BUSINESS IN BRIEF 13/5 Car sales record 42 percent annual surge in April Car sales in Vietnam were posted at 25,725 units in April, soaring by 42 percent from a year earlier, according to the Vietnam Automobile Manufacturers’ Association (VAMA). The sold volume comprises automobiles produced by VAMA members and imported by non-VAMA companies. They include 13,743 passenger cars (up 3.7 percent from March), 9,663 commercial vehicles (up 5 percent), and 2,319 special-purpose vehicles (up 1.3 percent). While 19,500 sold units were assembled domestically, a 2.5 percent decrease from the previous month, 6,225 others were completely built units (CBU) imported from other countries, rising by 29 percent month on month. Regarding the sharp increase in the CBU sales, industry insiders said the special consumption tax rates on some automobiles with engine capacity of over 2,500 cubic centimeters will be raised substantially on July 1. Therefore, local people made use of the pre-July period to purchase imported CBUs to avoid higher prices. In the first four months, 85,414 cars were sold, rising by 28 percent from the same period last year. They included 66,121 domestically assembled units and 19,293 imported ones, up 37 percent and 4 percent year on year respectively. StoxPlus launches upgraded version for FiinPro® Platform  StoxPlus, a financial and business information corporation, has launched an upgraded version of its FiinPro platform on May 11. The FiinPro platform helps traders, investors and analysts improve their analysis of economic and financial market data in the most effective and useful way. The latest version provides additional functions, features and tools in order to help users understand the markets and companies better to make more informed investment decisions. There are five new features or sections in the upgraded platform, which are Technical Analysis, Market Indices, Banks' Off-Balance Sheet Data, Real-time Foreign Trading Data, and Foreign Room. The technical Analysis feature also provides around 35 indicators, which display the price and volume movements that help users realise markets' trends, then trigger their buying and selling. The Market Performance feature, which is displayed in the market summary, presents a brief overview of the market and stocks, including their price-to-earnings ratio (P/E), price-to-book ratio (P/B), Return on Equity (ROE) and Return on Assets (ROA), for both the HOSE and HNX stock exchanges. The latest version of FiinPro also displays banks' off-balance sheet financial indicators with more details and insights of banks' health. Additionally, the updated platform allows users to keep track of the most up-to-date data related to foreign ownership in public companies, including total foreign room, foreign ownership and remaining room, which are combined with the market's real-time movement. Last but not least, in order to improve customer service, FiinPro also supports agents who wish to connect directly and immediately with customers via the chat function whenever users have questions or issues over the applications. Users are able to upgrade from the current Version 1.0.4 to Version 1.0.5 as of Wednesday 12am by clicking the "OK" button on the "Check to update" window, which appears after the application is re-opened. The FiinPro Platform is the first in-depth financial database platform, developed by StoxPlus and QUICK Corp, a part of Nikkei Inc., to cover market and trading data, including level-two data, industry data and macro data, as well as other tools to support research analysts, portfolio managers, investment bankers and other financial professionals via various devices such as PCs, websites and mobile devices. Users will gain access to the country's financial market database, including more than 2,000 public companies nationwide, whose revenue account for some 70 per cent of the country's GDP. Users will also get the chance to utilise many basic and advanced functions and tools that are customised for Viet Nam's markets. VN discusses how best to help foreign investors 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 Tran Quoc Khanh. Speaking at a conference held in Ha Noi on Tuesday, Khanh expressed hope that foreign companies would make significant contributions to Viet Nam's economic development. Hosted by the ministry and the South Korean Embassy in Viet 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. Tran Thanh Hai, deputy director of the ministry's Export Department, said South Korea was an important partner of Viet Nam. Hai said the Government and the ministry wanted FDI enterprises to increase their investment in new and existing projects in Viet 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 Viet Nam. The director of the ministry's Institute for Industry Policy and Strategy, Truong Thi Chi Binh, said firms with foreign direct investment (FDI) should make the most of new-generation free trade agreements signed between Viet 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 Viet Nam and the difficulties facing South Korean firms due to mandatory filing of import tax returns. Statistics show that South Korea-invested enterprises contributed 25 per cent to Viet Nam's total export value in 2015. The combined export value of the two South Korean-invested Samsung Electronics Viet Nam plants in the Thai Nguyen and Bac 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. Bangladeshi officials study Ha Nam’s development experience Director Commercial of the Parjatan Corporation of Bangladesh Nasir Uddin and 26 other Bangladeshi officials learnt about Ha Nam’s experience in socio-economic development during their working visit to the northern locality on May 10. They heard Bui Quang Cam, Deputy Chairman of the provincial People’s Committee reporting on investment attraction, poverty reduction, land management and site clearance policies. Cam said the province has pooled all possible resources for the building of technical infrastructure in industrial zones and clusters as well as issued legal regulations conducive to businesses. In agriculture, Ha Nam focuses on cattle-breeding and fisheries and switches to high-yielding and quality crops, he said, adding that it is also ramping up trade and services, posts and telecommunications, transport and tourism on the back of its synchronous and convenient transport. On land management, he said the locality has cleared hindrances in compensation for displaced residents, especially in key projects. In 2011-2015, the local economy grew by over 13 percent annually, with the industrial production value reaching nearly 80 trillion VND (3.6 billion USD) and the total retail value hitting more than 54.7 trillion VND (2.48 billion USD), up 20 percent annually. Uddin said Ha Nam’s development experience will be useful for Bangladesh. The same day, the Bangladeshi delegation toured Tam Chuc key tourism area in Kim Bang district and Dong Van industrial zone in Duy Tien district. Ambitious growth rate   Việt Nam’s targeted growth rate of 6.7 per cent for this year may be too ambitious given both macro and micro economic conditions, said Nguyễn Đức Thành, President of the Vietnam Institute for Economic and Policy Research (VEPR) yesterday at a conference. Thành made the statement when he and his research team launched the Việt Nam Annual Economic Report 2016, entitled, “Forging new foundations for economic growth.” It is difficult for the country to reach its targeted growth rate of 6.7 per cent this year and an average growth rate of between 6.5 per cent and 7 per cent during the period 2016-20 due to a decline in exports, an increase in inflation and volatile global markets, according to Thành. The world’s economy recorded a growth rate of 3.1 per cent last year – the lowest since 2010, as developed economies showed a slow recovery and developing countries and emerging markets such as Brazil and India declined for a fifth year. The decline of demand for energy and commodities on global markets have affected and will continue to weigh on Việt Nam’s economy, especially in oil exports. Việt Nam’s economy also has to face a number of problems as economic growth was not evenly distributed among the country’s leading sectors. The country’s growth rate was 6.7 per cent last year, however, there was a huge contribution from the industrial production and construction sectors, while income from the agricultural and service sectors declined, VEPR reports. A sharp decline in crude oil prices and exports during 2015 also made the country record a big loss of 6.3 per cent in its budget income last year. Public debt also remained a problem that the Government needed to fix as increasing Government debts may be risky for the whole economy in the future. Meanwhile, local companies have not proven strong enough to grasp opportunities that are being brought in by foreign capital and free trade agreements (FTAs). Thành said that domestic firms were unable to use their capital efficiently while labour quality remained low year after year, even while the number of labourers had increased year by year. Việt Nam had attracted a large amount of foreign direct investment (FDI), however, local companies were unable to benefit from foreign capital due to a lack of necessary skills and knowledge, he said. Đặng Ngọc Tú, vice head of the National Financial Supervisory Commission, said that economic development would face more difficulties this year. He said that the drought would put more pressure on the agricultural sector, and a decline in the electronics markets would cut production in emerging countries, including Việt Nam. The reduction of electronics production would certainly damage the country’s income as electronics exports account for some 50 per cent of the country’s total exports, he said. Tú also warned that Việt Nam should take a more careful look into inflation as it may reach four per cent this year, which is much higher than last year’s rate. Other participants were also concerned over the effects that China could pose to Việt Nam, as the world’s second-largest economy experiences unstable economic growth and is increasing its control over the East Sea in the last few years. They also worried about the fact that China is trying to set up a new “Silk Road” over both sea and land to connect China with the Europe. China’s new ambition will shove countries with underdeveloped mass infrastructures and facilities aside, damaging their economic conditions and relations if those countries are unable to improve their infrastructures or connect to the “Silk Road.” Việt Nam needs to improve the performance of local companies, including private firms and state-owned enterprises, in order to optimise the capital provided by financial institutions and international creditors, according to participants. The Government should tighten fiscal policy in 2016 to reduce overspending in the State budget, and take control over financial lending to avoid creating “bubbles” in leading sectors such as industrial production and property. Experts also suggested that the country should improve the quality of human resources to provide an adequate supply for the markets, and improve the quality of transportation and infrastructure to connect with other countries instead of staying out of this global development trend. Cashew from the heart to the world Cashew is gradually proving its sustainability compared to other plants by maintaining its value and representing Vietnam's national strength throughout the years. According to the Vietnam Cashew Association and the General Department of Customs, 2015 is the 10th consecutive year that Vietnam holds a leading position in exporting cashew. With an export turnover of more than US$2.4 billion, signifying an increase of 8.7% in volume and 20% in value over the previous year, last year marked the nut’s highest achievement to date. Cashew is one of Vietnam’s major agricultural exports and holds more than 50% of the global cashew market share. International traders find it impossible not to mention Vietnam when it comes to cashew. Visiting Phu Rieng of the southern province of Binh Phuoc, the land of basalt known as the cradle of the cashew industry in Vietnam, Nguyen Van Huu, a farmer who has been inseparable from  cashew trees for over 10 years, cheerfully said that his net profit from cashew was over VND300 million (US$14,500) in 2015. As observed, by mid-March 2016, fresh cashew nuts were traded at prices VND7,000 - 8,000 per kilogramme higher compared to the same period in 2015. Farmers play a big role in the development of cashew in Vietnam, but it is also important to note the exporting and processing enterprises who have managed to bring Vietnamese cashew to households all over the world. Long An Export Processing Joint Stock Company (Lafooco) provides a notable example. 30 years ago, the first cashew trees in Vietnam marked the establishment of Lafooco and its important mission to bring cashew nuts from Vietnam to the world. For the past three decades the company has been pioneering the exporting of cashew to markets, such as the US, Europe, China, Australia, and the Middle East. Lafooco is in the top ten cashew exporters in Vietnam with an export turnover of US$40 million, accounting for 2.5% of the domestic market. The company is also amongst the top five largest cashew processing companies in the country, with a capacity of 20,000 tonnes a year. The company currently owns two purchasing and processing stations with a total area of 13.8 hectares. Consumers’ changing habits and the demand for ever-higher quality all over the world have forced enterprises to "innovate", and Lafooco is no exception. In previous years, Lafooco mainly focused on exporting raw cashew nuts to international roasting companies. Trusted for its product quality and stability over many years, punctual international delivery service, prioritising its brand’s prestige and customers’ benefit, the company has now made its first steps into value-added production. Departing from simply producing raw cashew nuts, Lafooco has now its own line of processed items, packed with unique brand images, and has expanded its product portfolio with nuts and snack items made from high value seeds, such as almonds and macadamia. As one of the leading companies in exporting to markets with high quality requirements, Lafooco has noticed the inevitable need for sustainability, maximising product value, and getting further involved in the extensive global supply chain. It is Lafooco’s goal to become a leading international brand building on credibility with its customers and partners. As a strategic step to strengthen its capabilities and standardise professional management procedures, in 2015, Lafooco officially became a subsidiary of PAN Food, yielding 80.5% of its stakes in exchange for support from major financial institutions, such as IFC, the investment fund of the government of Singapore, Mutual Elite Fund, and NDH Invest. Along with development strategies, Lafooco has started to show positive changes in terms of management and easier access to capital resources to cater for its long-term goals. Regarding its branding strategy, Lafooco has recently re-positioned itself to lay heavier emphasis on the company’s motto: "cashew processing with a whole-hearted approach." In 2016, Lafocoo’s new brand identity centers around the theme of basaltic soil where cashew trees blossom and produce quality products. The letter “A” in Lafooco was positioned higher to demonstrate grade-A quality of all products, top quality services, food safety, and professional manner. The letter “O” with a heart icon is an allusion to the company’s motto, ensuring customers that Lafooco does not only care about profit but also cares for the farmers and workers working in the cashew industry. Lafooco is one of the few companies in the Vietnamese cashew industry that stands committed to social responsibility from business philosophy to daily activities, and as a result, was granted the Fair Trade certification along with many other valuable certificates, such as BRC Food Certificate Type A - Certificate of Global Food Safety by the British Retail Consortium. These certificates provide Lafooco and the domestic cashew industry with more advantages and options in the process of dealing with global customers, as well as accessing a larger market. Korean cosmetics and food enterprises look for Vietnamese match Korean cosmetic and food manufacturers see great potential in expanding their distribution channels in Vietnam by making direct contact with Vietnamese distributors, retailers, and manufacturers to benefit from the Vietnam-Korea Free Trade Agreement (VKFTA). In the framework of the trading event organised by the Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with Korea Complex Research and Development Institute (Dae-gu Technopark) on May 10, seven of the eight visiting Korean enterprises operate in manufacturing cosmetics and food. “It is the second time I have come to Vietnam to find material suppliers. On my first trip, I found a suitable Vietnamese partner in Ho Chi Minh City. I visited their facility and attended working sessions to discuss co-operation methods. The two parties are completing the remaining procedures to officially sign a contract and expect to make a trade deal worth between $2 and US$3 million per year,” said Kim Jong Woo, CEO of SLC Co., Ltd., a cosmetics manufacturing and trading company. Kim Jong Woo said that the main criteria in choose suppliers were infrastructure and machinery. Notably, Vietnamese enterprises have to own factories equipped with modern infrastructure and machinery, meeting strict quality requirements. “In my opinion, Vietnam is a potential market for Korean enterprises, especially cosmetics manufacturers due to the increasing demand’s for beauty care amongst Vietnamese people, while Korea is famous for its beauty industry. In addition, the VKFTA, through the provision of ample tax incentives, is an important opportunity helping Korean enterprises to penetrate the Vietnamese market,” Woo added. According to a representative of Vision International Company, in recent times, both Thailand and Japan hastened efforts to set foot on the Vietnamese market, saturating the market with foreign products. However, SLC will differentiate itself by supplying biological products with natural origins. Along with Korean enterprises’ expectations, Vietnamese distributors are also looking forward to distributing Korean products in the country. Director of Van Thinh Phu Company Limited Dao Thanh Luu stated, “Having been a food importer and distributor for eight years, we find that the consumption of Korean food on the Vietnamese market is fast increasing. Korean food is a good match for the Vietnamese palate. Furthermore, due to the Korean wave’s influence, exerted by films, cuisine, music, and culture, Vietnamese people, especially the young, give priority to Korean products.” “Korean food is expensive but it can compete with local products, even Thai and Japanese brands, due to the attractive packaging and high quality,” Luu added. Construction of airport near Sa Pa could start next quarter A proposal to build a VND5.8 trillion (US$257 million) airport near Sa Pa has been backed by several ministries, and work is set to start in the third quarter once it receives government approval. The 261-hectare airport will have a terminal and space to park two Airbus A320s or other similar aircraft, according to a proposal by the northern province of Lao Cai, home to the popular tourist town. It will be able to handle 560,000 passengers and 600 tons of cargo a year in its first stage before being expanded to thrice that size after 2030. The airport is expected to handle flights to and from Ho Chi Minh City, Da Nang and Nghe An Province in the central region, and the northern city of Hai Phong. Lao Cai has sought approval to sign up real estate conglomerate Sun Group for developing most of the airport’s infrastructure under a build-transfer agreement, news website Saigon Times Online said on May 8. Private developers signing a built-transfer agreement with the government normally get lands worth a certain value for other projects. But Sun Group, which has expressed interest in several public infrastructure works, wants instead to operate some of the airport’s infrastructure like the terminal and fuel storage for an agreed time, according to the website. Vietnam has 22 airports, but only Tan Son Nhat in Ho Chi Minh City and Noi Bai in Hanoi are profitable, the country's sole airports manager, Airports Corporation of Vietnam, reported last year. Under a national aviation plan approved seven years ago, Vietnam will have 26 airports, including 10 international ones, by 2020. The government also plans to build several small airports for helicopters and short-haul aircraft. Korea expands distribution channels in Vietnam Eight Korean enterprises today attended a trading event organised by the Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with Korea Complex Research and Development Institute (Dae-gu Technopark), to find Vietnamese partners. The event aims to promote export opportunities to Vietnam via trade promotion programmes, finding a direct match of Korean enterprises and Vietnamese distributors, retailers, and manufacturers. In addition, the event helped to promote the image and brand names of Korean enterprises in Vietnam. In the framework of the event, eight enterprises operating in food manufacturing, cosmetics, and biological products displayed their products and shared their criteria in selecting Vietnamese partners. Almost all of these enterprises are major large-scale players in their respective sectors, listing names such as cosmetic producers APHRM Ltd. and SLC Co., Ltd., food producer Chunil Food Company, and biological products manufacturer JEONJINBIO Co., Ltd.. The Vietnam-Korean Free Trade Agreement (VKFTA), through the provision of ample tax incentives, is considered an important opportunity to promote bilateral trade. In addition, it will open up numerous opportunities for the business co-operation between the two countries’ enterprises. South Korea considers Vietnam one of its four strategic export markets, along with China, Iran, and Brazil. Eximbank delays AGM amid losses Eximbank has postponed its annual general meeting to later this month and has reported a remarkable drop in profits for the first quarter of the year. The Ho Chi Minh City-based bank could not hold its annual general meeting (AGM) as scheduled on April 29, as the number of shareholders registered to attend the meeting was below the Eximbank charter minimum requirement of 65 per cent of voting shares. On the morning of the AGM, the total number of shareholders in attendance was 487, representing just 50 per cent of the total voting stakes. According to the bank, in accordance with current regulations and the bank’s charter, its new AGM will be held within 30 days of April 29. The exact date and venue will be announced at a later date. Japan’s Sumitomo Mitsui Banking Corporation, which acquired some 15 per cent of Eximbank’s stakes back in 2007, is currently the bank’s largest shareholder. Other major shareholders include Vietcombank and VinaCapital Vietnam Opportunity Fund (VOF), holding 8.24 per cent and 4.99 per cent of the bank’s stakes, respectively. Eximbank reported VND40 billion ($1.83 million) in net profit in 2015, a sheer drop of 88 per cent compared to 2014. At the end of the first quarter in 2016, the bank’s total assets had fallen on-quarter by 2.1 per cent to VND122.22 trillion ($5.61 billion). Its accumulated losses, meanwhile, had reached VND793.5 billion ($36.39 million). Eximbank’s operating expenses during the period rose roughly 40 per cent, totalling VND662 billion ($30.36 million). The bank’s net operating profit, as a result, settled at only VND368 billion ($16.88 million), a decrease of almost 32 per cent compared to the same quarter last year. What’s more, Eximbank’s risk provisions in the first quarter soared to VND337 billion ($15.45 million), and thus ate up the lender’s profit. Its pre-tax profit and post-tax profit were recorded at VND30 billion ($1.37 million) and VND24 billion ($1.1 million) respectively, a remarkable drop of 94 per cent compared to the VND415 billion ($19.03 million) in post-tax profit recorded in the first quarter of 2015. Eximbank explained that the drastic tapering in profits was a result of the lender’s provisions set aside quarterly for credit risk, and risk on special bonds issued by the Vietnam Asset Management Company, on an accumulation basis. Gamuda Land tops out Ruby Precinct Gamuda Land implemented the topping out ceremony for block C of Ruby Precinct in Celadon City in Ho Chi Minh City on Saturday 8. Block C is the latest block belonging to Ruby Precinct, adding 372 units and being topped out two months earlier than planned. To mark this event, general director of Celadon City Chow Chee Fan said that the company offered numerous presents to buyers, such as Iphone6S and Ipad Air2 devices, as well as SJC gold tales. Hallmarking great public interest and an overwhelmingly successful launch, more than 80 per cent of the launched units were registered right at the event. Besides the success of Yen So Park project in Hanoi, one of the largest projects in the northern region, Gamuda Land continuously implements Celadon City on a 500 hectare area. Being the main landmark of a 16 hectare park, the project is surrounded by three lakes and a walking path, playgrounds for kids, an ayurvedic area, and a BBQ area. Celadon City owns the largest private park in Ho Chi Minh City right now. In addition, Celadon Sports and  Resort Club is the biggest sport club in Vietnam, offering full facilities and amenities cosily set within the confines of a 5.4 hectare land area. Celadon City is also the first high-grade urban area in Vietnam to apply BCA Construction Quality Assessment System (CONQUAS). Established in 1995, Gamuda Land is the property development arm of Gamuda Berhad, one of the biggest infrastructure construction enterprises in Malaysia, with over 40 years of experience specialising in construction. Gamuda Land has been developing many projects with total sizes over 2.500ha and the total investment value up to $8.2 billion. Gamuda Land is a well-known developer throughout Asia, including Vietnam. Budget revenue from import-export activities down 16% in four months The aggregated State budget revenue from import and export activities in the first four months of 2016 was estimated at VND38,900 billion (US$1.75 billion), equivalent to 22.6% of the estimate and down 15.9% compared to the same period in 2015, according to the Ministry of Finance. In April alone, the revenue from import-export activities was posted at only VND13,300 billion (US$598.5 million) which was attributed to the 7.1% decrease in the import and export activities over the previous month. Despite the advance in the prices of crude oil, the revenue from crude oil in four months reached roughly VND13,000 billion (US$585 million), a decrease of 48.1% compared to the corresponding period last year. In the meantime, the revenue from domestic activities was reported at VND69,670 billion (US$3.13 billion) in April, up 24.6% against the previous month, raising the total domestic revenue in four months to VND264,870 billion (US$11.92 billion), up 9.6% over the same period last year. As a result, the total budget revenue in four months was estimated at VND317,000 billion (US$14.26 billion), equivalent to 31.3% of the estimated figures and up only 1.2% over the same period last year. On the other side, the total budget expenditure was reported at VND370,660 billion (US$16.67 billion) in four months, up 4.7% against the same period in 2015, resulting in a budget deficit of VND53,600 billion (US$2.41 billion), equivalent to 21.1% of the year's estimate. Vietinbank reports 54% rise in pre-tax Q1 profits Vietinbank’s pre-tax profits in the first quarter of 2016 reached VND2.405 trillion (US$108.22 million), up 54% over the same period last year. The lender, fully known as the Vietnam Bank for Industry and Trade, said as of March 31, its total assets were estimated at VND792 trillion (US$35.64 billion), up 1.6% from the end of 2015 and 22.6% from a year earlier. Vietinbank is one of the largest commercial banks in Vietnam. The bank’s total lending reached VND553 trillion (US$24.9 billion), up 2.8% from the end of last year, while deposits at the bank also rose 2.1% to VND503 trillion (US$22.6 billion). Vietinbank continued to be one of the most successful lenders in controlling the quality of its loans with bad debt accounting for only 0.8% of outstanding credit, the lowest ratio in the banking system. The lender said such results came as a result of its focus on safe and efficient business areas as well as its great risk management efforts. Garment and footwear exports hit over US$10 billion Garments, textiles and foot wear exports reached US$10.5 billion in the first four months of 2016, according to a report from the General Statistics Office (GSO). Specifically, garments and textiles exports reached nearly 2 billion in April alone, bringing the total export revenue of the products in the first four months of this year to nearly US$7 billion, up 6% year-on-year. Meanwhile, the leather and footwear industries achieved an output of nearly 78 million pairs of footwear in the first four months, earning nearly US$3.7 billion from exports, up 5% compared to the same period last year. According to the Vietnam Textile and Apparel Association (VITAS), exports to large markets such as the US, the EU, Japan and the Republic of Korea have remained stable. The Vietnam Leather and Footwear Association said that many investors are looking for investment opportunities in Vietnam and increasing the number of orders for Vietnamese businesses. According to the Ministry of Industry and Trade, many textile companies have collected enough orders to last until the end of the second quarter, and a number of companies have enough orders to manufacture products the whole year - a good sign the garments and textiles industry will meet their annual export target. S.Korea makes up 41% of Jan-Apr FDI approvals South Korea’s foreign direct investment (FDI) in Vietnam picked up and accounted for 41.2% of all FDI approvals nationwide in the first four months of this year, according to the Foreign Investment Agency (FIA). The agency under the Ministry of Planning and Investment said foreign enterprises pledged US$6.88 billion for new and operational projects in the four-month period, up 85% year-on-year, with Korean firms making up over US$2.8 billion. Korea was the biggest foreign investor in Vietnam in January-April, followed by Singapore with US$730 million, 10.6% of the total. Taiwan and Japan came third and fourth, pouring US$664 million (9.6%) and US$564 million (8.2%) into their projects here respectively. Apart from big-ticket projects approved in the period, the number of Korea’s operational and new projects in Vietnam was higher than that of other countries in the first four months. Data of the FIA showed that among the five biggest FDI projects in the first four months, three came from Korea, including LG Display’s OLED display project worth US$1.5 billion and Samsung’s research and development center worth US$300 million. The Northeast Asian nation had 214 new and 104 existing projects in Vietnam in the period. Korean firms have got involved in 5,210 operational projects in Vietnam so far with capital pledges exceeding US$48 billion and making up 16.7% of the total. Japan ranked second with 3,050 projects worth a combined US$39 billion, followed by Singapore with 1,600 projects capitalized at US$36.3 billion and Taiwan with 2,510 projects worth US$31.5 billion. According to the FIA and the Korean Business Association in Vietnam, Korean businesses will boost investment in Vietnam in the coming time to make the most of opportunities from the Vietnam-South Korea free trade agreement and the Trans-Pacific Partnership trade pact. The Vietnam-Korea free trade agreement took effect in December last year. Investors pledge VND3.4 trillion for projects in Lao Cai The government of Lao Cai Province has awarded investment certificates for six projects capitalized at VND3.41 trillion (US$152.96 million), with three of them committed to hydropower generation and two to tourism services. The northern upland province handed over the investment certificates to investors at an investment and tourism promotion conference last Sunday. The event was jointly organized by the Lao Cai government, the Steering Committee for the Northwest Region, the Ministry of Planning and Investment, and the Bank for Investment and Development of Vietnam (BIDV). The investment certificates for hydropower projects went to Minh Luong worth VND810 billion (US$36.4 million) of Nam Tien Joint Stock Company (JSC), Nam Xay Luong worth VND362 billion (US$16.24 million) of Nam Xay Hydropower JSC, and Nam Khat worth VND271 billion (US$12.2 million) of Southeast Asia Energy Investment JSC. The two tourism projects are Fansipan Cable Service JSC’s five-star hotel project with VND1.5 trillion (US$67.3 million) and Sapa Tourism Services JSC’s Sapa Highlands three-star hotel worth VND120 billion (US$5.38 million). Nguyen Van Vinh, secretary of Lao Cai Province’s Party Committee, told the conference that in recent years, the tourism sector has grown strongly and contributed 11.5% to the province’s gross regional domestic product (GRDP). Last year, the province welcomed 600,000 foreign and 1.4 million domestic visitors, and posted tourism revenue of VND4.6 trillion (US$206.3 million). Tourism development has also supported other sectors in Lao Cai, including transportation, telecoms and handicraft production, and improved incomes for locals, especially those of ethnic minority groups. It has helped restore cultural, traditional and historical values, and boost economic restructuring in the province. The province also approved a project of Lao Cai Steel Investment JSC to build an iron ore factory capitalized at VND350 billion (US$15.7 million) in Bat Xat District. At the conference, representatives of Lao Cai, Hanoi, Quang Nam, Yen Bai, Quang Ninh, Lai Chau and Son La clinched a cooperation agreement on tourism development. Cambodia Angkor Air to open new routes to Vietnam Cambodia Angkor Air is preparing to launch Sihanoukville-HCMC and Siem Reap-Danang air routes this summer using ATR 72 aircraft. The Cambodian flag carrier said in a statement that it will start Sihanoukville-HCMC service on June 17, with five weekly flights on Tuesdays, Thursdays, Fridays, Saturdays and Sundays. Its aircraft will take off in Sihanoukville at 12:40 p.m. and land in HCMC at 1:40 p.m. The departure and arrival schedules of the return service will be 2:50 p.m. and 3:50 p.m. The Siem Reap-Danang route will be opened on July 1. Flights will depart from Siem Reap at 2:30 p.m. and touch down in Danang at 4:20 p.m. on Mondays, Wednesdays and Fridays. The return service will take off at 5:00 p.m. and land at 6:55 p.m. Last October, Cambodia Angkor Air commenced services linking Cambodian capital Phnom Penh and Lao capital Vientiane and Hanoi with three weekly flights on Wednesdays, Fridays and Sundays. The airline is a joint venture between the Cambodian government and Vietnam Airlines Corporation, with the latter holding a 49% stake worth US$200 million. Dalat IT park in the offing The HCMC Department of Information and Communications has struck a cooperation deal with Lam Dong Province to implement a plan to develop an information technology (IT) park in the province’s Dalat City based on the Quang Trung Software City model. Last week, the HCMC Department of Information and Communications handed over the feasibility study for the Dalat IT park to Lam Dong Province’s Department of Information and Communications. The study was completed by International Architectural Space Design and Construction Consulting Co Ltd and Expertise France Company based on comments from the HCMC Department of Information and Communications and Lam Dong Province’s authorities, according to local media. HCMC and Lam Dong will further discuss the functional sections and investment plan for the IT park project, and call for investors. After investment procedures and a detailed zoning plan are complete, the Dalat IT park will get off the ground as a member of the QTSC chain. According to a master development plan for Lam Dong’s IT industry until 2020 with a vision towards 2025, the province plans to build two IT parks by 2020, including the Dalat IT park in Dalat City and the other in Da Nhim Commune, Lac Duong District. The central Government has allowed HCMC to carry out a pilot plan to develop the QTSC chain from this year. QTSC and Vietnam National University of HCMC’s IT Park in Thu Duc District are the two first members of the chain. The QTSC authority will cooperate with provinces to expand the chain in the coming years. Work to start on three expressways next year Construction of three expressways running through Dong Nai Province, Vung Tau City, Binh Thuan Province and Lam Dong Province is scheduled to start next year after their procedures are complete. The three expressway projects are Bien Hoa-Vung Tau, Dau Giay-Lien Khuong and Dau Giay-Phan Thiet. According to a report of Dong Nai on expressways, land is being cleared for a section of Ben Luc-Long Thanh Expressway in Nhon Trach and Long Thanh districts. The investor will break ground for some parts of this section next month. This project got off the ground in 2014. As for Dau Giay-Lien Khuong Expressway, the Government has approved a section connecting Dau Giay and Tan Phu districts to be built under the build-operate-transfer (BOT) format. The Ministry of Transport is expected to complete necessary procedures for the project by the end of the fourth quarter, paving the way for construction to begin in 2017. The ministry has assigned its Project Management Unit 85 to do the feasibility study for the first section of Bien Hoa-Vung Tau Expressway. This section will pass through Bien Hoa City, Tan Thanh District and Cai Mep Port, and be built under the public-private-partnership model. The ministry is assessing its investment plan. Regarding Dau Giay-Phan Thiet Expressway, relevant ministries have been in talks with the World Bank over an official development assistance loan for the first 36-kilometer-long section linking Dau Giay Intersection and Xuan Loc District. Project Management Unit 1 is seeking permission from the transport ministry for the project while collaborating with the authority of Dong Nai in speeding up site clearance and compensation. Section 1A of Belt Road No. 3 linking Road 25B to the existing HCMC-Long Thanh-Dau Giay Expressway is undergoing investment procedures and scheduled to get off the ground in the first quarter of next year. The investor of the project is Cuu Long Corporation for Investment Development and Project Management of Infrastructure. Under a master zoning plan for transport development, Dong Nai has five expressways, including the unfinished Ben Luc-Long Thanh Expressway, the HCMC-Long Thanh-Dau Giay Expressway and the three proposed projects planned for construction next year. Belt Roads No.3 and No.4 also run through the province. Bond sales meet half year’s target Government bond sales in the year to May 6 had met over 50% of the full-year target, thereby helping offset the State budget deficit and fund development projects, according to the Ministry of Finance. As of last Friday, G-bond sale revenues had neared VND111.8 trillion (US$5 billion), equivalent to 50.8% of the year’s target. Meanwhile, budget overspending totaled VND53.6 trillion in the four-month period, over 21% of the projection. Budget collections amounted to VND317 trillion, equivalent to 31% of the target. Tax and fee revenue from domestic sources reached nearly VND265 trillion, 34% of the estimate. Crude oil totaled VND13 trillion, down 48% over the year-earlier period, while budget revenue from import-export taxes dipped 15.9% year-on-year to nearly VND39 trillion. Total budget spending stood at VND371 trillion in the four-month period, equivalent to 29% of the estimate and up 4.7% against the same period last year. Notably, the country used around VND51.9 trillion for payments of debt and official development assistance (ODA) loans in the period, up 4.4% year-on-year. The ministry said the sum was to pay debt that fell due. Mekong Delta provinces urged to further back businesses Experts have called for provinces in the Mekong Delta to boost reforms and offer much-needed support for local enterprises to grow and grasp opportunities from the country’s strong international integration. There are over 53,000 operational firms in 13 provinces in the delta, which makes up half of the country’s farm produce output, the Vietnam Chamber of Commerce and Industry (VCCI) said at a conference held in Dong Thap on May 9 to discuss ways to improve the business environment and back the private sector. However, enterprises in the region are coping with a host of problems and challenges relating to capital and employment, among others. Dau Anh Tuan, head of the Legal Department at VCCI, said private firms in the region have limited investment capital with each having only VND13 billion and 25 employees on average. The Mekong Delta has 10.5 million laborers but migrant workers make up 6.4%, the highest in the country, Tuan said. There is one enterprise for every 607 people in the region while the country’s average is 243. “It means that local people seriously lack job opportunities and heavy traffic jams that are often seen on the roads leading to HCMC on holidays are clear evidence,” Tuan said. In Dong Thap Province, 12% of private firms have to borrow loans from informal sources as shown in last year’s Provincial Competitiveness Index (PCI) report of VCCI, double the country’s average. They have to pay an average annual interest rate of up to 41% while banks charge a mere 8%, said Pham Ngoc Thach, deputy head of the Legal Department at VCCI. Data of the provincial Department of Planning and Investment showed 2,800 operational enterprises account for 10% of the total investment capital and a mere 8% of the province’s budget collections. Vietnam has intensified international integration but most enterprises in the Mekong have limited knowledge of it. A survey of VCCI found nearly 50% of firms in the delta do not care much about the Trans-Pacific Partnership (TPP) trade agreement, 25% hear about it for the first time and only 4% pay attention to it. Only 1-2% of enterprises in the region said they have studied a bilateral free trade agreement (FTA) between Vietnam and the European Union (EU) and the establishment of the ASEAN Economic Community (AEC). In the 1998-2014 period, 979 foreign direct investment (FDI) projects were approved in the delta with combined registered capital of US$12.2 billion, representing 5.5% and 4.8% of the nation’s total. A representative of Can Tho City told the conference that the effort of Mekong Delta provinces to streamline administrative procedures is not enough to attract foreign investors. “It takes four hours to travel between Can Tho and HCMC and probably a day if there are traffic jams. We have made effort but not as many investors have come as expected due to underdeveloped infrastructure,” he said. Tuan of VCCI said the nation’s international integration will bring opportunities to many cities and provinces nationwide, but many will be left behind and the Mekong Delta would likely be one of them. The delta now has to deal with a furry of problems arising from climate change, international integration and migration, and they challenge development of the region. The delta’s provinces should speed up reforms and make greater effort to keep up with other parts of the country; otherwise, it will further lag, experts said. It is difficult for the delta to create more jobs for locals if it does not continue reforms, said Vo Hung Dung, director of VCCI in Can Tho City. One more luxury tourism complex to go up in Haiphong Him Lam Joint Stock Co started work on a luxury tourism complex in Do Son District, Haiphong City over the weekend. The VND5 trillion (US$224.5 million) complex comprises amusement park, hotel, villas, beaches, and a two-kilometer cable car system from Dau Islet to Vung Xec. The project will be developed until 2021. The Dau Islet project consists of two parts, with the first part covering a luxury resort worth VND3.03 trillion (US$136.05 million) on Dau Islet and a logistics area for tourism worth nearly VND2 trillion (US$89.8 million) in Vung Xec area. Him Lam looks set to put into service artificial beaches, areas for commercial facilities and entertainment, hotel rooms, villas and apartments from 2018. The city will create favorable conditions for Him Lam to speed up construction on the project but the investor must strictly observe regulations on environmental protection. Prime Minister Nguyen Xuan Phuc told the groundbreaking ceremony that Haiphong needs to boost industrial and agricultural production and service development. The northern city should tap its tourism potential. Earlier, Haiphong Water Supply Joint Stock Co cooperated with ACC Trading Joint Stock Co in implementing a project to build two parallel undersea water pipelines with a total length of 706 meters to supply fresh water for Dau Islet. Dau Islet has 10 hectares of tropical forest and is nearly one kilometer from Do Son Peninsula. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR