BUSINESS IN BRIEF 11/5 Orange, tangerine, grapefruit best selling in Mekong delta Farmers in the Mekong delta regretted because they have no more fruits such as orange, tangerine, and grapefruit to sell while the price of these fruits hiked and they have become best selling. Farmer Pham Van Lanh in Dong Thap Province’s Lai Vung District is unexpected that prices of tangerine increase because in the end of April he sold over two tons of the fruit at VND28,000 per kilogram which he thought that the price was high but a few days later,it soared to VND36,000 per kilogram. Farmer Lam Van Khoe in the same district said that traders paid VND36,000-VND40,000 for one kilogram of tangerine, much higher than the price during Tet holidays (Lunar New Year). With such price, farmers could earn much profit yet very a few farmers have the fruits left. In provinces Tien Giang, Vinh Long and Dong Thap, the price of orange also leaped drastically. For instance, xoan orange increased to VND48,000-VND50,000 a kilogram; mat orange at VND40,000 while other kind sanh orange at VND32,000-VND35,000. Farmer Ho Thi Be in Soc Trang Province’s Ke Sach district disappointed because she sold nine tons of grapefruit last week collecting VND470 million (US$21,000)  yet currently, the fruit costs over VND60,000 a kilogram. Another kind of good grapefruit being sold like hot cakes is Nam Roi at VND40,000 a kilogram ensuring high profit for farmers. Because severe drought and salinity penetrated the Mekong delta badly affecting orchard and productivity and people intended to drink and eat the fruit in hot weather; accordingly the price of them leaped. Worse, some contracts for these fruit export were cancelled because farmers have no more fruits to sell to exporters. It is forecast that prices of these fruits will continue to be high in the next time. Vietjet offers one million “super saving” tickets Low-cost Vietjet offers one million super-promotional tickets priced only from zero VND at the golden hours from 12p.m to 2p.m in line with “12 p.m, It’s time to Vietjet” campaign in May at www.vietjetair.com. The move aims to celebrate the airline’s first-ever and unique “3D summer” activation at airports, which allows its passengers to experience amazing virtual 3D technology games, in-flight performances and 3D photos contest, together with interesting gifts. The first promotion phase will run from May 10 – 12, 2016, applied to all domestic routes within Vietnam and international services from Vietnam to the Republic of Korea, Chinese Taiwan, Thailand, Myanmar, Singapore and Malaysia. Travel period will be from August 15 to December 31, 2016 (except public holidays). Tickets can be booked from 12p.m to 2p.m at www.vietjetair.com (also compatible with smartphones at https://m.vietjetair.com ) or at www.facebook.com/vietjetvietnam (just click the “Booking” tab). Payment can be easily made with debit and credit cards of Visa, MasterCard, JCB, and American Express and ATM cards issued by 24 Vietnamese banks with Internet banking. “12 p.m, It’s time to Vietjet” campaign is applied to all Vietjet’s routes. With convenient timing and easy booking method, the campaign has brought flying opportunities to millions of people from 12p.m to 2p.m every day. The sooner you “hunt” the tickets, the lower the ticket fares are. There are different promotional tickets, routes and gifts for each of everyday, which is frequently updated at www.vietjetair.com . Vietjet continues to increase its modern fleet, expand its domestic and international network in order to meet increasing travel demand of tourists, individuals and businessmen. With its high-quality services, special low-fare tickets and diverse ticket classes, Vietjet offers its passengers enjoyable flights with dynamic and friendly flight crew, comfy seats, amazing hot meals and special surprises from the airline’s in-flight activities. Vietjet is the first airline in Vietnam to operate as a new-age airline with low-cost and diversified services to meet customers’ demands. The airline recently won IOSA Certification from the International Air Transport Association (IATA) after just over three years of operations. Vietjet was also declared “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies and tour operators in Asia. The airline was also rated as one of the top three fastest growing airline brands on Facebook in the world by Socialbakers and the most favorite airline in Vietnam in 2015. Currently, the airline boasts a fleet of 36 aircraft, including A320s and A321s, and operates 250 flights each day. It has already opened 50 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the Republic of Korea, Chinese Taiwan, China, Myanmar and Malaysia. It has carried more than 20 million passengers to date. 1, 000 guests join Asian Banker Summit 2016 The Asian Banker Summit 2016 organizing by the State Bank of Vietnam and the Asian Banker Journal is scheduled to take place in Hanoi on May 10- 12, with the participation of 1, 000 guests and over 200 financial organizations from 30 countries and territories around the world. At the summit, the Asian bankers will grant the annual prices for international and Vietnamese trade and financial banks in order to admit as well as honor their great achievements in the Asian- Pacific region. As expectation, 10 Vietnamese banks will be praised with the valuable price. Governor of the State Bank of Vietnam Le Minh Hung will have an important speech in the opening ceremony on May 11. The 2016 Asian Banker Summit is considered as a favorable opportunity for international community to be able to learn about Vietnam’s bank systems as well as open cooperation chances and investment market in the context of international economic integration in Vietnam. CEO, banks honoured with leadership awards A Vietnamese chief executive officer (CEO) and a dozen domestic banks were honoured at the Asian Banker Leadership Achievement Awards Dinner in Ha Noi yesterday, among peers from the Asia Pacific and Middle East. Singapore-headquartered The Asian Banker, the region's provider of strategic business intelligence to the financial services community, hosted the event with the State Bank of Viet Nam (SBV). Viet Nam's awards for CEO leadership achievement and the best-managed bank went to Military Bank CEO Le Cong, who created appropriate strategies and solutions to curb credit growth and manage default risks. "With his focus on the bank's prudent credit growth and efficiency, the average year-on-year credit growth stood at 40 per cent, 2.5 times higher than the industry's average growth in the past three years, while keeping the non-performing loan ratio below 2 per cent," the organisers said in a news release. SeABank, which leveraged its data analytics capability to offer a more customer-centric auto-loan product, won best auto-loan product in Viet Nam. The Sai Gon-Ha Noi Bank won awards for best deposit product and best brand initiative in the country after it was able to grow its retail deposit size by 32.4 per cent last year. The best credit card product in Viet Nam was awarded to Vietcombank, which led its peers with 21 per cent share of the domestic credit card market. Tien Phong Bank, whose online transactions accounted for 35 per cent of its total retail transactions, was named the country's best internet banking initiative. Agribank won the award for best microfinance product in Viet Nam, with its microfinance business contributing to half of total retail income and a net interest margin of 2.5 per cent last year. The best mortgage product in the country was awarded to the Bank for Investment and Development of Viet Nam, whose mortgage loans skyrocketed by 88 per cent, securing 20 per cent of the industry's market share in 2015. Viet Nam International Bank, which effectively utilised various social media platforms to increase the number of engaged users by 26 per cent year-on-year, won best social media intitiative in Viet Nam. The best cloud-based project in the country was Asia Commercial Bank, which provided real time communications and enterprise social interaction on a public cloud platform. The award for best mobile banking project in Viet Nam went to Techcombank and SAP, which achieved a notable increase in mobile banking market shares and reduced customer churn by half. The best treasury management project in the country also went to Techcombank and Misys, as the bank implemented a treasury system that enabled real-time risk management dashboard and alerts. "I'm very pleased to see that more Vietnamese banks have been awarded…These awards show the acknowledgement and high appreciation of the regional and international community for the achievements that Viet Nam has gained in its reform agenda," said SBV Deputy Governor Nguyen Thi Hong, adressing the ceremony. Yesterday's event kickstarted the three-day Asian Banker Summit 2016, where participants will discuss challenges for bank managers, infrastructure for financial markets, international banking transactions, and supply chains and technology in the banking sector. Hai Phong’s airport goes international On May 10, the Ministry of Transport announced the decision to recognise Cat Bi in the northern port city of Hai Phong as an international airport— marking a new chapter in the region’s economic development. Phase one renovations to modernize the airport and its dated interior and runways to accommodate Airbus A321 have been completed and the airport has been cleared for take-off and landing of the aircraft. The Ministry said the new designation is expected to boost general aviation, freight carriers and commercial passenger service. "Our overall goal is that you can go anywhere from here," said officials at the Ministry. "So a step in that direction is the international designation for two reasons: general aviation and for freight." It could also mean more business and industries moving to the Hai Phong region as one of the universal criteria for being attractive to business is that the new location be within 45 minutes of an international airport. The new designation is "a gigantic leap forward" for the region. Phase two of the project is on schedule for completion in the first quarter of 2017, which will result in the airport becoming fully functional for the B777, A330/350 and other aircraft customarily used in international flights. Vietnam, Cambodia buttress cross-border ties Leaders of the Vietnamese province of Dong Thap and the Cambodian province of Prey Veng announced on May 10 the signing of an agreement in Cao Lanh City aimed at bolstering cooperation. Pursuant to the agreement, the two sides will work collaboratively to ensure security for the citizens of both provinces, social order and to protect landmarks along their adjoining border areas. Chairman Nguyen Van Duong of the Dong Thap People’s Committee said the signing will contribute to promoting socio-economic development, strengthening solidarity and nurture the ties of friendship. Our hope is that it results in the best possible conditions for local people to effectively develop agriculture and stimulate cross border trade as well as enhance cultural and social exchanges, said Chairman Duong. Last year, exports of Dong Thap to Cambodia hit US$75 million. Dong Thap also supplied 30 million kWh electricity for Prey Veng, offered medicines and medical check-ups to poor people in Prey Veng and provided scholarships to 126 Cambodian students to study at Dong Thap University and Medical College. Annual Economic Report 2016 Vietnam’s Annual Economic Report 2016 themed “Forging new foundations for economic growth” was announced by the Vietnam Institute for Economic and Policy Research (VEPR) on May 10. The report said Vietnam’s economy had recorded positive developments in the last two years, particularly in industrial production and real estate. According to the report, new generation free trade agreements such as the TPP and the EU-Vietnam Free Trade Agreement (EVFTA) as well as the ASEAN Economic Community are creating favorable conditions for the private economic sector in Vietnam and the region. With an improved business environment and reduced tariffs, foreign investment is expected to rise significantly, it said. First digital bank service opens Timo, the first digital bank service in Viet Nam, was officially launched late last week in HCM City. Developed by the Viet Nam Prosperity Joint Stock Commercial Bank (VP Bank) and Global Online Financial Solution, Timo is the first bank service in the country without branches or traditional transaction offices. All services, including ATM cards, opening of saving accounts and payment to accounts, will be done online though mobile banking applications on smartphones or at the website http://my.timo.vn. Money sent to Timo will be kept at VPBank to ensure security, the bank said. All activities, including transfer of money, opening and closing accounts and account statements, are provided free. VPBank said the company would first develop the service in HCM City and later open in Ha Noi in October.  Reims desires to foster economic ties with Vietnam France’s Reims City wants to foster economic cooperation with Vietnam and cooperate with Vietnamese cities in heritage conservation, and clean agriculture and tourism development. The statement was made by Reims Mayor Arnaud Robinet at a reception for Vietnam Ambassador to France Nguyen Ngoc Son, who was invited to be a speaker at an international dialogue taking place in Reims on May 8 with the participation of representatives from Asian countries and many experts in politics and history. Mr Robinet said Reims wishes to expand cooperation and connectivity with cities all over the world, especially South East Asia including Vietnam. Addressing the dialogue, ambassador Son analyzed Vietnam’s open door policy, its development process and advantages in drawing foreign investment, including French investors. The Reims Mayor and Vice Mayor had a private meeting with the Vietnamese ambassador on the sidelines of the dialogue. The two sides discussed cooperation opportunities between Reims and Vietnam and a plan to set up twinning relationship between Reims and a Vietnamese city in the future. Reims and Vietnam can boost cooperation in tourism, creativity, green technology, agriculture and other fields, said Reims’ Vice Mayor, Benjamin Develey who had visited Vietnam twice. The international dialogue towards Asia, including Vietnam provides a good chance for Reims to enhance special cooperation ties with Vietnam, he noted. Thailand’s rice clearance sale poses challenges to Vietnam traders Thailand’s plan to sell off its rice stockpile within two months has sparked concerns for Vietnamese rice exporters, many of whom have been already hitting bumps. They said Thailand’s clearance of 11.4 million tons, more than the country’s annual average export, in such a short period will push prices down significantly and hurt consumption of rice from Vietnam. Several exporters said the business is hitting a standstill. Nguyen Thanh Long, director of Viet Rice Company in Ho Chi Minh City, said many customers from China, the Philippines and Africa have suspended their negotiations. “They said they want more time to calculate and observe the market,” Long said, as cited by Phap Luat Newspaper. A source from the Ministry of Industry and Trade said the clearance in Thailand will put Vietnam in “harsh competition.” According to industry insiders, purchase of Vietnamese rice was affected when Thailand sold off their stockpile in the past, but the impact will be much worse this time with the record high volume being offered. Vietnamese rice is currently cheaper than Thai products by US$5-US$10 a ton. Rice in Thailand’s government stockpiles is the direct competitor with Vietnamese low-cost rice, which currently accounts for a major part in Vietnam’s rice export. The trade ministry of Vietnam has suggested the agriculture ministry to make plans to reach out to new rice export markets, especially in the quality sector. Official figures showed Vietnam exported more than two million tons of rice worth US$916 million in the first four months, up 12% in volume and 14% in value from a year ago. China continued to be the biggest buyer, importing 32% of the volume. Toyota Vietnam sees upswing in April sales Toyota Motor Vietnam Co., Ltd (TMV) sold 4,537 vehicles in April, up nearly 14 percent against the same period last year. In the month, sales of the company’s saloon segment vehicles reached 2,116 units, a year-on-year increase of 2 percent. Of which, the Vios model took the crown with 1,195 cars sold while the Camry model saw 410 units sold. Sales of the commercial line hit 2,421 cars, a climb of 27 percent from the same period last year. Fortuner and Innova models recorded 1,088 and 863 units sold, respectively. Sales of the completely-built-up (CBU) imported cars, distributed by the TMV, reached 675 units, up 58 percent year-on-year. Yaris took the lead with 205 units, followed by Hilux (181 units), Land Prado (121 units), Land Cruiser (100 units) and Hiace (68 units). As many as 152 luxury Lexus units were sold during the month, a skyrocket of 69 percent from last year’s April and up eight percent compared to a month before. Last month, the company welcomed its 350,000th product. Mekong Delta improved its business environment: VCCI Localities in the Mekong Delta region have improved their rankings in the Provincial Competitiveness Index (PCI), according to the Vietnam Chamber of Commerce and Industry (VCCI). In a conference on PCI in 2015 held in the Mekong Delta province of Đồng Tháp yesterday, the VCCI Cần Thơ’s chapter Deputy Head of the VCCI’s Legal Department, Phạm Ngọc Thạch, highlighted Đồng Tháp’s PCI, which puts the province in second place out of the 63 provinces and cities nationwide and first in the Mekong Delta region. Đậu Anh Tuấn, Head of the VCCI’s Legal Department and Director of the Project on Enhancing Provincial Competitiveness, said improvements in administrative reform in the Mekong Delta region are seen in many aspects. However, Tuấn said, the quality of labourers in the Mekong Delta region is still low, with only 31.2 percent of labourers untrained, the lowest level in the whole country. The service assisting enterprises have yet to be developed and the quality of execution in some departments and sectors is limited. According to representatives in Bến Tre and Vĩnh Long provinces and Cần Thơ City, to improve the PCI, it is necessary to improve the business environment, reform administrative procedures, use information technology, promote the investment environment and pro-business policies, and invest in infrastructure development. Võ Hùng Dũng, Director of the VCCI in Cần Thơ, said that Mekong Delta localities would benefit from the PCI, which helps improve the image of the region and its attractiveness to foreign investors. In 2015, the region attracted US$3.53 billion in foreign direct investment capital. High risk provisions and costs hit bank profits Soaring risk provisions and operation costs pushed down profits of a couple of banks in the first three months of this year.    Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) saw its after-tax profit plummeting to VND21.7 billion, well below VND422.5 billion in the same period last year. An Eximbank report showed the lender set aside VND337.1 billion for making risk provisions in January-March, compared to zero dong in the same period of 2015. The bank said it must make quarterly provisions this year, including credit risks and those for special bonds issued by Vietnam Asset Management Company (VAMC). Eximbank’s operation costs surged to VND660.3 billion in the first quarter, a 39.8% year-on-year pickup. Meanwhile, its incomes from capital contributions and share purchases edged lower. Saigon Thuong Tin Commercial Bank (Sacombank) obtained VND110.3 billion in after-tax profit in January-March, down 81.3% versus the year-earlier period. Its risk provisions dropped by VND280 billion. Sacombank explained its income from lending operations climbed to VND545 billion in quarter one but deposit interest payments rose by VND1.26 trillion as deposit rates went up. Meanwhile, the lender’s operation costs surged by VND338.6 billion in the first quarter, including VND132 billion in wages and other benefits for employees. Bank for Investment and Development of Vietnam (BIDV) reported its operation costs rose by VND588 billion and risk provisions by VND900 billion, resulting in its after-tax profit falling to VND1.53 trillion. Agreement to boost co-operation between Vietcombank and BSR The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) signed a new agreement on Saturday to improve its partnership with the Binh Son Refining and Petrochemical Co Ltd (BSR). Under the new agreement, the Quang Ngai-based refinery company will receive assistance from Vietcombank in financing, foreign currency trading, individual lending and card payments, with preferential policies for customers. Nguyen Hoai Giang, BSR's Chairman of the Management Board, said that the latest agreement aims to improve the partnership between the refinery and Vietcombank. The agreement will create more opportunities for both sides, allowing each company to reach their full potential, Giang said, adding that the agreement is also designed to tighten the companies' relationship after a 10-year partnership. Vietcombank officials said they appreciate the partnership, since BSR is the first Vietnamese refinery, and today leads the industry, said Nghiem Xuan Thanh, Vietcombank's Chairman of Management Board. Under the new agreement, the Quang Ngai-based refinery company will receive assistance from Vietcombank in financing, foreign currency trading, individual lending and card payments, with preferential policies for customers.— File Photo Thanh added that Vietcombank has helped finance BSR's short-term and long-term projects with loans of VND5 trillion (US$222.2 million). Binh Son Refining and Petrochemical Co Ltd is assigned to manage and operate the Dung Quat Oil Refinery, which leads Viet Nam's oil refinery industry and provides high-quality employees for the industry. Since the Dung Quat Oil Refinery was first opened, BSR has earned revenues of VND710 trillion from producing more than 36.2 million tonnes of oil and gas, and contributed VND120.3 trillion to the State budget. BSR has also imported more than 40 million tonnes of crude from overseas suppliers. Bank employees get raises in Q1 Commercial banks employees have received higher salaries in the first quarter this year thanks to the improved performance of banks. According to the financial reports released by banks recently at their shareholders' meetings, employees at Vietcombank got the highest monthly average wage of VND23.5 million (more than US$1,000) in Q1 this year, up VND5 million against the same period last year. The bank, which has 14,750 employees, spent VND1.016 trillion on wages in the period, up 30.7 per cent against Q1 2015. Vietinbank also reported an average salary rise of VND2.4 million per month in Q1, helping more than 21,000 employees to receive VND20.6 million as monthly salary. The bank, whose pre-tax profits surged 54 per cent in the first three months this year to VND2.404 trillion, set aside VND1.3 trillion for its employees' salaries, up 21 per cent year-on-year. Though the number of employees increased 24 per cent to 23,834 due to its merger with Mekong Housing Bank (MHB), Bank for Investment and Development of Viet Nam (BIDV)'s salary costs in Q1 this year still rose 18 per cent to VND1.25 trillion. Average monthly wage at the bank was VND17.5 million. After the merger with MHB, BIDV's provision fund in Q1 nearly doubled in the same period last year to nearly VND2 trillion, causing the bank's pre-tax profit to decline to roughly VND2 trillion. Though the business results were not as good as expected with total assets declining from VND124.8 trillion by the end of 2015 to VND122.2 by the end of Q1, Eximbank's total salaries for employees still rose from VND243 billion to VND267 billion, helping a bank employee receive a monthly wage of VND14.5 million. According to experts, finance and banking have been among the industries that have offered the highest salaries to mid-level and senior managers. A report from Navigos Search, a personnel recruiting agency in Viet Nam, said that the highest salaries were offered by employers in the banking and services sectors in the first quarter this year. Senior directors of a commercial bank and a customer services company get a monthly salary of over VND200 million. Monthly salaries from VND100 million to VND145 million were also offered to candidates by companies in the banking, healthcare, customer services and trading in Q1 this year, Navigos reported. Asia's No.1 coffee, exhibition brand opens in HCM City The Vietnam Cafe Show 2016 will be held from May 12-14 at the Saigon Exhibition and Convention Center in HCM City, attracting coffee, beverage and dessert exhibitors from eight countries. The event, the first of its kind in the country, is the Vietnamese edition of the world-class exhibition, the Seoul International Café Show. The exhibitions are organised by Seoul-based Exporum. The exhibition covers not only coffee and tea but also desserts, bakery, ice cream, raw materials, machinery & equipment, chocolate, cafe interior and franchise businesses. In addition, it will offer opportunity to discuss business matters and exchange ideas through events like "Sweet Class", "Coffee Training Station" and "Cherry's Choice". The exhibition will launch the first the Vietnam National Barista Championship. There will be 28 competitors joining the main event, with the winner going to the World Barista Championship organised by WCE (World Coffee Event) this June. Visitors will experience thrilling and exciting moments throughout the first international barista Championship sanctioned by WCE. Visitors will also meet the "World Barista Championship All-stars" which will give them a chance to taste delicious coffee made from the world's best champion baristas. VN Int'l Medical-Pharmaceutical show to begin About 350 enterprises from 30 countries and territories will participate in the 23rd Viet Nam International Medical-Pharmaceutical Exhibition in the capital next week May 11-14. The exhibition is a good opportunity for firms to advertise their products, foster technological transfers, seek new partnerships and expand their markets, Vu Dinh Anh from the exhibition's management board said at a press conference last week. It will showcase medical and pharmaceutical technical equipment, hospital interiors, diagnostic and laboratory equipment, and healthcare services, he said. The Nam Hai comes up ‘Gold’ in Luxury Travel’s annual awards Almost a decade after bringing a new level of luxury to Vietnam’s central coast, The Nam Hai has now become a shining example of how to age gracefully. Proof is in the pages of the current May issue of Australia’s Luxury Travel magazine, whose readers have placed Vietnam’s most acclaimed beach retreat — which will celebrate its 10th Anniversary in December — on the publication’s annual ‘Gold List.’ The Nam Hai ranks fifth among ‘Best Overseas Resorts’ and 19th among ‘Best Overseas Romantic Properties.’ The GHM-managed hotel on the outskirts of Hoi An was the only Vietnamese resort to make the ‘Gold List’ in any category. “In the hotel business, it’s difficult to maintain that edge, let alone get better with age,” said Anthony Gill, The Nam Hai’s general manager. “The only way it’s possible is if you have the right people. And I think we do. Our team is always looking for ways to improve the guest experience. This accolade is testament to that.” Launched in 2005, Luxury Travel’s ‘Gold List’ recognizes “the ultimate in luxury travel in Australia and around the world,” according to the magazine’s editors. Voting is conducted online from October through January. “Thousands” of votes were tallied over this last period, according to Belinda Craigie, Luxury Travel’s digital editor — “the highest number of votes we’ve ever received,” she said. Vietnamese prefer to patronize foreign-made goods The vast majority of the nation’s consumers say they prefer to purchase foreign made products instead of lower priced local alternatives, according to Dinh Thi My Loan, president of the Vietnam Retailers Association. Speaking at a recent conference in Hanoi, Loan told guests that consumers are reporting they buy foreign goods because they perceive them as having higher quality and because they have upscale brand names. “The brand names carry with them a certain prestige that similar locally produced products don’t possess,” said Loan. “In the past, far too many businesses automatically assumed that the lower prices of locally produced goods were a positive and would drive their competitiveness with foreign goods entering the market,” said Loan. “But now they are finding out they were dead wrong,” she said. For some consumers in the nation, especially the younger ones, current fashions and trends are an important consideration when making the decision to acquire a product, said Loan. Through television, these consumers are becoming increasingly aware of the fashions and trends in other parts of the world. Hence, the global fashions and trends dictate the preference for foreign goods for these individuals. But increasing numbers of people are going for international brands rather than local ones, she said, because the product changes the image these consumers have of themselves. It makes them feel proud, more beautiful or handsome, and smarter when they buy imported items because, to them, the purchase is a status symbol that depicts social acceptability and class. At the Metro, Aeon and Lotte supercentres, which are rapidly gaining in domestic market share, foreign produced goods are pushing Vietnamese made products right off the shelves. Currently, over 90% of all instant noodles at these stores come from Thailand, the RoK, Japan or Malaysia. Mr Loan said even though a foreign package of noodles costs up to US$.80 (VND16,000), three-fold that of a Vietnamese packet of noodles, many consumers still prefer them. “When respect to glass housewares you won’t find many stores selling Vietnamese made products,” said Mr Loan. “Most plates, bowls, cups and other glassware products are imported from Thailand, Germany or China.” Overflowing with all sorts of imported goods, the Vietnam market is grappling with a serious lack of locally manufactured products in many retail establishments and product lines. The attitudes and perceptions of consumers toward their choice of goods is sometimes fickle, said Loan. For example, electronic goods from Italy may be perceived as of poor quality but Italian clothing is perceived as fashionable and high quality. Meanwhile, electronic goods made in Thailand are perceived with positive attitudes while their clothing and footwear is negatively perceived, she said. Echoing similar sentiments, Nguyen Thi Thuy, deputy general director of Saigon Co.op said: “The problem with patronizing local products is that they are usually of inferior quality and in many instances downright shabby.” If you check out a foreign product, you will quickly realize that what they offer for a little higher price is generally of substantially better quality. I don’t find this encouraging for local companies, she said, unless they further improve their products durability and quality and institute brand building strategies to fully meet the needs of the nation’s consumers. Lao Cai making continuous effort to attract investors The northern mountainous province of Lao Cai promises to improve the business environment to make it easier for companies to carry out projects here. The representatives of authorities and the government agencies of the province reaffirmed the commitment at the conference on Lao Cai Investment and Tourism Development 2016 held last Saturday in Lao Cai. The province is currently calling for investment in 26 projects in various fields such as agriculture, forestry and fisheries, industry and capital construction, and tourism and services. “We hope that companies will continue suggesting to the local authorities how to better support them. Also we hope you will propose and carry out projects that will efficiently and sustainably realise all the potentials and strengths of the province,” said Nguyen Van Vinh, Lao Cai Party Secretary and Chairman of the Lao Cai People’s Council. “The Ministry of Planning and Investment promises that we would continue working with related ministries to improve policies, eliminate bottlenecks and create an conducive legal environment that ensures fair access to resources of all companies,” said Nguyen Van Hieu, Deputy Minister of Planning and Investment. “So far there are no Japanese companies in Lao Cai but I expect Japanese companies to have more interest soon. JETRO would like to organise investment mission to Lao Cai and neighbouring provinces such as Yen Bai and Phu Tho, using Noi Bai-Lao Cai expressway in the near future,” said Atsusuke Kawada, chief representative of JETRO Hanoi. In recent years, Lao Cai has continuously stood in the Top 10 of the country in terms of the Provincial Competitiveness Index. Lao Cai is a mountainous province in the north of Vietnam with a population of over 690,000, belonging to many ethnic groups. The province’s border with Yunnan province of China is approximately 182,086 kilometres long with one international border gate, one main and four auxiliary border gates. Lao Cai is connected to the world through Lao Cai-Hanoi-Haiphong expressway which directly connects to Hekou-Kunming highway. The construction of the road linking Noi Bai-Lao Cai highway to Sapa has started while the roads linking Noi Bai-Lao Cai highway to Lai Chau and Tuyen Quang provinces are being studied. Various attraction points to Lao Cai include diverse cultural heritages, a temperate climate, and plenty of natural mineral resources. The 2,134 metre high Fansipan peak, called the Roof of Indochina, plus the 25 ethnic minorities each with their own distinctive traditions, are big advantages to develop eco-tourism, resorts and spiritual tourism. The temperate climate and the diversified fauna and flora system endowed with rare genetic resources, enable the province to develop forestry and agro-forestry. The largest resources in Vietnam of apatite, iron, copper and graphite enable the province to develop mining and related industries. Phase 2 of Tra Vinh wind power plant gets green light The Tra Vinh Provincial People’s Committee in the Mekong Delta recently approved the construction of the second phase of the RoK-Tra Vinh wind power plant in Truong Long Hoa commune, Duyen Hai town. The project will be invested by the Woojin Construction Co. from the Republic of Korea (RoK) with total investment of VND4.9 trillion ($247.6 million). The 96 MW plant will span nearly 2,500 ha of land and water surface and have 48 wind turbines expected to generate more than 332,438 MWh of power per year. The project aims to support the national power grid and ensure energy security for the province and surrounding localities. Construction of the project’s first phase, worth $130 million, began in February and will have a total capacity of 48 MW. Upon completion next February it will generate over 173,000 MWh of power every year. The province plans to build six wind power projects in coastal areas in Duyen Hai district and Duyen Hai town, including three in Truong Long Hoa commune, two in Hiep Thanh commune, and one in Dong Hai commune. Shinhan Bank Vietnam appoints new General Director On March 10, Shinhan Bank Vietnam announced the appointment of Mr. Shin Dong Min to the position of General Director. As one of the leading financial experts in the Shinhan Financial Group (SFG) in South Korea, Mr. Shin is expected to lead Shinhan Bank Vietnam to become one of the strongest foreign banks in Vietnam in his new term thanks to his deep understanding of the country. During his 28 years of experience with SFG Mr. Shin spent ten years working in Vietnam’s finance and banking industry. After taking on the Deputy General Manager position at Shinhan Bank’s Ho Chi Minh City Branch from 2004 to 2007 he returned to South Korea before coming back to Vietnam in 2010 to support the bank’s expansion strategy. He was appointed General Manager of Shinhan Bank’s Binh Duong Branch in 2010, General Manager of Shinhan Bank’s Ho Chi Minh City Branch in 2011, and Head of the Northern Division and General Manager of Shinhan Bank’s Hanoi Branch in 2013. Thanks to his experience and knowledge Mr. Shin has overseen the Hanoi Branch becoming one of the leading banks in the capital and also established a solid foundation for the bank in the northern region. Shinhan Bank Vietnam is a part of Shinhan Bank in South Korea, which is under SFG - the first civilian-controlled financial holding company in the country. Over the last 23 years the bank has built a broad network covering many cities and provinces with 14 branches, which is the largest among foreign banks. Vinamilk to offer bonus shares on 40th anniversary Vinamilk has released documents for its 2016 annual general meeting (AGM) noting the issues up for discussion. Last year’s AGM agreed on a cash dividend of at least 50 per cent of its after-tax profit, with 10 per cent deducted for the development fund and 10 per cent for its bonus and welfare fund. The Board of Management paid out the first interim dividend for 2015 at VND4,000 ($0.18) per share, with a finalization date listing recipients of August 14 and a payment date of September 4. Based on its 2015 business results the Board of Management is proposing the AGM agree to a remaining dividend for 2015 of VND2,000 ($0.09) per share, with a finalization date of June 6 and a payment date of June 16. Regarding its business plan for 2016, the company has targeted revenue of VND44.56 trillion ($1.99 billion), an increase of 11 per cent against 2015’s result, with pre-tax profit of VND10.02 trillion ($449.39 million), an increase of 7 per cent, and after-tax profit of VND8.26 trillion ($370.54 million), an increase of 6 per cent. To mark its 40th anniversary the Board has proposed the AGM approve the issuing and listing of additional shares to existing shareholders, at a ratio of 1:5, with every five ordinary shares receiving one bonus share. The number of bonus shares to be issued will depend on the number of total outstanding shares at the finalization date and will be no more than 241,915,440 shares. The maximum increase to its charter capital will be VND2.41 trillion ($108.11 million). Reverie Saigon among "12 Penthouse Perches to Swoon Over" The Saigon Suite at The Reverie Saigon was listed among the “12 Penthouse Perches to Swoon Over” in a recent article in Travel + Leisure magazine. “The recognition is also testament to the of tourism trends in Ho Chi Minh City and even Vietnam,” said Mr. Kai Speth, General Manager of The Reverie Saigon. “For international media and luxury travelers alike, the country is transforming into a destination with remarkable and luxurious travel experiences.” The Saigon Suite covers nearly 300 sq m with luxury facilities, a dedicated butler service, and stunning views of the sprawling city and the Saigon River. Rates are from $12,000 a night. State business equitization eyes difficulties in upcoming time State owned enterprises (SOEs)’s equitization has been estimated to be quite advantageous for the last five years as it has taken place at companies operating efficiently and attractive to investors. However experts forecast that the activity will be more difficult in the upcoming time as most of the remaining firms in need of equitization have run less effectively. During the phase of 2011-2015, the Government has drastically restructured SOEs with a slew of circulars, decisions and instructions having been issued to speed up their progress of equitization and capital withdrawal. Thanks to these efforts, a total of 485 businesses have been equitized. Most of the equitized firms have been reported better than before performance with equity increasing by 12-18 percent. Equitization has seemed to be advantageous with efficiently operating companies, who have drawn investors’ attention such as Vissan and Cholimex Food. In the upcoming time, the program will take place at less efficient and unattractive ones whose equitization should have been sped up beforehand. Hence, experts forecast that SOE equitization will be more difficult. During the same phase, state own enterprises withdrew over VND11 trillion (US$493.46 million) from investments out of their fields. Experts said that the capital withdrawal has failed to meet expectations with low divested amount and losses, consequences of ineffective non-core investments. For instance, many businesses had purchased shares of Joint Stock Commercial Bank for Foreign Trade of Vietnam at the price of VND70,000 per share, which dropped to VND10,000 when they divested from the bank. A number of others have reported difficulties in asset evaluation mechanism, brand valuation, handling outstanding debts while drawing capital out from non-core fields. Vietnam’s shrimp exports to US reach over US$176 million Vietnam’s shrimp exports to the United States in 2016 are recovering, hitting US$176.8 million as of April 15 - an increase of 25% over the same period last year. That was a marked improvement compared with last year when revenues fell by 38.3%. The export growth was attributed to the average anti-dumping tax of 0.91% from the ninth period of review, which is significantly lower than the 6.37% tariff of the previous review. In addition, the US demand for shrimp edged up as a result of falling prices. The US remained the biggest importer of Vietnamese shrimp, contributing to nearly one fourth of the country’s total revenues from shrimp shipments. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s frozen giant tiger prawns are increasingly competitive in terms of price in comparison with those from India, Thailand, Indonesia and Malaysia. VASEP predicted that Vietnamese shrimp exports to the US would continue to grow in the second quarter because of the falling US dollar and goods prospects from the signing of the Trans-Pacific Partnership. Shrimp exports in the first quarter brought in a total of US$619.2 million, up 7.9% over the same period in 2015. Revenues in the second quarter are expected to increase by 10% year on year to US$788 million. Hanoi starts work on Nhan Chinh Park project The authorities of Hanoi's Thanh Xuan district officially commenced construction of Nhan Chinh Park on May 8 in the presence of Politburo member and Secretary of Hanoi Party Committee Hoang Trung Hai. The park is located in Cau Giay and Thanh Xuan districts with a total area spanning over 140,800m2 including over 44,800m2 in Cau Giay district and 96,000m2 in Thanh Xuan district. It has a total investment of over VND298.7 billion (US$13.44 million) sourced from the budget of Thanh Xuan district. The land clearance for the park began in 2003 with a total expense of roughly VND40 billion (US$1.8 million). The park covers an area of around 13.23ha including a lake measuring 8ha to regulate and drain water, along with a recreation centre and an outdoor sports ground with an area of 5.2ha, among several other facilities. It is scheduled to be built in 390 days and completed by June 2017. Addressing the ground-breaking ceremony, Chairman of the Thanh Xuan district's People's Committee Nguyen Xuan Luu emphasised the necessity of building the Nhan Chinh park, saying that Thanh Xuan district has a large population size but is yet to have a park to serve the recreational needs of local people. HSBC: Core inflation manageable Disinflationary pressures from lower commodity prices are starting to fade in Vietnam while HSBC Bank expects core inflation remains manageable because the increase in output prices is modest. In a report released last week, the bank said April brought further evidence that the disinflationary pressures from lower commodity prices are bottoming out. Notably, the input price sub-index in the April Purchasing Managers’ Index (PMI) report jumped 3.9 points to the highest level since August 2014. “We do not think the index will continue to accelerate further on a sustainable basis - oil prices, while showing signs of bottoming out, remain well behaved. Overall inflation remains manageable,” the bank said. Headline inflation rose to 1.9% year-on-year in April, marking the sixth consecutive month of increase, but the sequential rise was mainly driven by food inflation, which has been driven up by El Nino-related supply-side disruptions. Meanwhile, core inflation rose 0.2 point to 1.8%, but this was more of a technical rebound after a moderation in March. Over the past year, core inflation has remained steady at around 2%. “We expect this to remain the case through 2016. As such, we think that the State Bank of Vietnam will keep the open market operations (OMO) rate unchanged through the first half of 2017,” the bank added. According to the report, the April manufacturing PMI is a testament to Vietnam’s manufacturing competitiveness. Amidst disappointing data in the region, the Nikkei Vietnam manufacturing PMI rose to a nine-month high, jumping to 52.3 from 50.7 previously. The resilience of Vietnam’s manufacturing sector does not necessarily reflect robust global demand but continued new investment into the country. In 2015, disbursed foreign direct investment (FDI) climbed to a record high US$14.5 billion, thanks to strong inflows from South Korea and Malaysia. Total FDI disbursements had been up US$3.5 billion as of March, a 15% year-on-year increase since the beginning of this year. With new factories commencing operations, output has continued to rise despite sluggish external demand, driving the continued outperformance of Vietnam’s manufacturing sector vis-à-vis its neighbors. Since early this year, export growth improved to 6% year-on-year in April, up from 4.1% in March. This is weaker than the growth rate recorded during the same period last year, but sequential momentum has been improving. Shipments of smartphones and phone parts continue to be the driver, rising 25% year-on-year in April, up from 13.6% during the same period last year. The strong growth in the first quarter of 2016 was partly buoyed by new product launches by Samsung. However, whereas manufacturing momentum has fizzled in the rest of the region, the recovery in Vietnam looks to be more sustainable as it is driven by new FDI coming online. HSBC expected FDI to drive a recovery in export growth to 10.1% year-on-year in 2016, up from 7.9% in 2015. Interbank rates drop sharply Interest rates for Vietnam dong loans on the interbank market have fallen strongly since banks lowered deposit rates. The average overnight rate edged down 1.23 percentage points to 3.73% per year over nearly one month earlier while the respective declines of one- and two-week rates were 0.82 and 0.43 percentage point to 4.19% and 4.57% a year. Experts of Bao Viet Securities Company (BVSC) said in a report that the sharp interbank rate falls were attributable to declining lending rates. A number of major banks, including Vietcombank and BIDV, have announced rate cuts for medium- and long-term loans to support businesses. Vietcombank said it had set aside VND300 billion (US$13.4 million) to lend to enterprises to implement their business plans. The lender applies annual interest rates of less than 10%. Small banks are carrying out programs to provide preferential loans for corporate customers. According to the State Bank of Vietnam (SBV), lending rates for the manufacturing sector usually hover in a range of 6.8% and 9% per year for short tenors and 9.3-11% for medium and long tenors. Open market operations (OMO) saw a net withdrawal two weeks ago after three consecutive weeks of net injections. A net withdrawal on OMO, coupled with tumbling interbank rates, indicated liquidity in the banking system is stable. The exchange rate between the dong and the U.S. dollar has climbed by VND10 at banks, in line with mild rises of the average daily interbank exchange rate between the two currencies that has been informed by the SBV. It has been stable this year thus far. Notably, it has moved sideways in the past two months at some VND22,300. BVSC forecast the average daily interbank exchange rate will remain stable in the short term. Banks to face expansion ban if found to break dollar interest rate rule Commercial banks would be banned from opening new branches, transaction offices and automatic teller machines (ATMs), and from running certain operations if they are found to offer higher-than-permitted interest rates for dollar deposits, according to a SBV document released last Friday. In a document sent to the SBV’s Banking Inspection and Supervision Department and its branches in provinces and cities, the central bank said a number of banks have offered dollar deposit rates higher than zero to attract depositors. The SBV governor has ordered the Banking Inspection and Supervision Department and the SBV’s local branches to closely monitor bank deposit rates. In September and December last year, the SBV slashed the U.S. dollar deposit rate for corporate and individual customers to zero in a bid to prevent dollar hoarding and discourage dollar borrowing and lending. There is concern that the zero rate might lead dollar funds to flow out of banks, piling pressure on the exchange rate. Experts optimistic about stock market Experts at securities firms have said the equity market will continue going up, backed by a number of factors like high liquidity, active foreign buying and gains of blue chips. Phan Dung Khanh, head of investment analysis and consultancy at Maybank Kim Eng Securities Company, was quoted by Dau tu Chung khoan newspaper as saying that the winning streak remains strong as cash has been flowing into blue chips. He added the VN-Index will enter into the next resistance range of 630-645 points. Stocks edged up on the HCMC market last week as the VN-Index added 1.36% at 606.52 points while the Hanoi exchange saw the HNX-Index skidding 0.39% at 80.37 points. The average matched volume inched down 1.3% to 121.8 million shares per session on the southern bourse, and totaled 40.7 million shares per session on the Hanoi exchange, a 4% pickup. The market rallied during the three sessions immediately after the extended Reunification Day and International Day holiday that ended last Tuesday. Last Wednesday, large caps like VIC, VNM and GAS and bank stocks made good gains, leading the main index to add 0.12%. Bank stocks remained the main driver for the market rally in the next session.   According to Viet Capital Securities Company, the VN-Index last Friday opened up and stayed in the green in the entire session, briefly rising to 609 points before closing at 606.52. VCB shot up 3.2%, contributing two points to the main index. The banking sector also saw rises of CTG with 3.6%, BID with 2.3% and MBB with 2.3% after lenders announced strong earnings in the first quarter of this year. Heavyweights VIC (up 1.9%) and MSN (up 2.1%) were among top gainers. Overall, the VN-Index ended the week up a total of 1.4%, marking the fifth consecutive week of gains. KSA registered the biggest increase of 13.3% last week as the Binh Thuan-based mining firm reported VND1.1 billion after-tax profit in quarter one, up a staggering 83% from a year earlier. In contrast, GTT, which is active in the transport and warehouse sector, plummeted 11% on news about its delisting from the HCMC market as its accumulated losses had reached VND 621.5 billion by end-2015, higher than its chartered capital of VND435 billion. The final trading day of GTT shares is May 27. Foreign investors were net buyers on the HCMC exchange last week, net purchasing VND290 billion worth of shares. They picked MBB shares worth VND66 billion, followed by MSN shares with VND63 billion and VCB shares with VND59 billion, and offloaded VIC, BHS, HSG and SSI. These investors net sold VND2.6 billion worth of shares on the Hanoi market, chiefly PVS and KLS, while they picked VCS, SHB and NET. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR