BUSINESS IN BRIEF 4/5 Quang Ngai farmers earn high profits as chili pepper prices soar Farmers in the central province of Quang Ngai have been happy to see chili prices soaring over the past few days. The chili season often lasts from March to June. At the beginning of the chili season this year, prices were about 4,000-5,000 VND (0.17-0.22 USD) per kilogramme. Prices have increased gradually to the current cost of 40,000 VND (1.7 USD) per kilogramme.   According to a Quang Ngai newspaper report, in many chili fields in Tinh Long commune, Quang Ngai city, farmers eagerly went to the fields to harvest chili despite the extremely hot weather. Tran Thi Thuy, a farmer in the commune’s Tang Long village, said she has grown chili for the past 30 years, and the current price is the highest she has seen so far. Thuy invested 3 million VND into her chili field to buy fertiliser and seeds, and she expected to earn profits of about 20-30 million VND (800-1,300 USD). Tran Ngoc Minh, another farmer in the commune’s Ngoc Thach village, said the peppers require a lot of water to grow. The weather was severe this year, so the productivity level was only half of what it was last year. However, prices increased so Minh did not suffer any losses. Minh is pleased with the current prices, but is also worried because the prices could drop suddenly. Pham Thi Thu Thuy, owner of a chili dealer in Quang Ngai city, told the newspaper that prices could change daily depending on dealers along the northern border gates. The prices increase or decrease depending on the Chinese market, and recently the Chinese market has had a high demand for chili, thus driving up prices, she said. Every day, Thuy buys about 10-15 tonnes of chili peppers from farmers in the province. In recent days, three or four containers wait near her dealership to take chili peppers to China. She added that the price of 40,000 VND (1.7 USD) per kilogramme is only temporary, so farmers should take advantage of the current benefits.- Firms adapt to anti-dollar drive   Domestic firms have taken the first measures in an effort to adapt to the State Bank of Vietnam (SBV)’s new regulation on tightening foreign currency credit. Under Circular 24/2015/TT-NHNN, commercial banks are no longer allowed to provide lending in foreign currency to firms which do not need it for offshore payments since March 31 this year. The tightening in foreign currency credit is aimed to step up the central bank’s anti-dollarisation drive. SBV said that the new regulation affects only those firms which often obtain foreign currency loans from banks and will later convert them into dong to fund their domestic production. The new rules on foreign currency loans are expected to stabilise exchange rates and strengthen the dong. However, it also has side effects on firms, especially agriculture and seafood exporters, which often take loans in foreign currencies to meet their great funding demand. Banking expert Nguyen Tri Hieu estimated that without foreign currency loans, interest rates for which were often roughly 6 percent to 9 percent lower than that of the dong, input costs could increase for exporters. To adapt with the new rule, many exporters have paid more attention to the movement of the dong - US dollar exchange rate. They are even hunting for high ranking personnel specialising in finance and foreign exchange. Previously, only FDI firms were interested in such activities. A high-ranking official of an HMC City-based human resources consulting company, who declined to be named, said that her company had received urgent orders from five major domestic companies to recruit senior personnel in finance and capital resources. Recruitment positions are required to have experience in finance, foreign exchange, capital resources management and structured products. The executive, with nearly 20 years of experience in finance and human resources, forecast that this was only the beginning of the ‘thirst’ for senior personnel to service transactions of firms in foreign currency derivatives and interest rates besides normal forward transactions currently. Besides, banking experts said that the exporters had also paid more attention to insurance services of exchange rate and interest rate. Bidding demand of firms for dollar forward contracts surged sharply against early this year, they said. Representatives from Sacombank and Maritime Bank told Nhip cau dau tu (Bridge for Investment) newspaper that more firms had been interested in financial products. Bids for interest rate swap (IRS), forward rate agreement (FRA), or interest rate option (IRO) products in the inter-bank market, were heating up due to rising consultancy demands from firms. To offset the capital source that was previously transferred from foreign currency loans, some major listed companies are also preparing plans to call for new funds or issue corporate bonds in wake of the tightening of foreign currency credit and the high dong lending interest rate. Nearly 60 new models introduced at coming BMW World Expo The second BMW World Expo will take place at Hanoi’s National Convention Centre from May 6 to 9. According to Euro Auto, the sole importer of BMW in Vietnam, nearly 60 new models from BMW, Mini and Motorrad will be introduced during the fair. The "Future of the automobile" expo will be organised by BMW Group to celebrate its 100th anniversary. Among its interesting events will be one called "Together we build the history of the future" in which customers can show how they see the world in the next 100 years on the expo fanpage and website. Euro Auto recently launched the seven-seat BMW Series 2 Gran Tourer. This is the first luxury seven-seat vehicle in the MPV segment. The Gran Tourer has a 1,499cc engine and costs 1.49 billion VND (68,700 USD). Retailers roll out promotions Retailers have announced a slew of promotions during the long Liberation Day-May Day holidays. Since they fall on a weekend, they have been moved to May 2 and 3, and supermarket chains Co.opmart and Co.opXtra expect sales to be 50-100 percent higher than on normal days. They have stocked up on essential and price-stabilised products and launched promotions, Vo Hoang Anh, marketing director of Saigon Co.op, the owner of Co.opmart chain, said. Co.opmart and Co.opXtra supermarkets are offering a buy-1-get-1-free deal and discounts of 50 percent on thousands of items, including electrical kitchen appliances and utensils, fashion products, fresh and processed foods, and beverages. In addition, for the first time Co.opFood has launched a meals package that customers can go to its stores and order for free home delivery. Saigon Co.op joint ventures HTVCo.op, Sense City department stores in Can Tho and Ben Tre and SC VivoCity in Ho Chi Minh City are also running promotions. French supermarket Big C has announced two promotions until May 2 with discounts of up to 49 percent on more than 2,000 items, including fresh, dried and frozen foods, beer, beverages, clothes, cosmetics, and kitchen utensils. Big C said it expects sales to rise sharply during the holiday and has double the normal stocks, especially of ready-to-eat foods, processed foods, meat, fish, bread, vegetables, fruits and beverages. It will also increase home-delivery services and add more cashiers and security guards to ensure customers’ convenience and safety. Rretailer from the Republic of Korean Lotte Mart, which opened its 12th outlet in Go Vap district on April 26, is offering attractive promotions at the new store. Shoppers will also have the chance to win lucky draw prizes like a Honda Vision 11cc. Metro, Satramart and other supermarkets are also set to run promotions as are major electronics stores like Thien Hoa, Cho Lon, Phan Khang and Nguyen Kim, who are offering big discounts on a range of products. Vietnamese bananas on Japan’s supermarket shelves Vietnamese bananas have marked their official presence in Japan’s market with the first bunches hitting the shelves of the discount chain Don Quijote on April 30. Nguyen Trung Dung, a representative of the Vietnamese Embassy’s Trade Office in Japan, said about 15 tonnes of bananas exported by the Huy Long An company are sold at over 10 Don Quijote stores in Tokyo and nearby Saitama and Chiba prefectures. Japan is expected to double its banana imports from Vietnam and sell them at more places in the near future, he noted. The Northeast Asian country consumes approximately 1 million tonnes of bananas per year. Up to 85 percent of its imported bananas currently hail from the Philippines. However, many Japanese companies say they want to seek more suppliers. Vietnam’s bananas were first shipped to Japan in 2013 as a step to survey the local market, and they were not present at big retail chains like Don Quijote. Hidekatsu Ishikawa, President of Vient Co. Ltd, said Japanese importers highly regard the quality of Vietnamese bananas as their sweetness suits Japanese people’s taste, and they are sold at competitive prices. Aside from Don Quijote, some local supermarket chains such as Chalenger in Niigata prefecture are also offering the product, he added. The Vietnamese Trade Office said it will work with businesses to step up marketing the bananas at trade promotion events in Japan in the time ahead. WB aids Vietnam’s transport, flood control efforts The Board of Executive Directors of the World Bank (WB) has recently approved more than 500 million USD in support for improvements to road and bridge connections as well as flood control and sanitation conditions in Vietnam. A 385-million USD results-based operation called Local Bridge Construction and Road Asset Management will enhance road access and lower road users’ transport costs in participating provinces. The project will provide 245.5 million USD for the reconstruction or construction of 2,174 small bridges to isolated and impoverished communities in 50 provinces across Vietnam along with 4.5 million USD in technical assistance for project completion. It also includes 135 million USD for the rehabilitation of 676 kilometres and maintenance of 48,578 kilometres of local roads in 14 targeted provinces. In addition, a flood risk and water management project worth 150 million USD will directly benefit inhabitants in flood-prone areas along the Phan River by strengthening flood risk management capacity and improving wastewater management in the northern province of Vinh Phuc. The project will provide flood control infrastructure, wastewater collection and treatment facilities, and strengthen capacity in the province for flood forecasting and prevention. It will protect more than 255,000 residents, or 60 percent in rural areas and 40 percent in urban areas and small towns, and about 5,720 hectares out of 8,390 frequently flooded hectares from the floods of ten year return period. The project will also improve sanitation conditions for about 120,000 residents living in four towns and 33 rural villages, and support the province with the establishment of a flood early warning and emergency response system and a river basin management mechanism. Auto importers petition Government to hold taxes steady Auto importers in Vietnam petitioned the Prime Minister and relevant sectors to consider problems related to some revised articles and supplements in the Law on Special Consumption Tax, which will become effective on July 1. This is the second change of the tax calculation this year. The first was put into effect in January 1. The changes, which were made in such a short time, reportedly made it difficult for auto businesses to set up their future plans. The petitioners are official suppliers of giant automakers in the world, including Audi, Bentley and Lamborghini, BMW and Mini, Jaguar and Land Rover, Luxgen and Baic, Maserati, Renault, Rolls-Royce, Subaru and Volkswagen. In an urgent petition sent to the Prime Minister, the Ministries of Industry and Trade and Finance, and the National Assembly’s Economic and Budget Committee, they said the application of the revised law would face problems because the new tax calculation was unclear. According to the current tax calculation method issued by a Government decree, which went into effect in January, the special consumption tax increased 5 percent in the price of imported cars. However, this will change on July 1 when the revised law approved by the National Assembly takes effect. In the revised law, the rate will be calculated based on the average selling prices of dealerships with set price frames. However, the range of the price frames has not been specified. Importers said there was not yet detailed information about the implementation of the law, even though it would come into effect in the next two months. They said their transactions were based on a period of six months, from receiving the orders to delivering vehicles to the customers. Therefore, in this time, they cannot quote an exact price in Vietnamese Dong for those who place an auto delivery order after July 1. “This will cause negative impacts on the auto importers’ businesses and reduce the State budget’s collection as well,” said the petition. With such difficulties, they asked the Government to keep the current method in place and delay the new tax calculation method until it is clearer. This petition was not the first time auto importers called for help from the Government. In November, 2015, eight auto importers sent a petition to relevant ministries about regulations on the calculation of special taxes, which took effect on January 1. This calculation has caused the prices of many cars to increase by 15 percent to 30 percent. The auto importers asked the Ministry of Finance to issue detailed instructions and a suitable time frame for them to apply the new tax calculation smoothly. They have also asked the ministry to host a public conference to get ideas from auto importers and domestic auto assembling factories before the new tax calculation is enacted. Under the Special Consumption Tax, there will be many changes on auto tariffs. Taxes on vehicles with low engine displacement will be reduced, while taxes will be raised for vehicles with high engine displacement of more than 2,500cc. In particular, vehicles with high engine displacement from 3,000cc to 6,000cc will be taxed from 90 percent to 150 percent. For example, the model Mercedes S500L is being sold at a retail price of 5 billion VND (224,900 USD). As of July 1, when the new special consumption tax rate of 110 percent is applied, a hike from the current 60 percent, its price will raise to about 6.6 billion VND. The Finance Ministry said the tax adjustment was aimed at ensuring fairness as well as matching the country’s automobile industry development strategy, which encourages the production and consumption of vehicles with low engine displacement that are suitable for the country’s traffic infrastructure and middle-income people. Banks’ equity up, assets down The combined equity of all lenders in the domestic banking system reached nearly 580.3 trillion VND (25.8 billion USD) ending January, an increase of 2.3 trillion VND over the end of 2015. The Thoi bao Ngan hang (The Banking Times) reported the figures, citing the latest data of the State Bank of Vietnam (SBV). The increase was mainly thanks to joint ventures and foreign banks, whose equity rose by 2.5 trillion VND to 119.7 trillion VND, and State-run commercial banks, whose equity expanded by 1 trillion VND to 204.3 trillion VND. Meanwhile, the equity of joint stock commercial banks was down 1.6 trillion VND to 234.8 trillion VND. However, total assets of the lenders touched nearly 7.3 quadrillion VND on January 31, 2016, a decrease of 32.3 trillion VND over the end of 2015. The decrease was due to the decline in the assets of State-run commercial banks and joint stock commercial banks, the two groups of lenders that have the largest asset values in the banking system. In January, State-run commercial banks saw a decline of one per cent in total assets, and joint stock commercial banks witnessed a fall of 0.17 percent. Joint venture and foreign banks registered a 0.33 percent rise in total assets, and financial companies and finance lease firms posted an increase of 2.71 percent. At the end of January, the capital adequacy ratio (CAR) of the banking system reached 12.86 percent, down slightly from the 13 percent recorded at the end of 2015, but significantly higher than the secure level of 9 percent stipulated by the SBV. Vietnam's textile industry looks to 2020 and beyond The domestic garment and textile industry wants to revise a development plan to 2020 with vision for 2030, to match the progress of the country. The current plan was approved in April 2014, and it is expected that Vietnam garment exports will reach between 20 billion USD and 25 billion USD by 2020. However, in 2015, the garment sector already earned an export turnover of 27.5 billion USD. All the garment and textile businesses have actively taken advantage of opportunities through trade agreements such as the Trans-Pacific Partnership (TPP), Vietnam-Korea Free Trade Agreement (VKFTA), and Vietnam-EU Free Trade Agreement (EVFTA). Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS) said the industry wants the Government to revise the plan as it is inappropriate and regressive. The Government should outline another long-term plan until 2040 to help the industry go in line with the country’s economic development. According to VITAS, with the current growth, the sector has set export turnover at between 40 billion USD and 50 billion USD by 2020, instead of targets set in the current plan. Vitas estimated that between 1988 and 2012, the sector attracted 1,551 FDI projects. Of this figure, there were 1,193 garment projects and 358 fibre production projects with a total investment of 3.5 billion USD. Thanks to the FDI influence, such businesses brought 2 billion USD into Vietnam’s garment sector in 2015. As a result, the total export turnover of the garment sector reached 24 billion USD in 2014 and 27.5 billion USD in 2015, and it is expected to reach 31 billion USD by late 2016. Giang said that apart from the five key export products, Vietnam also exports various kinds of fibre with an export turnover of over 3 billion USD annually and different types of fabric with a turnover of 1 billion USD per year. Apart from the rapid production scale and strong export growth, the garment sector has also coped with unresolved shortcomings. These shortcomings needed to be handled soon to make the sector’s development sustainable. VITAS has also proposed that the Government initiate policies to attract investments in this sector, including high-quality fibre production and dyeing projects. In doing so, VITAS has also asked the Government to make a review of industrial parks or key economic zones including those from the garment and textile sector. Over the years, the garment and textile industry has not had specialised industrial zones to attract investments in textile and dyeing. As a result, the sector still relies on importing high-quality fibre for manufacturing export products, and it cost 15 billion USD in 2015. In addition, Giang said the Government needs to invest in infrastructure development, and create incentives for investors. Special attention should be paid to the production units and the origin of textile fibre and threads, and dyeing. To obtain these, VITAS has asked the Government to pay attention to investment in international quality waste water treatment plants. Purchasing power increases slightly The purchasing power in the total national retail value of goods and services until April 2016 reached nearly VND1.14 trillion, the General Statistics Office (GSO) reported. This was equivalent to US$51.7 billion, and a year-on-year increase of 8.8 per cent. The increase was estimated at 7.5 per cent if the price factor was excluded, lower than the growth of the first four months of last year at 8.3 per cent, and the lowest growth since the beginning of this year. In particular, the growth of January was 11 per cent, of the first two months is 8.3 per cent, and of the first three months was 7.9 per cent. GSO expert Vu Manh Ha attributed the decrease in purchasing power of the first four months of this year to the significant growth of the consumer price index (CPI) of the first four months compared to the same period last year. However, total sales still saw a fairly positive increase. Of these, the total revenue of retail goods, which accounted for more than 75 per cent of the total revenue, hit $39.5 billion, up 9 per cent. Of these, food and foodstuff retail increased 13 per cent, garment retail increased 10.6 per cent, transportation services 10 per cent, home appliances 9.2 per cent and retail of culture and education products increased 1.3 per cent. The total revenue of accommodation and restaurant service sales, which accounted for 11.2 per cent of the total revenue, increasing 8 per cent in the first four months. Localities which had a high growth in the sector's revenue included Thanh Hoa (15 per cent), Ninh Binh (9 per cent), Ha Noi (nearly 9 per cent) and HCM City (nearly 8 per cent). The total revenue of tourism and travel sector, which accounted for only 0.8 per cent, also reached a growth of 8 per cent in the first four months. Of these, tourism of Lam Dong Province had the highest increase in revenue of 16.5 per cent, followed by Can Tho Province (12 per cent), Ha Noi (8.1 per cent) and HCM City (6.5 per cent). New firms number nearly 11,000 As many as 10,954 enterprises were formed in April with total registered capital of VND62.2 trillion (over US$2.7 billion), according to the General Statistics Office (GSO). The number of newly-established business increased by 19.2 per cent year-on-year, while registered capital jumped 21.3 per cent against the same period last year. In the first four months of this year, 34,721 new enterprises were established with total capital of VND248.2 trillion, a year-on-year rises of 22.9 per cent and 52.8 per cent, respectively. During the reviewed period, each new company had an average investment of VND7.1 billion, up 24.2 per cent over the same period last year. The new firms were expected to employ 427,200 people. A total of VND801.5 trillion was added to the country's economy. According to the GSO, 25,135 enterprises stopped operations from January to April, meanwhile, 11,331 enterprises resumed operations. Experts of the GSO attributed the strong increase in business numbers to more open State policies on administrative procedures. They said that despite the high number of newly-established businesses and the strong volume of new capital added to the country's economy, the ratio of job creation in the first four months reached 472,200 people, or a reduction of 0.2 per cent over the same period last year. Meanwhile, the total number of newly-established enterprises in HCM City which opened this year was 10,450, according to the GSO. The number includes 225 private companies, 1,186 joint stock companies and 9,038 limited companies. Nearly 80 per cent of them are involved in services. The total registered capital of all enterprises increased 82.3 per cent compared to the same period last year by more than VND81.5 trillion. The capital for agro-forestry and trade services doubled compared to last year, while the number of enterprises in the two fields rose by 26-28 per cent. The GSO also announced that VND9.59 trillion in State revenue in the first four months of the year was collected from personal income tax, an increase of VND1.3 trillion compared to the same period last year. The number indicated that the personal income had improved. State revenue collected from non-governmental and foreign direct investment companies totalled VND17.4 trillion and VND17.6 trillion, a year-on-year rise of 30.5 per cent and 16.5 per cent, respectively. The total number of newly established enterprises in HCM City which opened this year was 10,450, according to the city's Statistics Office. The number includes 225 private companies, 1,186 joint stock companies and 9,038 limited companies. Nearly 80 per cent of them are involved in services. The total registered capital of all enterprises increased 82.3 per cent compared to the same period last year by more than VND81.5 trillion ($3.7 billion). The capital for agro-forestry and trade services doubled compared to last year, while the number of enterprises in the two fields rose by 26-28 per cent. The Statistics Office also announced that VND9.59 trillion ($436 million) in state revenue in the first four months of the year was collected from personal income tax, an increase of VND1.3 trillion ($59 million) compared to the same period last year. The number indicated that the personal income had improved. State revenue collected from non-governmental and foreign direct investment companies totalled VND17.4 trillion ($790 million) and VND17.6 trillion ($800 million), a year-on-year rise of 30.5 per cent and 16.5 per cent, respectively. Dong Nai signs contract for water supply project The Dong Nai Water Supply Joint Stock Company and HCM City Housing Development Bank (HD Bank) signed a contract to finance Phase 2 of the Nhon Trach Water Supply System. The contract, signed on April 28, allows Dong Nai Water JSC to borrow nearly VND3 trillion (US$132 million) from the Japan International Co-operation Agency (JICA) with a repayment period of 25 years. The second phase of the project has a total capital of about VND3.57 trillion and will be implemented in seven years, beginning from 2016. Upon completion, the plant's capacity will increase from 100,000 cu.m to 200,000 cu.m per day, to meet the growing demand from households and businesses. Dinh Quoc Thai, chairman of the provincial People's Committee, said the southern province of Dong Nai currently has a population of three million with 29 industrial parks, which creates a huge demand for water. The project also helps to reduce drilling for underground water, which depletes water resources and creates environmental pollution, he added. Stocks may climb on positive news from Gov't, world market Vietnamese shares may continue to rise this week with improving investor confidence after they received positive news from the government and global markets, brokerage securities wrote in their weekly forecast. The benchmark VN Index on the HCM Stock Exchange on Friday gained 1.1 per cent to close the week at 598.37 points. The southern index struggled to rise 1 per cent from the previous week. The HNX Index on the Ha Noi Stock Exchange on Friday edged up 0.5 per cent to finish at 80.68 points, but fell 0.3 per cent in total during the week. "Higher investor confidence helped lift the two local indices last week as investors were optimistic about the chance that markets could continue to advance," Sai Gon-Ha Noi Securities Corp (SHS) wrote in its report. Investor confidence improved after the US central bank held unchanged its interest rates for a third time this year, easing fears over a net foreign selling in emerging markets, SHS said. Such fears had put pressure on Viet Nam's central bank to weaken the Vietnamese dong against the US dollar before the Fed's final decision was made. Last week, the daily reference mid-point rate set by Viet Nam's central bank jumped VND24 to VND21,875 for a dollar from a stable rate of VND21,851 in the previous week. The mid-point rate remained above VND21,870 for a dollar the whole week until it fell sharply to VND21,842 for a dollar on Friday. A sharp fall in the mid-point rate also forced foreign investors to record a total net buying value of VND285.7 billion (US$12.7 million) on both local exchanges last week, which was considered an important factor that helped boost local investor confidence. Such high investor confidence lifted financial firms such as Vietcombank (VCB), the Bank for Investment and Development of Viet Nam (BID), Sai Gon-Ha Noi Bank (SHB), Military Bank (MBB), FPT Corp (FPT), and insurance company Bao Viet Holdings (BVH). Meanwhile, investor sentiment may also be bolstered as investors received positive reactions from the government on improving the policies in Viet Nam, and the country's Purchasing Managers Index (PMI) in April hit the highest point in the last nine months, signalling better production and better consumption for the economy. Meanwhile, investors should be wary as oil prices have pulled back from their highest prices since the beginning of the year, SHS said. Oil prices have declined on the global exchanges on Monday and Tuesday while Viet Nam's stock markets were off for holidays, US stockpiles could be rising and Iraq's exports recorded a record high last month. US crude West Texas Intermediate (WTI) on Tuesday fell 4 per cent in the last three days to trade at $44.21 a barrel and London-traded Brent crude has scaled back 5.9 per cent to trade at $45.32 a barrel. US crude and London-traded Brent crude on Thursday reached their highest prices at $46.03 a barrel and $48.14 a barrel, respectively. Energy stocks were already on downward stick last week such as PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Coating Corp (PVB) and PetroVietnam Technical Service Corp (PVS). Trading liquidity improved from the previous week. Both local markets exchanged more than 186.8 million shares each day, worth VND3.3 trillion – an increase of 7.6 per cent in trading volume and 15 per cent in trading value. Real estate market's share growth stunted  While many real estate firms reported higher revenue and profits in 2015 and the first quarter, their share prices rose slowly or not at all in the local market. According to the Real Estate Association of Viet Nam (VNREA), the liquidity of real estate firms at the end of March reached its highest in four years. Vietstock.vn data also showed that realty firms recorded VND61.7 trillion (US$2.8 billion) in revenue, an increase of 25 per cent over 2014, and a net income of about VND6.8 trillion, an increase of 12 per cent. However, of the more than 50 stocks of real estate firms, less than 30 per cent saw growth in their prices within four months. Hoang Quan Group recorded profits that were 21 times higher than in 2015 thanks to the handover of HQC Plaza and HQC Hoc Mon, and about VND200 billion in funds from share transfers. Truong Anh Tuan, chairman and CEO of HQC, said first quarter results were very positive, and estimated that revenue hit VND350 billion and profits reached 50 billion, up 40 per cent and 66 per cent, respectively, compared with the same period of 2015. However, in the stock market, HQC shares have not seen any growth in prices since the beginning of the year, when shares traded at about VND5,600 each. Similar to HQC, realty FLC Group was considered one of the most well-performing firms with little debt and a series of big projects all over the country, but FLC shares were traded at VND7,000 for a long time on the HCM Stock Exchange. Sacomreal also reported a profit of VND176.5 billion in 2015, over six times higher than in 2014 thanks to the selling of the Celadon City project. But its shares traded at only VND9,000 each for the whole quarter. Even worse, with a huge debt reported in 2015, HAG shares of the Hoang Anh Gia Lai Group fell to the lowest level in history at VND6,900 on April 15. It was a 70 per cent decrease from the same term last year. By the end of 2015, the group owed a debt of over VND27 trillion, an increase of 50 per cent over 2014. Likewise, shares of Quoc Cuong Gia Lai JSC (QCG) fell to VND4,800 in April, as the firm was suffering from a large inventory worth VND5.4 trillion, accounting for more than 90 per cent of its short-term assets and liabilities of over VND1.8 trillion. Huynh Anh Tuan, General Director of Securities Corporation, said the investors changed a lot. Now, they fear the listed firms that issue more shares for dividends. Instead, they wanted fresh cash dividends. Most securities experts said investors tend to prefer basic investment in firms with stable profits as opposed to temporary investment in firms with upside-down profits. While shares of many realty firms were unable to grow well, some firms saw shares bounce back as their businesses and profits improved over the last two years. Currently, Khang Dien House Investment and Trading (KDH) shares were traded at about VND23,500. Shares of Binh Chanh Investment Construction JSC (BCI) and Dream House Investment JSC (DRH) were traded around VND24,300 and VND34,000 each, respectively. Andy Ho, Managing Director of VinaCapital, told local media that realty shares had good growth potential, and thus the VOF fund, managed by VinaCapital, would focus on shares of reputable firms. As of the latest report on April 13, the fund has 7 per cent in Khang Dien House. In mid-March, the Dragon Capital investment fund purchased a total of 8.2 million shares, or 7 per cent of stakes, of the Dat Xanh Group, in addition to 3.5 million shares, or 18 per cent of stakes, of Khang Dien House. Asian Banker Summit to open in May The Asian Banker Summit will take place at the JW Marriott Hanoi Hotel in Ha Noi from May 10 to 12. The Summit is expected to bring together over 1,000 senior bankers, regulators, corporate and broker-dealers, as well as treasurers, consultants and service providers from the financial services industry from more than 32 countries. The event, organised by The Asian Banker, will include several conferences and workshops related to issues, such as bank managers challenge and convention, technology decision makers school and conference, international transaction banking convention, supply chain and financial performance dialogue, and financial markets infrastructure dialogue. The key speakers of the event are the governor of State Bank of Vietnam, Le Minh Hung, chairman of Vietnam Banks' Association, Nghiem Xuan Thanh, the former chairman of the House Financial Services Committee, United States Congress Congressman Barney Frank, the CEO and chairman of Schulte Research International, Paul Schulte, and the founder & CEO of FinTech Hong Kong, Janos Barberis. The region, owing to its rapid structural reforms and untapped natural and human resources, is poised to become the next hub of financial investment, trade inflow, supply-chain networks and infrastructure development. The Asian Banker is considered an authoritative provider of strategic business intelligence to the financial services community. The Singapore-based organisation also has offices in Malaysia, China, the Philippines and the Middle East. With a business that revolves around three core areas – publications, research services and forums – the organisation is highly regarded in the financial services community for its incisive and independent commentaries on developments in the industry. MoIT extends tariffs on Chinese steel imports The Ministry of Industry and Trade (MoIT) has acted to protect thousands of steelworker jobs across the country, by extending some of the biggest tariffs of recent years on steel imports from four countries. The MoIT has found that China, Indonesia, Malaysia and Taiwan have been dumping cold-rolled steel or selling it for less than its fair-market value and has enacted new tariff rates that come into effect as of May 14. The new rates on stainless steel from mainland China range from 17.47%-25.35%, inclusive and run through October 6, 2019. New rates imposed on Indonesia, Malaysia and Taiwan (China) are 13.03%, 9.55% and 13.79%-37.29%, respectively. Market analysts said the decision is welcome news to the steelworkers of Vietnam who produce steel products and are a giant step forward in the fight to make our nation's trade policies more aptly benefit working Vietnamese. Earlier, the MoIT ordered the imposition of duties ranging from 3.07% to 37% on imported stainless steel products from these same four countries effective October 15, 2014 to May 13, 2016. Vietnamese doctors remove knife from pregnant woman's head A woman in the northern province of Quang Ninh has recovered from a procedure to remove a knife that went four centimeters into her skull after an unusual accident, Nguoi Lao Dong newspaper reported. The woman known only as T., 24, was admitted on April 29 in critical condition. The 20-cm knife got stuck on the top of her head. She is five months pregnant. An X-ray scan showed the tip of the knife had touched her brain. The woman was admitted to Quang Ninh General Hospital with the knife plunged into her head on April 29, 2016. According to her family, her father-in-law accidentally dropped the knife when he was fixing the damaged rooftop. T. was passing by and the knife plunged into her head. Doctors of Quang Ninh General Hospital performed a surgery to remove the knife. Three days after the procedure, T. is recovering. The condition of the fetus was reported to be stable. She will be discharged later this week, doctors said. HCM City improves human resources of medical sector HCM city has invested significantly in the medical sector by improving its human resources to better serve local residents. The municipal Healthcare Department has established satellite medical examination rooms in ward-level clinics in which good doctors from 12 major hospitals will take turn to work. 43% of clinics in HCM City are qualified to provide family medical services. Nguyen Thi Bay said she was surprised to see experienced doctors from District 2 Hospital working at the Thao Dien ward clinic, “The doctors are very kind and careful. I hope more good doctors will come to work here so we won’t have to travel a lot.” In 2013 Thu Duc district hospital took the initiative in sending doctors to help clinics in medical check-ups and treatment. Its doctors have been dispatched to all 12 clinics in the district. The hospital is considering the establishment of satellite medical examination rooms in local clinics. Hospital director Nguyen Minh Quan said: “Those doctors dispatched to work in clinics take care of epidemic prevention. We are determined to improve the quality of medical check-ups and treatment at clinics to increase people’s trust.” District 2 hospital followed suit in 2015. It has sent doctors to clinics in Thao Dien, Thanh My Loi, and Binh Khanh wards in an attempt to avoid overcrowding at district-level hospitals. Tran Van Khanh, Director of district 2 hospital, said, “We have established family medical centers and satellite medical examination rooms in 3 clinics. Our doctors are specialized in odonto-stomatology, traditional medicine, cardio-vascular diseases, and general internal medicine.” Hospitals in HCM City have responded enthusiastically to the Ministry of Health’s project 1816, which sends doctors from provincial-level hospitals to help improve the quality of medical check-ups and treatment at lower-level hospitals.  Nguyen Tan Binh, Director of the municipal Healthcare Department, said: “Thu Duc district hospital took the lead followed by district 2 hospital. Other hospitals such as Binh Tan and Tan Phu will soon follow suit. We are targeting improving the human resources and infrastructure of clinics in all 24 districts to better serve local residents.” The City targets 20 doctors per 10,000 people by 2020.   Heat to scorch northern Vietnam; rain to drench south this week Extreme heat will be replaced by rain in the south and the Central Highlands of Vietnam this week, while blazing sun will linger in the north and central regions. Due to a warm air mass stretching from the west of the country, northwestern and central regions will continue to be hit by hot climatic conditions, with average temperatures as high as 35-38 degrees Celsius, Le Thi Xuan Lan, a meteorologist in Ho Chi Minh City, said. The weather pattern will be similar in provinces of the Central Highlands and southern areas in the first few days of the week, causing temperatures to hover around 35-37 degrees Celsius. However, it is expected to be more pleasant by midweek and on the weekends as rains and strong winds are predicted to occur at this time, according to the meteorologist. On May 5-6, rainstorms will start lashing southern areas of the Central Highlands, while coastlines of the Mekong Delta will be drenched, clearing the previously baking atmosphere across the reagion, the weather expert added. Severe climatic phenomena, including thunderstorms, cyclones, hail, and squalls are also predicted, following the rainy spell this week in the south, Lan said. The ever popular Dee Hsu arrives in Hanoi Popular Taiwanese emcee Dee Hsu (more commonly known as Little S) has arrived in Hanoi on her first trip to Vietnam for a series of performances at undisclosed private clubs. At the airport, she said her customs procedures went smoothly and she was immediately impressed by the friendliness of the people who complemented her on her looks. She said she hopes her work goes favourably in Hanoi and is looking forward to an exciting time. Dee Hsu was born on June 14, 1978. She is best known for her quick-witted caustic humour as being a co-host of the most popular talk show KangXi Lai Le that aired on Chung T'ien Television with fellow host Kevin Tsai from 2004 to 2015. Prior to becoming a host, Hsu also sang in a duo with her elder sister, Barbie Hsu, called SOS (Sisters of Shu). Due to copyright issues with music labels, the group's name was changed to ASOS (All Sisters of Shu) in the late 90s. Vietnamese pig farmers rush to meet China demand With traders in China willing to buy Vietnamese-raised pigs of any quality at high prices, farmers are rushing to expand their herds, not concerned with what could happen if the Chinese stop buying. The price of live pigs in Vietnam has skyrocketed in the last two months thanks to the increasing demand from China, according to industry insiders. Local traders, who source pigs from farms in southern Vietnam and sell them to Chinese buyers over the northern borders, said the Chinese always place huge orders, accepting both good and even poor quality stock. “While it used to be difficult to sell big pigs weighing above 90kg, those with higher weights are now easier to sell,” a pig farmer in the northern province of Ha Nam said. “The Chinese have even been accepting pigs of more than 120kg.” A man hoses the pigs on a truck heading for China in this photo taken in Quang Ninh Province, located in northern Vietnam. Pigs sourced from southern provinces like Dong Nai and Ben Tre are loaded onto trucks and transported to the northern borders. The animals will have to travel nearly 2,000km in two days to reach their final destination, according to drivers. At peak times, there are as many as 3,000 live pigs sent to China from Dong Nai alone on a daily basis, according to some local traders. At the border gate in the northern province of Quang Ninh, some 20 trucks wait to clear customs to enter China every day. “In only five days, 1,750 metric tons of live pigs, worth US$2.6 million, have been brought through Hoang Mo,” said Tran Xuan Hung, deputy head of the customs agency at the border gate. With pigs selling like hot cakes, local farmers have rushed to enlarge farms and expand herds. Breeders are reaping profits of up to VND1.5 million (US$67) per pig, which Dinh Van Tinh, a farmer in Thong Nhat District, Dong Nai, said was “too lucrative to resist.” Tinh has recently added 300 pigs to his existing herd of 800 animals to embrace the golden opportunity. Similarly, Nguyen Thi Thanh, another Dong Nai pig breeder, has spent more than VND530 million (US$23,661) on building a new farm and buying 100 pig breeds. According to the Animal Husbandry Department, at least 500 metric tons of live pigs are transported across the border to China on a daily basis. “This is both good and bad news,” department head Hoang Thanh Van said. “It is good to see farmers earning good margins from their pigs, but such cross-border trade is risky as the Chinese buyers may stop buying at any time.” In fact, it is not uncommon for Chinese traders to source Vietnamese products, from rice, fruit and seafood, in large quantities before stopping trade abruptly. The decision to halt purchase is usually made when trucks carrying the produce are already waiting at the gates to enter China. The products eventually must be destroyed, with farmers were left in debt. “It will be even more disastrous in the case of pigs, as they are not as easily destroyed as watermelons,” Van said. The pigs will then have to undergo complicated and costly procedures for destruction, and “people may try to keep the dead pigs to slaughter for meat, which will raise food safety concerns,” he added. Nguyen Kim Doan, deputy chairman of the Dong Nai animal husbandry association, said selling big pigs of more than 120kg also poses a threat. “Those big pigs are not preferred by Vietnamese consumers, so farmers will not know what to do with them if the Chinese stop buying,” he explained. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR