BUSINESS IN BRIEF 17/12 VinaCapital changes Hoi An South resort brand Vietnam-based asset management firm VinaCapital along with its Hong Kong and Macau joint venture partners, have re-branded its long-stalled $4 billion integrated leisure project Hoi An South into HOIANA Integrated Resort in the central Quang Nam province.  “We have already set the timeline to launch the first phase of the project by Quarter 1 of 2019,” a representative from VinaCapital told VET. HOIANA Integrated Casino Resort held the groundbreaking ceremony in late April this year on an area of 985 hectares that spans the Duy Xuyen and Thang Binh districts in central Quang Nam province. The Vietnam-focused asset management company VinaCapital, Hong Kong-based Gold Yield Enterprises Limited and Macau’s Sun City are the investors of the project. The complex has seven phases and is expected to be fully completed by 2035. Construction of the first phase will be implemented on an area of 163 hectares with a capital of $500 million and is expected to be finished by the first quarter of 2019. It will include an 18-hole golf course, which was recently approved by the Prime Minister as part of the government’s golf course development plan. Once operational, HOIANA will be the second largest casino in Vietnam, after the Ho Tram Strip resort and casino complex in the southern province of Ba Ria Vung Tau. It is poised to become “one of Asia’s most renowned resort destinationsa and a new benchmark for high-end tourism in Vietnam,” according to Mr. Don Lam, CEO of VinaCapital. Last year VinaLand Limited, VinaCapital’s London Stock Exchange’s Alternative Investment Market-listed fund, announced plans to become a strategic shareholder (instead of being the project’s largest shareholder) by divesting its stake to Gold Yield Enterprises, a unit of the Chow Tai Fook Group. The first phase of HOIANA will feature a resort and casino complex which will include a 445-room hotel, 200 apartment-suites for sale on a buy-to-let basis operated by Hong Kong’s New World Hotels, a ultra-luxury Rosewood spa resort incorporating 75 guest villas and 25 exclusive residences, and a golf course. The developers also plan further investment for the $4 billion township in the next construction phases, which are due to be completed over the course of 10 to 15 years. Licensed in 2010, the project was initially supposed to be developed by VinaCapital and Genting Malaysia Berhad. It would have been comprised of five-star hotels, villas, and an electronic gaming facility primarily targeting foreign tourists. In September 2012, however, Genting announced its withdrawal in the middle of site clearance, forcing VinaCapital to find another partner. Chow Tai Fook Enterprises Limited, a Hong Kong property and jewelry conglomerate, already has a presence in the country through its New World Development unit in Vietnam with two large hotels in Ho Chi Minh City - the New World and the Renaissance Riverside. The company is run by Hong Kong’s fourth richest person, Cheng Yu Tung. Founded in 2007 and based in the world’s busiest gambling hub of Macau, Sun City is a hotel and entertainment group that also deals in casinos. It provides gaming, travel, dining, media, and amusement services. The company, through its subsidiaries, operates property development, natural resource development, equine trade, film production, food and beverage, luxury products businesses, among others. In a bid to fortify its casino business, Hong Kong billionaire Cheng Yu Tung acquired 70 per cent of Sun City for $948 million. HSC gains 50 per cent in third quarter Ho Chi Minh Stock Company (HSC) announced that the date of closing shareholder list for dividends payout at a rate of five per cent is December 28. The dividends payout date is expected to be on January 12, 2017, according to HSC. There are three major shareholders, Dragon Capital Markets Limited, Ho Chi Minh City Finance and Investment State-owned Company (HFIC), and PXP Vietnam Emerging Equity Fund with capital of 30 per cent, 29 per cent and 7 per cent respectively. Dragon Capital will receive VND 19.6 trillion ($864,947), HFIC VND18.7 trillion ($825,230) and PXP Vietnam Emerging Equity Fund VND4.2 trillion ($185,345) in the first dividend payment. The total money that the three major shareholders will receive is over VND42 trillion ($1.85 million). According to the third quarter financial report of 2016, the revenue of HSC significantly gained 50 per cent, equivalent to VND 219 trillion ($9.66 million). Stockbroker revenue reached VND102.36 trillion ($4.52 million), up 37 per cent; loan interests reached VND92.85 trillion ($4.1 million), up 65 per cent. After-tax- profit of HSC was VND81.8 trillion, up 80 per cent compared to the same period in 2015. Its HCM shares are trading at around VND 25,000 ($1.1) per share at the moment. In the first 9 months of 2016, after-tax- profit of HSC reached over VND228.7 trillion ($10.1 million), up 59 per cent compared to the same period in 2015. HSC had completed 76 per cent of the 2016 plan. In the third quarter financial report of 2016, the total action fee of HSC was VND104.08 trillion ($4.6 million). This figure, in the same period of time in 2015, was VND74.93 trillion ($3.3 million). In the first 9 months of 2016, the total action fee of HSC was VND 237.42 trillion ($10.45 million), which is higher compared to the same period in 2015. HSC was listed on HOSE in May 2009 with the stock code of HCM. It is the best stock company in Vietnam. The main business sector of HSC includes  stockbrokerage and consulting, investment, market analysis and company management under a sustainable development program. HSC also supplies various financial services to customers. Tax incentives provide few benefits   Oxfam tax research reports the world's worst tax havens and how the laws adversely affect developing economies like Vietnam. Despite Vietnam's widespread use of tax incentives, "there is little evidence that incentives have contributed to increased investment or economic growth", the Oxfam tax report remarked. The largest incentives, particularly tax holidays, according to Oxfam, go to large investments in manufacturing and real estate. "These investments would likely have occurred regardless, leading to significant revenue losses without corresponding economic benefits," the report stated. "The complexity of Vietnam’s incentive regulations and the overall lack of information and data make it difficult for both researchers and investors to accurately analyze the costs and effectiveness of tax incentives." Citing specific examples of high-profile tax competition within South-East Asia are also covered in other studies, the Oxfam report took the case of South Korea's Samsung investment in Vietnam as an example. "In 2014, in competition for Samsung’s investment, Indonesia offered a corporate income tax exemption for 10 years, while Vietnam offered 15 years," it noted. A separate report from the Vietnam Chamber of Commerce and Industry (VCCI) also said that the real effectiveness of tax incentives given to foreign-invested enterprises (FIEs) in Vietnam has not yet been made clear. Vietnam has offered FIEs in prioritized sectors a reduced corporate income tax (CIT), lowering the standard rate from 25 per cent to 10-20 per cent for up to 30 years, according to VCCI. In addition, these FIEs can have their land rental fees waived for up to 15 years. At least 62 per cent of FIEs reported receiving investment incentives. But "it is difficult to tell whether the incentives truly lead to more benefits or drawbacks for FIEs and domestic firms,” the VCCI report delivered at Vietnam Business Forum (VBF) on December 5 noted. The Oxfam report also reveals how tax havens are leading a global race to the bottom on corporate tax that is starving countries out of billions of dollars needed to tackle poverty and inequality. Significantly, foreign direct investment (FDI) to Vietnam from tax havens increased 47 per cent compared to last year.    Some tax havens listed on Oxfam’s report include Singapore, the British Virgin Islands, Jersey, Luxembourg, the Cayman Islands and Bermuda. Oxfam warned that if Vietnam continues to accept FDI from tax havens, they would lose a lot of money. The full list of the world’s worst tax havens according to Oxfam, in order of significance is: Bermuda, the Cayman Islands, the Netherlands, Switzerland, Singapore, Ireland, Luxembourg, Curaçao, Hong Kong, Cyprus, Bahamas, Jersey, Barbados, Mauritius and the British Virgin Islands. Oxfam report cited World Bank research in 2015 that stated "tax competition in East Asia and the Pacific is an issue that needs to be addressed in regional forums, rather than being left to individual countries." Otherwise, a race to the bottom could develop, with competing tax breaks leading to the long-term loss of tax revenue with few offsetting benefits. Oxfam researchers compiled the world’s worst list by assessing the extent to which countries employ the most damaging tax policies, such as zero corporate tax rates, the provision of unfair and unproductive tax incentives, and a lack of cooperation with international processes against tax avoidance, including measures to increase financial transparency. Handicraft products exports to US rise in first 10 months Vietnam’s rattan, bamboo and sedge products export value to the United States reached US$212.1 million in the first 10 months of 2016, a year-on-year rise of 1%, according to data from the General Department of Vietnam Customs. Rattan, bamboo and sedge products of Vietnam have been shipped to 19 countries and territories, with the US the biggest importer with US$51.2 million, accounting for 27 percent of Vietnam’s exports of those items, followed by Japan and Germany. Overall, rattan, bamboo and sedge products exports to other countries increased in the first 10 months of the year. Exports of the products to China grew sharply, by 36.49 percent, along with other markets including Taiwan, Spain and Denmark High-tech agricultural production is the need: experts      A conference on building high-tech agriculture in Viet Nam, organised by the Digital Agriculture Association (DAA), will be held in HCM City on Sunday. At the conference, delegates will be hearing about successful experiences in high-tech applications in agriculture and build the value chain through the presentations of businesses, such as Seafood Co., Central Seafood Company, Hung Nhon JSC and Huy Long An-My Binh limited company. These companies are pioneers in the application of advanced technology with production and management by shifting from traditional farming methods to agricultural enterprises to obtain high efficiency in poultry breeding and fruit growing for export purposes. Central Seafood Company, in particular, has met the standard for high-tech business. At present, the company has six shrimps breeding farms equipped with US technology, capable of breeding10-12 billion shrimps per year. The company can sell 1,000 tonnes of shrimp annually. The event will also be an opportunity for the government, ministries and relevant agencies to hear opinions and proposals from businesses to implement timely support policies by working towards a new model of agriculture production. Based on the foundation of high-tech applications in manufacturing and integration of value chain, DAA has proposed high-tech complexes. The complexes will consist of large-scale agricultural production, where businesses will closely work together to achieve production targets with high-yield and high-quality products, which are competitive both in domestic and international markets. Nguyen Thi Lan Huong, vice president and general secretary of DAA Vietnam, said one of the most important tasks in the process of industrialisation and modernisation was to industrialise and modernise rural agriculture. Application of advanced technology should be promoted to meet standards of national and international activities in agricultural production. In addition, promoting people and businesses to create a high-tech agricultural production value chain was aimed at ensuring a healthy and prosperous life for the people and providing safe and clean food. World Bank’s Vietnam Development Report 2016, “Transforming Vietnamese Agriculture: Gaining More from Less,” launched in September, details the challenges and opportunities facing the sector. To remain competitive in the international market, the report said Viet Nam needed to improve supply, quality and food safety with added value. It outlines an agenda of short and longer-term strengthening of public and market institutions which will be needed to achieve the ambitious goals for Viet Nam’s agriculture and overall food system. Ousmane Dione, World Bank country director for Viet Nam, said, “’Business as usual’ is no longer an option for the sector. Growth has slowed down; it is vulnerable to climate hazards and leaves a large environment footprint. Change will help overcome these challenges, ensure the future of agricultural growth and better meet the expectations and aspirations of the people of Viet Nam.” The report offers various policy recommendations to address the challenges. The government can deploy an effective combination of improved regulations, better incentives and streamlined services to stimulate and push for greener agriculture and a more effective food safety and consumer protection system. It can help with policy instruments to better manage agriculture-related risks, as well as create and maintain a favourable enabling environment for agribusiness. In a more flexible, market-driven and knowledge-based agriculture system, reducing direct state involvement will make modernisation of the Vietnamese agro-food system smoother.  Large scale fields developed in northern region Northern provinces have built 895 large scale fields on more than 42,300ha for the Summer-Autumn crop, an increase of about 2,700ha year-on-year, according to the Department of Cultivation under the Ministry of Agriculture and Rural Development. Head of the Department Nguyen Hong Son said that after years of work, localities have gained experience to generate the best results. Along with rice, the model has also been applied for corn and vegetables. Businesses also participated in the production chain in localities such as Thanh Hoa, Thai Binh, Hanoi and Hai Duong, raising the efficiency of cultivation and rice production. The model has enhanced links between farmers and businesses and showed its sustainability. Many cities and provinces have set up Steering Committees and devised policies to support the model, including Thai Binh, Nam Dinh, Nghe An, Ha Tinh and Hanoi. Aside from applying advanced technology and research in agriculture, the provinces have also looked to mechanisation to lower production costs and increase productivity. Vietsovpetro taps 5.04 million tonnes of crude oil this year The Vietnam-Russia joint venture Vietsovpetro expects to tap 5.04 million tonnes of crude oil as targeted this year, heard the 47th meeting of Vietsovpetro’s Council recently held in the southern province of Ba Ria – Vung Tau.  Vietsovpetro has achieved a majority of goals and set a new record of 2,547m/month/machine in commercial drill speed, just above the target, said General Director Tu Thanh Nghia.  For the whole year, the joint venture plans to drill 91,400m, complete the construction of 28 wells and repair 18 drilling wells.  It will also bring ashore more than 1.6 billion cu.m of gas, or 127 percent of the target.  Since it began operation in 1981, Vietsovpetro has tapped over 223 million tonnes of crude oil and supplied more than 30.8 billion cu.m of gas.  At the meeting, participants adopted production and trading plans for next year and tasks for 2017-2021. Gelex initiates plan to take over STG Vietnam Electrical Equipment Joint Stock Corporation (Gelex) has announced its plan to purchase 21.3 million shares of South Logistics Joint Stock Company (Sotrans). The shares are equal to 24.93 per cent of Sotrans’s charter capital. The purchase is due from December 15, 2016 to January 14, 2017. Previously, in its annual general meeting this August, Gelex declared it was expanding its manufacturing operations into the field of logistics business by acquiring stake in Sotran. Besides, Gelex is also expected to further invest VNĐ812 billion into logistics. To implement this investment plan, Gelex is scheduled to release 77.25 million shares at VNĐ18,000 per share to mobilise over VNĐ1.39 trillion and increase charter capital from VNĐ1.55 trillion to VNĐ2.322 trillion. Gelex was originally established in 1995 with initial charter capital of VNĐ177 billion. The company operates in the electrical engineering industry. Its main products are electrical equipment, electrical cables and power metres.  The Nam Hai joins Four Seasons The luxurious resort Nam Hai Hoi An will be part of the Four Seasons family starting on December 20, 2016. Four Seasons Resort The Nam Hai will introduce guests to a unique contemporary experience combining the classic Nam Hai style with the flair of Four Seasons. All 60 hotel villas have been renovated and now feature outdoor showers, terraces, and more expansive indoor and outdoor living spaces. To celebrate this exciting new phase in The Nam Hai’s life, the resort plans to offer complimentary round trip airport transfers, two-rounds of cocktails and tapas at its brand new Beach Bar for villa bookings from January 7 to June 30, 2017. Guests will also get to experience one complimentary Fire Breath & Sound treatment at The Heart of the Earth Spa.  Shining a light on Vietnam’s cultural heartland, Four Seasons Resort The Nam Hai, Hoi An, Vietnam, offers an illuminating connection to three extraordinary UNESCO sites from a private kilometer-long stretch of one of Forbes’ “best beaches in the world.”  Four Seasons Resort The Nam Hai, Hoi An, Vietnam, rests on a tranquil 1-kilometer (half mile) stretch of Ha My Beach, just 11 kilometers (7 miles) north of the UNESCO city of Hoi An in Quang Nam province on Vietnam’s central coast. An ancient trading port, Hoi An had the largest harbor in Southeast Asia in the 1st century. It even opened its own stoneware kilns in the 15th century to support the growing popularity of the Japanese tea ritual. Both Christianity and Buddhism found their way to Vietnam’s shores via Hoi An in the 17th century, and today its eclectic collection of some 87 pagodas, temples and communal houses, and 82 ancient tube-shaped houses – many located on original streets – stand as a testament to its vibrant ancient personality. Since opening in December 2006 The Nam Hai has set the benchmark by which all other resorts in Vietnam are measured. The resort’s first major award came in 2008 when Travel + Leisure’s Design Awards panel dubbed it “World’s Best Resort.” It has also received praise from Condé Nast Traveler, CNN Travel, Luxury Travel, Cigar Aficionado and many other esteemed overseas media outlets. Four Seasons Hotels and Resorts, opened its first hotel in 1961, is a tale of continual innovation, remarkable expansion and a single-minded dedication to the highest of standards. The Canadian-based company has, for nearly 50 years, transformed the hospitality industry by combining friendliness and efficiency with the finest traditions of international hotel keeping. In the process, Four Seasons has redefined luxury for the modern traveler. Khanh Hoa export fetches over one billion USD in fifth consecutive year Export value of the south central province of Khanh Hoa is expected to reach 1.21 billion USD in 2016, an eight-percent increase against last year. This is the fifth consecutive year Khanh Hoa’s export value has surpassed one billion USD. Khanh Hoa’s main export commodities include new vessels, processed seafood, coffee, salanganes, garment and textile, and sand. The province’s import value is estimated at 720 million USD, producing a surplus of nearly 500 million USD. According to the Khanh Hoa statistics office, from 2014-2016, import value was over 700 million USD with machinery, raw seafood, fibre, silk for industrial production being key import goods. In 2017, Khanh Hoa aims to fetch 1.32 billion USD from exports. The shipping industry plans to build eight vessels, four less than in 2015 when the ship-building industry’s export value hit 390 million USD. Vietnam cement export estimated at 15 million tonnes Vietnam’s cement and clinker export volume in 2016 is estimated at about 15 million tonnes, according to the Vietnam National Cement Association. The figure represents a seven percent decrease from 2015. By the end of November, the country exported 13.97 million tonnes, down six percent year-on-year. The country consumed 54.52 million tonnes of cement, up seven percent from 2015. At present, Vietnam has 78 rotary kiln cement production lines with a combined capacity of 86.16 million tonnes.  Ministry announces list of prestigious exporters The Ministry of Industry and Trade has officially announced a list of 310 Vietnamese prestigious exporters for 2015, aimed at supporting local firms in promoting exports and expanding markets. The ministry last week promulgated a decision to approve the list of local prestigious exporters for 2015.  The vote was held in co-ordination with the provincial departments of industry and trade, other ministries, sectors, associations and relevant agencies after publishing the list of exporters on the ministry’s website for selection. The list of exporters was chosen based on the proposals of relevant agencies, along with the ministry’s criteria of maximum export turnover, prestige with foreign partners and duties to the tax and customs sector. Notably, the ministry has given priority in choosing sectors in which the country has encouraged exports as well as those facing difficulties in finding export markets. The ministry’s Import-Export Department said the vote aimed to recognise exporters’ positive contributions to the country’s export growth while giving them support in seeking markets. It also aimed to encourage Vietnamese exporters to further improve their image towards international integration with the world economy. The chosen exporters will be permitted to advertise their products for free on the ministry’s website moit.gov.vn and its newspapers and magazines. They will be given priority in participating in national trade promotion programmes and receive free training courses on e-commerce. The ministry will also directly introduce the list to foreign partners. The exporters were chosen from 22 sectors, including seafood, rice, rubber and coffee, as well as garment and textile. Some of the names on the list are Intimex Group, Viet Phu Thinh Rubber Joint Stock Company, Tan Phong and Nha Be Corporation, as wel as Viet Tien Garment and Textile Company, and B.Braun Vietnam. Cambodia’s rice, dried tobacco to enjoy zero percent import tariff Rice and dried tobacco leaves imported from Cambodia will enjoy a import tariffs of zero percent from January 1 – December 31, 2017.  The decision was made in a circular recently issued by the Ministry of Industry and Trade.  It states that the imported goods must have certificates of origin licensed by the Cambodian Ministry of Commerce or concerned agencies and go through customs clearances at border gates listed in the circular’s Appendix 02. Merchants who import dried tobacco leaves must also have licenses.  The circular will be effective from January 18 – December 31, 2017. Vietjet launches two new international routes Vietjet launched two new international routes -- Hải Phòng-Seoul and HCM City-Kaohsiung -- on Monday. The new routes are expected to meet the increasing travel demand of travellers, aimed at boosting regional trade and integration, the airline said. Flights on the Hải Phòng-Seoul route will operate every Monday, Wednesday, Thursday and Sunday, with a flying time of some five hours per leg. The route’s flight frequency will be increased to daily operations from January 19, 2017 to February 13, 2017. “Conveniently located in northeast Việt Nam as the centre for economic and social growth for the region, Hải Phòng has great potential for tourism development with a series of local specialties and services for international tourists to experience,” Vietjet said, adding that it has so far operated 10,000 flights, carrying nearly two million passengers on the nine routes to and from Hải Phòng. Meanwhile, South Korea is a favourite tourist destination for travellers thanks to a developed entertainment industry, the culture and the shopping malls. With the new route, Vietjet has a total of three services connecting Việt Nam and South Korea, targeted at facilitating travel of individuals at an affordable cost. The second route, HCM City-Kaohsiung, will have five return flights per week on Monday, Tuesday, Thursday, Friday and Sunday. The flight duration is three hours 30 minutes per leg. Vietnam weighs doubling overtime limit following calls from foreign firms The Ministry of Labor, Invalids and Social Affairs has proposed an amendment to the Labor Code that would sharply increase the country's overtime limit. Under the proposal, an employee may work a maximum of 600 extra hours per year, doubling the overtime limit currently imposed on some specific areas, the government portal said in a statement on December 10. Vietnam’s Labor Code stipulates that an employee can work a maximum of 200 extra hours per year. In some specific areas like textiles and garments, leather, aquaculture processing, telecommunications, water and power supplies, overtime is capped at 300 hours per year. The move comes after Prime Minister Nguyen Xuan Phuc asked relevant ministries and agencies to consider adjusting the overtime limit following recommendations from foreign firms. Several Korean and Japanese firms have complained that the current limit in Vietnam is too low, and have suggested the government should double or triple the figure. These thresholds are holding back the development of IT companies as engineers need to work overtime if any technical problems arise, the Japan Business Association in Vietnam said at the annual Vietnam Business Forum last week. Han Dong Hee, chairman of the Korea Business Association, echoed the same opinion, adding that the rule has raised labor costs and delayed production schedules. The maximum number of overtime hours allowed in Vietnam is currently less than other Southeast Asian countries. While Vietnamese workers can’t work for more than 300 extra hours per year, it’s 1,800 hours in Thailand, 1,250 in Malaysia, 860 in Singapore and 540 in Laos. This restriction is taking its toll on both enterprises and their workers. A recent survey conducted by national television broadcaster VTV at the Thang Long Industrial Zone in Hanoi revealed that 97% of manual workers want to work overtime as the money from those extra hours accounts for a third of their monthly incomes. El Nino hits Vietnam's coffee output; exports run out of steam Aging crops, flooding and drought: not the ideal blend for the world’s second largest coffee exporter. Vietnam’s coffee exports are likely to be hit this year due to changes in the weather, with output forecast to fall by 20%. Vietnam’s Association of Coffee and Cacao (Vicofa) said that coffee output will hit 1.3 million tons for the 2016-2017 season (from the start of October 2015 till the end of September 2016) following the worst El Nino in the last 20 years. October is traditionally the start of the coffee harvest, but this year many plantations in the Central Highlands province of Dak Lak, one of the biggest producers in the country, are still in blossom due to the lack of water. According to incomplete statistics from Vicofa, 115,000 hectares (284,000 acres) of coffee, equivalent to nearly a fifth of Vietnam’s total plantations, have been damaged by water shortages. Rain and flooding that hit the Central Highlands in November also made it difficult to harvest and dry the beans. Apart from the weather, farmers have also been cutting down their coffee plants to make room for other industrial crops, and a large area of coffee is entering an "aging" period with reduced output. To increase the value of coffee exports, Vicofa has called on businesses to step into the processing industry rather than focusing on exporting raw materials. The association has set a target of increasing the proportion of processed coffee exports to 30% of the total by 2020 from the current rate of 10%. Data from Vicofa revealed that Vietnam’s coffee exports jumped by 34.8% on-year to 1.75 million tons during the 2015-2016 season. Export value also surged by 17.2% to reach US$3.16 billion. However, this growth has been attributed to a large inventory of around 300,000 tons carried over from the previous season. Can Tho, RoK association cooperate in rice production  Representatives from the Can Tho city People’s Committee and the Korean Food and Rice Association met in the Mekong Delta locality on December 12 to discuss ways to expand cooperation in rice processing and export.  The meeting took place ahead of the inauguration of the association’s representative office in the Vietnam-Korea Incubator Park in the Tra Noc 2 Industrial Park on December 13. According to Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam, Can Tho has become a potential destination for enterprises from the Republic of Korea (RoK) and many firms decided to pour investment into the locality.  Notably, Tae Kwang Industrial Co., Ltd constructed a 171.48 million USD plant to produce semi-finished sport shoes in the Hung Phu 2B Industrial Park in Cai Rang district.  The RoK Government also invested in many big projects in Can Tho like the Vietnam-Korea Incubator Park in the Tra Noc 2 Industrial Park, and a water supply plant in Vinh Thanh district, Nam said.   For his part, Chairman of the Korean Food and Rice Association Kim Nam Doo said the establishment of the association’s representative office in Can Tho is a strategic decision as the city is a food and rice centre in the Mekong Delta region.  The office will serve as a bridge promoting partnership between Vietnamese food firms and member enterprises of the association in the time ahead, he affirmed.  Can Tho boasts 115,000 ha of agricultural land and 90,000 ha of which is for rice cultivation.  Can Tho produces 1.4 million tonnes of rice, with over 1 million tonnes being shipped abroad every year through 26 rice export enterprises. The city’s export turnover to the RoK is estimated to hit 30.3 million USD in 2016, while import value will be 4.2 million USD. PM adopts adjustments to ODA-funded economic restructuring project The Prime Minister has approved adjustments to an investment plan for the project “The Restructuring for a More Competitive Vietnam” using non-refundable official development assistance (ODA) from the Australian Government. Accordingly, the project will focus on studying impacts of economic restructuring on gender equality; examining policy on competitiveness and revising the Law on Competition; supervising the enforcement of the enteprise and investment laws, and the implementation of commitments to the European Union (EU) and the ASEAN Economic Community (AEC).   The implementation of the project will be extended to June 30, 2017. Additional capital for the project will value at 522,000 AUD (around 391,233 USD), including 500,000 AUD (360,000 USD) in non-refundable ODA sourced from the Australian Government, and 490 million VND (21,662 USD) in counterpart capital of the Vietnamese Government.  The Prime Minister asked the Ministry of Planning and Investment to coordinate with the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development to carry out the adjustments in accordance with the project’s targets and regulations on the management and use of ODA capital. No zero-interest loans for Tết      The capital city has followed HCM City in stopping zero-interest loans to enterprises participating in the price stabilisation programme for the Tet (Lunar New Year) season. Despite this, markets in both cities will have sufficient food items in stock, authorities say. Nguyen Duc Chung, Chairman of the Ha Noi People’s Committee, said his administration would facilitate enterprises’ access to bank loans for purchasing goods to stock for the festival season, the Giao thong (Transportation) newspaper reported. This is the most efficient way to ensure enough goods for Tet and will create good conditions for the enterprises to step up their production and business efficiency, Chung said. The report also quoted Le Ngoc Dao, deputy director of HCM City Department of Industry and Trade, as saying that the municipal administration had not been giving out the zero-interest loans since 2013. Instead, the city has encouraged commercial banks to give loans at preferential interest rates so that the enterprises can access funds for production, trading and stocking, ensuring stability in demand and supply, Dao said. This has seen the number of enterprises joining the price stabilisation programme increase every year, he added. Nguyen Ngoc An, deputy director of Vissan, a major food company in HCM City, said that over the past three or four years, his company had not obtained the zero-interest loans from the State budget. The company has joined the price stabilisation programme to get loans at preferential interest rates from commercial banks that are also part of it, he said. After joining the programme, Vissan has restructured its production process to compete in terms of price and quality of goods, An said. So far, ten commercial banks have joined HCM City’s Tet goods price stabilisation programme to provide loans worth VND12 trillion (US$530,750) this year, VND1.1 trillion higher than last year, said Nguyen Hoang Minh, deputy director of the State Bank’s branch in HCM City. The loans carry interest rates of between 4.15 per cent and 6.5 per cent per year. An said Vissan has prepared 3,200 tonnes of processed food and 3,000 tonnes of fresh food for the Tet season. He said demand for food for Tet 2017 will not increase strongly in the HCM City with many people leaving their homes or on tours. Lotte Mart has increased supply by 30-40 per cent for confectionery and beverages and 25 per cent for fashion products; while Coop Mart has said it will cooperate with suppliers to offer discounts of 10-50 per cent on thousands of products. Nguyen Xuan Duong, deputy director of the Ministry of Agriculture and Rural Development’s Livestock Department, said the domestic livestock industry would supply enough food to the local market for the Tet season because of increased output, the Vietnam News Agency reported. According to the General Statistics Office (GSO), output in November increased by 5.5-6 per cent for poultry meat, 6-6.3 per cent for eggs, 1.8 per cent for beef, 10 per cent for milk and 5 per cent for pork year-on-year. Pork prices fell to VND35,000-37,000 per kilo in southern Dong Nai Province, but was more stable in the Cuu Long (Mekong) Delta provinces at between VND38,000-43,000 per kilo. Chicken prices have also been stable in the southern provinces because there has been no sudden spike in demand, a GSO report said.  Deputy PM calls for developing renewable energy Deputy Prime Minister Trinh Dinh Dung has called for the development of renewable energy and the use of energy in a more economical and effective way in order to reduce dependence on foreign energy sources. The Deputy PM made the request at a conference held by the Ministry of Industry and Trade in Hanoi on December 16 to review the five-year implementation of the Law on Using Energy Economically and Effectively. He noted that although the results gained over the past five years were remarkable, they have not met the country’s potential for energy savings. According to the World Bank, Vietnam’s industries have a huge potential for energy savings, from 25% to 40%. He tasked the Ministry of Industry and Trade with reviewing and collecting opinions raised by the delegates at the conference to amend the Law as well as other documents on providing instructions on implementing the Law. He also asked to raise public awareness on the effective and economical use of energy, making it a daily habit for residents. According to the Industry and Trade Ministry’s report, from 2011-2015, the volume of energy savings was equivalent to 5.65% of the total energy consumption during the same period, while the national target for the period was between 5% and 8%. The promulgation of legal documents on effective energy use has helped remove obstacles in the work, supporting private businesses and small and medium-sized enterprises in carrying out their energy-saving activities while facilitating ODA projects on increasing energy savings and reducing greenhouse gas emissions. The ministry’s latest survey also showed that 85% of Vietnamese people are aware of ways to save energy thanks to social media, as well as the benefits of energy-saving products and services. Central city and Gifu Shinkin bank ink MoU on investment      The Da Nang Investment Support and Promotion Board, and Japan’s Gifu Shinkin Bank, signed a Memorandum of Understanding (MoU) on co-operation, investment promotion for small and medium-sized enterprises from Japan in the central Vietnamese coastal city. Gifu Shinkin, the largest bank in Gifu, Japan, has more than 156,000 customers, of which seven are Japanese enterprises in Da Nang. Director of the city’s Investment Support and Promotion Board, Le Canh Duong, said this was the first MoU that the board has signed with a Japanese bank. He said Japan is the biggest investor in Da Nang, with 113 projects worth $397.5 million – 10.78 per cent of the accumulated foreign direct investment (FDI) projects in the city – creating 32,000 jobs. Duong said 84 per cent of Japanese investment is focussed on manufacturing, food processing, construction and information technology, while healthcare, real estate, tourism and education have emerged as new investment fields among Japanese investors in recent years. Bank Chairman Masatoshi Takahashi said many Japanese investors eye Da Nang investments and are eager to explore the investment environment there. Takahashi said a business delegation from Aichi will visit Viet Nam next March, and Da Nang will be a favored stop. Đà Nẵng has smoothed the way for Japanese investors by setting up a Japanese to support investors by explaining administrative procedures, investment licences, policies and other issues. The city has developed an Information Park on 344ha of land in Hoa Vang District and an IT park on 55.6ha nearby, where space has been reserved for IT investors from Japan. The city also plans to build an industrial park for small- and medium-sized businesses from Japan on 134ha. Da Nang will begin construction of the Japan-Viet Nam Culture Centre in Ngu Hanh Son District and launch a new direct flight from Da Nang to Osaka next year. The Route Inn Group from Japan has started construction of a coastal resort, the first of its kind in Viet Nam, with a total investment of $18 million, while the Japanese JP Holdings company plans to invest in a high-quality kindergarten education project in the city from next year, with estimated capital of $5 million. According to the latest reports, Da Nang has attracted 423 foreign investment projects worth $3.68 billion to date. Last year, the board also inked a MoU with KPMG, one of the largest audit, tax and advisory firms in the world, on co-operation, investment promotion and providing service for businesses and investors in Da Nang. The central city greatly improved its administrative reform and Provincial Competitive Index over the past few decades, but poor investment promotion abroad has prevented key investors from approaching the city and central region in recent years. Da Nang port unloads seven-millionth tonne of goods Da Nang port in central Da Nang city on December 15 handled the seven-millionth tonne of goods and the 300,000th container from cargo ship Willi which operates under the flag of Marshall Islands. The cargo from vessel Willi allowed Da Nang port to complete its yearly plan. It is expected to unload 7.25 million tonnes of goods by the yearend, including 320,000 containers, up 13 percent in terms of goods and 24 percent in terms of containers, from 2015. The port is planning the second phase of its Tien Sa Port with a total investment of 1 trillion VND (45 million USD) and is scheduled to complete it in early 2018. Upon completion, the port’s capacity will reach 10 million tonnes a year. Tra fish exports estimated to increase 6.6 percent in 2016 The tra fish sector estimated to rake in 1.67 billion USD from exports this year, an year-on-year increase of 6.6 percent. The figure was announced at a recent conference in the Mekong Delta province of An Giang to review tra fish production and consumption and seek measures for the sector’s sustainable development. Minister of Agriculture and Rural Development Nguyen Xuan Cuong called on tra fish producers to improve their business operation to raise their products’ quality, reduce price to promote export while focusing on exploring the 92-million-people domestic market. According to the Ministry, as of November 2016, the tra fish farming areas reached 4,522 hectares, producing 1,047 million tonnes of tra fish. The figures are estimated at 5,000 ha for a yearly harvest of 1.2 million tonnes by the end of this year, up nine percent over 2015. Vietnam has so far this year shipped tra fish products to 140 markets in the world, up four markets over 2015, earning over 1.46 billion USD. The main markets are the US, the EU, China, ASEAN, Mexico, Brazil, Colombia and Arab Saudi. In 2016, the Mekong Delta has 108 tra fish fry nursing facilities and 1,856 households breeding 16.5 billion fries on 1,500 hectares, up one percent over the 2015, mostly in Dong Thap, An Giang, Can Tho and Vinh Long provinces. According to Nhu Van Can, Director of the Ministry’s Aquaculture Department, the Mekong Delta has 4,785 tra fish farms, over half of which belong to enterprises. The rest are run by households and cooperatives. Domestic enterprises have started paying attention to developing production chains connecting stakeholders in the sector, including fry producers, food suppliers and processors, Can said, adding that however these chains are incomplete. Duong Ngoc Minh, Director General of Hung Vuong Group said the Mekong Delta needs over 30 billion young tra fish each year, however the quality of the young fish is poor, which affects the processing of tra fish for export. He suggested the Ministry invest in key young tra fish breeding localities, apply advanced technology in the process and develop connections between enterprises and farmers. Minister Cuong said tra fish processors and exporters need to work with farmers to develop brand names for Vietnamese tra fish to enhance their competitiveness. Farmers need to follow the strict requirements in the farming area in a sustainable manner, in close link with the production chain or cooperatives and in line with the standards such as VietGap, GlobalGap. The Ministry will instruct relevant bodies to provide supports for stakeholders and improve the role of the Aquaculture Association and the Tra Fish Association in expanding export markets. In 2017, the sector is expected to earn over 1.7 billion USD from exports, up 10 percent from this year. Transport firms prepare for passenger surge over Tet Transport authorities are bracing for their busiest season with the Lunar New Year travel rush just around the corner. Bus and coach operators at Giap Bat Station, which is around 6 kilometers south of downtown Hanoi, said around 1,230 extra journeys per day have been laid on to accommodate increased passenger numbers.  At My Dinh Station, about 10 kilometers west of the city center, an extra 1,600 journeys will be added to the daily schedule. The number of passengers traveling by coach is expected to be 40% higher than usual, the Hanoi Transport Company estimated. Growing demand for air and train travel is also forecast in the first half of February. Phung Thi Ly Ha, an executive at Hanoi Railway Transport, predicted an increase of 40%–50% in passenger numbers to between 800 and 1,000 on each journey. Vietnam Airlines, the country’s biggest carrier, said in the lead up to the traditional holiday the number of daily flights will be 13% higher than usual and a massive 46% more than during last year's festival, with an extra 900 flights to accommodate more than 185,000 passengers. The Lunar New Year is a rare opportunity for millions of migrant workers to return home and see their families. The World Bank estimated that some 7.5 million people moved to cities from rural areas between 2000 and 2010, making Vietnam among the top five countries in East Asia in terms of rapid urbanization. According to the UNFPA, around 13 million people, the equivalent of 14% of Vietnam’s population, have moved to the cities to work in export-manufacturing factories, construction and services. Aggressive aviation growth sparks concern While Vietnam does not appear to be hitting the breaks on its aircraft buying spree, the country’s aviation market is beginning to feel the effects of accelerated growth marred by overloaded airports, crowded airspace, and stressed flight attendants. The Southeast Asian country’s air passenger numbers are estimated to reach 52.2 million this year, a solid 29% jump from 2015, according to the Civil Aviation Authority of Vietnam (CAAV). Local airlines are rising to the occasion by leasing or buying new aircraft to meet the skyrocketing demand, a trend that is expected to continue well into 2017. Vietnamese carriers now have a collective fleet of 147 planes, 14 more than last year, with five additional airplanes scheduled for delivery in the next two weeks. Though the expansion is seen as positive by many in the aviation community, experts are warning of potential infrastructure failures, amongst other problems, at local airports due to rapid fleet expansion. Vietnamese airlines currently use five airports, Noi Bai, Cat Bi, Danang, Cam Ranh and Tan Son Nhat, as ‘bases’ for parking aircraft overnight. Under a development strategy for the aviation sector between 2016 and 2020, VND70 trillion (US$3.13 billion) is earmarked for infrastructure upgrades at these five airports. Following the upgrades, the facilities are expected to collectively provide 254 aprons for overnight parking, 24 of which will be allocated to foreign carriers. This means only 230 aprons will be available for local carriers with an expected combined fleet of 263 planes altogether by 2020. With airport infrastructure lagging behind the rapid growth of air passenger numbers, flight delays and cancelations are something common for air travelers in Vietnam. The flight attendants, it turns out, also suffer from intense pressure brought about by busier schedules which accompany new routes and additional flights launched by airlines to meet rising demands. An air hostess who works for a major airline told Tuoi Tre (Youth) newspaper that she and her coworkers each have 118 days off per year, but few are able to use them due to busy schedules. The carrier recently decided to convert unspent days off into cash allowances, she added on condition of anonymity. Even when flight attendants are allowed to rest between flights, the break is too short to ensure their health, according to the air hostess. “It is stipulated that attendants rest at least 11 hours between two flights, and most of the time we are only able to enjoy that minimum break time, which is not good for our long-term health” she said. Danang suspends 2 steel plants over pollution allegations Danang has asked two steel plants in the city accused of causing pollution to suspend production, after local residents gathered to protest the companies. Dana Y and Dana Uc plants must find solutions to the problem, Ho Ky Minh, vice chairman of Danang People’s Committee, said during a meeting on December 15. Local people had surrounded the steel plants in Hoa Khanh Industrial Park for a few days to demand a change. Ngo Chuoi, 60, a resident, said the two plants discharged untreated wastewater and polluted the air for almost 10 years. He blamed them for causing cancer and damaging crops. “We have suffered quite enough. We want the city to either relocate us or the steel plants,” said Chuoi. The city has promised to look into the case and asked the residents to end their protest. Dana Y and Dana Uc produced about 460,000 tons and 300,000 tons of steel products annually, according to their websites. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR