BUSINESS IN BRIEF 16/9 Farmland amassment to be made possible  The Party Central Committee’s Economic Commission has said the Party would adopt a policy encouraging farmers to accumulate farmland and strengthen agricultural cooperation as Vietnam’s international integration is deepening.  Commission chief Nguyen Van Binh, speaking at a conference in Hanoi last week on development of agricultural enterprises and new rural areas, said the conference focused on two major policies for farmland amassment and cooperation in the agricultural sector. The topics of discussion at the event will be passed to the Politburo and the Secretariat for consideration. Binh said a number of policies adopted in the past have helped fuel agricultural sector growth. He said the sector must concentrate on large-scale production and join the global supply chain now. He stressed that farming cooperatives and businesses rather than households play a crucial part in agricultural growth and that farmland accumulation is essential but the rights of farmers must be protected. Binh said Vietnam’s legal framework should be revised in a way that props up agricultural firms and that proper policies must be put in place to allow businesses to amass land for large-scale farming.   In the 2011-2015 period in which Binh was serving as governor of the State Bank of Vietnam, bank loans for the agricultural sector doubled. He said that to make the agricultural sector attractive to businesses, the State should facilitate farmland accumulation and strengthen cooperation in the sector. If the legal framework is supportive, enterprises would be able to boost investment in this sector and use advanced machinery and technology for production expansion. The conference last week was attended by many companies, associations, policymakers and economic experts who discussed solutions to support the agricultural sector as it contracted in the first half due to drought, saltwater intrusion and lower import tariffs on farm produce.   Le Van Tam, chairman of Lam Son Sugar JSC, told the conference that the country must shift from small-scale farming to large-scale one and step up mechanization to cut costs and raise labor productivity. The State’s preferential lending policy for those firms applying modern technology is not enough. If large-scale farming is not in place, the application of advanced technology would be meaningless.  He suggested farmland should be accumulated via transactions, so a new land management mechanism should be adopted to channel more corporate investments into the agricultural sector, in which investment remains risky.  Vo Tri Thanh of the Central Institute for Economic Management (CIEM) shared Tam’s view, saying amassing agricultural land would give a much-needed boost to the sector. The Southwestern Steering Committee said small-scale farming, poor cooperation among cooperatives and a lack of workable mass farming models were hindering the development of the sector. He took An Giang, a major rice growing province in the Mekong Delta, as an example. Some 75% of rice producing households in the province have less than one hectare each. This small-scale farming pattern has it impossible for them to escape poverty.  The Mekong Delta annually uses some 100,000 tons of plant protection drugs and over two million tons of urea but scientists say just half of those volumes are enough. By late last year, a mere 3.5% of the total rice acreage had been used for growing rice on a large scale.   Annual post-harvest paddy losses remain huge, at 12% in volume and 13% in value, or five million tons of paddy worth VND25 trillion. The delta has been bogged down by a host of climate change-induced problems like rising sea levels, saltwater intrusion and impact of the nation’s stronger international integration. According to a Ministry of Agriculture and Rural Development report, last year saw 3,640 startups in the agricultural sector, less than 1% of the total. Of them, 85% were private businesses. Since 1990, the domestic farming sector has been facing slower growth. French media highlight Vietnam’s economic development Vietnam is one of the fastest growing economies in Asia, said the French news website Capital.fr on the occasion of French President Francois Hollande’s recent visit to Vietnam.  The article cited statistics of the Organisation of Economic Cooperation Development (OECD) as saying that Vietnam is experiencing a sustainable economic growth of over 6 percent per year since 2014, which should continue in the coming years, while inflation was maintained below three percent.  It highlighted Vietnam’s large, skilled and cheap workforce, with 90 million people, 56 percent of whom under 30. The literacy rate exceeds 93 percent, but the level of salary was relatively low.  In addition, Vietnam has been a member of the WTO since 2007 and recently participated in several regional and bilateral free trade agreements, the article said.  It also underlined Vietnam’s privileged geographical location on one of the major trade routes in the word leading to the Chinese market. The geographical advantages have facilitated the country’s international trade.  Vietnam has strong agricultural potential. It is a leading global producer of rice, seafood, coffee, and its tourism is also growing rapidly, the article added.  France is only the 17th supplier of Vietnam, mainly in aircraft, weapons and equipment, accounting for only 0.8 percent of the Southeast Asian country’s imports, while three percent of Vietnam's exports go to the French market, mostly phones, textiles and foodstuffs.  There remains room in the Vietnamese market for French companies to explore, the article said.  However, it quoted journalist Dominique Baillard as saying that weak infrastructure is a major obstacle to Vietnam’s economic growth. GM recalls 1,300 Chevrolet Aveos in Vietnam General Motors is recalling 1,240 Chevrolet Aveo’s in Vietnam due to an error in the ball joint. The cars were assembled in Vietnam between July 1, 2015 and April 20, 2016. The error, according to GM, could cause the ball joint to crack during use leaving drivers unable to control the direction of the car. The check and replacement of the ball joint will last 4.2 hours per car. GM Vietnam will bear all the associated costs. The recall is going to be carried out at all GM Vietnam official dealerships from August 15, 2016 till February 15, 2017. In March, GM Vietnam recalled 565 Aveo Klasn1 FYU and AVEO Klas SN4/446 models produced between July 27 and December 4, 2015. According to GM, the error was also with the ball joint, but at the time the check and replacement took only two hours. The recall ended recently in September 2016. GM Vietnam assembles vehicles at its Hanoi facility. Its vehicles are sold through 18 Chevrolet dealerships across the country. It also exports about 500 vehicles, making it the first automaker in Vietnam whose products are sold outside the country. Draft revisions to Railway Law under NA discussion On September 12, the National Assembly (NA) Standing Committee discussed the draft revisions to the Railway Law. The 2005 Railway Law featured improvements by state management in the railway sector, clearly distinguished State management and enterprises’ business operations, infrastructure and the transport business.  Deputy Minister of Transport Nguyen Ngoc Dong said the law would be revised to create a breakthrough in railway infrastructure development, developing a more transparent business environment, and further connecting with other means of transport.  It is expected to create an open mechanism to further attract social resources to the railway sector, ease the burden on the State budget and modernize Vietnam’s railway system to make it more effective. Standard Chartered pledges support for Vietnam growth Bill Winters, group chief executive officer (CEO) of Standard Chartered Bank, has underscored the bank’s strong commitment to supporting Vietnam’s growth and effort to explore new opportunities in this growing market. During his first visit to Vietnam last week, Winters called for senior Vietnamese government and business leaders to exchange views about Vietnam’s investment opportunities and economic potential. Most importantly, he was keen to find out how Standard Chartered can further contribute to Vietnam’s growth and the development of its financial sector. Winters said in a statement that Vietnam is an attractive emerging market driven by its young and dynamic population and stronger international integration. As one of the oldest international banks in Vietnam, Standard Chartered can facilitate the country’s growth as it has gained deep local knowledge combined with its international expertise and network. Winters also affirmed that the bank will continue to invest in Vietnam to capture the opportunities that the market offers and drive trade, investment and the creation of wealth in the country. Standard Chartered is a leading international banking group, with a 150-year history in some of the world’s most dynamic markets. The bank opened its first Vietnam branch in HCMC in 1904 and set up its locally incorporated entity, Standard Chartered Bank (Vietnam) Limited, in 2009. The Vietnam unit provides a full suite of banking products and services to corporates and financial institutions as well as small and medium-sized enterprises and individuals. Standard Chartered said it has been the sole Sovereign Credit Ratings Advisor to the Vietnamese Government since 2012. In this capacity, the bank has been a partner of Vietnam through a period of macroeconomic instability. Standard Chartered was named the “Best Foreign Bank in Vietnam” by the Global Banking & Finance Review in 2014 &2015, and by Global Business Outlook in 2016. Tra fish exports up, prices down Tra fish exports in the first eight months of 2016 grew against a year ago but prices of the fish on both local and foreign markets fell. In the January-August period, tra fish exports reached US$1.09 billion, increasing 7% year-on-year. The Vietnam Association of Seafood Exporters and Producers (VASEP) estimated the figure for all of 2016 at US$1.65 billion, up 6%. The growth in export revenue, however, did not benefit local tra fish growers as domestic prices of the fish slid in previous months, said the director of a tra fish exporting firm in the Mekong Delta, who asked to remain anonymous. He said local enterprises focused on boosting outbound sales of tra fish during the period and scrambled to get more contracts by undercutting prices although the demand for the fish on global markets was high. In the first half of this year, Vietnam’s tra fish was shipped to the U.S. at US$2.5-2.7 per kilo compared to US$2.8-3.2 per kilo in the same period last year while export volume to this market rose 13%, VASEP cited data of the U.S. Department of Commerce as saying. The first half saw tra fish fillets exported to the U.S., which accounts for 23% of Vietnam’s tra fish shipments, at lower prices than those of other white-meat fish products. For instance, frozen tilapia fillets were priced at US$4.3-4.6 per kilo and frozen Haddock US$6.3-6.6 per kilo in the U.S. market. Lower export prices of tra fish fillets led domestic prices to fall on the domestic market earlier this year. It was the first time since 2010 that the local price of tra fish had dropped to VND17,500 (less than US$1) per kilo, according to VASEP. Nguyen Huu Nguyen, head of a tra fish cooperative in Chau Phu District in the Mekong Delta province of An Giang, told the Daily that tra fish growers are suffering losses of at least VND1,000 per kilo although the price of fresh tra fish bounced back by VND1,000 per kilo against a week ago. A kilo of tra fish is now sold at VND18,000-19,000 per kilo on the domestic market while the production cost is VND20,000 per kilo or higher, he gave figures to prove his point. Unless the Government takes bold measures to solve the problem, there would be no way to develop the tra fish sector in a sustainable manner, said Nguyen Ngoc Hai, head of Thoi An tra fish cooperative in Can Tho City. HCMC inks cooperation deal with Japan’s Aichi Japan’s Aichi Prefecture and the HCMC government on September 13 signed a memorandum of understanding (MOU) strengthening cooperation in management of transport system, developing supporting industries, increasing flight frequency and offering Japanese scholarships. Omura Hideaki, governor of Aichi Prefecture, said Aichi is among Japan’s leading industrial centers with the strong development of the auto, aeronautics and robotics industries. The authority of Aichi has been successful in transferring the transport system operation rights to private enterprises and it will be beneficial to the operation of HCMC’s traffic system if there is a partnership between enterprises of the two sides in the future. HCMC chairman Nguyen Thanh Phong said Japan is the city’s sixth biggest foreign investor with over 800 projects, a modest figure compared to the potential of the two sides. Phong expected more enterprises from Aichi to set up shop in HCMC given the city’s big demand for industrial development and the prefecture’s industrial strength for the development of small- and medium-sized enterprises (SMEs). He said HCMC will focus more on developing the mechanical, electronics, information technology, pharmaceutical, food and foodstuff processing and high-tech industries. The city is calling for foreign companies to invest in the sectors. At a meeting with the Ministry of Transport in Hanoi on Monday, Hideaki proposed Vietnamese airlines increase flight frequency between Vietnam and Nagoya as well as open new routes linking Vietnam’s major cities and the Japanese prefecture. Hideaki said there are about 13,000 people of Vietnamese origin living, working and studying in Aichi, the second biggest number after Tokyo. More than 150 enterprises from the prefecture including Toyota have invested in Vietnam. Therefore, he called for local airlines to increase the number of flights between HCMC and Nagoya and launch new services between major cities such as Danang to Chubu International Airport in Aichi to meet growing travel demand and promote commercial and tourism ties between Vietnam and Japan. Deputy Minister of Transport Nguyen Ngoc Dong underlined the potential for strong growth in two-way trade and travel demand for businesspeople and tourists between the two countries. Vietnam Airlines is expected to increase flights between HCMC and Nagoya from four to five flights a week from next January before bringing the number to seven. Vietnam Airlines is the only local carrier to conduct direct services linking Vietnam’s three major cities of Hanoi, HCMC and Danang and Japan’s cities of Tokyo, Osaka, Fukuoka and Nagoya. Dong said the ministry backed the proposal and would create favorable conditions for airlines to open new services between Vietnam and Aichi. The ministry hoped more Japanese enterprises including those from Aichi Prefecture to invest in different sectors in Vietnam, particularly in transport infrastructure. August auto sales up 29% y-o-y Last month saw auto sales leaping by 29% year-on-year to 23,540 units though many Vietnamese believe it is not good to buy valuable things in the seventh lunar month of wandering souls, which fell in August this year. A report of the Vietnam Automobile Manufacturers Association (VAMA) showed more than 15,000 passenger cars, nearly 7,550 commercial vehicles, and 960 special-purpose autos found buyers in August. The total registered a fall of 17% month-on-month. Of the total, more than 17,500 were domestically-assembled and 6,000 were completely built-up (CBU) units, both down 17% month-on-month. In previous years, auto sales dipped in the seventh lunar month as it is called the month of wandering souls and many people avoid purchasing expensive items like cars and houses during the month. However, things have changed this year and this was the first time August’s auto sales had exceeded 20,000 units owing to big promotions offered by car sellers and growing demand. The growth is projected to continue as the local demand for autos always jumps in the final months of year. Ford Vietnam sold 2,123 units last month, up a staggering 57% over a year ago. Auto sales in January-August neared 185,550 units, climbing 32% compared to the same period last year. The number included 107,000 passenger cars, soaring 30%; 69,600 commercial cars, surging 33%; and 11,200 special-purpose vehicles, rising 46%. In the eight-month period, there were 142,000 domestically-assembled cars delivered to customers, up 35% year-on-year; and 45,900 CBU autos, up 25%. Truong Hai Auto Joint Stock Co. (Thaco) topped the market in the January-August period as it sold more than 72,500 units, a 52% year-on-year increase. Toyota Vietnam came second with over 33,930 units, up 8%; Ford Vietnam 18,443 autos, up 57%; and Honda Vietnam 6,580 vehicles, up 33%. Auto sales hit a record high of 245,000 units in 2015 and this year’s sales volume is forecast to grow 10-15% over last year. Steel imports surge 27.3% in Jan-Aug Vietnam imported about 12.6 million tons of steel worth US$5.3 billion in the first eight months of this year, up a staggering 27.3% year-on-year, according to the Ministry of Industry and Trade. Steel imports are projected to reach about 22 million tons in all of 2016. China remained the largest steel exporter to Vietnam in the January-August period, accounting for 50% of Vietnam’s total imports, followed by Japan, South Korea and Taiwan. Russia rose as Vietnam’s fifth biggest steel supplier. In August, steel import prices from the three major markets of China, Japan and Russia kept increasing by 1.43-2.4% over July. However, Chinese steel products still dominated the local market. In June alone, China manufactured nearly 400 million tons of steel, down 1.1% year-on-year, and shipped abroad 57.2 million tons, up nearly five million tons. The ministry was cited by the local news site VnExpress as reporting that China is producing less steel but increasing exports. The industry-trade ministry decided to slap safeguard duties on imported steel ingots and long steel products until March 2020 after an upsurge in imports though domestic steel makers can meet half of the demand for these products. VN expects $2.5b gain in fruit, vegetable exports The export value of domestic fruits and vegetables is expected to reach US$2.5 billion this year, surpassing the value of rice exports for the first time, the Ministry of Agriculture and Rural Development (MARD) announced. The Ministry said the vegetable and fruit industry grew from exporting $235 million to 36 markets in 2005 to exporting $1.8 billion to 60 markets in 2015. The export value in 2015 reached a record high $1.8 billion, 123 per cent higher than in 2014. Viet Nam's exporters have promoted vegetable and fruit exports to both traditional and new markets, including markets with strict rules, such as the US, European Union (EU), Japan, South Korea, Canada, Australia and New Zealand. Fruit producers in the Cuu Long (Mekong) Delta region are now producing fruit products using good agricultural practices (GAP) to meet export market requirements, the Ministry said. Many production models have been implemented and certified for rambutan and green-skin pomelo in Ben Tre Province, Nam Roi pomelo in Vinh Long Province, Vinh Kim star-apple, Hoa Loc mango and pineapple in Tien Giang Province and mango in Dong Thap Province, VietGAP and GlobalGAP said. Viet Nam has emphasized rice exports for many years. But fruit exports are in demand on the world market, so the nation should promote fruit exports in the future, the deputy minister of agriculture and rural development Le Quoc Doanh said. The Cuu Long Delta region has had a total annual output of 3.18 million tonnes of fruits for local consumption and export, the Ministry reported. Key fruit products include dragon fruit, mango, rambutan, durian, star apple, pomelo, longan, orange and tangerine mainly from Tien Giang, Vinh Long, Soc Trang, Ben Tre, Dong Thap and Hau Giang provinces. Since 2000, farmers in the region have applied modern science and technology to produce fruit products, increase output, improve quality and establish regions specialising in fruit production. But Viet Nam's fruit products still face many technical barriers in export markets, an official of MARD's Plant Protection Department said. Hoang Trung, head of the department, said countries have different climates resulting in different plant structures. So a generalized plant quarantine protocol is not possible. There are also technical barriers to import safe vegetable and fruit products and to protect local production, Trung said. Reducing tariffs during international integration increased technical barriers for quarantine and food safety. It also takes an average of 3-4 years, or up to 10 years, for each kind of fruit to be approved for an import licence to just one country, Trung said. The quality and safety of fresh fruit remain challenges for vegetable and fruit exporting, especially in strict markets such as the US, Japan, Australia and New Zealand. Production of vegetable and fruit products for export must meet VietGAP and Global GAP standards. Quality control is vital to increase fruit and vegetable exports, Trung said. Vegetable and fruit producers should also follow import regulations closely to create favourable conditions for local vegetable and fruit products to enter export markets.  Ministry eyes reducing price fixing The Ministry of Finance proposed the removal of price stabilisation funds for electricity, paddy and rice in a draft decree. Currently, the Government uses price stabilisation funds to achieve domestic price stabilisation for the products. It is used to avoid sudden increases in prices of the products to control inflation and ensure macro-economy stability. In past years, the funds have served an important role in fixing the prices of the products, especially petroleum, during sensitive periods. However, according to the finance ministry, the funds are now unnecessary. Under the draft decree aimed to supplement some regulations of the Price Law, the ministry said that stablising power prices is not suitable as the country pilots a competitive power retail market next year. There are also still some costs that haven't been calculated in the retail power price. The finance ministry quoted statistics from the Ministry of Industry and Trade as an example, saying that a loss of more than VND1.682 trillion (US$75 billion) in the power industry due to foreign exchange rates by the end of 2014 hadn't been calculated in the retail power price. As for paddy and rice, the finance ministry said the funds weren't necessary as the products' prices are currently under a market mechanism and are relatively stable. The Government also implements programmes on buying paddy and rice for stockpile every year to stabilise the rice market, the ministry said.  Vinamilk, Royal DSM strengthen cooperation on nutrition Viet Nam Dairy Products Joint Stock Company (Vinamilk) and Royal DSM signed a co-operation deal on applying international nutrition standards into Vinamilk milk powder. The agreement was signed in Singapore on September 13. Vinamilk has co-operated with DSM for years in applying nutrition standards in its products including powder milk, fresh milk and other products. Speaking at the signing ceremony, Vinamilk Managing Director Pham Minh Tien said the firm would continue to work with DSM and with other world leading nutrition groups to provide customers with international standard products, but at a price 60-70 per cent below other imported products in the Vietnamese market. According to a report from the National Nutrition Institute, about 25 per cent of Vietnamese children under five years old have stunted growth due to malnutrition. The lack of iron, zinc, Vitamin A and D is very common in Viet Nam. The report also says Vietnamese people are about 10 centimetres shorter than the global average. Tien blamed malnutrition on Vietnamese people's milk drinking habits, with consumption quite low at about 15 litres of milk per year on average, equal to one-second of Thailand and one-third of Singapore. Vice President of DSM Swiss Pieter Nouber, who is in charge of the Asia Pacific region, committed to applying international standards with the latest nutrients to Vinamilk products. DSM would support Vinamilk in researching and developing milk products, conducting clinical tests and helping the firm disseminate the importance of nutrition. Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets. VMA to supply macadamia seedlings for some localities The Vietnam Macadamia Association (VMA) will provide some key localities with macadamia free seedlings this year and help them build processing plants as part of a scheme to expand the farming of the nut tree in Vietnam. Nguyen Lan Hung, vice chairman of VMA, mentioned the scheme in an email sent to the Daily last week after the Prime Minister ordered a review of the master zoning plan for the macadamia sector in Vietnam following a controversy over measures to promote the planting of macadamia trees. Hung said some provinces have succeeded in macadamia farming. Therefore, macadamia can be a choice for farmers to switch to other crops in the Central Highlands, the northwest, and other regions. Earlier, when cocoa trees were planted in Vietnam, foreign and domestic companies collaborated with the provincial departments of agriculture and rural development to provide cocoa seedlings for farmers. Initially, the area under cocoa farming increased sharply but farmers later cut it as the price of cocoa was unstable and lower than that of coffee, green grapefruit, and coconut. That is why the Cultivation Department under the Ministry of Agriculture and Rural Development is cautious about expanding the area under macadamia farming when receiving a request for cooperation in growing the tree across the country. Aside from processing companies, Lien Viet Post Bank and Him Lam Joint Stock Co have pledged VND11 trillion (US$493.5 million) for macadamia farming in the Central Highlands province of Lam Dong. The bank opened its branch in the province’s Dalat City to help local farmers gain access to its preferential credit for macadamia farming. The Government will make a final decision on macadamia sector development in the country after the review of the master zoning plan for macadamia planting is complete. Foreign contractors proposed for Thu Thiem exhibition center The HCMC government is looking for approval from the Prime Minister to select foreign investors to build a convention and exhibition complex in Thu Thiem New Urban Area in District 2. According to the office of the HCMC government, the city has proposed picking a consortium comprising Intertrade Singapore Pte Co Ltd and Saigon Bund Capital Partners-BVI Co as project contractors in line with the Bidding Law. The 12-hectare exhibition center by the Saigon River is expected to be built based on the lotus petal model. The highlights of the project include a specially-designed dome which can be seen from the western bank of the river and from Thu Thiem 1 and 2 bridges. The work will create an architectural landmark in the downtown area of Thu Thiem. In the future, the center would be able to host international economic and political events such as APEC, ASEAN Forum, the Pacific Asia Travel Association (PATA) conferences and major events regarding the Trans-Pacific Partnership (TPP) agreement, the ASEAN Economic Community (AEC) and the bilateral agreements between Vietnam and the European Union (EU). Finding venues for large-scale conferences and exhibitions in HCMC and Hanoi has become harder, and the lack of proper facilities for such events in this economic center of Vietnam has become a chronic problem. As a result, many organizers have to go to stadiums and parks to hold events. BT Tee, deputy chief of Singapore Exhibition Services’ Vietnam representative office, said HCMC has only two exhibition centers which can attract foreign enterprises: Tan Binh Exhibition and Convention Center in Tan Binh District and the Saigon Exhibition and Convention Center (SECC) in District 7. However, the former suspended operation early this year while SECC is overloaded. Exhibitors at large-scale exhibitions such as Vietbuild, and MTA engineering and machinery and auto shows have to set up booths outside SECC. Tee said international exhibition centers in Singapore and Thailand usually cover over 100,000 square meters and 200,000 square meters, respectively, while SECC, the largest in the city, covers around 20,000 square meters. Some regular exhibitors said as HCMC has posted rapid economic and industrial growth, demand to introduce products and look for investment opportunities is growing strongly. Therefore, the city must build large international-standard facilities to lure overseas firms to participate in its events. Earlier in Hanoi, the Prime Minister told relevant departments to construct a national exhibition center at Co Loa Commune in Dong Anh District. As planned, the center would be built at Co Loa and Me Tri Commune in Nam Tu Liem District. The Prime Minister allowed the center in Co Loa to enhance the efficiency of land use and match the newly-built traffic system of the capital. The project is required to meet demand for domestic and international events and be in accordance with Hanoi’s master development plan. The national exhibition center will be funded by capital from the exploitation of land at 148 Giang Vo Street in Ba Dinh District and Me Tri, and other sources. Ministry seeks stringent gold import rule The Ministry of Science and Technology has proposed the Government amend a decree that regulates the quality of locally produced and imported gold jewelry. Currently, authorities pay attention to gold jewelry trading but not the domestic production and import of the product. The proposal is made against the backdrop of increasing violations in gold trading. According to a report, 25% of trading units in the country have been found to infringe measurement and quality standards. Last year, the departments of science and technology in 51 provinces and cities launched 1,718 investigations into gold stores and detected such violations at 423 of them. Many gold jewelry and fine art products do not meet measurement and quality standards. Investigators confiscated more than 4,000 samples, took over 2,800 away from circulation and imposed fines of nearly VND200 million on violators. In the year to mid-August, science and technology departments had investigated 580 trading units and found 183 violators who were forced to pay nearly VND1.6 billion in fines. The Ministry of Science and Technology said in its report sent the Government said it is hard to control the quality of gold jewelry and fine art products as businesses and individuals can import the items to Vietnam after paying taxes. Quality control over gold jewelry made in Vietnam is a tough task too, the ministry said. Therefore, the ministry proposed the Government revise Decree No. 24/2012 /ND-CP to support the first to manage the local gold market. Maseco to list shares in Ha Noi Phu Nhuan Service JSC (Maseco) is completing formalities to list its stock on the northern bourse, the Ha Noi stock exchange said. Based in HCM City, Maseco produces and exports goods for the electronics and agricultural sectors. It manufactures and trades electronic products, such as DVD players, karaoke systems and amplifiers for popular local brand Ariang Karaoke. The firm also produces coffee and pepper, in addition to being involved in the restaurant and real estate industries. With charter capital of VND225 billion (over US$10 million), the firm will list 22.5 million shares in the market. In the first half of 2016, Maseco reached a sale of nearly VND1.3 trillion, an increase of three per cent over the same term last year. This year, Maseco has targeted a sale of VND1.6 trillion and a profit of VND60 billion and plans to pay a dividend of 15 per cent.  HRT shares traded on UpCom today More than 80 million shares of the Ha Noi Railway Transport Joint Stock Company (coded HRT) are being traded on the Unlisted Public Company Market (UpCom) today. The total value of the shares is more than VND800 billion (US$35.7 million). HRT provides railway transport services, owning more than 600 train boxcars and operating on routes such as Ha Noi-Hai Phong, Ha Noi-Dong Dang, Ha Noi-Lao Cai and North-South route. In 2015, the company earned revenue of VND3.91 trillion, a 33.19 per cent increase compared with the previous year, and pre-tax profit of VND2.8 billion. The company has set revenue targets of VND3.13 trillion and VND3.37 trillion for 2016 and 2017, respectively. In the first six months of this year, HRT earned revenue of more than VND1 trillion and profit of VND700 million. HRT was traded on UpCom nine months after the company completed its initial public offering in December 2015. HRT, together with Sai Gon Railway Transport, which is also expected to be listed on UpCom soon, are the two largest members of the Viet Nam Railway Corporation. Members of the Viet Nam Railway Corporation are gearing up for privatization, state divestment and getting listed on exchanges to improve corporate governance, competitiveness and transparency in managing state assets of the giant railway service operator, which is striving to avoid stagnation. During the past two months, shares of four other railway companies were traded on UpCom -- Yen Lao Railway, Binh Tri Thien Railway, Nghia Binh Railway and Railway Transport and Trade Company. Viet Nam Railway expects to maintain average growth rate of 8 per cent per year or higher under its 2016-20 plan.  CII to raise foreign ownership limit to 70% HCM City Infrastructure Investment JSC (CII) has removed the property development unit from the company's portfolio to raise the limit of foreign ownership to 70 per cent. The decision was made after the firm transferred all of its responsibilities and obligations concerning the BT Thu Thiem project to the North Thu Thiem Co Ltd.  "The transfer helps the company withdraw from the real estate sector and allows foreign investors to increase their stake in the company from the current 49 per cent," CII said in a statement on Tuesday. The company's management board on the same day also decided to do away with the real estate and water business units. The water business unit will be handed over to the Sai Gon Water JSC. The board of managers gave its approval to the company to increase the limit of foreign ownership to 70 per cent from the existing 49 per cent and requested the board of directors to complete the necessary documents at the earliest.  The company has changed its profile in the Business Registration, registered with the State Securities Commission and related agencies for the increase of foreign ownership, and published the news on the firm's website. The company, listed as CII on the HCM Stock Exchange (HOSE), early this month sold more than 1.9 million shares of the CII Bridges and Roads Investment JSC, which is listed as LGC on the HOSE.  CII has also been given the nod to convert bonds worth VND528.7 billion of the Metro Pacific Tollways Corporation to 29.37 million shares of LGC. After these two deals, CII will reduce its ownership in LGC to 49 per cent to comply with the firm's 2016 shareholders meeting resolution.  The company will earn VND424 billion from the bond conversion, CII said, adding that the income will be included in the company's financial balance sheet. In the first half of the year, CII recorded revenue of VND521 billion and net profit of VND165 billion, a decrease of 32 per cent and 69 per cent, respectively, over a year. Vietnam’s apparel sector celebrated Vietnam has supplied more than four percent of the world’s total apparel production for consumption this year.  Speaking at a ceremony to mark the 20th founding anniversary of the trade union of the textile and garment sector in Hanoi on September 14, Chairman of the union Nguyen Tung Van lauded the union’s contribution to the sector’s development. He said annual average income of a worker in the sector hit more than 50 million VND (2,250 USD) and they are covered by social, health and unemployment insurance. Director General of Vietnam National Textile and Garment Group Le Tien Truong said Vietnam is among the world’s five biggest garment and textile exporters. The sector contributes about 15 percent of the country’s total export value and creates more than 2.5 million jobs. During the global economic crisis between 2008 and 2014, Vietnam was the only nation that maintained double digit growth in the sector, showing the sector’s competitiveness. The sector has also attracted more foreign investment, up from 850 million USD in 1995 to 27.3 billion USD in 2015.  Vietnam is among the world’s largest textile and garment exporters, behind only China, India, Bangladesh and the European Union. Garment and textile exports in the first half of this year reached 12.6 billion USD, a year on year increase of 4.72 percent and accounting for 41 percent of the sector’s target for 2016. Brackish water shrimp farming under spotlight The development direction of brackish water shrimp farming and processing was discussed at a conference held in the southern province of Bac Lieu on September 14.  Speaking at the conference, Minister of Agriculture and Rural Development Nguyen Xuan Cuong emphasised Vietnam in general and the Mekong Delta in particular has great potential and advantages for aquaculture, with the farming of shrimp in brackish water being an effective production model having little impacts on the environment.  He urged relevant sectors and enterprises to turn shrimp into a national strategic product and build a shrimp industry.  Nhu Van Can, Head of the Aquaculture Department of the Directorate of Fisheries under the Ministry of Agriculture and Rural Development, said as of early September, the country had 664,000 hectares under brackish water shrimp farming.  By the end of this year, the area will be increased to 683,000 hectares, Can added.  He warned of problems in shrimp farming and export, particularly the poor infrastructure of shrimp ponds, weak control of fry quality and the high production cost.  Nhu Van Tiep, Head of the National Agro-Forestry-Fisheries Quality Assurance Department, said injecting substance into shrimps and the residue of antibiotics still exist, damaging the reputation of Vietnamese shrimp products in the world market.  Minister Cuong urged ministries and localities to push the application of scientific and technological advances to shrimp farming and process. He called for more investment in aquacultural infrastructure and restructuring of aquaculture in the direction of building large-scale ponds and expanding shrimp raising in combination with rice farming.  The minister also instructed intensifying trade promotion activities to expand the market for shrimp export.  Vietnam ships shrimp to 75 markets. 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 total shrimp export turnover in Vietnam.  In the first six months of this year, shrimp exports brought in 1.4 billion USD, up nearly 5 percent against the same period last year. HCMC Techmart Online upgraded The Ho Chi Minh City Department of Science and Technology said the city website http://techmart.cesti.gov.vn was opened to the public with many improvements in information technology field.  The Techmart Online under HCMC Science & Technology Center has been set up and put into service since 2002, after 14 years, the Techmart Online has been very effective and created in seeking new technologies and innovations to local enterprises. In order to speed up its operation, the center has invested and upgraded its webiste, aiming to create exchange environment in seeking partners via internet. Accordingly, it has three functions such as exchanging high tech; consulting information technology and seeking partners. Here, people can search information about Techmart 2016 in Hanoi which will take place from September 28 to October 10. Hai Phong investment conference on horizon The Hai Phong Investment Promotion Conference, with theme “Hai Phong - a Destination for Investors”, will be held on September 19 and bring government leaders and nearly 500 enterprise delegates together. The city will use the conference to explain its development strategy and its commitment to improving the investment environment. The conference will provide a platform for central agencies, international organizations, and domestic and foreign enterprises to meet and discuss investing in the northern port city. The Hai Phong People’s Committee will announce the establishment of the Trade, Tourism, and Investment Promotion Center, connecting the city’s administration and enterprises. The conference will provide enterprises with information on the city relating to trade, tourism, and its investment environment, promote administrative reform in investment and business activities, implement supportive solutions, and resolve problems facing enterprises. Within the framework of the conference, the People’s Committee will present investment certificates to LG Innotek, specializing in electronic components and micro camera modules with total investment of $550 million at the Trang Due Industrial Park, and to the Flat Group from Hong Kong, whose solar glass production project at the Dinh Vu Industrial Zone has investment of $200 million. The conference will also witness a signing ceremony for a cooperative memorandum between Vingroup and the Saigon Newport Corporation over the construction, investment and terminals business at the Hai Phong International Gateway Port. Hai Phong leads in FDI attraction in Vietnam. In the first eight months of this year it attracted approximately $2.02 billion, accounting for 14 per cent of the country’s total, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment. During the period the port city reported 30 newly-licensed projects and 21 existing projects registering to add capital, most notably the LG Display Hai Phong project, licensed on April 15 with registered capital of $1.5 billion. In the Provincial Competitiveness Index (PCI) 2015, Hai Phong ranked 28th among Vietnam’s 63 cities and provinces. Among the positive issues noted were transparency, infrastructure, and workforce quality. According to a recent report from real estate consultants CBRE, Hai Phong is expected to become a gateway connecting Vietnam with the world given its major advantages and potential. Ho Chi Minh City and Hai Phong have the two most significant seaports in Vietnam. “Although throughput capacity at Ho Chi Minh City’s port was only equivalent to a quarter of Hong Kong’s and one-sixth of Singapore’s in 2014, and Hai Phong’s capacity is about 50 per cent of that of Ho Chi Minh City, annual throughput for the ports is growing,” CBRE’s analysts wrote. “In order to become a local hub in the near future and a regional hub in the long run, it is critical that Hai Phong address the issues of administrative procedures and transparency as well as pay attention to improving labor quality as growing FDI is poured into the country as well as the city and that infrastructure is developed.” Eurowindow subsidiary to continue Yen So Park The Hanoi People’s Committee has licensed the Vietnam Investment Joint Stock Company T&M (TMV) to build Area B of Yen So Park in the capital’s Hoang Mai district. TMV’s two major shareholders are T&M Trans Company and Eurowindow Holding JSC. The project covers 322.57 ha, including two Areas, A and B, and was licensed in December 2007. Area A includes a cultural park and a green park on a total area of 31.6 ha and functional urban areas and greenery on 91.2 ha. Area B covers 200 ha. The Yen So Park project previously belonged to Vietnam Gamuda Ltd (VNL). Due to legal changes and site compensation costs increasing sharply, from $20 million for Areas A and B to $150 million for only Area B, VNL decided not to continue with the project.  The Head of Project Development at Eurowindow Holding said the project has only recently been assigned to the company so had no comment to make. Eurowindow Holding was established on August 29, 2002. Its main products are windows, doors, UPV bulkheads, and aluminum and glass products meeting European standards. In recent years it has moved into real estate. Before Yen So Park it built projects such as the Eurowindow Multicomplex in Cau Giay district, Hanoi, the Nghia Do New Urban Area in Tu Liem district, Hanoi, the No. 2 - Ton That Tung project in Dong Da district, Hanoi, and the Melinh Plaza commercial center chain. The largest real estate project it has been involved in is the Mövenpick Cam Ranh Resort in south-central Khanh Hoa province. The five-star project has 121 villas, 250 international-standard rooms, and 96 condotel apartments, as well as entertainment services such as a Swiss village, a golf course, tennis courts, a beach club, and restaurants. In developing Area B of Yen So Park, Eurowindow Holding has staked out a greater market share in Vietnam’s competitive real estate market. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR