BUSINESS IN BRIEF 13/11 Big tax arrears collected from auto importers in HCMC The General Department of Customs has decided to collect up to VND888 billion (US$39.78 million) in tax debts from auto importers in HCMC following a proposal by the city’s customs department. As suggested by the department, Tan Thanh Do Group had to pay VND719 billion in tax arrears while the remaining VND169 billion was collected from 110 other auto importers who had made incorrect reports on their business operations. Tax debts at Tan Thanh Do included VND273 billion in import tariff, VND344 billion in special consumption tax and over VND100 billion in value added tax. The company had filed complaints about arrears collection several times, the city’s department said in its Document 3010/HQHCM-STQ signed on November 3. The suggestion was made after the department reviewed bills at those companies and finding out that they had quoted lower prices for their auto imports when making customs declarations, it said in the document sent to the General Department of Customs. The department launched its inspections into imports of all old and new passenger autos and trucks at more than 100 enterprises in the city between January 2011 and September this year. The move was made at the request of Deputy Prime Minister Vuong Dinh Hue and the Ministry of Finance to strengthen inspections over auto import tax obligations. In its report sent to the Government earlier, the ministry said it had collected nearly VND1 trillion in tax debts in January-September from auto importers that declared artificially lower prices of imported autos. HCMC expects more foreign earnings from ornamental fish HCMC is implementing a plan to boost ornamental fish exports as the sector holds high growth potential in the years to come, according to a report presented at a conference in the city on November 10. Between now and 2020, the city is expected to supply 150 to 180 million ornamental fish a year in which its exports will account for 30% and generate an estimated US$40-50 million per year, four times higher than the current value, according to the conference, which was held as part of the Hi-Tech Agro 2016 exhibition at Le Van Tam Park from November 10 to 14. According to the municipal Department of Agriculture and Rural Development, the ornamental fish breeding industry is playing a significant role in the city’s development as it has brought economic benefits to raisers, manufacturing facilities, and export activity. Tong Chau, a renowned ornamental fish raiser, said in a report it is necessary to open a center providing information on fish breeding techniques, ecological conditions, and preventive solutions to raisers and facilities, which will greatly contribute to the successful development of the sector. Vinamilk opens representative office in Thailand Vinamilk, the largest dairy company in Vietnam, has strengthened its position in the neighboring Thai dairy market by establishing a representative office in Bangkok, Thailand. Vinamilk had last month signed a contract with Top Most Enterprise Co, a Thai local company, to distribute its dairy products in the lucrative market estimated to be worth US$1.7 billion annually. The company launched Vinamilk yoghurt in the Thai market at selected modern retail chains such as Lawson convenience stores and The Mall and Foodland supermarkets four months ago. Market analysts have said Vinamilk has huge potential in the local market because consumption per capita of yoghurt is low in Thailand compared with other countries. After yoghurt, Top Most Enterprise Co had previously announced plans to launch Vinamilk UHT milk. Japanese cosmetic manufacturers seek distributors It has been unveiled that 10 Japanese cosmetics manufacturers will attend an all-day workshop in Ho Chi Minh City on November 18 in search of small and mid-size cosmetic entrepreneurial companies to distribute their products in Vietnam. japanese cosmetic manufacturers seek distributors hinh 0 The event is set to transpire at the GEM Centre located at No. 8 Nguyen Binh Khiem Street in District 1 of Ho Chi Minh City and will feature speakers providing attendees expert advice on matters concerning cosmetic regulations. It is specifically designed to cover the latest issues in the cosmetic and personal-care products industries in Vietnam including information on how to set up a company, legal issues in the distribution, product safety, among many other areas. Representatives from Japanese cosmetics companies like Kanebo, Kose, Menard, and Kracie will attend the event providing attendees specific information about their products and opportunities to become distributors in Vietnam. Those interested in attending the workshop can obtain more information by contacting Mrs Van Trang (0973 390 317) or Ms Luu Da ( 0977 953 942) or by email at tranph@tuoitre.com.vn. Agricultural mechanisation in Mekong Delta discussed The fourth annual Mekong Delta investment forum (MekongInvest 2016) took place in Can Tho city on November 11 to introduce new technologies for the agricultural sector. According to Vo Hung Dung, Director of the Vietnam Chamber of Commerce and Industry’s branch in Can Tho, the Mekong Delta is dubbed as the biggest agricultural region in the country that contributes over 50 percent of food output, nearly 70 percent of seafood exports, 90 percent of rice exports, 41 percent of agricultural production value, and 20 percent of the nation’s gross domestic product (GDP). However, the per capita local income has not yet matched with the regional contributions since a majority of farmers still apply traditional cultivation methods and dependence on the weather conditions, he said, noting that the rate of mechanisation in rice harvesting only reached 65 percent while other breeding techniques remain poor. Each year, rice growers suffer from post-harvest losses of between 3.2 – 3.6 trillion VND (143 million USD – 161 million USD), or 12 percent of the total output, equivalent to 2.16 million tonnes of rice. The limited application of advanced equipment in the processing stage also makes it difficult for locally-made products to make inroads into choosy markets. Vice Chairman of the Can Tho People’s Committee Truong Quang Hoai Nam said farmers in the delta could not afford to buy modern machineries and it is difficult for them to operate such machines due to complicated maintenance. Therefore, local authorities will prioritise machines and production lines which are suitable with locals’ cultivation habits and budget, he added. In addition to existing advantages such as strong economic growth, improved infrastructure and transport system, and young workforce, the Mekong Delta city will reform administrative procedures and devise more incentives, he said. Chief Representative of the Japan External Trade Organisation (JETRO) Takimoto Koji said Japanese firms will expand investment in local factories instead of importing machinery from Japan, which aims to reduce production cost and create jobs for locals. Japan is also keen to cooperate with Vietnam in producing machinery parts, he said. Second-hand machines with high capacity and cost will be imported from Japan after quality examination, while smart and small-designed ones will be developed and applied in the delta to help farmers take on dangerous jobs, he noted. The MekongInvest is held annually by the Vietnam Chamber of Commerce and Industry and the Investment and Trade Promotion Centre in the Mekong Delta. This is the second time the event has been organised in Can Tho, following the forums in Ho Chi Minh City and Hanoi. This year’s event drew 350 delegates from embassies, consulate generals, and business associations from Japan, the UK, the US, the Netherlands, Singapore, Australia, Canada, and the Republic of Korea with 50 agricultural projects worth over 1.38 billion USD calling for investment. Int’l Agriculture Trade Fair 2016 kicks off in Hanoi The 16th International Agriculture Trade Fair – AgroViet 2016 opened in Hanoi on November 11, introducing safe agricultural products to consumers. Themed “Agricultural products with high quality and food safety”, the fair features 400 booths of 300 local and international businesses. On display are thousands of local specialties and safe agricultural products, produced with advanced agricultural machines and technology. AgroViet 2016 offers opportunities for businesses to promote trade, expand cooperation and strengthen their ties with customers, as well as explore the domestic market. Speaking at the opening ceremony, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said the fair would promote Vietnam’s safe agricultural products in local and international markets. It would also help businesses seek new markets for their products. AgroViet 2016 runs until November 15 and is expected to draw thousands of visitors. Fruit-vegetable export surpasses rice export Vietnam’s fruit-vegetable export value in 2016 is predicted to reach 2.6 billion USD, according to the Ministry of Agriculture and Rural Development (MARD). From the beginning of this year, fruit-vegetable exports recorded a year-on-year increase of 30.8 percent to nearly 2 billion USD, becoming the third largest export commodity after coffee and cashew. The MARD predicts that fruit-vegetable exports are likely to hit five billion USD in 2017. Honda Motor to hear customers for innovation   Norihiro Imada, deputy director of the business plan division of Honda Motor Co. Ltd., said that the company will try to better understand customer’s taste to develop its products. To develop the motorbike market in Vietnam and provide better products, Honda Motor will use feedback from customers in designing future products. He said Vietnam’s motorbike market has recovered slightly after two bigger markets, Indonesia and India, have declined or become saturate. However, Vietnam’s motorbike market has nearly reached a saturation point with one vehicle for every three people. In recent years, Honda Vietnam Company (HVN) has boosted export of its products to developed countries, including to Japan and Europe. In 2015, HVN exported 91,000 motorcycles for 245 million USD, a 179 percent increase from 2014. HVN General Director Minoru Kato said by the end of October, Vietnam’s motorbike market has enjoyd higher growth as compared the same period last year thanks to the stable economy. Vietnamese customers are shifting towards using more expensive products, especially high-class automatic bikes in big cities. Over 420 firms to attend Vietbuild Hanoi International Expo More than 420 enterprises operating in the construction, real estate and interior-exterior decoration industries will showcase products at the third Vietbuild Hanoi International Expo 2016 from November 16-20. Apart from 270 domestic enterprises and 93 joint ventures, the expo will also see the participation of 60 foreign companies from 22 nations and territories, including the UK, France, the US, Switzerland, Australia, Japan, the Republic of Korea, Malaysia, Thailand, and China. They will exhibit a wide range of new products at 1,350 pavilions such as construction materials, electric equipment and doors, exterior-interior decor products, paint and solar energy systems. Conferences on advanced green technology and products used in the building material industry, and interior and exterior decorations will also be held on the sidelines of the expo. Forum promotes AEC, intra-bloc trade agreements A forum giving an overview of the ASEAN Economic Community and relevant agreements was held in the central city of Da Nang on November 11. Hosted by the Ministry of Planning and Investment's Foreign Investment Agency (FIA), the event attracted representatives of the Departments of Planning and Investment and enterprises from 13 provinces and cities in the Central and Central Highlands regions. Speaking at the event, FIA Deputy Director Dang Xuan Quang stressed the formation of the AEC in late 2015 and signed relevant agreements have brought both opportunities and challenges to Vietnamese enterprises. The forum helped raise public awareness and provided basic information of the AEC, the ASEAN Comprehensive Investment Agreement (ACIA) and other agreements, he said. Participants were introduced to the AEC, opportunities and challenges for Vietnam when joining the community and new-generation free trade agreements (FTAs), the ACIA, as well as the country’s commitment to opening the door for goods from other ASEAN member states. Nguyen Nguyen Dung, also from the FIA, noted that the ACIA aims to promote investment liberalisation within ASEAN and foster the intra-bloc investment. It will also boost foreign direct investment (FDI) in ASEAN and protect foreign investors operating in ASEAN member nations, he added. According to Hoang Thi Dieu Linh from the International Cooperation Department under the Ministry of Finance, Vietnam’s participation in the AEC and new trade agreements would open up great opportunities for the country to boost exports, and Vietnamese firm to expand their markets and attract foreign investment. Participants stressed the need for Vietnamese enterprises, especially small-and medium sized ones, to improve their competitiveness in the context of the new global business environment. VN cashew conference cheers booming demand As global demand increases for cashew, Viet Nam, the world’s largest exporter of the nut, could grab an even bigger market share by improving quality, a conference heard in Da Nang yesterday. Ranjeet Wallia, president and CEO of Chi Commodities Handlers Inc, said global demand is up 53 per cent since 2010 and cashew is now the second most consumed tree nut. "The US buys more than 30 per cent of Viet Nam’s exports, mainly for snacking and making cereal, energy bars, milk and healthy foods." Joseph Lang, managing director of Kenkko House, one of Europe’s largest dealers of nuts and dried fruits, said: “The growth of the cashew market in Europe over the last three years has been tremendous with Europe now representing around 25 per cent of cashew exports from Viet Nam and having growth by well over a third over the period.” Demand is expected to continue increasing because consumers are more aware of the nut’s nutritional value, according to Lang. Cashew currently has a tighter supply scenario and has consequently seen price rise. The recent increase in price is likely to worry buyers, including retailers and food processors. Lang said: “Of course, a higher price will encourage us to aim to grow and supply more to our markets, but this too represents a threat. If we supply more, we run the risk of over supply, particularly as buyers seek cheaper alternatives and this could impact our profits badly.” It was about getting the balance right between supply and demand and ensuring the product can command a high price not simply because it is in short supply but because it is of consistent, reliable and high quality, he said. “Consumers are becoming more and more demanding about transparency. They want to know where their foods come from, what’s in it and how it has been produced. “That means we need to be more transparent, provide greater information and show evidence that our product is not infested, is of high quality, comes from a reliable and sustainable source of supply and generally satisfies the expectations of today’s well informed customer.” Doan Thi Thu Thuy, deputy head of the Viet Nam Trade Promotion Agency (Vietrade), said while exports of many other agricultural products faced difficulties, it had been smooth sailing for cashew. Viet Nam currently accounts for half of the world’s cashew exports, and has been the leading exporter for the last 10 years. Its cashew products are exported to 80 countries and territories, with the US, Europe, and China being the main markets. According to the Ministry of Industry and Trade, Viet Nam exported 290,000 tonnes worth US$ 2.32 billion in the first 10 month of this year, a year-on-year increase of 5.5 per cent in volume and 16.4 per cent in value. The full year’s exports are expected to reach a record $3 billion, with kernel accounting for $2.8 billion. "But the Vietnamese cashew industry faces high risk due to its massive reliance on imported raw materials, which also makes it hard for processors and exporters to control quality or food safety and hygiene," Nguyen Duc Thanh, chairman of the Viet Nam Cashew Association (Vinacas), said. Demand for raw nut imports doubled in 2013-16, he said. He quoted quality checking company Vinacontrol as saying the quality of raw cashew imported from Africa had been lower this year compared to last, affecting Vietnamese exporters. Trade disputes also increased significantly this year, he said. This was due to raw cashew prices fluctuating sharply at the beginning of the harvest season ($1,350 per tonne in March) and the end of the season ($1,750 in September), which meant those who signed contracts to sell at the start of the season were unable to fulfil them. "Some Vietnamese importers have been guilty of failing to study the market or their partners, and not being diligent while negotiating and signing contracts," he said. Companies need to have a strategy to develop raw material sources, and be more careful about importing raw nuts, he said. The association would work with African countries to persuade them to refuse export quotas to firms not fulfilling their contracts with Vietnamese firms, he said. The association listed specifications for raw cashew nuts and displayed samples of purchase contracts. Viet Nam and African countries like Ivory Coast and Nigeria discussed ways to boost co-operation in cashew trade. The two-day Viet Nam Golden Cashew Rendezvous is being organised by Vinacas and Vietrade. VN banking sector committed to constant renewal     Viet Nam’s banking sector is committed to continuous improvements in customer service, applying advanced technology and enhancing its operational, financial and managerial competencies, Le Minh Hung, Governor of the State Bank of Viet Nam, said yesterday. Addressing an Asian Bankers Association (ABA) Meeting and Conference in Quang Ninh Province, Hung said that in context of intensifying international integration, globalisation and trade liberalisation, Viet Nam had constantly tried to renew its banking sector. The conference was themed “Asian Banks: Towards Global Integration.” “Banking renewal has been an internal and vital demand of the system, as it faces difficulties in fostering sustainable development and deepening global integration,” he said. The process has brought positive changes to the country’s banking system. The legal framework has been improved and encouraging results seen in the handling of bad debts, contributing to the economic stability and curbing inflation. Over the past 30 years, Viet Nam has recorded important achievements in its renewal process. Its economy has grown at 6.6 per cent a year. Viet Nam has also become a middle-income country, with its economy operating under market mechanisms, reaching towards international standards. Viet Nam signed 14 FTAs that have become the foundation for the country to enter a new development phase for sustainable growth of 6.5 to 7 per cent. “I expect that foreign investors will more actively participate in the restructuring of local banks. I believe that this period will bring bigger opportunities to all partners,” the central bank governor said. Although there are lots of challenges and difficulties ahead, especially with unexpected fluctuations seen in both regional and global economies, “with our cooperation and initiative, ABA continues to be a significant factor in the growth and prosperity of Asia,” Hung said. ABA Chairman Daniel Wu noted that Asia’s economies had boomed in recent decades. The region today accounts for about 40 per cent of the world’s GDP, up from 25 per cent in 1990, and contributes about two-third’s of global economic growth. Wu said that Asia was expected to continue to grow at an average annual rate of 5 per cent, leading global economic expansion. The rapid economic growth in the Asia-Pacific region in the past decades led to increased openness and greater integration of the region into the global economy, and elevating the region into a central position in global economic and financial affairs. He said Viet Nam was an economic development success story. The political and economic reforms launched in 1986 had transformed the country into lower middle income status within a quarter of century. Moreover, Viet Nam had boosted its international economic integration, as it entered into more free trade agreements with other countries, Wu said. He expressed confidence that holding this year’s ABA annual gathering in Vietnam would help ABA members know the country better. It would also help them identify business opportunities in the country. Vietcombank Chairman and ABA Vice Chairman Nghiem Xuan Thanh said “Economies across the globe are connected and having a big impact on each other in many aspects, and this offers a lot of opportunities as well as challenges at the same time for banks in Asia, the region with the fastest growth rate in the world.” “I believe all the plenary sessions have provided useful and updated information about the banking industry both inside and outside Asia. They have also identified factors shaping the global economy in the future, impacts from changes in the regulatory environment, transformational changes in digital banking and growth drivers for global financial integration,” he added. This year’s conference examined issues that revolve around Asia’s growing influence in and integration with the global economy and its implications for Asian banks. It attracted over 200 bankers from the Asia-Pacific, the Middle East and other regions - composed mainly of members of ABA, which has gathered more than 100 banks from 25 countries in the Asia-Pacific region. VN needs more cheap housing: VNREA     The local real estate market has recovered but the State should provide policies to develop small and cheap apartments due to increasing demand, according to the Viet Nam Real Estate Association (VNREA). The association submitted proposals to the National Assembly on the local real estate market after its congress in October. The local real estate market has recovered strongly and contributed to socio-economic development, the association said. The market has good liquidity, a stable increase in volume and value of transactions as well as quality of products. Credit for real estate has stood at a reasonable level at 8.5 per cent of total outstanding loans of credit organisations and bad debts have reduced. In addition, the number of real estate enterprises has increased and property projects have been developed in all segments with financial support from the State’s package of VND30 trillion. That has aided the property market and supplied homes for thousands of families. However, VNREA says the market still has risks such as an unbalanced goods structure. Demand from the majority of people was mid- and low-end houses while most projects on the market are high-end. The market lacks products with prices suitable to many people’s finances, it says. Ha Noi and HCM City have had a small number of new apartments priced under VND20 million per sq.m, reports BizLIVE online newspaper. The development of property projects, especially in large cities, has not been based on demand in each locality, it says. The development of social housing has been slow because funds and policies related to social housing have not been fully resolved or not met demand. Information and data about the real estate market has not improved, the association says. Market forecasts are lacking, affecting the Government’s management and investors decisions. VNREA proposed methods to promote funds for social housing development and to implement policies of the Law of Housing for the need for housing of low-income people and industrial zone workers. Ministries, related sectors and the State Bank of Viet Nam should have reasonable credit regulations to avoid huge credit concentrating on one segment or some investors, it says. The association proposed the National Assembly Standing Committee permit the continued implementation of policies on encouraging the development of commercial houses with small area, under-75-sq.m apartments, and low selling price at under VND15 million per sq.m. The policies included reduction of value added tax and corporate income and priority in approaching to investment capital. The association has proposed differences in tax rates as well as land and credit policies between high-end commercial housing projects and low-price commercial housing projects. HN to house "Smart City" real estate exhibition     An exhibition themed “Smart City 2016 – Week of Houses and Technologies” featuring solutions and advanced technology for house building will be held next month in Ha Noi, the Viet Nam Real Estate Association (VNREA) announced. The announcement was made at a press conference co-orgnised by the Viet Nam National Real Estate Association (VICOREAL) and VNREA on Thursday in Ha Noi. Taking place in the National Exhibition Construction Centre, the week-long event starting on December 17 aims to promoting the values of real estate products and brands, said Tran Ngoc Quang, General Secretary of VNREA. The event will house 1,000 booths of major domestic and foreign businesses and investors as well as leading brands in the property industry. It will showcase smart building materials technology, clean and green technology and optimal financial plans for house construction or interior purchasing. Visitors will have a chance to experience “Home Tour” where they travel from a virtual space to a real project at the expo to have an authentic sense of houses and flats. A conferece assessing the real estate market, a golf competition held for local and foreign investors and a music show will also be organised as parts of the exhibition. Organisers expect that the Smart City 2016, the first of its kind, will attract 30,000 visitors. Comments sought on new Ninh Thuan port The Ninh Thuan People’s Committee has sought comments from the Ministry of Transport (MoT) on the Hoa Sen Ca Na - Ninh Thuan International Port project, invested by the Hoa Sen Group. The project has investment of VND10.6 trillion ($477 million), covers an area of 429.8 ha in Thuan Nam district, south-central Ninh Thuan province, and will support business and production activities at the Ca Na Industrial Park. A representative from the Hoa Sen Group confirmed with VET it was planning to invest in the port. “The project is waiting for opinions from MoT before preparing a specific plan,” the representative added. The port will be capable of berthing vessels from 300,000 DWT and have a general wharf for vessels from 30,000 DWT to 50,000 DWT. It has been estimated to handle 53.6 million tons of cargo per year, mainly coal and iron ore. The project will be divided into three phases. The first (2017-2020) will build two docks to berth vessels from 70,000 DWT to 100,000 DWT and a dock for vessels of 20,000 DWT. This phase has total investment capital of VND1.3 trillion ($58.5 million). The implementation period is 70 years and the investor has committed to Phase 1 serving the needs of investors and demand for goods transport in all of Ninh Thuan province. Under Decision No. 3516/QD-BCT from the Ministry of Industry and Trade, the complex will include the Hoa Sen Ca Na - Ninh Thuan Steel Mill (with investment of $10.6 billion), an infrastructure project for the Hoa Sen Ca Na - Ninh Thuan IP ($400 million), the Hoa Sen Ca Na - Ninh Thuan International Port ($477 million), and a number of sub-projects building cement and thermal power plants. After the complex is put into operation it is expected to generate 40,000-50,000 direct jobs and 70,000 indirect jobs. It will also help develop support industries and an industrial urban area in Ninh Thuan, contribute substantially to the local budget, accelerate economic restructuring, and drive socioeconomic development. Established on August 8, 2001, the Hoa Sen Group began as the Hoa Sen Joint Stock Company. In 2007 it changed its name to the Hoa Sen Group Joint Stock Company and in 2008 was officially listed on the Ho Chi Minh City Stock Exchange (HoSE). 2016 saw important milestones for Hoa Sen, said Mr. Le Phuoc Vu, Chairman of the Group, growing from a small steel manufacturer into a leader in Vietnam’s steel market, accounting for nearly 40 per cent of the domestic steel sheet market and over 20 per cent of the steel pipe market. Hoa Sen now has nearly 6,600 employees with eight large plants and over 200 distributors and retailers throughout Vietnam. Its products are also found in 65 countries and territories around the world, with consumption exceeding 1 million tons per year. Steel prices poised to grow slightly The Vietnam Steel Association (VSA) has projected that steel prices would increase slightly, especially in the final months of 2016, as demand for construction is rising. Speaking to the Daily on November 10, Nguyen Van Sua, vice chairman of VSA, predicted that consumption of steel, especially construction one, would rise in the rest of this year due to high demand at the peak of the construction season, leading to a slight increase in steel prices. Prices of construction steel are currently ranging from VND9.2 million (US$412) to VND9.7 million (US$434) per ton in the north while those in the south are lower by VND100,000 to VND200,000 per ton, exclusive of discounts and value-added tax (VAT). Sua said prices of domestic steel would continue to increase in line with raw material prices on the world market. However, the price rise will be modest as material supplies are currently ample. Sua predicted the total steel consumption this year would reach 17 million tons, including construction steel, cold rolled steel, welded steel pipes and galvanized sheets, a year-on-year increase of two million tons. In particular, the consumption of construction steel would be around 8.2 million tons, up by one million tons compared to last year. The steel industry produced 15 million tons of finished products, including cold rolled steel, cold-rolled coil (CRC) steel, steel pipes and galvanized sheets that met domestic demand and yielded relatively positive export results in 2015. However, Vietnam still imported nine million tons of hot-rolled coil (HRC) steel as raw material for production of other steel products. Sun Life Financial acquires remaining stake in PVI Sun Life Sun Life Financial Inc. (Sun Life) said on November 10 that it had completed the acquisition of the remaining 25% stake in PVI Sun Life Insurance Co Ltd. from PVI Holdings following regulatory approval. Sun Life Financial announced the completion of the deal less than three months after it announced the transaction. The international financial services organization has renamed PVI Sun Life as Sun Life Vietnam Insurance Company Limited (Sun Life Vietnam) as a wholly owned subsidiary of Sun Life. Larry Madge, general director of Sun Life Vietnam, mentioned the new corporate name and the sole ownership of Sun Life’s business in Vietnam in a statement obtained by the Daily on November 10. “Moving forward as Sun Life Vietnam and with PVI Holdings as our distribution partner, we will continue our commitment to help our Vietnamese clients achieve lifetime financial security by offering a strong suite of life insurance, health riders and savings products.” The company said the deal would add to Sun Life’s momentum in the Vietnamese market. Since it was founded in January 2013, Sun Life Vietnam has now become the country’s sixth largest life insurance firm and a market leader with a focus in pensions. Kevin Strain, president of Sun Life Financial Asia, said the transaction will help the company strengthen its platform in Vietnam, which is one of the fastest growing economies for life insurance and pensions in Asia. “It also forms part of a series of recent investments we have made across the region as Sun Life continues to increase its presence in Asia,” Strain said. He also highlighted the partnership of PVI Holdings in establishing the business. Sun Life Vietnam confirmed that the terms and conditions of all current insurance policies with clients will not be changed after the stake transfer and the rebranding. Sun Life Financial offers a wide range of protection and wealth products and services to individuals and corporate customers. It has operations in multiple markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30 this year, the Sun Life Financial group of companies managed total assets of 865 billion Canadian dollars (around US$644 billion). Local textile, garment businesses face difficulties in 2017 The textile and garment sector will continue facing challenges in 2017 due to fierce competition by other major exporters such as China, India, Bangladesh and Pakistan while global demand is forecasted to slow down. Le Tien Truong, General Director of the National Garment and Textile Group (Vinatex) said textile and garment exports to the US and the EU will also be under negative impacts as consequences of Brexit and the US President-elect Donald Trump not supporting TPP. Therefore, the sector anticipates its export growth rate at just 5-7 percent if there are no appropriate policies, Truong said. The Vietnam Textile and Apparel Association (Vitas) has made several proposals to the Ministry of Industry and Trade on support for the local industry, including strengthening management of both domestic and foreign investment projects in the industry, reviewing policies on minimum wage raises and working hours. The association also asked for adjustments to the sector’s development and assistance in human resources training assistance. Vietnam’s textile and garment export revenues increased 4.8 percent year-on-year in the first 10 months of the year to reach 23.3 billion USD, according to Vinatex. The garment-textile export turnover needs to hit an average of 2.5 billion USD a month in the last two months of the year in order to reach this year’s target of 28-29 billion USD. The US is the top market of Vietnam’s textile and garment products with 10 billion USD, up 4.37 percent against last year, followed by Europe with nearly 3 billion USD, a year-on-year increase of 2.46 percent. Japan and Republic of Korea (RoK) are also among key markets for Vietnamese garment and textile. Forum seeks to boost technological cooperation, transfer Representatives from domestic and foreign financial investment funds, business development organisations and projects gathered at an international forum in the northern province of Thai Nguyen on November 10 to discuss ways to promote cooperation, investment and technological transfer. Vietnamese Deputy Minister of Science and Technology Tran Van Tung said the forum indicated the ministry’s effort to enable local enterprises and organisations to get access to advanced technologies and equipment. The move is expected to help domestic enterprises renovate their production and business processes, and produce high-quality and high-value products, thereby contributing to socio-economic development of regions and the whole country, he said. During the course of the forum, delegates discussed solutions to develop input materials, market demands, agricultural production and green technologies, and financial and technical assistance. Many of them stressed the need to complete a legal framework for the scientific and technological market, promote the enforcement of the Law on Intellectual Property and encourage innovation and renovated management in the fields of agriculture and green and clean technologies. Domestic organisations and firms networked with foreign partners to explore the possibility of cooperation and investment in technology. Many Vietnamese enterprises showed their desires to cooperate with partners both at home and abroad in developing new technologies and equipment, especially energy efficiency as well as waste, dust and noise treatment equipment. Sacomreal, Nguyễn Kim establish Kim Thành Real Estate     Sai Gon Thuong Tin Real Estate JSC (SCR), called Sacomreal, and Nguyen Kim Investment and Development JSC (NKID) have joined hands and set up the Kim Thanh Real Estate JSC.  Kim Thanh total chartered capital amounts to VND20 billion, with 59 per cent from Sacomreal, 40 per cent from Nguyen Kim and 1 per cent from individuals. The company will be a subsidiary of Sacomreal, as per the decision of Sacomreal’s management board, online newspaper Infonet reported. The board has also agreed to appoint Ho Huu Nhan as legal representative of Kim Thanh and authorise Pham Dien Trung, Sacomreal’s general director, to sign and implement contracts and related annexes. All 217 million SCR shares of Sacomreal will stop being listed on Ha Noi Stock Exchange’s HNX Index from Friday and will be registered to be listed on the HCM Stock Exchange. On Thursday, the last day on the HNX trading floor, 2.2 million SCR shares were traded at a reference price of VND9,100 per unit. Argentina potential market for Vietnam export products With more than 40 million people, Argentina is a potential market for Vietnam exporters and investors. According to preliminary statistics released by the General Department of Vietnam Customs, Vietnam’s exports to Argentina reached US$284.3 million in the first nine months of this year, a year-on-year increase of 3.39%. Major export products included footwear, rubber and rubber products, electronics, garment, and clothes. Footwear topped among exported items with US$46.4 million (up 49.42%), trailed by garment and footwear materials with US$45.4 million (up 33.25%) and garment (US$15.6 million, down 15.83%). Meanwhile, Vietnam imported animal feed, processing materials, plant and animal oil, milk and dairy products and garment materials and accessories from the Latin America country. In 2014, the Vietnam Chamber of Commerce and Industry signed a cooperation agreement with Mercosur-ASEAN Chamber of Commerce and set up the Vietnam-Latin America Business Council to connect Vietnam businesspeople who were interested in the Latin American market. The Chamber and Council are responsible for organizing trade and promotion activities to connect businesses from both sides. They also work as consultants for the two governments in order to further improve the business and investment environment for investors. However, exports to Argentina still face several difficulties. Vietnam Ambassador to Argentina Nguyen DinhThao said technical barriers to trade (TBTs) remained the biggest obstacle. He also pointed out some other barricades like geographic distance, the lack of market information and different trading strategies. In order to boost exports to Argentina, Vietnam businesses should develop long-term market strategies to supply high quality products and take full use of cooperation mechanisms and agreements already signed between the two governments, Mr Thao advised. HCM City looks to further capitalise on overseas remittances Ho Chi Minh City attracts the largest amount of overseas remittances among all cities and provinces in Vietnam, and it is working on how to optimise this source of capital. Remittances to the southern economic hub increased by 10 – 15% per year from 1993 to 2015, totalling more than US$50 billion  so far. They account for nearly 50% of the total remittances to Vietnam every year and make the city the top remittance destination in the country, said Nguyen Hoang Minh, Deputy Director of the HCM City branch of the State Bank of Vietnam. In the first nine months of 2016, remittances through official channels to HCM City approximated US$3.25 billion, rising by 4% from a year earlier. The amount for the fourth quarter is expected at US$2.4 – 2.5 billion, adding up to the whole year’s figure of US$5.7 – 5.8 billion. Most of the money was channelled into production, business and investment activities. More than 80% of the remittance-sourced credit was provided for production and business activities, while another 13% was given to the real estate sector. The US, Europe, Australia and Canada remain the biggest remittance sources aside from the key markets for Vietnamese guest workers such as Taiwan (China), Japan, Malaysia and the Republic of Korea. Experts said HCM City’s strong economic recovery compared to other localities is the reason that helps the city draws remittances. Banks based in HCM City predict overseas remittances to this locality, as well as Vietnam, will grow at an even faster pace in the near future thanks to positive signals in the economy, especially in production, real estate, finance and the stock market. Most of overseas remittances to Vietnam are sent by 4.5 million expatriates living and working in more than 100 countries and territories around the globe. Experts said overseas remittances are an important source of foreign currency that can help the city reduce dependence on foreign capital. They also add to capital supplies for financial institutions. Assoc. Prof. and Dr Nguyen Thi Nhung at the Banking University of HCM City perceived that overseas Vietnamese enterprises are looking for business opportunities in the homeland with a view to simultaneously earning profit and fostering the country’s economic growth. Nguyen Huu Tai, an expatriate businessman, said in the past, those companies usually invested in finance, stock market and real estate in Vietnam. Now they have switched their attention to other spheres such as producing specialties and agricultural products so as to take advantage of free trade agreements Vietnam has inked. To improve remittance attraction and use effectiveness, state management agencies should encourage overseas Vietnamese firms to invest in the prioritised sectors such as high technology and support industries, he suggested. Echoing this view, Pham Ngoc Hung, Vice Chairman of the HCM City Business Association, said the city should direct the remittance flow to projects with high technology and knowledge, which are in need in HCM City. The municipal administration should also create favourable policies on entry and exit, house ownership and investment registration in order to facilitate overseas Vietnamese’ business activities, he added. Overseas remittances can be a solution to the capital shortage faced by small and medium-sized enterprises (SMEs), according to Do Thu Hang from the Banking University of HCM City. She called on state management agencies to design policies promoting remittance-based microfinance products and SMEs’ access to these products. Meanwhile, commercial banks and money transfer companies should proactively solicit remittances and expand relevant services, said Assoc. Prof. and Dr Nguyen Van Lich at the Diplomatic Academy of Vietnam. He suggested the Ministry of Planning and Investment have a division specialising in remittance promotion and provide incentives for remittance-funded investment projects. Ca Mau looks at ways to support local fishery The Department of Agriculture and Rural Development of the southernmost province of Ca Mau has implemented measures to address challenges to local fishermen and ensure targeted output this year. The Department announced the output of aquatic products of Ca Mau province may only reach 85% of year’s target (285,000 tonnes) while the shrimp productivity will be 82% (142,000 tonnes). It is difficult for the province’s fishery output to meet with the goals as unusual weather has affected output with looming typhoons and tropical pressures. Epidemics may also occur as temperatures drop in winter. Meanwhile, capital to support the local fishery industry has yet to reach local farmers. The Department suggested the provincial People’s Committee provide guidance for local farmers and urged relevant agencies to inform them of unusual weather to minimise the impact of natural disasters. According to statistics, due to drought in early months of 2016 and downpour afterward, over 158,000ha of local fishery area was lost and more than 125,000 households were heavily affected. In the first four months of 2016, the province earned nearly US$275 million from aquatic exports, mostly shrimp, up three percent from last year. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR