BUSINESS IN BRIEF 24/6 Startups to pay 15 - 17% CIT   The Ministry of Finance (MoF) has submitted a plan to the government to reduce the corporate income tax (CIT) rates applicable to small and medium-sized enterprises (SMEs) and startups to 15 - 17 per cent, to assist in their development. The two tax rates will reduce budget revenue in the 2016-2020 period but will be offset by increasing revenues from other sources such as personal income tax. At the same time, reducing rates will contribute to increasing CIT payments in the subsequent period when enterprises re-invest and bolster production. MoF said SMEs are the main focus of development policies in developing countries, including Vietnam. The governments of many countries have approved policies and programs to support SMEs and startups in regard to preferential credit, credit guarantees, tax exemptions, and support of scientific innovation. “SMEs now account for 90 per cent of all enterprises in Vietnam and play a critical role in economic development and social stability,” MoF said. “Tax policy is therefore a key support tool.” MoF noted there have already been support measures in place for startups in recent times. The government is currently promoting and encouraging organizations and individuals to “start a business”. Startups that meet certain conditions will enjoy a preferential tax rate of 10 per cent for 15 years, a tax exemption for four years, and a discounted rate for the next nine years. Such startups must involve intellectual property, technology, and new business models in creating new products and practical goods and services and must not earn revenue in excess of VND20 billion ($900,000) per year. Those that do not meet these conditions will enjoy the preferential tax rate of 15 - 17 per cent. Under development goals for SMEs in the 2016-2020 period there are to be some 450,000 new SMEs established, bringing the total number to 750,000 by 2020. The proportion of investment by SMEs out of the total is to be 50 per cent, the percentage of workers employed at SMEs is to be 50 per cent, their GDP contribution is to be 40 per cent, and their State budget contributions are to represent 35 per cent of the total. To achieve these goal focus will be given to a wide range of solutions, including improving the investment and business environments, supporting access to finance and credit, promoting innovation, assisting the application of science and technology, facilitating business links, promoting integration into value chains, backing market expansion efforts, engaging public procurement, and helping with access to land. Funding for such assistance in the 2016-2020 period is expected to be about VND3 trillion ($135 million). KPMG to offer short-term staff secondments KPMG - one of the Big 4 and the leading firm in audit and professional services - announced on June 22 that it will be launching a new service to provide corporations and organizations access to highly trained professionals for short-term secondments. A major concern for many businesses nowadays is seasonality and unexpected demands that cannot be effectively managed through the regular recruitment process. These include the need for extra resources during end of month or year-end deadlines, periods of leave, or simply filling a gap between one employee finishing and another starting. These needs may vary from week to week and often require immediate short-term human resources. Aimed at helping to balance the level of business demand with the supply of staff, KPMG Vietnam’s Marketplace gives corporations and organizations a reliable solution in the form of short-term secondments. Without going through the time-consuming recruitment and training processes, corporations and organizations will immediately have access to KPMG’s world-wide professional knowledge, diverse skills, expertise, technology and best practices. Furthermore, KPMG Vietnam provides access to professionals with a wide range of capabilities, ranging from analyzing and transforming data and designing a more efficient and effective reporting to assisting in administrative management tasks such as project support, logistics and functional reporting, to enable on time and on budget project delivery. Mr. Jan Martinek, Partner at KPMG Vietnam, said: “We are very excited about this offering, which will complement the range of our services provided in Vietnam. With the launch of the Marketplace service we have moved another step ahead to become a truly one stop shop for all potential business needs any company can struggle with irrespective of its size and complexity. As a group of professionals who work with passion and purpose, we are here to help our clients anticipate tomorrow and deliver today.” MTM gives UPCoM a bad name The announcement of suspension of shares of Central Mining and Mineral Import Export Joint Stock Company (MTM) on June 20 by the Hà Nội Stock Exchange has shocked investors. The Ha Noi Stock Exchange (HNX) said it stopped trading in the entire 31 million MTM shares to protect the interests of investors after the approval of the State Securities Commission. MTM was included in the warning list with 38 other stocks that were recently classified by the bourse for a more transparent market. MTM, which is among the blacklisted firms, recorded good liquidity of millions of shares per day, a very high figure for a stock on Upcom, and had entered the market this April. After trading was stopped, each share of MTM was worth VND2,600 each, 75 per cent lower than its listed value in April. Thus, the value of shares when trading in them was halted was worth VND80.6 billion. On June 13, the State Securities Commission (SSC) directed HNX to verify and inspect the operations of MTM. Four days later, HNX found that the MTM headquarters in the city of Vinh, Nghe An Province was now a restaurant, while its branch in Ha Noi was now a dental care unit. After tracking the data from the General of Tax Department, Viet Nam News found that MTM businesses had been shut down and none of its registration numbers were connected. However, HNX director Nguyen Vu Quang Trung told local media that there was not enough evidence to show that MTM was a fraudulent firm. "The HNX and SSC are still working with the authorities to verify the case," Trung said, and added that if MTM only changed its addresses without intimating the agencies concerned, it would be fined under the regulation. He said that if MTM was a fraudulent company, the issue would go to the investigating authorities in accordance with legal regulations. According to HNX, this was the first such case since the establishment of the unlisted market of UPCoM 2009. It was set up in the simplest manner in the unofficial market for unlisted stocks in Viet Nam to help investors from being cheated and stop them from investing in bad cases. Currently, firms could be listed as long as they were joint stock companies with VNĐ10 billion in charter capital. They were only required to have the audited financial statements and the business registration for the listing. While HNX director Trung still did not know whether MTM was a fraudulent firm or not, the confidence of many local investors fell after the incident. Nguyen Manh Hung, an investor in Ha Noi said he never bought stocks on the unlisted bourse as he knew that basically trading on the unlisted market was more risky than the listed one. Some others on the local stock forum said that of the official markets which including HoSE, HNX and Upcom, Upcom was the least transparent. Some investors said that when such a case occurred there was no mechanism to protect investors. As a solution to protect the investors in the unlisted market, HNX has divided the stocks in two sets - the Premium and Warning lists from tomorrow. The Premium set with 86 stocks are those that meet the criteria of the financial report and the standard of information disclosure in the stock market. Under the specific conditions for stocks on the Upcom Premium set, companies with a minimum charter capital of VND120 billion must have made a profit in the previous year and accumulated no losses, while companies with a minimum charter capital of VND30 billion must have a return on equity (ROE) of at least 5 per cent the previous year and no accumulated losses. These criteria were considered based on the companies' latest audited financial statements. The warning list with 39 stocks, which failed to receive the mentioned demand, would only be traded on Friday. Customs procedures on imported products must facilitate trade The issuance of the list of imported products, which must follow customs procedures at Vietnamese border gates, must be under established laws while creating favourable conditions for businesses and trade. This was announced by Deputy Prime Minister Vuong Dinh Hue. At the working session with the Ministry of Finance on June 21, Hue asked the ministry to attach importance to these issues when compiling the list of imported products which must have customs procedures conducted at Vietnamese border gates. "Careful study is needed, given the recent promulgation of Government Resolution 35/NQ-CP on support to enterprises by 2020," he stressed. The possible impact, such as congestion of goods at border gates or rising business costs, must be taken into consideration, Hue said. According to the Ministry of Finance, which was in charge of compiling the list, the issuance was in line with Decree No. 08/2015/ND-CP instructing the implementation of customs procedures following the Law on Customs, with one term stating that based on import and export in each period, the Prime Minister had decided the list of imported products with customs procedures to be conducted at border gates. Deputy Minister of Finance Do Hoang Anh Tuan said the move was aimed at tightening customs checks on products to limit consumption in the domestic market or on products with high risk of trade frauds. The finance ministry has proposed 11 categories of products to be included in the list. These include cigarettes, cigars, tobacco and alcohol, as well as beer, cars with less than 16 seats, motorcycles with cylinder capacity above 125cm3 and aircraft, along with yachts which were subject to special consumption tax, air conditioners with capacity of less than 90,000 BTU, cards, votive papers and imported products which enjoyed preferential import taxes. According to Nguyen Ngoc Anh, deputy director of the General Department of Customs, those products accounted for just 8.7 per cent of the total customs clearance volume, thus the impact on enterprises would not be significant. Green Bay Village shophouses, garden houses on sale Syrena Viet Nam will open limited sales of shophouses and garden houses of Green Bay Village in Halong Marina Urban Area in northern Quang Ninh Province on June 26. With limited numbers of shophouses and garden houses, only eight each, Syrena Viet Nam, a part of the BIM Group, said that the sale would offer great opportunities for investors to own environmentally friendly-designed townhouses in harmonisation with business purposes. "Green Bay Village shophouses and garden houses are expected to attract attention from buyers and will heat up the Ha Long property market," the developer said. Green Bay Village shophouses are located near the crowded Hoang Quoc Viet Street in bustling Ha Long City while garden houses overlook green parks and swimming pool. Green Bay Village, with all modern amenities, such as all-season swimming pool, parks, library, playground and gymnasiums, has been developed as a gated community with round- the-clock security and an environmentally-friendly design, which will offer a comfortable life and high living standard. Located on the 248-hectare Halong Marina, Green Bay Villages, the second phase of the first high-end apartment called Green Bay Towers in Ha Long, also benefits from the developed infrastructure and comforts offered by the urban area's component projects such as Halong Marina Plaza, CGV Cinema, Marina Bay beach and international schools. The Halong Marina Urban Area running along one of the busiest street of Ha Long joins the bustling development of the tourist city to build a modern, busy and high-living area in the west. Long An looks to boost provincial competitiveness index The Mekong Delta province of Long An has devised key tasks to attract investment and improve the provincial competitiveness index (PCI), said Vice Chairman of the provincial People’s Committee Nguyen Van Duoc. Accordingly, the province has been working to improve land access and the issuance of land use right certificate, while taking drastic measures to remove obstacles in land clearance and resident relocation. To enhance information transparency, Long An will try to make prompt public announcement related to local projects, policy and legal documents. Aiming to ensure a fair competition environment, the province will work to provide all businesses with better access to information, land and capital, and streamline administrative procedures, among others. Local authorities have inspected agencies that provide public services for companies in a bid to make them deliver better performance. The implementation of the one-stop mechanism and e-governance as well as the organisation of regular dialogues between provincial leaders and businessmen are also prioritised. In 2015, Long An’ PCI reached 60.86 points, ranked 9 th nationwide. The index was 0.51 points lower than that of 2014, leading to the province dropping two places in its ranking. However, Long An remained the second best performer in the Mekong Delta behind Dong Thap.- Seminar highlights Vietnam-Germany economic prospects A seminar featuring the prospects of Vietnam-Germany economic ties was held in Berlin on June 22, attracting managers, economists and over 300 Vietnamese and German businesses. Speaking at the opening ceremony, Vietnamese Ambassador Doan Xuan Hung described Germany as the largest trade partner of Vietnam in the European Union (EU) and the fifth largest EU investor in Vietnam. However, he said two-way trade and investment remain modest, and German businesspeople have not gained good understanding of the Vietnamese market even though many want to invest in the country. Several Vietnamese and German officials addressed the event, analyzing potentials of economic, trade and investment links and mentioned their governments’ measures to remove existing hindrances. They included Deputy Foreign Minister Bui Thanh Son and Deputy Minister of Industry and Trade Hoang Quoc Vuong on the Vietnamese side. German speakers were State Secretary at the German Federal Ministry for Economic Affairs and Energy Uwe Beckmeyer, and Director General for Economic Affairs and Sustainable Development under the Foreign Ministry Dieter Haller. Officials of both sides appreciated an initiative to open a Germany-Vietnam trade office, toward the goal of lifting two-way trade to 20 billion USD in the next five years. Participants discussed Vietnam’s competitiveness and ability to attract German small and medium-sized enterprises, saying that Vietnam and Germany could cooperate in mutually-beneficial and supplementary fields. Economist Vo Tri Thanh said Vietnam is interested in developing small and medium-sized enterprises and hopes for further German assistance in the field. Concluding the event, Ambassador Hung said the embassy will thoroughly consider recommendations, especially ways to boost bilateral ties to report to the government, ministries and agencies. He also pledged support for businesses in its capacity. Hanoi attracts nearly US$2 billion in FDI Hanoi has been a leading locality in FDI (foreign direct investment) attraction since early this year, according to the municipal Department of Planning and Investment. In the five months leading up to June, Hanoi attracted US$1.9 billion in FDI, five times higher than that in the corresponding period last year. The capital city also granted investment licences to 73 projects with a total registered capital of around US$3.086 billion. Nearly 11,000 businesses were established in the city in the period with a combined committed capital of US$4 billion. NCB wins two international banking awards National Citizen Commercial Joint Stock Bank (NCB) announced on June 22 that it has been honoured by the United Kingdom’s Global Banking and Finance Review with two top banking awards. We are proud to announce that NCB was chosen as number one in the financial advisory category in addition to having the best working environment of any bank in Vietnam, said Tran Hai Anh, general director of NCB. Mr Anh said that the awards are validation of NCB’s effort since its formation in 1995 to strive for innovation and excellence in bringing the best products and services to its customers. HNX announces stocks in Upcom Premium set The Ha Noi Stock Exchange (HNX) announced a list of 86 stocks in the Upcom Premium set in the official unlisted market on Monday. The stocks in the set were those that met the criteria of the financial report and the standard of information disclosure in the stock market. Under the specific conditions for stocks on the Upcom Premium set, companies with a minimum charter capital of VND120 billion(US$5.3 million) must have made a profit in the previous year and accumulated no losses, while companies with a minimum charter capital of VND30 billion must have a return on equity (ROE) of at least 5 per cent in the previous year and no accumulated losses. These criteria were considered based on the companies' latest audited financial statements. From June 24, stocks in the unlisted market will be traded under two sets. While the Upcom Premium's stocks will be traded twice a week, stocks from the warning set, which were announced earlier in May, will only be traded on Friday. An Phat Plastic and Green Environment to shift to HOSE The An Phat Plastic and Green Environment JSC (AAA) board has approved a plan to delist its shares on Ha Noi Stock Exchange (HNX) for listing on the HCM Stock Exchange (HOSE). Accordingly, AAA is expected to trade nearly 52 million of shares on HOSE in the third quarter. AAA is one of the firms with a 100 per cent foreign investment option. Recently, it experienced active trading transactions on HNX. Daewoo E&C to build first high-end villa project in Ha Noi Daewoo Engineering & Construction Co. announced that it would proceed with the official contracts for 182 households of the first high-end villa project in the "Star Lake" New City in Ha Noi from July 4. According to website businesskorea.co.kr, the project is meaningful in that Daewoo E&C has become the nation's first private firm which first proposed the project to the Vietnamese government, unlike previous government-led development projects, and it is the first export of Korean-style developer projects. The Starlake City project involves building a 1.86 million-square-meter new residential city in the West Lake area 5 kilometers northwest from Ha Noi City Hall. Viet Nam's THT Development Co., a wholly owned subsidiary of Daewoo E&C, has led the mega new city development project. The total cost of the project is about US$2.2 billion and the first-stage construction alone costs $1.2 billion. Daewoo E&C will begin the first parceling sale of 182 four-story houses in the H7-10 block located on the southwest side of the new city. The sales prices range from US$720,000 to US$2.35 million. Buyers should make a 20 per cent down payment and will be able to move into their new houses in July 2017. Daewoo E&C plans to start the second parceling sale of 182 houses within this year, and the third and fourth sale of villas and 600 apartments next year. An official from Daewoo E&C said, "As Vietnamese lawmakers have approved the revised Law on Housing in July last year, allowing foreign investment and ownership of houses or apartments, foreign consumers are increasingly making inquiries. Local real estate developers and Korea's institutional investors have been inquiring about it." Individual investors scramble to buy Saigonbank shares  Ten individual investors have registered to buy up to 67.5 million shares of Saigonbank, while Vietinbank will divest only nearly 16.9 million shares of Saigonbank. The registered number is four-fold higher than the total shares that Vietinbank will sell at a public auction to be organised on June 24 this year. VietinBank, one of Vietnam's biggest lenders, will reduce its stake in the smaller bank — Saigonbank — to 4.91 per cent from 10.39 per cent, currently. With a starting price of VNĐ10,800 per share, the sale will raise at least VNĐ182.1 billion (US$8.12 million). The sale of shares is in line with the central bank's existing rules regarding cross ownership, which limit local commercial banks' stake in another lender to less than 5 per cent, according to VietinBank. One of Việt Nam's smallest lenders by assets, Saigonbank posted VNĐ54.73 billion in pre-tax profit last year, a more than four-fold drop from 2014. Customs procedures on imported products must facilitate trade The issuance of the list of imported products, which must follow customs procedures at Vietnamese border gates, must be under established laws while creating favourable conditions for businesses and trade. This was announced by Deputy Prime Minister Vuong Dinh Hue. At the working session with the Ministry of Finance on June 21, Hue asked the ministry to attach importance to these issues when compiling the list of imported products which must have customs procedures conducted at Vietnamese border gates. "Careful study is needed, given the recent promulgation of Government Resolution 35/NQ-CP on support to enterprises by 2020," he stressed. The possible impact, such as congestion of goods at border gates or rising business costs, must be taken into consideration, Hue said. According to the Ministry of Finance, which was in charge of compiling the list, the issuance was in line with Decree No. 08/2015/ND-CP instructing the implementation of customs procedures following the Law on Customs, with one term stating that based on import and export in each period, the Prime Minister had decided the list of imported products with customs procedures to be conducted at border gates. Deputy Minister of Finance Do Hoang Anh Tuan said the move was aimed at tightening customs checks on products to limit consumption in the domestic market or on products with high risk of trade frauds. The finance ministry has proposed 11 categories of products to be included in the list. These include cigarettes, cigars, tobacco and alcohol, as well as beer, cars with less than 16 seats, motorcycles with cylinder capacity above 125cm3 and aircraft, along with yachts which were subject to special consumption tax, air conditioners with capacity of less than 90,000 BTU, cards, votive papers and imported products which enjoyed preferential import taxes. According to Nguyen Ngoc Anh, deputy director of the General Department of Customs, those products accounted for just 8.7 per cent of the total customs clearance volume, thus the impact on enterprises would not be significant. Dong Nai’s FDI attraction surpasses yearly target The southern province of Dong Nai attracted 1.01 billion USD in foreign direct investment (FDI) in nearly half of 2016, surpassing its 1 billion USD target set for the whole year. Of the total, nearly 400 million USD was injected into 53 new projects, while over 600 million USD was added to 42 existing ones, according to Cao Tien Dung, Director of the provincial Planning and Investment Department. The projects are mostly funded by Japanese, the Republic of Korea, Taiwan (China) investors, mainly focusing on support industry and electronic accessory production, added he. Notably, Dong Won Vietnam Company invested 60 million in its fabric factory, while Shing Mark Vina poured 100 million USD into its interior decoration production project and Hewaseung Vina injected 70 million USD into a footwear factory. The investors are finalising necessary procedures to construct their factories, mostly located in industrial parks in Nhon Trach, Long Thanh and Trang Bom districts and Bien Hoa city. So far, Dong Nai has lured 1,600 projects worth nearly 29 billion USD from 43 countries and territories, including 1,200 valid ones totalling over 24 billion USD. Located in the southern key economic region, the province is home to 36 industrial parks covering an area of over 12,057 hectares. Agribank, Cuba seek credit cooperation Vice President of the Cuban Council of State Salvador Valdes Mesa on June 21 had a working session with the Vietnam Bank for Agriculture and Rural Development (Agribank) to learn about the agricultural finance mechanism. The session is expected to open up more cooperation opportunities between Vietnam and Cuba in general and in the field of agricultural development in particular, especially in agricultural credit. At the working session, State Bank of Vietnam (SBV) Deputy Governor Nguyen Kim Anh said that Agribank has established agency relationship with several Cuban commercial banks, creating a foundation to boost credit payments for the two countries’ businesses. However, the agency relationship is just a first step, the SBV official said, adding that the two countries’ banks should boost their affiliation in order to meet the demands of payment and investment. Agribank is the largest state-owned commercial bank in Vietnam in terms of total assets, operating network and customer base. Following a memorandum of understanding on information exchanges regarding banking inspection and supervision activities between the State Bank of Vietnam and Cuba’s central bank signed in September last year, Agribank set up agency relationship with Cuban BISCA bank on January 22, 2016. From 2014 to 2015, the Vietnamese bank sent three delegations to Cuba to seek cooperation opportunities. Public investment capital disbursement remains slow Ministries, sectors and localities have together disbursed over 83 trillion VND (3.73 billion USD) of public investment capital so far this year, completing 33.14 percent of the disbursement plan in 2016, heard a meeting in Hanoi on June 21. According to Minister of Planning and Investment Nguyen Chi Dung, the disbursement in public investment projects in the first months of the year has been slow. Almost capital sources planned for national target programmes in the first five months of the year were not disbursed because these have not been approved officially. Disbursement of capital raised via Government bond sales in the period also remained low compared to the set plan, with around 6.081 trillion VND (273.6 million USD) spent, equivalent to only 15.42 percent of the yearly plan. The Ministry of Transport, the Mekong Delta province of Kien Giang and Hanoi were said to be lagged behind in the work, with respective disbursement rates of 6.2 percent, 4 percent and 3 percent. Minister Dung attributed the situations to several main reasons, including slow submission of capital plans by several ministries, sectors and localities, and uncompleted and incompatible documents guiding assessment and approval of projects. Difficulties in land clearance, and weak competence of contractors were also reasons behind the situations, Dung said. At the meeting, representatives from ministries and sector clarified information related to the progress of disbursement, while committing to completing early guidance documents, contributing to accelerating the disbursement in the coming time. Deputy Prime Minister Vuong Dinh Hue, who chaired the meeting, urged ministries, sectors and localities to quicken capital disbursement, in order to ensure job generation for the people and the nation’s economic growth. He asked the Ministries of Planning and Investment, and Finance to examine and revise documents guiding the implementation of projects, and inspect the quality of public investment projects, towards promoting the role of projects for the nation’s socio-economic growth. Vinamilk among Asia’s top 300 most dynamic companies Vinamilk has been listed – for the third consecutive year in a row – on the Nikkei Asian Review Top 300 list, which names its selection for the region’s most dynamic companies. The Top 300 are selected from businesses in China, India, the Republic of Korea, Singapore, Thailand, Indonesia, Malaysia, and the Philippines, with rankings based on the criteria of capitalization, growth potential, and levels of development in terms of geography. After nearly four decades in operation, Vinamilk is the leading dairy producer in Vietnam. It has some 25 affiliates within its controlled group, which includes 13 production plants, employing nearly 6,000 workers. Vinamilk has also acquired a 22.8% stake in Miraka from New Zealand, 70% in Driftwood based in the US, and a 51% controlling interest in Angkor Milk in Cambodia, as well as a subsidiary in Poland. In 2015 it recorded worldwide sales totalling more than US$1.8 billion, producing nearly six billion dairy products for sale to consumers across the globe. Knocking down EU-Vietnam fruit and veggie trade barriers The EU and Vietnam have reached a free trade agreement that will remove nearly all tariffs on goods exchanged between the two economies, which holds great promise for expanding fruit and vegetable exports. The deal is expected to initially take effect in late 2017 or early 2018 with a phased-in transition period eliminating EU duties on imports from Vietnam over a seven-year period, says the Ministry of Agriculture and Rural Development (MARD). Speaking at recent industry conference, Hoang Trung, head of MARD’s Plant Protection Department, said historically, the nation’s major exports to the EU have included telephones, electronic goods, footwear, clothing, coffee, rice, seafood and furniture. Agriculture exports in general have been inconsequential, said Mr Trung, primarily due to the high transport costs and food safety concerns for sanitary and phytosanitary— bacterial contaminants and pesticides. Inappropriate agricultural practices in production, harvesting, handling and storage have led to serious phytosanitary issues – making it difficult for fruit and veggies grown in the nation to pass the strict quality tests of the EU. With the passage of the EU trade deal, the economy’s 28 member countries, however, are now highly lucrative, well-guarded markets for which Vietnam agriculture must devise an effective strategy for cracking into, said Mr Trung. The trade pact allows sufficient time to adapt industry practices so that all stakeholders including smallholder farmers, retailers, haulers, storage operators, exporters and others can benefit. It is for this reason that the challenges facing these two segments of agriculture need to be tackled with some urgency, said Mr Trung. He cited the huge potential to provide not only higher levels of employment to the people, especially the youth, but emphasized higher incomes to farmers and the benefits of bringing in more foreign exchange to the economy as a whole. It is in the light of these benefits, the nation need focus its efforts on collaboration between the public, social and private sectors towards promoting research and other cooperation efforts to improve these segments of the economy and overcome production challenges. One of the overarching goals is to address research gaps and find innovative, practical, appropriate solutions to problems affecting the segments’ growth, said Mr Trung. The mission should be to establish sustainable and internationally competitive industry segments that contribute to inclusive economic growth, driven by a strong belief in the health and quality of fruit and vegetables from Vietnam. If we are to accomplish this end, he said, it must be accompanied with a genuine desire to help agriculture at all levels find new and novel ways of doing business and advance the use of research as a vital tool. The current challenges – phytosanitary, soil and climate change – could be reduced, if researchers and key players in agriculture agree to collaborate and make a solid commitment to change. The commitment means stakeholders in the agriculture fruit and vegetable segments, in particular, must radically move away from the old ways of doing things and make their outputs readily transparent to the people. Access to new scientific information and innovations by farmers and other actors in agriculture is the only way to tackle key challenges facing production for both the domestic and export markets, said Mr Trung. It must not be lost on anybody that fruit and vegetable production is mainly undertaken by smallholder farmers, the majority of whom are illiterate or semi-illiterate. It is therefore important that researchers adopt better ways to communicate new scientific knowledge and innovations on post-harvest, storage, pest control, application of chemicals and others, which all impact the quality of the end product. Building a win-win partnership The business community has hailed the media for its active role in shaping a healthier business and investment environment. In the meantime, the media has been asked to fine tune its self so that journalist should never been a threat to good business practices. Earlier this year, eight local dairy goods importers, producers and traders had a lucky escape when the General Department of Customs (GDT) handed down a sentence on tax arrears totalling an estimated VND700 billion (US$31.1 million). Asked to pay extra value-added tax and import tariffs for material imports which had been miscategorised and therefore under-taxed, Vinamilk, Hanoimilk, FrieslandCampina, Nutifood, Dai Tan Viet, Hoang Lam, A Chau and The He Moi, spread word of their petition against the tax collection decision to local media outlets. Almost all local economic newspapers published the story on the dairy importers’ appeal to the government bodies which created a wave of public discontent over the GDT’s decision. As a consequence, the MoF halted the tax collection proposed by the GDT, which not only helped dairy firms escape the tax arrear toll but also aided them in avoiding a force-majeure price hike due to increasing operating costs. This is a typical case of enterprises making good use of the press and highlights the media’s influence on public opinion. “Without the help of the media, the firms’ difficulties wouldn’t have been reported let alone addressed by government authorities,” said Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI). The media is acknowledged by the Vietnamese government as a critical tool showcasing the views of businesses on various issues, including the implementation of policies and guidelines, thus helping improve State management. “Media is the bridge linking enterprise and the state,” Prime Minister Nguyen Xuan Phuc affirmed. Regarding foreign invested enterprises, the media is both an invaluable source of information and useful tool to build brand names, helping to promote products and spur operations. For instance, foreign insurers mainly count on local media to change Vietnamese perspective on their services. “The limited understanding of Vietnamese people about the benefits of life insurance services is a challenge for us as a service provider.  However, through active communication and the support of local media, I think that the situation will certainly improve in the future,” Anton Chang, general director of Taiwanese life insurer Fubon Life Vietnam told VIR.. Last month saw a criminal case reversed in Binh Chanh district, Ho Chi Minh City, against Café Xin Chao. Violations made by local police authorities were eventually uncovered when they prosecuted a coffee shop owner – Nguyen Van Tan, over a slightly late business registration and a lack of certification on food safety. Nguyen Van Bi, who leased the land area to Tan, was also prosecuted for criminal violations. Bi built a leaf hut to raise ducks, which was deemed to “pose serious risks to the public”. It was fortunate that Tan and Bi’s miscarriage of justice was heard and circulated by the media. Eventually, the two men were set free while several officials connected to the case found themselves on the receiving end of disciplinary action. “The case of Café Xin Chao could have gone unnoticed but thanks to local media it got the prime minister’s attention. Café Xin Chao became symbolic of the country’s progress in rooting out corruption and wastefulness,” observed VCCI’s Loc, adding that his organisation would continue to co-operate with the media to contribute inputs in government policy making. The increasing pace of reforms will improve the business environment and benefit firms as a result. According to the Global Competitiveness Report 2015-2016, Vietnam’s competitiveness index climbed 12 spots from the previous year to rank 68th amongst 140 countries and territories. This marks the third consecutive year-on-year improvement of the Vietnamese economic landscape. Many businesspeople have voiced concerns on the impartiality of the media and hope that journalists can respect the law and report incidents fairly. They complained that the media had exacerbated several crises involving enterprises, damaging the reputation and revenues of not only individual firms but also whole industries. Some businesses also admitted that they had been ‘blackmailed’ by journalists. A PR manager at a US-backed firm spoke with VIR  that “we have to classify the media into groups ranging from “slightly dangerous” to “extremely dangerous” and have suitable reactions ready to deal with each group. We do not compromise despite always being on high alert,” said the anonymous manager. He also explained that for businesses subject to European or US law like his, it’s illegal to influence anyone with personal payment or reward. Whenever businesses decide to break this code of ethics, there are consequences, including high financial penalties. In particular, the US’ Foreign Corrupt Practices Act (FCPA) stipulates that payments to foreign officials, including journalists, candidates and parties are against the law. No matter how many violations of businesses and State management agencies that are discovered by journalists, it remains necessary for them to keep their activities lawful and ethical, so as to create an equal and transparent climate for the business community. Given that an article can negatively impact a business’s operation, Loc warned: “It is very helpful to disclose illegal activities, but journalists need to report stories with faith and justice.” Exports to the US inch up 17% to US$41.5 billion Vietnam-US trade relations have enjoyed strong growth in recent years and hit US$41.5 billion last year, according to the Vietnam Chamber of Commerce and Industry (VCCI) Ho Chi Minh City’s branch. Of the figure, Vietnam’s exports to the US rose 17% to US$33.5 billion and imports jumped 27% to US$8 billion. During the first five months of this year, total trade with the US reached US$17.8 billion, of which exports were US$14.5 billion and imports were US$3.2 billion. Meanwhile, up to May this year, US businesses have invested in 809 projects in Vietnam with a total registered capital of US$10.8 billion, ranking 8th among more than 100 foreign investors in the country. In last year alone, they invested in 54 projects with a total registered capital of US$217 million. Vietnam received around 491,000 US visitors last year, a year-on-year rise of 10.7%, and 245,000 US tourists in the first five months of this year. PVcomBank's profits expected to decrease 8% in 2016 Viet Nam Public Bank's pre-tax profit is expected to fall by 8 per cent year-on-year to VNÐ65 billion (US$2.9 million), on a revenue of VNÐ5.5 trillion, in 2016. The bank, also known as PVcomBank, has announced the figures in a business report. PVcomBank said it will continue to restructure itself over the next five years. Following Government approval last March, the Viet Nam Oil and Gas Group (PetroVietnam) will transfer its stake in the bank to the State Bank of Viet Nam. PVcomBank says on its website that it has VND100 trillion in total assets and VNÐ9 trillion in equity. PetroVietnam holds a stake of 52 per cent in the bank, and strategic shareholder Morgan Standley owns 6.7 per cent of its equity. In May, the bank announced that it had provided financial services to PetroVietnam and its subsidiaries with a committed amount of up to $2.7 billion. It also underwrote activities related to payment, tender and contract performance, as well as bond issuance and capital borrowing of other units in the oil and gas sector. Vina Star Motors gets new name  Vina Star Motors, the exclusive distributor of Japan's Mitsubishi Motors Corporation in Viet Nam, was officially renamed Mitsubishi Motors Vietnam (MMV) this month. Along with this change, members of Mitsubishi Japan have also increased their capital contribution from 50 per cent to 82 per cent in MMV. The corporation's registered capital is more than VND365.4 billion (US$16.4 million). Viet Nam is considered one of the most important markets, and therefore, the uniformity of this global brand is a strategic move of Mitsubishi Motors. The move also reaffirms its long term and sustainable commitment to continue bringing "made-in-Japan" high-quality products and services to Vietnamese consumers. There are plans to introduce new models to Vietnamese consumers in July this year, which are fostered by "Mitsubishi-ness", with designs that are elevated to a higher class, embodying a whole new design language – Dynamic Shield. Binh Duong welcomes $760 million garment and textile project Taiwan’s Polytex Far Eastern Vietnam Company has announced plans to develop a textile dyeing and chemical fibre factory with a total capital of $760 million in  the southern province of Binh Duong’s Bau Bang industrial zone (IZ). It is Far Eastern Vietnam’s second project in Bau Bang IZ. The first phase of the factory is expected to start production in 2017 and the factory will fully come into operation in 2020. Zeng Yi Xian, general director of Far Eastern Group, said that the group expects to continue receiving the province’s support in completing the procedures for the investment certificate, so that the construction can be implemented on schedule. Tran Thanh Liem, Deputy Chairman of the Binh Duong Provincial People’s Committee, said that the province will provide favourable conditions for the investor to complete the investment procedures and deal with difficulties arising during the construction process. Previously, on June 30, 2015, the committee granted Far Eastern Vietnam Company an investment certificate to develop the first phase of a $274 million polyester and cotton yarn production factory. Once the first phase comes into operation, it will have an output capacity of 96 million square metres of cotton yarn and 127 million square metres of polyester yarn. The second phase is expected to have a total capital of $1 billion. The project was highly anticipated since it is expected to spearhead the development of supporting industries in Vietnam for the garment and textile industry at a time when Vietnam is set to accede to the Trans Pacific Partnership Agreement. Polytex Far Eastern Vietnam is a member of Far Eastern Group, which operates in numerous different sectors ranging from petrochemicals, cement, and retail to hospitality, finance, and communications. KPMG Vietnam launches Marketplace service KPMG, one of the Big4 and the leading firm in audit and professional services, announced today that it will be launching a new service to provide corporations and organisations access to highly trained professionals for short-term secondments. One major concern for many businesses nowadays is seasonality and unexpected demands that cannot be effectively managed through the regular recruitment process. These are include the need for extra resources during end of month or year end deadlines, periods of leave, or simply filling a gap between one employee finishing and another starting. These needs may vary from week to week, and often require immediate short term manpower resources. Aimed at helping to balance the level of business demand with the supply of labor force, KPMG Vietnam’s Marketplace gives corporations and organisations a reliable solution in the form of short-term secondments. Without going through the time-consuming recruitment and training processes, corporations and organisations will immediately have access to KPMG’s world-wide professional knowledge, diverse skills, expertise, technology and best practices. Furthermore, KPMG Vietnam provides access to professionals with a wide range of capabilities, ranging from analysing and transforming data, designing a more efficient and effective reporting to assisting in administrative management tasks such as project support, logistics and functional reporting to enable on time and on budget project delivery. “We are very excited about this offering which will complement the range of our services provided in Vietnam,” said Jan Martinek, KPMG Vietnam’s partner. “With the launch of the Marketplace service, we have moved another step ahead to become a truly one stop shop for all potential business needs any company can struggle with irrespective of its size and complexity. As a group of professionals who work with passion and purpose, we are here to help our clients to anticipate tomorrow and deliver today,” Martinek added.   To submit a request for KPMG’s assistance, corporations and organisations can simply state their business resource needs either by sending email to marketplace@kpmg.com.vn or submit easily on vietnam-marketplace.kpmg.com.vn VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR