BUSINESS IN BRIEF 2/10 Foreign firms ink deal to build wind power plants in VN   Irish company Mainstream Renewable Power and GE Energy Financial Services have signed a term sheet to develop, build and operate large wind power plants in Viet Nam. The projects are expected to comprise both greenfield and partially developed sites and include co-operation with local and international developers, and receive financing through a Mainstream and GE Energy Financial Services joint development agreement. The aim of the agreement is to complement the 1GW initiative that GE and the Ministry of Industry and Trade signed last May to speed up large wind projects. By combining Viet Nam's abundant wind resource with GE's technology, know-how and in-country manufacturing capability and Mainstream's expertise in development, construction and operations, the partners seek to enable the country to reach its 2020 renewables target. To meet increasing power demand, Viet Nam's Power Master Plan VII foresees increasing output from 194–210 billion kilowatt hours (kWh) in 2015 to 330–362 billion kWh in 2020. As renewables are part of Vi?t Nam's energy mix, this growth in power supply will also boost demand for renewable energy. The country's Sustainable Development Strategy 2011–2020 identifies clean and renewable energy and growing its share in Viet Nam's energy consumption mix as priorities for a sustainable economy. PM approves infrastructure investment in expanded industrial zone Prime Minister Nguyen Xuan Phuc approved investment in the Le Minh Xuan industrial zone expansion project in Binh Chanh District, HCM City. The expansion project, with total area of 109ha, is initiated by Viet Nam's Binh Chanh Construction Investment Shareholding (BCCI). From December 2016 to December 2023, construction of basic infrastructure, roads, drains and sewage systems, as well as water and electricity supplies, will be completed, with focus on the construction of a waste water treatment factory from 2017 to 2023. The project begins operation from the second quarter of 2017. Total project investment is some VND1.147 trillion (US$51.4 million). The expansion project will take place in Tan Nhut Ward and Le Minh Xuan Ward, next to the current Le Minh Xuan industrial zone, west of HCM City. The prime minister assigned HCM City People's Committee to directly monitor the project till its completion. Additionally, he urged relevant authorities to cooperate with BCCI to provide compensation, site clearing and relocation of households whose land has been taken for the project. VIB helps passengers pay train tickets Passengers can pay for their train tickets at Vietnam International Bank's (VIB's) 154 branches and transaction offices nation-wide, starting from October 1, the bank said in a statement on September 29. To do so, they need to book the tickets via Vietnam Railways' official website www.dsvn.vn, through authorised agents or by phone. Later, with the train codes, they can make a payment at the bank's branches and transaction offices. The bank can also print electronic train tickets or boarding cards for all passengers, free of charge. Passengers who are VIB cardholders can pay online. This is the third year the bank has collaborated with Vietnam Railways to pay train tickets online in a move to help passengers save time, especially as the Lunar New Year holiday, a peak time for domestic travel demand, draws near. Credit growth in 9 months rises 10.46% Credit growth in the first nine months of this year rose by 10.46 per cent compared with the end of 2015, the latest report of the General Statistics Office showed. The rise, however, was still lower than the 10.78 per cent recorded in the same period last year. HCM City reported a credit growth of 11.9 per cent for the period, the highest level of increase for the past few years. Capital mobilisation in the first nine months also increased 12.02 per cent against the end of last year. GSO said the deposit interest rate is currently relatively stable, rising by roughly 0.2-0.3 percentage points against December last year. Early this week, some major State-owned commercial banks, such as Vietcombank, VietinBank, Bank for Investment and Development of Viet Nam and Agribank, lowered interest rates by 0.3-0.5 percentage points for deposits in dong with terms of less than a year. The move is expected to help commercial banks save costs to cut lending rates, thereby supporting production, business activities and the economy. Transparency essential to real estate growth It is necessary for housing developers, contractors, banks and State agencies to co-operate in disclosing information about real estate projects to avoid panicking buyers, experts have said. Experts made their comments during a recent online conference held in HCM City by cafeland.vn, discussing how to understand mortgaged real estate projects. The issue had not been discussed earlier,  having been prompted by an incident with the Harmona project in the city's Tan Binh District a few months ago. Six hundred people purchased Harmona apartments, but were later shocked to learn that their homes would be seized by a bank because the developer had mortgaged the building and failed to repay the loan. Pham Ngoc Lien, Director of the HCM City Land Registration Office under the municipal Department of Natural Resources and Environment, said, after hearing about the incident, that city authorities had assigned the office to look into the problem. The office later released a list of 77 projects which had been used as collateral by developers to borrow from banks, with the purpose of improving market transparency and protecting the legitimate rights of home buyers. According to Lien, many customers said that when looking for a house or apartment, they found little information on mortgages on the mass media. Lien said it was time to have a triangular collaboration among localities' departments of natural resources and environment, departments of construction and the State Bank of Viet Nam (SBV) to regularly examine projects to discover incidents, prevent disputes and protect home buyers. Financial expert Nguyen Tri Hieu said that under the current regulations, investors were allowed to mobilise capital from both commercial banks and from the people to help in building projects. "This is a big shortcoming. In the US, real estate businesses can only come to the banks to seek loans. While people have to pay investors a sum of money in advance as a deposit, the investors can not touch the money until they finish the projects." "However, in Viet Nam, allowing investors to, on the one hand, mobilise bank funds while, on the other hand, raise money from buyers, turns buyers into unwilling investors. The situation is likely to cause risks and disputes, and eventually home buyers suffer damages", Hieu stressed. Nguyen Xuan Bac, an official from SBV's Department of Credits, said that the allowance is in compliance with Article 3 of the SBV's Circular 26/2016 dated December 9, 2015. Therefore, the disclosure of projects that were mortgaged was not unusual, but State agencies should come forward to disclose information. Also, enterprises should not be permitted to release information to ensure their objectivity and transparency. Le Hoang Chau, Chairman of HCM City Real Estate Association, said that consumers were facing greater risks when buying a home. Due to this, the State management agencies should proactively participate to ensure that information is updated. Many investors voiced support for mortgaged projects to be publicised, but also said that if the publication is not clear and specific enough, it would negatively affect project developers and the real estate market would also be harmed. Le Huu Nghia, Director of Le Thanh Company, said, in fact, that such mortgages were normal and had been issued for decades. However, some incidents occurring due to investors' weak financial capacity or banks' poor management of cash flow makes this mortgage become "dangerous" in the eyes of customers. According to Nghia, authorities should avoid providing vague information which would lead to misunderstandings and disadvantages for businesses. For example, to implement a project worth VND1 trillion, Company A receives a mortgage of VND45 billion, but should not assume the same liabilities as Company B, receiving a mortgage of VND500 billion. Luong Si Khoa, Deputy Chairman of An Giang Investment Company, said that the disclosure was necessary. However, there should be specific criteria for publication of information to make the process easier and well-founded. Nguyen Khanh Hung, CEO of Green Land Corporation, said that not only listed companies, but also unlisted businesses, must disclose information about mortgaged projects to ensure the project's fairness. At the same time, it was essential to require commercial banks to supply specific information about mortgaged projects, such as project name, name of mortgager, purpose of mortgage and mortgage period. This would help avoid one asset being a collateral at different credit institutions, and avoid customers becoming confused, Hung said. Other information, such as interest rates and payment preferences, was not needed to be made public, as such information was deemed to be confidential, he added. Hung highlighted the role of real estate enterprises and commercial banks in actively releasing information because they were most aware of the problems, adding that State agencies should also have strict punishments for those not fulfilling their responsibilities. Hieu added that the disclosure must be made continuously and should have a specialised agency to carry out this work. Also, buyers and businesses would have to pay a small fee when looking up information. Lien, from the HCM City Land Registration Office, said that at present, constantly updating information on the status of mortgaged projects was a difficult task because it requires the participation of many organisations. The Department of Natural Resources and Environment could only implement the periodic disclosure with a frequency of about 3 or 6 months. Therefore, the most important factor is the actions of businesses and banks in providing information. Then, potential buyers can have access to management agencies to verify the information released. In the near future, Lien said he hoped that a database of projects will be quickly updated by all information sources and be built so that providing information would be a public procedure, and information would be updated continuously in real time. Phu My Hung launches new project Phu My Hung Development Corporation on September 27 launched a new apartment project in HCM City's Nha Be District. Saigon South Residences on Nguyen Huu Tho Street, priced from VND2 billion for a two-bedroom flat, targets young customers. It has six towers with 19 to 29 floors each, with 68 per cent of the units having two bedrooms and measuring 60-70sq.m. The developer said it would offer the best ever payment scheme of 1 per cent a month for 38 months. It has tied up with 30 banks for mortgages. The project's show houses are on Tran Van Tra Street in District 7. PV to sell more stakes State-owned oil giant PetroVietnam has announced a divestment plan for the next five years, after which it will sell majority stakes in a number of its subsidiaries. In its divestment plan—which was submitted to the Government and Ministry of Industry and Trade — PetroVietnam said it has been seeking investors to reduce holdings in PetroVietnam Petrochemical and Textile Fiber JSC (PVTex) from the current 74-per-cent stake to 36 per cent. "It even allows selling entire stakes if partners are found," the report said. PVTex, founded in 2008 with a total investment cost of about US$200 million, is the first polyester fiber plant in Viet Nam. The plant uses feed from Dung Quat refinery to produce polyester fiber with a total capacity of 175.000 tonnes per day. The plant started commercial operation in May 2014 with a capacity of 236 tonnes per day, but it often halts operations due to high inventory and capital shortage. Its charter capital reached VND2.2 trillion ($99 million) by the end of last year. In 2015, PVTex reported total losses of nearly VND1.3 trillion and a negative equity capital of VND504 billion. The company is on the verge of insolvency with huge debts of $221.3 million to lender BIDV and other banks. PetroVietnam is seeking solutions to rescue the company from a possible bankruptcy and to increase its business efficiency. Apart from PVTex, the energy group has drawn a roadmap plan to divest capital from other subsidiary companies from 2016-20, including PetroVietnam Power Corporation (PV Power), PetroVietnam Oil Corporation (PV Oil), Binh Son Refining and Petrochemical Co Ltd and Dung Quat Shipbuilding Industry Co Ltd, in which it holds 100 per cent of charter capital. PetroVietnam has established equitisation steering committees in these companies and hired consulting companies to calculate their corporate values. It plans to reduce holdings in PV Power to at least 51 per cent of capital, in PV Oil and Binh Son Refining and Petrochemical to 65 per cent, and in Dung Quat Shipbuilding Industry to 75 per cent after equitisation. The oil giant is seeking Governmental approval to maintain a 41 per cent stake in Vietnam Energy Inspection JSC. By the end of 2015, the group sold a VND800 billion investment to Ocean Bank at zero d?ng down under the direction of the State Bank of Viet Nam. It also decreased holdings in PetroVietnam Insurance JSC to 35 per cent, in PetroVietnam Transportation JSC to 36 per cent and in PetroVietnam General Service JSC to 24.2 per cent. SCIC unable to sell AMG shares State Capital Investment Corporation (SCIC) failed to sell any of the 5.12 million An Giang Import-Export Company AGM shares on offer with no investor subscribing for the shares. Earlier, SCIC and MB Securities (MBS) announced they would sell the shares, which accounted for more than 28 per cent stake in An Giang Import-Export Company at VND19,000 (US$0.89) per share at an auction in Ha Noi on September 29. However, no registration was recorded until September 28, and therefore, the auction was not held. According to data, it was the second time SCIC failed to sell these shares. In August 2015, SCIC offered each share at the starting price of VND19,200, even though share value on the market at that time was between VND9,500 and VND 9,900. A similar situation occurred this time round. SCIC asked for a price of VND19,000 per share, although AGM's shares were being traded for some VND10,000 on the HCM Stock Exchange . On September 15, when the share price reached its peak, each share was valued at VND12,050, still lower than the asking price. According to local media, SCIC's offer price for AMG shares was too high. Established in 1976 in An GIang Province, AGM was equitized in 2008 and listed on the local market last year. Based in the south of Viet Nam, it is one of the leading local enterprises in food, agricultural material and commercial service. According to reports, in the first six months of 2016, AGM reached sales worth VND912 billion and profit after tax of VND1.3 billion. Currently, Nguyen Kim Development and Investment JSC is the major shareholder in AMG with 51.8 per cent stake. SCIC is the second largest shareholder with 28.17 per cent stake. HNX announces 48 "black-list" stocks on UPCoM The Ha Noi Stock Exchange on September 29 announced 48 "black-list" stocks on the unlisted market to alert and protect investors. The stocks which were listed in the warning set of the investors UpCOM trading system included four stocks that were suspended from trading -- Central Mining and Mineral Import Export Joint Stock Company (MTM), Tây B?c Minerals Investment KTB Phu Thinh Metallurgy JSC, PTK Viet Hai Shipping & Real Properties Corporation VSP JSC, and Shipping and Real Estate Vietnam Customs -- showed serious violations in disclosure obligations. Also on the warning list were 34 enterprises with no positive equity between December 31, 2015 and June 30, 2016. Compared with the previous warning list, it was an increase of five enterprises. The list included Su Pan 2 Hydroprwer JSC (SP2), Dong Nai Roofsheet And Construction Material JSC (DCT), Song Da 1 JSC (SD1) and AnViFish Joint Stock Company (AVF), as well as Bienhoa Concrete Joint Stock Company (BHC), Dong Do Marine(DDM), Giai Phong Motor Joint Stock Company (GGG) and Vietnam Sea Transport and Chartering Joint Stock Company (VST), along with Mien Trung Petroleum Construction JSC (PXM) and PetroVietnam-Nghe An Construction JSC (PVA). There were seven businesses that refused to hand over their audited financial statement in 2015 -- BVG Investment Joint Stock Company (BVG), Song Da-Thang Long Join Stock Company (STL), Song Da 1 JSC (SD1) and AnViFish Joint Stock Company (AVF), as well as Central Petroleum Construction (PXM), Sara Vietnam JSC (SRA) and Viet Nam Construction Joint Stock Company No11 (V11). In addition, they were also firms that showed their audited financial statement in 2014 and/or 2015, such as FBA International Group Corporation (FBA), Cement Joint Stock Company Song Lam 2 (PX1) and Viky Plastic Joint Stock Company (VKP). Specifically, Petroleum Saigon Construction And Investment JSC (PSG), Cadovimex Seafood Import-Export & Processing JSC (CAD) and Song Da 27 SJC (S27) had negative equity and their financial statements differed from the audited ones. Bitel posts double growth in six months Bitel, a telecom service of Viet Nam's military-run telecommunications group Viettel in Peru, reported a turnover of 201 million soles (US$59.2 million) in the first half of the year. The company's growth rate had doubled over the same period last year. The number of Bitel's new subscribers reached 41 per cent, five times higher than the average eight per cent growth rate in Peru's telecommunications sector. The number of people using the internet on their mobile phones in Peru accounted for 51 per cent of the total internet users, seven times higher than that of broadband fixed-line subscribers. Sales of smartphones accounted for 70 per cent of total devices sold in the country. Bitel's 3G service turnover also rose by 4.5 times in the six-month period year-on-year. It is expected to provide 4G services by the end of this year. Its 3G Only service, running on broadband of 900 MHz and 1,900 MHz, currently allows it to provide 4G services. Other network providers in Peru have had to invest more than $1 billion in broadband connections. Bitel plans to achieve three million subscribers this year, double that of last year. "We target meeting the demand of all our customers who currently do not have access to telecom services in Peru," Tào Ð?c Th?ng, Viettel's deputy general director in charge of the Peru market, said. People in remote areas, such as the Amazonas, Lambayeque, La Libertad and Icaand Ayacucho, are still not connected to the internet and do not have mobile phones. Bitel is considered the best internet provider in Peru. Its business results in some African countries have seen strong growth in terms of turnover and subscribers. In the January-June period, Viettel's turnover from its foreign markets reached $493.8 million, posting a 13 per cent year-on-year increase. By the middle of this month, the total number of Viettel's customers in its nine foreign markets of Laos, Cambodia, East Timor and Cameroon, as well as Haiti, Mozambique, Burundi, Peru and Tanzania was up to 90 million people. Viettel, therefore, has been listed among the top 30 telecom groups due to the high number of customers, according to the statistics of GSMA Intelligence. All-new Nissan X-Trail arrives in VN The all-new Nissan X-Trail, already available in 190 markets, has arrived in Viet Nam. To cost from VND998 million (US$45,000), this third-generation car has won numerous accolades around the world and comes with Euro NCAP's 5-star safety standard in 2014 and ASEAN NCAP in 2016 for adult protection. Three variants are available in Viet Nam: the range-topping 2.5 SV 4WD, the 2.0 SL 2WD and the 2.0 2WD. The locally assembled vehicle comes with active chassis control technology enables a smooth, stress-free driving experience. Its active ride control system moderates any pitching motion experienced by drivers on bumpy roads by controlling engine torque and brakes to improve ride comfort. An active engine brake system adjusts the amount of engine braking to help drivers reduce speeds when cornering or stopping. The car is available at all Nissan dealerships from September 28. Vietnam CEO Forum opens in Ho Chi Minh City The Vietnam CEO Forum 2016, themed “Linking Viet Strengths - Time to Walk the Talk”, opened in Ho Chi Minh City on September 30, attracting nearly 1,000 leading domestic entrepreneurs. In his opening remarks, Secretary of the municipal Party Committee Dinh La Thang urged the business community to stay united, share experience and opportunities to take the country forward, adding that they should be the smartest advisors to the authorities and State in terms of policymaking and human resources use. vietnam ceo forum opens in ho chi minh city hinh 0 Nguyen Thu Phong, Chairman of the Young Business People’s Association of Ho Chi Minh City, said entrepreneurs should actively link up together, change their way of thinking to broaden vision and create a win-win playground for all stakeholders. Engaging in a dialogue with the CEOs, Chairman of the municipal People’s Committee Nguyen Thanh Phong answered queries about the State policies towards businesses, and vowed to continue delivering commitments to investors and businesses operating in the city. Participants joined thematic discussions on building strategic linkages toward joining the global supply chain, contributing to enhancing national internal power and the country’s sustainable development. The Vietnam CEO Forum was held for the first time in 2012 and since then has become an annual event, providing a venue for the business circle to connect with each other and with policy makers. Switzerland helps Vietnam develop economy sustainably Switzerland will push ahead economic partnership with Vietnam to help the Southeast Asian country achieve sustainable economic growth. Swiss Ambassador to Vietnam Beatrice Maser Mallor was speaking at a workshop held in Hanoi on September 30 to celebrate 25 years of cooperation between the Swiss Agency for Development and Cooperation (SDC) and Vietnam . The economic cooperation programme will be carried out by the Swiss State Secretariat of Economic Affairs (SECO), she said, adding that the bilateral economic cooperation strategy for 2017-2020 will be announced soon. She noted that the SDC has provided Vietnam with a non-refundable aid package of 216 million SHC (US$222.37 million) from 1992 to 2016 to carry out 32 projects. Switzerland pledges to continue providing development aid for Vietnam so that the country will still enjoy benefits from regional and global programmes of the SDC to address such challenges as climate change, water and food security. Deputy Minister of Planning and Investment Nguyen The Phuong said the cooperation between Vietnam and Switzerland is expanding from education, vocational training, and administrative reform to urban development planning, agricultural livelihood assistance, forestry and environmental protection. The SDC began bilateral cooperation programmes in Vietnam in 1992 with the overall target of poverty reduction. The agency has provided technical and financial support for Vietnam to improve sustainable forest management and local living standards. It was one of the first development partners in Vietnam to propose tackling poverty problems in urban areas between 2000 and 2007. From mid-2000, the Swiss agency focused on projects in the northern mountainous region of Vietnam , where a majority of poor ethnic minority people were living. It also helped Vietnam establish one-stop-shop public administrative centers in 103 districts in nine disadvantaged provinces as well as enable local women to enjoy better income. Lam Dong Arabica Coffee on show in Tokyo Arabica coffee grown in the Central Highlands province of Lam Dong was a hit at this year’s World Specialty Coffee Conference and Exhibition, September 28-30, held by the Specialty Coffee Association of Japan (SCAJ). lam dong arabica coffee on show in tokyo  hinh 0 Widely regarded as one of the biggest coffee exhibition in Asia, this year’s 12th edition held at the Tokyo Big Sight (West Hall 4) was themed – Diversity and Innovation –  aiming to introduce the diversity of specialty coffees from around the globe. There were over 100 coffee-related companies and organizations with more than 196 exhibition booths showcasing coffee’s diversity, as well as new coffee-producing technology and roasting equipment at the extravaganza. Doan Van Viet, chair of the Lam Dong Provincial People’s Committee, said joining the event for the first time this year provided a good chance for Arabica coffee grown in the province to gain worldwide exposure. The event, attended by more than 27,000 guests, generated a lot of interest for Lam Dong coffee businesses and a large number of promising sales leads and sales contracts were obtained, he noted. Masan introduces Vietnamese fish sauce to Thai market In late September, Masan, one of Viet Nam's largest private-sector companies, and its strategic partner, the Thai conglomerate Singha Group, officially introduced its new product, Chin-Su Yod Thong fish sauce, to Thailand. Masan's launch of the Chin-Su Yod Thong fish sauce in the Thai market is considered by market experts to be an audacious step since Thailand is a traditional fish sauce market which exports several kinds of fish sauce products to many countries around the world. In addition, this market is dominated by three famous local fish sauce brands, namely Tiparos, Plamuek and Magachef, which attract up to 90 per cent of the local Thai consumers. Meanwhile, the local press says that Masan, by selling a Vietnamese product in Thailand, is attempting to reverse a trend that has seen dozens of major Thai companies with hundreds of products flood the Vietnamese market. The significant thing is that Masan is not simply exporting its existing fish sauce products to Thailand, but the company has produced a new product for this market. Despite having spent only seven months to produce the Chin-Su Yod Thong fish sauce for the Thai market, Masan is proud of this product and believes that with this product the company will be able not only to dominate the Thai market within three years, but also reach out to 250 million people in the ASEAN market in the near future. Seokhee Won, CEO of Masan Consumer Corporation and deputy CEO of Masan Group, said "Chin-Su Yod Thong is the first step in Masan's journey to globally spread Eastern cuisine culture to ASEAN consumers through the fish sauce taste." What makes Seokhee Won optimistic about the future of the Chin-Su Yod Thong fish sauce in particular and Vietnamese fish sauce in general in oversea markets, including Thailand? "Nu?c Mam", "Nampla", "Ngan bya yay", "prahok" or "padek" is an essential condiment that is consumed with daily meals by the people of Viet Nam, Thailand, Myanmar, Cambodia and Laos. Viet Nam and Thailand are globally recognized as the cradle of fish sauce, where it was created and gradually perfected. Meanwhile, Masan is one of the most successful producers of fish sauce in Vi?t Nam with nearly 50 million families in the country using the company's fish sauce products. It is this success that has encouraged Masan to realise its dream of reaching out to overseas markets, and Thailand is the first destination. To conquer this market, Masan has opted to produce a fish sauce product especially for the Thai market in order to provide Thai consumers with a high quality fish sauce product suitable to their palates. Le Thi Nga, CEO of Masan, said, "We have made serious studies on Thai people's popular dishes, the history as well as the role of the fish sauce in Thai food, and the way the Thai people use fish sauce for cooking their dishes. We have also lived and worked together with Thai cooks in restaurants and also street eateries." "As a result, we created a total of 50 fish sauce samples which allowed us to choose the most suitable sample to develop a new fish sauce product that is really favoured by the Thai people. It is Chin-Su Yod Thong," Nga said. Another advantage that must be mentioned in Masan's journey to conquer the Thai fish sauce market is Singha Group's assistance through Thai Cuisine experts and its large and powerful staff of skilled marketing employees that enabled Masan to introduce its fish sauce directly to Thai consumers. How do Thai people accept the Chin-Su Yod Thong fish sauce?  This fish sauce product was tested by more than 1,000 Thai people including consumers and cooks in Thailand, 95 per cent of which said they loved and wanted to buy this product. 75 per cent said that they were ready to use Chin-Su Yod Thong to replace the fish sauce products they were using, according to a survey made by Thailand's Milk and Cream Market Research Company. "Our purpose is always to improve the material and spiritual life of Vietnamese consumers with products that are branded and recognised thanks to their high quality, deliciousness and convenience. This motto is also applied to Thai consumers," said Seokhee Won. The presence of Singha, which has a strong reputation built over many decades with Thai consumers, in the development of Vietnamese fish sauce will be an important advantage for Masan to realise its aspiration to reach the wider ASEAN market, he said. The Chin-Su Yod Thong fish sauce is produced by modern production lines in Masan's facilities in Viet Nam. It not only satisfies the palate of Thai people, but also Thailand's government standards. KVIP should promote advertisements to attract investors The Korea Viet Nam Incubator Park should promote advertisements to attract more companies, Truong Quoc Hoai Nam, vice chairman of People's Committee of Can Tho City, said at meeting on releasing the development plan of the park. Pham Minh Quoc, director of the park, said at the meeting in Can Tho City on September 28 that the park, located in Can Tho City, has operated for one year and, at present, has had two companies relocate to the park to begin manufacturing. The Nhat Viet Company has manufactured fish powder using microorganism technology and Hoang Thang Company has improved its sowing machine. So far, the park has received registration from five companies interested in investing in the park, said Quoc, adding that the park would choose among these applicants, and is expected to have more companies moving to the park by the end of 2016. He noted that the park has advertised itself and cooperated with local and foreign partners to exchange information and seek to promote itself in the market, as the park was set up for farming and fishery processing, as well as mechanical industry. Companies that locate to the park must have new ideas in production and business. Those conditions, however, will limit the number of companies joining the park. In addition, Viet Nam's enterprises, especially farming and fishery processing companies, have been cautious about registering investments in the park because they have put in place processing contracts for export products, he said. The park has not contracted for professional advertising, which would affect potential companies' abilities in approaching the park. At present, the park has put into operation equipment and machines for mechanical manufacturing, as well as processing of farming and seafood products, worth US$2 million. However, Nam said the park has not had specific development plans, so related parties, such as the park's management board and Can Tho's departments of science and technology and of industry and trade, as well as the Can Tho Enterprise Association, should develop specific plans to attract more investors to the park. In addition, the park has had difficulties in raising capital for equipment and machines, as well as land for enterprises developing projects. Nam further said that the management board must require enterprises to pledge that after developing their technology for production, they must install the technology in Can Tho City. The park, managed by the Korea-Viet Nam Incubator Development Centre, has a total capital of $21 million, including $17.7 million from South Korea and the remaining from Viet Nam. The park has received a total area for building of 4.5ha, including three main office regions, a laboratory area with modern equipment for research and testing product quality and facilities for production of products researched at the park. There also is an incubator of research and development techniques, consulting for the training of workforces for small and medium sized enterprises in Can Tho City and provinces in Cuu Long River Delta region, including firms in producing and processing agricultural and seafood products and manufacturing of mechanisms for farming and fishery industries. It also expected to have support for enterprises in researching and reforming technology in those industries to improve quality and create added value for their products. Gov't to fund smaller enterprises Small and medium-sized enterprises can now get loans at preferential interest rates from a fund  operated by the Ministry of Planning and Investment, a meeting heard in HCM City on September 29. Hoang Thi Hong, chairwoman of the Small and Medium Enterprise Development Fund (SMEDF), said the fund began functioning last April and has identified three lenders, Vietcombank, BIDV and HDBank, through whom to lend to SMEs. They have started to receive applications for loans, she said. H?ng said the fund's main aim is to minimise mortgage requirements. Bui Hoang Tung of SMEDF's monitoring and risk management division said SMEs need to otherwise fulfil a number of conditions, including having feasible production or business plans in prioritised areas. The maximum loan is 70 per cent of fixed cost – it does not provide working capital -- and must be repaid within seven years. Borrowers can prepay the loans without penalties. Tùng said the fund has four lending programmes. SMEs working in innovation and creativity are entitled to loans of up to VND10 billion (US$448,430), he said. The limits for supporting businesses in agro-forestry-fisheries and electronics and mechanical engineering are VND20 billion and VND25 billion, while SMEs operating in wastewater treatment can borrow up to VNÐ25 billion, he said. The loans carry a fix interest rate of 7 per cent, he added. Hong said apart from VND2 trillion provided by the Government, SMEDF would also source capital from the private sector to increase its corpus. To Hoai Nam, deputy president of the Associations of Small and Medium Enterprises, said there are more than 500,000 SMEs in the country, accounting for more than 90 per cent of all companies. They face difficulties due to limited competitiveness and funding, but the fund is expected to provide them with new opportunities, he said. HCMC sees substantive GRDP growth HCM City's Gross Regional Domestic Product (GRDP) reached VND732. 44 trillion (US$33.2 billion) in the first nine months of the year, up 7.76 per cent against the same period last year, according to the municipal People's Committee. During the period, the growth rate of the service sector was 7.78 per cent; the industry and construction sector 7.77 per cent and the agriculture sector 5.5 per cent. The city's export revenue was estimated to reach $22.7 billion, up 1.68 per cent.   Speaking at a meeting held on September 29, Nguyen Thanh Phong, chairman of the People's Committee, said the city would achieve its target of reaching a GRDP growth rate of 8 per cent this year. However, the city still faces challenges, including sluggish improvement in economic competitiveness. The city's Department of Industry and Trade and the Trade and Investment Promotion Centre in cooperation with other agencies were asked to improve trade and investment promotion activities at home and abroad, and expand export markets. He asked the leaders of departments, agencies and districts to complete their action plans on seven breakthrough missions. The missions include: improving the quality of human resources; administrative reform; economic growth and competitiveness; reducing traffic jams and accidents, flooding and pollution; and beautifying and developing urban areas. According to the city's Steering Centre of Urban Flood Control Programme, as of mid-July, there were 59 construction projects illegally encroaching on water-release gates, manholes and canals. Poor management by local authorities was the cause, according to recent inspections, Le Van Khoa, deputy chairman of the municipal People's Committee, said. "In the coming time if any district has sewers, manholes and canals flooded and blocked, the chairman of that district's People's Committee must bear responsibility before the municipal People's Committee," he said. He also told the city's steering centre and districts to prepare pumps to prevent flooding during heavy rains. He said the steering committee in cooperation with the city's Department of Information and Communications should encourage local television and other media outlets to inform the public about flooding sites during heavy rains or storms. Nation must improve economic competitiveness: think-tank Viet Nam must continue to maintain stability, accelerate restructuring and improve the competitiveness of the economy in the face of ongoing global headwinds, members of a think-tank report. Deputy Prime Minister Vuong Dinh Hue asked members of the National Financial and Monetary Policy Advisory Council to closely monitor the financial situation throughout the world, during their third-quarter meeting in Ha Noi today. The members agreed that it was necessary for Viet Nam to create a stable business and investment climate, renew its growth model and expand labour productivity. Viet Nam has targeted its gross domestic product (GDP) to grow at 6.7 per cent, along with exports to grow at 6-7 per cent, next year. Further, the consumer price index (CPI) is expected to rise by some 4 per cent, with total social investments accounting for some 31.5 per cent of GDP in 2017. Deputy Minister of Planning and Investment Dao Quang Thu announced these figures after the country's goal of reaching 6.7 per cent economic growth this year has proven largely unfulfilled. There is, however, a strong possibility that the GDP will grow by 6.3 per cent and the CPI will rise by less than 5 per cent in 2016, he said, adding that total social investments have reached more than VND1 quadrillion, or US$44.44 billion, during the first nine months of the year. Thu said the slow recovery of the global economy is likely to impact on Viet Nam's export growth next year, while uncertain global oil prices and risks of inflation caused by adjustments in domestic healthcare and education services are resulting in macro-economic imbalances. Meanwhile, Nguyen Thi Hong, Deputy Governor of the State Bank of Viet Nam, said that inflation has "basically been stable", although the central bank pumped a "relatively large" amount of money into the economy to support economic growth this year. Hong added that the central bank has steadied treasury bill and government bond issuances with foreign exchange buys to assure appropriate monetary operations. State bond issuances alone have amounted to VND250 trillion this year, in line with national quotas. She also said that a change in the central bank's operations of exchange rates, with the reference rate now adjusted daily, has reduced foreign currency speculation and eased pressure that could cause interest rate hikes. Overall, credit growth is likely to reach targeted levels of 18-20 per cent this year, she said. Members of the council recommended that the Ministry of Planning of Investment build a set of criteria to assess the efficiency of investments more precisely. This will assure authorities have a clearer look about how to assist enterprises and foster economic growth. Economist Tran Dinh Thien said although start-ups are now encouraged in national development schemes, new firms should not be established too hastily, because inventories and bad debt remain major issues that the country has to deal with. FPT cuts loose distribution and retail arms Vietnamese software giant FPT plans to decrease its holdings in FPT Retail and FPT Trading due to the sectors’ decline in revenue. fpt cuts loose distribution and retail arms hinh 0 The corporation has decided to focus on the telecommunications sector, according to newswire Saigondautu.com.vn. In the first half of this year, FPT Trading saw a decreasing revenue because it lost the position of sole distributor of Iphone products. Accordingly, other large retail chains, including Thegioididong, FPT Shop, and Vienthong A, have been licensed to distribute Iphone products as of September 2015. In addition, the revenue from distributing Microsoft mobile phones decreased because Microsoft launched only a few new models. The bleak trading results are expected to last by the end of this year. Regarding FPT Retail, which owns the FPT Shop chain, it has difficulties in competing with the Thegioididong chain. The rival is currently the largest technology product distributor, with a 35 per cent market share in mobile phones and related accessories, tablets, and laptops. As of late August 2016, FPT Shop owned 350 stores, up 100 units compared to the same period of last year, however, the figure is only one-third of the number of Thegioididong stores. FPT’s divestment of both subsidiaries is expected to be completed by the end of this year. The money from the sales will be used to invest in the corporation’s key business sectors, software and telecommunications, through M&A deals in line with FPT’s long-term business strategy. Notably, FPT will buy the entire state-owned stake which the State Capital Investment Corporation (SCIC) will divest from FPT Telecom where SCIC currently owns a 50.02 per cent stake. In 2014, FPT spent VND280 billion ($12.59 million) on buying  4.33 per cent of FPT Telecom, increasing its holding to 45.55 per cent. The purchase, which may be closed in 2017, is expected to boost FPT’s revenue because, with a 45.55 per cent holding, the profit from FPT Telecom makes up 35 per cent of FPT’s profit. Established in 1988, FPT operates in four key sectors, including technology, telecommunications, technology product distribution and retail, and education. The decrease in revenue in the distribution and retail sector brought bleak trading results in the first months of this year. Notably, in the first half of 2016, the corporation earned VND17.82 trillion ($801.4 million) in revenue and VND1.26 trillion ($56.7 million) in after-tax profit, signifying a respective decrease of 8 and 7 per cent in revenue and after-tax profit, respectively. Vietnam suspends rice exports to US after pesticide violations The US rejected 1,700 tons of rice from Vietnam during January-April. Vietnam’s Ministry of Agriculture and Rural Development has decided to temporarily put on hold exports of rice to the US due to pesticide residue issues. The decision was made after the US discovered high levels of pesticide residue in shipments of Vietnamese rice, the Cong an nhan dan (People's Police) news site reported on September 29 quoting Vo Thanh Do, deputy director of the Department of Agriculture-Forestry-Fisheries Processing. The suspension is made as the ministry needs time to handle the issue to avoid a ban on Vietnamese rice imports from the US, Do told a seminar in the southern city of Can Tho recently. The Vietnam Food Association cited information from the US Food and Drug Administration (FDA) as saying that in the first four months of this year, the US rejected 94 rice containers from Vietnam, which are equivalent to around 1,700 tons of rice. In the first eight months of this year, Vietnam exported 22,084 tons of rice to the US, falling almost 33% from the same period last year, according to Vietnam Customs. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR