BUSINESS IN BRIEF 22/11 Satra to expand retail business to Can Tho   Saigon Trading Corporation, or Satra, will expand its retail store system to Can Tho City, which is considered the largest in the Mekong Delta. Speaking at a conference last Friday held in Can Tho, Nguyen Phuc Khoa, deputy general director of Satra, said his corporation will invest heavily in retail business in the city. Satra will open convenience food stores named Satrafoods, and develop the Centre Mall commercial centers and Satramart supermarkets citywide, mostly in Ninh Kieu District. As planned, Satra will open an office to oversee store chain development later this year, and Satrafoods convenience stores will be launched into operation in Ninh Kieu District early next year, Khoa said at the conference organized to promote a linkage between the production and distribution of farm produce. Khoa told some 100 suppliers of agro-forestry-aquatic products in the Mekong Delta that such products have to meet prevailing food safety and hygiene standards before appearing on the supermarket shelves of Satrafood.  Nguyen Minh Toai, director of Can Tho City’s Department of Industry and Trade, said the city has 16 supermarkets and commercial centers, and 107 traditional markets and convenience stores. Some big brands, including LotteMart, Vincom, VinMart, CoopMart, Big C, and Metro are already present in the city. Vietnam’s aluminum faces Australia’s tariffs of 34.2% Australia may slap anti-dumping tariffs of up to 34.2% on aluminum extrusions imports from Vietnam following a preliminary conclusion announced last week by Australia’s Anti-Dumping Commission (ADC). The Vietnam Competition Authority (VCA) at the Ministry of Industry and Trade said ADC last month announced an initial conclusion on the anti-dumping investigation into aluminum extrusions imported from Malaysia and Vietnam, claiming their prices were below fair market levels.  The initial conclusion showed Vietnamese enterprises had dumping margins from 8.5% to 34.2%, and Malaysia from 4.3% to 14.5%. Australian authorities have been investigating aluminum extrusions dumping and subsidies by Vietnam and Malaysia. But there has yet to be a preliminary conclusion on anti-subsidy. Pending a final conclusion, which is expected to come out in January 2017, ADC last month imposed temporary anti-dumping duties to protect the local industry from injury. The anti-dumping and anti-subsidy investigation began in mid-August after Australian aluminum extrusion manufacturer Capral Limited filed a case against aluminum extrusion imports in late June, with Vietnamese producers accused of dumping aluminum extrusions on the Australian market with a margin of 10.19%. The company also claimed that producers in Vietnam were receiving subsidies from the Government, including preferential import tariffs for fixed assets, low corporate income tax and tax incentives for non-agricultural land. Aluminum extrusion products from Vietnam and Malaysia are currently subject to a 5% tax rate in Australia. SHTP in deal with foreign partners The Saigon Hi-Tech Park (SHTP) in HCMC has signed a memorandum of understanding with South Korea’s Daegu University and Hebronstar Strategy Consultants Company to cooperate in research and development of high-tech and startups. The signing took place during a conference on applications of technology and nano material in HCMC last week, which was attended by nearly 30 speakers from Vietnam and foreign countries with advanced nanotechnology including the U.S., Japan, Korea, and Singapore. SHTP and Daegu University will implement programs on technology transfer and commercialization, and share information about the success stories of Korean firms. In the MOU clinched with Hebronstar, the two sides will cooperate in providing human resources and advice for investors, and supporting startups in both Vietnam and Korea. HCM City, European businesses enhance cooperation Chairman of the Ho Chi Minh City People's Committee Nguyen Thanh Phong hosted Michael Behrens, new Chairman of the European Chamber of Commerce (Eurocham) on November 21 to discuss orientations for cooperation in construction and sustainable development. Phong thanked Eurocham for its role as a bridge linking the city’s leaders and European businesses operating in the southern economic hub.  Eurocham helped businesses understand the city’s new policies and it, together with other organisations of foreign investors in the city, built a close link to help the city’s leaders to get opinions from firms, facilitating foreign investors’ operations in HCM City, he said. He suggested Eurocham share experience in building green works of European urban centres, introduce energy-saving equipment using high tech and solutions to waste treatment. Behrens, for his part, said European businesses are willing to share their experiences and wish to cooperate with the city during its process of building and implementing the smart city project. Eurocham is ready to work together with HCM City in training high-quality human resources and receiving students to practice and work at European research centres and factories in Vietnam, he added. He affirmed that European firms stay ready to join hands in dealing with issues such as the use of renewable energy, water resources management, liquid and solid waste treatment, and urban transport system construction. Can Tho to boost win-win cooperation with Laos The Mekong Delta city of Can Tho will boost mutually-beneficial cooperation with Laos in mechanical engineering, handicraft, apparel and services in the near future, said Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam.  According to Nam, Laos has formed partnerships with the Lao provinces of Savannakhet and Champasak in the fields of agriculture, industry, education-training, commerce, tourism and transport.  Ten Lao students are pursuing graduate and post-graduate studies at Can Tho University under a local scholarship programme.  In the eight months of this year, Can Tho earned 1.3 million USD from export ò pharmaceuticals, soap, fertiliser, chemicals and vet medicine to Laos.  Through the municipal chapter of the Vietnam Union of Friendship Organisations, Can Tho regularly holds cultural exchanges on Lao festive occasions and welcomes Lao high-ranking officials to the city.  Firms in Can Tho and the Mekong Delta in general are working hard to expand Lao markets. Asian insolvency forum focuses on restoring stability The 10th Forum for Asian Insolvency Reform (FAIR 10), themed “Restoring stability”, took place in Hanoi on November 21. Co-organised by the Supreme People's Court of Vietnam and the World Bank, the forum attracted more than 100 delegates from international organisations and 18 countries and territories. Speaking at the event, Nguyen Hoa Binh, Chief Judge of the Supreme People’s Court, said over the past three decades, Vietnam has issued three laws on bankruptcy or a new law on bankruptcy in every 10 years, proving that the law has been updated frequently to meet the economy’s development requirements. The process aims to ensure that the law on bankruptcy will create a legal corridor for promoting economic development and social stability, he said.  Binh stressed that insolvency regulations in Vietnamese law are to effectively protect legitimate rights and interests of creditors, debtors and labourers as well as ensure social stability.  At the same time, the law on bankruptcy is an effective tool for restructuring the economy when it is seen as a mechanism to eliminate weak and loss-making enterprises, creating a healthy business environment for investors and helping maintain the existence of profitable enterprises.  With those goals, Vietnam’s existing law on bankruptcy clarifies conditions required to open bankruptcy procedures, simplify bankruptcy procedures, promote mechanisms and create conditions for restructuring and restoring businesses, Binh stated.  The law also increases rights of creditors and introduces the concept of the asset manager and liquidator to assist the court in restructuring and handling bankruptcy.  Reforms in the mechanism have brought in positive changes for insolvency settlement in Vietnam, which have been recognised by the international community, he affirmed. Bank service provider Timo debuts in Ha Noi      Banking service provider Timo had its official opening in Ha Noi on Saturday, with the launch of its member location “Timo Hangout” on Ngo Quyen Street. "Today, the average use of mobile phones by people takes up almost one-third of their time during the day. The debut of the Timo app helps members easily perform all banking using mobile devices,” said Don Lam, Timo founder, who was also a co-founder of VinaCapital. “Equipped with additional ATM and credit cards, and with the advantages of free transfers and foreign exchanges, I believe Timo will effectively support the majority of members in modern life," he said. Timo is a pioneer in the field of banking activities using technology, with no physical bank branches and a single location to welcome members and issue their cards. Timo crossed the milestone of more than 20,000 members in just six months after its debut in HCM City. The company noted that this is the right time for Timo to expand to Ha Noi to meet the needs of customers in the capital. Also at the event to mark its debut, Timo indicated it would be providing an optimised platform—from login steps to processing banking transactions—as it asserts its leadership in the online banking field in Viet Nam. Woolmark to show wool innovations in HCM City The Woolmark Company on November 24 will present the latest in Merino wool developments to buyers and designers in the performance wear segment in Ho Chi Minh City. Merino wool has positioned itself as a leading natural fibre in the sportswear industry thanks to its unique natural benefits such as breathability, temperature control and elasticity, explained Rajesh Bahl, manager of emerging markets at Woolmark. MerinoPerform™ is a trademarked range of Merino sports fabrics that provide comfort in performance apparel. The Merino fibre’s natural qualities such as: suitability for multi-climatic environments; natural breathability, elasticity, odour resistance, and moisture control make it perfect for the active user. MerinoPerform™ fabrics are manufactured by a carefully selected global group of manufacturers supplying the performance apparel market and meet with the strictest of quality control requirements. At the exhibition, Woolmark will present its latest commercial developments in Merino wool fabrics adapted for sports and outdoor apparel in – next-to-skin layers; mid and outer layers; soft and hard shell garments with Merino linings and laminates and seamless garments. Included in the exhibition, said Mr Bahl, will be a complete showing of the sportswear products line including such high demand items as sweaters, scarves, hats, socks, woven fabrics and knitted garments. HCMC banks lend VND800 trillion to five priority sectors Banks in HCMC in the year to date have lent over VND800 trillion (US$35.8 billion) to five priority sectors of agriculture and rural development, production of export goods, small- and medium-sized enterprises (SMEs), supporting industries, and high-tech enterprises. A report on the banking sector’s performance which the HCMC government released on November 15 said the sum made up 58% of total outstanding loans in the period. Banking operations have been stable with borrowing and lending increasing, and liquidity remaining ample. Many more banking services have been provided to customers and lenders’ profit has edged up.       Besides lending to the five priority sectors, banks partook in a number of programs to give preferential loans to clients, including homebuyers. Notably, nearly VND215 trillion worth of bank loans were pledged under the enterprise-bank connectivity program. The State Bank of Vietnam’s HCMC branch and the Banking Supervision and Inspection Agency in HCMC will closely monitor the city’s currency market and banking system in the final two months of the year. Credit institutions’ operations will be closely monitored by authorities to help banks to improve quality, restructure assets and capital sources, avoid risks, and ensure stable liquidity. The city will deal with ailing banks having bad debt surpassing 3% of total outstanding loans. HCMC posts GDP growth of 8.05% Gross domestic product (GDP) of HCMC is expected to reach VND1,037 trillion this year, up 8.05% over last year, according to a review meeting on the city’s socio-economic performance in 2016 and targets for 2017. Total retail sales of goods and services are forecast to climb 8.1% year-on-year, indicating the city’s market has ridden on stronger consumer demand. The city’s total export revenues have amounted to around US$30.64 billion, a year-on-year rise of nearly 6%, while its import bill has hit US$37.7 billion with major import items including computer components, electronic parts, pharmaceuticals, plastic material, and steel. Banks in the city have raised VND1,833 trillion, up 17% year- on-year. Of the sum, individual depositors account for 53%. Total outstanding loans have hit almost VND1,458 trillion, an 18% rise against last year, with most of them funneled into production and trading activities. The city government has set three major economic targets for next year: GDP growth of 8-8.5%, the ratio of total factor productivity (TFP) to GDP of 35% or higher, and total investment capital making up 30% of GDP. The city said its total budget revenues this year have amounted to VND303,816 billion, up 10.8% year-on-year, while its budget spending has totaled VND59,125 billion, down 1.64% year-on-year. For 2017, the central Government has assigned the city to collect VND347,882 billion for the State budget, and use VND60,369 billion of total shared revenue. Technology, manpower pivotal for Mekong Delta’s growth Technology and human resources are pivotal for the Mekong Delta to make the most of its natural resources, said Vo Hung Dung, director of the Vietnam Chamber of Commerce and Industry (VCCI) on the sidelines of a conference in Can Tho City. Tran Huu Hiep of the Southwestern Steering Committee told the conference on the delta’s development last Saturday that the region is facing two major challenges: globalization and climate change. Poor infrastructure, the need for advanced technology in agriculture, limited human resources and inappropriate policy also weigh on the delta, Hiep noted, but added that besides weaknesses, the region has growth potential. He said apart from general policy and orientations set by the State, each locality in the delta should review their advantages to map out their own policy to attract investment.  Speaking to the Daily, Dung of VCCI said coastal provinces have advantages in shrimp farming while localities along the Tien and Hau rivers are strong in catfish farming. Other localities have advantages in different sectors. He said Can Tho should strive to become a nucleus of development to support other provinces in terms of technology and logistics. Dung added Can Tho should concentrate its efforts on logistics, information technology and market research. Universities should adopt an intensive training method to provide skilled labor for businesses. While schools in Ca Mau and Kien Giang provinces should focus on the seafood and tourism sectors, Dung said, those in Bac Lieu and Soc Trang provinces can shift their training priority to wind power and brackish water shrimp farming.  Dung said the number of students may drop but students will be trained well and have good knowledge. Vietnam, EU agree in principle on legal wood trade Vietnam and the European Union (EU) have agreed in principle on a Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) after nearly six years of negotiations. Speaking at a press conference in Hanoi last Friday, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said timber and wooden products of Vietnam have been exported to more than 90 countries around the world, with total export turnover reaching more than US$7 billion in 2015. The agreement has important implications for the timber-processing sector and Vietnam’s agricultural sector as a whole. “After nearly six years of negotiations, the substance of the VPA has been agreed while some technical annexes remain to be finalized by negotiators in the next few months,” according to a joint statement released at the press conference. Cuong of the agriculture ministry said the vital content of the agreement is to ensure legal sources of wood and to meet the EU’s traceability requirements for all timber and wooden products. The FLEGT license to be issued to each shipment would allow Vietnamese firms to export their products to the union without requiring due diligence provisions of the EU Timber Regulations. At the same time, the agreement would promote sustainable development of Vietnam’s timber processing sector while expanding its reach into foreign markets, especially the EU. To implement the agreement, Vietnam needs to develop a timber legality assurance system and other reforms, including legislation to ensure the legality of timber imports, and effective mechanisms to detect violations and ensure law enforcement, according to Karmenu Vella, the European Commissioner for the Environment, Maritime Affairs and Fisheries at the press conference. He added Vietnam is the world’s major timber product exporter. Not only that, it also imports timber from many various countries. Therefore, it is necessary to ensure the legal origin of timber from the country. The EU said there would have much work to do after the negotiations. Both sides would have to modify part of their legal systems to implement the agreement. Huế revokes licence of delayed resort project Authorities in Thừa Thiên-Huế Province have decided to revoke the investment licence given to build a resort and upmarket residential areas in the region, after the project has been delayed. The province’s People’s Committee last week decided to withdraw the licence given to Vinconstec Huế. The project cost was estimated at VNĐ600 billion (US$27 million). In 2007, the committee handed over 70ha of land near a local lagoon to the investor, who promised to complete the project in 10 years. The proposal included the construction of a five-star hotel, a 26ha resort, 400 luxurious apartments, 150 ocean-view villas and 730 street-view houses. Work started in 2008 with some concrete frames for houses being built at the site in Phú Vang District’s Phú Thuận Commune, but construction came to a halt in 2012. The committee revoked the licence after they were approached by irate residents who had given land for the project and were upset by the delay. Local firms said the investor owes them money for the purchase of construction materials and for workers’ payment. There is a lot of public concern that the committee offered the project to an unqualified investor like Vinconstec. ACB to pay 10% dividends in shares      The Asia Commercial Bank (ACB) plans to issue more than 89.6 million shares as payments for 2015 dividends. According to the bank’s announcement, its shareholders will receive 2015 dividends in shares of 10 per cent. Deadline for registration is December 2 this year. Previously, in October, ACB received approval from the State Bank of Viet Nam to increase charter capital from VND9.38 trillion (US$416 million) to VND10.27 trillion, in a plan ratified at the bank’s shareholders meeting. ACB posted a pre-tax profit of VND415 billion in Q3, up 15.5 per cent against the same period last year. The bank’s total pre-tax profit in the first three quarters of this year rose 14 per cent to VND1.24 trillion. The bank’s non-performing loans stood at 1.13 per cent at the end of September, inching down against 1.31 per cent reported early this year.  Cashew industry sets standards      The Viet Nam Cashew Association (Vinacas) has set standards for cashew processing to nudge the industry towards cleaner production and ensure consistent quality. The standards, announced at the eighth Viet Nam Golden Cashew Rendezvous in Da Nang last week, cover input materials, technical requirements and equipment involved in cutting the nuts, sizing them at different stages, drying, peeling testa, grading cashew kernel, fumigation, packaging, and export. For instance, the specifications for raw cashew nuts for processing require the raw nuts to be harvested from cashew trees or transplants without using genetically modified technology and have maximum moisture content of 10 per cent, no mould, pests or bacterial contamination, a natural colour and so on. There are also comprehensive requirements for cashew processing plants, processing tools and others. Pham Van Cong, Vinacas deputy chairman, said firms have applied measures to make products meeting food safety standards for long. “[But] by promulgation of the standards, the association expects the more than 300 processing factories in the cashew industry to apply them in their production so that the industry can produce products of the same quality.” Nguyen Duc Thanh, Vinacas chairman, said the procedures would help the cashew industry meet consumers’ increasing demand for hygiene and food safety standards, non-genetic modification and origin traceability. Joseph Lang, managing director of Kenkko, one of Europe’s largest buyers, sellers and distributors of nuts and fried fruits, said a recent study on food trends in Europe by Deloittes, a major international consultancy group, identified two types of consumer groups – traditional (49 per cent) and evolving (51 per cent). While the first group bases its buying on traditional factors like price, taste and convenience, the second group is more concerned about health and sustainability, he said. As much as 95 per cent of the second group is interested in natural foods with limited processing, preservatives or artificial ingredients. Thanh said “Luckily, most cashew farmers in Viet Nam do not use banned substances. Products with Viet Nam origin all meet hygiene and food safety standards.” Nguyen Anh Hoang, director of the Binh Phuoc Province Department of Industry and Trade, said with more than 134,000ha under cashew, Binh Phuoc accounts for 43 per cent of the country’s total. The province is also home to hundreds of cashew businesses, he said. “We are establishing a set of regional criteria for sustainable cashew development, forming large cashew farms with intensive cultivation, transferring advanced technologies, focusing on planting high-quality and high-yield cashew saplings and applying advanced processing technologies to reduce production costs and improve quality and enhance competiveness.” Using automatic machines instead of manual labour makes it easy to control product quality in terms of colour, size and hygiene in line with international standards, he said. A business group called Group of Viet Nam Leading Cleaner Cashew Processors and Exporters was formed at the event. Viet Nam 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.  Entrepreneur group launches VN chapter      A chapter of Entrepreneurs’ Organisation, a global community that enables entrepreneurs to learn and grow, was launched in HCM City late last week. HCM City is the financial hub of the fast-growing Vietnamese economy. Moreover, the Vietnamese Government set a target of 6.7 per cent GDP growth in 2016 and 6.8 per cent in 2017. EO Viet Nam will serve to network a formidable array of entrepreneurs in the sectors of food & beverage, education, finance, corporate investment law, IT consultancy and banking. The chapter is charting a strategic growth plan for the next five years with the aim of bringing more entrepreneurs into the community. Since 1987, the global network has had more than 12,000 business owners with 160 chapters in 50 countries. At the launching ceremony, Harley Trung, co-founder of CoderSchool in HCM City, said that the city is a young, dynamic and vibrant city with many enterpreneurs. EO will serve as a platform and a bridge to connect them with each other, he said.  Viet Capital Bank and FPT IS ink deal      Viet Capital Bank and FPT Information System (FPT IS) have signed a contract to modernise the bank’s transaction system with customers, targeting to better serve its customers and create a foundation to deploy Omni-channel banking services. This system is included in the bank’s IT platform development roadmap towards digital banking. The system will help the bank improve service quality and significantly reduce time for processing transactions of customers at its branches and transaction offices. Meanwhile, a multi-channel transaction platform (Omni-channel) will be built to bring to customers the most convenient service and the Omni-channel would help the bank to deploy new transaction channels, such as VTM (Virtual Telling Machine), or new products and services on its existing transaction channels in a faster and more synchronised manner. In its IT development roadmap in the 2016-2020 period, the bank expects to complete its Transaction System with Customers and the Omni-channel in 2017, which will enable it to develop other transaction channels, such as VTM, and upgrade its existing transaction systems of Mobile Banking and Internet Banking. FPT IS, a member of FPT Corporation, is providing banking and financial solutions to more than 300 local and overseas banks and financial organisations.  Development of bicycles as transport in VN discussed      Viet Nam has witnessed a spectacular move from bicycles to motorcycles. Now it is the time to seek solutions by encouraging the public to move from motorcycles back to riding bicycles again, but it will not be an easy task, according to experts. They made their comments during a seminar, entitled “The role of bicycle transportation in the city – International experiment exchange and how to apply it in Viet Nam”, which took place on November 17 in Ha Noi as part of the ongoing international exhibition, Vietnam Cycle 2016. Viet Nam seeks vehicles that save energy, and the event showed the government’s interest in again using bicycles in the development of transportation, said Vice Chairman of Vietnam Cars, Motorbikes and Bicycles Association Nguyen Huu Son. Son noted that Viet Nam was one of the countries using very large numbers of motorcycles, thus leading to traffic congestion and air pollution. These concerns are receiving great attention by agencies and the public. In recent years, the Government has launched numerous policies to restrict the use of personal vehicles, such as cars and motorcycles. Also, the Government encourages people to use bicycles to reduce pollution from exhaust. In big cities such as Ha Noi and HCM City, bicycling is attracting people of all ages, pushing up sales of bicycles and electronic bicycles, he said, adding that the market is promising for both domestic and foreign companies. The return of Peugeot, the French bicycle giant, to Viet Nam after 20 years was clear evidence of this trend. At the seminar, Lionel Bayard, Export and Marketing Manager of France’s Peugeot Cycles, shared the experience of the French government in encouraging citizens to ride bicycles. For instance, France reduced taxes for those who cycle to work, offered free bicycles or assistance on bicycle routes, and required new buildings to provide parking for bicycles, he said. Lionel Bayard added that in 2015 France saw record sales of bicycles and accessories, valued at 1.7 billion euro. Also, the Government installed 55,000 bicycle stations in 42 cities. Of note, a pilot project on public bicycles in Ha Noi, called BK-BIKE, was introduced at the event. Phạm Tuan Hiep, Director of BK-BIKE project, said the project will pilot the creation of bicycle renting stations at Hanoi University of Science and Technology in 2016. Further, it is expected to test replacing motorbikes in the next two years with 1,500 bicycles and 50 public transport stations. The project will be expanded to Ha Noi’s central districts, with 400 stations and 12,000 bicycles, in 2019 and 2020. Hiep also proposed developing a public-private-partnership business model between State and private businesses. Nguyen Huy Tien, Deputy Head of Environment Department under the Ministry of Transport, said development of bicycle renting stations was an interesting solution and should be carried out soon. However, Tien suggested launching policies on upgrading infrastructure for bicycles and seeking investors. Vu Ngoc Tien, an amateur cyclist, said a revival of bicycling is needed to reduce environmental pollution, traffic jams, and because of the public’s increasing health consciousness. However, programmes and campaigns on using bicycles among the public should be carried out, with government institutes as pioneers. Nguyen Trai, also an amateur cyclist who spent 10 years cycling, said before beginning campaigns for using bicycles, the State needed to improve its infrastructure. Particularly, the current import duty on ordinary bicycles is too high, at 45 per cent, while the import duty levied on sports bikes is only 5 per cent. Actually, demand for sport bikes remain less and tax rates should be changed to encourage more people to use bicycles in Viet Nam. Bayer thinks creatively on rice solutions With its sponsorship of the 4th annual Rice Symposium, Bayer Vietnam has continued its efforts to solve the challenges facing the Vietnamese agricultural sector through promoting dialogue and innovative solutions. bayer thinks creatively on rice solutions hinh 0 The company has been the key sponsor of the annual Rice Symposium, organised by the Vietnam Economic Times. Themed “How to Enhance Vietnamese Rice Quality and Brand Positioning to Meet Market Needs”, the 4th Rice Symposium gathered more than 150 delegates representing key stakeholders across public and private sectors nationwide, including government bodies such as the Party Central Committee Commission for Economics, the Ministry of Agriculture and Rural Development, the Vietnam Food Association, agricultural and scientific institutions, and rice value chain partners. The symposium was organised to address the significant challenges that farmers of rice and other crops are facing, such as severe drought and high salinity intrusion due to climate change. And Vietnamese firms have to sell its wares in a tighter export market. “Bayer is committed to tackling farming challenges with high value seeds, innovative crop protection solutions and services for modern and sustainable agriculture. We at Bayer believe that the challenges will be best addressed and solved in a close co-operation among all stakeholders,” said Kohei Sakata, general director of Bayer Vietnam, one of the keynote speakers at the symposium. “This is why Bayer supports the idea of this Rice Symposium to further engage in dialogue with all key stakeholders in the sector – not only to acknowledge the issues of agriculture in Vietnam, but more importantly introduce concrete innovative solutions to help Vietnamese farmers overcome these challenges and thereby intensify agricultural production in a sustainable way,” he added. In 2016, Vietnam’s rice industry has faced many challenges. A severe drought earlier in the year resulted in high salinity levels in the Mekong Delta, raising concerns over the delta’s future. Rice production fell by 1.1 million tonnes according to the United Nations’ Food and Agriculture Organization (FAO). In addition, Vietnam’s rice export is estimated to drop to 5.65 million tonnes in 2016, down 14 per cent against the previous year – and 800,000 tonnes lower than initially forecast.     Since 2014, Bayer Vietnam has developed and implemented its four-point action plan as a holistic approach to deal with farming challenges in Vietnam. The plan includes leading innovation to address the key challenges of rice farming; enabling farmers by providing them with tools, technology, and training; raising agricultural productivity in an environmentally-compatible and sustainable manner; and expanding partnerships across the rice value chain, and between the public and private sectors. At the Rice Symposium, Bayer Vietnam showed newly developed solutions for Vietnamese farmers to overcome challenges from climate change and to improve rice quality and yields.  The company’s effort to strengthen the public-private partnership across the rice value chain was also highlighted. Bayer Vietnam, in partnership with the Cuu Long Rice Research Institute, introduced an innovative solution which helps farmers to manage weeds more effectively – called the Dry Direct Seeding Technology.  This technology is considered an alternative crop establishment method for rice, where seeds are sown directly into dry soil without raising them in a nursery.  After being sown, the dry seeds can remain viable in dry soil from 15 to 20 days. They then will germinate with the first significant rain. Bayer Vietnam has also launched two new rice varieties to meet the rising demand for diversified rice breeds and pressure from climate change. “We are proud to offer BTE1 and TEJ Vang hybrid rices to Vietnamese farmers. Due to heterosis, these hybrid rices have significant advantages over in-bred rice. They offer up to 20 per cent higher yields, higher tolerance towards biotic stresses, and stronger root systems for better water and nitrogen-use efficiency,” said Sakata. Nielsen: Loyalty programs attract faithful Vietnamese followers Loyalty programs are crucial to attract customers, more than seven in ten Vietnamese (74 per cent) somewhat or strongly agree, and all other factors being equal they will buy from a retailer with a loyalty program over one without, the latest survey conducted by market researchers Nielsen reveals. The Nielsen Global Retail Loyalty-Sentiment Survey polled more than 30,000 online respondents in 63 countries to understand what drives consumers to participate in retail loyalty programs. More than six in ten of Vietnamese loyalty program participants (61 per cent) agree that loyalty programs make them more likely to continue doing business with the company and more than two-thirds (73 per cent) agree that they shop more frequently and spend more at retailers with loyalty programs. In Asia-Pacific, the survey found, Vietnam and New Zealand have the highest sell-report rate of loyalty-program participants, with 84 per cent saying they belong to one or more loyalty programs. Mobile shopping apps are also quite attractive in Vietnam (66 per cent) and particularly attractive in India (80 per cent), Thailand (78 per cent) and China (74 per cent), the report showed. “It’s true that many shoppers appear to love loyalty programs,” said Mr. Roberto Butragueño, Associate Director, Retail Services at Nielsen Vietnam. “Effective loyalty programs are intended to ultimately increase a retailer’s share of the consumer’s wallet.” “But there is often a large gap between the number of programs in which shoppers are enrolled and the number in which they actively participate. Loyalty programs cannot be designed in a one-size-fits-all manner.” According to the survey, financial incentives are the primary reason for participating in loyalty programs. Nearly half of Asia-Pacific respondents who participate in loyalty programs (49 per cent) somewhat or strongly agree that they join these programs for product discounts. More than four in ten Asia-Pacific respondents say they join because of rebates or cash back offers. The rate is even higher in Vietnam, at around five in ten. Fewer Vietnamese participants say free shipping, frequent flyer points, and higher priority services are among the most-valued benefits, with 37 per cent, 26 per cent and 21 per cent, respectively. There are big differences in loyalty program preferences and habits across consumer groups. These differences include how consumers want to engage with their loyalty program, what tangible benefits they are seeking from loyalty programs, and even how much they care about loyalty programs. Retailers, therefore “need to determine who they want to bring into the store or onto the website more, and design a loyalty program for them,” Mr. Butragueño said. SBV approves changes at VietCapital Bank VietCapital Bank has been given approval by the State Bank of Vietnam (SBV) to make certain changes to its operations. The bank can alter its charter capital and increase credit growth to 30 per cent, according to SBV's Dispatch No. 8527 dated November 7. The SBV Governor also directed VietCapital Bank to introduce credit solutions that improve its business, ensure security within the banking sector, and stabilize currency markets. VietCapital Bank must only grant credit according to SBV provisions, control its credit growth in line with its ability to raise capital, follow regulations on foreign exchange rates and risk management, and restrict its bad debts. It must also focus its services on the support, high technology, agriculture, and export industries as well as small and medium-sized enterprises (SMEs) and carefully manage credit for real estate investment and business. In the first nine months of this year VietCapital Bank improved its retail banking operations. Its number of individual and business customers has increased 35 per cent since the beginning of the year. Mobilized capital and lending also increased significantly, by about 50 per cent compared to December 2015. Customer deposits totaled VND600 billion ($26.64 billion). Outstanding loans grew at a higher rate than the average, of 22 per cent compared to the end of last year. VietCapital Bank was established in 1992 and was formerly known as the Gia Dinh Commercial Joint Stock Bank. In its 24 years it has confirmed its position in the banking and finance market and has adopted a development strategy for the 2016-2020 period. Under this strategy its Board of Directors has suggested opening 12 to 15 new branches in 2017 and conducting key projects to boost service quality and increase its customer base. Total assets at the end of 2015 stood at VND29 trillion ($1.3 billion), while it had 38 branches as at the end of 2014. Its headquarters are in District 1, Ho Chi Minh City. Hanoi to build commercial service areas and hotels in West Lake Hanoi is planning to build a commercial service area and hotels in the West Lake urban area. The Hanoi People’s Committee has issued a decision adjusting the planning for the urban area, in Thuy Khue ward, Tay Ho district. Part of the area will be changed from land use for authorities to a mixture of commercial services and hotels. The maximum density of construction is 80 per cent, at heights from five to seven floors. The total land area affected is 967.1 sq m, of which 17.4 sq m is for road planning and 949.7 sq meters for construction. The plan aims to create additional land to meet demand for commercial services in Tay Ho district and demand for sightseeing and tourism around West Lake. The People’s Committee assigned the Hanoi Department of Planning and Architecture and the Tay Ho District People’s Committee will coordinate with the Department and the Hanoi Construction Materials Joint Stock Company to officially announce plans for the West Lake urban area and surroundings. In the first nine months of this year Hanoi welcomed an estimated 2.9 million visitors, up 25 per cent against the same period of 2015, according to the Hanoi Department of Culture, Sports and Tourism. Of these, 2.1 million were international visitors, up 26 per cent year-on-year, and 13.5 million were Vietnamese visitors, up 6 per cent. The Hanoi People’s Committee also decided in October to restart the riverside megacity project along the Red River, called Song Hong City, after 22 years on the drawing board. Deputy Chairman of the People’s Committee Nguyen The Hung sent Dispatch No. 9378 asking departments and the Tay Ho and Ba Dinh District People’s Committees to conduct research and propose a plan for the project then report back. The details have not been finalized, Mr. Ta Nam Chien, Manager of the General Planning Department under the Hanoi Department of Planning and Architecture, confirmed with VET. The Department of Planning and Investment had previously proposed the city’s People’s Committee announce the planning criteria to investors. If subsequent planning was inconsistent with the city’s master plan, the Department would introduce other locations to the investor. Song Hong City was originally proposed by a Singaporean investor in 1994, establishing the Tran Song Hong Joint Venture to implement the project, with charter capital of VND61 billion ($2.7 million). Total investment capital at that time was put at VND240 billion ($10.8 million). Twenty five MLM businesses stops operation Twenty five multi-level marketing (MLM) companies have stopped operation since June 2015, including 14 license revoked firms and 11 suspended, reported the Ministry of Industry and Trade. According to the ministry, it has inspected and proposed to investigate 65 violation cases by MLM companies and penalized 64 violators with the total fine of VND11 billion (US$489 billion). In the first half this year, this sector's trading revenue approximated VND4 trillion ($178 million). Of these, foreign companies yielded VND1.8 trillion accounting for 45 percent of the market share and local companies earned VND2.2 trillion holding 55 percent of the market share. MLM companies paid nearly VND712 billion ($32 million) in percentage and other economic benefits for their sales forces and VND452 billion (US$20 million) in taxes. Notably, the number of pyramid sellers reduced 57 percent over the same period last year. Previously, 1.16 million people registered to attend in the activity. Most of MLM companies sell functional food making up 51.2 percent of the total, cosmetics firms account for 31.6 percent and household appliances 12 percent. Network marketing has showed many negative disguises and some cases have faced criminal charge such as Golden Rock, Colony Invest, Diamond Holiday, MB27 and Tam mat troi (solar center)… Eighteen MLM businesses without licenses have been fined VND650 million ($29,000). The ministry said that it would intensify inspection and supervision over referral marketing nationwide next year, propose authorized agencies to supplement some violations in this activity to the Penal Code. Foreign investment continuously increases in HCMC stock exchange The trading volume by foreign investors in HCMC Stock Exchange (Hose) has highly surged for recent months, up 50 percent compared to the same period last year. Their purchase volume accounted for 13 percent of the entire market in the second quarter, hiking to 15 percent to reach VND25 trillion (US$1.11 billion) in the next quarter. Explaining the increase, some foreign investors said that it was thanks to the country’s high gross domestic product (GDP) growth rate reaching 6.4 percent in the third quarter, infrastructure development and economic reform having gradually been on track. Domestic production was on the rise in October and inflation has been curbed at 3 percent this year. Moreover, state owned enterprise (SOE) equitization has supplied more attractive products for foreign investors. Vietnam Securities Depository reported that it grants nearly 1,500 stock trading codes to foreign individuals and organizations on average annually or receives four investors a day. Forum discusses limiting dependence on China in Vietnam’s crocodile export Vietnam’s crocodile export has been largely dependent on China, where is now the market of 99.6 percent of farmed crocodiles from the country, according to reports at a forum hosted by the HCMC Department of Agriculture and Rural Development recently. The event’s attendees including representatives from CITES--a multilateral treaty to protect endangered plants and animals--proposed farms to better connect together by establishing an association to reduce the dependence on Chinese market. In addition, they should improve breeding facilities and the quality of crocodile skin product for export to other markets such as Japan, Thailand, Singapore, Russia, France and Italy. HCMC should work with companies in industrial parks and export processing zones, who have imported crocodile skin to make handbags and wallets, about changing into domestic supply instead of import. Moreover, the city should inform citizens of the nutritional value of crocodile meat to increase consumption of this product in local market. According to QJM, the international journal of medicine of Oxford University, crocodile meat is fit to improve the health of the sick and malnourished children. The reptile’s bone paste has been used for treating innate glass bone disease and osteoarthritis for the elderly. HCMC tightens trading of toxic chemicals The HCMC government has issued a new stricter regulation on production, trading, usage, storage and transport of hazardous chemicals. The new rule forces organizations and individuals involved in trading and production of hazardous chemicals in the city to provide adequate documents on the origin of their products, and purchase chemicals from legitimate entities. They must have sufficient data on the sale and purchase of toxic chemicals, including detailed information on their customers. Hazardous chemicals can only be sold only to organizations and individuals willing to provide full information about users, places and purposes of usage. They will face legal action if they break the rule. Meanwhile, handlers of hazardous chemicals must strictly comply with regulations on transport routes, stops and shipping hours, and such chemicals cannot be transported together with passengers, livestock and other types of goods. District authorities in HCMC will not issue business registration certificates for those producing and trading hazardous chemicals in residential areas. Some fires and explosions in residential areas in the past involved chemical manufacturing and trading facilities. For instance, a deadly explosion caused by chemicals at Dang Huynh Production and Trade Co Ltd in District 12 on October 2014 left three people dead and four others injured. Preliminary statistics show that the city has 640 chemical trading facilities, with some 400 of them selling industrial chemicals, 130 trading health chemicals and the remainder agricultural chemicals. D&D, EESL partner to tap energy efficiency potential in Vietnam, Cambodia Cambodia’s D&D Group and India’s Energy Efficiency Services Limited (EESL) inked a partnership on November 11 to exclusively implement and invest in energy efficiency projects in Vietnam and Cambodia. The agreement was signed in HCMC by Dibyendu Patna, chairman of D&D Group, and SP Garnaik, chief general manager of EESL. EESL is a joint venture of four Public Sector Undertakings (PSUs) of the Indian Ministry of Power (MoP). It was established in 2009 as the implementation arm of MoP and the Bureau of Energy Efficiency (BEE). D&D Group is one of Cambodia’s leading businesses and has been operating in multiple domains, from telecommunication and international banking to F&B, trading, real estate, natural resources, power, IT, agriculture and education, over the last decade and a half. With only 15 years of operation, D&D Group is poised to hold a leading position in all its areas with representative offices in Singapore, Vietnam, Laos and Myanmar. Tenth open-ended equity fund launched in VN Bao Viet Prospect Equity Open-Ended Fund (BVPF), the 10th such fund on the domestic market, was rolled out in Hanoi on Wednesday. Between November 14 and December 16, investors can purchase a minimum of VND1 million worth of fund certificates. Bao Viet Securities Company and Bao Viet Fund Management Co Ltd (Baoviet Fund) are the distributors of BVPF fund certificates while Bank for Investment and Development of Vietnam is the supervising agency. Vietnam Securities Depository is the provider of transfer agent services.   BVPF is the third open-ended fund of Baoviet Fund after Bao Viet Equity Dynamic Open Ended-Fund (BVFED) and Bao Viet Bond Open-Ended Fund. By end-October, BVFED had managed total assets of VND36 trillion (US$1.6 billion), one of the two biggest in Vietnam. Dau Minh Lam, CEO of Baoviet Fund, said BVPF concentrates on listed enterprises on Vietnam’s stock market. The fund will invest in businesses with strong growth potential.    Lam said the launch of BVPF is to meet demand of investors who are looking for new long-term investment vehicles and that many more stocks from various sectors would be launched given robust growth on Vietnam’s equity market. The domestic market had 18 open-ended funds including five bond funds, four balanced funds and nine equity funds. The nine other equity funds on the local market are BVFED (Baoviet Fund), MBVF (MB Capital), VEOF (Vinawealth), VCBF-BCF (VCBF), VFMF4 and VFMVFA (Vinafund), MAFEQI (Manulife Asset Management), SSI-SCA (SSIAM) and TCEF (Techcombank Capital). Food demand unmet by local firms The food processing industry has been on the high growth path but has yet to meet consumer demand, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said at a conference in HCMC on November 17.   She said data showed domestic food consumption last year accounted for 15% of gross domestic product (GDP) and grew 18% while food and beverage production expanded 8.5% and 7.4% respectively. In the next two decades the Vietnamese economy is forecast to expand 5-6% a year, she said, adding consumption, especially of quality processed food, would continue growing at a high pace, so growth potential in the food processing sector is high. The sector can also boost food exports, she noted. “Vietnam’s agro-forestry-fisheries exports last year amounted to US$30.14 billion and are expected to increase to over US$31 billion in 2017.” Vietnamese farm products are present in more than 100 countries and territories, Thoa said.  Le Van Banh, head of the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production at the Ministry of Agriculture and Rural Development, said the country has ample supply of raw food material but exports of processed food remain limited. The ministry, he proposed, will need to restructure the agricultural sector in a way that encourages investment in food processing. Claudio Dordi, technical assistance team leader of EU-MUTRAP project, said data indicated Vietnam’s food processing industry is holding huge growth potential, so it is time to pour more investment capital into it. Unprocessed coffee accounts for up to 99% of total Vietnamese coffee exports, so if shipments of processed coffee are increased, the nation could boost export revenue, he said. HoREA wants land use fee calculation procedure streamlined The HCMC Real Estate Association (HoREA) said administrative procedures for determining land use fees are complicated for enterprises and residents to tackle.   According to a HoREA report, land use fees of a combined VND10.5 trillion had been collected from 80 projects as of November 10. However, another 40 projects have yet to pay nearly VND1.9 trillion in land use fees. The association said land use fee revenues contribute significantly to the State budget but the present procedures affect the collection process and rattle businesses. An exact fee can never be known before an investment decision is made. The complicated fee calculation procedures have made life extremely hard for businesses, thus leading to an “ask-and-favor” mechanism in which enterprises should court officials to get things done fast.    HoREA chairman Le Hoang Chau said to support the property sector to develop, the way land use fees are collected should be changed.   Land use fees should be replaced by land use tax of 10-15%, he said. This would guarantee transparency, eliminate the “ask-and-favor” mechanism and maintain a steady stream of State budget revenue. The association said administrative procedures to determine land use fees should be streamlined and conducted in a transparent manner. The Department of Finance rather than the Department of Natural Resources and Environment of HCMC plays the key role in calculating land use fees for property projects in the city.   The environment department is responsible for selecting consulting companies to decide land prices, carrying out procedures and preparing documents on land price assessment. Land prices will be reported to the city government.      The association stressed that based on the prevailing regulations, the director of the Department of Natural Resources and Environment is not in charge of or responsible for determining land use fees for property projects.   HoREA noted the council for land price assessment does not have an independent entity and experts in land pricing to ensure fairness. The association said enterprises cannot have a voice over land prices, especially when they disagree with the council.   HoREA proposed adding representatives of organizations or experts in land prices to the council. Besides, enterprises should be allowed to attend meetings of the land price assessment council. They also want to participate in the Department of Finance’s meetings on site clearance expenditures which are deducted from land use fees. The association said qualified consultants should be picked to determine land prices rather than those offering low costs. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR