BUSINESS IN BRIEF 11/11 Domestic coal stockpiles mount as imports surge The Vietnam Ministry of Finance has flatly rejected a proposal to lower taxes on fuel, a move that many industry experts believe would stimulate domestic sales of coal, reducing the country’s mounting inventories. As an alternative, the Ministry recommended raising the country’s annual coal export target from the current 2 million tons per annum to 3-4 million tons for the three-year period 2017-2020. Raising the export target, said the Ministry, is a better approach to solving the problem than cutting taxes as it can specifically target getting rid of stockpiles of low quality coal without lowering general fund budget revenue. Vietnam changed from being a long-time net exporter of coal to a net importer in 2015, said the report, principally on the back of a large influx of inexpensive foreign coal in 2015. Not only did the imported coal sell for much less than domestically produced coal, but it was of a much better quality and more aptly filled the needs of domestic purchasers, the report continued. State-owned mining company Vinacomin had prodded the Ministry to rollback a tax hike it imposed last July raising the national resource taxes for two different grades of coal by 3-4%, claiming that the hike had negatively impacted its domestic coal sales.  But the Ministry flat-out rejected Vinacomin's proposal, citing the government’s general fund budget concerns and the need for time to accurately assess the full impact of the newly imposed tax hike. Meanwhile Nguyen Khac Tho of the General Directorate of Energy said the latest statistics from the General Department of Vietnam Customs showed that for the first nine months of the year the country’s cumulative coal imports jumped 147.6% on-year to 10.1 million tons valued at US$629.5 million. Mr Tho noted the 10.1 million tons is already 7 million tons past the 3.1-million-ton import target set for the entire 2016 fiscal year. Last year the country’s coal exports plummeted by 75.9% from 2014 to 1.7 million tons, said Mr Tho, while imports surged 123.8% to 6.9 million tons. He said it’s the lower foreign coal prices that are driving the surge in imports, adding that the quality of domestically produced coal just isn’t there— and doesn’t match that of foreign produced coal as well. Most of coal mined in Vietnam comes from deep reservoirs, even some as far down as 300 meters below sea level. This in large part explains why the cost for domestic coal production is so high.   The segment is also plagued with a lot of outdated technology, which results in considerable additional cost when compared to foreign miners that use newer mining technologies at a much lower cost. In response, Vinacomin management has instructed its affiliates to cut costs, closely follow the market's requirements and strictly supervise the quality of coal and delivery schedules to stabilize production and reduce inventories, Mr Tho noted. State power giant reports US$32 million loss, blames stronger yen Power monopoly Electricity of Vietnam has reported losses of nearly VND717 billion ($32 million) in the first half this year, saying the stronger Japanese yen has increased its loan burden. The latest financial report from Electricity of Vietnam said its revenue increased 17.25% in the first six months of 2016 from the same period last year to nearly VND130.7 trillion (US$5.85 billion). But at the same time, overheads such as interest on loans, transactions and commission fees and insurance almost doubled to VND15.46 trillion (US$692 million). Dinh Quang Tri, deputy CEO of the power giant, said: “The specific cause of the loss was the stronger yen.” Tri said the company would have made a profit if it had not lost VND6.37 trillion (US$285 million) due to the value of the yen increasing 17% this year. According to a report from the government, EVN topped the list of state firms with foreign debts at the end of 2014. The group borrows a lot under Japan’s development assistance programs. One of its big units, the Power Generation Corporation 1, now owes US$301 million in yen, local media has reported. Hoang Quoc Vuong, deputy minister of Industry and Trade, said EVN’s huge loss will put pressure on power prices and the government might have to "adjust" those prices at some point. But according to economists, losses due to foreign exchange changes are not a reasonable excuse for price hikes. Economist Vu Dinh Anh said that any business that takes out foreign loans should be prepared for foreign exchange fluctuations with provisions to prevent price changes. He said if EVN wants to raise prices, it needs to provide a detailed report that outlines all related income and expenses. “The report needs objective assessment. Currently, EVN’s reports are only reviewed by the Ministry of Industry and Trade and that is not convincing,” he said, as cited by Tuoi Tre (Youth) newspaper. EVN made a profit of nearly VND890 billion (US$40 million) during the first half of 2015. But as of the end of June, the company owed banks more than VND475 trillion (US$21.3 billion), and was paying more than US$1.7 million in interest a day, according to the report. Loans guaranteed by Vietnam’s government reached US$26 billion at the end of 2015, and EVN accounted for 37.3%of the total. Cashew prices are about to go nuts Prices of raw nuts hit a 10-year high in October as demand surged. Demand for cashew nuts has skyrocketed over 50% since 2010, industry data showed. Meanwhile, the worst drought in a century in Vietnam, the largest exporter, has raised concerns over supply shortages. As of October 30, prices of raw nuts in Vietnam jumped to VND52,000 (US$2.33) per kilogram, the highest in the past decade, compared to VND38,000 early this year, according to the country's cashew association. Average export prices also surged 20% between January and August, reaching US$8,000 per ton. Excessive heat and low rainfall linked to the El Niño weather phenomenon in the main grower countries, including Vietnam, have affected both the quality and quantity of the crops, which could lead to shortages next year. Vietnam has lost a fifth of its harvest so far, causing domestic prices to rally. “Cashew nut consumers may face hefty price rises through next year due to adverse weather,” according to the Vietnam Cashew Association. JYSK presses on in Vietnam Danish JYSK Group, a well-known international retail chain, opened another store in Vietnam last week as part of its business expansion in the lucrative Vietnamese interior-decor market. Nguyen Quoc Vinh, CEO of NeatClean, the franchise partner of JYSK in Vietnam, told VIR, "The new store is the fourth facility in Hanoi and the fifth in Vietnam since we started operations in the country in 2015." The new facility is located in Lo Duc Street, with a total area of nearly 1,200 square metres. JYSK stores bring a unique and homely Scandinavian style for Vietnamese households. "We are seeking favourable locations for four to five other stores in both Hanoi and Ho Chi Minh City next year to meet the growing local demand for lifestyle and interior décor products," he added.  These stores are part of JYSK’s plan to open a chain of 10-20 stores in Vietnam by 2020 and capitalise on steady growth rates, a growing consumption base of currently more than 90 million people, the strategic location in Southeast Asia, the young population, and fast growing middle class. According to NeatClean's recent study, amid fierce competition from other famous brands in the local market, the watershed between success and failure is selling price.    "We expect that when the Vietnam-EU Free Trade Agreement (FTA) takes effect in 2018, JYSK will enjoy import tariff cuts, enabling us to reduce  prices and gain competitiveness in the Vietnamese market, which has become a magnet to a number of foreign players in the field," Vinh noted. NeatClean, which was established in April 2015 by founders operating in retail, trade, import-export, and interior-décor, will take responsibility for developing JYSK's interior-décor retail network in Vietnam.  As a leader on the European market in all articles for the bedroom, bathroom, living-room, the window, and the patio, JYSK currently has over 2,300 stores in 43 countries across the globe. The company’s turnover is 2.8 billion euro. Ford recalls over 1,000 units in Vietnam Ford Vietnam is recalling over 521 Ford Everest and 539 Ford Focus vehicles to fix sub-standard technical features. 520 of the Everest models were assembled in Vietnam between May 27, 2008 and October 29, 2008, and one imported unit was manufactured in 2007. These cars need a part of their gear boxes replaced because of an error that could prevent switching gears.  Meanwhile, the 539 Focuses were assembled in Vietnam between August 8, 2013 and April 14, 2014, and both the sedan and hatchback versions had a problem with the brake causing it to wear off faster than it should. The recalls are going to end on August 1, 2019 for the Everest and September 1, 2019 for the Focus.  At the same time, General Motors Vietnam is recalling 137 Chevrolet Colorado LT and Chevrolet Colorado LTZ models for technical errors. The vehicles were made in Thailand between January 12, 2015 and March 18, 2015. The problem is with the seatbelt and could endanger passengers’ lives in the event of a collision.  Earlier this month, Vietnam Register approved Toyota Motors’ recalling of 20 RX350 and RX200t completely built units imported from Japan due to the Takata airbag issue, which involves defective inflator and propellant devices that may deploy improperly in the event of a crash, shooting metal fragments at passengers. The 17 RX350 units were made between November 28, 2015 and February 16, 2016. The three RX turbo 200ts were made between November 28, 2015 and June 13, 2016.  Due to concerns over the same issue, the agency also approved the recall of 1,345 BMW cars made in Germany. Starting on November 28, Thaco will recall 4,809 Mazda 2 units. The cars were assembled at Vina-Mazda factory in Vietnam between July 15, 2015 and September 26, 2016, with the SkyActiv 1.5 litre engine. The zinc parts inside the car as well as the zinc component of the fuel cause a build-up leading to poor engine performance. Both the sedan and hatchback versions will be recalled.  Earlier in June this year, Thaco also recalled 10,100 Mazda 3 units due to the same issue. Both the Mazda 2 and Mazda 3 are equipped with the 1.5 litre SkyActiv engine. Hyosung petitions for $1.2 billion factory in Ba Ria-Vung Tau South Korean Hyosung Group is seeking the Ba Ria-Vung Tau Industrial Zone Management Authority’s approval to develop a complex of a polypropylene production factory and a liquefied petroleum gas (LPG) depot, with a total investment capital of $1.2 billion, according to newswire Diendandoanhnghiep. The complex is expected to cover an area of 60 hectares in Cai Mep Industrial Park, in Tan Thanh district. The $1.2 billion capital will be disbursed in two phases. Accordingly, in the first phase, the investor will pour $133 million into constructing the LPG depot and $336 million into the polypropylene factory, which would have an annual output capacity of 300 million tonnes of polypropylene. In the second phase, the investor will construct a propane dehydrogenation (PDH) factory with the total investment capital of $496 million and the second polypropylene factory worth $226 million.  Hyosung is one of South Korea’s fifteen largest firms which specialise in manufacturing tire cord, spandex, power distribution equipment, and fabric material. Its business network spans across Asia and Europe, Africa, and the Americas. Hyosung’s luxury fibre volume makes up 50 per cent of the fibre market in the US and numerous countries in Europe and Asia.  Entering Vietnam in 2007, Hyosung developed three fibre factories in the southern province of Dong Nai. In May 2015, Hyosung received the investment certificate for the fourth, $660 million fibre production plant, increasing its Vietnamese investments to $1 billion to date. Construction sector grows 8.8 per cent The construction sector grew 8.8 per cent in gross domestic product (GDP) for the first half of this year, the highest growth since 2010, reported the Ministry of Construction during a conference in Ha Noi on Thursday on tasks in the second half of this year. In first half of this year, the ministry’s enterprises booked revenues at about VND76.1 trillion (US$3.45 billion) while the rate of urban and rural construction hit 100 percent, and urbanisation nearly 35.7 percent of their respective targets for the period. The average floor area per person reached 22.3sq.m, a rise of 0.3 sq.m from late 2015. The construction ministry also said the construction industry still had limitations in building legal documents and standard systems compatible with international regulations, equitisation at some corporations and administrative reform. Therefore, construction minister Pham Hong Ha said at the conference that the ministry would refine legal regulations, review the Law on Construction and issue decrees on construction, housing and real estate business. The issuance of construction licences will be reduced to 22-25 days from 30 days, as part of efforts to realise the government’s resolution on improving the business climate and national competitiveness, as well as the resolution on business development support. In other developments, Viet An Hoa Company’s general director Tran Khanh Quang said urban land, agricultural land and property products in and around industrial zones were expected to be hot by the end of this year, reported vnexpress.net. The market of private property, including land and houses on land in urban areas had high growth in the first half of this year compared with that in the first half of last year, and land prices have increased by 20 per cent since the beginning of this year, Quang said. The unchanged apartment market and apartment prices have created a chance for house and land prices to grow strongly. Trading liquidity and the price of land and houses have increased constantly and the demand for these property products are expected to grow "hot" in the next six months. Meanwhile, signed trade agreements and international integration have affected the growth of the local economy in general and the market of industrial zones in particular, he said. Local and foreign companies have been prompted to lease facilities in industrial zones to expand production and business activities in the future. Therefore, in medium term, the market of leased facilities in industrial zones would remain in high demand, especially in Long An and Binh Duong, neighbouring provinces of HCM City, he said. Property markets around industrial zones have also attracted investors, including land and available houses for rent, for the first six months of this year, said Quang, adding that demand for property products around industrial zones would continue growth in the future. Quang also said investors had increased buying land in sub-urban areas and neighbouring provinces to produce clean vegetable and food since early this year. This trend would continue developing through this year’s end and beyond. The number of industrial projects in the southern region comprises approximately 100 industrial parks and processing zones, most of which are located in Dong Nai and Binh Duong, according to JLL, a foreign property service provider. The industrial space market in the southern region is expected to welcome more than 10,000ha of land area by the end of 2020. Rental fees are expected to be on a slight uptrend in the near future, since demand for industrial properties improves as Viet Nam will receive more FDI capital following the announcement of a number of FTAs. Investments in eco-friendly industries with advanced technologies are expected to be further incentivised in the southern industrial market. Tra fish in short supply until Q1 2017 There may be a lack of tra fish for export until the first quarter of 2017, the Vietnam Association of Seafood Exporters and Producers (VASEP) has forecast. The total tra fish harvest in the Mekong Delta was 860,900 tonnes as at the end of September. VASEP forecasts there will be only 300,000 tonnes left for the fourth quarter; well short of export requirements. In the first nine months of this year the total area for raising tra fish was 5,100 ha, down 2.3 per cent year-on-year, but the harvest increased 2.5 per cent, according to the Ministry of Agriculture and Rural Development (MARD). The number of breeding fish was estimated at 1.4 billion in the first nine months, down 11 per cent year-on-year. An increase in harvested fish but declines in areas to grow fish and breeding fish have tra fish exporters concerned. VASEP said that from now to the end of February next year, the volume of tra fish in the Mekong Delta will be insufficient for processing and exporting. Tra fish exports are recording the most impressive growth in both quantity and value among all types of seafood, said Mr. Duong Ngoc Minh, Vice Chairman of VASEP. The price of tra fish, however, has been falling for some time and many farmers ceased raising the fish. As a consequence, breeding fish numbers fell 30 per cent this year compared to last year. In most years the number of breeding fish last until March the following year, but this year supplies were exhausted by September.   As tra fish numbers fall, prices increase. In Dong Thap province, as at the end of October, the price of breeding tra fish increased by between VND7,000 ($0.3) and VND9,000 ($0.4) compared to the previous three months.   In Can Tho city, many enterprises have reported that as there is a shortage of breeding tra fish, some Chinese enterprises are seeking to buy small fish, of about 350 to 400 grams each. In the last quarter of this year and the first quarter of 2017, tra fish exports to China will increase 15 to 30 per cent compared to the first quarter of this year. VASEP has assessed that tra fish demand in China remains huge because exports have increased remarkably since the beginning of the year. In August and September, the tra fish export value peaked at $30.9 million and $30 million, respectively. In the first nine months, the total export value to China and Hong Kong was $201.9 million, a 75.6 per cent increase year-on-year. At that time, China surpassed the EU to become the second-largest importer of tra fish from Vietnam. The US remains the largest, with value standing at $286.8 million, up 23.1 per cent year-on-year. Export turnover of tra fish was almost $1.2 billion in the first nine months, an increase of around 7 per cent in both quantity and value. In the fourth quarter of this year and the first quarter of next year, export turnover is predicted to increase 20 per cent because this is the peak season for tra fish consumption. If the positive signs are maintained, tra fish export turnover in 2016 as a whole is predicted to be 5 to 7 per cent higher than the target of $1.5 billion. Vietnam Medi Pharm Expo 2016 for Dec 1-3 The 23rd International Pharmaceutical and Medical Equipment Exhibition (Vietnam Medi Pharm Expo) will be organized from December 1 to 3 at the Cultural Palace, 91 Tran Hung Dao, Hanoi, with the support of the Ministries of Health and Industry and Trade (MoIT) in coordination with the Vinexad Company (under MoIT). The exhibition will feature 250 booths of 150 companies from 18 countries and territories around the world, such as the UK, the US, the Czech Republic, Germany, Italy, Russia, South Korea, Taiwan, China, Singapore, Malaysia, Japan, Thailand, Pakistan, India, Bangladesh and Vietnam. Vietnam Medi Pharm Expo has been organized annually in Ho Chi Minh City in August and in Hanoi in December and has been considered the most cost-effective exhibition for more than two decades. South Korea will bring 25 well-known corporations and companies specializing in pharmaceutical processing, packaging, dentistry, ophthalmology, surgical tools, recovery equipment, and environmental equipment. Sewon Medix Inc. from South Korea, whose slogan is Human Happiness through Dental Health, is proud of its contributions to dentist transplants in South Korea. KJ MEDITECH CO., LTD from South Korea and companies from Pakistan will present modern technologies and hope to meet local partners for the further development of dentistry in Vietnam, which has been booming. Canada, with VIVA PHARMACEUTICAL INC., has been famous for its products licensed by GMP Canada. Similar products will be introduced by other brands such as Dr. Muller Pharma S.r.o from the Czech Republic and Polvita, Baniphar, Minh Long Chau, and Tam Quoc te from Vietnam. The BMG International JSC will present DOCTOR 100 rollers, invented by Vietnamese doctors for treating bone, nerve and blood circulation ailments. Medical equipment, surgical tools, ultrasound equipment, electrocardiogram equipment, and emergency equipment will be presented by giants from Germany, Japan, Russia, Malaysia, Singapore, the UK and the US and be of particular interest for specialists, hospitals, and healthcare businesses.  SKY SOFTGEL from South Korea, which specializes in manufacturing pharmaceutical products packaging and processing, have participated in the exhibition for many years, introducing advanced technologies to local medical manufacturing companies.  Conferences, symposiums, free medical checks, product introductions, and blood donation drives are also part of the exhibition. Medical equipment revenue in Vietnamese market is estimated at around $800 million annually and may reach $1.2 billion this year and $1.8 billion in 2018, with year-on-year growth to be around 18-20 per cent in the 2016-2020 period. Vietnam has been an attractive market for pharmaceutical and medical companies around the world.  Demand is on the rise in the years ahead, particularly in picture diagnoses and surgery, recovery and testing equipment. Ninety per cent of the medical equipment currently available in Vietnam comes from Japan, Germany, the US, China and Singapore, which makes up 55 per cent of the cost of equipment imports.  Ipsos Business Consulting views the medical equipment sector in Vietnam as promising, as life expectancy has been rising. Since Vietnam joined the WTO in 2007, more and more medical equipment companies have been arriving in the country, such as Terumo, Sonion and United Healthcare, who moved their manufacturing bases from other countries to Vietnam to take advantage of low-cost labor and government incentives. Dat Xanh acquires stalled HCMC project The Dat Xanh Real Estate Service and Construction Corporation has recently announced it purchased all of a large condominium project in Ho Chi Minh City’s District 9 from the Thang Long Investment Petrol JSC. “Dat Xanh Group spent more than $25 million on acquiring the project,” Mr. Nguyen Huy Vu, Marketing Manager at Dat Xanh, told VET. The condominium project began in 2008, covering about 8.6 ha and includes a number of high-rise apartment buildings but has been delayed for some time. The Thang Long Investment Petrol JSC was a joint venture between the PetroVietnam Infrastructure and Urban Investment JSC (Petroland) and the Vu Anh International Hotel Hospital Company Limited, which had charter capital of nearly $23 million, of which Petroland contributed 79.9 per cent. The Ho Chi Minh City People’s Committee approved the project’s investment plan in 2008 and district authorities approved the detailed 1/500 planning in 2010. Vu Anh and Petroland then signed an investment cooperation agreement and established the joint venture to implement the project. The city’s People’s Committee issued a document in 2011 permitting an adjustment to the investor for the high-rise apartment buildings on 6.15 ha. Local authorities then approved a new investment plan and separated the project into different parts for the Thang Long joint venture to implement. According to Petroland’s financial statement for the second quarter of 2016, it contributed 70 per cent to the subsidiary. The value of its long-term financial investment in the joint venture is around $16 million. In 2014 the City’s People’s Committee issued a decision approving of the investment plan for the condominiums and public areas. The total land area is nearly 8.6 ha, of which parks and green space were on 1.5 ha, roads 1.3 ha, and housing about 3.6 ha. The project was to have 25 floors at its highest and will house about 6,500 people in 1,625 apartments. Founded in 2013, the Dat Xanh Group is engaged in investment, construction and distribution of real estate projects such as high-rise apartments, urban housing, and housing land. It also provides property brokerage and consultancy services and manages real estate and apartments for lease. National Steering Committee for Power Development formed Prime Minister Nguyen Xuan Phuc has released a Decision on establishing the National Steering Committee for Power Development, helping the Government and the PM to direct the implementation of plans for national power development and major power projects.  Under the Decision, the head of the Steering Committee is Deputy PM Trinh Dinh Dung; meanwhile the Minister of Industry and Trade, Deputy Minister of Industry and Trade and the Deputy Minister of Construction are deputy heads. Members of the committee include: the Deputy Ministers of Planning and Investment, Finance, Natural Resources and the Environment, Agriculture and Rural Development and Science and Technology; as well as the Deputy Governor of the State Bank of Vietnam and the Deputy Head of the Government Office. A Vice Chairman of the National Assembly’s Committee for Science, Technology and the Environment, as well as the Chairmen of the Boards of the Vietnam Electricity, Vietnam Oil and Gas Group, Vietnam National Coal-Mineral Industries Group, were also invited to join the Steering Committee. The Committee is responsible for directing, inspecting and supervising the investment and construction of power projects—particularly major ones—under the plan for national power development approved by the PM, ensuring a sufficient supply of power for the country's socioeconomic development. It will also direct, supervise and urge the implementation of policies related to electricity trading with foreign countries and the development of renewable energy, as well as investment for the construction of infrastructure and negotiation to import coal and liquefied natural gas. The National Steering Committee will direct the ministries, branches and People’s Committees of provinces and cities, along with investors, domestic and foreign consulting organisations and contractors to fully perform their responsibilities, as well as to solve problems that arise in land clearance and to support the emigration and relocation of local residents to serve power projects. The unit will be authorised by the PM to decide mechanisms and policies and resolve specific problems within the authority of the PM while implementing power projects, particularly major ones. Nghi Son 2 thermal power plant BOT contract inked The Ministry of Industry and Trade, Marubeni Company (Japan) and KEPCO (the Republic of Korea) on November 8 inked an investment agreement on the Nghi Son 2 thermal power plant BOT contract. The plant, with the designed capacity of 1,200 MW and including two 600MW turbines, is invested with US$2.3 billion. The project, constructed at the Nghi Son Economic Zone in the central province of Thanh Hoa, will ensure power supply for economic development in the North, contributing to guaranteeing the national energy security. The signing ceremony has manifested efforts of the investors, the Ministry of Planning and Investment and Thanh Hoa Province’s leaders in operating BOT projects effectively. VN, Laos, Cambodia share experience in auditing Leaders of the State audit agencies from Viet Nam, Laos and Cambodia gathered at the seventh meeting in Ha Noi on November 8. Speaking at the event, State Auditor General Ho Duc Phoc proposed three nations enhance cooperation in the environment to make their cooperative relations more effective. He asked to focus on establishing and launching multi-lateral cooperative and feasible programs and plans to call for assistance from the international development partners and professional organizations. The Vietnamese State Auditor General demanded all the nations organize cooperative auditing on the environment in the spirit of the Ha Noi Declaration adopted at the 8th Cambodia-Laos-Myanmar-Vietnam Summit (CLMV 8). Vice President of the Lao State Audit Organization Padapphet Sayakhot suggested auditing agencies complete regulations, mechanisms and auditing methods to fully realize international auditing standards. Earlier at the sixth meeting in Laos in 2014, the three sides agreed on the cooperative mechanism to organize the meeting every two years. Hoa Phat to export construction steel to North America Vietnamese steel producer Hoa Phat Group has signed contracts to export construction steel to the U.S and Canadian markets in the rest of this year, according to the news site Dan Tri. Hoa Phat, a major steel maker in the country, last month produced 164,700 tons of steel products, up 18% year-on-year, and equivalent to a market share of 24.8% as the industry’s output last month reached some 660,000 tons. Hoa Phat in the first ten months turned out 1.38 million tons of construction steel, meeting 82% of its annual target. The company in January- October exported over 27,000 tons of construction steel to some countries such as Australia, Laos, and Cambodia.  Nghe An economic zone willing to host cement plant The authority of Dong Nam Economic Zone (EZ) in Nghe An Province has asked relevant ministries to approve a cement plant project in the EZ. The plant will be developed by Nghe An-based Vicem Hoang Mai Cement Joint Stock Company in two phases on 122.5 hectares in the EZ, says a document of the EZ authority sent to the ministries of industry-trade, planning-investment, science-technology and natural resource-environment. When in place, Hoang Mai Cement Plant 2.1 is expected to create jobs for 550 laborers in the province and nearby localities, and contribute VND120 billion (US$5.37 million) to the State budget each year, according to the document posted on the industry-trade ministry’s portal. Dong Nam EZ’s authority said the construction of the cement plant, which will supply products to serve domestic demand and export, complies with the current regulations. The project also adheres to the detailed plan on functional zones that Nghe An provincial government has approved, the development plan for the cement sector, and the approved plan on land use. It will contribute to restructuring the economy in Hoang Mai Commune, Quynh Luu District in specific and Nghe An Province in general, with a focus on services and industrial production rather than agriculture. Vietnam is currently home to 60 cement producers of different sizes. In recent years, the cement industry has seen competition growing, especially in 2014 when supply far outpaced demand due to the real estate market slowdown in 2014, forcing producers to increase exports to cut large inventories. In 2015, domestic cement consumption edged up, especially in the final months of the year when many real estate projects were restarted. For this year, building material insiders predict the market will recover at a slow pace. Domestic cement consumption is expected to rise by 3.5 million tons against last year to 60 million tons this year while outbound sales are forecast to climb by one million tons year-on-year to 17 million tons. US launches antidumping investigation on Vietnamese steel The US Department of Commerce (DOC) has decided to carry out antidumping duty and countervailing duty investigations on imports of corrosion-resistant carbon steel pipe from Vietnam.  According to the Department of Competition Management under the Ministry of Industry and Trade, a number of US steel enterprises petitioned the DOC to launch the investigations.  Previously, in May 2015, after investigations into the same product from China, the US announced 199.43 percent antidumping duties and 241.43 percent countervailing duties on the Chinese products.  The DOC said it would not yet delay consignments imported from Vietnam or require deposits at the same levels as duties levied on the Chinese products.  The department will issue questionnaires to Vietnamese steel producers and exporters involved in the case to investigate their batches shipped to the US and the origin of their imported material for producing steel products.  The DOC will issue its final decision within 300 days of the investigations beginning. Customers compare market prices before shopping online Seven out of ten online shoppers have the habit of visiting some stores to compare prices before making purchase decisions, according to a survey on the habits of online shoppers in Vietnam. The survey with 500 respondents has been conducted by market technology company Criteo and market research firm Euromonitor. According to the survey, 87% of respondents say they visit stores to experience products and services first-hand alongside conducting online research before making a purchase for the purpose of finding the best deals. Alban Villani, Criteo’s commercial director for Southeast Asia, Hong Kong and Taipei, said half of Vietnamese consumers still prefer buying products from local sites to foreign sites due to quick deliveries and lower prices. Therefore, traditional retailers should grasp the opportunity to open e-commerce sites with mobile versions available to better serve customers.  The survey showed that 75% of respondents prefer online shopping due to many reasons such as convenience, easy access and reasonable prices. Of the 500 respondents in the survey, 34% are aged between 18 and 29, some 30% from 30 to 39, and 38% are aged between 40 and 60. EVN announces surprise profitability Despite reporting billions in losses in the first half of the year, the Vietnam Electricity Group (EVN) has just estimated a profit of VND2trn(USD89.54m) to VND3trn for 2016.  EVN had reported losses of VND6.371trn (USD282.9m) due to foreign exchange fluctuations, posting a post-tax loss of VND716bn (USD32m) in the first half of this year. Financial reports for the first half of 2016 showed that EVN earned VND131trn (USD5.8bn), a 17% increase on last year. However, financial costs increased to VND15.5trn, leading to VND716bn in losses. Dinh Quang Tri, deputy director of EVN said it was a consolidated report for the mother company EVN and nine member companies. However, because of the dry season, many member companies had to increase generator capacity and buy more oil and coal-fired power from other sources. Output from hydropower plants was low while production costs increased. Tri went on to say that the Ministry of Industry and Trade may consider and adjust the prices based on the foreign exchange rates in an end-of-year settlement. Most of the losses were in member power generating corporations. VN bank signs up for fight against money laundering The Orient Joint Stock Commercial Bank, consultancy Fintek Company Limited and its Malaysian principal TESS International on Wednesday signed an agreement for an anti-money laundering project at OCB. Nguyen Dinh Tung, OCB's CEO, said: "When the bank's scope and scale are increasingly widening, it means the bank has to face with the risk of money laundering, terrorist financing and trading fraud, which are alarming problems worldwide." The anti-money laundering system provides many different models and methods to filter customer information based on black lists, warning lists, embargo lists, and others and discover and investigate any suspicious transactions such as inconsistent or misleading customer information and cash transactions or deposits not in line with customers' business operations. Implementing an AML system would help the bank create a solid foundation in terms of risk management activities and the system's transparency and safety, Nguyen Hoang Ly, Fintek founder and chairman, said. The AML project has been implemented at OCB since September, and is expected to be applied bank-wide by February next year. Le Thi Kim Xuan, chief representative of the Viet Nam Banks Association, said along with increasing integration, money laundering has also gone up and become more sophisticated. According to financial experts, money laundering activities target developing countries and countries with a habit of using cash like Việt Nam, she said. As banks become more globally integrated, they must improve their risk management to international standards, she added.  Tan Bien Rubber listed on UPCoM Tan Bien Rubber Joint Stock Company (Tan Bien Rubber) was listed by the Hanoi Stock Exchange (HNX) with total registered value of VND879.4 billion (US$39.3 million) on November 7, 2016. According to the HNX, Tan Bien Rubber was officially listed on the unlisted public company market (UPCoM) with a total of 87.9 million common stocks, valued at VND10,000 ($0.44) each. Recorded reference price for the first day was VND18,700 ($0.83). Tan Bien Rubber was established in 1985 under the Vietnam Rubber Group. In 2011, the company became equitised with 98.46 per cent of charter capital held by the Vietnam Rubber Group. The company estimated its post tax revenue in 2016 and 2017 to be VND58.4 billion ($2.6 million) and 74.7 ($3.34) billion respectively, with five per cent annual dividend yield. Tan Bien Rubber specialises in rubber latex, which is highly valued in the market. The company also intends to focus on technology improvement and quality control in the near future. Controlling CPI surge in accordance with targets With a strong “impulse” from the health and transport sector, the consumer price index (CPI) in October grew by 0.83% compared to the previous month, which was the highest rise so far this year. Notably, nine of the elven categories of goods used for CPI calculation witnessed price increases, with the prices of medicine and healthcare services surging 10.07% month on month (health services alone saw a monthly increase of 13.28% in prices). Concerning the first ten months of the year, CPI went up 2.27% and core inflation grew 1.82% against the same period of 2015. The CPI growth rate of 2.27% in the period is still far away from the CPI surge target of 5% set for the year, which provides a foundation for the price regulating team’s assessment confirming that the situation remains under control. From the beginning of the year, abundant and various supply sources of essential commodities have led the prices of these goods to not increase remarkably as seen in past years. In addition, ministries, sectors and localities have also worked closely and proactively together in taking synchronous measures to stabilise the market and control inflation in accordance with the target envisaged by the government, including strengthening market management and completing the system of goods distribution and circulation towards reducing intermediaries. It can be said that flexible and proactive price regulation methods in the opening months of the year have kept the CPI stable. However, as analysed by the price regulating body, the remaining months will see a number of elements have an affect on the price index. The CPI escalation in October has shown that it is still necessary to maintain flexible price regulation and ensure strict rules in order to stabilise the consumer prices for the whole year. To do so, the monetary policy must continue to be operated flexibly and synchronously aiming to regulate the money supply reasonably and keep deposit rates steady, thereby alleviating pressure on lending rates. Also, credit growth needs to be maintained appropriately in line with directions set at the beginning of the year, focusing capital on the priority fields, thus providing better support for economic growth. Furthermore, the government’s decision to maintain retail power prices and stabilise petroleum prices to curb price increases from affecting inflation, is also one of the effective and practical measures which are welcomed and supported by both the business community and consumers. However, ministries, sectors and localities should keep proactively monitoring the domestic supply and demand situation and the proceeding of domestic market prices of essential commodities so as to form proper regulation solutions. Monetary measures must be worked out to facilitate businesses access to preferential capital sources aiming to reduce costs and lower product prices, thus giving a boost to production and ensuring sufficient sources of goods for the domestic consumption market. At a recent meeting, leaders of the government insisted ministries and sectors take precaution and careful consideration while avoiding the adjustment of education, health and petroleum prices in the last months of the year, in order to minimise the synergic impacts on the general price level. Concerning the issuance of a management mechanism over the fees converted into the price mechanism from January 1, 2017, ministries, sectors and localities need to promptly direct capable units to build and evaluate price measures and promulgate prices to be applicable right after the law on charges and fees takes effect. With regards to the price of medicine, the government has asked the Ministries of Finance and Health and the Vietnam Social Security to actively implement bidding in order to lower costs. The ultimate goal is to keep price increases at about 5% as envisaged by the government. Over 7,900 businesses use national single window system As many as 180,000 sets of administrative documents have been processed through the National Single Window (NSW) system with the regular participation of 7,900 enterprises.  According to the General Department of Customs, 10 ministries and sectors have connected to the NSW system, including the Ministries of Industry and Trade; Science and Technology; Transport; Agriculture and Rural Development; Finance; National Resources and Environment; Information and Communications; Culture, Sports and Tourism; Health; and National Defence.  In addition to customs clearance, 36 administrative procedures of nine ministries and sectors have been conducted through the NSW.  The Ministry of Transport topped the list with 11 procedures, which already handled over 85,000 sets of documents submitted by more than 4,500 businesses.  The NSW system, which was launched in September 2015, is designed to help enterprises save time and costs while completing administrative procedures and improving the effectiveness of management agencies.- Trade ministry to hold public consultation The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade (MoIT) will hold a public consultation with related parties on investigations for anti-dumping tariffs on coated steel sheets. The consultation, related to coated steel sheets imported from China (including Hong Kong) and the Republic of Korea, will be organised on December 22 to help related parties express their opinion on the anti-dumping tariffs. Each party can have three people participating in the consultation. The event is not compulsory and related parties which do not join in the consultation will still be ensured their rights and benefits under the law. Applications to participate in the consultation should be sent to the VCA’s Trade Remedies Investigation Division before 5pm on November 22. Related parties can send their contents before 5pm on December 1. The ministry promulgated the decision on applying the temporary anti-dumping tariff on imported coated steel sheets from China (including Hong Kong) and the Republic of Korea into Vietnam. The tariff is in effect for 120 days - from September 16, 2016 to January 13, 2017. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR