BUSINESS IN BRIEF 24/5 More Vietnamese consumers support local brands More than two thirds of consumers in Vietnam or 69 percent believe local brands are most attuned to their personal needs and tastes, according to a report recently released by global measurement company Nielsen. The Nielsen Global Brand-Origin Survey examined whether consumers prefer goods produced by global/multinational brands (defined as those that operate in many markets) or by local players (those operating only in a single market – the respondent’s home country). The report said consumer sentiment is a contributing factor to this rebalancing toward Vietnamese players. It found that country of origin preferences differ by category, but consumer preference has started to favour local brands over global brands. Even in categories where global brands have historically dominated — such as shampoo, carbonated soft drinks, facial care, facial moisturiser and infant formula — local brands are growing more rapidly, echoed by positive consumer sentiment. Around 80-90 percent respondents in Vietnam say a brand’s country of origin is as important as or more important than nine other purchasing drivers, including selection/choice, price, function and quality. The report also highlighted national pride is the key factor contributing to consumers’ choice of local versus global brands in Vietnam. A desire to support home-grown brands makes nearly half of Vietnamese respondents (48 percent) choose local brand instead of global one. Besides, value for money (40 percent) and having positive experience with the brand (27 percent) are among the top-selected reasons for selecting a product. “The entry of multinational companies (MNCs) into new markets — while presenting advantages for local consumers who gain access to a greater range of products — can be a big challenge for local companies, which are suddenly faced with daunting foreign rivals that have an array of advantages, including vast financial resources, diverse talent pools, sophisticated technology infrastructures and well-established delivery and operating practices,” says Laura McCullough, managing director, client service leader of Nielsen’s growth and emerging markets. “However, in recent years many local companies have not only survived the competition from multinationals, but have outperformed them in Southeast Asia,” she said. Shrimp breeders lack access to supply chains A lack of a supply chain has caused problems for shrimp breeders in the Mekong Delta province of Sóc Trăng. Nguyễn Văn Bắp, 45, Hòa Nhờ A Village, Mekong Delta Sóc Trăng Province’s Mỹ Xuyên District, owner of a 1-hectare shrimp pond, said he had to search for baby shrimp to buy and search for customers for his fully grown shrimp. Although Bắp was involved in the village’s Agriculture and Fishery Co-operative for shrimp breeders for more than a decade hoping to join a supply chain, he only learned how to raise shrimps. Bắp said he could earn about VNĐ300 million (US$13,400) a year if he could find healthy baby shrimps and sell his shrimp at a good price. If not, he earned about VNĐ50 million ($2,240) a year. It’s tough to cover a family’s expenses with VNĐ50 million, he said. Trịnh Thị Phương, 41, said shrimp breeders like her needed support from co-operatives or an agency to connect with companies who will buy shrimp in stable prices and quantities. “It’s harder for shrimp breeders to find buyers and negotiate prices than if an agency helped us,” she added. Ngô Công Luận, head of the co-operative, said it had 21 members with a total pond area for raising shrimps of more than 27 hectares. The yearly productivity of all members was five times higher after joining the co-operative, he said. “Productivity is now about 50 tonnes of shrimps per year,” he said. Luận said, the co-operative began to engage in the supply chain last year. The co-operative worked with several local breeding-food agents to ensure a stable source of breeding food for shrimp farmers, he said. However, the co-operative failed to connect with companies supplying healthy baby shrimps or companies to buy the fully-grown shrimps, he said. Companies selling baby shrimps often required breeders to buy in bulk and the breeders did not have enough money to do that, he said. The co-operative was small-scale, so it did not have enough money to pay in advance, he said. Trần Đình Luân, director of the provincial Agriculture and Rural Development, said that breeders and authorised agencies knew a supply chain model was important to developing agriculture. In the livestock sector, supply chains bring many benefits, including ensuring food hygiene and safety standards, he said. In a supply chain, a breeder has to follow regulations on food hygiene and safety standards. This reduces risk for breeders and companies, he added. A decision issued by the Government in 2013 to approve agricultural restructuring by 2020, had boosted supply chains in the livestock sector, he said. However, applying supply chains in the province was difficult. Co-operatives lacked capital to assist breeders and could not borrow money from banks due to a lack of collateral, breeders also knew little about supply chains and did not know how to connect with companies, he said. To tackle the situation, the province planned to establish an additional 120 sub-cooperatives in 2016-17, and ask for financial and technical support from non-governmental organisations to bring breeders, co-operatives and companies together into a supply chain, he said. Sóc Trăng Province now has more than 21,000 shrimp breeders, with 22 co-operatives and 170 sub-cooperatives. In a related movement, Oxfam is set to laucnh on May 25 a four-year project, worth EUR2.5 million (US$2.8 million), named “Sustainable and equitable shrimp production and value chain development” in the Mekong Delta provinces of Sóc Trăng, Bạc Liêu and Cà Mau. The project is in partnership with the International Collaborating Centre for Aquaculture and Fisheries Sustainably. It is expected to benefit about 20,000 shrimp breeders and 30 small- and medium-sized enterprises in the provinces. PM urges ministry to finish decree on voluntary pensions Prime Minister Nguyen Xuan Phuc has urged the Ministry of Finance to complete drafting of a decree on a voluntary pension (superannuation) fund for approval by the end of May. A voluntary pension fund is a popular investment fund in the global finance market which is normally operated to raise funds through contributions of members and invested with a view to increase the fund's asset value and income of fund members in their old age. According to experts, the fund would not only contribute to improving social welfare as a long-term saving but also supply capital to boost demand for the securities market, especially the government bond market, thanks to its investment activities. The draft decree was expected to develop the legal framework for the operation of the fund in Viet Nam. Market players have been waiting for the decree on the fund as its issuance missed several deadlines due to overlaps and inconsistencies in regulations between the Ministry of Finance and the Ministry of Labour, Invalids and Social Affairs. The decree was supposed to have been issued in 2014, and then again in 2015. The capital market working group of the Viet Nam Business Forum last year urged the legal framework for the funds to be issued soon. The fund was one of the conditional businesses listed in the Law on Investment which have requirements for their conduct. The prime minister said that the legal frameworks for conditional businesses must be issued before July 1. Pepper industry to focus on quality growth Viet Nam's pepper industry plans to focus on improving quality to ensure long-term growth and satisfy demand from import markets, an official of the Viet Nam Pepper Association (VPA) has said. Speaking at its annual meeting in HCM City yesterday, VPA's chairman Do Ha Nam said the industry had seen robust growth, but faced challenges related to climate change and stunted vines on farms. High pepper prices in recent year have persuaded farmers to expand cultivation, even on unsuitable land without any planning, while the overuse of fertilisers has caused plants to degenerate quickly and be more vulnerable to disease. "New free trade agreements will open opportunities for the industry to boost exports but there are challenges, especially in ensuring quality, hygiene and food safety," he said. With import markets like the US and EU demanding higher food safety requirements, VPA and delegates at the meeting called on farmers, processors and distributors to focus more on safety and hygiene. They also suggested speeding up the process of sustainable pepper production to improve quality and better protect the environment. Tran Minh Tam, director of the EaKtur Coffee Company, said his company was trying to implement a sustainable process for pepper production. However, this kind of cultivation requires high investment costs, but the price is only VND3,000 higher than pepper grown under typical methods. As a result, farmers do not have a strong interest in using the sustainable method. He suggested that VPA develop measures to increase purchase prices of certified sustainable pepper and raise awareness among farmers about production following safety standards. Dang Ba Dan, director of the Pepper Research and Development Centre, suggested that the industry use organic fertilisers and disease-resistant seedlings for their pepper farms Delegates suggested that the Ministry of Agriculture and Rural Development quickly review the list of pesticides and ban the use of chemicals containing active elements such as Carbendazim, Permethrin, Methalaxyl and others, which foreign markets have banned from using in pepper production. Bui Chi Buu, former director of the Southern Institute for Agricultural Science and Technology, said pepper exporters should develop close links with farmers to better control quality. Viet Nam's pepper exports hit a record US$1.27 billion last year, with 133,569 tonnes of the spice exported, a drop of 12 per cent in volume but a rise of 5.4 per cent in value over 2014, Nam said. In the first four months of the year, exports were worth $561.68 million, 9.36 per cent higher year-on-year, he said, adding that Viet Nam's pepper exports were expected to reach 150,000 tonnes this year. By the end of last year, the country had 85,000ha under pepper, yielding130,000 tonnes of pepper. Viet Nam accounted for 32 per cent of the world's total pepper output and held more than 56 per cent of world market share. Vietnamese pepper products are exported to 100 countries and territories, with Asia, Europe and the US being the biggest markets. According to the latest report of the International Pepper Community, in recent years global demand for the spice increased at an average rate of 3.5 per cent per year or 10,000-12,000 a year. Global consumption could be 450,000 tonnes per year in the near future, it said. The impact of unfavorable weather such as El Nido, and typhoons in main producing countries such as Indonesia, Brazil, India and Viet Nam, will shrink output, so demand is expected to be higher than supply despite the increase in cultivation areas in many countries, according to IPC. Social housing set for loans boost  Hundreds of trillions of dong in preferential loans will be provided for social housing development, according to chairman of the Viet Nam Real Estate Association Nguyen Tran Nam. Nam said at an online forum hosted by Dien Dan Doanh Nghiep (Business Forum) newspaper on Wednesday that commercial joint stock banks with controlling State stake-holdings would have to spend 3 per cent of their total outstanding loans for developers and buyers of social housing projects. This 3 per cent would be equivalent to some VND300-400 trillion (US$13.4-17.9 billion), Nam said, adding that there would be no deadline for this loan package. Initial preparations are underway, with the central bank appointing four commercial banks, Vietcombank, Vietinbank, BIDV and Agribank, to provide preferential loans for developers and buyers of social housing projects, as well as the issuance of Circular 25/2015/TT-NHNN late last year on providing preferential loans for enforcing social housing development policies. However, commercial joint stock banks have not started putting this into practice as they are still disbursing the remainder of the VND30 trillion housing stimulus package, which was approved for a deadline extension until all the money is disbursed, Nam said. Another source of capital for housing development for low-income earners will come from the Viet Nam Bank for Social Policies, Nam said, adding that the construction ministry was co-operating with the bank to develop this loan package. "Home-seekers should not be worried," Nam said. Pham Minh Tuan, deputy director of Hai Phat Invest, in charge of social housing project The Vestas, said capital for social housing development was very important, and he urged the Government to introduce timely measures in this regard. Large banks want foreign owner cap to be increased  Large banks have asked the Government to increase the cap for foreign stakeholders in the banks from the current stipulated 30 per cent to more than 40 per cent. Vietcombank is proposing to issue new shares equivalent to 10 per cent of its capital to foreign investors. Japan's Mizuho Corporate Bank Ltd, which owns 15 per cent of the bank, plans to acquire another 5 per cent. If the proposal is approved, Vietcombank's foreign ownership will rise to around 35 per cent from the current 21 per cent. Vietinbank general director Le Duc Tho said that the bank would seek permission from the Government to increase ownership for foreign investors at his bank to 40 per cent or even higher. However, the State would still hold the dominant ratio of 51 per cent in the banks, he said. The rise would help Vietinbank, the country's second largest lender by assets, to raise its foreign ownership from the current 27.75 per cent to more than 40 per cent. At the shareholders meeting recently, Sai Gon Commercial Joint Stock Bank (SCB) general director Vo Tan Hoang Van also announced that the State Bank of Viet Nam allowed the SCB to find foreign strategic investors to sell 50 per cent of the bank's stakes. An Binh Bank is also expecting to increase the caps for foreign stakeholders at the bank to 49 per cent. MayBank and IFC are currently among An Binh Bank's largest shareholders, holding 30 per cent of the bank's charter capital. According to experts, the cap increase for foreign stakeholders in local banks is indispensable as it will help the banks improve their restricted finance and governance, and grow rapidly in the context of rising competition from the country's integration into the world market. Under the current regulations, cap on foreign holdings in a Vietnamese bank is set at 30 per cent. However, according to experts, the rule makes investment into domestic banks less attractive as foreign investors with low stakes have no say in the decision making process in such banks. Domestic commercial banks also said that it is hard for them to find foreign strategic partners due to the current rules on foreign ownership limits. The Bank for Investment and Development of Viet Nam (BIDV), for example, early last year planned to find foreign strategic partners, selling a 15 per cent stake to a foreign strategic partner and 10 per cent to a foreign financial investor. However, it failed in its search. Another example is Military Bank. After failing to find suitable foreign strategic partners for a long time, the bank recently had to change its plans and decided to increase stakes for foreign investors from 10 per cent to 20 per cent through an additional share issue. The same trend was seen with VP Bank after its strategic partner - the Singapore-based Overseas Chinese Banking Corporation Limited (OCBC) - withdrew its capital from late 2013. Finding no foreign strategic partners, VP Bank had to ask its shareholders in October 2015 to approve a plan to issue a number of shares, equal to 20 per cent of the bank's capital, to overseas investors in order to raise capital to serve the bank's core businesses. However, to attract foreign strategic partners, besides cap increase of foreign stake holdings, experts also recommended to domestic banks that they improve their transparency. Deputy Director of the Central Institution for Economic Management Vo Tri Thanh said that transparency was a key factor in attracting foreign partners. Transparency must exist at all levels and banks must commit to it, both, in their reporting and operations, he said. VN startup community showcases tech solutions  FPT Tech Day 2016 was held in HCM City early this week to enable Viet Nam's startup community to showcase their solutions to local and international tech experts. The event, organised by software giant FPT, also attracted a number of young visitors seeking the latest made-in-Viet Nam apps and technologies. Among the key foreign guests were Rajan Anandan, deputy president and managing director of Google Southeast Asia and India, and Kirsten Gilbertson, public and private cloud sales lead with Microsoft in the Asia-Pacific. Some successful Vietnamese startups also attended the event, including the mobile e-wallet, MoMo, and the English pronunciation assistant app, Elsa. In March, M_Service, the operator of MoMo, received a combined US$28 million investment - from Standard Chartered Private Equity, which invested $25 million, and from Goldman Sachs, which put in an additional $3 million on top of its existing $5.75 million funding. BKAV Tech holds annual online security event The BKAV Technology Group organised a national online security rehearsal in Ha Noi on Thursday with the aim of helping offices, businesses and organisations cope with network attacks. Twenty-five participant teams from the Ministry of Public Security, banks, information and telecommunication departments, universities and businesses took part in the rehearsal, which occurred at Whitehat.vn Forty per cent of Vietnamese websites have weak security. The national online security rehearsal is an annual event organised by BKAV. This year, there were over 100 teams registering to take part, but to ensure quality of the rehearsal, only 25 teams were chosen. Other teams will be selected in the next rehearsal in September. HCM City to host first int'l coffee and dessert fair The first Viet Nam International Coffee and Dessert Fair will take place at Saigon Exhibition and Convention Centre from June 8-10, providing an international platform for buyers and sellers to network and explore business opportunities in the country's promising coffee and dessert industry. The fair will feature over 200 coffee and dessert brands coming from 14 countries, with famous brands and companies like PERFECTO, Charlie Wemsbley, Nestle, Vovos, Me Trang, Mac Coffee, Street Coffee, Phuong Vy, Coffee Mr. Brown, Tan Nhat Huong Company, and Ly Gia Vien. During the exhibition, 64 talented baristas from coffee shops, restaurants and bars throughout Viet Nam will compete at a three-day Barista Championship competition, the biggest of its kind in Viet Nam. The winner will have a chance to join the World Super Barista Championship 2017 in Seoul, Korea. Organised by Coex, Korea's biggest exhibition organiser Coex, the Viet Nam Coffee and Cocoa Association and Vinexad, the fair is expected to welcome more than 50,000 visitors. Hanoi unveils new initiative to improve investment climate Hanoi, with its emerging domestic market and abundant low priced labour, has sparked lots of interest among foreign businesses who view the City as a potential ‘new destination’ for foreign direct investment (FDI). However, the City needs much more FDI than it has currently garnered if it is to accomplish its socio-economic goals and join the ranks of middle-income cities, said Nguyen Duc Chung of the Hanoi People’s Committee.   In order to develop a comprehensive plan to attract new businesses to the City and formulate a cohesive platform focusing on solutions to issues such as regulation, legal matters as well as financial, banking and taxation procedures, the city has scheduled a conference for June 4 at the Lotte Hotel in Hanoi. “We need to seriously address investment climate issues in a professional manner,” said Mr Chung, and select the best suited industries and create a sound environment for the selected industries to operate. We have invited representatives of the World Bank, Asian Development Bank, France Development Agency, Japan External Trade Organisation, Japan Bank for International Cooperation, Korea International Cooperation Agency and American Chamber of Commerce in Vietnam to participate in the conference. In addition, we are tentatively planning on nearly 800 delegates of the government at all levels from the national to the local to attend and provide their insights into how the City can attract and motivate foreign businesses. Mr Chung also emphasized the importance of producing opportunities for the selected industries by integrating different segments of issues such as trade and supply chains, infrastructure, environment, working safety, standard and quality of products and so on. In this context, he said, our activities on the investment climate will have a great potential to initiate such an environment where active discussions among government officials from various ministries and agencies may set a cornerstone to promote promising core growth and a more competitive investment climate in Hanoi. VN tuna exports decline 5.5% year-on-year in Q1 Viet Nam's tuna exports to China have risen sharply this year but exports to traditional markets like the US, EU and Japan have fallen, according to the industry association. The Viet Nam Association of Seafood Exporters and Producers (Vasep) said tuna exports in the first quarter fell by 5.5 per cent year-on-year to US$98.5 million. Shipments to the US were 4.4 per cent down to $36 million. Exports of fillet and tenderloin went up by 34 per cent while those of other products plummeted. Exports to the EU and Japan dropped by 14.3 per cent and 6 per cent to $24.2 million and $3.8 million. Viet Nam exported to 85 countries and territories, though the US, EU, ASEAN, China, Israel, Japan, Mexico, and Canada accounted for nearly 88 per cent. Vasep attributed the fall in exports to key traditional markets to the scarcity of the fish, complex regulations on the import of natural tuna in those countries, and food safety, origin and packaging requirements. Therefore, only companies that have their own fishing vessels or work closely with fishermen can maintain exports to these fastidious markets, it said. According to Viet Nam Customs, tuna exports to China were worth nearly $7 million, a year-on-year increase of nearly 253 per cent. Appearing among the top 10 tuna buyers from Viet Nam since last year, China is a promising market that has replaced Japan in fourth place, Vasep said. This year it has increased imports of tuna fillet from Viet Nam by 372 per cent to nearly $1.4 million. But its import of canned tuna fell 35 per cent to $383,000. According to the International Trade Centre, in recent years, while China's imports of processed/canned tuna have been on a downward trend, imports of fresh/live/frozen tuna have risen. A jump in Viet Nam's tuna exports to China was driven by difficulties in exporting to major markets, which forced Vietnamese enterprises to eye the new, promising market, the association said. Besides, demand for tuna in China and for re-export to Europe by Chinese companies also rose, it added. But while Vasep is sanguine about this market, many exporters are wary saying there are implicit risks in terms of prices, payment methods and quality requirements. ASEAN has also emerged as a promising market, with exports rising by 19.5 per cent in the first quarter. Thailand alone accounted for nearly 72 per cent of the shipments. The association said besides boosting exports to new markets like China and ASEAN, exporters must also work to keep their traditional markets. They should strengthen collaboration with fishermen to ensure stable supply of the fish, it said, adding they should do business only with those using modern technologies and comply with international fishing regulations to ensure their products are accepted in choosy markets. Dong Thap promotes fruit exports Dong Thap’s specialties have been exported to the US, Japan, the Republic of Korea, China, and New Zealand. Exported fruits are Cat Hoa Loc and Cat Chu mangos and Edor longan. The exports are a great encouragement for Dong Thap farmers to develop their brands. Ho Van Son, a farmer in An Nhon commune, Chau Thanh district, the home of longan, said the exports of Vietnamese fruits faced difficulties some years ago. Now Dong Thap’s fruits have had their brand names recognized and been available in a number of demanding markets with a new shipment of 150 tonnes of Edor longan to the US. Son said that to satisfy the export criteria, farmers have strictly followed he Vietnam Agriculture Practice (VietGAP) and the Global Good Agricultural Practice (GlobalGap) standards. The US Animal and Plant Health Inspection Service has granted codes to 17 households in Chau Thanh to grow longan qualified to enter the US market. Truong Van Roi, Director of the Chau Thanh Longan Cooperative, said “We have called on local farmers to apply VietGAP standards in their cultivation and follow US’s regulations. They have done well and the outcomes are encouraging.” To date, the co-operative has provided exporters in Ho Chi Minh City with more than 300 tons of standardised Edor longan for shipment to the US. Phan Kim Sa, Deputy Director of Dong Thap’s Industry and Trade Department said “Once our longan is accepted by the US market, it can be exported to other demanding markets.” 2015 was a successful year for farmers in Cao Lanh District and Cao Lanh City who succeeded in building the Cat Chu mango brand and exported hundreds of tons of mangoes to restrictive markets including Japan, the Republic of Korea, and Taiwan. Huynh Thanh Ba, Deputy Director of the My Xuong Mango Cooperative in Cao Lanh District, confirmed that “In the future, the income of the farmers will be more stable if 70% of their mango output is for exports and the remainder is for the domestic market. In that way, our farmers can become well-off.” Nguyen Van Chi, Director of Tan Thuan Tay Mango Cooperative in Cao Lanh City, expressed their happiness to see that the integration process has helped many countries know about and buy Vietnamese mangos, especially Cao Lanh’s Cat Chu mangos. "We will call on our members to pursue this model,” said Mr Chi. In addition, red flesh dragon fruit and lemons are among Dong Thap’s export staples. The province has encouraged the sustainable cultivation of fresh fruit following VietGAP and GlobalGap standards to increase overseas shipments. Vinamilk removes foreign ownership cap, rejects branding concerns Vietnam’s dairy giant Vinamilk removed its 49% limit for foreign ownership after a shareholders' meeting on May 21, amid plans to divest its huge government stake. The scrapping was backed by the two biggest shareholders – the State Capital Investment Corporation (SCIC), a sovereign fund which is holding a 45% stake, and F&N Dairy Investment, which is controlled by Thai beer tycoon Charoen Sirivadhanabhakdi, with an 11% stake. A specific roadmap on the expansion of foreign ownership has not been revealed. SCIC has not given a timeframe for the sale of the government stake either. Questioned about the risk of losing the Vietnamese brand, one of the most valuable in the country, Vinamilk’s CEO Mai Kieu Lien said she does not think it should be a concern. “Foreigners invest in Vinamilk because of the brand. So I don't think there is anyone who will buy into Vinamilk to get rid of the brand, especially when it is the number one dairy brand of Vietnam,” Lien said, as cited by Tuoi Tre. The company is valued at US$7.85 billion and its brand is at around US$1.5 billion, she said. Vinamilk reported revenue of VND40.22 trillion (US$1.8 billion) last year, up 14% from 2014, and net profit of VND7.77 trillion (US$348 million), up 28%. The company is expecting a 11% rise in revenue and 6% in profit this year. Nielsen: Consumer confidence edges up in Q1 Vietnam’s consumer confidence index in the first quarter of this year rose by one point over the previous quarter to 109, according to Nielsen Vietnam. The score shows Vietnam was the fifth most optimistic country globally, said a report released by Nielsen Vietnam. The Vietnam score is lower than that of the Philippines at 119 and Indonesia at 117. The two countries rank second and third respectively on the global optimistic scale. Nguyen Huong Quynh, managing director of Nielsen Vietnam, said the index continues to be at a high level despite moderate market growth as it reflects future hopes of Vietnamese consumers. This optimism can be explained as Vietnam is still a young country, with 57% of the population under 35 years old. In addition, Vietnamese consumers tend to spend more improving the quality of life, Quynh said. “Today they see some challenges, but view these as a minor hurdle in a country where for the most part, upside will almost certainly continue,” she said in the report. However, Nielsen Vietnam still sees Vietnamese people in general as avid savers. When it comes to savings, consumers in Vietnam remain the biggest savers globally with 78% of respondents channeling their spare cash into savings accounts. Indonesia comes second with 75%, followed by the Philippines with 69%, Singapore with 67%, Malaysia with 67%, and Thailand with 66%. Eight in 10 Vietnamese have adjusted their spending habits over the past 12 months to cut down on household expenses. Around 61% have tried to spend less on new clothes and 58% have tried to cut down on out-of-home entertainment in comparison with this time last year, and around half of Vietnamese consumers have tried to save on gas, electricity and telephone bills. Sun Group receives top honours at BCI Asia Awards Sun Group has been named one of the top 10 largest green real estate developers in Vietnam in terms of the aggregate value of work performed over the past year at the BCI Asia Awards. “Winning this accolade is testament of just how much Sun Group has grown since its founding in 2007,” said Sun Group in accepting the award at a ceremony in Ho Chi Minh City at the InterContinental Asiana Saigon. “We have received a huge deal of praise for our work and it is fantastic to see it recognized on a national level.” The judges praised Sun Group for the creativity in its sustainable architecture and ecological design of the commercial and residential buildings that make up the Premier Village Phu Quoc. The developer was also commended for the quality of the build and the team’s considerate approach. The highly coveted BCI Asia Awards, presented annually, aim to celebrate those property developers that deliver the best sustainable commercial and residential schemes across Vietnam. HCM City aims to boost pet fish market The HCM City People's Committee has approved the Pet Fish Development Programme in 2016-20 with the aim of developing a sustainable pet fish industry. The programme aims to increase the quantity and improve the value of pet fish and upgrade infrastructure to ensure hygiene and protect the environment. All pet fish farms will take part in disease-safety supervision to create conditions for expanding exports. The city seeks to breed 150-180 million pet fish by 2020 and export 40-50 million (for US$50 million) of them. At the end of last year there were 286 farms breeding pet fish, mostly in outlying districts like 8,9, 12, Go Vap, Binh Tan, Thu Duc, Hoc Mon, Binh Chanh, and Cu Chi, and 278 pet fish shops. In the five years since 2010 the number of pet fish and their value both doubled to 120 million and VND534 billion ($24 million). The number of fish exported and their value also doubled to 13 million and $12 million. Now there are 10 companies exporting to 47 nations, 60-70 per cent to Europe and the rest to America, Asia and South Africa. Despite the fact that export numbers and turnover have increased significantly, most farms remain small and family-owned and cannot offer consistent quality in case of giant orders. Inefficient breeding and the small number of farms mean Vietnamese exports cannot match those of neighbours like Singapore, Thailand and Malaysia. To achieve the 2020 target under the programme, HCM City will develop farms and shops, provide them with new technologies, offer new sales and promotion programmes, offer incentives to develop the pet fish industry and strengthen co-operation between farms. Provinces with water, suitable terrain and land to farm fish and experience like Dong Nai, Binh Duong and Long An will co-operate with HCM City for the programme. Websites to trade pet fish online will be established to cut production and trading costs. Electronics and automobile imports from ASEAN skyrocket Imports of electronics and automobiles from ASEAN jumped high in the first quarter of this year, according to latest statistics from the General Department of Vietnam Customs. Imports of CBU cars increased by 87.6% to US$152 million. It’s noteworthy that most of the CBUs were imported from Thailand (valuing at US$142 million) and the rest from Indonesia (US$10 million). Automobile experts said automobile imports from ASEAN will continue to surge in the coming time. The sharp rise is attributable to tax cut from 50% to 40%. After the import duty from ASEAN will drop to 30% in 2017 and zero in 2018, the regional group will replace the Republic of Korea to become Vietnam’s major supplier of automobiles. Meanwhile, Vietnam also spent US$322 million on importing electrical and electronic products from ASEAN, including US$244 million for the products from Thailand. Imports of equipment and tools reached US$434 million, up 9.3% over the same period last year, of which US$179 million went to Thailand, US$102 million to Singapore and US$98 million to Malaysia. New measures needed to green fast-growing aviation Vietnam’s civil aviation sector was called to introduce new measures to meet the global goal of carbon neutral growth in aviation by 2020, including mobilising finance for the greening of the industry. “With upwards of 35 million passengers a year, a small ‘green’ fee applied to every passenger ticket would generate a new source of targeted revenue to green the industry while sustaining its competitiveness,” said Bakhodir Burkhanov, deputy country director of the UNDP. “These funds can help co-finance, for example, the conversion to electric vehicles in all airport operations across the country, the scale-up of energy efficient technology in all airports, and the introduction of renewable energy to power the growing number of airports.” With year-on-year growth of 14 percent, Vietnam’s civil aviation sector is one of the fastest growing in the world. The aviation sector has been a key driver of the country’s overall economic progress. But its rapid growth puts in jeopardy the achievements of the country’s target to reduce its national CO2 emissions. It is therefore critical to build a competitive, environmentally-responsible industry committed to addressing the climate change challenges of the 21st century. Gov't funds aid Kien Giang's marine economy The marine economy in Mekong Delta’s Kien Giang province has developed rapidly over the past five years after local government investment of 111 trillion VND (5 billion USD) in the 2011 – 15 period. Funds earmarked for marine infrastructure and national defense contribute up to 80 percent of the province’s total investment budget, according to Kien Giang Province’s People’s Committee. The funds have been used to build and upgrade the seaports, airports and transport systems of Phú Quốc Island and surrounding islands, including Lai Son, An Son, Tho Chau, and the sheltering area for boats in Kien Hai district. Electricity grids on Phu Quoc Island, and Hon Tre Island in Kien Hai district were built amongst other projects. The projects helped improve conditions for people living in coastal regions and islands in the province. Pham Vu Hong, chairman of the Kien Giang provincial People’s Committee, said the province’s marine economy had developed well, growing on average 11 percent per annum. The marine economy contributes 73 percent to Kien Giang’s GDP. Fishing, aquaculture, marine services, seafood processing and marine tourism have made strong progress in the past five years. With better infrastructure, the province has been able to attract strategic investors to Phu Quoc Island. Between 2016 and 2020, the province will continue to invest further in socio-economic infrastructure, making Kien Giang one of the most developed provinces in the country. The province will invest further in major projects, including the Southern Corridor between Ha Tien town and Rach Gia city, Ho Chi Minh Highway from Lo Te T-junction (Can Tho City) to Rach Soi ward (Rach Gia city) and other major roads in the locality. The province also plans to invest in electricity for agriculture and aquaculture production, and the upgrading of roads on the islands of Kien Hai, Kien Luong, Phu Quoc district and in Ha Tien town. Marine tourism development is a priority in Kien Giang, with the aim of turning Phu Quoc Island into an advanced eco-tourism area for the region and wider world. The maritime economy will also be a focus, with seaport services and shipbuilding receiving investment to satisfy growing demand for cargo and passenger transportation to Cambodia, Thailand and Malaysia. Dong Nai exports reach 4.7 bln USD in four months The southern province of Dong Nai generated more than 4.7 billion USD from exports in the past four months, up 5 percent year-on-year, according to the provincial People’s Committee. During the reviewed period, the province recorded a trade surplus of 644 million USD, making up 40 percent of the country’s total surplus. The foreign-invested sector contributed approximately 3.9 billion USD, or 80 percent of the province’s four-month export turnover, the committee said, adding that foreign-funded enterprises have benefitted the most from the ASEAN Economic Community and free trade agreements that Vietnam inked with many countries and blocs. Thanks to these FTAs, the inflow of foreign direct investment to the province, especially from Japan, the Republic of Korea and China , continued to increase significantly in recent years. For example, the province had attracted over 3.71 billion USD worth of Japanese investment by the end of April. Meanwhile, the State-owned and private sectors made up over 80 million USD and 666 million USD, respectively, of the province’s total export value in four months. Earlier this year, the provincial Department of Industry and Trade expected that the province’s export turnover is likely to enjoy a boost of 10 percent compared to 2015. Exports of the locality’s key commodities will increase, thanks to the recovering global market, said vice director of the department Duong Minh Dung. Last year, the US was the leading market for provincial exporters, with total goods value shipped to the market reaching over 4 billion USD, while the import turnover from the country was 1 billion USD. It was followed by Japan , with nearly 1.3 billion USD in export turnover, and 700 million USD in import value. The province’s export and import turnovers to six ASEAN countries, including Indonesia, Thailand, Cambodia, the Philippines, Singapore and Malaysia, hit 1.5 billion USD and 600 million USD, respectively, with main commodities being textiles, footwear, computers, electronics, wood and wooden products. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR