District has had its business receipts invalidated by the city’s tax agency. Tan An Huy Housing Construction and Trading JSC is the second largest tax debtor with nearly VND90.7 billion (US$4 million). Its business registration certificate has been revoked. The next three companies in the list also belong to the real estate sector. They are Hong Quang Construction and Real Estate Investment JSC based in HCMC’s District 4, Thai Hung Trading Construction and Transport JSC in District 7 and Trang Thien Phat Trading Service and Construction Co Ltd, with respective tax arrears of over VND88.9 billion (US$3.9 million), VND62.6 billion (US$2.8 million) and VND38 billion (US$1.7 million). The debts of the aforementioned firms accounted for nearly 70% of the total VND547.8 billion (US$24.6 million) announced by the tax agency. The list also comprises firms with debts relating to the land use right fee. Dong Phuong Construction-Trading-Service-Manufacture Co Ltd bears a debt of VND11 billion (US$493,000) and Tin Phong Production, Trading and Construction Co Ltd owes more than VND1.7 billion (US$76,000) including over VND1.1 billion (US$49,300) reported for the fee. The tax department said it had carefully reviewed the list of tax debtors before publicizing it to avoid errors. The department is told to ensure tax arrears will not be 5% higher than the city’s total budget collections this year. Vietnamese exports to Mexico soar Vietnam’s export value to Mexico in the first two months of this year reached 257.2 million USD, up 41.4 percent compared with last year, according to the trade office of the Vietnamese Embassy in Mexico. Meanwhile, Vietnam’s imports from Mexico during the period were 63.3 million USD, an increase of 4.46 percent. Total two-way trade in the first two months of 2016 reached over 320.46 million USD, up 32.17 percent against the same period last year. According to Vietnam’s Trade Counsellor in Mexico Hoang Tuan Viet, the sharp rise in Vietnamese exports was due to higher volume of shipments ranging from mobile phones, computer and accessories, and transportation means to coffee and wooden products. Vietnam’s export turnover to Mexico reached nearly 1.54 billion USD in 2015, up 49.16 percent from 2014 – the highest increase in a decade, according to the trade office. Vietnam’s key exports to the second-largest Latin American economy include mobile phones and parts, leather footwear, computers, electronics, aquatic products, garments and textiles, transport vehicles and parts, coffee, furniture and rubber. According to the General Department of Vietnam Customs, Vietnam imported 477.52 million USD worth of products from Mexico in the year, mostly computers, electronics, machinery and equipment, animal feed, steel and metal. Two-way trade reached nearly 2.23 billion USD, an increase of 55.70 percent year-on-year. Binh Duong: IIP grows over 7 percent in Q1 The Index of Industrial Production (IIP) of southern Binh Duong province rose by 7.09 percent in the first quarter of 2016 from a year earlier, according to the provincial People’s Committee. Garment and textiles led the way with a growth rate of 17.3 percent, followed by metals (13.3 percent), computer, electronic and optical products (11.5 percent), mining industry (11.4 percent) and electrical devices (11.2 percent). The increase was largely owing to the local authorities’ efforts to support businesses in addressing difficulties. The national IIP in the first two months of this year posted a year-on-year increase of 6.6 percent. Growth was reported in production of automobiles (38.8 percent) and steel (28.3 percent), while that of paint, leather footwear, motorbikes, sugar, and mobile phones reduced by between 0.1 percent and 3.5 percent. Localities where industrial production surged included Quang Nam (65.6 percent), Thai Nguyen (29.9 percent), Hai Phong (14.7 percent), Can Tho (13.4 percent), Da Nang (9.6 percent), Hai Duong (9.2 percent), Hanoi (8.5 percent), Dong Nai (8.4 percent), Ho Chi Minh City and Binh Duong (5.7 percent). Jan-Feb CBU auto imports fall sharply The sales volume of completely built-up (CBU) autos imported into Vietnam in the first two months of this year dipped 23.5% year-on-year to 11,500 units, according to data of the General Department of Customs. February saw CBU auto imports nearing 5,700 units worth US$142 million, down 3.2% in volume and 5% in value over the previous month. Of the total, car imports from Thailand accounted for 2,120, Korea 1,000, and Japan 590. Auto traders attributed the decline to the fact that auto firms reduced CBU auto imports in the first lunar month in February. Besides, they stepped up imports in the final months of 2015 to avoid a higher special consumption tax caused by a new tax calculation effective early this year. Auto firms forecast sales growth of CBU auto imports this year would not be as high as last year due to higher selling prices caused by the new calculation of the special consumption tax. Therefore, customers will opt to buy locally-assembled cars or wait for promotion programs. Industry watchers said the prices of imported autos with large engine capacity will be higher in July this year if the National Assembly passes the amended law on the special consumption tax. Earlier, the Ministry of Finance sought to increase the special consumption tax by 10-90% on autos with engine capacity of 2,500 cubic centimeters or bigger. In contrast, tax reduction would apply to autos with engine capacity of no more than 2,000 cubic centimeters and most of these vehicles are locally-assembled. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR