BUSINESS IN BRIEF 19/9 Tourism activities in 2017 should be prepared carefully Deputy Chairman of HCMC People’s Committee Tran Vinh Tuyet chaired meeting to review the International Tourism Exhibition 2016 (ITE 2016) and the Business Partner City Conference 2016 (BPC 2016). Ms. Nguyen Thi Anh Hoa, deputy director of HCMC Department of Tourism said the ITE 2016 attracted 32 countries and territories across over the world, and welcomed over 28,000 visitors. In order to prepare for the ITE 2017, Mr. Tran Vinh Tuyen asked the department to experience good points and difficulties from ITE 2016 then send the report to the committee. Besides, he required the department to summarize the city’s tourism resources. The preparations for ITE 2017 must be carried out soon, starting at the beginning of 2017. In addition, the department must organize tourism activities in line with sport facts in 2017. Only a few out of 50 businesses access low interest loans The Department of Industry and Trade of Ho Chi Minh City said that only three out of 50 registrants have been able to access loans under the city’s investment stimulation promotion program.  The program, implemented ten months ago by the city People’s Committee, aims to give businesses incentives in infrastructures and capital to develop industrial production especially support industry. Of the 50 firms registering to get VND300 billion (US$13.45 million) in loans from the program, three have been successful. Previously, the city People’s Committee had carried out many programs to help businesses solve difficulties. However, rare of them have received credit assistances because of complicated procedures. The most difficulty of businesses especially small and medium ones in accessing low interest loans is collateral because they have given their properties as security to get loans but still faced with difficulties and been insolvent. Hence, many companies have suggested the city to flexibly apply legal documents and transparently build policies to give them capital assistances. For instance the city can act as a financial guarantee for those without collaterals to get loans and build a strong financial fund to assist businesses. At present, the city has a science and technology fund, investment stimulation program and credit guarantee fund for businesses. Those in need of loans can send the Department of Industry and Trade documents, which then will be submitted to the city People’s Committee for consideration and approval. Construction starts on 45-storey tower in Hai Phong Prime Minister Nguyen Xuan Phuc attended the groundbreaking ceremony of a 45-floor tower in Vinhomes Riva City urban area in the northern port city of Hai Phong on September 18. Covering an area of 30,000 sq.m, the project is invested by the Vingroup and designed by the Humphrey & Partners Architects of the US. It is scheduled to be completed by the end of 2017. With the height of 148m, the tower will be the highest infrastructure facility in the northern coastal region. It will include a shopping centre in the first and second floors, and part of the third storey. A five-star hotel with 300 rooms will cover the area of the fourth-45 th floor. Gym, fitness and spa centres, and swimming pools will be also included in the building. As a highlight of the urban area, the tower will serve as a luxury tourism, shopping and entertainment centre in Hai Phong city. The Vinhomes Riva City is expected to become an important economic centre promoting socio-economic development of the city and adjacent areas. Korean firm plans US$1.5-billion racecourse complex Vinh Phuc G.O.Max I&D is seeking to build a US$1.5-billion racecourse, golf course and luxury villa complex in Vinh Phuc. The Republic of Korea (RoK)’s G.O.Max I&D has asked authorities in Vietnam’s Vinh Phuc Province for the green-light to build a US$1.5-billion racecourse, golf course and luxury villa complex. The racecourse will cover 200 hectares (494 acres) and racing will take place three times per week, Vietnam’s Dau Tu Online reported on September 17, quoting Jung Young Jin, G.O.Max I&D’s manager of strategy and management. The developer also plans to establish betting shops in 54 provinces and cities across Vietnam and operate an online betting site. The Korean company hopes to attract 85% of the project’s investment from partners and investors. Construction of the complex is expected to take 36 months if permission is granted by the local government. G.O.Max I&D aims to make US$972 million in annual revenue and contribute US$100 million per year to the state budget during the first five years of operations. The Korean firm previously submitted a proposal to build a racecourse complex worth US$570 million in 2005. Although the project received support from local authorities at the time, it was not able to move forward because Vietnam had not established regulations to manage the betting industry. At that time, the Ministry of Finance told the company that the local government was working on a directive regarding betting on sports, and the project would not be considered until the regulation was introduced. G.O.Max I&D will continue to wait for the directive, which has not been issued yet, and will be ready to kick off the project at any time, Jung said. It remains unclear when the regulation will be considered and passed by legislators. It has not been included for consideration at the ongoing session of the National Assembly's Standing Committee. The committee has the mandate to finalize a list of bills to be considered at the upcoming session of the National Assembly, Vietnam's legislature. In July, Vietnam’s Dai Nam Joint Stock Company said it plans to invest US$100 million on a racecourse complex in the Dai Nam Tourism Park in the southern province of Binh Duong. Hanoi Tourist Corporation and Korea’s Global Consultant Network., LTD. have recently signed an investment agreement for a US$500-million racecourse in Hanoi and are awaiting the green light from authorities, according to the Hanoi People's Committee newspaper. The Phu Tho racecourse, which opened in 1932 in Ho Chi Minh City as the country's first and only horse racetrack, closed in 2011. Vietnam’s top mobile retailer kicked out of Thai-purchased shopping malls The Gioi Di Dong has had to close 22 stores at Big C shopping malls following the supermarket chain's recent acquisition by a Thai firm. The Gioi Di Dong (Mobile World Group-MWG), Vietnam's biggest retailer of mobile devices, has had to close 22 stores at Big C shopping malls following the supermarket chain's recent acquisition by a Thai firm. As these stores accounts for just a small proportion of MWG’s revenue, the change “did not cause any significant impact on revenue growth of MWG in August,” MWG said in a January-August business report sent to shareholders on September 16. Central Group announced last April that it had bought Big C’s operations in Vietnam from France's Casino Group for EUR1 billion (US$1.14 billion). In early 2015, Power Buy, a unit of Central Group’s Central Retail Corporation, purchased a 49% of stake in Nguyen Kim electronics shopping center operator, a competitor of MWG in Vietnam. MWG had 1,017 stores across Vietnam as of the end of August. It posted revenue of VND27.028 trillion (US$1.18 billion) in the first eight months, jumping 78% on-year. Net profit reached VND1.12 trillion, 74% higher than the same period last year, the company report showed. The Vietnam Association of Seafood Exporters and Producers also complained in May that Big C, following the acquisition deal with Central Group, has asked for higher discounts as part of new contracts for 2016. The new rates would increase by up to five percent to about 17% to 20%, and even 25% for some products. Vietnam firm to sell 20,000ha rubber project to China if debt bailout plan fails A Vietnamese multi-sector conglomerate plagued by financial woes over its loss-making agricultural arm has announced that it may sell nearly half of its massive rubber plantation to Chinese partners in the event its proposed debt restructuring plan falls though. Hoang Anh Gia Lai Group has received support from the State Bank of Vietnam on its proposed bail out solutions, but the plan still needs the final approval from the government. “If our debt restructuring plan is rejected, we may have to sell 20,000 hectares from our 40,000 hectare rubber plantation in Laos,” Hoang Anh Gia Lai chairman Doan Nguyen Duc admitted. Speaking to Tuoi Tre (Youth) newspaper after the company’s annual shareholder meeting on September 15, Duc said that some Chinese partners have shown interest in buying selected areas of the rubber plantation. The rubber plantation in Laos is operated by Hoang Anh Gia Lai agricultural arm, Agrico, which is also the main cause of the company’s massive debts. As of the end of 2015, Hoang Anh Gia Lai owed more than VND31 trillion (US$1.38 billion) in debt, with short- and long-term loans accounting for VND27.09 trillion (US$1.21 billion). Debts accrued by Agrico alone made up more than 50% of the total. Hoang Anh Gia Lai is due to repay VND8.29 trillion (US$370 million) by the end of this year. In May, the conglomerate announced a plan to restructure its debt, including extending the maturity for part of the debt. “We did not ask to have the interest on our debt exempted or reduced so there will be no loss for the state budget,” Duc asserted with Tuoi Tre. “We are still waiting to see if the plan is approved or rejected to decide whether we should sell part of our rubber project in Laos.” The chairman also admitted that he is in talks to sell his sugar plant in Laos, even though Hoang Anh Gia Lai has plans to focus on agriculture and scale down on other sectors. The firm currently invests in real estate, rubber, sugarcane,cattle and football – running a top-flight football club of the same name and operating a training academy backed by English powerhouse football club Arsenal. HCM City to spend US$80 mln to tackle congestion, inundation at airport Ho Chi Minh City authorities have proposed more than VND1.8 trillion (US$80.6 million) in improvement projects aimed at dealing with inundation at the city’s major airport and congestion and its entrance. The municipal Department of Transport has recommended five projects to help alleviate traffic jams and flooding at Tan Son Nhat International Airport. According to transport officials, Truong Son Street in Tan Binh District is currently the primary access route for passengers to enter and exit the aerodrome. The road is also part of the routes used by commuters from Binh Thanh, Go Vap, and Thu Duc Districts, and the neighboring Binh Duong Province, creating heavy traffic pressure on the area. To relieve the large traffic volume, a Y-shaped steel flyover has been planned for construction, with investment capital estimated at VND771 billion (US$34.5 million). About 99 meters long and 11.5 meters wide, the two branches of the structure will connect the Truong Son Street with the domestic and international terminals of the airport. A road tunnel is also expected to be built under Truong Son Street, linking the exit of the aerodrome domestic terminal with Hong Ha Street. Construction of another Y-shaped flyover has also been proposed to connect Hoang Minh Giam Street with Nguyen Thai Son and Nguyen Kiem roads, the transport department said, adding that about VND504 billion (US$22.5 million) will be expensed for the work. Renovation and expansion on certain sections of Hoang Minh Giam and Hoang Hoa Tham Street are included in the other three projects. The Department of Transport also suggested that the municipal People’s Committee establish special mechanisms to expedite the execution of the projects. Inundation inside the airfields has posed serious threats to flight safety, evidenced by many delayed and canceled journeys as the result of the recent downpours on August 26 and September 11. The flooding was brought about by extreme rainfall and exacerbated by the encroachment of the airport’s main sewer system, relevant agencies assessed. Speaking to Tuoi Tre (Youth) newspaper, an official from the Southern Airports Authority stated that the venue’s drainage system was divided into three sections. One of the divisions could not be utilized to its full potential due to the encroachment, causing inundation at the airport apron. In terms of temporary resolution, dredging isregularly carried out while the capacity of water pumps inside the airport has been upgraded. Construction of a reservoir, which would help regulate flood water at the facility, is also being considered as a long term solution. To relieve flood water in the outskirt areas, the dredging and building of new sewer entrances has been conducted. Renovation to a nearby canal is also anticipated to be performed between 2017 and 19, which is hoped to assist the airport in the control of flood water. Dot Property opens HCMC rep office Asia’s rapidly-growing property portal Dot Property has announced it will open its first representative office in Ho Chi Minh City in mid-September after recognizing the outstanding development in Vietnam’s real estate market during its nine months of operations. Dot Property Vietnam is the most recent addition to the growing Dot Property network. It sees huge potential in Vietnam given the readiness of people to go online when looking for the perfect property. Vietnam’s growing population of young professionals will be a source of future demand for residential properties, with most searches conducted online. “There is a great opportunity for Dot Property to further establish our Vietnam website as the preferred choice for consumers when it comes to buying or renting property or looking for market intelligence,” said Mr. Alva Horgan, Managing Director for International Markets at Dot Property. “Since arriving in the market Dot Property Vietnam has already cooperated with some of the country’s leading property developers, real estate agents and other companies, and that number continues to grow on a daily basis.” Two of the major drivers of Dot Property’s growth are the useful resources it provides to enable people to find their next home with ease and the user-friendly features of its website, including free and easy uploading of property listings. Real estate agents and developers can showcase their listings and generate enquiries while property seekers can search and filter for a comprehensive selection of available properties. Dot Property Vietnam’s listings include houses, apartments, villas, land, and commercial space for sale and for lease as well as foreclosures. It has appointed Mr. Kristian Brennan as Country Manager, who will oversee all aspects of Dot Property Vietnam’s activities, including the day-to-day operations and promoting the company’s expansion within the online portal market, both among consumers and advertisers. “With a positive outlook for the real estate industry in Vietnam, we are well positioned to be the property portal of choice,” he said. “Sustained economic performance will mean more jobs, resulting in more people with spending power, especially among the young working class.” Established in 2013 in Singapore, Dot Property is a digital media company and Asia’s leading connected property portal group, operating nine portals throughout the region, in Thailand, the Philippines, Cambodia, Myanmar, Laos, Malaysia, Indonesia, Singapore and Vietnam, where millions of local and international property seekers are actively seeking their next home to buy or lease. The websites have attracted increasing numbers of visitors - not only locally but also from around the region and the world. Each month it generates more than 2.6 million page views, has 825,000 unique visits, and has an ever-growing number of property listings that now stands at more than 560,000. Vissan imports breeding pigs from US The Vissan Company has announced the receipt of 220 purebred breeding pigs from the US livestock exporter Clayton Agri-Marketing on September 15. “This is the third shipment of Landrace, Yorkshire GGP and Duroc stock received from the US exporter and they come with the highest health status,” said Mr. Van Duc Muoi, CEO of Vissan. The herd were selected directly from Clayton Agri-Marketing’s breeding farms. The average weight is 50 to 55 kilos, costing $2,250 per male and $1,950 per female. After a quarantine period they will be transported to their final destination, a farm in south-central Binh Thuan province, where they will be cared for and bred under the guidance of experts. In order to prepare for the intake the company has fully prepared feed supplies and all breeding facilities. With this import of 220 purebred pigs, Vissan will produce the next generation of breeding pigs before processing commercial pork, according to Mr. Luu Ngoc Giao, Director of Vissan’s factory farming. It is expected that the company will produce commercial pork from these purebred pigs after ten months. “This is a resource development strategy that will contribute to developing and improving the quality and productivity of herds and contribute to completing the company’s 3F origin traceability program (Feed - Farm - Food),” he added. “The sales price of commercial pork from purebred pigs is expected to be lower than the current price of Vissan’s pork.” These are the first breeding pigs imported from the US by Vissan this year and follow two previous shipments from Clayton Agri-Marketing. Early this year it announced it would sell fresh pork meeting Vietnam Good Agricultural Practices (VietGap) standards from April 15. Its fresh meat is available at 146 points of sale in wet markets in Ho Chi Minh City and 309 supermarkets in nearby cities and provinces. Vissan, founded in 1970, is among the country’s leading producers and exporters of fresh meat, poultry and processed food. Following an initial public offering last March the State still holds a 65 per cent stake as its major shareholder. Japanese wood processor heads to Binh Dinh Japan’s Marubeni Lumber Company has recently leased 10 ha of land in Zone A of the Nhon Hoi Economic Zone in south-central Binh Dinh province to build a splice wood panel plant. The lease is for 50 years. Mr. Nguyen Ngoc Toan, Deputy Director of the Binh Dinh Economic Zone Administration at the provincial Department of Planning and Investment (DPI), told VET that “the Japanese company has completed all procedures and will submit documents for investment certification before the end of the year.” The plant’s total investment capital is to be $5 million in the first phase. “Binh Dinh has favorable conditions for the company’s investment needs,” said Mr. Takimoto Jo, Head Representative of Marubeni Lumber Vietnam, and it hopes to receive the province’s support into the future. According to Mr. Ho Quoc Dung, Chairman of the Binh Dinh Provincial People’s Committee, the lease is good news for Nhon Hoi and an opportunity for the province to attract more Japanese enterprises. He also pledged that the province would create favorable conditions for the project to be built and put into operation quickly. There were five Japanese enterprises investing in local industrial zones as at the end of August, with total investment capital of nearly $30 million, according to the Binh Dinh Economic Zone Administration. Japanese companies are operating efficiently and contributing significantly to the provincial budget and creating thousands of jobs. South Korea’s CJ Group last month conducted a fact-finding tour and sought investment opportunities in Binh Dinh. The Group has expressed an interest in investing in building an animal feed processing plant, a pig breeding farm, and a seafood processing plant. The animal feed processing plant would be located at the Nhon Hoa Industrial Zone. CJ also proposed that provincial leaders arrange for the lease of 120 ha of land to build the pig breeding farm and requested information on the province’s investment policies. Binh Dinh has an area of 6,039 sq km and a population of 1.51 million people. Registered FDI stood at $1.7 billion in 59 projects as at the end of 2015, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI). The Nhon Hoi Economic Zone is located on Phuong Mai peninsula with an area of about 12,000 ha. Functional areas include industrial parks, export processing zones, areas for services, tourism, accommodation and entertainment, residential and urban areas, and administrative areas. It has a favorable investment environment and advantages in natural conditions and geographic location. Business forum highlights Vietnam-Russia cooperation prospects A business forum was held in Moscow on September 18 to promote cooperation between Vietnam and Russia when the Vietnam – Eurasian Economic Union (EAEU) free trade agreement comes into effect on October 5 this year. Addressing the event, Deputy Prime Minister Trinh Dinh Dung detailed Vietnam’s external affairs, economics, defence, security, culture and society, adding that one of the country’s most significant accomplishments was becoming a middle-income country from an under developed one. He attributed the achievements to contributions from overseas Vietnamese, including those in Russia , saying difficulties still lie ahead requiring efforts from people at home and abroad. The free trade pact between Vietnam and the EAEU is expected to boost bilateral trade, investment and tourism. To fully benefit from the deal, the Vietnamese community in Russia should use more legal and transparent business models and increase the quality of products according to international standards, he said. Vietnamese Ambassador to Russia Nguyen Thanh Son vowed to work with the Vietnam Business Association in Russia to realise the Party and State’s policy of global integration and enhance the two countries’ relations. Deputy PM Dung is paying a working visit to Russia from September 17-22 to attend the 19th session of the Vietnam-Russia Intergovernmental Committee for Economic-Commercial and Scientific-Technological Cooperation. Turbine of Duyen Hai 3 thermal power plant joins national grid The 622.5 MW capacity turbine No.1 of Duyen Hai 3 thermal power plant, based in the Mekong Delta province of Tra Vinh, has joined the national grid.  Operating on a trial basis initially, the turbine is powered by heavy fuel oil and will generate a maximum of 150 MW. It will be fully operational by December, said Power Generation Corporation 1 of the Electricity of Vietnam Group.  Turbine No. 2 will be put into operation in early 2017.  Duyen Hai 3 thermal power plant, part of Duyen Hai Power Complex, comprises two turbines with a combined capacity of 1,245 MW. It is expected to provide some 7.8 billion kWh of electricity every year, equivalent to about 9 percent of total electricity output in the south of Vietnam in 2016.  The factory is equipped with modern technology that ensures environmental protection. It will help increase power supply to the Mekong Delta and reduce power transmission from north to south.  Duyen Hai Power Complex consists of three coal-fired plants with a total capacity of 4,308 MW. It is based in Duyen Hai town of Tra Vinh province.  Duyen Hai 1 is operating while Duyen Hai 2 and the extension of Duyen Hai 3 are under construction. RoK group expands food business in Vietnam The Republic of Korea’s CJ Group and the Saigon Trading Group (Satra) have agreed to expand their partnership in the food business in Vietnam, according to Sai Gon Giai Phong newspaper. CJ CheilJedang, a food subsidiary of CJ Group, will work with Satra to develop new products. The two sides will also produce beverages in Vietnam. The RoK company pledged to support Satra to upgrade equipment in the retail system and boost marketing activities via skills training courses as well as promotion programmes and product introduction events. CJ CheilJedang will help Satra establish a selling zone in its retail network for products imported from the RoK. Meanwhile, CJ Freshway, another subsidiary of CJ Group, has become Satra’s exclusive supplier of RoK fruits. Both sides will set up supply chains for fresh fruit distribution and improve cold storage systems to ensure product quality. Cassava exports fall with China demand Exports of cassava and cassava-based products have declined significantly this year, according to the Ministry of Agriculture and Rural Development (MARD). At 2.6 million tonnes worth 700 million USD, exports were down 14.5 percent year-on-year in volume and 22.5 percent in value. According to the ministry’s report, much of the fall can be attributed to decreasing demand, particularly in China. China accounted for nearly 86 percent of the exports, but according to the General Department of Vietnam Customs, they were down 32 percent in value year-on-year. Malaysia bought 15.1 percent more, but shipments to most other markets like the Republic of Korea, Japan and the Philippines were down. Nghiem Minh Tien, Deputy Chairman of the Vietnam Cassava Association, said exports to China through unofficial channels have stalled after that country closed almost all its borders in recent months. In the first half of the year it imported cassava mainly from Thailand, he said. Besides, China’s devaluation of its yuan against the dollar has caused difficulties for Vietnam in exporting cassava to that market, he said. Duong Phuong Thao, Deputy Head of the Ministry of Industry and Trade’s Export-Import Department, said when working with her ministry recently, the Chinese side said it would facilitate purchase of Vietnamese goods but still tighten cross-border trade, citing anti-smuggling and quality control. Hoang Trung of the Plant Protection Department said cassava businesses should export to China through official channels to reduce risks compared to border trade. According to the MARD, cassava production has increased sharply in the last 20 years. The country currently has some 551,000ha under cassava, mainly in the central, Central Highlands, south-eastern and northern mountainous regions, with the crop now being an important source of income for small farmers. Cassava yields and production in several provinces have more than doubled thanks to the planting of new high-yield varieties and the adoption of more sustainable production practices. Many cassava processing factories have invested in upgrading their technologies and installing wastewater treatment systems, reducing pollution. Starch produced from cassava root is mainly used as food, but is also a raw material for many industries including pharmaceuticals. Vietnam was one of the world’s largest cassava exporters last year, earning 1.32 billion USD from exports, a year-on-year increase of 15.8 percent. Although the industry has flourished in recent years, excessive reliance on the Chinese market is a risk it faces. Ly Son Island brand gets approval The National Office of Intellectual Property of Viet Nam under the Ministry of Science and Technology has recognised the brand ownership for the products of Ly Son Island including garlic, onion, seafood, garlic wine, dried seafood and seaweed. The director of the Ly Son Island Company, Nguyen Van Dinh said the ownership of the trademark would be valied for 10 years. He said all of the company's products are grown and produced on the island, 30km off the coast of the central Quang Ngai Province. "It took us three years to complete the application procedure for the trademark recognition. However, it's the first time that made-in-Ly Son seafood and aquaculture products have their own brand nationwide," Dinh told Viet Nam News in a phone interview. "The ownership will be a legal protection of the island's products and improve the value of aquaculture and farm produce in the Viet Nam market," he said. He said many shops and traders have used the Ly Son trademark without permission for their products. Dinh confirmed that his company has nine official agents in HCM City, Ha Noi, Ba Ria-Vung Tau, Can Tho, Dak Lak, Ninh Binh, Da Nang, Quang Ngai and Ly Son Island. Last year, 40 tonnes of Ly Son garlic were exported to Thailand. The company, in co-operation with the island district and the island's farmers association, plans to produce organic black garlic for export to Japan, the US and Asian countries, as well as producing garlic oil. Ly Son garlic has a distinctive flavour and is in high demand at home and abroad. But this year only 250ha of garlic and onion were planted due to serious drought on the island. Ly Son Island, known as the Kingdom of Garlic in Viet Nam, has 21,000 inhabitants, of whom 73 per cent makes their living from farming garlic and spring onion, and fishing.  Top bank denies builders' cheap loans The deadline for social housing developers who signed borrowing contracts before March 31, 2016 to get cheap loans from the VND30 trillion stimulus package will not be extended to December 31 this year as they wished. However, capital disbursement for low-income buyers still continues. Earlier, the HCM City Real Estate Association submitted a proposal to the State Bank of Viet Nam (SBV), asking the central bank to allow social housing developers to continue getting loans at preferential interest rates from the VND30 trillion (US$1.34 billion) package until the end of the year. In response, SBV confirmed that after asking for opinions from the Ministry of Construction, the Ministry of Finance, as well as balancing the interests of the Government and people, the loans would not be disbursed because the real estate business has certain profits while already enjoying preferential policies of taxes and land rental when building social housing. The disbursement extension for home buyers means indirect support for businesses. In addition, the Government has prioritised low interest loans to improve living conditions for the needy rather than for housing developers. The disbursement progress to developers was slow due to construction delays, the central bank said, adding if the proposal is approved, it would create a bad precedent and property companies would be more reliant on Government support. The SBV will only allow the capital disbursement to be continued for individual borrowers of social housing projects till the end of this year. The interest rate for the loans this year was set at 5 per cent, 1 per cent lower than last year. The municipal Department of Construction says about 39 social housing projects with 43,700 apartments are under construction. The department has also reviewed the area of 94 commercial housing projects in a plan to use a part of them for around 157,000 apartments for low-income earners. It said developing projects for low-income earners has been one of most important solutions to resolve the unlicensed houses in the city. Since the effectiveness of the Law on Housing 2006, the city has approved the construction of 51 social housing projects with more than 46,500 apartments; 12 projects were completed, providing 3,886 apartments. In addition, real estate firms also completed 35 projects for workers with 5,500 apartments housing 40,000 workers. Tran Trong Tuan, the department's director, predicts the demand for low-cost housing in the city over the next five years would be huge.  VIBA–ICT Show planned for April 2017 A series of international exhibitions of broadcasting and AV, as well as smart technology (VIBA–ICT Show), will be organised in HCM City in April 2017 with many improvements from previous shows, the organisers announced last Friday. VIBA–ICT Show 2017 will be developed in terms of scale and the number of exhibits. It hopes to attract 20,000 visitors. Visitors will have a chance to witness and experience ultramodern equipment and technology, such as digital video broadcasting, drones, VR, 4K TV, UHD, smart phone, broadcast services and AV from Vietnamese and overseas companies. Interactive games will be organised to create an exciting atmosphere, along with other concurrent events, such as workshops, seminars and business matching with opportunities to meet with related government bodies, associations and other major key players in the industries.  Aquaculture VN 2016 to take place in October An international conference on aquaculture, fisheries and seafood supply chains – Aquaculture Viet Nam 2016 — will be organised in HCM City in the middle of next month. With the theme of "Sustainable Aquaculture in Practice," the conference will feature many leading experts and companies in the industry as well farmers who will discuss the industry's outlook, challenges and opportunities, as well as the sector's trend and opportunities. Topics will include feed outlook and technology, the outlook for pangasius and shrimp; challenges and opportunities of vegetable proteins; the impact of different inorganic phosphorus sources on growth performance, digestibility, retention efficiency and excretion of nutrients in fish; financing for investment, insurance and logistics for Viet Nam aquaculture; seafood consumption in key markets such as EU, Japan, China and USA; and improving the value chain in the aquaculture industry in Viet Nam. Tainted pig breasts found being disguised as goat breasts in Vietnam Those in Vietnam who are fond of dishes made from goat breasts should be cautious as they may consume those of the pigs, while health risks are imminent due to poor quality. This is highly probable as an animal health division and police in District 12, Ho Chi Minh City, have discovered more than two metric tons of undated pig breasts allegedly from China stashed in a warehouse. All packages of the pig breasts, with fluid leaking out and an odor exuded, have no food safety certificates or information on their origin. Only Chinese words are printed on the packages. An officer from the animal health division said that Nguyen Thi Dung, 59, from the northern province of Thai Binh, was in charge of trading and distributing the goods from northern provinces and cities to Ho Chi Minh City. “Dung and her workers are responsible for labeling the packages ‘goat breasts’ and distributing them to barbecue restaurants in Ho Chi Minh City and other southern locales,” the officer added. Such a practice has been quite common in Vietnam recently. In January, 1.2 metric tons of rotted pig breasts were discovered being carried by truck from China to Ho Chi Minh City for consumption. The breasts would be processed into those of the goats by local eateries and sold to customers. In December 2015, police also seized two metric tons of rotted pig breasts stored in a house in District 12. VN looks to Japan for guidance in parts industry A seminar held in the capital yesterday by the Central Institute for Economic Management (CIEM) and Japan’s Mitsubishi Research Institute (MRI) reported the findings of a study on the slow growth of the Vietnamese parts supply industry.  The report aimed to analyse challenges for Viet Nam’s parts supply industry and recommend policies to boost co-operation between Viet Nam and Japan in the industry. According to Doctor Yoichi Sakurada from the MRI, the research was not only theoretical but also practical. It checked the country’s current models and policies supporting small and medium businesses and proposed policies to further develop co-operation between Viet Nam and Japan in the industry. CIEM Vice-President Nguyen Thi Tue Anh said the country’s capacity for supplying intermediate products was still uncompetitive in quality, price and efficiency. Meanwhile, the domestic businesses’ capacity for participating in the global value change remains limited, even sectors with considerable advantages. She said Viet Nam had many programmes and policies to support small and medium enterprises with institutions, credit, technology and human resources. However, the policy implementation was not effective enough. Tue Anh took the policies to encourage parts supply industry under the Government’s Decision 111/2015/ND-CP on the parts supply industry development as an example of ineffectiveness. She said the policies had not yet created an impetus for the industry because the decree’s preferences on tax, credit and human resources were not actually new, but present elsewhere in other regulations. Viet Nam imports 80 per cent of raw materials. According to an estimate by the Japan External Trade Organisation (JETRO), the local content ratio of processing products made by Japanese manufacturers in Viet Nam last year was 32.1 per cent. As for industrial products, only the motorbike industry received a high rate of localisation, at 95 per cent. Other sectors such as electronics, auto and high-tech products had a local part rate of below 20 per cent on average. Sharing experiences at the seminar, MRI experts said Japan proposed that Viet Nam test its model via a State-owned technology centre. This model was set up in Japan in 1920 and has been successfully carried out in Japan since. This model is a place for small and medium enterprises, which are unable to invest in equipment for testing, to use the centre’s services and machines to study and test their products. The model is under management of local authorities and its fund comes from the local budget and partly from the enterprises. CIEM deputy director Tue Anh said it needed to discuss in more detail which industries would need that support. There are many centres supporting businesses in localities, so many areas will only require upgrades through investment in equipment and machines. However, she added that the most difficult thing is determining how to maintain the centres’ operation effectively, including funding, machine upkeep and human resources. Economic expert Nguyen Mai said CIEM should propose that the Ministry of Planning and Investment issue concrete policies for businesses to develop parts supply industry and then submit the policies the Government. “In particular, we should not have different concept between Viet Nam and Japan about the parts supply industry. We should set up parts supply for every industry,” said Mai. Japan firm pledges $5m Binh Dinh timber factory Japanese firm Marubeni Lumber Co plans to develop a wood furniture production factory in central Binh Dinh province's Nhon Hoi Industrial Zone (IZ). Covering 100.000sq.m, the factory will cost US$5 million in its first phrase. Earlier this month, chairman of the provincial People's Committee Ho Quoc Dung thanked the Japanese company for choosing Binh Dinh and pledged to create favourable conditions for the company to do business. As of August, the province's IZs had lured five Japan-funded projects worth a combined total of nearly $30 million, according the Binh Dinh Economic Zone Authority.  Fecon and Raito create new firm Local Fecon Corporation (FCN) and Japanese Raito Group joined together to create a geotechnical company called RAITO – FECON (RFI) in Ha Noi on September 13. The firm, RFI, with charter capital of US$1.4 million, is 51 per cent owned by Ratio and 49 per cent by Fecon. According to Fecon, the firm was created following the successful collaboration between the two companies, working together for more than 4 years in the field of underground construction, especially in the transfer of advanced Japanese technology in Vietnam. In the future, RFI will specialize in underground construction in Vietnam, neighboring countries and international projects. In 2015, both companies worked on urban subway Metro Line 1 in HCM City. Also on September 13, the two companies signed the Phase 2 tender underground package for water system improvements in HCM City.  BIM Group offers promotions for Green Bay Village The diversified BIM Group is offering attractive promotions to buyers of Green Bay Village, the first gated community in harmony with the environment in northern Quảng Ninh Province, in September. Accordingly, buyers will get five per cent discount on the apartments' prices (before value added tax) by the developer for purchases made between September 5 and September 20, along with no service charge for two years. Buyers will also get five per cent discount on pre-VAT prices on the immediate payment, which is from 95 per cent of the contract's value BIM Group and G5 Property Trading Floor Alliance will jointly organise a sale event on September 18 in Ha Long City, Quang Ninh Province. Green Bay Village has a modern and cutting-edge design, a lot of green area, a well-equipped security system and modern amenities, an ideal environment for the citizens of this National World Heritage city. Green Bay Village consists of 144 townhouses, priced from VND2.5 billion, eight garden houses, which can also be used for business purposes and a building with 368 apartments and eight duplex houses called Green Bay Premium. Notably, all Green Bay Premium apartments have a beach view. Located in BIM Group's Halong Marina Urban Area, Green Bay Village will benefit from the urban area's developed infrastructure system and facilities. The development of a 248ha urban area with high-profile projects, such as resort townhouse Lotus Residences, shophouse Little Vietnam, Coral Townhouse and Sunrise Apartment Building, is contributing to changing the face of the coastal city and improving living standards.  SHB approved merger with VVF in principle The State Bank of Viet Nam this week approved in principle a plan to merge the Saigon-Hanoi Commercial Joint Stock Bank (SHB) and the Vinaconex-Viettel Finance JSC (VVF). SHB released the information, according to which the central bank also ratified SHB's plan to set up a new subsidiary, which will be called SHB Finance with charter capital of VND1 trillion (US$44.64 million) and will operate in consumer credit. Following the merger, SHB's charter capital will increase to more than VND10.485 trillion. SHB said under the Cicular 6812/NHNN-TTGSNH, the central bank also asked SHB and VVF to complete their merger in line with SBV's regulations and submit a report on the merger to the SBV governor for official approval. The planned merger was approved earlier by SHB and VVF shareholders at their annual general shareholders meetings last year. SHB Finance will initially provide consumer credit services for individual customers that have annual income from VND150 million to VND200 million, later easing the market share to other individual customers with lower income. Once SHB Finance is established, SHB will also transfer all its customer lists of individual borrowers with annual income of less than VND200 million to SHB Finance. According to SBV's statistics, Viet Nam had 16 financial companies till the end of the last year. Vietnam, Japan cooperate to boost supporting industry A study on how to develop the supporting industry in Vietnam suggested cooperation with Japan in the field, heard a seminar held in Hanoi on September 16. The research, conducted by the Central Institute for Economic Management (CIEM) and the Mitsubishi Research Institute, Inc. (MRI), analysed the current challenges encountered by the supporting industry in Vietnam and proposed cooperation policies between Vietnam and Japan in order to improve the sector. According to Vice President of CIEM Nguyen Thi Tue Anh, there is a lack of connection among enterprises operating in the sector. She also said the ability of Vietnamese enterprises to supply intermediate products and their possibility to enter the global supply chain are weak. The country has a number of policies to support small- and medium-sized enterprises (SMEs), however, the efficiency of the policy implementation is not high, she added. At the event, experts from the MRI proposed the application of the model of public technology centre in Vietnam. In the model, which has been successful in Japan, SMEs are able to use the centre’s services to do research and experiments According to the Japan External Trade Organisation (JETRO), the local content of products made by Japanese businesses in Vietnam was very low, reaching only 32.1% in 2015. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR