BUSINESS IN BRIEF 12/5 E-pay, consumer trust sought in e-commerce Developing the e-payment system together with improving the trust of consumers was critical for an e-commerce boom in Viet Nam, experts said at a conference on May 11. Deputy Minister of Industry and Trade Do Thang Hai said at the conference jointly held by the Viet Nam Institute for Trade and Vietinbank that the development of online payment services was still at infant stage in the country where e-commerce was growing rapidly. The ministry's statistics revealed that business-to-consumer (B2C) revenue touched US$4.07 billion last year, a whopping rise of 37 per cent last year. The growing popularity of internet and technology devices with 45 per cent of the 90 million population having Internet access coupled with improved legal framework was enabling e-commerce to hit a revenue of billions of dollars by 2020, experts forecast. However, the development e-payment services was limited, despite the promulgation of the government's decree about cashless payment in 2012, which failed to support the development of e-commerce in particular and socio-economic development in particular, Hai said. According to Le Thi Ha from the Department of E-commerce and Information Technology, cash remained the dominant payment method among e-commerce websites. She cited statistics showing that direct payment, cash on delivery and bank transfers were accepted at 87 per cent, 64 per cent and 77 per cent of surveyed e-commerce websites while only 25 per cent accepted online payments. Phan The Thang from the Viet Nam Competition Authority said that the age-old habit of using cash and a popular thinking of seeing products before payment, the lack of trust of consumers on e-commerce and the underdeveloped e-payment system were among causes for the preference of cash. "It is important to promote the development of e-payment system, an indispensable subset of e-commerce, to improve trust of consumer and business," Nguyen Thi Nhieu, from the Viet Nam Institute for Trade, said. Nhieu said the e-commerce boom in China revealed that it was the trust of users to the online payment system that fuelled the boom. The online payment infrastructure in Viet Nam now included e-wallets, card switching system, payment cards, internet banking, mobile banking and credit cards, according to the Viet Nam E-commerce Report 2015. "Enhancing security is also very important to developing online payment," Nhieu said. Nhieu urged the Government to have policies to encourage the development of e-commerce as well as e-payments and encourage the participation of the private sector in investment in technical infrastructure for e-commerce. Thang said greater attention must be paid to issues such as protection of consumer rights. "Quality products will decide the long-term development of e-commerce," he added. However, poor quality remained the biggest barrier to making purchasing decisions, followed by prices and shipping services, according to the e-commerce report. Experts said it would require the co-ordination of the Government management agencies, e-commerce firms and consumers to enhance the protection of consumer rights in e-commerce. The human resource for e-commerce industry was also necessary to promote its development, experts said at the conference. Under the national e-commerce programme for the 2014 to 2020 period, by 2020, some 30 per cent of the population would be online shoppers with an average spending of $350 per person, 60 per cent of businesses with an online presence, 80 per cent of businesses involved in e-commerce, with 100 per cent of the supermarkets and shopping centres accepting card payment. B2C revenue would grow 20 per cent per year to reach $10 billion by 2020, accounting for 5 per cent of the country's total retail sales. Vietnam to ease FDI operations The Vietnamese government and State agencies are attempting to create favourable conditions for foreign investors, including those from South Korea, according to Deputy Minister of Industry and Trade Trần Quốc Khánh. Speaking at a conference held in Hà Nội on Tuesday, Khánh expressed hope that foreign companies would make significant contributions to Việt Nam’s economic development. Hosted by the ministry and the South Korean embassy in Việt Nam, the conference aims to discuss measures supporting foreign-invested enterprises and address the difficulties in implementing new policies on investment, trading, tax, export-import and customs. Trần Thanh Hải, deputy director of the ministry’s Export Department, said South Korea was an important partner of Viet Nam. Hải said the government and the ministry wanted FDI enterprises to increase their investment in new and existing projects in Việt Nam by focusing on support industries and material production for the textile, footwear and electronics industries. He also called on foreign-invested enterprises to foster the production of high-value exports and form supply chains with Vietnamese businesses, with the aim of increasing the volume of local goods produced in Việt Nam. The director of the ministry’s Institute for Industry Policy and Strategy, Trương Thi Chí Bình, said firms with foreign direct investment (FDI) should make the most of new-generation free trade agreements signed between Việt Nam and its partners to boost production and create high-value products. During the conference, representatives of the Korea Trade-Investment Promotion Agency mentioned issues concerning tax incentives when using materials produced in Việt Nam and the difficulties facing South Korean firms due to mandatory filing of import tax returns. Statistics show that South Korean FDI enterprises contributed 25 per cent to Việt Nam’s total export value in 2015. The combined export value of the two South Korean-invested Samsung Electronics Việt Nam plants in the Thái Nguyên and Bắc Ninh provinces hit US$30.2 billion in 2015, contributing 27 per cent of the total export turnover created by FDI firms nationwide and some 19 per cent of the country’s export turnover. Incentives for solar power expansion discussed Deputy Prime Minister Trinh Dinh Dung on May 11 chaired a meeting with ministries and departments to discuss possible incentives for solar-powered projects. Dung asked the Ministry of Industry and Trade to continue refining a draft on the PM’s decision on solar energy development, adding that it should consider experience acquired by developed nations and developing countries throughout the process. Areas designated for renewable energy development should be zoned off, he said, adding that the PM’s draft decision will be reported to the government’s regular meeting before being signed. According to Deputy Minister of Industry and Trade Hoang Quoc Vuong, existing policies and mechanisms, including the 2004 Electricity Law, fail to provide financial incentives for solar power growth. The draft PM’s decision is expected to clarify relevant investment procedures and power price subsidies to the construction of solar energy facilities. In the morning the same day, Deputy PM Dung also held a meeting with ministries and agencies concerned to clear hindrances to underway power projects in the form of build-operate-transfer (BOT).- TPP to help Vietnamese businesses access Australian market The Trans-Pacific Partnership (TPP) agreement will open up great trade and investment opportunities for Vietnamese and Australian businesses, a business leader said at a workshop in Ho Chi Minh City on May 11. Deputy Chairman of the city’s Union of Business Associations (HUBA) Pham Ngoc Hung said Vietnam is currently benefiting from a preferential tariff scheme which Australia applies for ASEAN member countries under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). However, when the TPP officially comes into effect, Vietnamese businesses will enjoy greater favourable conditions in accessing the Australian market, he added. A representative from Australia’s Victoria State authorities said Vietnamese businesses can invest in some of the state’s potential areas such as construction-real estate, finance, and beauty care service. He noted local authorities will also provide special supporting programmes and treatments when Vietnamese businesses invest in certain sectors, such as pharmaceuticals and pharmaceutical equipment, green energy, international education, and food. According to the Vietnam Trade Office in Australia, export turnover of the Southeast Asian country to Australia is modest compared to the Australian market’s demands. Bilateral trade between the two countries reached 1.2 billion USD in the first quarter of this year, of which Vietnam shipped 635 million USD worth of goods to Australia and spent more than 560 million USD on Australian goods. Roundtable: Inclusive business, leverage for SDGs A roundtable entitled “Unleashing inclusive business for Sustainable Development Goals (SDGs) in Vietnam” took place in Hanoi on May 11 to confer how inclusive business can be leveraged for the SDGs in the country. The event was hosted by the Inclusive Business Accelerator (IBA), Netherlands Development Organisation SNV, Business Call to Action (BCtA) under the United Nations Development Programme (UNDP), The Partnering Initiative (TPI) and Business Fights Poverty. Present at the event were representatives from the Ministry of Planning and Investment, the Vietnam Chamber of Commerce and Industry (VCCI), the Asian Development Bank, the United Nations Industrial Development Organisation (UNIDO), embassies and leading enterprises such as Viettel, Traphaco, TH Milk, and Suntory Pepsico. Attendees discussed opportunities for the private sector to tap into new markets through engaging in inclusive business, a business initiative that contribute to poverty reduction through the inclusion of low-income community, and how the momentum of SDGs implementation can be leveraged to improve the environment for inclusive business at the national level. They also recommended what can be done at a sector level to drive the necessary collaboration to build enabling ecosystems for inclusive business to accelerate the achievement of the SDGs. Presenting Ecofarm as an example, the agribusiness’ Chairman Nguyen Hong Quang said the company engages in inclusive business by creating linkages between the business, farmers, the government and scientists. It has been working to boost technology transfer and R&D activities, help farmers access soft loans and technical support, and build agricultural cooperatives, Quang noted. The company has also developed large-scale farms of vegetables, fruits and crops in Phu Quoc, Long An, and Dong Thap, where local farmers are encouraged to apply technology and provided with seeds and microbial organic fertilisers, he added. Meanwhile, Traphaco Group, a medicine manufacturer, has established one of its factories with a 100-hectare farming area of medicinal plants in Sa Pa, northern Lao Cai province, that employs about 600 local farmer households, according to the company’s chairman Nguyen Huy Van. Banks must break tradition for development: experts Accelerating the use of internet and mobile technology will be essential for Viet Nam's banking system as the country looks to reach international standards, experts said during The Asian Banker Summit 2016 in Ha Noi today. Addressing the event, Prime Minister Nguyen Xuan Phuc said Viet Nam will speed up the reorganisation of credit institutions and enhance the efficiency of banking operations for a more stable and competitive economy. "The overall banking picture has positively changed after five years of reforms, significantly supporting economic stability and growth, and curbing inflation," he said. State Bank of Viet Nam Governor Le Minh Hung said the country's integration into the global economy, especially since becoming a member of the ASEAN Economic Community and signing the Trans-Pacific Partnership trade deal, means local banking institutions and administrators have to improve their capacity. "We expect more active contributions from foreign investors to the domestic banking restructuring process in the future, and I believe the years ahead will bring about greater opportunities for all of us," he said. "There are three things that are really important: technology, technology and technology," Schulte Research International Chairman Paul Schulte told Viet Nam News when asked what be the key for domestic banking development. "What can happen in Viet Nam is that a banking system can be created on cell phones, a fact happening all over the world. It is happening very quickly in Kenya, Tanzania and Zambia, and Laos, Cambodia and Indonesia, as well as India and China." Schulte said the challenge for Viet Nam is how to use technology to perform normal banking activities, such as deposits and payrolls, on cell phones. If the country succeeds in doing this, it will be able to reduce expansive banking networks and mobilise capital very quickly. The Asian Banker Chairman Emmanuel Daniel said proper payment infrastructure will be needed to support capital flows, especially as domestic currency becomes more stable and trade flows become more important. "New technology coming on stream today, such as mobile technology, creates opportunities for Vietnamese banks to build ability and reach out to customers in the economy," he said. Daniel said the technology will also help local banks with international connectivity, which is important as banks in other countries are interested in the size of the Vietnamese market. "Today's technology enables Vietnamese banks to withstand competition from foreign banks coming in and at the same time provide similar services to local citizens, which in the past were only provided by institutions with better capital and infrastructure," he said. Dean Young, the head of product management at personal data provider eWise, said his firm focuses on the Australian, American and UK markets and is looking for new customers – both banks and end-consumers – in Viet Nam. "I think Vietnamese banks are ready to take a big step forwards," he said. "Technology is going to underpin local banks making big strives forwards with small risks and investments." Daniel said that many financial technology companies, also known as fintech firms, today aspire to become banks themselves. "It is not the business of banking that they despise, but the behaviour of the incumbents. "But traditional technology players have greater reason than banks to fear the fintechs. A service that one of the larger technology behemoths used to charge a bank US$1 million and 12 months to install, a new fintech company might charge only $40,000. They destroy the price points and value that the traditional technology vendors offer." "Banks that do not think through the process of ‘breaking traditions' will risk becoming exhausted in the next few years as they chase after ‘innovation' like young people chasing after new religions, only to become disillusioned with their ‘chief innovative officers' who did not know better just a moment ago," he said. Alain Chevalier, Chairman of The Asian Banker Summit Advisory Council, said Viet Nam is poised to engage with its neighbours as a major player not only in the Southeast Asian region, but in the entire Asia Pacific. The question remains will Vietnamese banks, many of which are still undergoing a restructuring process after the last financial crisis, be able to take advantage of new technology and "break traditions"? Schulte from Schulte Research International told Viet Nam News: "I was working in Indonesia in the 1980s, when [the banking sector of] this country had serious problems that required regulations, learning and discipline to be solved. Reducing corruption was so important and necessary." He suggested Viet Nam should study the case, while the country has industrious young people who are grabbing onto new technology. "New technology is really a way to democratise money and force competition," he said. Vingroup, Tan Hoang Minh establish strategic partnership Vingroup and the Tan Hoang Minh Group entered into a strategic cooperation arrangement on May 10 in the investment, construction, and operation of premium real estate projects around the country. The two will use their separate advantages to the utmost in jointly developing luxury real estate projects. “The cooperation between Vingroup and the Tan Hoang Minh Group opens up a new direction in the development strategy of the two sides,” said Ms. Duong Mai Hoa, Vingroup’s General Director. “With potential, experience and networks, Vingroup will help Tan Hoang Minh develop and market a number of urban projects.” Vingroup is known as a leading real estate group in Vietnam with a network of consultant partners and leading global designers and quality real estate projects and services. The Tan Hoang Minh Group, meanwhile, owns a number of land plots in prime locations around the country. GE Power acquires HRSG of Doosan E&C GE Power, a division of General Electric Corporation, on May 10 announced that it had clinched an agreement to acquire the heat recovery steam generator (HRSG) business of South Korea’s Doosan Engineering & Construction. The US$250-million deal will help GE Power meet the growing demand for its combined cycle power plant solutions, which utilize HRSG technology, and continue to leverage its expanded customer offerings. Doosan Engineering & Construction (Doosan E&C) currently operates three advanced manufacturing facilities, including one in South Korea and two in Vietnam, with one located at Dung Quat Economic Zone in the central province of Quang Ngai and the other in the northern city of Haiphong. HRSG technology is important to a combined cycle power plant. Capturing the exhaust heat from the gas turbine, the water is converted into steam, which is then used to drive a steam turbine to produce additional power output. HRSG technology is critical to the efficiency of a combined cycle plant and can help generate up to 33% of the power output of the plant. Starting operation since 1977, Doosan E&C HRSG unit has more than 1,400 employees specializing in engineering, project management and manufacturing. It has been a supplier of GE and other industry leaders, and a long-term licensee of Alstom technology since 2007. Steve Bolze, president and CEO of GE Power, said in a statement that the Doosan E&C HRSG acquisition will help the company meet its growth forecast and better manage costs by increasing global manufacturing capacity and further complementing our existing HRSG technology. Bolze added the company is gaining a talent pool that is one of the best in the world. In November last year, GE announced that it had completed the acquisition of Alstom’s power and grid businesses in 20 countries and territories. Doosan E&C HRSG has been a supplier of both GE and Alstom. Upon completion of the sale, it will be integrated into GE Power’s Gas Power Systems business, which already includes Alstom’s HRSG business. The HRSG division manufactures and distributes HRSGs to combined cycle power plants in South Korea and abroad. It has successfully installed and operated HRSGs not only for domestic combined cycle power plants in Boryeong, Busan and Incheon but also combined cycle power plants in various continents around the world, including Europe, Asia and Africa. VAFI urges government to divest large beverage firms The Viet Nam Association of Financial Investors (VAFI) has sent a proposal on the divestment of State holdings and the listing of Viet Nam's two largest beverage companies. In its proposal to the Government, VAFI said the Ministry of Industry and Trade, representing the State ownership, should sell its stake holding in Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) and Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco). The ministry currently holds 90 per cent and 82 per cent stake in Sabeco and Habecos charter capital, respectively. The divestment can help the State raise US$3 billion, which should be used in developing public transport projects, VAFI said. The association said the divestment process should be conducted through auctions to ensure transparency. VAFI also urged that the listing of Sabeco and Habeco on the exchanges be hastened to improve transparency and efficiency. The two beverage companies were privatised more than eight years ago but had not been listed on the exchanges, which combined with poor corporate governance had resulted in inefficient operation, VAFI said. More than 10 years ago, Sabeco was making profits double of what Vinamilk is making currently. Its profits were now, however, three times lower, according to the association. VAFI said the growth rate of Sabeco and Habeco in the last eight years was far below their potential. In October last year, the government had asked the State Capital Investment Corporation to divest 10 State companies, including FPT, Vinamilk and Binh Minh Plastics. Public-Private Partnership model discussed Local and international experts on May 10 met in Hanoi to discuss enhancing the effectiveness of public investment and measures to minimise risks in the public-private partnership (PPP) model. Nguyen Dang Truong, Head of the Public Procurement Agency under the Ministry of Planning and Investment, said in past years, transitioning from traditional public investment to the PPP model transformed the role of the public and private sectors. The PPP model requires an equal balance between the project’s socio-economic benefits for the public and its commercial interests for the investor. “With that in mind, the sides show change their perception of the new role as well as skills and specific expertise, particularly assessing the effectiveness of the project implemented by traditional investment with those having the participation of the private sector and risk-sharing among parties,” said Truong. According to initial calculations, the demand for capital for the development of necessary infrastructure in Vietnam is around 40 billion USD each year, with finance from traditional channels fulfilling from 50 to 60 percent of this. Vietnam will also have to cope with receiving less official development assistance as it has been classified a middle-income country. Given how new the PPP model is in Vietnam, equipping ministries and localities with the knowledge to assess the effectiveness of PPP projects as well as minimise risks for the project are important. Truong stressed that to mobilise capital necessary for infrastructure, the PPP model is an effective method and has been included into the government’s action plan. Besides attracting more capital, the PPP model also brings other benefits such as reasonable sharing between the State and private sector, increased effectiveness in operation and management, better-managed projects, increased accountability and transparency in investment costs. Ian Hawkesworth, Head of the Organisation for Economic Co-operation and Development (OECD)’s Public-Private Partnerships and Capital Budgeting, said that Vietnam needed to create a clear legal framework to serve as a basis for selecting PPP partners, aiming to increase investment capital value and the transparent use of capital to minimise risks. F.HOME project to celebrate the roof-completion ceremony The Da Nang food company Danafood will celebrate the roof-completion ceremony for its F.HOME Project, Da Nang's first condotel design project, in the downtown Hai Chau District on May 15th. The company said the project, which began construction in 2014 with two 26-storey buildings on Ly Thuong Kiet Street, would be handed over to investors in the third quarter of 2016. The project owner also said F.HOME offered comfortable and convenient living conditions, with a retail podium, outdoor pool and luxurious facilities for business and entertainment purposes and even as it is located close to the city's administrative centre. The project managers said that buyers could participate in a draw for five-year leases for just VND100 million ($4,400) per year for 10 apartments on May 15th. Last month, Danafood launched the sale of the last 100 beautiful view apartments of Block A of F.HOME. The F.HOME project will be managed by Japan's K&B International up to five-star standards. Support industry exhibition centre debuts in HCM City The Ho Chi Minh City exhibition centre on support industry began operation in the southern economic hub on May 6. The debut featured 450 products from 54 companies, such as the VitViet Industry Production and Trading JSC, Minh Phuc Print and Packaging JSC and Thai Duong Rubber JSC. Exhibited objects will be updated and replaced constantly to keep up with demand from both suppliers and buyers. The centre will focus its work on building a database of company profiles, connecting supply and demand in terms of technology and finance, and updating the official website of the sector, among others. According to Pham Thanh Kien, Director of the municipal Department of Industry and Trade, the centre aims to gather enterprises working in the sector and help them promote products and production capacity. It is a solution by local authorities to stimulate the support industry, he noted. At the opening ceremony, Hirotaka Yasuzumi, Chief Representative of the Japan External Trade Organisation (JETRO) in HCM City, said Vietnam has a relatively low rate of domestic supply concerning support industry. The sector, however, grows faster in the south than in the north, he added. Minister calls for more energy saving measures Minister of Industry and Trade Tran Tuan Anh has urged the General Directorate of Energy to swiftly outline measures to save energy in line with the Law on Using Energy Economically and Effectively and the Government’s guidelines. Speaking at a teleconference among Hanoi, Da Nang and Ho Chi Minh City on May 6, the minister underlined the necessity to promote administrative reform in the field, aiming to facilitate businesses’ production and business activities. Regarding rural electricity projects, the minister required the General Directorate of Energy to direct the Electricity of Vietnam (EVN) to work with sponsors as early as possible, aiming to build capital plans for the projects. EVN needs to inspect the implementation of key power projects and plants, before rolling out electricity supply plans in the dry season this year and in following years, he stressed. Special attention should be paid to ensuring the strict implementation of the State’s policies and law on environmental protection in developing projects, he added. He also admitted his responsibility related to the recent damage to power poles along the 500KW transmission line in the northern province of Bac Giang, saying that a working group was formed to inspect and assess the incident, thus giving solutions to the problem. The minister requested relevant agencies to examine the safety on the whole line, especially in analysing the effect of El Nino and other natural impacts on the case. According to EVN General Director Dang Hoang An, power production continues stable growth and the national power system is being operated safely, supplying enough electricity for socio-economic activities and daily use in localities nationwide. EVN reported that around 53.1 billion kWh of electricity was generated in the first four month of this year, representing a year-on-year increase of 12.1 percent. In April alone, the national power system produced 14.5 billion kWh, including 13.6 billion kWh of commercial power, up 12.1 percent and 13.4 percent, respectively, against the same period last year. Competition opens to women in start-ups The Embassy of Israel in Viet Nam, the Ministry of Science and Technology's Market Development and Science and Technology Enterprise Department, and the Centre of Business Studies and Assistance will co-organise a start-up contest entitled Start Tel Aviv 2016. The contest was organised following the success of the Startup Israel contest in 2014 and 2015. This year, the contest is unique in that it is open only to female candidates in an effort to promote the roles of women in the start-up community. Registration forms should be sent to the following email address: political@hanoi.mfa.gov.il before May 25. Start Tel Aviv is an international start-up competition held by the Israel Ministry of Foreign Affairs and Tel Aviv city authorities. Representatives of the best start-up companies will be selected from 30 countries worldwide and will have chances to participate in a five-day study tour in Tel Aviv to learn about the start-up ecosystem there. Joining this year's competition, participants hail from Norway, the UK, Germany, Spain, Finland, Italy, Korea, India, Japan and Russia. This is an opportunity for Vietnamese representatives to learn and exchange experiences in a dynamic and cross-cultural environment. Vietjet announces new route from Nha Trang to Thanh Hoa Budget airline Vietjet has announced a new route from Nha Trang to Thanh Hoa with flights arriving and departing four times per week. An airline spokesperson made the announcement in Hanoi saying the flights would begin on June 6 with special introductory prices starting as low as US$25 (VND599,000). Tickets can be booked online at the airlines website at http://www.vietjetair.com/Sites/Web/vi-VN/Home, at www.facebook.com/vietjetvietnam or by smartphone at https://m.vietjetair.com. He said the inclusion of the new long-awaited route is expected to provide a huge financial boost to the airline, with passengers heading to Nha Trang for holiday or business. Total travel time is 1 hour and 45 minutes each way, with flights to Thanh Hoa from Nha Trang taking off at 8:10 am and landing at 9:55 am four times weekly. The return flights depart at 10:30 am in Thanh Hoa and arrive at 12:15 am in Nha Trang. Customers order 130 BMW cars at expo Nearly 130 vehicles were ordered over the four-day BMW World Viet Nam 2016 expo, which ended in Ha Noi on May 10, according to Euro Auto, the sole importer of BMWs in Viet Nam. As many as 12,179 visitors attended the expo, which showcased 100 autos from BMW, MINI, Motorrad and Rolls Royce. Of the total visitors, 500 had a chance to test drive the vehicles. The BMW Group organised the expo to celebrate the company's 100th anniversary. Nguyen Dang Thao, general director of Euro Auto, said the event would be held annually in Viet Nam. The money collected from entry tickets to the expo, valued at a total of VND690 million (US$31,000), will be donated to the charity Heartbeat Vietnam to assist disadvantaged children. VietNam Medi–Pharm 2016 opens The 23rd International Medical-Pharmaceutical Exhibition (VietNam Medi–Pharm 2016) kicked off yesterday in Ha Noi. This year's event attracted 350 corporations and enterprises from 30 countries and territories with 450 booths. Speaking at the opening ceremony, Deputy Minister of Health Pham Le Tuan said that the international medical-pharmaceutical exhibition was held for the first time in 1994 and had become a leading prestigious event in the country. This was also a place where businesses in the medical field could display and introduce their advanced products, as well as, achievements and modern technologies, Tuan added. The exhibition provides a chance for domestic and international experts, producers and entrepreneurs in the medical field to meet, exchange and seek partners, he said. Some main products displayed at the exhibition include pharmaceuticals, health care machinery and equipment, ophthalmological and dental products, healthcare and beauty products and pharmaceutical processing and packaging machinery. There will be special seminars and forums, trade activities, as well as consultations during the time the exhibition is on. The exhibition is jointly organised by the Ministry of Health, Vietnam Medical Products Import–Export Joint Stock Company (VimeddimexVN) and the Viet Nam Advertisement and Fair Exhibition Joint Stock Company (VietFair). 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. 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. Import of automobiles in April declines Some 8,000 complete built up units worth US$182 million were imported to Viet Nam in April, declining 20 per cent compared with the same period last year. This information was revealed in an estimation report by the General Statistics Office. A reduction in the import of vehicles from India, mainly the Hyundai Grand i10, may be the reason for the decrease, notwithstanding the strong growth in imports from Thailand, with pick-up models, such as Ford Ranger, Mazda BT-50 and Toyota Hilux, zooming into Viet Nam. Viet Nam's special consumption tax on vehicles with high-engine displacement will officially increase from July 1 and could be the reason for the robust imports from Thailand. The import of vehicles from China has come to a standstill following Viet Nam tightening control on overloaded trucks, which were blamed for damaging roads and threatening the safety of other travellers. In the first four months of this year, some 28,000 complete built-up units were imported to Viet Nam, worth a total of $669 million, reducing by 20.4 per cent and 23.5 per cent, respectively, compared with the same period last year. Can Tho strives to raise competitiveness index The Mekong Delta city of Can Tho has built a project on raising the provincial competitiveness index (PCI) for 2016-2020 and devised new policies to improve its competitiveness and attract more investors, especially those from foreign countries, heard a conference on May 10. Addressing the conference, which aimed to analyse Can Tho’s PCI and Provincial Governance and Public Administration Performance Index (PAPI) in 2015, Director of the municipal Department of Planning and Investment Nguyen Van Hong said the biggest problem lies with low investment attraction, particularly foreign investments, due to the lack of land, prolonged land clearance and high land lease price. Nguyen Trung Kien, Deputy Director of the municipal Department of Natural Resources and Environment, said his agency will work as an advisor for the municipal People’s Committee to tackle such hindrances. Efforts will be focused on land clearance, compensation, resettlement, administrative reform and staff capacity improvement, the official said, proposing Can Tho organise more dialogues with businesses based in the locality to help them with administrative procedures. According to the annual PCI report for 2015 released by the Vietnam Chamber of Commerce and Industry (VCCI), Can Tho ranked 14 out of 63 cities and provinces in the country, jumping one place from the previous year’s rankings. With 59.81 points, the city was placed fifth in the Mekong Delta and listed among the group of localities with moderately good administration quality. Last year, the city made improvements in terms of unofficial spending, time cost, land access, dynamism and transparency. However, the locality showed worse performance in market joining, employment services, equal competition and support for businesses. The PCI 2015 report was made basing on surveys of 11,700 enterprises across Vietnam, including 1,600 foreign-invested firms. It considers a range of criteria, including land access for businesses, land use, stability, transparency, an equal and competitive environment and legal support for firms. 2015 was the first year when Can Tho stood in the group of cities and provinces recording the highest PAPI, with 39.35 points, ranking second in the list.- Forex market still sees exogenous risks: report The foreign exchange market is still vulnerable to latent exogenous risks, especially crisis risks arising from emerging markets, said the Vietnam Institute for Economic and Policy Research (VEPR). Under an annual report released by VEPR on May 10, the US Federal Reserve's decision to increase its interest rate will make the US dollar stronger, placing pressures on the domestic foreign exchange rate. Assessing the forex rate policy in recent time, economic experts said the State Bank of Vietnam (SBV)’s application of the central rate for the Vietnam dong against the US dollar helps stablise the exchange rate during the last five months. However, they also noted that there are great pressures on the exchange rate as the US dollar is forecast to continue strengthening thanks to the US’s economic recovery and FED’s plan to lift its interest rate, and China’s decision to renovate its exchange rate policy. According to the report, Vietnam’s economy saw satisfactory signals, especially in the last two years, as investment flows to the country are on the rise after the Trans-Pacific Partnership (TPP) Agreement was officially signed. Strong growth of the industrial production and the recovery of real estate market are attributed to the recovery, the report said, noting that the tendency is forecast to remain during the year. Economic experts also mentioned the weakness of the banking system - the foundation of the national economy, saying bad debts are creating potential risks for the system. VEPR Director Nguyen Duc Thanh voiced that Vietnam finds it difficult to realise its set growth target in 2016 and eventually cannot exceed the existing growth rate of 6.5 percent. The country is likely to cope with a higher inflation rate due to the loosened monetary policy and the adjustment of goods and public service prices, he added. Apparel, footwear exporters enjoy upbeat turnover in four months The garment-textile and leather-footwear sectors brought in US$10.5 billion from exports in the first four months of this year. Of the total, the garment-textile sector generated $6.82 billion, an annual increase of 6.2 percent. The Vietnam Textile and Apparel Association (VITAS) said most orders sealed in the period came from major markets including the US, EU, the Republic of Korea and Japan. Overall export revenue increased, but the value of orders stayed unchanged, it said. According to the Ministry of Industry and Trade, a number of apparel producers have secured enough orders for production until the end of the second quarter; others even have enough work for the entire year. The leather-footwear industry earned $3.68 billion worth of export turnover in January-April, up 4.8 percent compared to the same period last year. The Vietnam Leather and Footwear Association (Lefaso) said many firms operating in the sector are ramping up their production to fill export orders in May and June. Apparel, footwear exporters enjoy upbeat turnover in four months The garment-textile and leather-footwear sectors brought in 10.5 billion USD from exports in the first four months of this year. Of the total, the garment-textile sector generated 6.82 billion USD, an annual increase of 6.2 percent. The Vietnam Textile and Apparel Association (VITAS) said most orders sealed in the period came from major markets including the US, EU, the Republic of Korea and Japan. Overall export revenue increased, but the value of orders stayed unchanged, it said. According to the Ministry of Industry and Trade, a number of apparel producers have secured enough orders for production until the end of the second quarter; others even have enough work for the entire year. The leather-footwear industry earned 3.68 billion USD worth of export turnover in January-April, up 4.8 percent compared to the same period last year. The Vietnam Leather and Footwear Association (Lefaso) said many firms operating in the sector are ramping up their production to fill export orders in May and June. ADB wishes to land investments in Can Tho city The Asian Development Bank (ADB) wants to invest in the Mekong Delta city of Can Tho through preferential loans to health care, education and transport infrastructure projects. In a working session with the city leaders on May 10, ADB Country Director in Vietnam Eric Sidgwick said that Can Tho is a potential customer of the bank as it is a fast-growing city in the region. The city needs to balance public debt ceiling and make a list of priority projects as ADB’s loans will be given in descending order of preference, he highlighted, adding that innovative projects are encouraged to enhance the city’s competitive capacity. Meanwhile, Vice Chairwoman of the municipal People’s Committee Vo Thi Hong Anh said that the city is eligible to mobilise 150 million USD in loans during 2016-2020 and it can ensure payment on the debts. She stated that some projects using preferential loans in the locality have received positive feedback thanks to its contributions to local tourism and trade, including Can Tho pedestrian bridge, Cam Thi bridge and Can Tho-An Giang expressway. In addition to health care and transport infrastructure, the city wants to receive ADB’s further support in sewage and solid waste treatment, she underscored. Vietnam eyes sustainable growth of cattle industry A workshop took place in Hanoi on May 10 to discuss solutions for the sustainable development of Vietnam’s cattle industry. The event was organised by the Ministry of Agriculture and Rural Development, the Australian Embassy to Vietnam and the Meat and Livestock Australia (MLA). According to Michael Patching from the MLA, the workshop is part of a cooperation programme between Australian and Vietnamese governments to provide support for beef cattle industry in the country. Over the past three years, Australia has not only exported live cattle to Vietnam but also invested in developing breeding facilities and slaughter houses as well as personnel training in the country, he said. Australia also looks to involve more in local beef cattle value chain, particularly cattle breeding and production safety, Patching added. Director of the Vietnam Ruminant Breeding Centre Le Ba Que recommended ways to develop the country’s herd of milk and beef cattle, saying that policies should be designed to offer more support for cattle farms and breeding cooperative programmes and to boost advanced technology applied in the industry. The enhanced connection between the government, scientists, agribusiness and farmers is needed while more market research and forecast are required to get the production on the right track, he noted. Deputy Minister of Agriculture and Rural Development Vu Van Tam cited the fact that domestic beef production failed to catch up with local demand which has been on the rise over the last three years. It has led to the surge in beef imports, notably from Australia. The number of beef imported from Australia spurred from 3,500 in 2010 to 181,000 in 2014, reflecting a 52-fold growth in just four years. Beef now accounts for about 7 percent of meat consumption in the country and is predicted to reach 12 percent by 2020, the deputy minister said. The ministry plans to facilitate imports of high-quality cattle breeds in line with the domestic production of dairy and beef cattle to satisfy the local demand, he revealed. Businesses seek sustainable operation model Experience in building sustainable business model, a prerequisite condition for enterprises to maintain their competitive edge, was shared at a seminar in Hanoi on May 10. The event forms part of the “Tomorrow is green” campaign initiated by the Embassy and Consulate General of the Netherlands with the aim of building a sustainable and prosperous future. Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), pointed out that a slew of Vietnamese firms have found it hard to pursue sustainable business due to the shortage of capital and mechanisms as well as low administration capacity. Therefore, he said, the sharing of experience in this field is crucial as it contributes to raising businesses’ awareness of social responsibilities, gearing towards environmentally friendly production activities. At the seminar, many companies that are taking the lead in sustainable business presented their achievements as well as challenges they have to face in this regard. Tran Vu Hoai, a representative from Unilever Vietnam, said his company targets safe products, effective water treatment and people’s higher living standards. Participating businesspeople questioned policy makers, economists and researchers about issues relating to construction and growth model. They also consulted domestic and foreign organisations about how to overcome obstacles in running business. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR