BUSINESS IN BRIEF 5/11 Nhon Trach 2 plant to produce 1.35 billion kWh of power in Q4 PetroVietnam’s Nhon Trach 2 Power JSC has reported that the firm will produce about 1.35 billion kWh of commercial electricity in the fourth quarter of 2016, raising its output for the year to 5.5 billion kWh.  The company is likely to earn yearly revenue of more than 6.2 trillion VND (280 million USD) and profits of about 1.25 trillion VND (56 million USD) .  The company also revealed that it fulfilled its 2016 target of generating 4.45 billion KWh of power on October 29, 63 days earlier than planned, pushing total power produced by Nhon Trach 2 power plant to 25.8 billion kWh after five years of operation.  In the first nine months of 2016, the plant supplied over 4 billion kWh of electricity for the national power grid, roughly equivalent to the same period last year, earning after-tax profit of 860 billion VND, 124 percent of the same period last year.  Research into collecting and producing liquid carbon from the plant has been completed and submitted to the government for approval.  The Ministry of Industry and Trade has finalised the investment plan for the Nhon Trach 3 and 4 plants as part of efforts to deal with power shortages after 2020, especially in the southern region.  The Nhon Trach 2 combined cycle power plant has a capacity of 750MW with a general productivity of 5.5 billion kWh each year for a revenue of over 6 trillion VND annually. Vietnamese, Belgian firms cooperate in producing high-quality urea The PetroVietnam Ca Mau Fertilizer Company (PVCFC) on November 2 signed a memorandum of understanding (MoU) with Belgium’s Solvay Group - a global firm specialising in chemical solutions, to develop solutions to effectively use urea in agricultural production. Under the MoU, using the Ca Mau Nitrate Plant’s modern technologies, the two sides will produce urea products covered with N Dual protective layers in line with European standards, which helps improve the efficiency of nitrate.  The two firms aim to produce an environmentally friendly product that benefits plants. The signing of the MoU is part of PVCFC’s efforts to realise its product diversification target, contributing to promoting sustainable agriculture development in Vietnam.  PVCFC General Director Bui Minh Tien stressed his company plans to diversify its fertiliser products, especially those produced with advanced technologies.  The partnership is expected to enable the company to accelerate the production of new products, helping Vietnamese farmers improve their incomes, and contributing to environmental protection.  Solvay, through hosting the “Solvay Innovation Day 2016” in Vietnam , hopes to access more business opportunities from Vietnam ’s oil and gas, and chemical industries. Martin Laudenbach, Regional Director for Solvay in Asia Pacific, said as the leading chemical and materials producer in the world, Solvay works to support its customers in realising their innovation and development targets. It also supplies solutions that help save energy and minimise CO2 emissions, he added. Kohler launches Beitou faucet collection in Vietnam Kohler has introduced the Beitou faucet collection in Vietnam, a collection of faucets that strikes a balance between architectural forms and the stunning displays of nature, resulting in a peaceful interplay of invention and appeal that speaks to quiet moments of sanctuary. The calming movement of water lies at the heart of the Beitou faucet. The effortless flow of the design mimics the natural cascade of the water over the length of the spout and into the sink. Seen in this light, the faucet becomes a stage for water delivery whose shape and sound resembles a serene river. “We aim to create a product that reflects in whole the beauty of water in nature,” said Mark Bickerstaffe, director of new product development at Kohler. “Our Shanghai design team thus led our exploration, seeking to place natural experience first.” In Beitou Kohler created a form to celebrate water, placing water first, presented up on a stage of indulgence and experience. Water rises spring-like and flows smooth and through and true in a channel seemingly worn by water, cascading gently into outstretched hands. A cantilevered spout supported on a honed cubic pillar that is designed to recede, creates a simple contemporary form that readily complements many settings. The Beitou wall-mount showerhead includes three water experiences: Cascade, Rain and Laminar, and LED light options of Pale Orange, Warm White and Blue Sky activated by the motion of the water. Established in 1873 in the US, Kohler is one of the oldest and biggest private companies in the US. It is the global leader in kitchen and bath plumbing fixtures, furniture and tile, engines and generators, and golf and resort. AEC to encourage VN competitiveness: official Viet Nam can enjoy increased commercial transactions and exchanges in the ASEAN Economic Community (AEC), Ta Hoang Linh, the deputy director of Viet Nam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT), said on November 2. He was speaking at a conference held in Ha Noi on improving Viet Nam's export competitiveness  in the ASEAN region. "The AEC has paid attention to narrowing the development gap among ASEAN countries. It will also help member countries promote their economic growth, creating jobs and attracting foreign direct investment as well as improving production and competitiveness," said Linh. Linh said last year the AEC was established following 10 years of preparation with a population of more than 600 million. The 10-country community has total annual GDP of some US$2 trillion. AEC is expected to create an economic area with high competitiveness and integration into the world economy. Statistics from the ministry showed that ASEAN had been one Viet Nam's most important trade partners following China. Bilateral trade between Viet Nam and ASEAN rose 13 times from $3.3 billion in 1995 to $42.1 billion in 2015. The average growth rate of Viet Nam's exports to ASEAN was 17.1 per cent per year. The country's export turnover to ASEAN increased by 18 times from $1 billion in 1995 to $18.3 billion in 2015. Do Quoc Hung, deputy director of MoIT's Asia-Pacific Department, said Vietnamese exporters would enjoy increasing trade exchange volume, changing the export structure and improving competitiveness, thus expanding market share. However, Hung said Viet Nam's goods would face fierce competition from ASEAN countries as it would have to open its market for imported products. In addition, Vietnamese exports to the region would see pressures of technical barriers. He said local firms should renew their technologies, improving products' quality and localisation rate to take advantage of opportunities to export to the ASEAN market. The issue of building brand name based on quality and added value should also be given priority. In addition, Vietnamese firms should build their own distribution channels in the export markets while enhancing studies and trade promotion activities to fully exploit the ASEAN market potential.  Indian investors still keen on VN Viet Nam continues to be an attractive investment destination for Indian companies, Sanjay Kirloskar, chairman and managing director of Kirloskar Brothers Limited, told a conference on November 2 in Ha Noi. Indian companies run 132 projects worth US$1.07 billion in Viet Nam, ranking 27th among foreign investors in the country, he said, adding that the majority of Indian investments are in energy, mineral exploration, agro-processing, IT and auto components. India is one of Viet Nam's top 10 trading partners, with two-way trade reaching $5.1 billion in 2015 and $2.9 billion in the past seven months of this year. These figures are encouraging. But, in order to eliminate trade barriers between the two countries there are issues that must be addressed, such as infrastructure, trade facilitation, expansion of the trilateral highway – which currently includes only India, Myanmar, and Thailand, as well as reducing transaction costs, interconnectivity of goods and labour markets, he said. Kirloskar said he believes bilateral economic ties will reach greater heights in the future. Besides implementing two projects in Viet Nam, he hopes to expand his company's investment in the country and introduce advanced technology in pump manufacturing to contribute to reducing flooding and drought in the country's provinces and cities, especially in HCM City and the (Mekong) Delta, Kirloskar said. Naushad Forbes, the Confederation of Indian Industry president, said Indian firms were looking for investment opportunities in Viet Nam, especially in energy, agriculture, finance, oil and gas, healthcare, information technology and education. He called for Vietnamese businesses to seek opportunities in India. Naushad, who also chairs Forbes Marshall, an engineering and energy conservation solutions provider, lauded Viet Nam's investment environment. Hoang Quang Phong, vice chairman of the Viet Nam Chamber of Commerce and Industry,  agreed that the two governments should pay a more attention to accelerating bilateral relations. Despite several obstacles, Phong said he believed that trade and investment ties would further develop with support from the two governments and efforts of the two business communities. Banking sector set for better access to services Deputy Governor of the State Bank of Việt Nam (SBV) Nguyễn Kim Anh has asked the banking sector to enhance efforts to improve access to banking services for the economy. The online conference, which was held yesterday, aims to seek measures to implement the Prime Minister’s Decision 1726/QĐ-TTg, dated September 5, on the project to enhance access to banking services for the economy (project 1726). According to Phạm Xuân Hòe, deputy director of the Banking Strategy Institute, the banking sector still faced a number of hurdles. The burden of providing capital for the economy was mainly on the shoulders of the banking system, which must be shared by the securities and insurance markets, Hòe said. In addition, the ratio of non-credit service charges remained modest and access to banking services for residents and enterprises remained uneven across regions and business scales. The banking sector must expand its network, diversify services, improve quality and ease access, especially for residents and enterprises in remote areas, in line with project 1726, experts said. The project targets that the 70 per cent of the adult population will have bank accounts by 2020 and the banking network will expand so that there are at least 20 bank branches per 100,000 adults and some 15 per cent of branches will be located in the rural areas. By 2020, there will be 30,000 ATMs nationwide (or 40 booths per 100,000 adults) and 300,000 points of sale (POS) (400 POS per 100,000 adults). Notably, under the project, some 50-60 per cent of existing small and medium-sized enterprises could access banking credit. “A number of measures must be implemented in three phases, including increasing services types and qualities, distribution network and the frequency of using services,” Phạm Đức Tuấn, deputy director of Agribank, said. Kim Anh at the conference asked commercial banks to develop detailed plans to successfully implement project 1726. The central bank’s statistics show that the banking sector currently has more than 9,780 branches across the country, nearly 17,000 ATMs and more than 222,800 POSs. More than 60 credit institutions provide internet banking and 35 provide mobile banking services, till date. The number of personal banking accounts soared rapidly to 36.77 million in 2015, 15 times higher than 2004.  Nielsen: Consumer confidence remains steady Vietnam’s consumer confidence index (CCI) was unchanged in the third quarter from the second quarter, at 107, keeping Vietnam as the seventh most optimistic country globally, according to the latest CCI report released by Nielsen on November 2. “Vietnam’s consumer confidence index maintained a high level despite moderate market growth and market volatility,” said Ms. Nguyen Huong Quynh, Managing Director of Nielsen Vietnam. “What we are seeing here is not reflected in the performance of the market but rather the future hopes and sentiments of Vietnamese consumers, reflecting the continued growth of the middle class population and a stable economic outlook from the government. People see challenges but view these as a minor hurdle in a country where, for the most part, the upside will almost certainly continue.” The report also revealed that confidence levels are positive in four out of six Southeast Asian countries and remains firm, with scores above the 100 mark. Consumers in Southeast Asia are also among the most confident across the globe. Vietnamese people remain hopeful despite being concerned about job security. In the third quarter job security (47 per cent) led in key concerns, joined by health (35 per cent) and work/life balance (25 per cent). Parents’ welfare and happiness, at 21 per cent, has emerged as a key concern among Vietnamese consumers, while the economy again appeared on the list, at 18 per cent. While nearly half of respondents believe the country is in a recessionary state (an increase of 1 percentage point compared to last quarter), nearly two in three perceive their state of personal finances to be either good or excellent in the next 12 months (63 per cent, up 2 per cent from previous quarter), and over a half of Vietnamese consumers are also feeling hopeful about local job prospects (57 per cent versus 55 per cent in the last quarter). “In the current context, consumers continue to be upbeat about their future, financial security remains one of their top priorities,” Ms. Quynh said. “Both job security and economic outlook have a direct impact on consumers’ degree of financial security, and hence lead in key concerns.” Southeast Asian consumers are the world’s most avid savers, including Vietnamese. Seven in ten respondents (70 per cent) in the region put their spare cash into savings. The region has the world’s Top 10 most active savers, with Vietnamese being first (78 per cent) followed by Indonesians (77 per cent). The global average is 52 per cent. Along with channeling spare cash into savings, consumers in Vietnam are also eager to spend on big ticket items to increase quality of life. The survey also revealed that, after covering essential living expenses, around two in five Vietnamese consumers are willing to spend on big ticket items such as holidays and vacations (39 per cent), new clothes (36 per cent), out-of-home entertainment (32 per cent), home improvements/decorating (31 per cent), and new technology products (31 per cent). Should economic conditions improve, at least one-third of Vietnamese consumers say they will continue to save on gas and electricity (31 per cent) and minimize out-of-home entertainment (21 per cent). Raw coffee price highest in last three years Currently, the price of raw coffee in the Central Highland provinces has increased to its highest level in the last three years. This was revealed by the Ministry of Agriculture and Rural Development's Agro, Forestry and Fishery Processing and Salt Industry. The price surged by VND1,100-1,300 per kg of raw coffee to VND44,300-44,800, the department said. Meanwhile, free on board (FOB) price for Vietnamese export Robusta coffee at Sai Gon Port also jumped by US$88 per tonne to $2,043. The higher price has boosted enterprises' efforts to sell their coffee. Some 200,000 tonnes of Vietnamese coffee in the 2016-17 crop was sold in markets at home and abroad. The ministry said in the first 10 months of this year, Viet Nam exported 121,000 tonnes of coffee, earning $246 million. The exports had a year-on-year increase of 40.2 per cent in volume and 25.4 per cent in value. Germany and the United States were the two largest export markets for Vietnamese coffee in the first nine months, accounting for 15.2 per cent and 13.2 per cent, respectively, of total exports. During the first nine months, export markets witnessed strong growth in value, including the Philippines (74.3 per cent), Algeria (59.7 per cent), China (56.3 per cent) and the United States (45.3 per cent), as well as Germany (37.4 per cent), Italy (17.9 per cent) and Japan (15.4 per cent), the ministry said.  Dinh's new startup earns $27,339 in 3 days DesignBold, a new startup, has earned US$27,339 within three days of operation, its founder Hung Dinh has said. Dinh, known for his widely used and reputable website JoomlArt.com, said his startup's digital design tool called DesignBold, currently a beta release, allows amateur and professional users to easily design different types of publications. Dinh started by founding JOOM Solutions, which offers open source CMS products and services, including Joomla!, Wordpress, Magento and Drupal, through websites such as JoomlArt.com, DesignWall.com, UberTheme.com, ThemeBrain.com. JoomlArt is the world's largest Joomla company with 500,000 users and customers. The design tool will help this newly established company grow in user volume, develop more innovative solutions for clients and generate more revenue, Dinh said, adding that his aim is to make it the finest design tool available online. DesignBold's data warehouse has more than 60 million stock photos, copyright vectors and 4,000 designs. Dinh said he does not expect DesignBold to earn $50,000 per day like Flappy Bird, a 2013 mobile game developed by Vietnamese artist and programmer Ha Dong through his game development company dotGEARS. DesignBold's target is to win 3,000 orders in the first two weeks, which will generate a revenue of $117,000. The product is priced at $39. DesignBold won the first prize in the Creative Business Cup Vietnam 2016 and represented Việt Nam in the Global Creative Business Cup on which it entered the final round. The event was held in Copenhagen, Denmark, from October 20 to 24.  AirAsia increases flight frequency on Hanoi-Bangkok route Low-cost airline AirAsia has announced an addition of flights on the Hanoi-Bangkok route to two per day to facilitate passengers’ travel from December 9, 2016 to October 2, 2017. The airline has also offered special airfare promotion for Hanoi - Bangkok flights with one-way ticket starting from just VND99,000 (excluding tax and other additional fees). Promotional tickets can be booked from October 31 to November 13 for flights departing from December 9 to October 28, 2017.   Apart from the current flight FD643 departing from Hanoi at 9:15am, passengers from Hanoi can opt for new flight FD645 at 8:50pm with flight time of one hour 55 minutes. Meanwhile, passengers from Bangkok now can select the flight FD644 at 6:35pm at their convenience instead of the existing flight FD642 at 7am. On the occasion, the airline unveiled plans to open new air routes from Hanoi to local destinations in Thailand such as Phukhet, Chiang Mai, Chiang Rai and Hat Yai. Vinamilk reaches 90% of annual plan in 9M The Vietnam Dairy Products Joint Stock Company (Vinamilk) recorded robust growth in the first nine months of this year, as the State Capital Investment Corporation (SCIC) prepares to sell 9 per cent of its stake in the dairy giant this month or next. Deputy CEO of the SCIC Nguyen Hong Hien confirmed with VET on October 27 that “the SCIC will sell 9 per cent of Vinamilk at the end of November or early December.” After-tax profit in the first nine months stood at VND7.5 trillion ($336 million), up 28 per cent year-on-year and equal to 90.5 per cent of the annual plan of $371 million, its consolidated financial statement for the third quarter revealed. From July to September net revenue reached VND12.205 trillion ($546.78 million), up 16 per cent year-on-year, while after-tax profit was VND2.55 trillion ($114.24 million), a 20 per cent increase year-on-year. Net operating profit was therefore VND3.05 trillion ($136.64 million), up 18 per cent year-on-year, with after-tax profit at VND7.53 trillion ($337.34 million), 28 per cent higher year-on-year. Earnings per share (EPS) therefore stands at VND4,697 ($0.21). The profit gained during the third quarter is down to increases in revenue from a change in products, where the focus is on highly effective segments, the third quarter report noted. The proportion of Vinamilk’s investment in securities is relatively small compared to total equity. It has divested its entire holding of more than VND82 billion ($3.67 million) in the ABBank. The group has entered into a share purchase agreement to transfer its holdings in Bao Viet Bank but the transaction is still to be completed and it has only received an advance payment of VND447.82 billion ($20.06 million) from a third party. In the first nine months its net revenue from the domestic market was VND28.69 trillion ($1.285 billion), up 20 per cent year-on-year, and gross profit stood at VND11.74 trillion ($525.95 million), up 25 per cent year-on-year. Vinamilk’s overseas markets generated nearly VND6.3 trillion ($282.24 million) in revenue in the nine-month period, up 7.43 year-on-year but gross profit stood at more than VND3.05 trillion ($136.64 million), up 27 per cent year-on-year. The profit margin in overseas markets was rather high, at 48.5 per cent. In early October Vinamilk launched its e-commerce website Vinamilk eShop, which is expected to expand its sales channels to meet customer demand. In related news, Vinamilk came to a cooperative arrangement with FPT Retail in mid-October to open a retail store chain selling Vinamilk’s products. Vinamilk has begun construction of the Da Lat Organic Dairy Farm in the central highlands’ Lam Dong province, which is expected to open in December and produce high-end products. Overseas, Vinamilk is currently negotiating to buy a US milk firm to increase its operational scale and revenue. CEO Mai Kieu Lien said she hopes to finalize the deal in early 2017 but declined to reveal the partner’s name or the deal’s value, according to Bloomberg. Vinamilk’s products are now sold in nearly 200 stores in 45 cities and provinces in Vietnam and in more than 43 countries around the world, such as Cambodia, Thailand, South Korea, Japan, China, Turkey, Russia, Canada, and the US. The company has also bought a 22.8 per cent stake in Miraka in New Zealand, 70 per cent in Driftwood in the US, and 51 per cent in Angkor Milk in Cambodia, as well as a subsidiary in Poland as a gateway to Europe. In 2017 it plans to begin construction of a new milk powder plant in Vietnam and will expand production at its New Zealand plant, which is operating at full capacity. Bank account users to reach 70 percent adult population by 2020 The rate of people having bank accounts is targeted at 70 percent of Vietnam’s adult pollution by 2020, reported the State Bank of Vietnam (SBV) this morning. The bank made the report at a conference to implement a project on improving the ability of banking service access of the economy in accordance with Decision or project 1276 by the Prime Minister. The project defines targets for the banking system to obtain by 2020. Of the targets, there will be at least 20 branches and transaction offices for every 100,000 adult citizens, 30,000 ATM posts or 40 posts per 100,000 people, 300,000 POS (point of sale) equipment or 400 POS per 100,000 people. About 15 percent of branches and transaction offices will be opened in rural areas, and 50-60 active small and medium enterprises will be access credit sources. According to reports at the conference, the country has so far had 9,787 branches and transaction offices, 16,937 ATM posts and 222,831 spots accepting POS payments. Over 60 credit institutions have launched internet banking service and 35 others provided mobile banking. Last year, the banking system’s total capital topped VND6,000 trillion (US$269.76 billion), accounting for 144 percent Gross Domestic Product (GDP). Outstanding loans reached VND4,660 trillion accounting for 111 percent GDP. Banks issued 99.52 million credit cards with the total credit card transaction value hitting VND230.6 trillion. Personal accounts strongly increased to 36.77 million, 15 times higher than the number in the previous year. Nearly 21 percent adult people in rural areas got bank loans. However, the SBV also pointed out many difficulties and challenges such as the low ratio of credit fee collection, the burden of capital supply for the economy which should be shared by the stock and insurance markets, citizens and businesses’ unequal access of banking services in different areas. German House’s topping-out ceremony in HCMC Deputy Chairman of the Ho Chi Minh City People's Committee Le Van Khoa and Foreign Minister of the Federal Republic of Germany Frank-Walter Steinmeier attended the topping-out ceremony of the German House in Ho Chi Minh City on November 1. The 25-storey building is located at No. 31 Le Duan Street in District 1 along one of the most prestigious city thoroughfares between the two Le Duan and Le Van Huu traffic arteries. The 3,500 m2 construction site was designed by gmp Architects. The building has a gross floor area of about 39,000 m2. Completion of the high-rise building has been scheduled for the summer of 2017. The building is intended to accommodate the German Consulate General with the associated residence, as well as the Goethe Institute amongst others. In addition, there will be offices for the German Chamber of Foreign Trade in Vietnam and for German companies and organizations, as well as a restaurant area with a generous panoramic terrace.  In 2015, the bilateral trade turnover reached US$ 8.92 billion; the trade turnover between the two countries achieved US$1.72 billion. The HCM City’s deputy chairman hoped that the Vietnam-EU Free Trade Agreement (EVFTA) and activities of the German Business Association in Vietnam will help to strengthen the economic cooperation between Vietnam and Germany. Foreign Minister of the Federal Republic of Germany expressed his impression of the development of HCM City and stressed that many German enterprises want to seek investment and cooperation opportunities in Vietnam in general and Ho Chi Minh City in particular. National qualification framework approved The Prime Minister has approved the Vietnam National Qualification Framework on eight levels, including Level 1 - Elementary 1, Level 2 - Elementary 2, Level 3 - Elementary 3, Level 4 - Intermediate, Level 5 - College, Level 6 - Bachelor, Level 7 - Masters and Level 8 - PhD. Specifically, Level 1 mentions the qualification of learners with common and fundamental knowledge, along with basic manipulation skills to perform some repetitive simple tasks of a certain profession in an unchanged working environment, under the supervision of instructors. Level 1 requires a minimum study load of five academic credits, with learners completing the training programme, meeting the output requirements of Level 1 and being granted a certificate of ‘Elementary 1’. Level 2 requires a minimum study load of 15 academic credits, with learners completing the training programme, meeting the output requirements of Level 2 and receiving a certificate of ‘Elementary 2’. Level 3 requires a minimum study load of 25 academic credits, with learners completing the training programme, meeting the output requirements of Level 3 and receiving a certificate of ‘Elementary 3’. Level 4 requires a minimum study volume of 35 academic credits for high school graduates and 50 for secondary school graduates. Learners must complete the training programme, meet the output requirements of Level 4 and be granted with a certificate of ‘Intermediacy’. Level 5 confirms the qualification of learners with extensive practical and theoretical knowledge in a profession of training; basic knowledge of politics, culture, society, law and information technology; and essential skills of perception, occupational practice and communication, in order to deal with complicated issues; work independently or in groups in changing working conditions; take minimum individual and group responsibilities; and supervise and assess those who perform certain tasks. Level 5 requires a minimum study load of 60 academic credits, with learners completing the training programme, meeting the output requirements of Level 5 and being granted a certificate of ‘College’. Level 6 confirms the qualification of learners with solid practical knowledge; comprehensive and intensive theoretical knowledge in a profession of training; basic knowledge of social science, politics and law; perceptual skills relating to critical thinking, analysis and synthesis; skills of occupational practice and communication needed to perform complicated tasks, work independently or in groups in changing working conditions; and take individual and group responsibilities for guiding and disseminating knowledge; and supervise others’ implementation of tasks. Level 6 requires a minimum study load of 120 academic credits, with learners completing the training programme, meeting the output requirements of Level 6 and being granted with a ‘Bachelor’ certificate. Level 7 requires a minimum study load of 60 academic credits for university graduates, with learners completing the training programme, meeting the output requirements of Level 7 and being granted a ‘Masters’ certificate. Those who graduate from a university in a training programme with a minimum of 150 academic credits and meet the output requirements equivalent to Level 7 are recognised with the Level 7-equivalent qualification. Level 8 confirms the qualification of learners with advanced and intensive practical and theoretical knowledge at leading positions in a training faculty; skills to summarise and analyse information and address issues creatively; skills to think and research independently and creatively as well as create new knowledge; skills to disseminate knowledge and establish an international and national cooperation network in management and regulation of professional activities; and creativeness and abilities to give conclusions and scientific recommendations at the expert level. Level 8 requires a minimum study volume of 90 academic credits for those with master’s degrees and 120 credits for those with bachelor’s degrees. Learners must complete the training programme, meet the output requirements of Level 8 and be granted with a certificate of ‘PhD’. Those who have Level 7-equivalent qualification, complete the specialised training programme with a minimum study load of 90 credits and meet the Level 8-equivalent output requirements recognised with Level 8-equivalent qualification.  SCIC pushes forward with SOE divestment strategy The State Capital Investment Corporation once again displayed its determination to divest from state-owned firms, most notably by selling 9% of the dairy giant Vinamilk in December. According to Nguyen Hong Hien, deputy CEO of State Capital Investment Corporation (SCIC), the state investor will finalize all preparations to divest from Vinamilk in late November.  The stake sale is scheduled to take place in December, following a series of roadshows in both Vietnam and overseas. SCIC currently owns 44.7% of Vinamilk. “We’re also working hard to draft the most suitable divestment strategy for 10 other large-sized Vietnamese firms. These companies are major players in different sectors of the economy, thus we want to be cautious to prevent any under-the-table negotiations that hurt the state’s divestment profits,” Hien told VIR. As previously reported, SCIC plans to withdraw from 10 leading state-owned enterprises (SOEs), including Vinamilk, FPT Telecom, Binh Minh Plastics, Bao Minh Insurance and Tien Phong Plastics. Besides these heavyweights, the state investor is also tasked with 100 other divestments by the end of 2016. “Within the first nine months of 2016, SCIC has sold off stakes in 54 firms, reaping 2.3x returns on average. We want our exit from state-controlled entities to trigger a positive impact on these firms’ corporate governance and business performance. However, the road ahead isn’t easy as some of the SOEs have yet to find interested buyers,” Hien said. He added that SCIC is conducting research on “basket share sales,” which means combining stocks of different companies into one major offer. The state investor also plans to carry out the book building method, which pre-determines investors’ interest in a firm and sets the selling price accordingly. Truong Le Quoc Cong, head of the Issuance Regulations Department at the State Securities Commission, voiced his support of the book building method. He noted that companies around the world have adopted book building for a long time, thus SCIC should consider following suit. “Book building is popular with foreign investors and it can help improve the success rates of SCIC’s share sales. That said, this is a new method that requires a large number of underwriters, which can be hard to find in Vietnam. We need a detailed strategy to make this happen,” said Cong. Since 1986, the number of SOEs in Vietnam has plummeted from 12,000 to 718. In the near future, the government intends to narrow down the list of completely state-controlled sectors from 19 to 12, equaling only 190 firms. Five other sectors, including finance and banking, will retain at least 65% state ownership. Hoang Van Thu, deputy head of the Corporate Finance Department at the Ministry of Finance, stressed that the end goal of state divestment should be to encourage global standards of corporate governance at SOEs. This explains why all SOEs need at least one strategic investor, preferably one with substantial expertise in corporate governance. “To attract strategic investors, especially those from overseas, Vietnamese SOEs may need to hire international advisors for valuation and consultancy. We’re working to ensure that the foreign advisors follow both Vietnamese and international regulations when working with domestic SOEs,” said Thu. The officer then offered Vinamilk as an example. The dairy company has enlisted Morgan Stanley Asia, VinaCapital Corporate Finance, and Saigon Securities Incorporation for its upcoming share sale in December. In the next four years, SCIC and other government agencies plan to divest VND15 trillion (US$671 million) from SOEs. All divestments must ensure transparency to avoid illicit transactions that hurt the state’s profits, Thu said.  European home appliances brand Beko enters Vietnam Turkish home appliances brand Beko on October 29 announced its official entrance into the Vietnamese home appliance market with a product launch at Crescent Mall in District 7 of Ho Chi Minh City. At the launch, Beko introduced its product lineup. A brand of Arçelik Group, Beko offers product lines that include major appliances, air conditioners and small appliances. According to Pornchai Trakultechadej, Arçelik Group’s Asia-Pacific marketing and product management director, the company is committed to continuously developing technology to respond to the needs of the new generation, without sacrificing the environment both from the products and manufacturing process.  “Beko has been successful in Europe, as the number one brand in Europe with the fastest growth in the past seven years. For Beko, the smart generation is the greatest source of inspiration in pioneering future solutions. Beko is inspired by people’s ever-changing needs and lifestyles and strives to help make consumers’ lives easier with smart home appliance solutions. Under our global brand message ‘The Official Partner of The Everyday’, we aim to position Beko to be the partner of everyone at every stage of life,” he said. Ho Xuan Loc, general manager of Arçelik Group’s subsidiary Vietbeko said the Vietnamese market is an emerging Asian market and is very interesting and potential to Beko.  “We believe with the outstanding strengths of Beko, our products will be ideal choices for young generation consumers who are tech-savvy and fond of stylishly - designed products in their unique home,” he said.  Beko is one of the most important players in the UK’s home appliances market and also holds top position in the French freestanding and Polish total white goods market. Additionally, Beko has become the fastest growing white goods brand in the German market, the biggest white goods market in Europe, in the last five years with nearly three-fold growth. In Vietnam, Beko would be competing with established players in the white goods market such as Electrolux, South Korean companies Samsung and LG and several Japanese names such as Sanyo, Panasonic, Sharp and Toshiba. Developing coffee zones in Dak Lak province Sustainable coffee production has benefited many farm households in Cu M’gar district, Dak Lak province. More than 30 cooperatives and clubs following a sustainable coffee production model have been set up in the district, which has started to change old production habits, helping farmers access advanced technologies, cut input costs, boost product value and incomes, and contribute to local economic growth. Ngo Van Binh’s family in Quang Phu village, Cu M’gar district, has 1.8 hectares of coffee. In the past, Binh and his family experienced low productivity – about 2.5 tons of coffee beans per hectare.  Since he joined a club to support sustainable coffee production and learned intensive farming techniques, his productivity has increased to 5 tons per hectare. In the dry season, he only needs about 400 liters of water to irrigate a coffee tree instead of the 700 liters he needed in the past. “When I decided to participate in the model, my family received technical instructions. Each year, the price of our product has increased,” Binh explained. A total of 30 cooperatives, cooperative teams, and clubs applying the sustainable coffee production model have been set up in Chư M’Gar district. The teams have been given information about weather and epidemic diseases of coffee trees, and the model has linked farmers, managers, scientists, and enterprises toward sustainable production. Through training, coffee production households have learned to conserve water resources and collaborate with each other in harvesting and processing to turn out products of higher quality. Nguyen Van Phuc, Director of the Ea Kiet Agriculture and Service Cooperative in Cu M’gar, said “Each year three or four training courses are held for members of cooperatives to introduce new science and technologies, and teach them how to increase food safety and occupational safety.” He said even “Specific plans have been made for each month for each production team and communication campaigns have increased public awareness of the model and its importance.” Cu M’gar has more than 35,500 hectares of coffee and nearly 10,000 households producing 37,000 tons of certified coffee meeting standard regulations. The model has helped locals access new technologies; the value of coffee has increased, and the environment has been protected. According to Nguyen Van Minh, Deputy Chairman of Cư M’gar People’s Committee, “The district plans to continue persuading people to join cooperatives or clubs to develop coffee sustainably. We will also instruct communes to establish more agricultural cooperatives involving farmers, managers, scientists, and enterprises to help local farmers access new methods of production and improve the quality of the district’s main crop.” FDI disbursement up 7.6% New and additional FDI capital totaled $17.6 billion in the first ten months of the year, representing 91.3 per cent of the figure in the same period of 2015, according to the latest report from the Ministry of Planning and Investment. As at October 20, 2,061 new projects had been granted investment licenses with total registered capital of $12.2 billion, equal to 98.7 per cent of the figure in the same period last year, while 967 existing projects added $5.35 billion in capital, equal to 77.9 per cent. FDI projects were estimated to have disbursed $12.7 billion, up 7.6 per cent year-on-year. Export turnover in the FDI sector (including crude oil) in the first ten months was $102.7 billion, up 8.1 per cent compared to the same period last year. Excluding crude oil the figure was $100.7 billion, up 9.8 per cent. Import turnover in the FDI sector was $83.2 billion, a 1.9 per cent increase year-on-year. The sector therefore recorded a trade surplus of $19.5 billion including crude oil and $17.5 billion excluding crude oil. Nineteen sectors received investment, in which manufacturing and processing attracted the most, with 842 newly-registered projects and 691 projects adjusting their capital, for a total of $12.84 billion, or 72.9 per cent of all registered capital in the first ten months. Real estate was second, with 46 new projects and total capital of $982.6 million, or 5.5 per cent of the total. Professional activities and science and technology ranked third, with $557.6 million, or 3.7 per cent. Foreign investment came from 65 countries and territories, led by South Korea, with total new and additional capital of $5.62 billion, or 31.9 per cent of the total. Japan followed, with $1.92 billion, or 10.9 per cent, then Singapore, with $1.73 billion, or 9.8 per cent. Fifty-four cities and provinces received investment, led by northern Hai Phong city with 43 new projects and 34 projects adjusting their capital, totaling $2.73 billion, or 15.5 per cent of the total. Hanoi was second with new and additional capital of $2.03 billion, or 11.5 per cent, followed by southern Dong Nai and Binh Duong provinces with total new and additional capital of $1.87 billion and $1.67 billion, respectively. Logistics weakest phase in farm produce export: seminar The logistics sector has been the weakest phase in the export of farm produce such as fruits, catfish, pepper, tuna and tea, according to delegates at a seminar hosted by the Trade Promotion Department under the Ministry of Industry and Trade in HCMC. Export activities in Vietnam as well as local and international trade have been developing, leading to increasing demand of logistics. Businesses should improve their awareness of the service to improve export competitiveness, they said. A synchronous supply chain should be built to bring more efficiency in production and trading as it plays an important role in growth model reform and the economy’s restructuring, they added. The Vietnam Logistics Research and Development Institute has proposed exporters to contact and negotiate with the service’s potential providers to build a transport plan suitable with their financial and production activities. Auto imports into HCMC surge HCMC had seen 14,194 completely built-up (CBU) autos under nine seats worth a combined US$276.3 million imported in the year to October 15, up 34.52% in volume and 47.75% in value against the same period last year, said the city’s Department of Customs. For other types of auto such as trucks, imports into the city rose from 24,168 units in the same period last year to 25,885 units worth a total of US$278.7 million. Auto importers contributed significantly to the city’s VND81.5 trillion (US$3.65 billion) import-export tax revenue in January-October. The city’s full-year target for import-export tax revenue is VND102.5 trillion, meaning the city will have to collect an additional VND10.5 trillion per month in the last two months. Auto imports into the city have grown steadily since last year, bringing high tax revenues for the customs department. Early this year, the department honored 17 enterprises, half of them auto importers, for paying significant taxes. The department has also pledged to create favorable conditions for exporters and importers to do business. This is a solution to attract enterprises to choose HCMC as a gateway to import and export goods as the 2014 Law on Customs allows businesses to select places where they prefer to get customs clearance done. Relocation of capital's universities and hospitals slow The relocation of many hospitals and universities out of Hanoi city centre as part of efforts to ease traffic congestion has remained slow. Hanoi has 96 universities and colleges with 67,000 students, accounting for a third of the country’s tertiary education institutions and 40% of the country's student numbers. Among those, up to 26 universities are located in the four inner-city districts of Hoan Kiem, Ba Dinh, Dong Da and Hai Ba Trung.   Work on the new facility of Vietnam National University, Hanoi, in Hoa Lac area started at the end of 2003 and was scheduled for completion by the end of 2015. But construction has not yet been finished. Mai Hoang Anh, chief office manager of Vietnam National University, Hanoi, said the new campus at Hoa Lac was proceeding slowly due to a lack of finance. There are more than 70 hospitals in Hanoi, with half of these health centres are in the four inner-city districts, with many located in densely-populated areas. In 2011, the prime minister issued the Hanoi Master plan to 2030, in which, the relocation of local universities and hospitals out of the city’s centre was required. It also includes the construction of new branches of some universities and hospitals in the suburban areas. Under the decision, 13 hospitals and 12 universities were identified for relocation. However, to date, only two among the K Hospital and Endocrinology Hospital have finished construction of their second branches. Initially, the second branch of Viet Duc Hospital in Hanoi was expected to become operational by late 2017, but this has been delayed until 2018. To meet the increasing demand for medical check-up and treatment, in 2015, the hospital built another building at Phu Doan Street. The National Lung Hospital has discussed relocation for years, however, the plan has remained on paper due to financial difficulties. Woman dies after childbirth, hospital asked to explain The Ministry of Health has asked Bình Định General Hospital to clarify the cause of death of a woman who was admitted for childbirth and did not survive after a C-section. On October 28, Trương Hồ Thị Lan, 25, a resident of central Bình Định Province’s Quy Nhơn City, was hospitalised at 8.30pm to give birth. As per medical records, Lan was 40 weeks pregnant, and her blood pressure and body temperature were normal. However, at 2am, she had seizures, started drooling, turned purple and her pulse and blood pressure could not be measured. Doctors diagnosed that Lan had amniotic fluid embolism and performed an emergency Caesarean operation. The surgery was completed successfully, but by 3am Lan was in deep coma, and she died four hours later. The newborn baby girl was under treatment in the hospital’s paediatric department. Relatives of the patient refused to take her body home, accusing the doctors of being irresponsible and causing her death. Hồ Việt Mỹ, director of the hospital, said they would re-examine the processes and treatments given to her and determine the cause of death. Initial investigations indicate that she may have died because of amniotic fluid embolism, but the hospital is waiting for autopsy results, he said. According to medical experts, amniotic fluid embolism is a rare obstetric complication, but with mortality rates as high as 80-90 per cent. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR