BUSINESS IN BRIEF 3/5 Major banks to lower lending rates   Major banks lowered their lending interest rates following official calls to ease business operations and assist the market. Prime Minister Nguyen Xuan Phuc and the State Bank of Viet Nam (SBV) had called for the rate cuts, before Phuc took part in a dialogue with enterprises in HCM City yesterday. Tran Bac Ha, Chairman of the Bank for Investment and Development of Viet Nam (BIDV), said his bank cut rates for short-term loans by 0.5 percentage points, and adjusted the rates for medium to long-term loans to no more than 10 per cent per year yesterday. The adjustments will apply for loans related to production and business activities. Ha said the bank would speed up mobilising medium and long-term capital to ensure credit security, and closely control property and securities loans and other areas with high risks in the coming months. It would try to diminish VND500 billion to VND600 billion (US$22.2 million to $26.7 million) in operational costs in 2016, he said. The Bank for Foreign Trade of Viet Nam (Vietcombank) also announced that it would offer businesses medium to long-term loans with annual rates of no more than 10 per cent within a year. The bank would reserve some VND300 billion to help enterprises assure proper business plans and enhance the quality of credit. On Thursday, the Viet Nam Bank for Industry and Trade (VietinBank) General Director Le Duc Tho also affirmed a similar cap of 10 per cent for rates of medium to long-term money that it lends in the coming months. VietinBank may even cut rates by one percentage point from the general levels in the market, for projects it assesses as "good", he said. "Actually, [current] lending rates for enterprises and individuals are relatively reasonable. Banks will need comprehensive measures to control credit quality in order to lower rates further," Tho said. He specified that banks would have to select customers more carefully to avoid bad debts, save more on costs, and even reduce their profit targets so as to help enterprises. SBV Governor Le Minh Hung said commercial banks were acting together in sharing the difficulties of businesses, and industry insiders expected that the major banks would act as vanguards in cutting rates and would encourage smaller lenders to follow suit. Hung said the SBV was maintaining caution in monetary operations, aiming towards a gross domestic product growth rate of 6.7 per cent, with an expected inflation rate of 5 per cent this year. The central bank would closely monitor credit developments to ensure the stability of interest rates. Ha from BIDV said banks' lending rates currently range between 7 per cent and 11 per cent, and this was the best range seen in the last few years. Cheaper constructions urged to go green Developers of low- and middle-income housing projects should pay attention to green designs, intelligent technologies and energy saving solutions, Do Duc Duy, deputy minister of construction has said. Duy said solutions are focussed on the high-end segments while the low and middle- income housing segment has the highest number of users, and also consumes the maximum amount of energies. "Viet Nam's housing policies are under pressure from an increasing population, especially in urban areas. It is forecast that the urban population could reach 46 million by 2020, accounting for 45 per cent of the country's total number," he said. He told the conference on Green Constructions for Low and Middle Income Housing held in Ha Noi on Wednesday that the new housing demand could go up to 5.1 million apartments in the low- and middle-income segment in the next 10 years. This is the reason that green constructions will contribute to sustainable development and environment protection. This has also been the ministry's development trend for the segment in Viet Nam, he added. Duy said, green constructions have become more popular in the world and a vital development trend toward effective energy and natural resource use. Vu Thi Kim Thoa, senior advisor of Viet Nam Clean Energy Programme funded by the United States Agency for International Development (USAID) said that green constructions could save up to 50 per cent of energy as compared to initial designs without increasing costs. In addition, these could reduce operational costs which often account for more than 80 per cent of investment spending. "This could help increase the asset value, quicker returns on capital, and attract home buyers," Thoa said. Sharing the ideas, Greges Reimann, managing director of Denmark IEN Consultants, said that the criteria for green constructions in Viet Nam have been encouraged while many countries in the world have promulgated specific and compulsory laws. He said that the energy saving in buildings in Denmark reached 50 per cent thanks to compulsory regulations on using renewable energy sources in constructions. In Viet Nam, some investors have been piloting the development of green architecture such as Phu My Hung, North Linh Dam, Vincome Villas Long Bien, and EcoLife Capital urban areas projects. There are 60 green constructions in Viet Nam though the development was initiated in 2006. The number has been modest in comparison to the total number of constructions in Viet Nam. Tran Nhu Trung, deputy general director of Capital House, said that housing developers have not cared to meet the requirements of green constructions due to the low profits from social housing projects. "Home buyers could benefit from green constructions as soon as they receive their apartments but investors have to spend more. This has become a headache for investors, especially those in social housing projects," Trung said. HCMC approves five new housing projects HCM City authorities have given approval to five new housing projects worth a total of VND4.6 trillion (US$206 million). The Tay Development Company is the investor in a residential project worth VND355 billion in Nha Be District‘s Nguyen Huu Tho Street. It is expected to be completed in two years. Another project, which is social housing on Pham Van Hoi Street in District 12, is valued at VND1.1 trillion. The investor, Thuan Kieu Service Corp, received approval from the city to carry out the project over a 42-month period. The Nova Sagel Company also received approval to build a housing and commercial complex project on Phu Nhuan District's Pho Quang Street. The project is expected to be completed in three years, with total investment of VND1.77 trillion. In addition, the Nova Festival Corporation will be in charge of an office and apartment complex project on Hoang Minh Giam Street in Phu Nhuan District. The project, which costs VND869 billion, is slated for completion in three years. And a low-rise housing project in District 9, worth VND531 billion, will be carried out by Khang Viet Company over three years. BASF opens new concrete admixture plant in Bac Giang BASF today officially inaugurated its new production plant for concrete admixtures in the northern province of Bac Giang. The new plant will allow BASF to better meet the increasing demand for high quality construction chemicals products in Vietnam. Christian Mombaur, senior vice president of Construction Chemicals Asia Pacific at BASF said that, “Northern Vietnam is continuing its path of rapid urbanisation and industrialisation. The new plant will enable us to stay closer to our customers and offer solutions to meet the growing demand in specialised construction chemicals, especially for building multi-story buildings and long-lasting infrastructure construction projects.” Located at Bac Giang’s Van Trung industrial park, the plant is equipped with production units, a laboratory for product quality control as well as warehousing facilities. There, BASF produces both standard and custom-made performance admixtures from the MasterGlenium® product line under the Master Builders Solutions® brand. The company’s construction chemicals have been used in many popular construction projects such as Noi Bai T2 international airport and Nhat Tan bridge. Petrus Ng, managing director of BASF in Thailand, Vietnam, Laos, Cambodia and Myanmar said, “Vietnam is one of the fastest growing countries in Asia Pacific and is an important market for BASF. The opening of the new plant is yet another milestone for us as it expands our manufacturing footprint in Vietnam and supports the rapid growth of Vietnam’s construction market.” The facility is strategically located at about 60 kilometres from Hanoi, with close proximity to Haiphong sea port and Noi Bai international airport. This is BASF’s second construction chemicals plant in Vietnam, complementing the existing plant in Vietnam-Singapore industrial park in the southern province of Binh Duong. First tenant VSIP Nghe An given land VSIP Nghe An township and industrial park saw its first tenant given land at the site on Arpil 28. TDV Vietnam Trading and Manufacturing Co., a Vietnamese bathroom equipment manufacturer, was awarded the investment certificate at VSIP Nghe An’s ground breaking ceremony on September 16, 2015 with the total investment capital of VND45 billion VND ($2.02 million). As the first tenant to receive land at VSIP Nghe An, TDV committed to beginning construction on July 2016. The plant is expected to commence operation by February 2017.  Situated on an area of 7,000 square metres, the factory is planned to reach the initial capacity of 1.5 million products per year focusing mainly on the domestic demand with future plans for export. VSIP Nghe An is the 7th VSIP in Vietnam with the total land area of 750 hectares. The first phase of the project is now undergoing development which comprises of 198 hectares of industrial land and 81ha of commercial and residential land. VCCI lists ten problems for PM to consider The Vietnam Chamber of Commerce and Industry (VCCI) collated ten groups of problems, most of which are longstanding, and submitted them to the Prime Minister during his meeting with enterprises in Ho Chi Minh City on April 29. Among the problems, the business association in Hai Phong city’s Hai An district complained that 76 per cent of large enterprises can access bank loans while only 60 per cent and 38 per cent of small and micro enterprises are able to do so. Borrowers must have collateral and procedures are troublesome. As a result, many enterprises are forced to borrow from friends or even loan sharks. Some 6 per cent of the total investment capital at small enterprises, it said, is sourced from the “black market”. Small and medium-sized enterprises are in dire need of capital, while the deployment of a credit guarantee fund has been slow and not widespread, the association added. The Nam Dinh Small and Medium-Sized Enterprise Association, meanwhile, proposed that import and export enterprises be permitted to borrow foreign currencies. If this is not possible then enterprises cannot hope to compete with their counterparts in other countries. In the opinion of the Thai Binh Business Association, the Ministry of Natural Resources and Environment has implemented too many inspections over recent years, putting pressure on many enterprises in the province. Business inspections are not conducted alternatively and only focus on large enterprises. Certain members of inspection teams have a disrespectful towards enterprises. It added that enterprises that have been inspected should have their solutions tracked by the local Department of Natural Resources and Environment and not be inspected again. The Vinh Phuc Business Association said that many businesses are inspected four or five times a month. Although inspections are necessary to check that production activities are in accordance with the law, too many inspections with the same content make it difficult for enterprises. It suggested the government and the Prime Minister direct inspection departments to prepare specific inspection plans to assist enterprises. Jan-Apr car imports in good shape Turnover from motor car imports in January and February stood at less than $150 million for 6,000 units, according the General Statistics Office. Turnover from completely-built-unit motor cars during the two months was down sharply in both volume and value against the monthly average in 2015. March and April then saw a significant recovery in import turnover, reaching $208 million for 9,000 units in March and $182 million and 8,000 units in April. The figures are promising and there are signs of greater optimism in the market. In April a number of new models were imported into Vietnam, both for consumption and in preparation for the Vietnam International Motor Show 2016 (VIMS 2016), the largest auto exhibition in the country and organized by a group of official distributors. Three individual exhibitions are to be organized during the second quarter by the three luxury car distributors of Audi, BMW, Mercedes-Benz and MINI. Late last year, besides the common occurrence of customers buying motor cars prior to the lunar new year (Tet), many were also keen to make a purchase before a new tariff regime took effect on January 1. From July 1 tariffs on vehicles with an engine capacity of 2,500 cu cm will rise significantly, and those on vehicles of 3,000 cu cm will increase from 60 per cent to 90 per cent or even 150 per cent. Buyers now have two more months to take advantage of existing tax levels. After that, retail prices will rise considerably. For example, a Mercedes S500L now costs VND5 billion ($224,300) but will rise by VND1.6 billion ($71,775) to VND6.6 billion ($296,075). Under the new tariff regime, although rates applied on vehicles with an engine capacity of less than 1,500 cu cm will be cut by 5 per cent the retail prices will not fall and may even increase. Distributors said that adjustments to tariff policies have created many difficulties as they frequently change and are only published just prior to coming into effect. Vietnamese consumers support local brands National pride is the key factor in consumers’ choice of local versus global brands in Vietnam. A desire to support home-grown brands makes nearly half of Vietnamese respondents (48 per cent) choose a local brand instead of a global one, according to the Nielsen Global Brand-Origin Survey released on April 29. Value for money (40 per cent) and having a positive experience with the brand (27 per cent) were also among the major reasons for selecting a product. Local companies also show that they understand the nuances of local consumers. More than two-thirds of consumers in Vietnam (69 per cent) believe local brands are more attuned to their personal needs and tastes. Traditionally, local players ruled categories that resonated closely with local nuances, such as food and beverages. And in Southeast Asia these categories still drive the greatest growth for local companies, now at 17 per cent for beverages and 10 per cent for food, according to the report. Consumers have never before been as informed, empowered and ready to embrace brands that understand their lifestyle requirements and needs, according to Ms. Laura McCullough, Managing Director, Client Service Leader of Growth and Emerging Markets at Nielsen. “Companies - be they global, regional or local - must ensure their brands deliver on their value proposition and fulfill a critical role in the lives of consumers if they are to win the battle of choice,” she said. MARD divests 37.59% of capital from Vietnam Livestock Corporation The Ministry of Agriculture and Rural Development (MARD) sold over 23.7 million shares in the Vietnam Livestock Corporation (VLC) on April 28, bringing in almost VND400 billion ($17.9 million). With a starting price of VND14,200 ($0.63) per share, 118 investors (eleven institutional and 107 individual investors) attended the auction, registering to purchase more than 57.5 million shares. The highest bid was VND20,000 ($0.89) per share. All MARD shares were sold to the 118 investors at an average price of VND16,636 ($0.74). Post-equitization VLC’s charter capital will be VND631.01 billion ($28.3 million), with 63.1 million shares sold at its first IPO. All have been trading since October 2015 on the Unlisted Public Company Market (UPCoM) market on HNX. MARD is the largest shareholder of VLC, with 77.59 per cent of the company’s capital, or 48.96 million shares. The shares sold on April 28 account for 37.59 per cent of VLC’s capital. VLC owns 51 per cent of shares in the Moc Chau Dairy Cattle Breeding Joint Stock Company and 91.03 per cent in the Central Region Livestock Breeding Joint Stock Company. It also holds from 22 per cent to 40 per cent of voting right at 15 other companies. In 2015 VLC’s pre-tax profit was VND200.2 billion ($8.98 million), a 39 per cent increase compared to 2014. New rates announced on Vietcombank loans Vietcombank applied a new lending interest rate policy from April 29 in support of business activities. The change came from a proposal by the Prime Minister and directions from the State Bank of Vietnam. Medium-term loans are subject to a maximum rate of 10 per cent per annum for one year. Vietcombank also offers a loan package of about VND300 billion ($13.45 million) to support enterprises with sound business plans. Vietnam benefits from TPP, EVFTA to grow in two next year The Trans-Pacific Partnership Trade Agreement (TPP) and the EU-Vietnam Free Trade Agreement (EVFTA) will give Vietnam more opportunity in attracting foreign investment, expanding markets and exports, reported the UN Economic and Social Commission for Asia and the Pacific (ESCAP) yesterday. In the report released yesterday in Hanoi ESCAP forecast that Vietnam’s economic growth is expected to edge up further to 6.8-6.9 per cent in 2016 and 2017. However, experts also warned that Vietnamese enterprises will face more stringent environmental and labor requirements may raise production costs in the short run. Productivity improvement is an urgent matter for the Southeast country at present, said a representative from the Central Institute for Economic Management. The sustainability of the economic growth greatly depends on the foundations of productivity, the representative said. So Vietnam should continue the economic reform for raising productivity, focusing on the long term reform, easing regulations on business boundaries and invesment, renew ways to conduct reform; and encourage businesses and laborers to share benefits from the economic growth process, the representative added. India imposes anti-dumping duties on Vietnam MDF products India has released its report on anti-dumping investigation into Plain Medium Density Fibreboard (MDF) imported from Vietnam and Indonesia. The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade said on April 28 the Indian Directorate General of Anti-Dumping and Allied Duties (DGAD) concluded that prices of MDF exported to India were lower than normal, causing significant damage to the Indian industry. As the result, DGAD decided to impose dumping margins of 0-15% and damage margins of 10-40% on Vietnamese businesses who answered its questionnaires and dumping margins of 30-40% and damage margins of 35-45% on those who did not. DGAD will base on that conclusion to announce its final decision. Vietnamese businesses had the only chance to send their petitions to DGAD prior to May 2, 2016 before DGAD issues its final decision. HCMC leader: Improve investment environment Chairman of HCMC Nguyen Thanh Phong has told departments and districts to find ways to improve the business environment to prevent the city from trailing behind other cities and provinces. At a meeting on April 28 on the city’s January-April socioeconomic performance, Phong said that according to the Vietnam Chamber of Commerce and Industry (VCCI), a number of key indicators dropped in the city last year. For instance, the indicator of market access went down to 62 from 61, transparency down to 17 from 4, informal fees down to 54 from 42, and labor training down to 6 from 5. Regarding governance and public administration, the city was ranked 47th out of the country’s 63 provinces and cities with five out of six dimensions declining, including citizens’ participation at local levels, transparency, accountability, control of corruption and public service, Phong said. Meanwhile, some other indexes such as access to land, time cost and legal institutions picked up but mildly. Fair competition and business assistance were unchanged. The Department of Planning and Investment earlier sent the city government a couple of measures to arrest the decline in the city’s competitiveness in the eyes of investors. Phong described these measures as general. Commenting on the wrongful criminal proceedings against the owner of Xin Chao café in Binh Chanh District, Phong said the case has badly affected the city’s investment environment. Vo Van Hoan, head of the HCMC government’s office, said transparency should be improved. Before issuing policies, agencies must take into account their possible impacts on enterprises and citizens. Meanwhile, economic indicators in HCMC have improved in January-April. According to the HCMC government, total retail sales of goods and services in the year to April have grown 11% year-on-year to VND230.85 trillion (US$10.4 billion). The consumer price index in the four-month period has picked up 0.68% year-on-year. The city has welcomed nearly 1.8 million visitors, up 14% from the year-ago period, with total revenue of VND34 trillion, up 7%. The banking system has remained stable in the period. Banks in the city have mobilized VND1,633 trillion this year, up 4.2% against late last year and 22% compared to the same period last year. Deposits in Vietnam dong have grown faster than those in foreign currency and made up 85.3% of total deposits. This is because the interest rate for deposits in U.S. dollar is zero. Outstanding loans have totaled VND1,285 trillion, rising by 4.3% against late last year and 16% year-on-year. Bad debt in late February slightly inched up against early this year and accounted for 3.96% of total outstanding loans. The January-April industrial production index has gone up 6.2% year-on-year, with beverages growing 15%, apparel 11% and products made of non-metallic minerals 18.3%. The city’s budget revenues in the first four months are estimated at VND98.57 trillion, equivalent to 33% of the full-year target and up 4.5% year-on-year, according to the Department of Finance. Tax revenues from domestic sources have increased by 16% thanks to improving business conditions. However, revenues from crude oil and export-import activities have declined by 43% and 4% respectively due to oil price falls on global markets and import tariff cuts in line with Vietnam’s commitments to free trade agreements. Becamex IDC to expand urban-industrial complex in Binh Duong Becamex Investment and Industrial Development Corporation (Becamex IDC) on April 27 announced a plan to expand Bau Bang urban-industrial complex in Binh Duong Province by 1,000 hectares. Becamex IDC said with the expansion, the urban-industrial complex in the southern province will cover a total area of 3,200 hectares. Around 95% of the 1,000 hectares developed in the first phase have been leased to 95 local and foreign investors, who have pledged a total of US$1.2 billion for projects there. The remaining 1,200 hectares are for residential purposes. Nguyen Van Hung, chairman and general director of Becamex IDC, said the company has decided to widen the complex to bank on a highly expected new wave of foreign investments in Vietnam after the country signed multilateral and bilateral free trade agreements, including the Trans-Pacific Partnership (TPP) and the pact with the European Union (EU). Therefore, infrastructure in the expanded area will be developed quickly. With the area expansion, the population of the province’s Bau Bang District is forecast to rise to 200,000, meeting employment and service demands of investors in the complex. Hung said Becamex IDC will develop Bau Bang urban area into a satellite township of Binh Duong New City, which will become the new center of the province in the future. The township will house hospitals, schools, sporting and cultural facilities, and other public works. Also on April 27, Becamex IDC signed memoranda of understanding (MOUs) with major investors in the expanded area. TPP Invest LLC struck a deal to establish a U.S.-Vietnam industrial park of 200 hectares in the complex for American investors and those from Asia. DDK Vietnam Ltd Co clinched an agreement with Becamex IDC to develop an 80-hectare park in the complex for production of bicycles and components. Asama Yuh Jiun International Vietnam Co Ltd, Gold Well Co Ltd, Profit Forest International Ltd, New Concept International Ltd Co, and Juang Jia Guoo inked MOUs to invest in the DDK park. The government of Binh Duong Province handed over investment certificates to four production projects in the Bau Bang complex on April 27. VASEP proposes short-term dollar loans for seafood exporters The Vietnam Association of Seafood Exporters and Producers (VASEP) has petitioned the central bank to review and revise a provision in a new circular to allow seafood exporters to continue taking out short-term foreign currency loans to fund their operations. The central bank’s Circular 24/2015/TT-NHNN aims at preventing dollar hoarding and easing pressure from greenback buying demand, which was accused of causing exchange rate volatility in previous years.        Many exporters borrowed the U.S. dollar at low interest rates and sold it on to banks for the Vietnam dong to finance their local production plans before the circular took effect on April 1. VASEP general secretary Truong Dinh Hoe told the Daily that the association has proposed the central bank eliminate Point c of Clause 1 in Article 3 of the circular so that seafood exporters can continue getting short-term foreign currency loans to fund their production. Hoe explained seafood exporters had just recovered after a difficult year in 2015.    Hoe said VASEP made the proposal as the annual interest rate of short-term loans in the Vietnam dong currently stands at 7% while that of dollar loans is a mere 2% per year.   Therefore, businesses borrowing the U.S. dollar at low interest rates and selling it on to banks for the Vietnam dong can benefit from a lower borrowing cost. This helps them cut input costs and enhance competitiveness. The price of the dollar has stabilized since the central bank adopted the average daily inter-bank exchange rate between the Vietnam dong and the U.S. dollar early this year. Therefore, it is less risky to borrow dollars in short term. There is concern however that enterprises may borrow dollars, and convert them into dong for depositing at banks to enjoy the interest rate differential, rather than using it for production. However, he said, the central bank should take measures to monitor short-term dollar loans. Dang Hoang Giang, vice chairman of the Vietnam Cashew Association (Vinacas), said exporters always have sales revenue in foreign currency to pay debt and that foreign currency loans would help firms carry out production plans. Earlier, the general director of an apparel company in HCMC told the Daily that with annual revenue of VND1.5 trillion, the firm took out short-term dollar loans and converted them into the dong to finance its production plans, including paying for employees. He said the firm may have to pay an additional interest of over VND3 billion per year as it cannot borrow foreign currency. VASEP says seafood exports unaffected by fish deaths The Vietnam Association of Seafood Exporters and Producers (VASEP) has said that mass fish deaths along the central coast have not impacted on the nation’s seafood export activity. Truong Dinh Hoe, general secretary of VASEP, confirmed this when speaking to the Daily on April 28 over the mysterious mass fish deaths in Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue provinces. Hoe said foreign companies still import Vietnamese seafood as usual since central Vietnam is not the country’s key fishing region and a majority of seafood processing firms are located in the south. Earlier, VASEP forecast that Vietnam will be able to earn more than US$7 billion from seafood exports this year, up 6.3% versus 2015, given higher demand for shrimp, squid, octopus and marine fish of major export markets. However, the Vietnam Fisheries Society (Vinafis) has called for the Government to quickly determine the cause of the mass fish deaths and find ways to support affected fishermen and fish farming households. Vinafis has proposed the affected fish farming households and fishermen from Ha Tinh Province to Thua Thien-Hue Province be provided with at least 15 kilos of rice per month from this month before they can resume production and fishing. The ministries of agriculture-rural development and natural resources-environment should ask provinces to collect dead fish for destruction to prevent people from selling the fish or processing them into dried fish and fish sauce.   Vinafis supported the Ministry of Natural Resources and Environment’s presumption made on Wednesday that fish might have been killed by toxic substances discharged from human activity or a phenomenon known as an algal bloom (red tide). The toxic substances might have been driven by ocean currents from the north to the south, thus killing large numbers of fish in Quang Binh, Quang Tri and Thua Thien-Hue provinces. Dead fish were first detected in the north-central province of Ha Tinh, according to Vinafis. However, the possibility of fish being killed by red tide is low as beaches along the central coast have shown no signs of being hit by red tide. Deputy Minister of Natural Resources and Environment Vo Tuan Nhan said at a press conference on Wednesday evening that toxins or red tide might have caused the death of so many fish. EU alarms four seafood exporters over food safety Some member states of the European Union (EU) have given warnings to four exporters in Vietnam over seafood food safety, according to the National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad). Nafiqad, an agency of the Ministry of Agriculture and Rural Development, said the Rapid Alert System for Food and Feed (RASFF) of the Directorate General for Health and Food Safety under the European Commission (EC) has detected forbidden food additives and substances in seafood shipped to the EU by the four firms. Mekong Delta Food Enterprise under Can Tho Export-Import Seafood Joint Stock Co was warned of ammoniac smell and sodium carbonates (E500) in its frozen tra fish shipments, Southern Fishery Industries Ltd Co of sodium erythorbate (E316) in frozen tra fish, Foodtech Joint Stock Co of histamine in canned tuna, and Khang Thong Joint Stock Co of mercury in fish. Nafiqad told the four firms to clarify why the shipments were found to be tainted with the substances and quickly improve food safety. Mekong Delta Food Enterprise and Southern Fishery Industries Ltd Co were told to get updates and strictly follow the regulations on chemical additives used for seafood sold to the EU. Beside, Nafiqad asked regional quality centers for agro-aqua-forestry products to take samples of seafood shipments for testing to stave off those products failing to meet food safety requirements. Nguyen Nhu Tiep, head of Nafiqad, told the Daily that there were fewer seafood batches found to have microbial infection and banned antibiotics in exporting markets in the first quarter this year than in the final quarter last year. However, Tiep said there were still 31 tra fish and shrimp shipments detected to contain banned antibiotics and microbial infections in the year to March. Startups soar in Jan-Apr More than 34,700 firms have been established nationwide this year with total registered capital of VND248.2 trillion (US$11.13 billion), up 22.9% and 52.8% respectively, shows data of the General Statistics Office (GSO). The registered capital of each startup averages out at VND7.1 billion, rising by 24.2% year-on-year. According to the GSO, nearly 11,000 businesses have been set up in April alone, up 11.1% compared to March, with total capital amounting to VND62.2 trillion, down 14.7%. Startups in the four-month period are expected to employ 427,200 people, 0.2% lower than in the same period last year. Operational businesses have registered to add a combined VND553.3 trillion as of end-April. The number of businesses that have resumed operation this year has picked up 79.4% year-on-year to over 11,330. However, the data indicated an increase of 31.8% in firms that have been suspended, totaling 25,130. The number comprises 9,450 temporary closures and 15,685 firms waiting to close their corporate codes and simply disappearing. Almost 3,760 enterprises have been dissolved, up 15.7% year-on-year. Up to 93.5% of them are small with capital below VND10 billion each. Jan-April FDI surges 85% y-o-y Foreign direct investment (FDI) approvals for new and operational projects in the first four months of this year have reached US$6.9 billion, soaring 85% year-on-year, shows data of the General Statistics Office (GSO). Foreign companies had received investment certificates for 697 fresh projects capitalized at US$5.08 billion from January to April 20, rising by 89.9% and 55.6% over the same period last year respectively. They got approval to add US$1.8 billion to 314 operational projects in the period. According to the GSO, the processing and manufacturing sector attracted US$5.2 billion, 76.2% of the total FDI approvals; science and technology US$334.6 million (4.9%); trading and auto repair US$242.5 million (3.5%); and other sectors US$1.06 billion (15.4%). As for 41 provinces and cities that had got fresh FDI projects in the year to April 20, Haiphong drew US$1.59 billion (31.3%), Hanoi US$600 million (11.7%), Binh Duong US$329 million (6.5%), and HCMC US$222.6 million (4.4%). Companies from 45 countries and territories pledged investments in Vietnam in the period. South Korea took the lead with more than US$2.48 billion (48.5%), followed by Singapore with US$502.1 million (9.9%), Taiwan with US$430.1 million (8.5%), and Japan with US$307 million (6%). HCMC trading sector lures more FDI More foreign direct investment (FDI) capital has been registered for trading projects than for other sectors in HCMC this year, which is in stark contrast to other parts of the nation where processing and manufacturing take the lead in FDI attraction. The trading sector accounted for 45.6% of new FDI approvals in HCMC from January to mid-April, according to the HCMC Statistics Office. Data of the office showed 225 FDI projects got investment certificates with total registered capital of US$222.5 million in the period. Of which, the trading sector took the lead with 87 projects worth US$101.4 million. Meanwhile, the processing and manufacturing sector saw 15 FDI projects approved, with total capital pledges of US$60 million, accounting for 27.2% of the total. FDI enterprises registered a total of US$20 million for around 30 projects in the information and communications sector and US$11 million for 40 science and technology projects. The real estate and construction sectors attracted five FDI projects each while the number in the transport and warehouse sector was 18. Fresh FDI in the period moved in the direction of the HCMC government’s policy to woo more investors to the trading, service, science and technology, and real estate sectors. This year, the processing and manufacturing sector has not attracted as many FDI projects as before due to limited land, high land rent and rising labor cost, and insufficient supply of skilled labor. Earlier, the HCMC Export Processing Zones and Industrial Parks Authority said new FDI approvals in the zones and parks in quarter one fell by a hefty 69.5% year-on-year to US$116 million. They are destinations for investors of manufacturing projects. Besides new FDI projects, foreign investors had registered more than US$387 million for 42 operational projects in the year to mid-April. Overall, FDI firms pledged a total of US$610 million for both new and operational projects in the period. HCMC attracted investments from 32 nations and territories in the period. Of them, Japan took the lead with 39 projects worth US$70.6 million, followed by Singapore with 29 projects worth US$56.2 million, Malaysia with eight projects capitalized at US$23.4 million, South Korea with 41 projects valued at US$17.5 million, and the Netherlands four projects costing a total of US$13.7 million. Bangkok Airways to fly to Danang in late May Bangkok Airways said on April 27 that it would launch Bangkok-Danang service on May 25 with four weekly flights in the initial time. The flights will be conducted on Mondays, Wednesdays, Fridays and Saturdays, taking off in Bangkok at 11:00 a.m. and landing in Danang at 12:35 p.m.. The departure and arrival schedules of the return flights will be 1:35 p.m. in the central coast city of Vietnam and at 3:15 p.m. in the capital of Thailand. The carrier will use Airbus A319 aircraft configured with 138 seats for the new route. Varong Israsena Na Ayudhya, vice president for sales at Bangkok Airways, said at a news briefing in HCMC on April 27 that the airline had decided to operate direct flights to Danang after having carefully surveyed the market. Danang has a lot of tourist attractions. With return fares from US$213, Bangkok Airways expects to attract many passengers of the two countries. Varong said Bangkok Airways is in talks with Vietnam Airlines for a codeshare agreement on transporting passengers to domestic airports of Vietnam and Thailand. Bangkok Airways looks to expand to other airports in Vietnam. Techcombank introduces business customer promotion Techcombank has introduced a new promotional program targeting enterprise customers. From now to June 30 enterprises can enjoy special customer services and receive gifts when opening new deposit accounts with a minimum of VND100 million ($4,485). The gift will depend on the amount deposited and the term, with higher amounts and longer terms resulting in a more valuable gift. Techcombank held its annual general meeting recently, announcing handsome 2015 performance. Assets increased 9 per cent to VND192 trillion ($8.6 billion), charter capital stood at VND8.8 trillion ($394.6 million), and after-tax profit was VND2.03 trillion ($91 million). The bank has targeted pre-tax profit of VND3.5 trillion ($156.95 million) in 2016. Vietnam looks to boost business climate, competitiveness The Government issued Resolution 19-2016/NQ-CP on measures to improve national business climate and competitiveness between now and 2017 with a vision to 2020 on April 28. To help Vietnam achieve the average level of business climate criteria set for top-four ASEAN state members, the document stresses the need of overhauling trade regulations and state management over import-export products. This means the elimination of outdated regulations and simplification of administrative procedures. The shake-up will lead to shortened duration for granting businesses permissions. Accordingly, it will take up less than 77 days for the issuance of a building permission and relevant papers and under 14 days for the registration of property possession. Maximum times to handle contract conflicts will be halved the current 400 days, and duration to process bankrupt cases will be within 24 months instead of five years at present. Maximum customs duration will be 10 days for exports and 12 days for imports. Taxation reform is also set to take place in terms of tax refund, inspection risk management and petition tackling. Relevant ministries, ministry-level agencies, municipal-level people’s committees are tasked with designing action plans to realise the resolution prior to May 30. The implementation of Resolution 19 is expected to pay the way for Vietnam to realise the average level of business environment and competitiveness criteria set for top-three ASEAN state members by 2020. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR