BUSINESS IN BRIEF 29/9 Vietnam-EU trade to grow further   Two-way trade between Vietnam and the EU will grow further in the future as their Free Trade Agreement (EVFTA) takes effect soon, said participants at a trade conference in Hanoi on September 27. The agreement, whose negotiations concluded December 2015 in Brussels, is expected to increase Vietnam’s export to the EU by 4-6 percent per year, said Tran Ngoc Quan, deputy head of the Ministry of Industry and Trade’s European Markets Department.  Around 90 tariff lines applied to products of Vietnamese and EU origins will decrease to a very low level or even zero percent for some Vietnam’s exports to the EU like garment & textile, footwear, food, farm produce and seafood, he said.  However, he noted that the EU attaches importance to transparency and protection of consumers’ interests via a number of protection measures. Products eligible to be shipped to the bloc must be socially responsible and environmentally friendly.  Trinh Thi Thu Hien, head of the origin of goods from the ministry’s Export-Import Department, said the rule of origin is an important content of the EVFTA, helping enterprises take advantage of incentives in tariff.  She stressed the need for timely and regular training for businesses so that they can actively update information to meet the European markets’ strict requirements on the certificate of origin. According to Ta Hoang Linh, deputy head of the ministry’s Trade Promotion Agency, said Vietnam-EU trade has increased 10-fold since 1990, hitting 41.4 billion USD in 2015.  In the first six months of 2016, the figure reached 21.2 billion USD, up 9.35 percent from the same period last year. Of which, Vietnam’s export to the EU was 16.2 billion USD, a year-on-year increase of 9.5 percent. Banking leads market to 9-year high Vietnamese shares extended gains yesterday, driven by the banking sector on expectations that lower short-term deposit rates would boost lending for the economy and local businesses. The benchmark VN Index overcame the loss made in the early session to reach a nine-year high of 686.72 points, up 0.3 per cent from the previous day. The southern market index has jumped 5.4 per cent in the last eight sessions. The HNX Index on the smaller Ha Noi Stock Exchange rose 1 per cent to end at 84.32 points, making a two-day gain of 1.5 per cent since Monday. The three largest listed banks, Vietcombank (VCB), Vietinbank (CTG) and Bank for Investment and Development of Viet Nam (BID), took the lead on the stock market yesterday. On Monday, these three banks cut their deposit rates by 0.3 per cent to 0.5 per cent for deposits of less than one year. The deposit rate cut complied with the central bank's policy, which required commercial banks to save costs to reduce lending rates, in order to boost local businesses and economy. Analysts and brokerage firms also saw this move as a positive signal to the stock market and for the economy. "The deposit rate cut proves that the banking sector now has a surplus of available cash and that worries about inflation exceeding 5 per cent have been eased," Bao Viet Securities Corp (BVSC) said in a note. "The rate cut will help banks cut their lending interest rates in the near future, which is expected to boost the production of local enterprises." More lending also means those banks will earn higher incomes in the near future. "The stock market will also benefit from the banks' rate reduction as investors will find stocks more attractive than savings," BVSC said. The three largest listed banks made good gains since Monday. CTG rose 1.5 per cent and BID jumped 3.3 per cent yesterday. CTG and BID have gained 3 per cent and 8.8 per cent, respectively, in the last two sessions. VCB did even better. The stock added 1 per cent yesterday to advance 11.4 per cent in the last one-and-a-half trading weeks. On the negative side, the market saw two large-cap stocks decline on their business news, Sai Gon-Ha Noi Securities Corp (SHS) reported. Property developer Vingroup JSC (VIC) dropped 2.8 per cent after it announced two of its business units – the Vinmec hospital chain and the education establishment Vinschool – will transition from for-profit to non-profit operating models. Consumer goods producer Masan Group (MSN) plunged 4.4 per cent after the tungsten mining project of its sub-unit Masan Resources was inspected by officials yesterday. More than 168 million shares worth more than VND3.3 trillion (US$147.3 million) were exchanged yesterday, an increase of 7.1 per cent over Tuesday's trading value. Japanese businesses seek partners for agricultural cooperation Japanese businesses discussed possibilities on agricultural cooperation with Vietnamese enterprises at a workshop in the central province of Nghe An on September 28.  The workshop was hosted by the Japan International Cooperation Agency (JICA).  A representative from Tsuno company, which produces cooking oil and cosmetics from rice bran, said the company is looking to cooperate with Vietnamese rice mills as the supply of rice bran in Japan is declining.  Kubota Vietnam Ltd Co, which supplies agricultural machines, urged local farmers to switch to new-generation agricultural machines for higher productivity and reduce labour.  Watanabe Pibe Vietnam introduces its Green House products used in cultivation.  Local companies offered their products and sought partners for technology and human resource training.  Participants delivered measures to create high agricultural value chain and to boost agricultural cooperation of two countries.  Addressing the workshop, a JICA Vietnam representative said that JICA will support the construction of an irrigation system and agricultural planning in Nghe An.  He also suggested that to improve agricultural products’ quality and market value, the province needs to apply advanced processing techniques and improve the distribution system through partnership with foreign businesses. Japan adjusts check schedule of seafood products from Vietnam Japanese authorities have adjusted schedules for checks on antibiotic residues in seafood products imported from Vietnam, according to the National Agro-Forestry- Fisheries Quality Assurance Department. As from September 13, 2016, random checks for Chloramphenicol (CAP) in shrimp and shrimp products were reduced from 100 percent of batches to 30 percent. However, all batches of cuttlefish will continue to be checked for CAP.  Meanwhile, checks for Sulfamethoxazole and Sulfadiazine have been conducted on 30 percent of batches as from August 2 and September 9, respectively. Checks for Furazolidone, Enrofloxacin will continue to be conducted for all batches of shrimp from Vietnam. Vietnamese seafood manufacturing firms are requested to keep updated on importers’ regulations and take the initiative in monitoring antibiotic residues in seafood exports. Japan’s industrial machine factory inaugurated in Vietnam Japan’s Meitoku Engineering Co., Ltd put into operation a factory producing and assembling industrial machines at the Dong Van II Industrial Zone in the northern province of Ha Nam on September 28.  The factory, covering an area of 19,100 sq.m, has a total investment of 5 million USD. This is the first overseas factory of Meitoku Engineering, said Tokunaga Mikie, the company’s General Director, pledging using advanced technologies to produce quality products and protect the environment, thus contributing to the development of Ha Nam province and Vietnam in general.  Nguyen Dinh Khang, Secretary of the provincial Party Committee, appreciated the company’s efforts in finishing factory construction on time with safety.  The factory is expected to create more jobs and improve locals’ living conditions, he said, affirming that Ha Nam will continue creating the best conditions for Japanese enterprises and others investing in the province. Ha Nam has to date attracted 178 foreign direct investment (FDI) project with a total capital of over 1.4 billion USD. Of which, 54 projects worth 550 million USD are invested by Japan. Lebanese businesses eye Vietnamese market Lebanese businesses wish to seek opportunities in Vietnam, Naji Mouzannar from the Lebanon Chamber of Commerce, Industry and Agriculture (LCCIA) said at a seminar on September 27. Mouzannar and Vietnamese Ambassador to Egypt and Lebanon Do Hoang Long agreed that the LCCIA and the Vietnam Chamber of Commerce and Industry should sign a cooperation agreement. The LCCIA will exchange information with the Vietnamese Embassy’s Commercial Affairs Office, Naji Mouzannar said, underlining the need to establish a council of Lebanese businesses cooperating with Vietnamese partners. Speaking at the seminar in Lebanon, Ambassador Long called on the two countries’ enterprises to participate in joint trade fairs, exhibitions and investment workshops to enhance connectivity. In the same vein, Vietnamese and Lebanese firms should set up direct partnerships, he said, promising that the Vietnamese Embassy’s Commercial Affairs Office will work with the LCCIA to support them. Long urged the two countries’ agencies to optimise their substantial cooperation potential. The Vietnamese Embassy has helped Lebanese businesses establish a forum that updates them with information about the Southeast Asian nation, he said. Vietnamese Trade Counselor Pham The Cuong briefed the seminar on Vietnam’s potential as well as its policies regarding foreign investment and trade ties with foreign countries. He invited the Lebanon businesses to join the Food Expo slated for this November. A mobilisation board for the establishment of the council of Lebanon businesses cooperating with Vietnamese partners, and the forum of Lebanon enterprises were formed on the occasion. LED/OLED lighting show kicks off in Ha Noi Various lighting brands from Viet Nam and other countries gathered at the Viet Nam International LED/OLED and Lighting Show 2016 (LEDTEC ASIA 2016), which opened yesterday in Ha Noi.  Rapid industrialisation and modernisation of the country had resulted in the need for new technologies, which are energy saving and environment friendly to create sustainable development. The exhibition is an opportunity for businesses operating in the field of lighting technology LED/OLED in Viet Nam to expand cooperation, attract investment and strengthen trade promotion with international partners.  The exhibition has 150 booths set up by 30 Vietnamese and 50 foreign enterprises from various countries, such as South Korea, China, Singapore and Japan. On display are LED/OLED lighting fixtures, material components, manufacturing and testing equipment, and digital signage.  "We believe the exhibition will help businesses introduce their technology and the best-quality modern products to consumers. The event is a bridge between producers, distributors and consumers," Doan Duy Khuong, vice chairman of the Viet Nam Chamber of Commerce and Industry (VCCI), said. Following the success of the exhibition last year in HCM City, Ledtec Asia is being held in Ha Noi for the first time. Last year, the exhibition attracted 18,000 visitors from 18 countries.  Danny Hyundae Shin, director of Exporum, organiser of LEDTEC Asia 2016, said the event was an ideal solution for companies wanting to expand their overseas business in the new rapidly growing lighting market in Viet Nam and Southeast Asia. An event on LED history would be a perfect place to get more knowledge on the beginnings Viet Nam's LED's industry. Under the framework of the exhibition, the Viet Nam Academy of Science and Technology will hold a workshop on LED technology with participants from the Viet Nam Lighting Association, exhibitors and renowned speakers from around the world.  The exhibition is on at the International Exhibition Centre, 91 Tran Hung Dao Street, Ha Noi, until Friday. Finance opportunities for doing business with Israel: Seminar A seminar on finance opportunities for doing business with Israel was conducted on Tuesday in Ha Noi to enhance economic and trade cooperation between Viet Nam and Israel. Speaking at the seminar, Duly Klein vice president, marketing and business development of the Israel Foreign Trade Risks Insurance Corporation Ltd, informed participants about the financial protocol aimed at promoting business cooperation between enterprises of the two countries and the way to approach finance sources in Israel. Duly said the financial protocol was signed between Viet Nam and Israel in late April 2008. Under the protocol, the Israel government provided a guaranteed credit loan worth US$150 million to Viet Nam to help local small and medium-sized businesses and projects involved in technology transfer from Israel to Viet Nam enhance their business efficiency. Duly Klein said the financial protocol with Viet Nam was then increased to $250 million in November 2011, targeted at developing economic relations between the two countries and promoting Israel's exports to Viet Nam using an efficient financial structure and broadening the financing possibilities for Israeli exporters to the country. Duly also introduced Vietnamese businesses to ways to obtain Israeli preferential credit loans. He noted that the advantage of the protocol was a well-structured prepared process supported by financing facilities. Additionally, the protocol also enabled Israeli exporters to offer long-term credit with favourable terms to Vietnamese buyers. It also allowed Vietnamese buyers to benefit from Israeli goods and technologies for agricultural development, education, water treatment, energy, etc. Yaniv Tessel from Israel's Economic & Trade Mission said Israeli imports from Viet Nam included electronic components, footwear, textiles and food products. Exports from Israel to Viet Nam reached over $1.7 billion and imports from Viet Nam to Israel stood at $598 million in 2015. Viet Nam imported technology, chemical products, and optical medical and other equipment from Israel. Some 59 per cent of imports of Israel from Viet Nam were mobile related products for Samsung smartphones manufactured in Viet Nam. Israel imported footwear, prepared foodstuff, plant and vegetable products. Israel said it recognised Viet Nam as market economy. Nguyen Thi Lam director of the Vietnamese TH-Afimilk project, shared with participants her experiences of implementing a cooperative project, Vietnamese businesses needed to select Israeli eligible partners, both in technology and finance. Businesses were required to understand administrative regulations of the financial protocol from both sides (Israel and Viet Nam) properly.    Viet Nam is the second country (after China) to enjoy such a preferential credit loan from the Israeli government.  Plactic and rubber expo opens in HCM City A plastic and rubber exhibition, VietnamPlas – VietnamRuRubber, opened in HCM City to provide industry players the chance to find partners on September 28. More than 320 companies from Singapore, Korea, Japan, India and other countries are participating in the event, showcasing in over 500 stalls plastic and rubber compressing machines, PET bottle blowing tools, mould manufacturing equipment, plastic and rubber materials and additives, and more. The major participants are the Viet Nam Rubber Association, HCM City Rubber and Plastic Association, Taiwan Association of Machinery Industry Association, Taiwan Plastic Industry Association and China Council for Promotion of International Trade. The event at the Sai Gon Exhibition Centre in District 7, organised by Vinexad and Taiwanese exhibition company Chan Chao International, will go on until October 1. Petrolimex gives October discount Customers purchasing petrol and diesel at Viet Nam National Petroleum Group's (Petrolimex) gas stations will receive a discount of VND300 (one US cent) per litre on every Saturday in October. From October 1 to 30, Petrolimex will launch their 2016 customer appreciation plan called "Golden Day", according to which for the next five Saturdays in October, those who purchase petrol and diesel at Petrolimex gas stations will receive a VND300 discount per litre, compared with the VAT included listed retail price of VND16,232 (72 US cents). Additionally, customers using Flexicard for purchase will receive a discount of VND100 on any day of the month and a discount of VND400 in total on the aforementioned Saturdays. During this period of discount, other discounts by Petrolimex members continue to be valid independently. For the first six months of 2016, Petrolimex earned total reported revenue of VND2.3 trillion (US$102.9 million), a growth of 115.7 per cent compared with the same period in 2015. Firms told to improve export quality Vietnamese firms were once again urged to pay special attention to improving product quality to utilise opportunities under the free trade agreement (FTA) with the European Union (EU). Tran Ngoc Quan, deputy director of the EU Market Department under the Ministry of Industry and Trade, said at a conference held yesterday by the Viet Nam Trade Promotion Agency in Ha Noi that the Viet Nam-EU FTA was expected to increase Viet Nam's exports to this market by 4-6 per cent each year. The FTA was an opportunity to increase the export of Viet Nam's products, such as garments and textiles, footwear and seafood, to one of the most demanding markets in the world, which would help extend the reach of Vietnamese products globally, Quan said.  Transparency and protection of consumer rights were of great importance when exporting to the EU. "Products of firms which do not pay adequate attention to social responsibility and environment will hardly stand a chance in the EU market," Quan said. In order to utilise opportunities due to the liberalisation of 90 per cent of tariff lines, Quan said firms should promote trade promotion activities along with improving their product quality. According to Trinh Thi Thu Hien from the Viet Nam Trade Promotion Agency, a certificate of origin (C/O) was necessary for firms to enjoy preferential tariffs. It was important that firms actively study C/O requirements of the FTA and take action accordingly, Hien said. Nguyen Thi Thu Trang, director of WTO and the Integration Centre, said opportunities were available but firms' awareness about integration remained low. "If no improvements are made, firms could make use of only 30 per cent of the opportunities," Trang said. The EU is the biggest importer of Vietnamese goods and the second largest trade partner of Viet Nam. In the first half of this year, bilateral trade between Viet Nam and the EU reached US$212 billion, rising by 9.35 per cent over the same period last year. Viet Nam's exports to the EU were $162 billion in the period, up 9.5 per cent.  Can Tho City courts investment The Cuu Long (Mekong) Delta city of Can Tho has implemented measures like improving infrastructure and offering investment incentives to attract more investors, especially to its industrial parks. It has actively co-ordinated with ministries and central agencies to build social infrastructure, especially transport systems featuring an airport, ports and roads linking the city with other localities in the delta to facilitate transport of goods. It has also focused on building infrastructure at IPs to serve businesses operating there. For instance, Tra Noc IP has built a wastewater treatment plant with a capacity of 6,000cu.m a day while Not IP has a plant with a capacity of 2,500cu.m. At Thot Not, Saigon-New Port Corporation has put into operation the Tan Cang-Thot Not port capable of receiving 2,000 DWT vessels and 1,000-tonne barges and with a 1.1ha freight yard. The terminal plays an important part in loading goods and containers with a focus on rice, aquatic products and animal feed from Can Tho and neighbouring provinces including An Giang, Kien Giang and Dong Thap. The terminal also provides all-in logistics services for waterways connecting the Mekong Delta with HCM City and deep-water ports such as Cai Mep-Thi Vai port as well as with Cambodia. In addition to building technical infrastructure, the city also offers incentives and policies to support investors. Factories in IPs in priority sectors and with an investment of VND60 billion ($2.69 million) or more will get a 20 per cent interest subsidy on loans. The city plans to continue with the task of completing administrative procedures and creating a fair and transparent business environment among others in addition to offering clean lands at IPs to attract more investors. According to the Can Tho Industrial Parks and Export Processing Zones Authority, the city has six concentrated industrial parks — the 135ha Tra Noc 1 (fully occupied), 155ha Tra Noc 2 (96 per cent occupation), 262ha Hung Phu 1 (21 per cent occupation), 134ha Hung Phu 2A (43.4 per cent occupation), 62ha Hung Phu 2B (South Korea's Tae Kwang Company leased all), and the 600ha Thot Not (61 per cent out of 104ha in the first phase leased). In addition, the Government has added two other IPs – O Mon IP with 600ha and Bac O Mon IP with 400ha in the city – to the zoning plan for IPs development in Viet Nam. According to its Department of Planning and Investment, in the first nine months of the year city IPs attracted seven projects with a total registered capital of nearly $190 million. Together the IPs are home to 223 projects with a total investment of $2.12 billion, of which 22 with an investment of $369.87 million are foreign-owned, it said. In the past 20 years the IPs have greatly contributed to social and economic development of the city in particular and the Mekong Delta region and the country in general.  Gas firms bemoan complex decree rules Local businesses have complained about shortcomings in Decree No 19/2016/ND-CP, causing them trouble after it came into effect only five months ago, heard attendants at a conference held in Ha Noi on September 27. The conference, which was co-organised by the Ministry of Industry and Trade and the European Trade Policy and Investment Support Project (EU-MUTRAP), aimed to collect ideas from organisations and individuals on regulations and administrative procedures of the industry and trade sector. The decree's ineffectiveness on gas trading was one of the biggest concerns raised by domestic firms about the ministry's administrative procedures. They asked the ministry to review and amend regulations to bring them into line with real-world scenarios.  Pham Thi Hien Luong, a representative from the Binh Dinh Gas Businesses' Association said the decree's regulations stipulating the gas companies had storage tanks and total LPG bottle capacities of at least 2.62 million litres were hard to complete, especially for those in remote and mountainous areas with low population densities. "Gas companies have to invest in at least several thousands of 12kilo gas tanks to meet the market's demand. It means that we would have to invest around VND4-5 billion (US$179,000-$223,800), excluding expenditure on warehouses, preservation and labour. However, not all of the tanks would be used, leading to high inventory," Luong said. She calculated that each gas company would have to invest VND25-30 billion in the gas tank system when applying for a business licence, while the investment was unnecessary for production and trading. It was estimated that they had to spend a total of $35 million to apply for and maintain an unnecessary licence. She added that the regulations were more suitable for large localities with a high population density. "The decree was unreasonable and could lead to bankruptcy for most gas distributors". Reiterating the points, Tran Trung Nhat, director of Thai Duong Gas Company in the southern Tay Ninh Province also felt strongly about the decree. Nhat said the decree took effect on May 15, 2016. However, each locality had their own regulations in granting licences to gas businesses. "There were two decrees on gas trading within only six years. The latest decree still has business conditions conflicting with each other, causing difficulties for firms," he added. Nguyen Minh Duc from the Viet Nam Chamber of Commerce and Industry said the ministry's regulations tended towards business' scale and limited small-and-medium sized enterprises (SMEs) or even deterred the development of start-ups. "The scale differentiation has not only been seen in the gas sector but others such as rice, fertilisers and petroleum. The condition has shown the Government's deep intervention into the market as business' scale depends on market's supply and demand," Duc said. He noted that Governmental agencies often believed that SMEs had more violations than bigger ones, thus needing more investigations into the firms. However, we should not limit small firms. The conditions could also be a barrier for start-ups. Responding to the concerns, deputy minister Tran Quoc Khanh affirmed that the ministry had asked relevant departments to collect gas firms' ideas to submit to the Government for review. "The target of policymakers when making the decree was to ensure benefits for consumers while ensuring the market's healthy competition and transparency. However, the ministry wants to receive contributions from businesses," Khanh said. Decree No 19/2016/ND-CP was promulgated on March 22, 2016 to replace decree No 107/2009/ND-CP on November 26, 2009 on gas trading.  SCIC to unload maritime stock The State Capital Investment Corporation (SCIC) will auction more than 2.4 million shares of Maritime Bank on the Ha Noi Stock Exchange on October 26, unloading its entire stake in the bank. News website enternews.vn reported that the shares as of press time have a face value of VND10,000 (US$0.4) each, and they start bidding at the initial price of VND11,700 per share. Maritime Bank reportedly plans to reach a pre-tax profit of VND190 billion this year, up 20.2 per cent over last year. SCIC is the strategic investment arm of the Vietnamese Government, managing State interests in companies and projects. It manages investment portfolios across different sectors of the economy, such as financial services, energy, telecommunications, construction and transportation. Vietnam banks receive international awards Vietnam banks have been awarded by Asiamoney, a prestigious financial magazine in Asia. vietnam banks receive international awards hinh 0 Saigon Hanoi Comercial Join StockBank (SHB) has been named the best domestic bank 2016. SHB Director General Nguyen Van Le said the award acknowledged SHB recent efforts and creates a motive for it to develop into a strong financial group meeting international standards by 2020. Meanwhile the Bank for Investment and Development of Vietnam (BIDV) has received four awards from Asiamoney, including the best domestic provider of foreign exchange services, and the best foreign exchange service provider. The awards demonstrate BIDV’s constant efforts to bring the best products and services to customers. In addition to traditional products, BIDV has pioneered in supplying new products and services like market research reports to help its customers update prices and market movements at home and abroad. Vietnamese mobile app gets Facebook's US$40,000 support package The app, Rada, connects users to an online marketplace of repair and home services. A Vietnamese application named Rada has recently been granted a US$40,000 subsidy package from FBStart, a new program designed by Facebook to help mobile startups. Launched in 2015, Rada allowed users to search for motorcycle repairing services in their region. The application then expands to other areas like household equipment repair, healthcare, food, construction, electricity and water services. The sum of US$40,000, or nearly VND1 billion, will be converted into tools and services provided by Facebook and its partners, together with mentorship opportunities. Co-founder Ta Quang Thai said the aid package, though not in cash, will help Rada strengthen its marketing strategies. Currently, the app has been downloaded over 80,000 times from the Apple Store and Google Play with around 50 successful transactions per day. Rada’s founders aims to reach 500,000 users by the end of 2016, with 500 professional service suppliers and 30 areas involved in their network. Previously, a website developer from Ho Chi Minh City also managed to receive a similar US$40,000 package from Facebook for his new mobile game "Shark Journey." EC further imposes AD duty on Vietnam leather-capped shoes The European Commission (EC) has decided to levy anti-dumping duty of 10% on Vietnam leather-capped shoes as from September 14, 2016, according to the Vietnam Competition Authority under the Ministry of Industry and Trade. The EC released its final decision on the review of anti-dumping duty on leather-capped shoes imported from Vietnam, which came into effect as from September 14, 2016. Accordingly, the EC will keep imposing the AD duty of 10% on products imported from Vietnam from October 7, 2006 to March 31, 2011. The EC initiated AD investigations in 2005 and in 2006, it issued a decision to impose an AD duty of 10% on Vietnamese leather-capped shoes and of 16.5% on Chinese products. In 2011, AD levies were removed for all Vietnam exporters and some Chinese companies. However, in 2010 and 2012, some EU footwear importers asked the customs agency to refund AD duties. The request was sent to the Court of Justice of the European Union (CJEU) for consideration. The CJEU on February 4, 2016 announced that the decision to impose AD duties on Chinese and Vietnamese leather capped shoes was partly nullified because the EC investigations were not in line with regulations. On March 17, the EC announced the review of AD levy and issued a preliminary decision on AD duties imposition according to CJEU verdict. Mainstream renewable power and GE Energy Financial Services cooperate to develop wind farms in Vietnam Mainstream Renewable Power and GE Energy Financial Services, a GE Capital business unit (NYSE:GE), have signed a term sheet to develop, build and operate large scale wind power plants in Vietnam. The projects are expected to comprise both greenfield and partially developed sites, are intended to include co-operation with local and international developers, and will receive financing through a Mainstream and GE Energy Financial Services joint development agreement. The aim of the agreement is to compliment the 1GW initiative that GE and Vietnam’s Ministry of Industry and Trade signed in May 2016 to accelerate large-scale Vietnamese wind project buildout. Commenting on the signing of the agreement, Mainstream Renewable Power’s chief operating officer Andy Kinsella said: “Delivering low-cost renewable energy in high-growth markets such as Vietnam is Mainstream’s key strategic focus. We have a strong track record as a leading developer in Africa and South America, we look forward to expanding our operations in Asia and working with GE to bring much needed power to Vietnam.” By combining Vietnam’s abundant wind resource with GE technology, know-how and in-country manufacturing capability and Mainstream’s expertise in development, construction and operations, the partners aim to better enable the country to reach its 2020 renewable energy target. “GE Energy Financial Services engages in strategic co-development opportunities with select GE customers and in countries where GE’s capital, technology and industrial presence can be leveraged to add real tangible value – we call this the GE Store approach,” John Bottomley, GE Energy Financial Services’ managing director and global development leader, added.   To meet the increasing power demand, Vietnam’s power master plan foresees increasing output from 194–210 billion kilowatt hours (kWh) in 2015 to 330–362 billion kWh in 2020. As renewable sources are part of Vietnam’s energy mix, this growth in power supply will also boost the demand for renewable energy. The country’s Sustainable Development Strategy 2011–2020 identifies clean and renewable energy development and its growing share in Vietnam’s energy consumption mix as priorities for a sustainable economy.  Mainstream Renewable Power is the world’s leading independent developer of wind and solar power, with almost 10,000MW in development and nearly 700MW delivered into construction and commercial operation. Founded in 2008, the company employs over 160 people and has offices across five continents. A strategic GE Capital business, GE Energy Financial Services is a global energy investor that provides financial solutions that help meet the world’s energy needs. Drawing on its technical know-how, financial strength and strong risk management, GE Energy Financial Services invests in long-lived and capital intensive projects and companies. The firm has 35+ years of experience managing energy assets through multiple economic cycles, and a global portfolio that spans conventional and renewable power, and oil and gas infrastructure projects. Quality the key in exports to EU A range of opportunities will arise for Vietnam when the EU-Vietnam Free Trade Agreement (EVFTA) comes into effect and there is a need for Vietnamese businesses to improve product standards. A conference of trade between the two held in Hanoi on September 27 covered both the opportunities and challenges for Vietnamese enterprises when the EVFTA comes into being. “Vietnamese enterprises must enhance product quality to meet the requirements of the EU market,” Mr. Tran Ngoc Quan, Deputy Director General of the European Market Department under the Ministry of Trade and Industry (MoIT), told the gathering. In recent years the policies of the EU towards Vietnam have seen positive changes but still offer fewer incentives than for other ACP (African, Caribbean, and Pacific) countries and underdeveloped countries, which are subject to a 0 per cent tax rate on nearly all imports. The Deputy Manager of MoIT’s General Trading Department, Mr. Nguyen Cong Danh, believes that “the standards required by EU countries are much higher than other markets Vietnam exports to.” “The most difficult matters for Vietnamese enterprises when entering the EU are technical barriers on standards for each and every product,” he said. According to MoIT, the EU is a market of some potential and accounts for 74.7 per cent of Vietnam’s trade turnover in Europe as a whole. Export turnover has also significantly increased over the years. Trade turnover from 2000 to 2015 has increased ten-fold, from only $4.1 billion in 2000 to $41.4 billion in 2015, of which exports from Vietnam have increased eleven-fold and imports to Vietnam eight-fold, according to MoIT figures. Ms Tran Tuyet Lan, General Manager of Craft Link, told VET that there are numerous opportunities to boost trade with the EU but the high standards can be a burden for local enterprises. “Success depends on the strategy and determination of each Vietnamese enterprise to meet the requirements set by the EU,” she said. Head of the EU Delegation in Vietnam, Mr. Bruno Angelet, told a press conference on June 28 in Hanoi that the Brexit crisis will not delay the implementation of the EVFTA. The agreement is expected to take effect in early 2018 and could increase two-way trade by 30 per cent against the 2015 figure of $57 billion. “The FTA is in the process of being translated into many languages and the EU will keep working with MoIT on legislation and preparations,” Mr. Angelet said. Total trade turnover between Vietnam and the EU in the first five months of this year reached $17.3 billion, up 10.35 per cent year-on-year. Exports from Vietnam stood at $13.3 billion, up 10.5 per cent, while imports to Vietnam were $4 billion, up 9.8 per cent. Sunshine Group launches two projects, opens sales in third The Sunshine Group announced the official launch of two new projects, Sunshine Center and Sunshine Riverside, and its open sale for Sunshine Garden. The three projects have total investment capital of VND7 trillion ($309 million). “The projects are located in spectacular areas of Hanoi,” said Mr. Do Anh Tuan, Chairman of Sunshine Group. “The group will set aside large areas for facilities such as schools, a community library, natural scenery and trading centers.” Located in Pham Hung Street, the Sunshine Center is a multi-function trade centre - office - apartment complex. Capital stands at VND1.6 trillion ($71 million). Its total area is 4,600 sq m, including three 30 to 35-storey towers with 398 apartments. It is estimated to be completed by the third quarter of 2018. Sunshine Riverside, located in Phu Thuong, Tay Ho district, includes three 31 to 35-storey apartment towers with 932 apartments. Its total area is 11,953 sq m with investment capital of VND2.5 trillion ($115 million). It is estimated to be completed by the fourth quarter of 2018. Sunshine Garden is located in Vinh Tuy, Hai Ba Trung district, with investment capital of VND3 trillion ($130 million) and a total area of 12,810 sq m, including three 31-storey towers with 1,278 apartments. It is expected to be completed by the first quarter of 2018. Sunshine Group also introduced online sales technology through an online property trading floor called Housing, providing information on locations, areas, prices, payments, and contract procedures for buyers. Another of the group’s projects is Sunshine Boulevard, nestled between Nguyen Trai and Khuat Duy Tien Streets. No information has been revealed about the project at this time. The Sunshine Group develops real estate projects in the mid and high-end segments. It also specializes in construction, commerce, services, and communications.  SBV asks banks to tighten high-end property credit The State Bank of Vietnam (SBV) has issued a document requiring commercial banks control credit growth to real estate projects, especially in project investment. Banks must review their credit to large investors and restrict it to reduce risks. A Ministry of Construction report stated that supply of high-end residential projects is higher than for social and low-cost housing projects and is forecast to reach saturation point by the end of the year. “This requires bankers restrict and exercise caution in considering and verifying loans for new projects, in particular high-end residential and hospitality real estate projects and those that have low liquidity,” the report said. The SBV also requires commercial banks review and reassess the status of their loans, supervise capital use and examine the finances, revenue and other debts of customers in order to enhance risk management and ensure repayments are made as scheduled. In July the SBV said it believes that banks have focused too much capital in real estate projects and suggested they adjust their lending in the sector. The SBV also asked banks to focus on loans for investment in preferred industries.   Amendments to Circular No. 36/2014/TT-NHNN regulating prudential ratios for the operations of credit institutions and foreign bank branches were issued in late May, surprising real estate insiders. Under the new circular from the SBV, the risk index of receivable lending for real estate and securities is raised from 150 per cent (the lowest level) as stipulated in Circular No. 36 to 200 per cent. This is lower than the cap of 250 per cent proposed earlier by the SBV, which has made property investors concerned about capital shortages. The increase will come into effect on January 1, 2017. The new Circular No. 6 specifies a roadmap for the maximum ratio of short-term funds used for medium and long-term loans to be reduced from 60 per cent to 40 per cent. Under the newly-issued decision, the 60 per cent ratio will be kept until December 31 this year and then lowered to 50 per cent from January 1, 2017 to December 31, 2017 and 40 per cent from the beginning of 2018. Vietjet offering 1 million cheap tickets on Online Friday Vietjet Air will offer 1 million super-cheap tickets during the “Vietnam’s Autumn Online Friday” event on September 30 for travel on all its domestic and international flights from October 30 to March 31, 2017. The 1 million tickets are priced from just $0 and are on sale from 12pm to 2pm and from just $3 at other times on September 30. Its new Ho Chi Minh City - Hong Kong route starts on December 9 and Ho Chi Minh City - Kaohsiung and Hai Phong - Seoul on December 12. The promotional tickets can be booked at www.vietjetair.com, compatible with smartphones, or at Vietjet’s Facebook page (click the “Booking” tab). Payment can be easily made with debit and credit cards of Visa, MasterCard, JCB, and American Express and ATM cards issued by 29 Vietnamese banks that have been registered with internet banking. According to Mr. Desmond Lin, Vietjet’s Business Development Director, it provides not only transport services but also uses the latest e-commerce technologies to offer various products and services for consumers. “The ‘Online Friday’ event provides a lot of benefits for online shoppers and is expected to be organized more often to meet increasing online shopping demand,” he said. Vietjet Air is the first airline in Vietnam to operate as a new-age airline with low-cost and diverse services to meet customer demands. It is a member of the International Air Transport Association (IATA) and has IATA Operational Safety Audit (IOSA) certification. It was also named as one of the Top 500 Brands in Asia 2016 by global marketing research company Nielsen and “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies and tour operators throughout Asia. The airline was also rated as one of the top three fastest growing airline brands on Facebook in the world by Socialbakers. The airline now boasts a fleet of 40 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 53 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, Malaysia, China and Myanmar. It has carried nearly 30 million passengers to date. Looking ahead, it plans to expand its network across the Asia Pacific region. It has signed agreements with the world’s leading aircraft manufacturers to purchase more modern aircraft. Each Vietnamese person spends $350 on online shopping each year and in the next five years this will double. Vietnam Airlines offers cheap tickets from Vietnam to Australia The national flag carrier Vietnam Airlines has launched a promotional program on international route from Vietnam to Australia.  Under the plan, a return economy class ticket between Hanoi and Melbourne will be sold at VND16.3 million (US$730). Flight will depart from now until December 20, involving a transit in HCM City. A return economy class airfare from HCM City to Sydney will cost from VND22.3 million (US$1,000). The special price is applied for flights departing from now until November 30. The promotional airfares do not include taxes, fees and surcharges. Tickets will be sold at its official website www.vietnamairlines.com, the airline's booking offices and agencies nationwide. WB’s Vietnam Development Report focuses on agriculture The World Bank in Vietnam on September 27 announced the Vietnam Development Report 2016 themed “Transforming Vietnamese Agriculture: Gaining More from Less,” detailing challenges and opportunities facing the sector. Speaking at the event, Ousmane Dione, WB Country Director for Vietnam, said that t he country’s agricultural output is exacting a price on the environment. Business as usual’ is no longer an option for the sector–growth has slowed down, it is vulnerable to climate hazards, and leaves a large environmental footprint.  “Change will help overcome these challenges, ensure the future of agricultural growth, and better meet the expectations and aspirations of the people of Vietnam,” he noted.  According to the report, to remain competitive in the international market, Vietnam needs to improve supply, quality, and food safety with added value. It outlines an agenda of short- and longer-term strengthening of public and market institutions which will be needed to achieve the ambitious goals for Vietnam’s agriculture and overall food system. The report notes that Vietnam’s agricultural sector has made enormous progress. The country has emerged as one of the world’s leading exporters of agro-food commodities and is among the top five for aquatic products, rice, coffee, tea, cashews, black pepper, rubber, and cassava.  However, the sector is experiencing a low quality of growth, as shown by low profits for smallholder farmers, considerable under-employment among agricultural workers, unreliable product quality and food safety, and limited technological or institutional innovation.  Agricultural growth has mostly involved an increase in cropping areas or more intense use of inputs (such as fertilizers) and natural resources (such as water).  The report offers various policy recommendations to address the challenges. The government can deploy an effective combination of improved regulations, better incentives and streamlined services to stimulate and monitor a greener agriculture and a more effective food safety and consumer protection system.  It can help with policy instruments to better manage agriculture related risks, as well as create and maintain a favorable enabling environment for agribusiness. Ho Chi Minh City welcomes Italian businesses Ho Chi Minh City highly values Italy’s expertise in urban development, environment clean-up and stands ready to partner with Italian firms operating in trade and transport.  Secretary of the municipal Party Committee Dinh La Thang told visiting Italian Minister of Infrastructure and Transport Graziano Delrio during a reception on September 27. He reiterated the willingness to welcome foreign enterprises, including those from Italy, who are keen on doing long-term business in the city. Delria, for his part, said Italy wants to share experience in transport infrastructure technology with Vietnam, especially in building highways and subways.  In the foreseeable future, Italian businesses want to build metro lines in the city, he said.  The same day, Delrio and Vice Chairman of the municipal People’s Committee Le Thanh Liem co-chaired a meeting between Italian firms and partners from Ho Chi Minh City, Binh Duong, Vung Tau and Can Tho to seek investments in transport infrastructure and urban development.- Vietnam, Japan seek to expand construction cooperation Vietnamese and Japanese construction experts discussed issues related to construction technologies and standards, sustainable urban development and high-quality human resources at a conference in Hanoi on September 26. During the 6th Vietnam-Japan Conference on Construction (VJCC) co-hosted by the Vietnamese Ministry of Construction and Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), participants put forward orientations for cooperation between the two countries in managing investment, cost and quality of construction projects.  In his speech at the event, Deputy Minister of Construction Le Quang Hung affirmed Japan is the leading economic partner and the largest provider of bilateral official development assistance (ODA) for Vietnam .  The two countries have worked together on many great ODA projects in infrastructure and energy, effectively contributing Vietnam’s socio-economic development, he said.  The two sides have coordinated in promoting exchange of all-level visits and organising the VJCC periodically to share experience in construction technology, quality management of construction work, water supply, waste and waste water treatment, eco-city development, and human resources development, he noted.  According to deputy head of the Department of International Cooperation under the Ministry of Construction Pham Thi Hong My, Japan investors poured some 496 million USD into Vietnam in the first six months of this year, becoming the fourth largest foreign investor in the country in the period. Vietnam is now the top selection of Japanese firms in ASEAN.  At the conference, Japanese delegates shared experiences in building and implementing the architectural law (Kenchikushi Law) and related laws, as well as in using foreign employees, managing quality and safety in construction sites.  They also introduced Vietnamese counterparts to technologies in improving land for urban underground works in particular and construction technologies in general. Regarding the use of foreign workforce in Japan , Eiji Aoki from the MLIT said his country considers expanding the residence term for foreign technical trainees in the country to five years instead of the existing three-year term.  Taiji Yanai, vice director in charge of marketing and development in Indochina of Japan’s Taisei Corporation, the construction contractor of T2 terminal at Noi Bai International Airport, said his firm hopes to join more construction projects in Vietnam, committing to ensuring the progress rate, quality and safety of its projects in the country. HCM City holds dialogue with Singaporean businesses Ho Chi Minh City held a dialogue with Singaporean businesses on September 27 to help them remove difficulties and promote investment in the city. Vice Chairman of the municipal People’s Committee Le Thanh Liem recognised the active contributions of the Singaporean Consulate General, Business Association and enterprises to the city’s socio-economic accomplishments over the past few years. HCM City hopes to welcome a new wave of foreign investment, especially from Singapore, in the context that both countries are members of the Trans-Pacific Partnership (TPP). He confirmed that local authorities are ready to exchange opinions with overseas investors, including those from Singapore, in order to ensure their legitimate interests. Singaporean Consul General to HCM City Leow Siu Lin highlighted the economic ties between Singapore and Vietnam, particular HCM City, as a key pillar in the two countries’ relations. The dialogue demonstrates the city’s wish to boost investment cooperation between the two sides, she said, adding that together with the joint efforts of the Vietnamese Government, HCM City’s authorities have worked to improve the investment climate and encourage foreign enterprises to invest in the city. At the event, Liem also introduced to participants new points in Vietnam’s investment policies, and pledged that the city will forge ahead with administrative reform, infrastructure improvement and human resources development to create a favourable environment for foreign investors, including Singaporeans. Singapore is currently the biggest foreign investor in HCM City with around 840 projects worth 9.57 billion USD, focusing on real estate, processing, manufacturing and services. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR