BUSINESS IN BRIEF 16/11 Hue welcomes 2.74 million visitors in 10 months Over 2.74 million tourists visited the former imperial city of Hue in central Thua Thien-Hue province in the first ten months of 2016, representing a year-on-year increase of 12 percent. Among those, 900,000 are foreigners, up 3 percent against the same period last year. The locality raked in 4.5 trillion VND (202.5 million USD) from tourism services in the reviewed period. The results were attributable to the local authorities’ efforts to promote tourism. A tourism site has been formed in Chan May Port and wharfs were constructed in Tam Giang Lagoon to serve sea cruise visitors. Attention was also paid to diversifying and fully tapping tourism products and services, especially in Nam Dong and A Luoi districts. In the coming time, the local tourism sector will continue implementing more measures to solve difficulties facing travel enterprises. It will also focus on developing new tourism products like beach-camping, spiritual tourism, riding tours to lagoons, and those linked with local specialties. From December 24-30, the Hue Monuments Conservation Centre is scheduled to launch a “golden week” promotional programme - the third event of this kind in the year. Visitors to Hue in the period will be provided with free tickets to visit several sites in the ancient imperial relic complex. In 2015, the Complex of Hue Monuments welcomed over 2.3 million visitors. In the first seven months this year, 1.36 million tourists visited the site, including 750,000 foreigners. Chan May Port has so far welcomed 22 cruise ships, which brought nearly 40,000 foreigners and about15,000 crew members to the ancient capital and other central localities. China firms eye 'Made in Vietnam' windfall - if Obama's TPP survives From textiles and shoes to paper and furniture, Chinese manufacturers are pouring investments into neighbouring Vietnam, hoping to ride on the coattails of the Southeast Asian country's pending trade blitz. Vietnam's Free Trade Agreement (FTA) with the European Union, signed last year, and the Trans Pacific Partnership (TPP), if it clears significant political hurdles in the U.S., would collectively give the country access to markets worth US$44 trillion in combined gross domestic product. Even as doubts linger over the future of U.S. President Barack Obama's TPP once he leaves office, early moves by China Inc to leverage off Vietnam's lower factory wages - about a third that of China's - show a re-centering of the world's factory activity. Importantly, a base in Vietnam gives Chinese manufacturers access to trade agreements of which China is not currently a part. "So far this year, I've had more than 30 Chinese wood companies coming to me for consultation," said Nguyen Ton Quyen, who heads Vietnam's Timber and Forest Product Association. "There's a considerable amount of Chinese wood furniture firms moving their investments to Vietnam, to enjoy tax incentives." Chinese inflows into Vietnam in 2015 doubled from a year earlier to US$744 million and 80% of that was in the second half of the year, just after Vietnam signed the EU FTA and the TPP. In the first nine months of this year, investments from China quadrupled to US$1 billion compared with the same period in 2015. Vietnam has numerous other free trade agreements, including with top investor South Korea, supporting resident giants like Samsung and LG. As a part of the Association of Southeast Asian Nations, it also enjoys free trade with other members of the 10-nation zone, plus the various bilateral agreements the bloc has with other economies, like China. Nguyen Chien Thang runs a furniture factory and is also feeling the Chinese surge. He estimates a third of the approximately 500 foreign-owned wood processing firms in Vietnam are from China and Taiwan, adding to competition for his Scansia Pacific, a supplier for Swedish giant IKEA. "Tax rates here are also much more favourable," said Thang. "Labour costs in their mainland are getting much higher." Much of the investment is going into Vietnam's textile industry, the second biggest garment exporter to the U.S. after China, supplying brands such as Nike, Adidas, Zara, Armani, and Lacoste. The U.S. Department of Commerce projects U.S. imports of textile and apparel from Vietnam to jump 45% to US$16.4 billion by 2025 from 2015 while such imports from China are expected to tumble 45% to US$23.7 billion. Vietnam's trade agreements with TPP and the EU require textile manufacturers source their own yarns, dyes and fabrics locally or from within the respective trade blocs. For Chinese firms in Vietnam, this means securing access to local supply chains. To prepare for TPP, Chinese textile group Texhong Textile is building a US$450 million industrial park in northern Quang Ninh province, with an additional US$640 million for supporting industries. To be sure, this year's U.S. presidential campaign has cast deep doubts over the TPP. Before last year, TPP approval on Capitol Hill looked highly likely, but now neither candidate is willing to support a deal that could have implications for US jobs. Donald Trump has called the TPP a "death blow" for US manufacturing, while rival Hillary Clinton appears to have backtracked on her previous advocacy for the TPP while serving as Obama's Secretary of State. While US political noise has created anxiety for those invested in Vietnam, there are hopes Clinton might change her tune on TPP or seek an alternative version of it if she becomes president, in contrast to Trump's more stridently protectionist policies. Amid the uncertainty, Vietnam's ruling party has taken the ratification of the TPP off its agenda this year. "Vietnam so far hasn't shown a clear opinion on the two candidates ... but Vietnamese people have shown clearly that they want Hillary Clinton to win," said economist and former government advisor Le Dang Doanh. Even with the TPP in doubt, Chinese firms are looking to leverage off Vietnam's clout as an emerging industrial and trade power. Ironically, deals like TPP, Obama's signature trade policy intended to boost American influence in Asia and challenge that of China, have actually encouraged Chinese engagement. Rising investment from China is also changing Vietnam in other ways. Anti-China sentiment is entrenched in Vietnam, shaped by centuries of perceived Chinese bullying and sustained by recurring wrangles over sovereignty in the East Vietnam Sea. But there are signs Vietnamese are putting nationalist ideals aside and are learning Chinese, in the hope of getting jobs offered by China Inc and swarms of Taiwanese investors. In the sprawling industrialized province of Binh Duong, China and Taiwan are bringing huge job opportunities, with the two countries accounting for a third of over 100 new investment projects announced in the first five months of 2016. "I don't like China, or Chinese, but their firms are coming here more and more," said Minh Anh, a university student who juggles Chinese classes at night with university lectures and a part-time job by day. "Speaking Chinese may widen my job opportunities and help me earn a good job with good benefits." Low cassava prices plunge farmers into despair Cassava farmers in Gia Lai Province are in dire straits, unable to sell their produce even after prices have plunged below production costs. They have also suffered a steep decline in productivity. Cassava prices in the Tây Nguyên (Central Highlands) province have dropped to VND30,000-35,000 (US$1.3-1.5) per 100kg, much less than last year, a Nông Thôn Ngày Nay (Countryside Today) report says. Last year, cassava prices reached VNĐ1,800 per kg or VNĐ180,000 per 100kg, prompting farmers in the region to cultivate them. “After months of planting and care, we are getting just VNĐ35,000-40,000 for 100kg, what you pay for a bowl of phở (beef rice noodles),” lamented Lê Văn Thành, a cassava grower in Chư Drăng Commune. Thành said cassava had been a key crop helping farmers in Krông Pa District escape poverty over several years now, but prolonged drought has affected its yield and quality. Other crops were similarly affected, he noted. Cassava productivity this crop dropped by half over previous years, Thành said. "Last crop, I harvested about 30 tonnes of cassava per hectare, but this year, I’ve got just 17-18 tonnes. The drop in productivity and prices is a heavy loss and we don’t know what to do for the next crop,” he added. The report says farmers had to invest over VNĐ15-20 million (over $670-897) per hectare for planting cassava, but were able to recover just VNĐ5-6 milllion ($224-270) after harvest. Farmers are harvesting the crop now, but the low prices have prevented many traders from buying it, push farmers even deeper into hopelessness. Đinh Văn Duyên, head of the Agriculture and Rural Development bureau in Krông Pa, said the area for cassava cultivation reached 15,000ha for the 2015-16 crop. But the area planned for cultivating this crop was just around 8,500ha. “Every year, farmers have rushed to grow this plant, despite warnings,” Duyên said. The low prices at present badly affected farmers’ incomes and lives, he added. The local authorities are trying to guide and advise farmers cultivate others plants in order to improve their land and earn more money. Nguyễn Văn Vũ, a local farmer planted 1ha of grass for breeding cows instead of cassava. He said that he earned more from planting grass. A representative of the FOCOCEV Joint Stock Company, which purchases cassava from local farmers, said the decrease in prices was due to fluctuations in cassava starch prices in domestic and world markets. Last year, the average selling price was US$350-360 (VNĐ7.8-8 million) per tonne of cassava starch, but now it is just $270-280 ($6-6.2 million) per tonne, the company said. 20% ceiling on personal loans may go Vietnam is likely to remove the ceiling of 20 per cent interest rates on personal instalment loans and introduce a limit of VND10 million ($445) on each loan under a draft circular from the State Bank of Vietnam (SBV) providing guidance on personal instalment loans. Financial companies and commercial banks can negotiate interest rates on personal instalment loans with customers but the best possible rates should be offered to support borrowers, ensure their repayment capacity, and limit any risk of bad debts. The $445 limit can be reviewed by the SBV Governor from time to time. There is a great deal of risk incurred when financial companies provide loans to customers and customers likely to take out such loans are low or middle-income earners with limited knowledge of finance, the draft circular noted. The draft will guide personal instalment lending by financial companies, protecting the rights of customers and ensuring the transparency and sustainable development of such lending. The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade (MoIT) previously revealed that interest rates on personal instalment can be as high as 60 to 70 per cent per annum and warned customers to be careful when signing up for loans. In recent times there has been much confusion in regard to interest rates on personal instalment loans. Under the Civil Law from 2015, which will come into effect on January 1, 2017, rates are not to exceed 20 per cent per annum except in cases where other laws take precedence. Mr. Phan The Thang, Deputy Director of the Consumers Right Protection Office at VCA, believes that personal instalment loans bear high operating expenses and a high risk of irrecoverable debt and so come with high interest rates. Many financial companies have said that they cannot operate on a 20 per cent limit. Other regulations may be needed to either adjust or remove the ceiling, according to Mr. Thang. In its draft circular the SBV permits related parties to negotiate interest rates. Notes attached to the draft state that the SBV believes the Law on Credit Institutions allows related parties to negotiate. Based on this, the draft circular does not regulate a ceiling, meaning the limit under the Civil Law will not apply to financial companies providing personal instalment loans. According to Mr. Nguyen Hoang Minh, Deputy Director of the SBV’s Ho Chi Minh City branch, the negotiated interest rate will not be set freely, with the SBV requiring that banks and financial companies offer affordable rates to support borrowers. The draft also requires financial companies notify the customer of the amount of interest payable by year, month and day, to make it “convenient for customers to compare the rates of other commercial banks and financial companies.” The draft also requires the amount of interest be calculated based on the remaining debt owed and not on the initial amount. However, the CEO of the Basico Law Firm Mr. Tran Minh Hai believes the draft runs counter to a market economy. “The SBV seems to be too concerned about interest rates,” Mr. Hai was quoted as saying. The regulation that interest rates calculated by year, month and day with or without a ceiling and be based on the amount outstanding is for easier management, he said, but its inflexibility makes it unsuitable for the banking and finance sector. Interest rates and the method of calculation should be open to negotiation, he believes. The draft aims at protecting consumers as in recent times there have been complaints from consumers about higher than expected interest rates compared to those advertised. Many advertisements quote low interest rates but a few months after signing the contract customers realize there are hidden costs. A preferential interest rate of zero per cent or one to three per cent per month only applies for the first one or two months or a short period of time and afterwards increases drastically and is always calculated based on the initial loan amount. Drafters paint a picture of customers that “have average or low incomes, limited knowledge about finance, demand to borrow small amounts for short periods, and have difficulty in accessing the personal instalment loans of commercial banks.” Mr. Hai believes that to protect customers the SBV can regulate that financial companies explain interest rates, penalty rates, and costs specifically and thoroughly to customers. If financial companies cannot prove that they have explained these carefully to customers then there will be fines imposed. Vietnam-ASEAN trade turnover tops $42 billion The bilateral trade turnover between Vietnam and ASEAN has highly grown for recent years, increasing 13 times from US$3.3 billion in 1995 to $42.1 billion in 2015, reported the General Customs Department. The turnover is forecast to further increase this year. ASEAN is now one of the most important trade partners of Vietnam. The bloc is among the three largest export markets of Vietnam after the US and EU, maintaining high growth rate. Many Vietnamese brand names have become familiar in ASEAN nations such as Thien Long pen and Cholimex chili sauce. The two sides’ turnover increase has been thanks to tariff barrier removal, facilitating goods and services’ circulation in the region. Cambodia and Myanmar have imposed 0 percent tax rate on fertilizers imported to the countries. Cambodia has been the largest fertilizer importer of Vietnam with over 300,000 tons a year. Online guide to gain license for foreign investors in HCMC The HCMC Department of Planning and Investment has launched a new service permitting foreign investors to register capital contribution and share purchase on the internet since early November. Businesses will email their documents to the department whose staff will check and guide them to complete the procedure within 24 hours. After documents are completed, they will print them out and directly submit to the department. The new service aims to reduce travel time for investors and help them not have to change documents for many times. In addition, the department has implemented online business registration service, permitting customers to submit their documents online and receive them back at home by registering postal service. Gov’t prepares for national conference on business environment The Government yesterday asked ministries, related agencies and local authorities to analyze downgraded economic indicators this year and propose solutions to better them in preparations for a national conference on improving business environment. In the resolution of the regular cabinet meeting in October, the Government requires them to take a look on the downgraded economic indicators announced by the World Bank and the World Economic Forum. Their working results would be sent to the Ministry of Planning and Investment which synthesize and report to the Prime Minister in November to prepare for the national conference. The Government also asks ministries and agencies to focus on improving business environment and competitiveness in their fields. In addition, the Ministry of Finance has been required to coordinate with the Steering Board on Enterprise Reform and Development and the Government Office to organize a national conference on equitization and state own enterprise restructuring in November. Compensation for central sea pollution to be completed by yearend Deputy Prime Minister Truong Hoa Binh has asked related ministries and localities to concentrate on paying compensation by Taiwanese steel company Formosa for citizens affected in a case of sea environment pollution in the north central region by the end of this year. The environmental disaster was caused by the Taiwanese company who discharged wastewater into the sea, killing fish en masses in April this year. The deputy PM required the ministries and localities to transparently and publicly give compensation to beneficiaries and consider it as their key mission this year. Mr. Binh has tasked the Ministry of Agriculture and Rural Development to complete a project to determine damage and compensation levels, ensure welfare and support affected citizens to resume production in Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue. The project will cover job transfer, livelihood, coral and sea grass growing and sea environment recovery in the four provinces. The Ministry of Industry and Trade has been asked to immediately implement necessary measures to consume inventory seafood meeting food safety standards, work with the Ministry of Health and the Ministry of Agriculture and Rural Development to handle consignments uncontaminated but out of date. In addition, the ministry should take the initiative in working with the Ministry of Finance, the Ministry of Agriculture and Rural Development to define compensation levels for individuals and establishments with seafood in stock and assist them with 100 percent of electricity cost and interest rate. The Ministry of Natural Resources and Environment should guide and supervise local authorities to destroy unsafe seafood consignments, install environmental observation systems in the four provinces, regularly and continuously operate them to update and publicize observation results on the media. The Ministry of Health continues taking seafood samples from the bottom of the waters within 20 nautical miles from the shore for testing and declaring products meeting food safety standards, the deputy PM asked. The Ministry of Labor, Invalids and Social Affairs in coordination with the Ministry of Agriculture and Rural Development should build a joint vocational training scheme for local people. The people’s committees of Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue provinces have been requested to continue rice and financial assistances to citizens. On November 6, the People’s Committee of Ky Anh district, Ha Tinh province paid nearly VND30 billion (US$1.34 million) in compensation to sea pollution affected locals in Ky Xuan commune after the sea environment disaster. Of these, VND25.4 billion went to fishing boats and workers aboard and VND4.3 billion to those losing their jobs. Ky Xuan is the first commune receiving indemnity in the district. Previously, district authorities had done statistics and met local citizens to list households eligible for the compensation and publicly posted the list for locals to be aware of. Seafood exports fetch US$5.7 billion in ten months Vietnam’s seafood revenues in July reached US$687 million, pushing the total figure in the first ten months of this year up to US$5.7 billion, a year-on-year increase of 5.9%, reported the Ministry of Agriculture and Rural Development. The US, Japan, China and the Republic of Korea were the four leading markets for Vietnamese seafood, while the highest surge was seen in the Chinese market at 51.1%, followed by the Netherlands at 14.4%, the US at 14.3% and Thailand at 10.8%. The Vietnam Association of Seafood Exporters and Producers (VASEP) stressed the need to strengthen food safety controls on seafood for export as well as to assess and classify import enterprises to be prioritised in quarantine exemptions and reductions. At the same time, it was necessary to evaluate the effects of saltwater intrusion in the Mekong Delta region to apply measures to balance three factors: the breeding season, production varieties and feed production, the association advised. VASEP also underscored the need for investment and support in offshore fishing and storage to increase productivity and profits for fishermen and provide sufficient materials for export, together with enhancing trade promotion and seeking new markets. Earnings from Tra fish exports are expected to increase 5% to reach US$1.6-1.7 billion in 2016, according to VASEP. Foreign arrivals may reach 9.7 million in 2016 Viet Nam may attract 9.7 million foreign visitors in 2016, according to the National Administration of Tourism. The General Statistics Office reported the number of foreign arrivals in the first ten months increased 25.4% to 8.077 million while the number of domestic visitors reached 53.3 million. The total revenue from tourism was estimated at over VND331,500 billion, a year-on-year rise of 19.1% compared to the preset target of VND 230,000 billion. Head of the Viet Nam National Administration of Tourism Tran Van Tuan said that the sector will continue speeding up both inbound and outbound growth. For the rest of the year, the sector planned to organize promotion programs in nine cities in China, Spain, ASEAN nations and joining international tourism fairs. Phu Lac wind power plant switches on      Phu Lac wind power plant located in the Tuy Phong District of central coastal Binh Thuan Province will be completed on November 25 after 14 months of construction. The project has a total investment of nearly VND1.1 trillion (US$49.3 million), including 85 per cent of loans from KfW Bank (also known as Germany Development bank). This is the first project that Binh Thuan wind power Joint Stock Company has borrowed with interest from Denmark via KfW Bank. On September, the plant successfully put its first turbine into operation and connected with the national power grid. Phu Lac Wind Power Plant, in its first phase, has a total capacity of 24MW which uses the technology of Denmark-based Vestas brand with 12 piers. After going through Phu Lac transformer station, the power source was officially connected with the 110KV Ninh Phuoc-Tuy Phong transmission line of the national power grid, supplying additional power for Binh Thuan Province and the southern provinces.  Ambiente to bring people new trends Ambiente, the global consumer-goods platform, is scheduled to be organised from February 10 to 14, 2017, at the Frankfurt Exhibition Centre, Germany. The trend barometer, ordering platform and design showcase will present products for the dining table, the kitchen, household goods and gourmet items, as well as the home, furnishings and gifts during the five-day event. Ambiente is divided into the three major product areas – "Dining", "Living" and "Giving." “Ambiente is the centre of the worldwide consumer-goods market. Exhibitors from more than 90 different countries will be showcasing their new products in Frankfurt and setting trends for the whole of 2017,” Stephan Kurzawski, senior vice president, Messe Frankfurt Exhibition GmbH, said. More than 4,300 exhibitors from 96 countries visited the Frankfurt am Main to attend Ambiente in 2016, where, over a gross floor area of 308,000sq.m. and for five whole days, they showcased new products and innovations. Việt Nam was represented by 57 companies and ranked 19th among exhibitor nations. Vietnam – biggest processed shrimp supplier for Australia Vietnam has secured its position as the biggest shrimp supplier for Australia, accounting for more than 33% of the country’s total imports. According to the Vietnam Trade Office in Australia, Australia shrimp imports from five major suppliers saw a decline in the first eight months of this year, of which Indonesia suffered the deepest decrease of 50%, trailed by Malaysia (down 30%), Vietnam (down 8.3%), Thailand (1.9%) and China (0.3%). Australia ranks seven among consumers of Vietnam shrimps, making up 3.3% of Vietnam’s total shrimp exports. However, Vietnam exports to the market fluctuated during the first nine months of this year. After enjoying a robust growth in the first quarter, exports to Australia dipped in the second quarter. In total, shrimp exports to Australia dipped 9.9% to US$75 million in nine months this year. Australia imports around 30,000 tons of shrimps each year. However, strict food hygiene and safety measures have prevented countries to export fresh shrimps to the market. Vietnam has remained the biggest supplier of processed shrimp to Australia over the past five years. Vietnam relevant agencies have actively negotiated with Australian partners to ship fresh shrimps to the market. A group of Australian experts is expected to come to Vietnam in the fourth quarter of this year for evaluation, testing and to consider conditions for the import of fresh shrimps to the market. After Vietnam becomes the first country to ship fresh shrimps to Australia, it is expected that exports to other demanding markets in the world will grow rapidly.  Honeywell’s CPS to help Dung Quat refinery improve efficiency Honeywell has announced that Binh Son Refining and Petrochemical, a subsidiary of Vietnam’s state-run oil and gas PetroVietnam will use its new IIoT-based Connected Performance Services (CPS) offering to improve the performance of its manufacturing operations in Binh Son Refining and Petrochemical will use CPS technology which integrates Honeywell UOP’s deep process knowledge to improve refinery and plant performance at its naphtha complex. CPS is part of Honeywell’s Connected Plant initiative, which leverages IIoT technologies, services and domain expertise to improve all aspects of industrial operations from supply chain efficiency to asset optimisation. “Honeywell’s CPS technology uses the plant’s own process data with cloud-based optimisation and reliability solutions to ensure the operation runs at peak efficiency,” said Zak Alzein, vice president for Honeywell UOP’s CPS business. “Honeywell will be in a position to use plant-specific information to provide Binh Son Refining and Petrochemical with actionable recommendations that can significantly improve its profitability.” CPS gives refineries and petrochemical and gas processing plants greater visibility into their operations. Problems that reduced plant efficiency and productivity and that persistently avoided detection can be quickly identified and resolved using recommendations from CPS. As a result, plants can produce more and avoid unplanned shutdowns for maintenance and repair, resulting in millions of dollars per year in increased productivity. The service continuously monitors streaming plant data and applies UOP process models and best practices, big data analytics, and machine learning to find latent and emerging performance problems, alert plant personnel and make specific operational recommendations. These recommendations are reported simultaneously to a dedicated Honeywell UOP process advisor, who also monitors performance and provides additional direction and resources. “The CPS system is an important tool to help our refinery produce more gasoline and consume less energy,” said Tran Ngoc Nguyen, president and CEO of Binh Son Refining and Petrochemical. “We believe it will improve our staff’s capabilities so they can keep our operation running at peak performance.” The service also can also help manage energy consumption to maintain compliance with regulatory standards, and also bridge knowledge gaps among personnel by leveraging the full breadth of Honeywell UOP’s troubleshooting expertise, available at their fingertips. Taken together, the features of CPS allow refineries to operate more efficiently and make the best use of every barrel of feedstock. Property rakes in second-highest FDI The property sector has been the second-highest attracter of foreign direct investment in the first ten months of this year, with 46 projects at an aggregate $982.59 million. According to recent statistics published by the Ministry of Planning and Investment, the property sector was behind the manufacturing and processing sector, which has so far accrued a total of $12.84 billion in 842 newly-registered and 691 capital-added projects, equaling 72.9 per cent of the total foreign direct investment (FDI) inflow to Vietnam. Some notable investments by foreign investors include the $226 million real estate project named Midtown by Cayman Islands and the $6 billion Saigon Peninsula project by Pavilion Group, Genting Malaysia Berhad, and Vietnamese partner Van Thinh Phat. There is also the complex of port and industrial zones in the north-eastern province of Quang Ninh with the investment capital of over $315 million. Moreover, Amata Long Thanh will earmark $309 million to build up an urban  development project in the southern province of Dong Nai. In addition to the usual South Korean and Singaporean investors, the Japanese are emerging with a range of projects. Japan’s Meade Group, the contractor of the Ho Chi Minh City Metro Line’s Ben Thanh-Suoi Tien stretch, just started work on a $30 million high-end real estate project in Ho Chi Minh City’s District 2, called Wateria Suites. Previous to that, Daiwa House Industry, Nomura Real Estate Development, and Sumitomo Forestry were awarded an investment certificate to develop a $220 million condominium project in Ho Chi Minh City’s District 7. And then there are the big players. Kajima Corporation joined with Indochina Land for a range of property projects with the total investment of around $1 billion in the next ten years. Mitsubishi Estate, another famous Japanese property developer, recently diversified its portfolio in Vietnam by buying into a property development project in Hanoi, with the total investment of $1.9 billion. According to Yakabe Yoshinori, Deputy Consul General of Japan in Ho Chi Minh City, with the increase in the middle- and high-income classes, the supply of safe and secure housing is becoming an urgent issue. “The real estate sector is becoming very attractive to foreigners as well, with revised housing regulations since July of last year which allow foreigners to own houses in Vietnam,” Yoshinori said, at a recent signing ceremony for Ho Chi Minh City’s Kikyo real estate complex. The project is a joint venture between domestic  Nam Long Investment Corporation and two Japanese partners, Nishi Nippon Railroad and Hankyu Realty. Japanese investors prefer to acquire projects which have completed investment procedures and are coming into the construction phase, rather than joining them from the beginning. They have shown a special preference for projects which are coming into operation and starting the turnover collection period. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR