BUSINESS IN BRIEF 8/8 Major tourism complex comes online in Binh Dinh   FLC Group put into service a tourism complex worth VND7 trillion (US$312.2 million) in Quy Nhon City in the central province of Binh Dinh over the weekend. Covering 1,300 hectares in Nhon Ly Commune, the FLC Quy Nhon-Binh Dinh complex consists of villas, a five-star hotel with 1,000 rooms, a 1,500-seat convention center, a 36-hole golf course, a golf academy, a marine ecotourism area and a safari park, among others. FLC broke ground for the project in August last year, and launched the golf course and the first phase of a villa area early this year. The golf course, FLC Quy Nhon Golf Links, was inaugurated after only five months of construction. In recent years, Binh Dinh has focused more on tourism with an aim to turn it into a key revenue generating sector in the province and Quy Nhon into a new major travel destination in the central region and the country as well. The province expects to attract 5.5 million visitors in 2020. The tourism complex is the first large-scale project developed in the key tourism area Phuong Mai-Ba Mountain. It is expected to help attract not only tourists but also more investors to new tourism projects in Binh Dinh. FLC Group is constructing a large-scale project worth VND2.3 trillion (US$102.6 million) in an area of 1.7 hectares on An Duong Vuong Street in Quy Nhon City. The FLC Sea Tower Quy Nhon includes a hotel, a shopping mall, and areas for recreational, bar and spa facilities. HAGL opens five-star hotel in Myanmar HAGL Group on Sunday inaugurated a five-star hotel as part of the HAGL Myanmar Center with total investment capital of US$440 million in the Myanmar city of Yangon, which the Myanmar minister for hotels and tourism described as the biggest foreign-invested property project in his country. Attending the Melia Yangon Hotel opening ceremony were Myanmar Vice President U Henry Van Thio, and Deputy Prime Ministers Vu Duc Dam of Vietnam, Sonexay Siphandone of Laos and Men Sam An of Cambodia, as well as other senior officials from the four countries. With 430 guest rooms, the hotel faces Inya Lake, the largest in Yangon, and is near the famous Shwedagon Pagoda. The hotel has three restaurants serving Asian and Western cuisine, open-air swimming pool, and spa. As Myanmar has embarked on its open-door policy, the demand for hotels is running high, especially in Yangon, Myanmar’s largest city and most important commercial center. With two grand ballrooms, Melia Yangon is poised to become a venue for MICE (meetings, incentives, conferences, exhibitions) tourism. The HAGL Myanmar Center comes with two phases. In the first phase from 2013 to 2016, the company, which is listed on the Hochiminh Stock Exchange, has developed a commercial center and two 27-storey office blocks with total floor space of 192,000 square meters, which are managed by property consulting and management services firm CBRE. Vo Truong Son, chief executive officer of HAGL Group, said at the hotel inauguration that the commercial center is now 95% full while the office buildings are 61% occupied by tenants. The HAGL Myanmar Center project will continue to be developed in the second from 2016 to 2018. Myanmar Minister for Hotels and Tourism U Ohn Maung said HAGL Group’s major property project would contribute to meeting growing tourism needs and creating employment for local people. Vietnam mulls tax cuts, debt relief for small firms Vietnam is considering cutting taxes for startups and companies with small revenues as well as offering new concessions to businesses struggling with back taxes. According to a new draft resolution of the National Assembly, from early 2017 to late 2020, the corporate income tax for startups and enterprises with annual turnover of VND20 billion (US$891,862) or less would be revised down from 20% to 17%. This preferential tax rate would not be applicable to earnings from capital transfers, transfers of capital contribution rights, transfers of property excluding social housing, transfers of investment projects, transfers of rights to participate in investment projects, transfers of mineral exploration and exploitation rights and incomes from manufacturing activities and sales outside of Vietnam. The new tax would also not apply to incomes from exploration and exploitation of oil, gas and other rare resources, and incomes from mining operations and from services subject to special consumption tax. However, the draft allows businesses to offset losses from production activities with profit from real estate transfer, transfer of investment projects, and transfer of rights to participate in investment projects, except for the transfer of exploration and exploitation rights of minerals. As an incentive for the IT industry, the draft resolution sets the tax rate for corporate incomes from new projects providing software services at 10% for 15 years. These projects would also enjoy tax waivers for four years and 50% tax cuts in the following nine years. The 10% tax rate would also be given to incomes from renovation and reconstruction projects of old apartment buildings owned by the State. Deferred tax debts would be cleared for enterprises supplying goods and services to the State but have not been paid. The draft resolution also proposes offering debt relief and freezing taxes, deferred payments and penalties for businesses that have been dissolved or abandoned. In addition, a 50% cut on personal income tax has been suggested for the skilled workforce in the IT industry and in the sector of high-tech applications for agriculture and agro-processing. The resolution, if passed, will take effect in 2017. Regulations on tax debt relief will be applied as soon as the draft is approved. Banks bemoan rule on registration of lending contracts for individuals Commercial banks have complained that it is time-consuming and costly to register sample consumer finance service contracts for individuals as required by a decision of the Government. Under Decision 35/2015/QD-TTg, financial institutions and commercial banks must register sample contracts before they sign contracts to issue local debit cards, open payment accounts and provide loans for individual clients.  Nguyen Phuong Anh from the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade said that though the decision came into force late last year, the requirement in the decision had been delayed as banks had had difficulty implementing it. However, Anh said the postponement is not indefinite and that banks could sign consumer finance contracts when their sample contracts are approved. A number of credit institutions have sent sample contracts to the VCA for approval. Contract terms must be adjusted or removed if they run counter to the law on protection of consumer rights, Anh said. Anh told the Daily on the sidelines of a recent seminar in HCMC that the authority had found that many contract terms are against the law. However, some banks claimed that the decision had spelled trouble for them. According to Tran Vu from Saigon Commercial Bank (SCB), though Decision 35 requires registration of sample contracts for three kinds of services, it governs almost all lending activities related to individuals. In addition, the VCA approves just a few sample contracts and does not make it clear what should be adjusted. Some other banks attending the seminar also complained that their sample contracts were rejected after being sent to the VCA. In response to the complaint, VCA deputy general director Trinh Anh Tuan said banks are required to revise contract terms to ensure the rules on protection of consumer rights are effectively enforced. Sample contracts will not be approved if they do not meet the requirements, Tuan said, adding the authority has actively boosted information exchanges with banks in HCMC to help them cut costs. The VCA said it has received 587 applications for sample contract registration concerning issuance of domestic ATM cards and opening of payment accounts, but only 97 of them have been approved. Home loan package extended Eligible homebuyers, who signed borrowing contracts before March 31 with banks under the VND30-trillion home loan package, can receive disbursements until December 31, according to Circular 25/2016 of the central bank.   The State Bank of Vietnam (SBV) last week announced a new circular supplementing Circular 11/2013/TT-NHNN regarding the Government-endorsed home loan program under the Government’s Resolution No. 02/2013. Circular 25, which is effective from August 1, stipulates that the program can continue until December 31 for banks to fulfill their lending contracts struck before March 31 this year with individuals and households who buy, lease, build and repair houses, and banks which reported these loans to the SBV as of May 10. The SBV will refinance those banks that disbursed loans for these customers between June 1 and August 1.  The SBV said if banks charge interest rates above 5% a year under the package, they must repay the difference to clients in the two latest interest rate payments after receiving refinances from the central bank. The new circular says the SBV will stop giving refinancing capital to commercial banks to disburse loans for households and individuals to upgrade and construct budget houses, and for investors of social housing projects and commercial-turned-budget apartment projects. This is in line with Circular 11 and Circular 32/2014/TT-NHNN. According to the SBV, as of May, banks had pledged a total of VND34.83 trillion (US$1.56 billion) in loans for 56,240 borrowers and VND25.8 trillion of it had been disbursed. About 56,112 individuals had secured bank loans worth a combined VND27.45 trillion with disbursements totaling VND20.81 trillion. Banks reported they had disbursed VND26.73 trillion in total as of May 20, including roughly VND21.67 trillion for individual borrowers. Shrimp export forecast lowered by 300 million USD The Vietnam Association of Seafood Exporters and Producers (VASEP) has lowered its forecast for shrimp export turnover to 3 billion USD from 3.3 billion USD in 2016. Secretary General Truong Dinh Hoe explained that the country will lack shrimp supplies in the remaining months of this year due to the impacts of saltwater intrusion, so the VASEP has lowered the export forecast by 300 million USD. He added that in the first two quarters of 2016, shrimp exports to the US increased by nearly 14 percent. The exports will soon be made easier after the US Department of Commerce (DOC) made a preliminary decision to apply a zero percent anti-dumping duty for Minh Phu Seafood Corporation, he said. Four out of the five biggest shrimp export regions for Vietnam registered positive growth, including China – Hong Kong 41.8 percent, the US 13.8 percent and the EU 6.5 percent. Meanwhile, exports to Japan showed a year-on-year decline of 9 percent. However this market still made up 17.1 percent of Vietnam’s total shrimp export revenue. Vietnam is the fourth biggest shrimp supplier of the US with 12.4 percent of the market share after Indonesia, India and Thailand. That the Ministry of Industry and Trade has struck an agreement on anti-dumping duty on shrimp imports from Vietnam with the US DOC and the US Trade Representative (USTR) is good news for Vietnamese businesses, especially Minh Phu Seafood Corporation. The full removal of anti-dumping duties will make Vietnamese shrimp products more competitive in the US market. According to ICRA Limited, an Indian credit rating agency, the DOC increased the average duty on shrimp imports from India to 4.98 percent from the previous 2.96 percent. Meanwhile, shrimp from Thailand is losing its prestige in the global market, and Ecuador is facing a shrimp output reduction due to earthquakes and disease. This will be an opportunity for Vietnam to increase its shrimp export value to the US market. Vietnam is the only supplier among the top five to increase both the volume and value of its shrimp exports to the US . As of July 1, 2016, the price of Vietnamese tiger prawns was more competitive than that of rivals from Indonesia, India and Malaysia. Vietnam is shipping shrimp to 75 markets, down from 81 against 2015. The top 10 importers include the US, the EU, Japan, China, the Republic of Korea, Canada, Australia, ASEAN, Taiwan (China), and Switzerland, making up 95 percent of the total shrimp export turnover in Vietnam. The seafood sector raked in 3.15 billion USD from exports in the first six months of 2016, a year-on-year rise of 4 percent. Shrimp exports made up 1.4 billion USD, up nearly 5 percent against the same period last year. Vietnamese rubber cultivation firms gather in Cambodia A meeting between the Cambodian Ministry of Agriculture, Forestry and Fisheries, relevant agencies and localities, with Vietnamese rubber cultivation firms took place in Phnom Penh, Cambodia on August 2. Speaking at the event, the second of its kind, Cambodian Deputy Prime Minister Yim Chhaily hailed the Vietnam Rubber Group (VRG) and others for generating local jobs, contributing to socio-economic development. He also asked ministries and agencies concerned to take note of Vietnamese rubber firms’ proposals, making it easier for them to do business. Vietnamese participants urged Cambodian taxation and customs sectors to facilitate rubber-planting projects amid current steep rubber prices. Both sides should accelerate the progress of re-signing contracts and reduce the time-limit of land concession contracts to 50 years from 70-90 years, facilitate exports-imports and examine the legal regulations on rubber exports, they said. A total of 48 Vietnamese firms are planting rubber in Cambodia, including the VRG, which manages 15 member units and 19 projects. Of the more than 200,000ha of land licensed to Vietnamese enterprises, over 180,000ha has been planted with rubber trees, mostly in the provinces of Kampong Thom, Preah Vihear, Siem Reap, Mondulkiri and Ratanakiri. Da Nang city wants to turn SMEs into growth engine A workshop was opened in Da Nang city on August 2 to learn about foreign experience in developing small- and medium-sized enterprises (SMEs) and to seek to turn them into a growth momentum of the central city. The two-day function was held by the Da Nang Union of Science and Technology Associations and India’s JA Alpha Business Research and Publishers Ltd. Experts said SMEs are currently contributing over 50 percent of GDP of the OECD member countries and developing nations. They account for 95 percent of the number of businesses and provide jobs for 60 – 70 percent of the workforce. SMEs’ exports make up 68 percent and 41 percent of overseas shipments in China and Canada, respectively. The figure is 29 percent in Vietnam, participants said, adding that these firms are becoming an important growth engine of global economies. Ho Ky Minh, Vice Chairman of the Da Nang People’s Committee said there are more than 16,000 SMEs in the city, accounting for 96 percent of the local businesses. They have helped augment local economic growth, reduce poverty and create jobs. However, they lack development resources and skillful manpower, while facing obstacles in accessing official capital sources, he noted. Assoc. Prof Nguyen Vu Hoang at the Academy of Politics Region 1 and Dr Doan Tranh at Duy Tan University said Da Nang needs to reform mechanisms and policies for mobilising, allocating and using public investment capital. It must strongly attract domestic and foreign investment, enhance enterprise restructuring, and develop science and technology to spur SMEs’ expansion. Big push for national single window for 2016-2020 A draft scheme to implement the National Single Window (NSW) mechanism for 2016-2020 has been completed, according to the General Department of Customs. Accordingly, the department will work with ministries and agencies to devise a Prime Minister’s decision and four joint circulars guiding the implementation of administrative procedures through the mechanism. The one-stop shop portal is expected to cut business costs and customs clearance time by 15-30 percent. As of May 31, the NSW connected with nine out of 14 ministries and agencies, including the ministries of Finance; Industry and Trade; Transport; Science and Technology; Agriculture and Rural Development; Natural Resources and Environment; Information and Communications; Culture, Sports and Tourism; and Public Health, with 31 procedures, over 90,000 files and 6,000 enterprises. The rate of administrative procedures connecting with the portal has so far reached a mere 30 percent. According to the General Department of Customs, all procedures will be conducted in the form of online public services and fully connected with the ASEAN Single Window (ASW) to facilitate the trade of Vietnamese goods and increase inspection on imports. Vietnam has conducted successful technical connection with Indonesia, Malaysia, Thailand and Singapore through the ASEAN Single Window.- VSIP Nghe An builds wastewater treatment plant The Vietnam-Singapore Industrial Park (VSIP) Company in the central province of Nghe An started construction on a wastewater treatment plant with a daily capacity of 28,000 cu.m on August 2. The first phase, with a capacity of 6,000 cu.m per day, will be completed in August 2017. Once fully operational, the plant is capable of treating wastewater for the whole 750 hectares of VSIP Nghe An. Addressing the event, the company’s Deputy Director General Edwin Chee attached significance to the construction, saying that it not only reflects VSIP’s commitment to creating a clean environment but also contributes to attract more investment in the industrial park. Previously in July 2016, the company also started construction on a 5,000 sq.m workshop, which is expected to become operational in the fourth quarter of this year. Established in 1996, the VSIP Group has developed seven industrial parks in Binh Duong, Bac Ninh, Hai Phong, Quang Ngai, Hai Duong and Nghe An provinces, with a combined area of 6,100 hectares. VSIPs have so far attracted 616 investors with a total registered capital of 8.5 billion USD, creating jobs for 160,000 labourers. Vietnam’s heritage photo contest launched The fifth Vietnam heritage photo contest, themed “Rivers of Vietnam”, was launched in Ho Chi Minh City on August 2, open to Vietnamese citizens and foreigners. Entries can be single or sets of photos highlighting nature, tangible and non-tangible culture, and daily life, which should be sent to cuocthianhdisanvietnam@gmail.com . At the launching ceremony, Editor-in-chief of Vietnam Heritage magazine and head of the organising board Le Thanh Hai said the event aims to popularise images of Vietnam to international friends and raise public awareness of maintaining and preserving the country’s cultural and natural heritages. The board will present 100 photos to a community-based charity programme that builds flood-resistant houses in disadvantaged areas. The awards ceremony is scheduled for November in Ho Chi Minh City. The 100 best entries will be chosen for display from October until the end of the Lunar New Year festival at tourist attractions, museums and universities in Ho Chi Minh City, Phan Thiet, Nha Trang, Da Nang and Hanoi. The contest is a joint effort between the Cultural Heritage Association of Vietnam’s Vietnam Heritage magazine and Canon Marketing Vietnam company. Japan group eyes rice exports to VN The Japan Rice and Rice Industry Export Promotion Association on Monday organised a business-to-business meeting in HCM City aimed at selling Japanese rice and rice products to Viet Nam. More than 70 local businesses met with visiting Japanese business executives to explore partnership opportunities. The association's managing director, Minotu Yoneda, said Japan's staple rice is short-grain Japonica, valued for its deliciousness and high nutrition. It is also used to make the popular wine sake and a variety of snacks. "We see that our rice does not have sufficient exposure globally, therefore we decided that the best way for people to learn about its quality would be for them to experience it, and it is also a good way to promote cross-cultural understanding," he said . There was a taste and tell session at the event. JRE was established last year as a co-operative framework for understanding and solving tasks that need to be addressed to uncover and expand overseas demand for Japan's rice and rice food products. Sai Gon Hi-tech Park creates acne product Sai Gon Hi-tech Park's research and development centre and the park-based Geneworld Co Ltd yesterday launched a bio-product called Acnegen to prevent acne. It is made using a combination of extracts from plants and nano gold. With their supersmall size, nano gold particles can better penetrate bacteria and kill them, and this helps Acnegen to prevent bacteria efficiently, eliminate inflammation, reduce skin oil and clear spots. Acnegen marks a milestone in the co-operation between the R&D centre and companies based in the park in HCM City's District 9, Ngo Vo Ke Thanh, head of the centre, said. The centre's research results on biopyramid nano gold have been published in international magazines like Journal of Electronic Materials and Advance in Natural Sciences: Nanoscience and Nanotechnology, he said. It also produces other substances like nano curcumin and nano silver. At the launch ceremony, the centre and Geneworld also signed an agreement for joint research into nano-technology and bio-technology and technology transfer.  Retail sales losing momentum The total revenue from retail trade and services hit US$89.6 billion during the first seven months of this year, up 9.4 per cent year-on-year, according to the General Statistics Office (GSO). Excluding inflation, the increase would be 7.4 per cent, lower than the 8.3 per cent seen in the same period last year, GSO said. The retail sales growth (inflation excluded) during the reviewed period was also lower than was recorded in January at 11 per cent; the first quarter at 7.9 per cent; the first four months at 8.3 per cent and the first five months at 7.8 per cent, GSO noted. GSO statistician Vu Manh Ha blamed the period's unsatisfactory growth for the sluggish retail sales of accommodation, catering, tourism and entertainment services, which reached $11 billion or a yearly growth of only 7.5 per cent. Specifically, the remarkable revenue reductions were seen in some north central provinces due to influence of the mass fish deaths such as Nghe An and Ha Tinh with 17 per cent and 26.2 per cent, respectively. In a brighter spot, retail sales of goods, which accounted for more than 76 per cent of the total sales, reached $68.23 billion from January to July, surging 9.7 per cent against last year's corresponding period. Retail revenue in some sectors saw large increases. Food and foodstuffs saw an increase of 12.9 per cent, household appliances rose 10 per cent, garments and textiles up 12 per cent and transport services increased 8.5 per cent. Previously, GSO director Nguyen Bich Lam said that purchasing power this year would likely have a lower growth rate than last year because of the stability in prices, high supply and stable demand for most essential goods. Vinh Phuc Province woos Czech industrial investment Authorities from the northern province of Vinh Phuc have assured enterprises from the Czech Republic of favourable conditions for them when investing in the province. The province introduced a list of 42 projects that have been calling for investment in several sectors under the forms of official development assistance (ODA), foreign direct investment (FDI) or public private partnership (PPP). Chairman of the provincial People's Committee Nguyen Van Tri spoke at a workshop on investment opportunities in the province held in Prague, the Czech Republic on Monday. He highlighted the local favourable business environment, saying that it offers comprehensive infrastructure, skilled worker training, simplified administrative procedures and low-cost land, rent-free to foreign investors. Vice Chairman of the provincial People's Committee Nguyen Kim Khai said the province ranked fourth in the provincial competitiveness index in Viet Nam. It has lured 221 foreign investors with a total capital investment of US$3.5 billion. However, there are no Czech businesses currently investing in the province. Khai expressed his hope that Czech firms would invest in mechanical manufacturing and supporting industries. Vinh Phuc Province has been one of the country's centres for automobile and motorbike assembly. Support industries therefore play an important role. It is calling for investment from Czech investors in support industries for automobile and motorbike assembly. In addition, it also welcomes investment in hospitals to reduce pressure on hospitals in Ha Noi. It is also looking for investment in a vocational training school for Vinh Phuc and neighbouring localities. Meanwhile, the Vietnamese Ambassador to the Czech Republic Truong Manh Son provided an update on the development of friendship and economic cooperation between the two nations, while underlining Viet Nam's investment potential. Vice President of the Czech Republic's  Chamber of Commerce, Borivoj Minar, said a delegation of Czech firms planned to visit Vinh Phuc Province to expand co-operation. Last week, the province's delegation, led by Tri, had a working meeting with representatives from the Embassy of Viet Nam, the Vietnamese People Association and the Viet Nam Business Association in the Czech Republic. The provincial leader called on Vietnamese expats to invest more in the locality. Aquatic product exports expected to grow 8% Despite challenges ahead, aquatic exports are expected to reach US$7.1 billion this year, a rise of 8 per cent over last year, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP). Though exports have risen, aquatic exports may face several problems in the last half of the year, and exporters have been warned to meet strict standards on hygiene and other matters, including in key markets like the US, Japan and the EU. Ngo Van Ich, chairman of VASEP, attributed the problems to heavy reliance on imported materials from foreign markets as well as an imbalance between aquatic rearing and processing. Ich said a number of Vietnamese exporters, especially shrimp and catfish exporters, would continue to be hurt by anti-dumping tariffs imposed by the US and other import markets. The ongoing drought and saline intrusion are still affecting aquatic production. Tonnes of fish have died not only in the central region but also in the Mekong Delta, according to VASEP. In addition, the EU is expected to face more difficulties due to currency depreciation and negative information about the Eurozone, which will affect Vietnamese aquatic exports. The Ministry of Agriculture and Rural Development and VASEP told affected enterprises to prepare measures to access stricter import markets like the US, the EU and Japan. Of the total $7.1 billion expected in seafood exports this year, shrimp exports are expected to reach $3 billion, a rise of 10 per cent, and catfish, $1.6 billion, a drop of 4 per cent over last year. Total exports of tuna are also expected to increase, to $500 million, by year-end, up 10 per cent, and cuttlefish and octopus, up 5 per cent over last year. Exports of aquatic products to China rose significantly in the first half of the year, reaching $384 million, a surge of nearly 43 per cent over the same period. In recent years, Vietnamese exporters have shifted from stricter markets to China, which accounts for 9 per cent of total aquatic exports. Major exports to China are tuna, catfish and shrimp. According to VASEP, aquatic exports reached US$3.15 billion in the first half of the year, a rise of 4 per cent over the same period last year. Of this figure, shrimp exports reached $1.35 billion, a rise of 4.8 per cent, and catfish, $790 million, an increase of 5.4 per cent over the same period.  VN high-quality goods fair opens in Quy Nhon Around 130 businesses are displaying their products at a Vietnamese high-quality products fair that opened yesterday in Quy Nhon city in Binh Dinh Province. The expo features thousands of products and more than 300 booths. There is a dedicated area for exhibiting innovative products and there will be activities like a promotion during which over 1,000 products will be sold at VND20,000 from 10am to 11am daily. A training course in building a distribution system for small and medium-sized enterprises was organised yesterday on the sidelines of the fair for the benefit of local small and medium-sized enterprises and start-ups. Organised by the Business Association of High-Quality Vietnamese Goods and the provincial Department of Industry and Trade, the fair will run until August 7. HCM City to foster manufacturing HCM City will undertake activities this year to boost manufacturing and supporting industries, according to the local Department of Industry and Trade. Speaking at a seminar in the city yesterday, Nguyen Phuong Dong, the department's deputy director, said his agency would create a database of businesses in supporting industries and offer training programmes based on businesses' needs. City authorities would periodically meet with business executives from these sectors to resolve the difficulties they face, he said. The city would continue to implement its investment stimulus programme that provides preferential loans to firms in key sectors, including manufacturing and supporting industry. The programme also sought to encourage domestic firms to invest in technology to improve their capacity and competitiveness, he said. Eligible firms would have 50-100 per cent of their loan interest subsidised for up to seven years, he said. Twenty six companies have applied for loans since the programme was launched last October, with three getting them. Pham Ngoc Anh, deputy director of the department's Centre for Supporting Industries Development, said the city has a programme to select typical manufacturing and supporting industry products to gradually create a list of such products. Organised every two years, it focuses on the mechanical engineering, rubber and plastic, food and foodstuff, electronic, garment and textile, and footwear sectors, he said. Businesses participating in the programme would enjoy benefits like being part of the city's trade promotion programmes both at home and abroad, he said. Dong said the department would organise an international supporting industries exhibition in September to help businesses promote their products and production capacity and enable them to link up with local and foreign partners and enter the global supply chain. Hoang Tho Vuong, director of the Centre for Supporting Industries Development, said the third Viet Nam International Supporting Industries Exhibition would feature more than 10,000 products from 150 exhibitors. It would also include seminars and business-matching programmes to enable local business executives meet potential customers, he said. At the seminar yesterday, Jabil Viet Nam Co.,Ltd., a subsidiary of the US-based electronic product solutions company Jabil Circuit Inc., displayed products and items the company wants to source locally. Raymond Ngang, regional commodity manager at the company, said last year the company bought US$35 million worth of mechanical products (imports and local), including plastics, cables, keypads, metal, packaging materials, die cut materials, lens, printing materials and others. With the company expected to enjoy a 30 per cent growth rate this year the purchasing could reach $45 million, he said, adding that he encouraged local suppliers to make contact. Philippines wants more flights to Viet Nam The Philippines wants to expand its air connectivity with its Southeast Asian neighbour Viet Nam. The Philippines is eyeing air talks next month with Viet Nam—the first under the Duterte administration as well as for 2016 — to explore and expand air connectivity between the two nations, a government official said on August 1. In an interview, Civil Aeronautics Board (CAB) executive director Carmelo Arcilla said Viet Nam had recently confirmed talks with the Philippines, but the latter would need time to prepare as the government transition was still ongoing. Arcilla said new members of the Philippine Air Panel set a meeting for this week.  Part of the agenda would be to schedule the air talks with Viet Nam this September, he added. He said the Philippines would want to discuss additional commercial opportunities. These could include items not covered by Protocols 5 and 6 of the ASEAN Multilateral Agreement in Air Services, or MAAS, which the Aquino administration signed last February. Under the agreement, Philippine air carriers will be allowed to fly "unlimited frequencies to and beyond the capital cities" of the ASEAN.  This was expected to lead to better and more efficient connectivity and translate to more competitive fares and services. "Viet Nam is a growing economy and it has a big Filipino population," Arcilla said.  HBC reports surge in profits in Q2 Hoa Binh Construction and Real Estate Corporation reported 89 per cent net sales' increase year-on-year in Q2, reaching VND2.45 trillion (US$109.7 million), and a four-fold gross profit increase, touching VND263 billion. Thus, in the first six months, HBC earned VND4 trillion in net revenue, a 74 per cent year-on-year increase, and VND140 billion in after-tax profit, a 213 per cent year-on-year increase. Profit to shareholders of the parent company was VND138 billion. Established in 1987 in HCM City, BHC is involved in constructing civil and industrial works, bridges and roads, transportation works and water supply and drainage systems, as also in construction in the local market. Its largest shareholder, with a 19 per cent stake, is Lucerne Enterprise Ltd, a United Kingdom-based private firm that operates as a real estate developer. HBC Chairman Le Viet Hai, with more than a 15 per cent stake, and PYN Elite Fund (Nom-Ucits), with more than a 14 per cent stake, are the other two major shareholders. On August 2, HBC shares ended at VN23,900 each on the HCM Stock Exchange.  Vietnamese rubber cultivation firms gather in Cambodia A meeting between the Cambodian Ministry of Agriculture, Forestry and Fisheries, relevant agencies and localities, with Vietnamese rubber cultivation firms took place in Phnom Penh, Cambodia on August 2. Speaking at the event, the second of its kind, Cambodian Deputy Prime Minister Yim Chhaily hailed the Vietnam Rubber Group (VRG) and others for generating local jobs, contributing to socio-economic development.  He also asked ministries and agencies concerned to take note of Vietnamese rubber firms’ proposals, making it easier for them to do business. Vietnamese participants urged Cambodian taxation and customs sectors to facilitate rubber-planting projects amid current steep rubber prices.  Both sides should accelerate the progress of re-signing contracts and reduce the time-limit of land concession contracts to 50 years from 70-90 years, facilitate exports-imports and examine the legal regulations on rubber exports, they said.  A total of 48 Vietnamese firms are planting rubber in Cambodia, including the VRG, which manages 15 member units and 19 projects.  Of the more than 200,000ha of land licensed to Vietnamese enterprises, over 180,000ha has been planted with rubber trees, mostly in the provinces of Kampong Thom, Preah Vihear, Siem Reap, Mondulkiri and Ratanakiri.  MobiFone aims breakthroughs through perfecting own ecosystem The MobiFone Telecommunications Corporation, Vietnam’s second largest telecom operator behind the military-operated Viettel, is embracing inclusive restructuring to sharpen its competitive edge.  In a recent talk with VIR, MobiFone chairman Le Nam Tra affirmed the company’s commitment to change from a traditional telecom services provider to a multi-services trader platform.  Accordingly, their operational focus this year will be its equitisation plan execution, retail, 4G and Internet of Things (IoT) promotions.  The firm will concentrate resources into developing telecom network infrastructure, quickly deploying 4G and empowering its information technology and human resources.  The overall target is almost VND100 trillion ($4.56 billion) in revenue by 2020.  To realise these major goals, over the past two years MobiFone embarked on building its own ecosystem to cultivate its four future development cornerstones- information technology and telecommunications, retail and distribution, television, and multi-services.  On July 1 it inaugurated its North-South transmission backbone in a ceremony held in Hanoi after only six months of construction.  The company took this opportunity to announce the outcome of piloting 4G services in Hanoi, Danang, and Ho Chi Minh City in May and June.   Subscribers could now enjoy a wide range of state-of-the art services such as LTE Broadcast (eMBMS), LTE Unicast, 4KTV, Robot Vehicle and online games all in high-speed 4G networks.  MobiFone also introduced to the public its MobiTV, which marks its debut in the pay TV business.  The company strives to have one million subscribers to the new TV services in 2016 and wants to become one of the three biggest businesses in pay-TV services by 2020.   In 4G network promotion, MobiFone has worked with global experienced partners in its deployment, such as Samsung and Ericsson, in order to score maximum download/upload speed for its transmission line, laying the groundwork for its deployment of a series of 4G services in the near future.  The North-South optic cable network and hi-speed 4G technology will be instrumental for MobiFone to develop its television services with MobiTV. Watching TV on a 4G background offers customers an exceptional multi-screen experience and this, along with the introduction of the company’s authentic content, will be the 'specialty' the telco promises to offer its customers in the upcoming period. GDP growth forecast to reach 6.14 percent in Q3 Vietnam’s gross domestic product (GDP) is expected to grow by 6.14 percent in the third quarter (Q3) of 2016, higher than the level of 5.52 percent in the first six months of this year, according to the Central Institute for Economic Management (CIEM). Export turnover is likely to expand by 6.8 percent while the consumer price index (CPI) is forecast to increase 1.31 percent with a trade deficit estimated at 0.4 billion USD in Q3, the CIEM said in its Q2 macroeconomics report. According to the report, GDP growth in Q2 reached 5.55 percent, higher than that of Q1 (5.48 percent). Growth was seen in industry and construction (7.61 percent), agro-forestry-fisheries (0.06 percent), and services (6.6 percent). Exports increased 4.9 percent to 43.4 billion USD in the second quarter, whilst the CPI rose 1.35 percent. The whole year’s inflation could be kept at five percent, as per the National Assembly’s target, CIEM Director Nguyen Dinh Cung told Cong Thuong (Industry & Trade) Newspaper. The institute estimated that economic growth in Q3 will be more positive than that of the previous quarter. However, the global economy’s impacts on the domestic market are unpredictable, especially Britain’s exit from the European Union, which will significantly impact the EU – one of Vietnam’s biggest trade partners. HCMC to hold safe farm produce fair The Ho Chi Minh City Department of Agriculture and Rural Development will organise a safe farm produce fair on the first and third weekends of every month, starting on August 6. Speaking to the media, Nguyen Van Truc, deputy director of the department, said only products that have food safety certification such as VietGap and GlobalGap are eligible to participate in the fair. The fair’s organisers will regularly check the quality of produce and randomly test fruit and vegetable samples for plant protection residues, he said. So far, 24 businesses have registered to take part in the event, eight of them producers and traders of poultry, pork and seafood products and the rest, fruit and vegetable businesses, he said. To be held at the department’s premises at No 176 Hai Ba Trung Street, District 1, the fair will help producers of safe farm produce promote their products and serve as a trustworthy place for people to buy safe food, he added. According to the city Centre for Agricultural Consultancy and Support, 815 fruit and vegetable growers in the city have got VietGap certification and produce an estimated 57,635 tonnes a year. Belgian group to fund fish oil plant's expansion The Desmet Ballestra Group from Belgium signed a memorandum of understanding (MoU) on the second-phase development of a fish oil refinery plant. The deal was signed with the Sao Mai Group and Viet Nam Industry and Trade Bank (Vietinbank)'s Leasing Company in the central city on July 31. As per the agreement, the Desmet Ballestra Group, which is the world leader in engineering and the supply of plants and equipment for the oil, fat and animal feed industries, besides detergents, surfactants and chemical industries and the oleochemical and biodiesel industries, will boost co-operation in technology support and transfer in the manufacture of fish oil and cooking oil from tra and basa catfish in the region. The An Giang-based Sao Mai Group said in a statement that the MoU would help to increase the capacity of the fish oil plant, Ranee, to produce 200 tonnes each year in the second phase, with a total investment of US$17 million. The plant, built in the Cuu Long (Mekong) Delta province, started producing fish oil in 2013 with an investment of $32 million in the first stage. Chairman of Sao Mai Group Le Thanh Thuan said the second phase of the fish oil plant would help process a huge quantity of tra (sutchi) and basa (yellowtail) catfish in the Mekong Delta region. He said the plant would also produce a unique cooking oil and fish oil from tra and basa catfish in the Mekong region for domestic use and export. According to a later report, the Sao Mai Group earned VNĐ4.4 trillion ($195 million) in revenue from seafood, tourism property, foodstuff and renewable energy products in 2015, besides healthcare with 13 subsidiaries. Ministry's fund lends SMEs $29 million A Ministry of Planning and Investment fund will finance small- and medium-sized enterprises (SMEs) with a total amount of VND660 billion (US$29.3 million) this year, an official said. Hoang Thi Hong, director of the SME Development Fund, told reporters that the funding is reserved for enterprises nvolved in innovative and creative activities, and those contributing to chains of production, processing and maintenance of agricultural, aquaculture and forestry products. Companies involved in support industries for electronics, mechanics and sewage treatment, can also apply for funding. Firms can borrow between VND10 billion and VND25 billion for 18-24 months and a preferential interest rate of 5 per cent per year. This is reportedly the first time the SME Development Fund lends money to enterprises since it was established in 2013 by a Government decision, with a charter capital of VND2 trillion. The fund mandated the Bank for Foreign Trade of Viet Nam, Bank for Investment and Development of Việt Nam, and Housing Development Bank to disburse the loans. Official data indicates Viet Nam has about 500,000 operating enterprises, of which SMEs account for 97 per cent. SMEs contribute some 46 per cent to the national gross domestic product (GDP) and 31 per cent of all tax revenues, while employing 60 per cent of the country's workforce of more than 52.2 million people. Demand for new investments, business expansion and start-ups is great. However, the majority of SMEs face difficulties in accessing loans as they cannot afford high interest rates and fail to meet the lending conditions of commercial banks, said Hong. "In fact, organisations such as the World Bank, Asian Development Bank and Japan Bank for International Cooperation have many capital support programmes for enterprises. But it is not easy for companies to approach these capital sources," said Dao Thi Kim Ngan, chairwoman of the SMEs association of nothern Hai Phong City. Ngan told Dien dan Doanh nghiep (The Business Forum) that the VND660 billion preferential package is too small compared with enterprises' demand for capital, suggesting business associations should establish more funds to better assist businesses. Industry insiders said Viet Nam's SME support activities have mainly concentrated on helping struggling firms, while programmes that promote sustained business development remaining few. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR