BUSINESS IN BRIEF 12/10 Foreign investors to meet in annual investment conference   More than 250 financial experts and investors from Vietnam, Thailand, Malaysia, Japan, Singapore, the US and the EU will attend the second foreign investment conference in Ho Chi Minh City on November 4.  Co-hosted by the Ho Chi Minh Stock Exchange (HOSE) and financial data provider Stoxplus, the annual conference themed “Vietnam Stock Market: On the Way to Emerging Markets” will discuss promoting Vietnam’s securities market to an emerging market (EM) classification.  HOSE Deputy General Director Tran Anh Dao said foreign investors will be provided with information about Vietnamese government activities to accelerate the upgrade Vietnam’s securities market to EM status.  They will learn more about a regulation allowing them to increase up to 100 percent of voting shares in a Vietnamese public company.  A majority of foreign investors agreed that Vietnam is increasingly attractive thanks to its economic stability and the high potential of its private sector.- Decree sets out business fee structure Organisations dealing in production and business activities, with a charter or investment capital of more than 10 billion VND (444,440 USD), must pay a business fee of 3 million VND per year. This is stipulated by Decree No 139/2016/ND-CP which was issued on October 4 will take effect on January 1 next year. The decree requires organisations with a charter or investment capital of less than 10 billion VND to pay a fee of 2 million VND per year. For branches and representative offices of the organisations, or non-productive units, the annual fee is 1 million VND. The decree states that individuals and households involved in production and business activities generating annual revenues of more than 500 million VND must pay a fee of 1 million VND per year. Individuals and households with annual revenues of 300 million VND to 500 million VND, are subject to a fee of 500,000 VND per year. Those with annual revenues of 100 million VND to 300 million VND will pay 300,000 VND per year. All fees will be cut in half if the organisations, individuals and households are granted tax or business registration codes during the second half of the year. The decree stipulates that individuals and households with annual revenues of 100 million VND or less will not be charged any fees. Individuals and households engaging in irregular production and business activities, or those producing salt, will also be exempt from paying fees. Other groups exempt from paying fees include: organisations, individuals and households cultivating and catching seafood, or providing fishery logistics services; press agencies; and cooperatives dealing in agricultural production services. Wealthy Vietnamese pays US$13.6 million for Australia cattle station This is believed to be the first major purchase that a Vietnamese investor has ever made in Australian agricultural sector. A Vietnamese family has invested heavily in Australia's agricultural sector, signaling a trend of local investors trying to maximize their good fortune across the ocean in Down Under. The family's recent purchase of a 200,000 hectare cattle station is believed to be the first major investment that any Vietnamese has ever made in Australian agricultural sector. Vermelha Station was sold for AU$18 million (US$13.6 million) to An Vien Pastoral Holding and Agriculture company, Australian media reported. There were 10,000 Brahman cross cattle included in the sale. The Australian Securities and Investments Commission lists the major shareholder of the company as Pham Nhat Vu, the chairman of digital television service An Vien Group, ABC News has reported. The station covers an area of 2,039 square kilometers in the Northern Territory. Before the purchase, Luu Minh Ngoc, a real estate agent, said some Vietnamese have poured their money in the Northern Territory’s agricultural sector but most of them are small deals. He said the new owner will either continue to run the station as an agricultural business or just wait to cash in on it as a property investment. Ngoc Mai, who runs a seafood company in Vietnam, said she has purchased a three-hectare farm in northern Australia where she plans to grow Vietnamese fruit and vegetables. The demand for agricultural products within the Vietnamese community in Australia is relatively high, Mai said, adding that she will hire farmers from Vietnam to work on her farm. The Australian government encourages foreign investments in the pastoral industry in the north to make best use of available farmland there. Earlier this year, another Vietnamese company, which was looking to develop a dragon fruit farm, almost managed to buy Vermelha.  CT Group was reportedly willing to spend US$16 million for Vermelha Station, but the deal fell through. Vietnam emerges China’s largest Southeast Asian trade partner The six-day visit by Prime Minister Nguyen Xuan Phuc to China last month, his first since taking office in April, has raised new hope that the two neighbours will take corrective action to redress the balance of trade deficit. Since 1991, when Hanoi and Beijing re-established their diplomatic ties, the total commercial trade of Vietnam with its northern neighbour has risen from just US$30 million to US$66.3 billion in 2015. In 2001 Vietnam incurred its first negative balance of trade with China and the unhealthy trade imbalance has continued to fester ever since. Figures from the General Statistics Office (GSO) show the trade deficit for 2015 was US32.3 billion (US$49.3 billion of imports from China less US$17.0 billion of exports to China). The huge size of the trade deficit highlights the importance of the nation’s trade surplus with the US (US$22.5 billion in 2015), its largest trade partner, and the EU (US$20.6 billion in 2015). Because without the trade surpluses with the US and EU, Vietnam could not offset the trade deficit with China and balance its trade books, a situation that could have serious negative currency ramifications. On a positive note, trade statistics from the GSO for the first quarter of 2016 reflect the trade deficit fell by 15.6% on-year to US$6.5 billion, a rate that if it were to continue would mean the deficit is in a downhill trajectory from 2015 and would hit US$28 for 2016. While this is may be a good sign for the nation’s economy, a US$28-billion trade deficit still represents an enormous deficit. Of course there is always the nagging problem of what many refer to as the ‘informal economy’ which concerns itself with the huge amounts of commercial goods (including counterfeit items) that are smuggled into Vietnam on a regular and ongoing basis from China. These illegitimate, cheap and low-quality products have a pervasive negative effect on the national economy. This is why the visit by Prime Minister Nguyen Xuan Phuc has raised hope among so many that it would help to create a healthier and more sustainable economic relationship with China. According to state media, in his meetings with Chinese officials and leaders in Nanning and Beijing, Prime Minister Phuc talked about improving collaboration between the two countries on economic issues and asked for China’s cooperation in giving effect to measures to bring trade into balance. The Vietnam News Agency quoted the Prime Minister as saying that China would continue importing goods for which Vietnam has a comparative advantage and in the near future authorize the nation to export increased levels of meat, dairy and processed juices within its borders. According to Chinese estimates, the total commercial trade between China and Vietnam will surpass US$100 billion this year, and it will overtake Malaysia to become the biggest trading partner of China in Southeast Asia. Vietnam banks see 2016 credit growth at 21.8 percent: central bank survey Banks in Vietnam expect lending this year to exceed the central bank’s target, growing 21.82 percent from the end of 2015 as improved business conditions have spurred credit demand, according to a new survey by the central bank. The State Bank of Vietnam has targeted credit growth of between 18 percent and 20 percent this year, up from 17.26 percent in 2015. Vietnamese lenders said deposits in the local currency may grow 16.85 percent this year, but they forecast a decline in foreign currency deposits to 6.9 percent, following sharp cuts in interest rates, the survey found. As many as 87.6 percent of the banks participating in the survey said their liquidity in the Vietnamese dong and foreign currencies remained good. Loans between January and September grew 11.74 percent, up from 11 percent for the same period last year, the central bank’s deputy governor Nguyen Thi Hong told legislators last Friday. She also said that the 1.6 percent growth of loans in foreign currencies in the period was in accordance with the government’s policy against dollar hoarding. Some policymakers said the annual credit growth target of 18-20 percent for this year was quite high and risky to the economy. In response, the central bank’s deputy governor highlighted the fact that bank loans remain a key source of funds for the fast-growing economy. She added that with a 15-16 percent increase in loans, local businesses would be faced with a critical funding shortage to expand their business. The central bank has also aimed to bring down bad debts in the banking system to below 3 percent of total outstanding loans for this year. An overhang of bad debts has been a burden on Vietnam’s economic growth since 2012 when total bad debts, mostly in real estate sector, reached VND280 trillion ($12.5 billion), equivalent to 11 percent of gross domestic product. Bad debts in the banking system as of August 31 were reported at 2.66 percent, according to the central bank’s data. Bank lending to the property sector in the first eight months of this year grew 6.73 percent, compared to about 13.06 percent in the same period last year. During the January-August period, banks have fully written off VND58.8 trillion in non-performing loans, official statistics show. The Vietnam Asset Management Company, which was set up in 2013 to buy bad debts from troubled banks, has so far this year tackled with VND16 trillion of bad debts from the books of banks, significantly down from the same period last year, said deputy governor Hong. Vietnam’s economy was originally expected to grow 6.7 percent this year, following 6.68 percent growth in 2015. However a slowdown in the agriculture and mining sectors has forced the government to revise down the 2016 target to between 6.2 percent and 6.5 percent. Vietnam spends $344mn importing Chinese, Thai fruits: customs Fruit-exporting Vietnam has spent more than half a billion U.S. dollars importing fruits in the first eight months of this year, most of which come from China and Thailand, the latest customs data reveals. Vietnam’s fruit exports fetched more than $1 billion in the Jan-Aug period, but imports also rose 36.9 percent year on year to $529 million, according to a report by the General Department of Vietnam Customs. The Southeast Asian country bought fruits from 12 markets, with Thailand and China occupying the top spots with significant increases in import volumes in the year to August. Vietnam imported $218.8 million worth of fruit and vegetables from Thailand in the eight-month period, a 62.4 percent rise on a year earlier, and $125.2 million, up 27.5 percent year on year, from China. Thailand and China collectively accounted for 65 percent of Vietnam’s total fruit imports in the Jan-Aug period, while other markets such as Australia and the U.S. also increased sales to the Southeast Asian country. Fruit imports from the U.S. rose 13.2 percent year on year to nearly $50 million, while shipments from Australia spiked 72.2 percent, topping $30 million over eight months. Despite higher prices, imported fruits have increasingly won over Vietnamese consumers at a time when the food security of local produce remains a big issue. Many cases of fruits being grown or artificially ripened using chemicals have been unearthed in Vietnam, reducing consumer confidence in domestic fruits. French milk brand to quit Vietnam after failing to gain market share Danone Vietnam, a subsidiary of French multinational food company Danone, is in the process of withdrawing its popular milk brand Dumex from Vietnam. A representative from Danone Vietnam has confirmed the exit, attributing it to the limited market share it has been able to gain in the Southeast Asian nation, the Phap Luat Thanh Pho Ho Chi Minh (Ho Chi Minh City Law) news site reported on Saturday. “Therefore, we have decided to gradually put an end to sales of Dumex in Vietnam,” the representative said, adding that the company’s decision is merely a business matter and has nothing to do with Vietnamese government regulations. Some milk agents in Ho Chi Minh City said prices for Dumex products have plunged in recent days and they are trying to sell off their stocks as soon as possible. The prices for the Dumex Gold 3 and Dumex Gold 1 products have been cut by 20 percent to VND440,000 ($19.8) per can and VND290,000 ($13) per can, respectively, said Minh, a milk agent in Ba Hoa Market in Tan Binh District. She had also heard that Dumex will not be sold in Vietnam soon. The exit of Dumex may surprise many as Danone was one of the first foreign milk producers to penetrate Vietnam’s market. Moreover, Vietnam is considered a lucrative market for milk companies, Phap Luat said. Hoang Tung, a local brand expert, said that Dumex is not competitive in Vietnam. “In reality, the dominant milk brands in Vietnam at present are Vinamilk, NutiFood, TH True Milk and Dutch Lady. They have all covered the domestic retail channels such as supermarkets, convenience stores and milk agents. TH True Milk and Vinamilk have even set up their own retail networks,” Tung said. Apart from Dumex, Abbot and Mead Johnson, two other popular milk brands from the U.S., are also competing fiercely for market share in the developing country of more than 90 million people. Ly Truong Chien, chairman of the board of directors at local consulting firm Tri Tri Group, said Danone might have adopted a development strategy for Dumex that was not suitable for Vietnam. It is a lesson in market development for other milk companies, he added. The average annual growth of Vietnam dairy industry hit 17 percent during 2011-2015. Vietnam produced an all-time high of 97,000 tons of powdered milk in 2015, according to data from the General Statistics Office. Overtime cap to increase Vietnam’s strict overtime rules may soon be tempered, as the local labour authorities working on a plan to possibly double the normal overtime cap for factory workers in the months to come. Pham Minh Huan, Deputy Minister of Labour, Invalids and Social Affairs, told VIR that “An overtime increase will be part of the revision of the current Labour Code next year.” “Accordingly, all related factors, including labourers’ health, will be considered before making a decision on how many extra working hours will be allowed,” he said. According to Le Dinh Quang, vice head of the Labour Relations Department under the Vietnam General Confederation of Labour, the overtime limit might be expanded to 400 hours a year for certain businesses in specific areas. But this will take careful thought. According to the Ministry of Labour, Invalids and Social Affairs’ (MoLISA) Department of Work Safety, if employees work one extra hour a day for ten years, their lifespan will be decreased by 6.5 years. Under the Labour Code, which took effect in 2012, a labourer can work a maximum of 200 hours of overtime per year, and 300 hours per year in special cases stipulated by the government. The overtime cap has remained a controversial topic for years. A number of domestic and foreign firms, including those from Japan and South Korea, have proposed increasing the overtime limit to 400 hours a year. They argued that, together with low labour productivity, the existing overtime cap was undermining their competitiveness. According to the Korean Chamber of Commerce in Vietnam, the existing overtime cap may seriously affect business operations and force enterprises to increase the number of shifts during peak-season, which will result in a substantial increase in labour costs. This limitation may impact greatly on foreign investors’ decision to invest in Vietnam. This view was also put forth by the Japanese Business Association in Vietnam. However, over the past years, such a proposal was rejected by the MoLISA many times, which said that the prevailing regulations on overtime protect labourers’ health and curb the abuse of labour. Vietnam’s overtime cap is now equal to half of the 600 hours a year recommended by the International Labour Organization. The country’s overtime restriction of 30 hours per month is also the lowest in the region, compared to 104 hours per month in Malaysia, 36 hours in China, 56 hours in Indonesia, 48 hours in South Korea, 144 hours in Thailand, and unlimited overtime in Cambodia, the Philippines, and Japan. Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry said that, “The government should extend the overtime cap, while keeping the overtime limit below 600 hours a year. Employers and employees should negotiate overtime, with the involvement of trade unions as an important role.” As planned, draft amendments to some clauses of the  Labour Code will be submitted to the National Assembly for discussion in May 2017. If everything goes smoothly, they can be adopted in October next year. Swedish firms covet infrastructure projects in Vietnam Vietnam’s rapid industrialisation and rising demand for high-quality infrastructure is attracting many Swedish firms who wish to engage in assorted infrastructure projects in the country. A delegation of 18 Swedish firms, half of whom operate in the infrastructure industry, and led by Swedish Minister of Trade Ann Linde, came to Vietnam last week. They met with Prime Minister Nguyen Xuan Phuc, leaders of some localities, and many local firms to discuss their upcoming projects in Vietnam. Magnus Zederfeldt, vice president of Axis Communications, said his firm, offering intelligent security solutions, is establishing a large-scale network of partners in Vietnam with multi-million dollar contracts. “We see a growing demand for transport and parking cameras. In response, we are building up an inter-sector network for our products in Vietnam,” Zederfeldt said. While Kapsch TrafficCom wants to find more partners to provide their electronic toll collection equipment, SAAB - a market-leading defence, aerospace and security company - is also seeking to provide its solutions in Vietnam. Mikael Olsson, executive vice president of SAAB’s Marketing and Sales, said SAAB will work with the Vietnamese government about providing equipment and services to the construction of Long Thanh International Airport in the southern province of Dong Nai. “There are few, if any, other companies that can match SAAB’s range of products and services, from fighter aircraft to submarines, from airborne surveillance to ground combat systems, from radars to camouflage or from air traffic management to electronic warfare,” Olsson said. “We are working with the Vietnamese government on these products and services.” Meanwhile, Scania – the world’s leading manufacturer of trucks and buses for heavy transport applications, is also keen to not miss any opportunities in Vietnam. “We want to co-operate with the government and firms to deploy smart transport networks in Vietnam, as well as produce more Scania-branded vehicles in the country,” said Marie Sjodin Enstrom, managing director of Scania Southeast Asia. Scania has been co-operating with several firms to make vehicles in Vietnam since 2007. Swedish Minister of Trade Ann Linde said many other Swedish companies, such as Volvo Buses, Volvo Car Group, Ericsson, and AF, “can offer innovative solutions to new transport projects in Vietnam.” Currently, about 35 per cent of Vietnam’s population of 93 million live in urban areas. This is expected to increase to 50 per cent by 2025. Furthermore, urban areas defined as cities are expected to increase from 700 in 2014 to 1,000 by 2025. The growth in urban areas will create a need for new and innovative public infrastructure solutions, according to the Swedish Trade and Investment Council. Hai Phat kicks off Roman Plaza construction The Hai Phat Investment JSC kicked-off construction of its new project, the Hai Phat Plaza Commerce, Service and Apartment (known as Roman Plaza), in Dai Mo commune, South Tu Liem district in Hanoi on October 8. The project covers 35,900 sq m with investment capital of VND2.5 trillion ($112 million) and is expected to be completed by the second quarter of 2019. The project includes two 25-storey blocks with 804 apartments and duplexes and a low-rise housing area with 39 terraced houses, four detached houses, and 16 duplexes. Hai Phat Investment is a subsidiary of the Hai Phat Group, which has nine subsidiaries and allied companies. It has launched major projects in Hanoi such as The Pride Commerce, Service and Apartment Complex, the Tan Tay Do Urban Area, and the CT2-105 Usilk City - HPC Landmark 105, and cooperated with the Van Phu Investment JSC to build The Van Phu Urban Area and The Vesta. Phu Lam Social Housing, renamed The Vesta, covers 45,093 sq m with an 18-storey building and 1,902 apartments. Hai Phat plans to invest VND2.3 trillion ($105 million) in the project. Hai Phat has three projects that will launch in the near future, including the South-East An Khanh New Urban Area in Hoai Duc district, Hanoi. The Dai Dong A Building in Dai Kim commune in Hanoi’s Hoang Mai district covers 5,000 sq m and has investment capital of VND706.3 billion ($31 million), while a complex including a trade center and office space at Lot A7/CC2 - South Trung Yen in Cau Giay district, Hanoi, is invested by the FICO Service and Trading, Finance, Investment JSC and covers 12,619 sq m. Vietnamese pepper exports surge Vietnam earned 1.2 billion USD from the export of nearly 145,500 tonnes of pepper in the first nine months of the year, a year-on-year increase of 31.5 percent in volume and 13.1 percent in value. The Vietnam Pepper Association forecasted that pepper exports will reach 150,000 tonnes this year. The average pepper export price in the first eight months of the year was 8,141 USD per tonne, a reduction of 13.6 percent over the same period last year. In the domestic market, pepper prices have fluctuated wildly, dropping to around 130,000 VND per kilo in March then jumping to 170,000 VND per kilo in early June and then slumping again. Vietnam accounted for 32 percent of the world’s total pepper output and held more than 56 percent of world market share, according to the association. Vietnamese pepper products are exported to 100 countries and territories, with Asia, Europe and the US being the biggest markets. Do Ha Nam, the association’s chairman, said the industry had seen robust growth, but faced challenges related to climate change and stunted vines on farms. High pepper prices in recent years have persuaded farmers to expand cultivation, even on unsuitable land without any planning, while the overuse of fertilisers has caused plants to degenerate quickly and be more vulnerable to disease. "New free trade agreements will open opportunities for the industry to boost exports but there are challenges, especially in ensuring quality, hygiene and food safety," he said. With import markets like the US and EU demanding higher food safety requirements, farmers, processors and distributors need to focus more on safety and hygiene. The area being used for pepper cultivation has increased rapidly in the past years, reaching 85,000ha by the end of last year. The figure reached 100,000ha by the end of the first quarter of this year, doubling the figure set by the Ministry of Agriculture and Rural Development’s master zoning plan for the development of the pepper industry by 2020. Many farmers in the Central Highlands and southern provinces had chopped down their rubber, cashew and coffee trees to plant pepper. Tran Thi Hien, Deputy Head of the Crop Production and Plant Protection Department in Ba Ria-Vung Tau Province, said under the provincial zoning plan, the province targets to have 8,300ha under pepper cultivation by 2020. But at present, the pepper cultivation area in the province already reached more than 11,160ha, she said. Pepper prices might remain high in the short term, but with the increase in cultivation, supply would exceed demand and prices would drop, affecting the income of farmers, she said. According to an agricultural official in the province’s Chau Duc District, the district has recommended farmers not rush to plant the spice tree, but with the current high profit brought from pepper cultivation, it is very hard to stop farmers from expanding the cultivation. September’s automobile sales surge 13 percent Vietnam’s automobile sales in September shot up 13 percent to 26,551 units against the previous month, according to the Vietnam Automobile Manufacturers Association (VAMA).  During the month, the number of passenger cars sold increased 9 percent to 16,327 vehicles, commercial vehicle sales rose 21 percent to 9,117 units and special-purpose cars sales up 15 percent to 1,107 units. The sales of domestically-assembled cars were 20,566 units, up 17 percent from last month, the number of imported CBUs was 5,430 cars, equivalent to the previous month’s figure.  In the past nine months, auto turnover rose 31 percent compared to the same period last year, with 214,403 units. The sales of passenger cars, commercial cars and special-purpose cars escalated 30 percent, 31 percent and 43 percent, respectively. Domestically-assembled cars and those imported surged by 29 percent and 10 percent, respectively, in the reviewed period. Among VAMA members, the Truong Hai Auto Corporation (THACO) continued to make up the largest portion of the automobile market of 42 percent with 10,104 cars sold in the month. It was followed by Toyota with 5,110 cars (21 percent) and Ford with 2,654 units (11 percent).- Vietnam-China International Trade Fair on the horizon The Vietnam-China International Trade Fair is scheduled to take place in Dongxing city, China’s Guangxi province from November 8-12. The fair will accommodate 834 booths, including 100 of Vietnam, displaying special products of ASEAN member countries, heard a conference in Mong Cai city, Vietnam’s northern Quang Ninh province, on October 10. Nguyen Tien Dung, Vice Chairman of the Mong Cai city People’s Committee, said the city will set up a booth at the fair to introduce products of wards and communes in Quang Ninh province. There will be exhibitions, forums and seminars on cross-border trade and tourism, along with various cultural, sports and tourism activities within the framework of the event. A number of cooperation agreements and contracts are expected to be signed by Vietnamese and Chinese businesses during the fair. The annual fair has been held in Mong Cai and Dongxi cities in turns since 2006, aiming to help the two countries’ enterprises seek partners. The bilateral trade reached 66.6 billion USD in 2015, a year-on-year rise of 13.7 percent, of which Vietnam exported 17.1 billion USD worth of goods to China (up 14.8 percent) and imported 49.5 billion USD in commodities (up 13.3 percent). In the first seven months of 2016, Vietnam’s exports reached 10.85 billion USD (up 14.93 percent) while its imports stood at 16.47 billion USD (down 3.42 percent). In the first half of 2016, China ran 127 new investment projects in Vietnam with the total newly-registered and increased capital of 537.6 million USD. As of July 2016, China (excluding Taiwan, Hong Kong and Macau), secured 1,500 investment projects in Vietnam worth 10.86 billion USD, ranking ninth out of the 116 countries and territories investing in Vietnam.- Around VND178.11 trillion (US$7.98 billion) was lent to more than 19,150 businesses in HCM City in the first nine months of the year under a programme that help connects banks with businesses, according to the State Bank of Viet Nam. Speaking at a meeting held in HCM City on October 10, To Duy Lam, director of SBV's HCM City branch, said the programme had helped 25,769 businesses in the city access bank loans, with a total of VND405.72 trillion ($18.19 billion) disbursed since it began in 2012. Le Duc Tho, general director of VietinBank, one of the pioneers of the programme, said VietinBank had provided a total loan of VND250 trillion ($11.2 billion) in the period from 2012 to the end of last month. In the first nine months of the year, it disbursed VND95 trillion, ranking first among commercial banks taking part in the programme, he said. At the meeting, VietinBank's 21 branches in the city signed contracts to provide a total loan of VND32.87 trillion ($1.47 billion) to 104 small- and medium-sized firms, and businesses operating in the support, hi-tech and agricultural industries and export firms. Including these loans, total disbursement for this year is estimated to be more than VND100 trillion ($4.48 billion), which is VND10 trillion higher than its registered figure for the prgramme this year, he said. Tran Vinh Tuyen, deputy chairman of the HCM City People's Committee, said in the past four years, the programme had enabled many businesses to access bank loans with simple procedures and less time, which greatly increased their productivity. The city has set targets to maintain a high economic growth rate in the 2016-20 period by shifting its economic growth model and improving its competitiveness. It plans to mobilise all resources to fulfill its targets, he said, adding that the city will work to further improve its business environment and better implement policies to boost the development of small- and medium-sized enterprises (SMEs) and start-ups. "The city pledges to implement the programme connecting banks and businesses regularly and effectively, aiming to better support businesses," he said. Tran Viet Anh, chairman and general director of Nam Thai Sơn Group, said the programme had greatly helped ease funding difficulties faced by businesses over the past few years. Representing the SME community, he suggested that banks become more active in supporting business and have fair treatment for all businesses. In addition, banks need to focus more on providing medium-term loans, he said, adding that they should expand lending in the US dollar since the import of machinery and raw materials was at a high level. Anh said the current maximum interest rate of 7 per cent for short-term loans and around 9 per cent for medium- and long-term loans in Vietnamese dong and 3 per cent for loans in the US dollar were reasonable. Lam of SBV said the banking system in HCM City would continue to improve service quality, reform technology and take other measures to cut back input costs to reduce lending interest rates. At the meeting, VietinBank and the HCM City Union of Business Associations signed agreements to promote the programme to enable more businesses to get loans. The meeting was organised by VietinBank, the HCM City Department of Industry and Trade and SBV's HCM City branch.  Fruit and veggie imports hit more than US$500 million Vietnam’s fruit and vegetable exports reached more than US$1 billion while imports jumped 36.9% to more than US$500 million for the eight months leading up to September of 2016, according to the Vietnam Customs. fruit and veggie imports hit more than us$500 million hinh 0 The country imported US$108.4 million worth of fruit and vegetables in August alone, up 55.1% compared to July. This is the first month witnessing an increase in import revenue after a two-month decline. Among 12 major importing markets, Thailand ranked first with US$218.8 million, (accounting for 41.5% of total value and up 62.3%), trailed by China with US$125.2 million (up 27.5%) and the US with US$48.8 million (up 13.2%). Most importing markets posting high growth included Australia (up 172.2% to US$30.1 million), and India (up 122% to US$6.3 million). However, imports from Myanmar, Chile and South Africa dropped 31.85%. 28% and 23%, respectively. Growth target leans on FDI in last quarter While the country’s growth target of 6.7% for 2016 may be out of reach, its economic outlook remains positive thanks to strong foreign direct investment. Prime Minister Nguyen Xuan Phuc last week requested greater efforts from ministries, localities, and enterprises to reach a modest economic growth of 6.3-6.5% this year, which is smaller than last year’s 6.68%. The economy rose quarter-on-quarter since early this year, from 5.48% in the first quarter to 5.78% in the second quarter, and to 6.4% in the third quarter. The Ministry of Planning and Investment (MPI) last week submitted a scenario for 2016 growth to the government for discussion, based on different growth expectations in the fourth quarter. “We can only reach 6.3-6.5% if we put in greater efforts to support enterprises and people,” said the prime minister. For example, he asked the Electricity of Vietnam to ensure sufficient electricity for the entire country from now until 2020. Leaders of ministries and localities are also required to continue devising specific actions in favour of enterprises and people.  MPI Minister Nguyen Chi Dung told the government that in the remaining three months there is still some room to boost the economy-including foreign direct investment (FDI), disbursement of state budget investment capital, and government bonds, as well as improvement of the local demand and consumption. The World Bank last week forecast that Vietnam’s economy is expected to grow only 6% next year, and also 6.3% in 2018. In its update on Vietnam’s economy released in late September, the Asian Development Bank (ADB) also predicted that the economy may grow only 6% this year, and rise to 6.3% next year. However, both banks are optimistic about the country’s outlook thanks to strong FDI. “Vietnam’s medium-term outlook remains positive,” said Sebastian Eckardt, lead economist for the World Bank in Vietnam. “FDI has accelerated in recent months, reflecting positive investor sentiment about Vietnam’s deeper economic integration.” FDI commitments in the first nine months of 2016 rose to US$16.43 billion and the disbursed sum hit US$11.02 billion, up 12.4% year-on-year. It is expected that the figures for the whole year will be about US$24 billion and US$15 billion, respectively, which are higher than last year’s respective figures of US$22.76 and US$14.5 billion. According to both the ADB and the World Bank, buoyant FDI inflows are expected to drive higher growth in manufacturing and construction until the year’s end. Much of this investment is directed to manufacturing to generate a steep rise in production, and exports of mobile phones, electronics, and other products. FDI contributes about 18% of Vietnam’s GDP, nearly a quarter of total investment, two thirds of total exports and millions of direct and indirect jobs, according to the World Bank. All systems go for RE&EE Vietnam Only one month remains to sign up for Vietnam’s main renewable energy exhibition - RE & EE Vietnam 2016. The Renewable Energy and Energy Efficiency (RE & EE) exhibition will take place from November 9 to 11, 2016 at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City. RE & EE Vietnam 2016 coincides with VietWater 2016, an international water supply, sanitation, water resources, and purification exhibition also taking place at SECC. This unique trade exhibition will host over 400 companies from 38 countries and regions, showcasing their latest technologies, solutions, and innovations in the water and energy industries. Some of the companies that will be represented at RE & EE Vietnam 2016 include Asia Electric, Atarfil SL, Azbil Vietnam, C.F. Nielsen, CJR Renewables, Conergy Asia, DNV GL, Donasonic, Ecosphere Renewables, Greenpowermonitor, Ingeteam, Mitsubishi Electric Vietnam, and Passavant Energy & Environment. The exhibition also includes a number of international pavilions, demonstrating the progress of the EU, Singapore, Thailand, and Taiwan in renewable energy solutions. These will cover a wide range of solutions, such as industrial boilers, waste heat recovery, and drying processes and heat exchange processes in power. Breakthrough technologies will also be demonstrated, including solar panels, electric machines, bioethanol technology and control systems, and others. According to Do Duc Quan, deputy director general of the General Directorate of Energy under the Ministry of Trade and Industry, RE & EE Vietnam is a great opportunity for suppliers and professionals in these sectors. Attendees will learn about new technologies, solutions, and products with high productivity, and also be able to share their experiences in managing, operating, and developing their energy industry businesses. More than just an exhibition, RE & EE Vietnam 2016 will also provide insights into the development of the renewable energy and energy efficiency sectors. During the two-day exhibition, many in-depth technical seminars will be presented, relating to off-grid photovoltaic energy production, managing wind and solar projects, briquetting lines, and more. RE & EE Vietnam 2016 will also host the “Vietnam Energy Forum: Towards Sustainable Energy Development in Vietnam”. The forum is presented by leading industry experts such as Do Huu Hao, chairman of the Vietnam Energy Conservation and Energy Efficiency Association, and Huynh Kim Tuoc, director of the Energy Conservation Centre of Ho Chi Minh City. The forum’s experts will share information on Vietnam’s energy market and trends, as well as some recent renewable projects in the country. Digitized’ tailoring booms in Vietnam An entrepreneurial couple in Ho Chi Minh City have created a smartphone application capable of creating custom shirts, while online tailoring services continue to gain a foothold. “I don’t know what’s wrong with this suit, but I certainly can’t wear it,” the foreign boss of Tran Dam Minh Phuong, 33, complains about the outfit he has just paid for. The tailor’s, which Phuong introduced to her boss, has been popular among fashion enthusiasts in Ho Chi Minh City. After years working with foreigners, Phuong realized the importance of a good quality suit to foreign company executives, with a good one helping to accentuate their confidence and personality. Many of these entrepreneurs are also particular about the details, including how to do up buttons, take off their suit jacket, place it on the chair’s arm and even loosen the tie knot, Phuong observed. She realized after an embarrassing situation that arose with her boss that the fine line between first-rate custom-made clothing and its off-the-rack counterparts lies in the sense of confidence and comfort that they give the owners.  It was then that Phuong and her husband decided to open a small shop specializing in Western-style suits, ensuring they satisfied even the most fastidious customers. A perfectly fitted garment needs exact measurements, which can only be taken by professional tailors. This poses a considerable problem as few people can now afford the time to go to the tailor’s. Phuong and her 34-year-old husband, Nguyen Ngoc Lam, visit those clients in close proximity to their homes to take measurements, but have had their hands tied with those residing in suburban districts, other provinces or countries. Phuong later came across an online measurement-taking application on the Internet, introduced by an American man. The man claimed that the application could take measurements in less than 30 seconds, adding that it guaranteed more precise measurements than conventional methods. It dawned on Lam that the application adopted math and spatial geometry formulae. After days groping for the algorithm and programming, he finally came up with the formulae. Delving further, he discovered that the app developer had hired nearly 1,000 people with a wide array of physiques, builds, measurements and weights to create a database of measurements both with the device and manually in order to compare and perfect the differences. The metrics were then subcategorized, each with a different formula, as people with the same height and weight may have different builds. Over one year later, Lam’s online measurement app was finalized and launched onto the market under the name UKYS. “It was then tested on thousands of body types to design the optimal algorithm. We believe that UKYS is a new approach to tailoring that enables skillful tailors to supply a service to people they have never met,” Phuong said about her startup project. Using clients’ photos taken as per the app's instructions, UKYS converts the data into a comprehensive body metric as would a seasoned tailor. Choices about fabric and shirt details are then made available to users who are also able to customize things like collars and cuffs. Upon receipt of all of the measurement data and the user's style preferences, the production team, comprising a 15-year-old family tailoring business in the UK, will then tailor the shirts according to the information captured by the app. The app is presently only compatible with iOS devices. The application first attracted attention on crowd-funding website Indiegogo (US). In August 2016, Lam and Phuong claimed first prize at “The Ambassador’s Entrepreneurship Challenge” with their smartphone app for iPhone/iPad users. The competition, organized by the U.S. Embassy in Vietnam, was designed to spur young local entrepreneurs to launch a startup project and help create a healthy startup ecosystem. The couple’s app has also drawn big names in the textile industry including Albini and Dormeuil, who have sent staff to Phuong’s showroom in a small alley to introduce their products. “We didn’t think our app would get this much attention. Our foreign partners said they could visualize a new future for the garment industry based on our approach,” Phuong said. Phuong and Lam are highly dedicated to their job. A Japanese man once came to see the couple, admitting to them that he had been expelled by a famous tailor because of his relentless insistence that his suit be readjusted several times. He wondered whether Phuong and her husband could satisfy his very specific preferences. Phuong said that she and her husband would buy imported suits costing dozens of millions of dong each (VND1 million is equivalent to US$44) and take them apart for their inner workings. A number of Vietnamese seamstresses have said they are no stranger to technically demanding foreign techniques, but are reluctant to adopt them as the time-consuming method raises the price, and in any case, most customers cannot really tell the differences. Phuong ensures that all of her clients go home satisfied with their outfits, no matter how many readjustments she and her husband have to make. Minh Tam, a designer in Ho Chi Minh City, who ran a tailoring shop in District 3 four years ago, is now doing good business from her rented apartment in Phu Nhuan District. On her tastefully designed “Tam Fashion” Facebook account, Tam showcases an assortment of her designed dresses and provides them with counseling and handy instructions on how to collect their measurements and pick the right styles and fabrics. “I can make a nicely fitted garment, including evening gowns, wedding gowns and ao dai [the traditional Vietnamese long gown] just by asking my clients to give me a photo of themselves, their body dimensions, height and weight and some special physical features,” Tam said. Her clientele range from locals to foreigners and Vietnamese expats. With today’s Internet boom, even modest tailoring shops located in small alleys have begun digitizing their services. These shops typically demand a deposit of 50% of the garment’s value in advance. The garment will be returned to the tailor’s and readjusted several times if it does not fit or look good on the wearer. Danish robot producer reaches out to Vietnamese market Universal Robots hopes to tap the demand for industrial automation in Asia with its collaborative robotic products. Denmark’s Universal Robots (UR), one of the biggest producers of industrial robots, has announced a plan to enter Vietnam, where the demand for automation to boost economic growth is very strong. UR will partner with other companies to supply products and services related to automation solutions at reasonable prices, according to a post on the Ministry of Industry and Trade’s website. General Manager of UR in Asia Pacific, Shermine Gotfredsen, was quoted as saying that Vietnam is a market with countless development opportunities, especially in the small and medium-sized enterprise sector, which makes up a large chunk of the economy. The company believes that its advanced robot technology can be used by many Vietnamese businesses to streamline repetitive work and handle risky processes. Vietnam is the sixth Southeast Asian market of the company. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR