BUSINESS IN BRIEF 17/5 Vietnam's Internet giant VNG acquires 38 pct stake in retailer Tiki: report VNG Corporation, Vietnam's top provider of Internet content, has completed a VND383-billion (US$17.02 million) deal to acquire a 38 % stake in e-commerce startup Tiki, local media reported on May 16. The deal, completed in January, has put Tiki's value at around VND1 trillion (US$44.4 million), news website CafeF said, citing a report from VNG. It is the second biggest deal reported among Vietnamese startups, after the US$28 million funding that mobile wallet service MoMo recently received from British-owned Standard Chartered Private Equity and the US's Goldman Sachs. Founded in 2010, Tiki is often described as Vietnam's Amazon, with around 100,000 products including books and electronics. It is now backed by Japanese investors Sumitomo Corporation and CyberAgent Ventures, which own a combined stake of 45%. German enterprises seek opportunities in HCM City A delegation of more than 70 German enterprises operating in the automobile industry, manufacturing technology, communications, finance and insurance visited Ho Chi Minh City to seek investment opportunities in the southern hub. In a meeting with the city leaders on May 16, Chairman of the German Business Association Jens Ruebbert said that Vietnam is among leading destination for foreign investors, including German enterprises. With advanced expertise and experience, German businesses hoped to seize investment opportunities in Vietnam, he said. Chairman of the municipal People’s Committee Le Thanh Liem said that Vietnam-Germany relations have been consolidated in major fields like politics, economics, trade and education, emphasising Germany is an important partner of Vietnam. Ho Chi Minh City wants to further cooperation with Germany in urban transport, healthcare and education, he added. According to Vice Director of the municipal Department of Planning and Investment Le Thi Huynh Mai, the city’s socio-economic development plan for 2016-2017 was delivered to the German enterprises. To help German businesses operate in the city, the Department also introduced measures to address difficulties for the businesses and improve the investment climate, including enhancing trade promotion and attracting investment in sectors that the city is focusing on. Germany is a large partner of Vietnam in education and training as well as science and technology. German projects implemented in Vietnam include the Vietnam-German University, Phu Lac 1 wind power plant and Ho Chi Minh City’s metro line No.2. Vietnam, Norway look to boost cooperation Vietnamese Ambassador to Norway Le Thi Tuyet Mai urged Norwegian businesses to enhance investments in Vietnam at a conference held by the Norwegian Ministry of Foreign Affairs, Ministry of Trade, Industry and Fisheries and the Vietnamese Embassy in Norway in Oslo on May 16. The Vietnamese Government is working to improve the business climate to attract foreign investment, intensify trade liberalisation and aiming to achieve the Sustainable Development Goals, the Ambassador said. She noted that along with Vietnam’s socio-economic development in recent years, the country’s plans for development from 2016-2020 will bring opportunities for the two nations to strengthen cooperation. Norwegian enterprises can expand their operations in Vietnam, especially in fields like the maritime sector, renewable energy, environment protection and science-technology, Mai said. She affirmed that the Ministry of Foreign Affairs and relevant agencies will work with Norwegian organisations to boost cooperation between the two countries while facilitating Norwegian investments in Vietnam. State Secretary of the Norwegian Ministry of Foreign Affairs Tone Skogen expressed her desire to enhance Norway-Vietnam cooperation, saying that the two countries have potential for further bilateral and multilateral collaboration. The Norwegian Government will continue to create favourable conditions for its enterprises to increase operations in Vietnam, she said. Since diplomatic ties were established in November 1971, Vietnam and Norway have seen their relations actively develop across politics, economics, culture and society. The conference was held as part of the activities to celebrate the 45th anniversary of diplomatic relations. SSC fines stock traders The State Securities Commission (SSC) has announced a decision issuing fines totaling VND550 million ($24,645) to certain stock market investors. Ms. Bui Thi Ngoc Yen from Pleiku, in the central highlands province of Gia Lai, is charged with having tried to manipulate stocks. From July to September 2015 she used nine difference accounts to trade the stock VID on the Ho Chi Minh City Stock Exchange with the purpose of price manipulation. The Vietnam International Securities Company (VIS), meanwhile, is to be fined VND125 million ($5,600) for permitting customers to conduct margin trading without reporting to the SSC. Mr. Duong Quang Chau from the Ho Chi Minh City Infrastructure Investment (CII) is being fined VND42 million ($1,88o) by the SSC after trading in CII’s stock without reporting to the SSC. Wholesale electricity prices to increase by 2-5 per cent   The Electricity of Viet Nam (EVN)'s wholesale electricity prices sold to its power corporations in 2016 would be increased by two to five per cent over last year. The Ministry of Industry and Trade has issued Decision No 1797/QD-BCT on the wholesale electricity price frame. Specifically, the highest surge would be wholesale price sold to the Central Power Corporation with the rise of five per cent. Of which, the maximum price would be increased from VND1,135 to VND1,200 per kWh while the minimum price would be higher between VND1,066 and VND1,119 per kWh. The maximum price sold to the Northern Power Corporation and Ha Noi Power Corporation would be increased by 4 per cent while those of HCM City Power Corporation and Southern Power Corporation would be 3 per cent higher than the current level. The minimum prices sold to the Northern Power Corporation, Southern Power Corporation, Ha Noi Power Corporation and HCM City Power Corporation would be increased by 2 per cent. Under the decision, the EVN's wholesale electricity prices sold to its corporations would not be higher than the maximum and minimum prices. EVN would issue specific wholesale electricity prices for each corporation. The group would have to calculate and submit to the ministry for approval if they want to adjust the prices to suit with changes in production costs, turnover and profit. The prices have been applied for the entire year. EVN yesterday confirmed that the group has not had any proposal for a power tariff increase this year. "The EVN's wholesale electricity prices sold to its corporations in the year of 2016 are internal prices with an aim to improve transparency in management and would not affect to the current power prices," Dinh Quang Tri, EVN's Deputy General Director, said. Co Bi depot starts construction work Deputy Prime Minister Truong Hoa Binh on Sunday launched construction on Ha Noi's inland clearance depot, which will be the largest one in the capital. The construction of the 47.2ha depot will be divided into two stages, with the first one covering 19.2ha and the second one covering 28ha in Gia Lam District's Co Bi Commune. The first stage, costing nearly VND782 billion (US$35.5 million), is scheduled for completion in the fourth quarter of 2019. Once completed, it will be capable of handling 380,000 twenty-foot equivalent units (TEUs). The second stage, which costs VND1.78 trillion ($81 million), is designed to handle 760,000 TEUs annually once it is completed in the fourth quarter of 2020. The project is funded by Hanel One-member Co Ltd and Lang Ha Tower Co Ltd. The depot will provide hi-tech logistics, support, storage and distributions services for economic and industrial zones in the east of Ha Noi and adjacent provinces, said General Director of Hanel Nguyen Quoc Binh. The Co Bi Inland Clearance Depot will be situated in a central location between national highways 1 and 5. It will offer handling and storage services to facilitate import and export activities of enterprises in Ha Noi and other cities and provinces in the North before transporting the goods to international borders and sea ports in Hai Phong, Quang Ninh, Lang Son and Lao Cai. VGTA, banking experts seek national gold floor Viet Nam Gold Trading Association (VGTA) chairman, Nguyen Thanh Long, asked the central bank and the Ministry of Finance to set up a national gold trading floor to mobilise gold from local people. Long estimated there were some 500 tonnes of gold held by local people, VGTA's website reported. He said, "Many people possessing a large quantity of gold showed interest in gold investment, even in risky gold floors that are running illegally in the country." Further, without an official trading floor, fake or low-quality gold also put gold investors in a vulnerable situation, Long said. Though the Ministry of Science and Technology have issued a standard gold measure for the local market, many gold traders still apply different measures in their operations. Thus, the chairman said it was quite common for a gold product to contain 65 per cent gold content in Can Tho City, but 63 per cent in Binh Duong Province and only 61 per cent in HCM City, under the different measures used by gold buyers. In addition, the ban on raw gold imports for non-licensed gold jewellery makers had forced these manufacturers to buy gold from the unofficial market, which contributed to gold smuggling in the country, Long said. The chairman said, "Viet Nam needs a huge amount of capital for socio-economic development in the next few years, thus the establishment of a gold floor is essential to help mobilise gold resources from local people." Long also said an official trading floor will ease gold smuggling across borders, and generate more taxes for the State budget. It will also help the State Bank of Vietnam (SBV) supervise gold transactions in the market and help local gold manufacturers buy raw materials for production. Six years ago, the National Finance Supervision Commission had proposed a similar plan to the government, according to which the gold floor was planned to operate in a similar manner to the stock exchanges in HCM City and Ha Noi. Investors could trade their gold with gold certificates from SBV-licensed companies. Finance and banking expert Nguyen Tri Hieu said a national gold trading floor will bring transparency to the market and benefit all stakeholders. Hieu said the SBV's policies have, so far, led to a stable gold market, adding that an official floor would help ease gold speculation. Nguyen Ngoc Canh, director of the Foreign Exchange Management Department at SBV, said an establishment of this type was already included in the bank's strategic plans, however, it would be implemented step-by-step and at the right moment. According to the Ministry of Science and Technology, which monitors the quality of gold available in the market, inspections will be carried out at gold trading businesses between July and September. Toyota, Nissan recall cars to fix problems Toyota Motor Viet Nam (TMV) has announced the start of its recall campaign for the engine control module for exhaust gas recirculation (EGR) valve operation on 2,410 Camry 2.0E units. This campaign, effective at all Toyota dealerships nation-wide in line with the announcement of Toyota Motor Corporation (TMC), will be conducted in Viet Nam from May 16, 2016. According to TMC, a defect was discovered in the engine control unit's (ECU's) EGR valve control programme. This is a device that recirculates a portion of the exhaust gas to the intake system of the engine and suppresses nitride oxide generation. If the accelerator pedal is used frequently at short intervals, the EGR valve may fail to close properly. The engine may then fail if the exhaust gas cannot be discharged normally. In the worst-case scenario, this may cause the engine to stall while the car is in motion. Customers who own the affected vehicles will receive a letter to notify them of the recall campaign and to invite them to bring their vehicles to TMV's dealers for a free check-up and to reprogramme the ECU. This is the second recall campaign TMV has conducted in recent days. Last week, it recalled 133 Lexus ES 250 and ES 350 cars to fix a brake problem. Nissan, an automaker from Japan, also announced it's recalling 602 Navara pickup trucks in the Vietnamese market to fix airbag faults in front of the driver seat. Nissan Viet Nam will check and replace the air pump for LE and XE versions of Navara pickup trucks. The programme is scheduled to begin from June 6 and finish on June 5 next year. The cars, produced in Thailand from September 20, 2010 to February 13, 2013, were imported and distributed by Nissan Viet Nam. Jack Nicklaus begins work on signature golf course in Vietnam BRG Group, under the leadership of Madame Nguyen Thi Nga, has broken ground on a brand new golf course in the capital city of Hanoi designed by one of the early pioneers of golf. At the ceremony conducted at the award-winning Kings Island Golf Resort, Madame Nga, chairman of BRG Group, announced the addition of the new 18-hole world class golf course to the existing 36-hole course, makes it the first and only 54-golf course in the nation. Jack Nicklaus II, the course architect and eldest son of Jack Nicklaus, the professional golfer who is widely recognized as the greatest golfer of all time, has contracted to develop, design and construct the new course named Kings Course 54. According to Madame Nga, Kings Course 54 is expected to be completed within 18 months and she promises that the new 54-hole spread will be a tribute to the stunning natural environment that is unique to the Kings Island Resort. Jack Nicklaus II has given his personal commitment that he will put in his best effort to make the new course, his first project in Vietnam, a truly spectacular one. Hanoi Telecom’s general director owns 1 per cent of Vietnamobile Trinh Minh Chau, general director of Hanoi Telecom, contributed 1 per cent of the shareholders’ equity in mobile network provider Vietnamobile JSC. According to license No. 9211668888 recently issued by the Hanoi Department of Planning and Investment, Vietnamobile’s total investment capital is $1.24 billion, of which the capital to carry out the project is $428.6 million. The contributions of three investors, namely Hanoi Telecommunication Joint Stock Company, Hutchison Telecommunications (Vietnam) S.À.R.L, and Trinh Minh Chau, were $214.797 million, $210.501 million, and $4.295 million, respectively. Vietnamobile JSC has a debt of $818.4 million towards its investors, financial institutions, and other legal sources. The sum borrowed only from Hutchison is $364 million. This is due to the transformation agreement between Hanoi Telecom and Hutchison Telecommunication (Vietnam) S.À.R.L, which shifted the company out of the business cooperation contract (BCC) format.   Meanwhile, the sum borrowed from financial institutions and equipment and assets bought on credit from foreign equipment providers is $454.4 million. The sum was borrowed according to the needs of the project. According to its website, Hanoi Telecom was established in May 2001, with a chartered capital of VND1.6 trillion ($71.7 million). It was licensed to set up a network and to provide landline and mobile telecommunication services, internet, VoIP, and long distance domestic and international calling, like all other telecom companies in Vietnam. According to Hanel Co., Ltd.’s prospectus, at the time of its IPO in April 2016, Hanoi Telecom’s chartered capital was VND1.6 trillion ($71.7 million), with Hanel holding 1.13 per cent of equity. Trinh Minh Chau was Hanel’s general director in 2000-2006 and is now general director of Hanoi Telecom. At the end of April, Hanoi Telecom celebrated its 15th anniversary and the prime minister’s approval for Vietnamobile to change from a BCC entity to a joint stock company. Pham Ngoc Lang, chairman of Hanoi Telecom, said that Hanoi Telecom targeted a 20-30 per cent growth in revenue per year until 2020. Vietnamobile will provide 3G services in all 63 cities and provinces by the end of 2016, with a view to upgrading the infrastructure to provide 4G upon demand. CEO of Hutchison Telecommunications International Ltd. Dennis Lui said that the Vietnamese government could do more to ensure fair competition between small network providers, like Vietnamobile, and bigger ones, such as Vinaphone, MobiFone, and Viettel. Dung Quat oil storage terminal planned for 2020 PetroVietnam Oil Stockpile Company, a member unit under state-run oil and gas group PetroVietnam, recently affirmed its commitment to building a $250-million underground oil storage terminal in the central province of Quang Ngai’s Dung Quat economic zone. The company (PVOS) proposed that the authorised management agencies add the project to Vietnam’s crude oil and petroleum product storage system development plan for 2015, with a vision to 2025. The project will have a total storage capacity of one million cubic metres. 90 per cent of this will be used for crude oil, while the remaining 10 per cent will be used for the storage of petroleum products. The first phase of development consists of building two underground storage facilities with a combined capacity of 600,000 cubic metres, which will be put into use from 2020 onwards. Another underground storage facility with a capacity of 400,000 cubic metres will be built in the second phase. The underground oil storage terminals are to be operated via a bonded warehouse model. Construction is expected to start within this year, while operations are scheduled to commence in 2020. To expedite the project, PVOS has sought incentives relating to land, water area, and port usage in conditions conducive to the commercial and national storage of crude oil. Of the project’s proposed investment of $250 million, 40 per cent will come from PVOS equity and the remaining 60 per cent ($150 million) will be sourced via commercial loans from the Korea Development Bank (KDB). PVOS stated that they had worked with KDB and the Industrial Bank of Korea on arranging capital for the project. Korea National Oil Corporation also pledged a capital contribution for the project. PVOS has also signed a memorandum of understanding (MoU) with Socar Trading Singapore, Sebrina Holding Pte. Ltd, and PVOil Singapore. The foreign partners have committed to using most of the underground oil terminal for crude oil storage, serving international transactions and supply to local oil refineries such as Dung Quat. PVOS’ project was first licensed in 2010 with the  total investment capital of VND6 trillion ($275 million) and a storage capacity of 1.6 million cubic metres over a 180-hectare construction area. The first phase was slated to start operation in early 2014, with the whole project due to be fully commissioned by 2015. The total investment capital was set at $340 million at that time. However, this has been delayed so far. In April 2013, the prime minister approved a national crude oil storage terminal project in Dung Quat economic zone with a scale of one million cubic metres. PetroVietnam was assigned as the self-investor in the project. Although the two underground oil storage terminal facilities have a similar capacity and position, the Ministry of Industry and Trade has officially proposed that the government add PVOS’ commercially-oriented project to Vietnam’ oil storage system. IDP in deal with Aussie milk processor International Dairy Products Joint Stock Company (IDP) and Pactum Dairy Group, a business unit of Australia’s Freedom Foods Group, has clinched an agreement on production and supply of milk products for the domestic market. The deal makes IDP the first Vietnamese dairy firm to cooperate with an Australian dairy processor. Initially the two sides will locally distribute fresh milk boxes bearing the LiF brand, which are produced and packaged at a milk factory in Australia. IDP plans to sell around four million liters of Pactum fresh milk in the first year. Tran Bao Minh, general director of IDP, said domestic supply of unprocessed milk was not enough to meet local demand while those countries famous for milk production like Australia have abundant high-quality milk supply. Therefore, IDP chose to team up with a major dairy firm like Pactum to supply milk for local consumers. Minh made no mention of an investment capital commitment to the partnership. He said the deal would benefit both sides. The Australian firm is strong in production technology and material sources while IDP is a fast-growing dairy processor on the domestic market with an extensive distribution system.    Prices of LiF products are 10-12% higher than other similar domestic items but 25-35% lower than imported products. A one-liter LiF milk box sells for VND36,000 and the price of a 250ml box is VND12,000. Representatives of the two firms said they are researching to turn out dairy products suitable for domestic consumer tastes. IDP, established in 2004, got a US$75 million investment from Japan’s Daiwan PI-Partner and Vinacapital VOF in 2014. Handicraft festival kicks off in town A handicraft festival kicked off in HCMC last Saturday, with 13 enterprises and two universities taking part. This is the first time the Handicraft and Wood Industry Association of HCMC (HAWA) has organized the Saigon Showcase - HAWA Craft event to create opportunities for the participants to introduce their products to buyers, travel firms, individuals and organizations interested in this sector. Nguyen Quoc Khanh, chairman of HAWA, said Vietnam’s handicraft industry is holding strong growth and export potential. Vietnamese products made from bamboo, rattan and rush, carpets, and ceramic items  have made their way to international markets. Statistics of the Ministry of Industry and Trade show that last year saw steady growth in exports of products made from bamboo, rattan and rush, and carpets with total turnover of US$259.85 million, up 3.85% over 2014. The European Union (EU), the U.S., and Japan are key export markets for these products, accounting for 35.6%, 23.6%, and 16.2% of total export revenues respectively. Exports of ceramic handicrafts and home appliances brought US$148.1 million last year, up 3.4% compared to 2014. The EU and the U.S. were still the biggest buyers of these products, making up 45.66% and 28.01% of total export sales, followed by Australia with 5.64%, Japan with 5.35%, Canada with 2%, Korea with 1.78%, and China with 1.02%. HAWA expects the event to help the participating enterprises gain much-needed access to potential markets. Vietnam Star opens body and paint center for luxury cars Vietnam Star Automobile, the largest distributor of Mercedes-Benz cars in Vietnam, last week opened a Body & Paint Center in Tan Thuan Export Processing Zone, District 7, HCMC to provide body and paint services for luxury cars. Eugene Losew, general director of Vietnam Star Automobile, said the luxury car market segment has grown robustly in recent years, thus fueling demand for body and paint services of high-end car owners. Customers also demand top-notch quality, minimum lead-time and reasonable cost. Vietnam Star Automobile is confident that it can meet all those requirements now that it has a reliable body and paint center in place. This new facility marks a 10-year milestone of Vietnam Star Automobile and opens up a new era of better and sustainable development in the future, Losew said. The US$5-million Vietnam Star Body & Paint Center has total floor space of nearly 9,200 square meters. Aside from the Mercedes-Benz brand, the facility is ready to meet demands of owners of other luxury brands like Porsche, Audi, BMW, Lexus, Rolls-Royce, Maserati and Lamborghini. At the center, the car body goes through all the steps of a complete coating process in line with official dealer standards. When a sunken automobile is brought to the workshop, a technician must go through two phases – brazing (silver-copper) and painting. It is able to simultaneously provide body and paint services for 10 to 15 cars within a day to reduce wait time for customers. For minor scratches, customers can get their cars back within four to six hours on the same day. In addition, the center is in cooperation with partner insurance companies to provide the best service packages for customers using its body and paint services. It also maintains and repairs Mercedes-Benz cars thanks to the availability of equipment and global-standard personnel of Mercedes-Benz. On the occasion of its inauguration, the Vietnam Star Body & Paint Center offers the first 50 customers a set of 3M premium car care products. Domestic rubber price shoots up The domestic rubber price has surged 68% compared to January 15 to VND40 million (US$1,788) a ton. According to the rubber website thitruongcaosu.net, the free-on-board (FOB) prices of SVR CV, SVR L, SVR 10 and SVR 20 rubber products are quoted at VND40.8 million, VND38.5 million, VND31.5 million and VND31.4 million per ton respectively, up VND100,000-200,000 a ton versus May 11. Rubber has rocketed by 68-75% versus January 15 when SVR CV, SVR L, SVR 10 and SVR 20 rubber were sold at VND28 million, VND26.87 million, VND23.8 million and VND23.7 million per ton respectively. The Vietnam Rubber Association (VRA) ascribed the rubber price rises to drought that has sent rubber output of Thailand, one of the world’s leading rubber producing countries, slumping by 50%. Other reasons are the world oil price increase and higher global consumption of automobile tires triggered by rising demand for new cars. When the rubber price dropped due to oversupply in Vietnam in previous years, VRA urged rubber growers and companies to replant their old trees. This has also resulted in global supply falling as Vietnam is the world’s fourth biggest rubber exporter. Earlier this year, Tran Ngoc Thuan, general director of the Vietnam Rubber Group (VRG), said if the world oil prices fell further, domestic rubber would drop to below VND20 million (US$899) per ton. However, the oil price has picked up significantly, contributing to the rubber price improvement. This is good for VRG since latex sales make up more than half of the group’s total revenue. VRG posted revenue of VND18 trillion (US$806.8 million) last year, with VND10 trillion (US$448.2 million) of it contributed by latex sales. Latex averaged out at VND30.5 million (US$1,367) in 2015, equivalent to 82% of 2014. EVN says to guarantee sufficient electricity for southern region Vietnam Electricity Group (EVN) has committed to supplying sufficient power for the south that is facing possible energy shortages as protracted drought has caused hydropower reservoirs to ebb to alarming levels. Last month electric power was transmitted from the north and central regions to the south through the 500-kV northern-central and central-southern lines with a peak capacity of 2,360 MW and 2,000 MW respectively, according to EVN. EVN is maximizing the diesel-fueled power stations to offer the output shortfall at drought-hit hydropower plants. Hot weather will lead to an upsurge in electricity demand this month and next. EVN said an additional 539 million kWh a day would be needed to address the rising demand. To push up the nation’s electricity output, EVN will install the rotor of the first generator at Song Bung 2 hydropower plant and install equipment for the second generator at Lai Chau hydropower plant this month. The group will install equipment at Huoi Quang hydropower station next month. It will put in place two generators at Vinh Tan 2 thermal power station and two others at Duyen Hai 1 thermal power facility . EVN plans to set up the 2,500kV Pleiku transformer, and finish work on the 500kV Duyen Hai-My Tho transmission line. The National Center for Hydro-meteorological Forecasting said severe drought has taken a heavy toll on the south-central provinces of Khanh Hoa, Ninh Thuan and Khanh Hoa, and the Central Highlands provinces of Kon Tum, Gia Lai and Dak Lak. Water levels in most hydropower reservoirs in the central and Central Highlands regions in the first ten days of this month were one to nine meters lower than normal. The levels were even 11-18 meters lower than expected at other hydropower plants such as Ban Ve, Kanak, Yaly, Buon Tua Srah, Don Duong, Ham Thuan, Dai Ninh and Thac Mo. Hydropower reservoirs like Ba Ha, An Khe, Se San 4A and Buon Kuop have almost dried up. First armor factory board shipbuilding inaugurated in Quang Nam Quang Nam province yesterday held a ceremony to inaugurate Thien Hau Phuoc shipbuilding yard and announce a decision of the People’s Committee of Quang Nam province as recognizing the first armor factory board shipbuilding in the province. Thien Hau Phuoc shipbuilding joint-stock company is the investor of the shipbuilding yard. The project under the Government's Decree 67 to modernize fishing vessels exploitation for fishermen. The establishment of the shipbuilding yard will create favorable conditions for local fishermen of Quang Nam and Quang Ngai for fishing. The shipbuilding factory was built at deep-water port on Truong Giang River to allow travelling heavy-loaded ships under 3, 000 tons. At the inauguration ceremony, Thien Hau Phuoc shipbuilding joint-stock company signed the first contract with Phan Ba Tam, a resident living in Tam Giang commune, Nui Thanh district, Quang Nam with total value of VND 18 billion. Discover the latest in food science at Food Ingredients Vietnam 2016 Food Ingredients Vietnam 2016 (Fi Vietnam 2016), held in Ho Chi Minh City from May 18 to 20, is going to showcase the latest trends in food science in emerging Cambodia-Laos-Myanmar-Vietnam (CLMV) countries. The only event dedicated solely to food ingredients in the region, the exhibition offers conferences, seminars and in-depth insight especially in the beverage sector. Participants can see, touch, taste and experience the newest food ingredients, look at the latest trends, and the most recent innovations driving food science and product development, and network with food professionals in industry, government and academia, from not just the region, but also the world.   The event, organised by exhibition organiser UBM Asia in cooperation with the Vietnam Association of Food Science and Technology (VAFoST), the Cambodia Association of Food Science and Technology (CAFST), the Food and Foodstuff Association of Ho Chi Minh City (FFA) and the Vietnam Beer, Alcohol and Beverage Association (VBA), is expected to attract 4,500 visitors and more than 150 exhibitors from Vietnam, France, Germany, Poland, Italy, Thailand, India, Japan, Taiwan, China, Malaysia and Korea. Fi Vietnam 2016 will also host the prestigious annual VAFoST Young Achievers’ Safe Food Competition, with the support of the Saigon Technology University. This year, the competition’s theme is ‘Greener food products for ASEAN consumers’. Undergraduate students from universities and colleges with Food Technology programmes in Vietnam and Cambodia are asked to create innovative packaged food products (new formulations, new product formats, new packaging, etc.) from domestic material resources that are stable at room temperature. UBM has supported students by providing funds to the 20 teams to develop their competition entries. The teams’ developments are going to be showcased at Fi Vietnam 2016. “UBM is always looking to the future of the industry. We aim to support students and encourage them to become the next generation of food scientists,” said Rungphech (Rose) Chitanuwat, business director of UBM Asia. Fi Vietnam 2016 is going to be held from May 18 to 20 at the Saigon Exhibition and Convention Centre at 799 Nguyen Van Linh street, Tan Phu district, Ho Chi Minh City. One can register online at www.fi-vietnam.net/register to receive a free three-day entrance pass, a free show catalogue and free entrance to all onsite features. The website also provides a full list of confirmed exhibitors, conference and seminar programmes. With a population of more than 90 million, Vietnam is one of the most promising consumer markets in Asia, benefiting from favourable demographics, rapid urbanisation and increasing disposable incomes.  As a result, the Vietnamese food and beverage (F&B) market has grown at a rapid pace, and consumers have started to prefer the convenience of packaged food and products, which take less time to prepare and eat. Euromonitor predicted retail sales in the packaged food market in Vietnam to reach over $12 billion in 2019, growing 30.7 per cent from 2014. High growth products in the forecast include ice cream, chilled, and frozen processed food, ready meals, baby food, meal replacement, dairy, canned/preserved food and pasta. The world’s biggest brewer, Anheuser Busch InBev, said Vietnam is the “next turning point” for growth in Southeast Asia, when it opened its first brewery in the country last year.  According to the VBA the F&B sectors have enormous potential for development with a stable annual growth rate of 7-8 per cent. Owned by UBM plc listed on the London Stock Exchange, UBM Asia is Asia's leading exhibition organiser and the biggest commercial organiser in mainland China, India and Malaysia. Established with its headquarters in Hong Kong and subsidiary companies across Asia and in the US, UBM Asia has a global network of 32 offices and 1,300 staff in 24 major cities. UBM Asia operates in 19 market sectors with 230 exhibitions and conferences, 28 trade publications, 18 online products for over 2,000,000 quality exhibitors, visitors, conference delegates, advertisers and subscribers from all over the world. Vietnam dairy firm eyes investment opportunities in Russia The Vietnamese dairy firm TH True Milk is looking to expand its investment in Russia following its first project on dairy cow breeding and farming in the European country. The group’s delegation expressed the intention during a three-day visit to Russia’s Kaluga province from May 13-15. Following a tour of local farms and production facilities of the Russian-Germany join venture EkoNiva-Kaluga, Chairwoman of TH True Milk Thai Huong highly evaluated Kaluga’s business climate. She said she hopes to invest in a dairy cow breeding and vegetable farming project in the province. Kalua Governor Artamonov said it is important that Vietnamese enterprises come to study investment opportunities in the province, adding that he hopes the TH True Milk will find attractive investment conditions and potential partners in the locality. Russia is the first offshore investment destination of the TH True Milk. The group is expected to start work on its dairy cow breading and farming cluster in Moscow during Prime Minister Nguyen Xuan Phuc’s official visit to Russia this month. Kaluga could be the group’s next destination in Russia. With the projects, TH True Milk is said to have seized opportunities offered by Russia’s current agricultural stimulating policy while helping to bolster bilateral relations between Vietnam and Russia, contributing to lift two-way trade turnover to 10 billion USD in 2020. TH True Milk broke a record by the India-based Asian Record Organisation to become the top Asian large-scale and high-tech dairy farm in 2015. Vietnam’s rice exports little affected by Thailand’s bargain sale Thailand’s plan to sell off more than 11 million tonnes of rice reserves will not impact Vietnam’s rice exports, according to several exporters in the Mekong Delta city of Can Tho. Nguyen Trung Kien, chairman of Gentraco Corporation, one of the city’s leading rice exporters, said sales from Thailand will not be competitive with Vietnamese rice as about 80 percent of Thailand’s proposed sales are for industrial use. Thailand’s move may affect the volume of Vietnamese rice exports but not export markets as the reserve rice is old and of low quality which can only be used in food processing or sold to some poor countries and humanitarian organisations, said Pham Thai Binh, Director of Trung An Co. Ltd. Vietnam has stable export markets which prefer high-quality and newly-harvested rice, Binh said. The world’s demand for rice is also rising as the output of rice in several countries is likely to decline due to bad harvests, he said. Binh said that Vietnam’s rice exports this year are likely to reach 7 million tonnes. According to Nguyen Minh Toai, head of the municipal Department of Industry and Trade, rice exporters need to closely monitor Thailand’s clearance sale. In order to maintain traditional rice markets, exporters should keep close track of demand and further improve products’ quality, according to several enterprises. Last year, Vietnam was the third largest rice exporter in the world with an export volume of 6.4 million tonnes. Work starts on Hanoi’s largest inland clearance depot Deputy Prime Minister Truong Hoa Binh on May 15 launched work on the construction of Hanoi’s inland clearance depot – the largest one in the capital. The construction of the 47.2ha depot will be divided into two stages, with the first one covering 19.2ha and the second on 28ha. The first stage, costing nearly 782 billion VND (35.5 million USD), is scheduled for completion in the fourth quarter of 2019. Once completed, it is capable of handling 380,000 TEUS. The second stage, worth 1.78 trillion VND (81 million USD), is designed to handle 760,000 TEUs annually once it is completed in the fourth quarter of 2020. The project is invested by Hanel One-member Co Ltd and Lang Ha Tower Co Ltd. The depot will provide hi-tech logistics, support, storage and distributions services for economic and industrial zones in the east of Hanoi and adjacent provinces, said General Director of Hanel Nguyen Quoc Binh. Vietjet launches three new Hai Phong routes On May 12, to celebrate the opening of the new terminal at Cat Bi International Airport in Hai Phong, Vietjet launched three new routes from the northern city to Phu Quoc Island, Da Lat and Buon Ma Thuot, to meet increasing travel demand from tourists, businesspeople and individuals. With the three new routes joining the existing destinations of Ho Chi Minh City, Da Nang, Nha Trang and Pleiku, Vietjet has become the largest carrier flying in and out of Hai Phong, with around 30 flights a day, or 70 per cent of the total capacity at Cat Bi International Airport. The Hai Phong - Phu Quoc route started on May 12 with four flights a week, on Tuesday, Thursday, Saturday and Sunday. The Hai Phong - Da Lat route starts on May 20 with three flights a week, on Monday, Wednesday and Friday. The Hai Phong - Buon Me Thuot route, meanwhile, will start on June 2 with four flights a week, on Tuesday, Thursday, Saturday and Sunday. Vietjet will increase the number of flights on these routes in the future. Mining-sourced tax collection needs improvements Tax collected from the mining of natural resources, excluding crude oil, accounted for between 0.9 – 1.1 percent of the total state tax collections in the 2011-2013, according to the Ministry of Finance. The amount is a far cry from the scale of exploitation activities, said delegates to a workshop held by People and Nature Reconciliation (PanNature) on May 13. Le Xuan Truong from the Academy of Finance said imperfect natural resource taxation policy has created loopholes for enterprises involved to evade tax. Besides, the coordination among tax agencies and natural resources and environment bodies remains inefficient, resulting in remarkable tax gap, he said. Tran Thanh Thuy, the co-ordinator of the Minerals Alliance, suggested the application of international standards on taxation management, naming the Extractive Industries Transparency Initiative (EITI), which has been used by 49 nations around the world, including the UK, the US, and Norway. Vietnam has accessed the EITI since 2006 but has yet joined it, according to Thuy. The country ranked seventh in the Asia – Pacific region in terms of crude oil production, and contributed 2.3 percent to the world’s output of tin and 1.8 percent to the globe’s cement production in 2012, participants heard. According to the Ministry of Natural Resources and Environment, Vietnam dug out 42.6 million tonnes of coal, 3 million tonnes of iron ore, 3 million tonnes of apatite, 193,000 tonnes of manganese, and a huge volume of other minerals in 2013. PanNature Director Trinh Le Nguyen was worried that if that exploitation tempo in the country continues, natural resources will be exhausted in the foreseeable future. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR