BUSINESS IN BRIEF 20/10 Gas traders claim compensation Some 800 small and medium sized gas trading companies have submitted a proposal to the Prime Minister Nguyễn Xuân Phúc and Minister of Industry and Trade Trần Tuấn Anh on gas trading requirements. They have asked to maintain the current regulations on requirements for gas trading under Decree No. 19/2016/NĐ-CP. The businesses proposed that if the government reduces the requirements, they would claim compensation for the several billions of đồng they had invested in gas infrastructure. Recently, several gas traders complained about shortcomings in the decree, leading to difficulties. They said the decree’s regulations stipulating that gas companies have storage tanks and total LPG bottle capacities of at least 2.62 million litres were hard to fulfill, especially for those in remote and mountainous areas with low population density. Therefore, they asked for a review and amendment of the rules to facilitate trading as each gas company would have to invest VNĐ25-30 billion (US$1.1-1.3 million) in the gas tank system when applying for a business licence. Lê Xuấn Tuyến, director of Việt Xô Gas Joint Stock Company in northern Thái Bình Province, said the company had to borrow a huge loan from banks to invest in the infrastructure to meet the requirement. The decree was promulgated on March 22, 2016, replacing Decree No 107/2009/NĐ-CP on November 26, 2009, on gas trading to facilitate gas companies. Tuyến said the lower storage tanks and total LPG bottle capacities were one-third of what was stated in the previous decree. It meant that the decree allowed gas traders with low capacities to participate in the market, affecting other gas companies. Sharing his ideas, Nguyễn Minh Châu, director of Thanh Hóa Petroleum Company, said smuggled gas trading is popular in the market. In case of a fire or explosion, it was hard to hold traders responsible for the violations. ‘If the government continues to lower the business regulations, the ministry should consider compensating us for our loans from the bank for investment into gas infrastructure,” Châu added. Lê Khắc Lãm, director of Hoàng Lãm Transport and Trading Company, said the decree clearly stipulates the business models of gas importers, exporters, producers and processors, as well as distributors, agents and gas shops. It meant that companies could choose a business model suitable with their capacity. Lãm said some agents could take advantage of the reviewed rules (if approved) to become distributors despite the lack of storage tanks and total LPG bottle capacities. “It will be good if there are more number of traders participating in the market. However, those who do not meet requirements of infrastructure could cause unhealthy competition and be unsafe for customers,” he added. He proposed that the government and the ministry maintain the conditions. In a conference held in Hà Nội last month, deputy minister Trần Quốc Khánh affirmed that the ministry has asked relevant departments to collect gas firms’ ideas to submit to the government for review with an aim to provide the most favourable business environment to the firms. Hanoi’s condo market sees transaction slowdown The condo market in Hanoi City in the third quarter of this year saw transactions and supply slow down compared to the previous three-month period, Savills Vietnam said in a quarterly report released on Wednesday. Do Thu Hang, head of market research at Savills Vietnam, said the city saw 17,000 apartments offered in the primary market, down a slight 2% versus the previous quarter. There were 13 projects launching additional condos onto the market and 10 others offering new flats with the combined supply of 5,700 units, a 6% decline. Homebuyers in the capital city bought 5,700 units, dropping 6% from the previous quarter and 15% year-on-year. Medium-end  condos posted the highest sales for the sixth consecutive quarter, accounting for 51% of the total sales volume in the period. Prices of medium-end  apartments were stable while those at projects with nearly finished infrastructure saw their prices increase. Besides, transactions of high and low-class apartments also improved, Hang said. A report of CBRE Vietnam, meanwhile, showed that condo supply in Hanoi in the third quarter tumbled 38% from the same period last year. Notably, the high-end apartment supply increased strongly with around 3,000 units launched onto the market, making up 45% the total offered. Between January and September, clients bought 14,200 flats with medium-end  condos making up nearly 50% of the total sales. Savills Vietnam estimated the market would have 13,000 more condo units in the last quarter of 2016, mostly from the medium-end   segment in Tu Liem, Thanh Xuan, Tay Ho and Hai Ba Trung districts.  Affordable commercial condos have emerged as a new spotlight in Hanoi with most products from Ha Dong, Tu Liem, Thanh Xuan, Hoang Mai and Long Bien districts. The condos cost around US$1,000 per square meter. Japan firms to help Binh Thuan grow Mentha arvensis Japanese enterprises will help farmers in the central province of Binh Thuan grow Mentha arvensis, a plant of the mint family, and consume the final products, the Japan International Cooperation Agency (JICA) announced on October 13. The program is part of a project to develop agriculture in irrigated areas of Phan Ri Town and Phan Thiet City of the province, which is implemented under a cooperation agreement between JICA and the provincial Department of Agriculture and Rural Development, JICA said in a statement. Major activities of the project include cultivating the plant that is said to be suitable with soil conditions of Binh Thuan, and equipping local farmers with techniques on irrigation to help them earn more income. Mentha arvensis will be grown on 32 hectares of An Binh Commune, Bac Binh District in the initial phase. The plant contains the highest oil volume in the mint family, the statement said. Peppermint oil is used as material for many different products from foodstuff to pharmaceutical products, which explains the high demand for the oil. Vietnam also has several mint species but they generate low volume of oil and can only be used in food processing. Currently, Bac Binh District is using official development assistance (ODA) loans from Japan to develop agriculture in low-rainfall areas. Binh Thuan has a low annual rainfall of 800-1,500 millimeters. During this year’s dry season, water shortage destroyed over 15,000 hectares of paddy fields and 3,000 hectares of other crops in the province, forcing the local authorities to seek financial aid from the Government to support farmers. Problems spotted in tax refund, debt collection The Government Inspectorate has diagnosed multiple problems in the management of value-added tax (VAT) refund and tax debt collection at the HCMC Department of Taxation. Specifically, the number of dossiers for tax reimbursement yet to be resolved at this agency is relatively high, 20%, as per Notice 2695/TB-GI on inspection of the municipal tax department published by the Government Inspectorate this Tuesday. In addition, post-refund checks fail to timely meet the requirements of management, with 61.4% of the papers one year overdue. Thus, the Government Inspectorate believes the HCMC Department of Taxation has not timely prevented, corrected and handled the cases of infringement via examinations after tax refunds. Thirteen enterprises have been found using invoices ineligible for tax refund. Therefore, more than VND1 billion in refunds should be taken back, including VND352.5 million in VAT and VND670 million in corporate income tax. Meanwhile, the State inspector has identified 44 companies as buyers using illegal invoices, those ineligible for tax filing and refund, with nearly VND26.4 billion to be collected and reduced. Besides, there are 18 buyers making use of 349 business invoices with VND201.6 billion worth of goods and services and VND19.75 billion of VAT refunds. They keep fleeing and displaying signs of invoice trading. With respect to tax debt management, the Government Inspectorate says the HCMC Department of Taxation has not strictly implemented this job, as the data reported does not fully and accurately reflect the actual figures. The municipal tax department is said to lack responsibility and determination in the application of coercive measures for collection of tax arrears. For example, the agency has not frozen and deducted money from the accounts of 25 companies with tax arrears totaling VND321.8 billion, and not applied other strong measures to 82 firms with liabilities totaling VND457.4 billion. This is the reason why tax debts have kept surging, especially those longer than 90 days (over VND10.6 trillion as of September 2014, accounting for 60%). Similarly, the management of land rent arrears is not tight enough in the absence of instructions and checks for inaccurate data. The Government Inspectorate has detected 10 organizations with overdue debt, but the sub-departments in charge have done nothing to fine those with late payments, with a total of VND3.58 billion payable to the budget. The same occurs with 638 households and individuals, with as much as VND100.7 billion yet to be paid as of September 2014. The Government Inspectorate stresses the HCMC Department of Taxation has not timely sent land rent debt notifications to 40 organizations, not frozen and deducted money from the accounts of 28 units with tax arrears of VND542 billion, and not adopted other coercive measures towards 12 units with VND427.3-billion debt. Cruise tourism off to good start Vietnam’s cruise tourism has entered its peak season, which lasts from October this year to April next year, with a positive start as local travel firms have reported large volumes of international tourists visiting the country by cruise ship. Saigontourist Travel Service Co. on October 13 welcomed 3,200 tourists and crew members from the U.S., UK, Australia and Canada, who came to Vietnam aboard the cruise ship Mariner of the Seas of cruise line Royal Caribbean International for touring the central and southern regions. Within today, Saigontourist is expected to receive the ship Voyager of the Seas of Royal Caribbean International, which carries the same number of passengers, to visit Nha Trang, Vung Tau and HCMC. As for this month, Saigontourist has been booked to cater to foreign tourists who will arrive in Vietnam on the SuperStar Virgo vessel of Star Cruises and the Costa Victoria ship of Costa Crociere S.p.A to tour Halong, Danang, Hue and HCMC. Viet Excursions Co. said it received a small international cruise ship on October 13 which transported hundreds of tourists to Ba Ria-Vung Tau Province. The company will get busier in the coming days as more international cruises will arrive, including the first ship of Malaysian cruise line Dream Cruises, which is expected to bring tens of thousands of guests to Vietnam this season. Vu Duy Vu, deputy general director of Saigontourist, said the company has yet to have specific data on the number of visitors coming by cruise ship for this peak season. However, he said, this year’s cruise tourism will see growth in tourist arrivals, from both traditional markets such as Europe and the U.S., and the new market China. He explained that Southeast Asia is now not only an attractive destination for cruise tourists but a source market for international cruise lines, which helps attract more tourists to Vietnam. “Currently, many cruise ships have switched to Southeast Asia, such as Mariner of the Seas. The number of tourists they attract from the region, including Vietnam, has increased steadily and therefore, many cruise lines have stopped over in the region more often to pick up local tourists instead of only sending in foreign tourists,” he added. Phan Xuan Anh, chairman of Viet Excursions, shared the point, saying that the business situation is quite good this season and the company has seen a year-on-year rise of 10% in the number of cruise visitors. Aside from cruise ships from Europe and the U.S., the company has welcomed guests from Chinese-speaking markets. Economist says second reform needed A second economic reform is now imperative in response to the possible influence from the neighboring country and international integration as a whole, said an economist. “The past five years is the most difficult period ever since Doi Moi (renovation) kicked off 30 years ago... We have to perform a second renovation, or else how could we endure the powerful impact from the upcoming ‘hard-landing’ of China?” President of the Vietnam Institute of Economics Tran Dinh Thien raised this question at the Vietnam Economic Forum 2016 themed the challenges of restructuring and its prospects in Hanoi on October 12. This was initiated in the context a new restructuring scheme was being discussed at the ongoing plenum and would be put forward at the next sitting of the National Assembly (NA). Thien remarked the process of restructuring was lacking of motivation, confidence and optimism as in the period of Doi Moi. As a result, it is making very slow progress, with limited achievements, far from the objectives and expectations. Public investment has not essentially changed, with “ask-and-give” as a pillar, while the budget problems have become more serious with government debt on the rise. Though the banking system has survived the turbulent times, its bad debt remains virtually intact, and even tends to go up. Meanwhile, businesses are generally weak, especially domestic firms, both State-owned and private, with poor strength and competitiveness. The modest results of restructuring suggest the growth pattern has not really changed, Thien noted. This leads to a series of questions: are there any problems in the method of restructuring in the past five years? Are certain links tenuous or missing, such as “restructuring of the apparatus in charge of restructuring”? It is essential that the problem of restructuring be readdressed since integration will soon move into a qualitatively new stage, Thien said. In 2015 alone, Vietnam completed negotiations and entered a series of new-generation trade agreements, with many partners as the economic powerhouses, the U.S., Japan, Canada, Australia, 27 EU economies, Russia and South Korea. The terms of these agreements set very high qualifications and standards, and require strict enforcement. “Vietnam must fundamentally change its core to ‘cling’ to such structure of integration, thereby enjoying the benefits of integration and moving forward. That means we must aggressively carry out restructuring, which should be geared towards modern integration, ensuring compliance with integration commitments,” Thien said. A particularly important factor with a very powerful impact on the thinking and direction of economic restructuring in Vietnam in the coming time is the prospect of the Chinese economy, with a “hard landing” said to be inevitable, he added This colossal economy will certainly cause major structural shocks for the world. Meanwhile, Vietnam, as the country located near China and quite heavily dependent on this economy, is experiencing a very tough time. The problem for Vietnam, Thien said, is how to minimize the “shocking” impact from the “landing” of China and to quickly get rid of her structural dependence on this economy. Administrative procedures cost much more than measured A conference was held in HCMC on October 12 for enterprises and authorities to discuss ways to quantify the costs for finishing administrative procedures more effectively, contributing to eliminating shortcomings in the country’s procedures at different levels. Attending the event, which was organized by the Government’s Advisory Council for Administrative Reform in collaboration of the United States Agency for International Development (USAID), enterprises and business associations said the real cost for completing administrative procedures is far higher than it is measured now. It is because the tool for measuring the costs of administrative procedures still has many limitations. To evaluate the impact and rationality of administrative procedures, the Ministry of Justice developed the tool in 2014 provided in Circular 07/2014/TT-BTP to measure the total sum that enterprises and local citizens have to spend on those procedures. So far, the tool has provided a foundation for assessing the administrative reform from the central to local levels so that the country can easily come up with specific solutions for further reforms. According to enterprises, the tool fails to cover full expenses and time that they have to spend on finishing administrative procedures, saying the costs for traveling and time for waiting to get approved procedures are different in each locality. For example, it costs a company in Ca Mau Province in the Mekong Delta higher than a firm in Hanoi when it comes to finishing procedures at a ministry-level agency, they said. Circular 07 bases the cost calculation on the hourly income of an average worker at VND17,310, or a monthly wage of slightly higher than VND3 million. This sum is in fact the GDP per capita of the country, and should prove right when citizens perform such administrative procedures as marriage or birth certificate registration. However, when it comes to an enterprise, the base cost of VND17,310 an hour is incorrect, since the average income of a worker at an enterprise is much higher. In addition, there are many types of spending which have not been included in the measurement tool, such as the expenses of consultancy, translation, and consular legalization of foreign documents, which always cost enterprises dearly. FTA with EAEU still exposes businesses to challenges The free trade agreement between Vietnam and the Eurasia Economic Union (EAEU) grouping Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan has removed export tariffs but Vietnamese firms still have to face many obstacles to make use of this opportunity. Speaking at a seminar on speeding up exports to the EAEU organized in HCMC on October 12, Trinh Thi Thu Hien, head of goods origin unit under the Ministry of Industry and Trade, said that the pact has removed 60% of export tariffs to the market, including those on products in which Vietnam is strong. For instance, exporters of apparel products have seen the tariff dropping from 15% to 0%, leather shoes and handbags from 5-10% to zero. The agreement has also lifted the 10% tax rate on Vietnamese seafood and 100% of tax lines on plastic products, including 97% on plastic home appliances. Despite many opportunities, Vietnamese enterprises are facing numerous difficulties in penetrating the market. According to the ministry, local firms have met with tough competition in terms of price, design, quality and transport against other countries such as China, Thailand and India. Notably, transport from Vietnam to the market is costly and time consuming. Kazakhstan has suggested the Ministry of Transport consider cooperation to transport goods from Vietnam to Lianyungang Port (China), with its 49% stake belonging to a Kazakhstan railway firm. From the port, goods will be transferred to Kazakhstan and EAEU member countries, helping Vietnamese companies cut transport time. Conference highlights bill on supports to SMEs A conference was held in Hanoi on October 19 to collect ideas on the draft Law on Support to Small and Medium-sized Enterprises that will be debated during the 14th National Assembly’s second session starting from October 20.  Speaking at the event, jointly held by the Ministry of Planning and Investment (MPI) and the United States Agency for International Development (USAID), MPI Deputy Minister Dang Huy Dong noted that small and medium-sized enterprises (SMEs) form the backbone of the economy.  SMEs currently account for more than 97 percent of total firms, employing over 50 percent of the country’s workforce and making up 40 percent of GDP, he said.  However, he held that despite the great contribution, SMEs are facing many difficulties and obstacles in accessing resources such as credit, land for production and market.  The bill aims to synchronize support policies and programmes for SMEs to fit the economic targets and orientations of the country as well as strengths of specific localities and resources for each period, he said.  It also creates a legal framework for mobilising the engagement of the private sector as well as domestic and international organisations in the Government’s efforts in backing SMEs, while tackling problems in policies and implementation of supports for SMEs.  Le Van Khuong, head of the Office for SMEs under the Business Development Department, revealed that the bill comprises six chapters and 45 articles focusing on basic supports for SMEs, including regulations in entering and retreating from the market, accessing finance and credit, technology, production ground, market expansion and promotion, public purchase, and training.  The support will be offered through mechanisms and policies as well as favourable conditions for intermediary organisation to provide assistance services for SMEs. The firms will be aided in business model transformation, creative renovation and joining production chains.  Khuong added that the bill is suitable with Vietnam’s commitments to the Trans-Pacific Partnership, which is expected to create more jobs from the private sector, contributing to helping Vietnam reach the target of one million firms in 2020.  Meanwhile, Gloria Steele, USAID Vice Director for Asia, asserted that the creation of a dynamic environment for SMEs is necessary, facilitating the development of Vietnam , one of the fastest growing economies in Asia.  The USAID will accompany Vietnam in designing policies to support SMEs, she pledged. Bulgarian firms learn about investment chances in Binh Duong Bulgarian entrepreneurs visited the southern province of Binh Duong on October 19 to learn about investment opportunities in the province, especially in the Vietnam-Singapore Industrial Park (VSIP).  At a working session with the Bulgarian visitors, executives of the Vietnam-Singapore Industrial Park Joint Venture Co. Ltd (VSIP) introduced activities of the company, which was set up in 1996 by Binh Duong’s Becamex IDC Corp. and foreign partners led by Singapore’s SembCorp.  VSIP has now become a leading industrial developer in Vietnam with seven IPs in the provinces of Binh Duong, Bac Ninh, Quang Ngai, Hai Duong and Nghe An, and Hai Phong city.  The company’s IPs have attracted more than 630 projects worth over 9 billion USD invested by businesses from 30 countries and territories. VSIP has also provided jobs for more than 174,000 people.  Bulgarian businesspeople took the occasion to ask about the fields prioritised for investment and business partnership opportunities with the VSIP company. They were also interested in investment attraction policies and relevant procedures in Binh Duong.   Bulgarian Minister of Economy Bojidar Loukarsky said he is impressed with the province’s modern infrastructure, open investment attraction policies and simple administrative procedures.  He also spoke highly of VSIP’s operations and considered it a role model industrial park that should be increased. Mekong Connect-CEO Forum 2016: Seeking chances in challenges The Mekong Connect – CEO Forum 2016 will take place in the Mekong Delta city of Can Tho on October 26, expected to attract more than 600 businesspeople, managers and experts. At the event, themed “Seeking chances in challenges – Facing climate Change, Environmental Risks and Integration Concerns,” participants will discuss vital issues for the Mekong Delta region. Announcing the main activities of the forum on October 19, Vu Kim Hanh, Chairwoman of the Business Association of High Quality Vietnamese Products (BA) , said this year’s event will see the attendance of 100 farmers producing clean or VietGap products.  Truong Quang Hoai Nam, Vice Chairman of the Can Tho People’s Committee, hoped the forum will become a place where managers, businesspeople, experts and farmers to share their successes and failures in their work, thus seeking effective measures to boost the regional economic development.  It will also help managers grasp the situation of enterprises in order to devise policies to support their production and business, he said.  Within the framework of the forum, an exhibition showcasing agricultural products of the Mekong Delta will be held. Workshop seeks to boost Vietnam-China trade A workshop was held in the Chinese central province of Hunan on October 19 to promote cooperation between Vietnam and China in economics, trade, investment, and tourism. The event was organised by the Vietnamese Embassy in China and Hunan provincial Department of Commerce as part of the ongoing 2016 ASEAN-Hunan Famous Brand High-Quality Products Trade Fair. Minister Counsellor at the Vietnamese Embassy in China Nguyen Dac Thanh said the workshop enables businesses to study cooperation opportunities and potentials in the context of the recent establishment of the ASEAN Economic Community and the growing friendship and cooperative ties between the two countries. He noted that with the goal of raising bilateral trade to 100 billion USD in 2017, the two sides have continuously undertaken measures to expand partnership in economics, trade, and investment in a healthy, stable and balanced manner while encouraging businesses to expand partnership. According to the diplomat, the Vietnamese government is committed to creating the best possible conditions for foreign enterprises, including those from China, to do business in Vietnam. Vietnam also welcomes Hunan businesses to invest in projects suitable with the country’s sustainable development strategy, especially in construction materials, supporting industry, equipment and machinery, electricity, renewable energy, and green growth, he said. Vietnam-China trade surpassed 66 billion USD in 2015 (China’s statistics 95.8 billion USD). China has been the biggest trade partner of Vietnam for the past 12 consecutive years, while Vietnam became the largest trade partner of China in ASEAN in 2015 for the first time. As of July 2016, Chinese firms injected nearly 11 billion USD into 1,500 investment projects in Vietnam, ranking ninth out of the 110 countries and territories investing in the Southeast Asian nation. China is the leading country in terms of number of tourists to Vietnam, and it is also one of the most popular destinations for Vietnamese travellers. Close to 2 million Chinese vacationers arrived in Vietnam in the first nine months of 2016, a year-on-year increase of over 55 percent and equal to the total figure of 2015. Livestock show draws over 300 businesses The 2016 Vietnam’s Premier International Feed, Livestock & Meat Industry Show (Vietstock 2016) kicked off in Ho Chi Minh City on October 19 with the participation of over 300 businesses from 35 countries around the world. Held every two years by the Department of Animal Husbandry under the Ministry of Agriculture and Rural Development, the event aims to assist the sustainable development of animal husbandry. On display are livestock varieties, husbandry equipment, machinery for cattle-feed processing factories and animal medicine. According to head of the animal husbandry department Hoang Thanh Van, the sector is undergoing a shift from small-scale farming to industrial livestock production to ensure food safety and reduce environmental pollution. Particularly, the industry has recorded high growth over the past 15 years, he said, adding that Vietnam has become one of the leading animal feed producers in ASEAN. The exhibition is expected to help businesses access scientific and technological advances in the field and market information as well as exchange experience and seek partners, he added. The event will run until October 21 at the Saigon Exhibition & Convention Centre. Vietnam joins ASEAN-Hunan high-quality product trade fair Twenty-five Vietnamese exhibitors joined the ASEAN-Hunan Famous Brand High-Quality Products Trade Fair that opened in Changsha city, the capital of China’s Hunan province on October 19.  With the support of the Vietnamese embassy’s Trade Office in China, nearly 70 Vietnamese stalls showcase specialties such as coffee, cashew nut, handicrafts and processing food, among others.  Exhibitors from other ASEAN member states display farm produce, electronics, handicrafts, household appliances, cosmetics and gemstones.  The five-day fair offers an opportunity for Southeast Asian nations, including Vietnam, to boost their trade and investment cooperation with China and Hunan province in particular.  As of August 2016, 85 Hunan businesses had invested 469 million USD in Vietnam, mostly in mining, construction materials and machinery. Vietnam is currently the largest trade partner of Hunan in ASEAN. Vietnam, Spain businesses seek transport cooperation The ICEX Spain Trade and Investment and the Spanish Embassy in Vietnam hosted a programme in Hanoi on October 19, seeking to connect Spanish and Vietnamese companies in internationally-funded projects.  The event saw the participation of 15 Spanish enterprises leading in transport infrastructure, energy, traditional energy, renewable energy, and environment.  Addressing the event, Deputy Minister of Transport Nguyen Ngoc Dong highlighted the cooperation between the two countries, particularly in public transport.  He expressed his hope that on the occasion, Spanish enterprises will pay more attention to transport projects, particularly in public transport, which is prioritised by the Vietnamese Government.  Spanish Ambassador to Vietnam Alfonso Tena Garcia said Spanish businesses in Hanoi, Hai Phong and Da Nang city are operating effectively. He hoped that through the programme, Spanish businesses will work with Vietnam in developing transport infrastructure network, while focusing on such sectors with huge potential as the environment and energy.  Nguyen Danh Huy from the Ministry introduced a number of transport projects to the guests, including the North – South highway project, the Long Thanh International airport, the Lach Huyen sea port, the Van Phong port, the Hanoi – Vinh railway express project.  Spanish transport industry earned 88 billion EUR, ranking second worldwide.  Spanish enterprises joined and supervised a number of key projects in many countries, including the Metro Line 5 project in Ho Chi Minh City in Vietnam. Vietnam International Fashion Fair 2016 to kick off in Hanoi The 20th Vietnam International Fashion Fair (VIFF) 2016 is set to take place from December 22-26 at the International Centre of Exhibition, 91 Tran Hung Dao, Hanoi.  The fair, which is part of activities in the national trade promotion programme, will house over 400 booths featuring famous fashion brands in garment-textile, leather footwear, cosmetics, jewelry and beauty care services. Covering 5,000 m2, the event, jointly held by Vietnam National Textile and Garment Group (Vinatex), Vietnam Exhibition Fair Association Centre (VEFAC), Vietnam Leather, Footwear and Handbag Association (LEFASO) and Cosmetic Magazine, is expected to draw 450 enterprises and 20,000 visitors.  The annual fair is an opportunity for domestic and international fashion businesses to meet and seek partners, while providing a platform for enterprises and designers to introduce their products to customers.  The VIFF, which is a traditional activity of Vietnam fashion industry, has contributed to the sector’s development and supported businesses in boosting exports and trade in the domestic market over years. Circular on electronic certificate of origin issued The industry and trade ministry has enforced Circular No. 22/2016/TT-BCT, which pertains to the use of electronic certificate of origin (C/O) under the ASEAN Trade in Goods Agreement (ATIGA). The circular, which comes into effect on November 15, stipulates that electronic C/Os will be created based on the ‘C/O of D’ sample and can be transferred online through the ASEAN single window system. An electronic C/O will have the same legal effect as a physical, paper C/O. It can be applied, granted and used as a paper C/O. The checks on electronic C/O applications will be similar to those on the paper ones. Related parties, including producers, exporters and organizations that grant C/O, have to keep the C/O data for five years from issuing date instead of the current three years. The circular replaces the Circular No 42/2014/TT-BCT. At the start of the year, ASEAN member countries agreed to review some of the content in the ATIGA. Later, the ASEAN secretary board submitted a request to the mid-term ASEAN Free Trade Area (AFTA) for the revision of two items -  one, a list of information and technology goods, and two, administrative procedures for granting C/O and check-ups to apply C/O. In March, AFTA approved the list of the Information and Technology Agreement (ITA) as per HS 2012. 4 mega exhibitions attract thousands of industrialists Four mega exhibitions, METALEX Vietnam, Business Alliance for Supporting Industry, NEPCON Vietnam, and Industrial Components & Subcontracting Vietnam, held earlier this month in HCM City, attracted more than 18,630 trade visitors from 48 countries. Isara Burintramart, managing director of Reed Tradex Co., Ltd., which organised them, said: "We selected Viet Nam not only for being Asia's top destination for investment but also for its growing role as a manufacturing hub. "Industrialists know that opportunities are here, and they will need to move quickly no matter how rapidly the changing business environment may be. "I believe the powers of four events combine will not only foster better collaboration and communication between industrialists, but will also encourage the exchange of best practices among local and overseas business delegates." The events featured 3,139 exhibitors and more than 500 booths and 11 international pavilions. The expos also included a "Koma Taisen" competition won by the Ba Ria-Vung Tau Province Vocational College's Team 2, engineering demonstrations, technology presentations and a hand-soldering competition won by Nguyen Van Thanh Thuo of Spartronics Vietnam Co., Ltd. Park Young Tahk, executive vice chairman of the Korea Association of Machinery Industry, said: "Viet Nam is one of Korea's important overseas markets for machinery and metalworking solutions. Hence, we decided to bring 12 companies under the Korea Pavilion at Metalex Vietnam to raise awareness of Korean technologies and develop strong yet resilient business relationships with potential customers."  "We believe that high quality-products from the Tokyo Pavilion can help Vietnamese companies grow and also encourage new players to enter supporting industries," said Tatsuya Noma, senior director of the commerce and industry division, Bureau of Industrial and Labor Affairs, Tokyo Metropolitan Government. Ronnie Wong, chief operating officer of the Association of Electronic Industries (AEIS), said that the electrical and electronics industries in Viet Nam are growing at tremendous speed and they are prominently promoted by the Government. Viet Nam needs supporting industries to accelerate the growth. "AEIS brought 25 companies to Nepcon Vietnam to support industries as well as set up branches and joint ventures." Next year Metalex Vietnam will be held from October 4 to 6 in HCM City. Nepcon Vietnam will celebrate its 10th anniversary when it is held in Ha Noi from September 13 to 15.  Vietstock Expo and Forum 2016 opens The Vietstock Expo and Forum 2016, which began on October 19 in HCM City, features many new innovative products and the latest advances in the livestock sector. As the country's premier international feed, livestock and meat industry show, the event has attracted leading manufacturers and suppliers from 35 countries and territories, including the US, the Netherlands, Italy and China. The three-day show expects to welcome over 9,000 distributors, nutritionists, feed millers and farmers looking to source new advanced technologies as well as seek co-operation opportunities. "We want to build a bridge to connect local and international livestock stakeholders. Through this, Vietnamese will be able to apply knowledge and technologies to enhance the safety and quality of their products to compete in local and international markets," said Rungphech Rose Chitanuwat, business director of UBM Asia, an organiser of the event. Along with technologies on display, a number of forums will discuss the most pressing issues facing the industry. For the first time, an Aquaculture Viet Nam 2016 Conference will be held to discuss domestic aquaculture, fisheries and seafood supply chain. The exhibition, held at the Sai Gon Exhibition and Convention Centre in District 7, ends on Friday.  Viet Nam International Industrial Fair 2016 Opening in Ha Noi The 25th Viet Nam International Industrial Fair (VIIF 2016) opened in Ha Noi on October 17 at the Hanoi International Centre for Exhibition (ICE). Deputy Minister of Culture, Sports and Tourism Huynh Vinh Ai, speaking at the opening, affirmed that the 25th VIIF was of significant regional and global importance. In a total exhibition area of 4,500 m2, exhibitors have introduced many modern products and technologies in the manufacturing, automation, energy sectors and supporting industries. This year, in addition to the usual exhibitors, VIIF 2016 has attracted more than 100 newcomers from countries and territories such as the Republic of Tatarstan, South Korea, China, Taiwan, India, and Japan. Most notable amongst the exhibitions was a welding robot from distributor New Century International Co., LTD, TIG welder from Japanese producer OTC-DAIHEN, as well as hydraulic accessories and air compressors from China Hydraulics Pneumatics & Seals Association. The fair will conclude on October 20.  Viet Nam's food products introduced to European customers Nearly 30 Vietnamese enterprises have brought Viet Nam's food products to the Paris international food industry expo - SIAL Paris 2016, which kicked off on October 16 at the Paris Nord Villepinte convention centre. Vietnamese products, including rice and products from rice, pepper, cashew, vegetables, honey and coconut, are displayed in an area of 250sq.m. Viet Nam's participation in the four-day expo was part of the strategy of building recognition of the national brands for Viet Nam's food industry in the global market, especially in Europe and France, and to promote exports of Vietnamese food products throughout the world. Viet Nam's Ambassador to France, Nguyen Ngoc Son, said at the opening ceremony of Viet Nam's pavilion, that the exhibition was an important gateway for Vietnamese enterprises to introduce their products and penetrate into French and EU markets. The European market is one of the most stringent markets in the world and has had high requirements for quality and food safety, Son said, so attending the exhibition would help Vietnamese enterprises to improve standards on food safety and hygiene. This year, Viet Nam has displayed many kinds of products with new product designs, packaging and high-tech production processes to meet the demand of foreign customers, he said. Nguyen Vu Loc, general director of Western Export Food Processing Joint Stock Company (Westfood), said his company has displayed frozen and canned fruit products, including mango, pineapple, papaya and guava. Of those products, mango was one of the key exporting products to other countries, accounting for 70 per cent of Westfood's total fruit export volume, he said. Meanwhile, other kinds of export fruit products still face stiff competition from fruits exported from Thailand, the Philippines and Indonesia. To enter the global market, Westfood has improved production and processing lines to ensure the quality of those products, he said. Stephane Horvil, a representative of French Distri Plus Company, said his company has done business with Westfood for 12 years, along with 40 other Vietnamese enterprises, to import frozen products to France and Europe, as well as find partners and markets for Vietnamese firms and farming products. He highly praised the prospects for exports, though Viet Nam started later than firms in Thailand and China. Some Vietnamese firms have built reputations and brands on exports to the European market, so they can now compete with Asian firms to export fruits to France and the Europe. Distri Plus has gained success in investments in Viet Nam, with average export volumes of 100 containers of food per month, earning US$80 million per year. He said Viet Nam still has opportunities to increase revenues for the export of food products in the future. SIAL Paris 2016 takes place every two years, drawing some 7,000 enterprises from over 100 countries. The food industry is one of France's key industries, with annual revenues of 170 billion EUR ($187 billion). Nhon Trach 2 company posts high Q3 profit Nhon Trach 2 Power Joint Stock Company (NT2) in southern Dong Nai Province reported an impressive after-tax profit of VND164.7 billion (US$7.35 million) in this year's third quarter. The profit is up 1.38 times against the same period last year. In its Q3 financial report, the company also posted a turnover of more than VND1.525 trillion in Q3, up 19 per cent year-on-year. With the Q3 results, the company's after-tax profit in the first nine months rose 24 per cent year-on-year to VND860.1 billion. In the first nine months, the company produced 4.025 billion kWh for the national grid. The company is estimated to produce some 1.35 billion kWh for the national grid in the last quarter of the year. The company is also scrutinising and upgrading legal regulations related to the power industry to be able to take part in the competitive power generation market next time. The company's power output this year is estimated at 5.5 billion kWh, generating VND1.25 trillion, up one per cent and 9.5 per cent from the previous year, respectively. The company has made a proposal to PetroVietnam to build two more power plants -- Nhon Trach 3 and 4. Each would produce 750-800 MW, at a combined construction cost of more than $700 million. The Nhon Trach 2 company was listed among the top 50 enterprises with the best annual reports and among the top 30 of the VN HOSE index (HCM Stock Exchange), with a growth rate of 70 per cent following two years of public listing.  Masan Beverage plans to raise ownership in Vinacafe Bien Hoa to 70% Masan Beverage Company Limited (Masan Beverage) has offered to buy 9.84 per cent of Vinacafe Bien Hoa Joint Stock Company to raise its ownership in the coffee producer to 70 per cent. Masan Beverage, a member of the consumer goods producer Masan Group (Masan), plans to buy 2.61 million shares of Vinacafe Bien Hoa for VND170,000 (US$7.55) per share, making the total value of the deal VND444 billion. Masan Beverage is now holding nearly 16 million shares of Vinacafe Bien Hoa, equal to 60.14 per cent of the coffee company's capital. Vinacafe Bien Hoa is now listed as VCF on the HCM Stock Exchange. VCF share yesterday jumped 7 per cent to close at VND158,300 after the information became public. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR