BUSINESS IN BRIEF 26/6 Cement sales dip in volume, value Local and export sales of cement dipped 0.7% in volume and 15.7% in value for the five-month period leading up to June of 2016, according to the General Department of Vietnam Customs. Total cement dispatches (local and exports) in the January-May five-month period dropped to 7.127 million metric tons with gross sales tallying in at US$260.639 million, the Department figures show. Bangladesh was the largest overseas market, reporting imports of slightly more than two million metric tons for the period. Other prominent markets included the Philippines, Mozambique, Taiwan, Malaysia, Indonesia, Chile, Peru, Australia, Cambodia, Laos, Sri Lanka, China and Myanmar. Vietnamese entrepreneur wins first place in US competition Đào Xuân Hoàng, a Vietnamese entrepreneur, won first prize for an education application at the Global Innovation through Science and Technology (GIST) Tech-I competition held in Silicon Valley yesterday. Hoàng’s Monkey Junior app, which teaches different languages to children, was chosen among 28 other finalists from around the world.   The international contest attracted 1,000 proposals from about 100 countries. Hoàng will receive $15,000 in seed capital to develop the education app. Launched in 2011, the GIST Tech-I is an annual competition organised by the US Department of State to empower young innovators and entrepreneurs and help them build successful start-ups.  Stock exchange for start-ups in Viet Nam not feasible: experts While many enterprises welcome the idea of establishing a stock exchange for start-up businesses, they also expressed concern about the feasibility of such an exchange. Nguyen Truong, CEO of Ahamove, a start-up using technology for delivery services, said there were three obstacles that prevented start-ups from raising funds. Many of them showed little transparency in their use of business health indicators, while few public investors were focussed on start-ups, and an insignificant growth rate. Truong noted that public investors were not eager to accept higher risks from startups, compared with venture funds, which could foresee the potential to support the development of startups. However, the absence of public investors will prevent the creation of a market. At the same time, to eye venture investors, startups must have an impressive growth rate, though, in the next one or two years, there are not expected to be many high growth startups. Meanwhile Tran Nguyen Le Van, CEO of Vexere.com, a technology-based discount ticket engine and a successful startup in seeking investment from foreign funds, such as Japanese fund CyberAgent Ventures and Singaporean fund Pix Vine Capital, said a start-up market was a good idea, but there were still many issues that needed to be clarified. For instance, Van said, it was not clear how the start-up would be evaluated in the market, since startups were not often profitable, in the short term. Therefore, it is difficult to value a startup to be listed on the market. The CEO also said, at the same time, that many startups did not yet have enough capacity or knowledge of finance to properly report to investors. A founder of a startup for recruitment, which was in the process of raising funds, said he was not expecting the creation of such a market, adding that most investors considered new businesses to be risky investments, and it is not easy to sell shares. Finance and banking expert Nguyen Tri Hieu said the establishment of exchanges was a new issue, not only in Viet Nam, but also throughout the world, adding that he had never seen any country that created this model, including developing countries such as the US and European countries. Hieu further said the idea was quite unrealistic, because in their first five years, most startups had little information about their businesses, thus, they receive little attention from investors. Hieu said, instead of a market, the best way to help startups was to set up a trading center, where new businesses could exchange with each other, as well as find potential investors and banks. Samsung suppliers triple   The number of tier-1 Vietnamese vendors joining Samsung's supply chain has tripled from 4 to 12 last year, attendees at a workshop and exhibition heard yesterday. The workshop, titled "Connecting Vietnamese Enterprises with Global Supply Chain", aims to continue seeking component vendors for Samsung as well as discussing solutions to improve the competitiveness of Vietnamese hi-tech component manufacturing enterprises. Currently, there are 178 Vietnamese enterprises supplying Samsung as tier-2 vendors, taking the total number of Vietnamese enterprises joining Samsung's supply chain to 190. Among them are six local enterprises which are tier-1 vendors along with 155 tier-2 vendors supplying Samsung Electronics Viet Nam Thai Nguyen. For the Samsung Electronic HCM City project, there are 6 tier-1 vendors and 23 tier-2 vendors. "Our constant efforts to ensure Samsung works in close co-operation with Government authorities has evoked positive results," Nguyen Cam Tu, Deputy Minister of Industry and Trade, said. Tu said the number of Vietnamese enterprises joining Samsung's supply chain as tier-1 vendors has increased from 4 to 12. Following previous successes, this year workshop and exhibition was held to announce more opportunities for Vietnamese enterprises to exchange experiences in an effort to improve competitiveness in component manufacturing. "Vietnamese enterprises should seize the opportunity to join the global supply chain by connecting with FDI enterprises operating in Viet Nam such as Samsung," he added. "We found that Vietnamese enterprises really have the potential and capability. In the future, Samsung will continue to co-operate with the Vietnamese Government to conduct more counselling sessions and training courses to improve the capability of local enterprises," Han Myoungsup, president of Samsung Complex Viet Nam, said. He said that they were hopeful of offering more opportunities for enterprises to join their supply chain, and help Samsung to enhance global competitiveness as well as consolidate our long-term development in Viet Nam. He emphasised that any enterprise that meets Samsung's criteria in quality-due delivery-price has the opportunity to become Samsung's vendor. He also asked Vietnamese firms to pay more attention to developing technical human resources and product quality management to meet the criteria of a global supplier. This is also a part of Samsung's counselling programme for potential enterprises. The workshop and exhibition attracted over 400 people, including representatives from Governmental authorities and over 250 Vietnamese enterprises. The event also drew significant attention for the display area of 22 Samsung's tier-1 vendors in Viet Nam and showcases of seven Vietnamese enterprises which outstandingly completed the pilot consulting phase.  The workshop and exhibition discussed Government strategy and solutions to develop the support industry – a key factor to quickly and sustainably develop Viet Nam's major industries. Binh Duong hits 78% of FDI goal The southern province of Binh Duong has already achieved over 78 per cent of this year's foreign direct investment (FDI) target with almost US$1.1 billion, its People's Committee announced. It included more than $730 million in 113 new projects and $367 million in 64 existing ones. Of the new projects, 99 are in processing and manufacturing while 14 are in services. According to the province, 26 nations and territories have invested this year, with Singapore topping with seven new projects and increasing capital in eight existing ones. Singaporean investors accounted for more than a third of the investments with $360 million. They were followed by South Korean and Japanese. Tran Thanh Liem, Chairman of the People's Committee, promised every effort to improve the investment environment but also support for local companies. Difficulties faced by companies would be resolved to smooth their operations, he said, and infrastructure and facilities would be further developed, he said. Industrial zones would be enlarged to offer companies more space to expand, he said. Binh Duong, which has an FDI target of $1.4 billion for this year, plans to accelerate trade promotion in key markets like the US, Japan, South Korea, Singapore, and Taiwan. The focus would be on attracting investments in part supplier industry and garment and textile to take advantage of the Trans-Pacific Partnership agreement. More meetings would be held between authorities and businesses to solicit suggestions and help the latter resolve their difficulties. The province has 2,700 projects with a registered capital of over $24.7 billion, including 1,625 worth $16.3 billion in industrial zones. SME law to yield $19 billion in taxes: experts The law to support small and medium – sized enterprises (SMEs) will help generate over US$19 billion in taxes, according to an impact assessment by economic expert Le Duy Binh. Binh said the law, the draft of which was being made available for public comments, would contribute to realising the Government's goal of doubling the number of small businesses by 2020 and expanding the private economic sector. Further, he estimated that $10.5 billion in investment would be poured into business and production, which would help generate 8.5 million new jobs and collect an additional $19.2 billion in taxes for the State budget. Currently, private firms pay VND200 trillion ($8.9 billion) in taxes to the State budget annually, noted Binh. With a 5 per cent reduction on corporate income tax for start-ups, support in public procurement, banking loans and land access, Binh estimated that the Government's support would be equal to VND18.7 trillion, or 1.6 per cent of budget spending. The reduction in corporate income tax seeks to improve the capacity, as well as competitiveness, for SMEs in the long term, although this might cause drops in budget collections in the short term, according to the drafting agency. However, several firms questioned the feasibility of the law. According to Tran Thi Dep, chairwoman of An Giang Business Association, the law should provide realistic support. "Too much support along with implementation difficulties is not good," she said. For instance, the draft law stipulates that SMEs would receive a 5 per cent reduction on corporate income taxes in their first five years of operation. However, most SMEs often suffer losses in their initial years, Dep said, adding that in such cases the support would be meaningless. Economist Vu Dinh Anh said that a reduction of corporate income tax might have positive impact on SMEs, but only enterprises that were earning profits could benefit. In fact, over the past five months, 28,500 enterprises filed for bankruptcy and most were SMEs, he said. "If enterprises want to have profits, they have to either cut costs or raise selling prices," Anh said, adding that "price hikes are not a wise decision given the competition." Therefore, the Government should create favourable conditions for companies to expand markets and eliminate unnecessary costs, such as road tolls that erode profits, he said. To Hoai Nam, deputy chairman of the SMEs Association, said that the supports should be more detailed to ensure that firms would benefit. In the latest draft version, any discrimination in business conditions or administrative procedures against SMEs or deeds, which were intended to cause difficulties to SMEs, were banned. Criminal prosecution could be applied for violations. Pham Thi Thu Hang, general secretary of the Viet Nam Chamber of Commerce and Industry, suggested that the law should encourage firms by improving the overall business climate, rather than "subsidising" them. This would be the first time Viet Nam had a comprehensive legal framework to support SMEs, which made up for 97 per cent of Viet Nam's business community and contributed 45 per cent of the country's gross domestic product. According to the drafting agency, the Enterprise Development Agency under the Ministry of Planning and Investment, SMEs needed support from the Government to overcome difficulties and develop, amid the country's rapid integration, while the efficiency of existing support policies remained limited. SMEs still found it difficult to access resources such as land, capital and policy updates, a recent report on provincial competitiveness revealed. At a conference to seek comments on the draft, experts said the law should also pay attention to business households in Viet Nam, which were estimated to number 4.5 million in the country, and played a significant role in the economy. However, Ho Sy Hung, director of the Agency for Enterprises Development (AED), said that as the State budget was limited, the support policies would focus on SMEs. "The development of SMEs will promote the development of business households, as a result," Hung said. According to the draft, SMEs were defined as firms with revenues of less than VND100 billion ($4.5 million) in the most recent year, or fewer than 300 employees. Gold traders fined over trademarks Over the past five months, 47 gold jewellery traders here have been fined VND1 billion (more than US$44,000) for violating gold trademarks and selling jewellery with gold content inaccurately labeled. The penalty follows an investigation by the provincial Department of Science and Technology, which aims to reorganise the gold trading business in the area. According to the department, many traders in the province announced they were selling 24-karat gold products, with 98 per cent pure gold. However, after some samples were tested, the gold content of these products was found to vary from 65 per cent to 93.5 per cent. Some others had committed to selling 18-karat gold jewellery, with 75 per cent pure gold, but their jewellery contained only 65-73 per cent pure gold. Several traders explained that their gold products were sourced from production facilities in HCM City, which should bear the responsibility for indicating the correct gold content. The department's current pure gold tests use X-ray fluorescence spectrometers instead of waterworks, as was done previously, which may explain the difference in gold purity findings, they said. Department director Pham Van Sang, however, argued against these explanations, saying the traders should take responsibility for their products given that  fluorescence spectrometers are popular testing machines across the world. Sang's departmental inspection was not intended to penalise gold traders but to guide them towards lawful business practices and to create a healthy business environment while safeguarding the rights of consumers, Sang said, adding that 100 traders had sent their samples to the department for testing within the first 20 days of this month. Several gold jewellery producers in HCM City have also contacted the department, proposing co-operation in efforts to revoke the sale of sub-standard products. The province is home to 270 gold traders, and in the next two months, the department will join relevant authorities in comprehensive inspections of these dealers. VinaCapital funds sell DHG shares Two funds of Viet Nam-based investment and asset management firm VinaCapital will sell more than 6.3 million shares, or a 7.28 per cent stake, of DHG Pharmaceutical Joint Stock Company (DHG). The Portal Global Limited fund registered to sell 6.28 million shares, while the Viet Nam Investment Property Holdings Limited fund registered to unload 50,000 shares. The market value of the shares totals about VNĐ550 billion, or US$25 million, at present. The funds said the transactions are expected to be carried out between June 22 and July 21, and the sale will help them restructure investment portfolios. Portal Global Limited is reportedly one of two major shareholders of DHG, besides the State Capital Investment Corporation, which holds 43.42 per cent of the pharmaceutical firm's equity. DHG share prices have increased by 30 per cent, from VND66,500 per share to around VND86,500 per share, since the beginning of this year. VinaCapital, founded in 2003, has some $1.4 billion in assets under management. Construction expo to feature 2,430 booths Vietnamese companies and their counterparts from 27 countries and territories will showcase their latest products at the Construction-Building Material-Real Estate and Interior-Exterior Decoration International Exhibition to be held in HCM City from June 24 to 28. Vietbuild 2016 will feature 2,430 booths of more than 800 exhibitors, displaying building materials, internal and external decorative items, smarthome systems, electric equipment, solar energy systems, paints, anti-absorbents and others. Nguyen Dinh Hung, chairman of the Vietbuild Construction International Exhibition Organising Corporation, said that five conferences on the sidelines of the exhibition would discuss new products and advanced, environmentally friendly technologies, to be held at the Sai Gon Exhibition and Convention Centre. He said businesses had conducted market research and invested in science and technology to come up with new high-quality products and designs to meet market demand. The event is a platform for businesses to exchange information and explore co-operation as well as introduce their latest products and technologies to local and foreign visitors.   Binh Duong facilitates foreign investors Authorities of the southern province of Binh Duong pledged to create optimal condition for foreign enterprises to operate in the locality, said a local senior official. Chairman of the provincial People’s Committee Tran Thanh Liem made the statement at a meeting on June 17, which gathered representatives from 80 local foreign investment enterprises. Binh Duong will continue improving its investment environment to support local enterprises and enhance their competitiveness. Infrastructure facilities will be developed, while the environment will be protected. Land will be zoned off for expanding industrial parks in the locality. Efforts will be made to boost human resource training, administrative procedure reform, and develop social housing for local workers. High-end services will also be developed to meet the local demand for industrial and urban development. Social security and order will be ensured. According to the province, since the beginning of this year, Binh Duong has lured 1.1 billion USD of FDI in 113 new projects and 64 adjusted projects, mostly in processing and manufacturing. So far, Binh Duong has drawn 2,700 FDI enterprises, worth 24.7 billion USD. Vietnam transfers construction techs to Ethiopia The Vietnam Investment High Tech – Building JSC (VITC) inked an agreement to transfer CDeck and Top Base construction technologies to Ethiopia, in Hanoi on June 17. The exclusive technologies, developed by VITC, have been used for more than 100 projects throughout the country. According to VITC Director-General Nguyen Huu Cuong, the firm’s technologies help shorten construction duration and reduce the use of labour and equipment as well as the consumption of building materials and energy. Several companies from Russia are also negotiating for the transfer of the technologies besides Ethiopia. VITC, a member of the Vietnam National Real Estate Association, is the owner of more than 40 patents for exclusive building technologies. Prior to the transfer, a group of representatives from the Ethiopian government took a trip to a number of buildings and projects that applied VITC technologies in Hanoi, Hung Yen, Nam Dinh, Thai Binh and Hai Phong. VN embassy’s trade office in Mexico has new headquarters A new headquarters for the Vietnamese Embassy’s trade office in Mexico was opened in Polanco district, Mexico City, on June 16 to promote trade and economic links between Vietnam and other countries. Ambassador Le Linh Lan highlighted the significance of the trade office to the development goals of Vietnam to increase bilateral trade, investment and economic cooperation with Mexico . She noted that Vietnam has established strategic partnerships with 15 countries and comprehensive cooperation with 10 others. In 2015, Vietnam completed negotiations and signed free trade agreements (FTAs) with a number of nations while attracting 22 billion USD in foreign direct investment (FDI). The year 2016 will be a highlight in the country’s international integration, she said, adding that it is also the first year to implement the Resolution adopted at the 12 th National Party Congress and realise missions of the ASEAN Economic Community (AEC). The new headquarters is expected to increase connectivity between Vietnamese and Mexican businesses, she said. The bilateral trade is hoped to exceed 2.2 billion USD – which was reached in 2015, since the two nations hold enormous potential and opportunities arising from the Trans-Pacific Partnership (TPP) agreement. The establishment of the joint committee on economic, trade and investment cooperation in 2015 also looks to facilitate two-way trade, she added. Sergio Ley López, President of the Business Section for Asia and Oceania under the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE), hailed Vietnam ’s efforts to bring Vietnamese goods closer to Mexican people, saying both countries have great potential to become strategic partners, especially once they have become TPP members. He spoke highly of the Vietnamese market and said the two economies will be supplementary and supportive thanks to TPP, thus increasing two-way trade. The Vietnamese Embassy’s trade office was set up in Mexico in 2005. Over 1mln USD for developing industrial strategies The Ministry of Industry and Trade (MOIT) and the United Nations Industrial Development Organisation (UNIDO) launched a project on supporting the Vietnamese Government in building industrial strategies and related policies through institution capacity development in Hanoi on June 17. The project aims to improve the quality of industrial development strategies and policies to increase the local industry’s competitiveness, thus contributing to reducing poverty and improving gender quality by generating new production activities and jobs. The three-year project has a total investment of nearly 1.1 million USD, of which 980,000 USD is coming from the Republic of Korea ’s Official Development Fund (ODA) through the UNIDO, and a corresponding fund of 100,000 USD will be covered by Vietnam . Speaking at the launch ceremony, Head of International Cooperation Department under the MOIT Le Huu Phuc said the ministry pledges to do its utmost to support the work, adding that Vietnam would see its industry sector grow thanks to the project. Vietnam has enjoyed high industrial growth but added values and technology application rates have remained low, he said, noting that reasonable and feasible policies are crucial to the country to develop its industrial sector with higher added values and competiveness. Ludovico Alcorta, Director of the UNIDO’s Development Policy, Statistics and Research in Austria , hoped that Vietnam and the UNIDO will work closely to realise the project’s goals. RoK Consul General to Vietnam Park Sang-shik said the RoK will share its experience in technological development with Vietnam as well as provide full support for the Southeast Asian country to implement the project. UN to fund VN industrial strategies The Ministry of Industry and Trade (MoIT) and the United Nations Industrial Development Organisation (UNIDO) launched a project Friday to support the Vietnamese Government in building industrial strategies. The project aims to improve the quality of industrial development strategies and policies to increase the local industry's competitiveness, thus contributing to reducing poverty and improving gender equality by generating new production activities and jobs. The three-year project, with a total investment of nearly US$1.1 million, includes $980,000 from the Republic of Korea's Official Development Fund (ODA) through UNIDO, and a corresponding fund of $100,000 will be covered by Viet Nam . Speaking at the launch ceremony, the head of the International Co-operation Department under the MOIT, Le Huu Phuc, said the ministry pledged to do its utmost to support the work, adding that Viet Nam would see its industry sector grow thanks to the project. Viet Nam enjoyed high industrial growth but added values and technology application rates remained low, he said, noting that reasonable and feasible policies would be crucial for the country to develop its industrial sector with higher added values and competiveness. RoK Consul General to Viet Nam, Park Sang-shik, said his country would share its experience in technological development with Viet Nam and provide full support for the Southeast Asian country to implement the project. Gov't urged to help TPP bidders Vietnamese bidders will face many challenges when approaching the government procurement market due to limited capacity and experience, experts said in a conference on government procurement commitments in the Trans-Pacific Partnership (TPP) agreement held last week. Speaking at the event held by the Public Procurement Agency under the Ministry of Planning and Investment, Nguyen Thanh Tuan from the agency introduced the government procurement adjustments in the TPP, goods and services that need to be procured and the prices of bidding packages. He also analysed differences in selecting bidders before and after the deal takes effect. Michael Trueblood, director of USAID's Economic Growth and Governance Office, said USAID was assisting Viet Nam in reforming its policies on government procurement. USAID expert Mai Lam said the TPP was the first free trade agreement where Viet Nam had made commitments on government procurement, noting the government procurement agency would face difficulty in selecting bidders for bidding packages that properly observe the TPP requirements. To improve effectiveness in government procurement, Lam said Viet Nam needs to study and then provide its bidders with information on the government procurement market of other TPP countries. It is necessary to conduct a survey on the capability of Vietnamese bidders and to build trade promotion programmes to boost Viet Nam's exports via the government procurement channels, he added. Jean Heilman Grier, an international consultant, said when joining the TPP, Viet Nam needs to recommend common requirements and principles as well as specific regulations and guidelines to be included in sub-law documents. The country should also detail bidding requirements, including international commitments on bidding, he added. Grier also recommended Viet Nam revise Decree 63/2015/ND-CP on selecting bidders and focus on preferential programmes for small- and medium-enterprises, form independent arbitration agencies, disseminate the TPP government procurement commitments and issue tight regulations to avoid conflicts of interest and to prevent corruption. Additional project in supporting industry land in Binh Duong The Far Eastern Group from Taiwan (China) is accelerating a US$760 million project serving cloth and fibre production in southern Binh Duong province’s Bau Bang Industrial Park. Earlier, the group established the Polytex Far Eastern Vietnam Ltd Company and injected US$274 million in a project serving the garment and textile sector in the Bau Bang Industrial Park. Deputy Chairman of the provincial People’s Committee Tran Thanh Liem said the Far Eastern Group’s plants will create jobs for about 7,500 locals and contribute to boosting the supporting industry for the garment and textile sector in the province. The provincial People’s Committee is making its efforts so that the project will be completed in 2017. According to the Binh Duong Garment-Textile Association, nearly US$500 million in foreign direct investment (FDI) have been pumped into the garment and textile sector in Binh Duong after the signing of the Trans-Pacific Partnership (TPP) agreement. Maritime Bank signs credit card deal with Lotte Mart As the economy gains steam, banks are growing more aggressive in marketing credit and debit cards to increasingly wealthy consumers, targeting 25% increases on the year in the number of credit card users. On June 17, Maritime Bank announced the signing of a deal with Lotte Mart to provide credit and debit cards along with a host of other financial services including ATMs to the retail giants growing customer base in Vietnam.   It’s good news for Lotte Mart customers, said Huynh Buu Quang, general director of Maritime Bank, as customers will be offered a substantial number of bonuses and other savings options for using their as opposed to the opposition’s cards and ATMs. Hanoi’s breakthroughs in administrative reforms to attract investment Increasing promotion activities and improving the business environment to attract capital investment, especially FDI, are top priorities for Hanoi’s economy. This was the message delivered by Hanoi officials at a recent conference on investment attraction. Hanoi topped other localities as the most attractive destination for foreign investors in the first five months of this year. As of the end of May, Hanoi had attracted US$1.6 billion in registered capital, 3 times the same period last year and 50% more than all of last year. The number of projects granted investment licenses and certificates of investment registration is 3 times last year’s total and total capital has risen 240%. Hanoi has made an effort to improve its business environment and had good results. Hanoi now ranks 24th out of 63 provinces and cities in improved business and investment climate. It is pushing administrative reforms to remove difficulties for investors, particularly in tariffs, social insurance, land acquisition, and land clearance. Nguyen Thi Nguyet Huong, President of PNG Holdings Vietnam, said strong commitments to improving the investment environment will create breakthroughs for Hanoi and its enterprises. “I hope the time needed for administrative procedures will be halved. The reduction would help businesses cut investment costs and attract new investment,” Huong said. From now until 2020, Hanoi has set a target of becoming a leader in investment attraction. To achieve this goal, Chairman of the municipal People’s Committee Nguyen Duc Chung said, “Hanoi will focus on administrative reform comprehensively and in all fields including investment licensing. We’ve outlined regulations and processes for investment licensing aimed at reducing the time and amount of paperwork required." "The municipal authorities will continue restructuring the apparatus of its departments and sectors. We will also improve the operations of the entire administrative system towards a single door, trans-sector administrative mechanism," he added. In June, Hanoi plans to establish a fund to support start-up businesses, and promulgate a mechanism to encourage individual household businesses to register pursuant to the corporate law. It aims to have 200,000 new enterprises by 2020. Hanoi will shorten the time needed to register a business from  three working days to two. It will cut by 40% the time needed to complete administrative procedures relating to investment. Chairman Chung promised that Hanoi will try to help all its enterprises complete online tax procedures, and said that Hanoi will cut by at least 20% of administrative procedures for land clearance and retrieval. Seventy investors have already registered to invest in 52 public-private partnership projects introduced at the conference. Many of them involve building or upgrading infrastructure facilities, especially for transportation, water drainage, and telecommunications. VCA investigates anti-dumping allegations on steel imports Several domestic steel manufacturers have requested the Vietnam Competition Authority (VCA) to investigate the merits of filing an anti-dumping action against companies from China, Indonesia, Malaysia and Taiwan. The domestic companies are alleging that colour-coated steel sheet imports from the aforementioned are being sold in the Vietnamese market at below the local cost to produce. In addition, the domestic companies are alleging irreparable harm to the industry segment. The VCA has said it would look into the matter and has asked the companies to produce documentation for the past three years to support their allegations, before it makes a final determination on the appropriate course of action to take. Singapore’s Mapletree buys Kumho Asiana Plaza in HCM City Singapore-based Mapletree Investments has said it acquired Kumho Asiana Plaza Saigon Company in Ho Chi Minh City from Kumho Industrial and Asiana Airlines. Mapletree said in a statement that the deal is its largest acquisition involving a completed, income-producing property in Vietnam. The Republic of Korea (RoK)'s Yonhap news agency on June 9 quoted an unnamed Asiana Airlines official as saying the RoK carrier has sold its 50% stake in the building to Mapletree at US$107.5 million. Yonhap also quoted Kumho Industrial as saying it had sold for the same amount. Kumho Asiana Plaza, located on Le Duan and Hai Ba Trung streets in Ho Chi Minh City, houses offices, serviced apartments and a hotel managed by InterContinental Hotels Group. Hiew Yoon Khong, CEO of Mapletree, said in a statement that Kumho Asiana Plaza is a “rare asset given its attributes such as size, its multiple components with strong occupancies, and location in the heart of Ho Chi Minh City ’s central business district. “We will continue to seek investment opportunities in completed, quality assets that are immediately yield-accretive in Vietnam’s major cities such as Ho Chi Minh City and Hanoi.” He said his group is also keen to invest in greenfield opportunities to develop office, retail, residential, serviced apartment and mixed-use developments, either on its own or with local partners. Kumho Asiana Plaza, located on Le Duan and Hai Ba Trung streets in District 1, houses offices, serviced apartments and a hotel managed by InterContinental Hotels Group. Mapletree first entered Vietnam in 2005 through the logistics sector. It has since expanded into industrial parks and acquired several development assets in Hanoi and Ho Chi Minh City. It is developing Saigon South Place, a 4.4-hectare mixed-use project on Nguyen Van Linh Boulevard in District 7. Its shopping mall SC Vivocity, part of the project and co-developed with Saigon Co.op Investment Development JSC, opened last September. Work on a 30,000 square meter office tower, another part of the project, is expected to be finished by the end of this year, while construction of a serviced apartment building and a residential block is scheduled for completion by early 2018. Vietnam to curtail oil exports The Ministry of Industry and Trade wants petroleum products from the Dung Quat Oil Refinery be consumed domestically and not exported. It has instructed the Binh Son Oil Refinery Company (BSR), which operates Vietnam’s sole refinery, to give priority to selling Dung Quat’s products in the domestic market to limit the country’s dependence on fuel imports. It instructed the company to negotiate with oil companies to sell the products and increase the refinery’s capacity to boost its competitiveness. The ministry promised to co-ordinate with the Ministry of Finance to address tax and other financial issues to help the refinery strengthen its competitiveness. It plans to allow the company to export only when domestic demand is down and its safe storage limit is exceeded. In the past BSR has complained that the tax rate it had to pay was much higher than the rates under Vietnam’s free trade agreements with ASEAN members and the Republic of Korea, making its products more expensive than imports. The Ministry of Finance has requested relevant agencies and the Quang Ngai Province People’s Committee to seek the Government’s approval for amending the tax rates. Vietnamese retailers fight to maintain their share of the domestic market Foreign retailers are turning to the Vietnamese retail market, either investing directly or merging with or acquiring Vietnamese businesses and putting great pressure on domestic companies. The government has outlined strategies to help local retailers improve their competitiveness and establish a stronger foothold at home. Before Thailand’s Central Group bought Big C, another Thai group TCC bought Metro Group’s Cash and Carry wholesale chain earlier this year. The transaction included all 19 wholesale stores and its related real estate portfolio for 655 million Euros. Vietnamese retail enterprises are under threat of losing in the domestic market. The Sai Gon Union of Trading Co-operatives, Saigon Co-op, was involved in the buying of Big C. While the foreign enterprise had more advantages in the acquisition transaction, Saigon Coop has faced a lot of difficulties including obtaining an external investment license. Over the past 9 years since joining the WTO, Vietnam has almost fully opened the retail sector, but has not yet issued sufficient policies for domestic enterprises in the integration process regarding human resources, market information, and trade mark marketing. Diep Dung, Chairman of Saigon Co-op, said that they have suggested the government construct a national strategy for Vietnam’s retail sector development towards 2030. It should focus on developing the 20 top Vietnamese retailers to compete with foreign enterprises. The government will adjust policies and obstacles in foreign mergers and acquisition transactions. Beside the government strategy, retail enterprises have to reform and improve their services. According to Nguyen Tan Hoang Hau, Marketing Director of Thien Hoa Electronics and Furniture Shopping Center, the company will “continue to invest in our trademark recognition system and upgrade our electronics supermarkets in Vietnam to improve competitiveness and attract foreign investment.” Le Thi Thanh Lam, Deputy General Director of Sai Gon  Food, said “we’ll regularly introduce new products. No one can understand the taste of Vietnamese people better than Vietnamese people. We’ll take this advantage to produce suitable products at competitive prices and maintain our foothold.” As well as retailers, producers will also have to improve product quality and reduce their prices in order to penetrate retail chains in Vietnam and abroad. Foreign retail store operators from Thailand, Japan, and the Republic of Korea have expanded their stores in Vietnam and sold an increasing number of foreign products to Vietnamese consumers. Under free trade agreements and Vietnam’s integration commitments, more than 10,000 products will enjoy tax free benefits among ASEAN countries. Another challenge is that some Vietnamese consumers prefer foreign goods at lower prices. Dinh Thi My Loan, President of Vietnam Retailers’ Association, shared her views “when the market is more open, enterprises have to review their production and trade plans. We have to produce what the market needs, not sell what we have.” Economists said Vietnamese enterprises should reform production, trade, and management to produce better products at reasonable prices as the open market has been moving away from the supplier-controlled distribution networks towards retailer- controlled networks. Saigonese start business as veggie farmers in Central Highlands Ho Chi Minh City citizens are leaving their hometown to give clean veggie farming a try in the mountainous Central Highlands province of Kon Tum. Many city dwellers are investing large sums of money in the hope of transforming the remote town of Mang Den, Kon Plong District, into the country’s leading export center of clean vegetables. Situated 1,200 kilometer above sea level, Mang Den’s year-round cool and mild climate, similar to the popular tourist resort town of Da Lat already widely known for weather that lends itself to vegetable and flower growing, has many investors believing it is the perfect location to launch vegetable farming operations. The favorable conditions have helped the town’s attraction as a farming hub spread well beyond Ho Chi Minh City investors and caught the attention of investors from the Republic of Korea, France, and Australia. Nguyen Thi Thien My next to her garden of Japanese strawberries in Mang Den Town, Kon Tum Province, located in Vietnam’s Central Highlands Several fruit, flower, and vegetable operations have recently been launched, bringing much change to the locality. On one 20-degree-Celsius day, Tuoi Tre (Youth) newspaper reporters approached a farm run by Kon Plong Agri-Tourism Company in Kon Tu Rang Village, Kon Plong District. Le Van Phuoc, the farm’s director, said that he was carrying out the first phase of a vegetable growing project using Australian technology. Previously a director of a successful lamp post business in Ho Chi Minh City, Phuoc decided to invest in a completely different industry after he was inspired by a friend from Australia. “I have a Vietnamese-Australian friend who worked at a farm with about 100 ha of land. Their business exported hundreds of millions of dollars worth of vegetables to many countries,” Phuoc said. Le Van Phuoc supervises the construction of his greenhouses in Mang Den Town, Kon Tum Province. “I decided to change industries and coordinate with Australian partners and experts,” the director continued. He succeeded in signing a deal with Four Way, an Australian firm, after his company underwent several procedures to meet all the requirements. “My initial investment was US$1.5 million. It was a risk but it was for something I am passionate about,” Phuoc stated. Phuoc has already overseen the construction of several greenhouses built with automatic watering and fertilizing systems, cold storage, and packaging lines pursuant to Australian standards. During the first phase of the project, Phuoc will focus on growing cucumbers and several types of bell peppers with the intention of distributing the produce to the Australian company’s markets. The director expects that once the construction of his farm is finished, local residents will be able to benefit from his project. Situated about one kilometer east of Phuoc’s farmstead is a hamlet with 12 farms, referred to by locals as ‘District 2 Hamlet.’    The area is named for the Ho Chi Minh City people that left District 2 in the southern metropolis to try their hand at farming in Mang Den. Nguyen Thi Thien My, 58, one of the District 2 Hamlet farmers, said she fell in love with the scenery of Mang Den when she first arrived as a tourist six years ago. My later decided to return to the locality, along with her neighbors, to grow veggies and fruits that she now sells to the people in her hometown. The woman has managed to establish a 20-hectare farm packed with a variety of vegetables, fruits, and flowers. Pointing to her Japanese strawberry garden, My said that the fruit can be sold at VND250,000 (US$11) per kilogram. “Despite the high price, the strawberries and many other types of vegetables I distribute to locals always sell out,” My stated. The farmer shared her intention to expand her market to other central provinces and cities, including Danang, Quy Nhon, Quang Ngai, and more. The Tuoi Tre journalists also paid a visit to Lam Vu, a 23-year-old potato farmer who previously worked as a software engineer in Ho Chi Minh City. Vu has operated his four-hectare potato farm for the past three years and recently inked a contract with a Japanese firm for his next harvest. The young man has spent VND30 million (US$1,342) on an automatic watering system to ensure sufficient irrigation during the dry season. “As Japanese buyers require the products to be clean and free of chemicals, I had to add wood ash and coal to provide more potassium for the soil,” Vu stated. “Hopefully the quality of the soil is sufficient for next season,” he continued. China’s tightened inspection good for Vietnamese rice exporters China has started applying more stringent regulation to ensure the safety of rice imports from Vietnam, a move some Vietnamese insiders say will benefit, instead of hurting, the rice sector. On June 7 Vietnam’s Ministry of Agriculture and Rural Development announced it had closed a new protocol with China, including stricter sterilization inspection Vietnamese rice exports have to pass before entering Chinese market. In order to qualify for exports to China, the rice should be grown at areas certified by the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ), according to the document. The shipment should also be sterilized and cleansed of weeds or dirt. The Vietnamese Plant Protection Department will have to introduce its major rice exporters to China and only those inspected and recognized by the AQSIQ are allowed to ship their grains to China. The new protocol replaces an old document, stipulating rice export activities between Vietnam and China, which has been in use since 2004. The regulation amendment has in fact brought more benefits to Vietnam, according to the country’s Plant Protection Department. According to the old protocol, Chinese experts would come to Vietnam for the sterilization inspection tasks, and the Vietnamese rice companies had to cover their costs. “With the new rule, the Plant Protection Department will be in charge of working with the AQSIQ, saving time and money for rice businesses,” department head Hoang Trung said. Trung added that the tightened rule will encourage more official rice exports to China, instead of the effectively unofficial trade across the border. “This is a good sign as official export is less risky than the unofficial one,” he said. The Plant Protection Department has selected nine sterilization agencies to work with local exporters, and has collaborated with the Vietnam Food Administration (VFA) to prepare a list of qualified businesses to send to China for certification and recognition. Under the old protocol, 131 Vietnamese were eligible to export rice to China but only 30 or 40 firms actually sold their goods to that market, said VFA general secretary Huynh Minh Hue. The new protocol also left Vietnamese rice businesses unsurprised. Tran Ngoc Trung, general director of Vinh Phat, a rice exporter in Ho Chi Minh City, said the new rule will only help Vietnamese exporters to have better preparation for their shipment to China. Trung said such regulations on sterilization are what importing countries normally do to ensure food safety and disease control. “Major rice firms with stable material areas and standardized rice husking facilities and warehouses will not have to worry,” he said. “The US sets even stricter rules but [Vietnamese firms] are still able to enter that market.” China is Vietnam’s largest rice importer. In May Vietnam’s rice exports to China topped 400,000 metric tons, down 31% from a year earlier. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR