BUSINESS IN BRIEF 20/12 Coffee export volume forecast to reduce in 2017 Although hitting the record high in 2016, coffee export is forecast to reduce next year because of output reduction, according to Vietnam Coffee and Cocoa Association. 2016 export turnover might near $3.5 billion with over 1.8 million tons, the highest volume for the last many years. The increase has been due to inventory from previous crops when prices dropped low. Next year, the coffee export volume is expected to reduce at least 20 percent over the previous crop to about 1.3 million tons because of droughts and water shortage. Output reduction will be worse as farmers have sold out their inventory. Meanwhile coffee plants have been aging while farmers have cultivated other plants such as pepper and cocoa in coffee fields, causing low coffee output in the Central Highlands. Long lasting rains have affected the quality of coffee beans this year. Export turnover to reach $178 billion in 2016   Vietnam is likely to post the export turnover of US$178 billion and import turnover of $176 billion this year, reported Export Import Agency under the Ministry of Industry and Trade. Among export farm produce, coffee and pepper have seen stable growth while vegetables and fruits enjoyed strong increase with this year’s forecast turnover of $2 billion. However rice saw a reduction with the export volume of only 4.54 million tons equivalent to $2 billion in the first 11 months this year, down 25 percent in volume and 20 percent in value over the same period last year. Experts have expressed concern about unsustainable export activity because its item structure has much depended on foreign direct investment sector. Agricultural firms have been exporting raw materials instead of processed products while garment and textile and electronic businesses have mainly done outwork with low value. 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.  HCM City guarantees loans worth VNĐ360 billion for SMEs      The HCM City Credit Guarantee Fund provided guarantees to eight projects of small- and medium-sized enterprises (SMEs) in 2016 so they could get loans worth a total of VND360 billion (US$16.07 million). The total investment of these eight projects is VND813 billion. More than 200 SMEs received support from the HCM City Credit Guarantee Fund this year, which includes financial consultancy. Credit guarantee for SMEs to procure bank loans was not as efficient as expected because of the requirement to mortgage assets, which SMEs found difficult to meet. However, the situation is expected to improve as policies are to be amended and loans sanctioned based on the evaluation of a project’s efficiency rather than the mortgage of assets. There are more than 120,000 SMEs in HCM City, which account for 96 per cent of the total number of firms in the city. Since it was formed in 2007, the HCM City Credit Guarantee Fund has provided loan guarantees to 121 SMEs, helping them procure loans worth VND871 billion. Statistics with the Finance Ministry show that there are 27 credit guarantee funds nation-wide with total charter capital of nearly VND1.5 trillion. The outstanding loans that they have guaranteed total VND361 billion. At a conference on December 13, Deputy Prime Minister Vuong Dinh Hue has urged that a mechanism be put in place to improve the efficiency of credit guarantee funds so they can better support SMEs, in line with Government Resolution 35 about developing businesses. KVFTA impact: imports from South Korea up      South Korean exports to Viet Nam has increased by 11.8 per cent year-on-year as of October, according to the Korea Trade Promotion Corporation (KOTRA). In a report released on December 19, KOTRA attributed the increase to the Viet Nam - Korea Free Trade Agreement (KVFTA), noting that it happened at a time when global trade has been sluggish. This rise in Vietnamese imports from Korea is also very encouraging in the context of a 2.2-per-cent increase in overall import increase for Viet Nam during the same period, the KOTRA report said. From January to October 2016, exports of household goods from South Korea to Viet Nam increased strongly by 14.2 per cent, especially in washing machines, on which a 5-per-cent tax was cut in accordance with the KVFTA. The report also cited a survey as finding up to 42 per cent out of 60 South Korean respondent exporters had reported an increase in trade with Viet Nam after the implementation of the KVFTA, and 63 per cent expected to have the same results in 2017.  Gov’t to offer preferential treatment to farmers involved in high-tech agriculture      The Government has pledged to offer preferential policies on land, financing and technology to farmers and localities engaged in high-tech agriculture. Prime Minister Nguyen Xuan Phuc, speaking at a conference held in HCM City on Sunday, said the five biggest commercial banks “must create the best conditions to serve farmers, organisations and localities wanting to develop high-tech agriculture”. The conference was held to discuss ways to develop a modern, safe agricultural sector in Viet Nam. "Building a hygienic and safe agriculture is a must in Viet Nam. I hope the enthusiastic participation of farmers and enterprises in high-tech agriculture will open a new chapter for agricultural development in Viet Nam, firstly providing safe food for local residents, and then exports," Phuc said. He pointed out that only 4,000 enterprises out of 600,000 companies invest in agriculture. “The mission of the Government in the coming time is to have enterprises in rural areas develop agricultural production,” he added. To support high-tech agriculture, Phuc said the Ministry of Trade “must consider technical barriers in order to stop cheap imported food, promote trade promotion and engineering and automation for reducing agricultural machinery; encourage super market to consume hygienic and safe food”. The Government will submit a proposal to the National Assembly to consider laws that would allow enterprises to own large tracts of land for high-tech agricultural production, he added. The Government is also considering a new land fund to take back land and support compensation. “The Ministry of Health must also increase food safety inspection,” he said. “The Ministry of Natural Resources and Environment should review all land policies to promote high-tech agriculture. The State Bank of Viet Nam should issue a credit policy for high-tech agricultural investment and establish funds for high-tech agriculture.” Seventy per cent of the population works as farmers but agricultural production contributes only 20 per cent to GDP. In developed nations, only 2 – 4 per cent of the population work as farmers but they contribute up to 40 per cent of GDP. “If the Government and the National Assembly can consider using large tracts of land, it will be good, because we can’t produce much on small plots of land,” said farmer Vo Quan Huy from the southern province of Long An, who exports millions of dollars of bananas and other agricultural products. The law only allows individuals or households to own from two to 30 hectares of land each for agricultural production. Farmers and enterprises have complained that they have not been able to mortgage their land at banks, and thus have had difficulties seeking bank loans. Truong Gia Binh, chairman of FPT, suggested the Government conduct research on building agricultural industrial parks. “Policies for agricultural development are limited, while open policies in land, credit, technologies are very important,” he said. The State Bank of Việt Nam (SBV) has said that from mid-November, the Agriculture and Rural Development Bank began preparing VND50 trillion (US$2.3 billion) to serve individuals, households, collectives and enterprises who produce hygienic, safe food at a preferential interest rate. “SBV has actively encouraged high-tech agriculture since 2014 by developing supply chain models,” Dao Minh Tu, deputy governor, said. Thirty-one projects in high-tech agriculture have joined supply chains in 22 provinces and cities with total loans of VND3 trillion ($130 million). “Under the programme, enterprises have already received preferential interest rates and better conditions for loans,” he added.  PV Trans exceeds annual business targets      PV Trans has witnessed the highest growth in production and business results over 14 years of building and developing the corporation, converting an enterprise facing several difficulties into a success business, PV Trans general director Pham Viet Anh has said. The transportation market this year faced many difficulties in business, but the corporation overcame the difficulties to achieve its business goals. According to PV Trans’s latest report, PetroVietnam Transportation Corporation (PV Trans), listed on Ha Noi Stock Exchange (HNX), estimated its total revenue reached VND6.08 trillion (US$267.8 million) for this whole year, or 122 per cent of its yearly plan, and post-tax profit of VND460 billion, or 164 per cent of its yearly plan. The corporation expects to pay VND300 billion to the State budget, or 158 per cent of the yearly plan. The PV Trans general director, said the parent company and all its subsidiaries have had stable, efficient and profitable operation. PV Trans, the parent company, in particular, exceeded its business targets for 2016. The parent company is estimated to have earned total revenue of nearly VND2.5 trillion, or 124 per cent of its yearly target, and post-tax profit of VND340 billion, or 167 per cent of the yearly plan. It paid VND170 billion for the State budget, or 162 per cent of the yearly plan, he said. At present, PV Trans is considered the largest fleet transporting liquid cargo in Viet Nam and one of top 50 best enterprises in Viet Nam for 2015. It is also one of the 500 largest enterprises in Viet Nam in 2016. It is a sea transportation business with the largest market capitalisation on HNX. Further, it also carries out large transactions with domestic and foreign investors and investment funds.  340 EZs and IPs operational in Vietnam Up to the end of November 2016, Vietnam has had 324 industrial zones spanning 91,800 ha of natural land and 16 economic zones with the total ground and water surface areas of 815 ha, according to the Ministry of Planning and Investment. Of the figure, 220 IPs have entered operations while the construction of 104 others is underway. 36 IPs and non-tariff areas out of 16 IZs have been established. There have been 6,947 foreign invested projects totally capitalized at US$110.2 billion in IZs through the nation, US$66.8 billion of the figure has been disbursed. Additionally, roughly 6,464 domestic projects with total registered capital of US$30.67 billion and US$15.3 billion disbursed capital have been operational in IZs. Aomori apples go on sale in Hanoi Aomori Prefecture, on the very northern tip of Japan’s main island is best known for apples— and now they have gone on sale in Hanoi and other parts of Vietnam, report company officials. In the future, the officials envision store shelves in Vietnam lined with a variety of products from Aomori such as apple juice, apple jam and apple pies. Maybe even an apple dressing, apple soy sauce or apple ketchup. In Japan the Aomori apples sell out as soon as they hit the shelves, said officials at the launch ceremony, adding they are hoping for just as great a response from shoppers at the Intimex, BigC and Unimart supermarkets in Hanoi. Of course, apples are not the only specialty that Aomori is proud of the said Dinh Tien Thanh, CEO of Intimex at the December 19 launch for the apples. The prefecture is a major exporter of marine products such as scallops, squid and sea urchin. They also ship large amounts of dried seaweed and stockfish, he added, noting that it may take a while to negotiate these other deals as it took two years to close the deal with Aomori for the two most popular types of Aomori apples, Fuji and Kinsei. VN cement export estimated at 15 million tonnes Vietnam’s cement and clinker export in 2016 is estimated at some 15 million tonnes worth 556 million USD. It’s down 7 percent from last year due to fierce competition with cheap products of other producers. According to the Vietnam National Cement Association, by the end of November, the country exported 13.97 million tonnes, down 6 percent year-on-year. The association said domestic cement export has been sliding since 2015 as the Vietnamese product has to compete fiercely against products from China, India and Pakistan. Rising export costs have also caused Vietnamese cement to be less competitive in the global market, the association said. To boost cement exports, the Ministry of Industry and Trade has asked its Trade Promotion Agency to better cooperate with other relevant agencies. Following the export decline and insignificant increase in sales of cement in the domestic market this year, industry insiders are concerned it will be hard for the cement industry to meet the target of selling 75-77 million tonnes of cement this year. In the domestic market, 54.52 million tonnes of cement were sold by the end of November, up 7 percent year-on-year. Vietnam currently has 78 rotary kiln cement production lines with a combined capacity of 86.16 million tonnes. The country is currently ranked the world’s fifth largest cement exporter; however, the country’s export volume is, in fact, much lower than Thailand’s. Thai cement is more competitive than Vietnam as it has many traditional customers, besides advantages in transport and superior quality. Vietnam is also finding it difficult to compete against China as its cement factories, whose design capacity exceeds the demand of some 670 million tonnes -- equal to roughly eight times Vietnam’s total cement design capacity -- which is why they often sell their products at low prices. FTA boosts RoK exports to Vietnam The Republic of Korea’s exports to Vietnam have increased sharply this year thanks to the enforcement of a free trade agreement between the two countries which was ratified late last year. According to a report by the Korea Trade-Investment Promotion Agency (KOTRA), the RoK’s exports to Vietnam in the first 10 months of 2016 rose 11.8 percent year-on-year. Especially, the RoK’s consumer goods exports surged 14.2 percent in the same period with the shipment of washing machines soaring by 102.1 percent, as a 5-percent tariff was removed under the FTA. KOTRA cited a recent survey showing that 42 percent of 60 questioned Korean exporters said that their exports to Vietnam increased after the Vietnam-RoK FTA took effect and 63 percent expected that the deal will help them expand business activities in 2017. Vietnamese, Japanese contractors forge cooperation The Vietnam Association of Construction Contractors (VACC) and the Overseas Construction Association of Japan, Inc. (OCAJI) have sealed a Memorandum of Understanding (MoU) on bilateral cooperation. The MoU, signed in Hanoi on December 16, is hoped to open up huge opportunities for Vietnamese contractors, especially large-scale ones. Lao dong (Labour) newspaper quoted President of the VACC Nguyen Quoc Hiep as saying that the VACC will connect Japanese contractors with Vietnamese partners for projects in Vietnam and other ASEAN countries like Cambodia and Malaysia. The VACC will also assist its members in seeking partners for developing and implementation of projects, he said. According to Hiep, the first working session between Japan’s Teisi Group and a Vietnamese construction company is scheduled to take place on December 23 to commence the implementation of this cooperation minute. The VCAA will propose some relevant policies to the Government and the Ministry of Construction to address debts in capital construction and increase capability for domestic constructors. The association now has more than 700 member businesses. System air conditioner market booming in VN The strengthening of the property market with housing and other construction mushrooming all over the country has sharply pushed up the demand for system air conditioners. A report released in the middle of this year by the Japan Refrigeration and Air Conditioning Industry Association (JRAIA) about demand for air-conditioners in major countries around the world said in Viet Nam it was rising sharply for room air conditioners as well as system air conditioners. The surge is clear from the volume of packaged air conditioners sold in recent years. In 2010, 32,000 packaged air conditioners were sold. The figure almost doubled by 2015 when 61,000 units were sold. Kim Cheol Gi, President of Samsung Vina Electronics Co. Ltd, said: “Fifty percent of air conditioners sold globally are system air conditioners. The total value of the segment is worth 74 billion USD. Vietnam is a very promising market for this segment, which has seen many advanced technologies come in recently.” According to Samsung Vina, growth in the system air conditioner market is now 20 percent. Traders and builders attribute the high demand for system air conditioners to their affordable cost, advanced technologies and environment friendliness. They say it is a global trend that system air conditioners are preferred for buildings, offices, hotels, malls, hospitals, and luxury apartment buildings. They are the best choice for large spaces because they can cool such spaces without the need for putting up many air conditioners on the walls, they explain. According to a spokesperson for a website that distributes air conditioners, a system air conditioner can be installed anywhere — on a wall or on the ceiling. It is not expensive to install and maintain, and is the most economic solution for large constructions, especially buildings and houses with large space in a floor. Nguyen Quoc Thong, deputy chairman of Vietnam Association of Architects, said besides their high capacity, system air conditioners also came in attractive designs and helped save space. “They are a good solution and sure to be widely used in Viet Nam,” he said. Seeing the potential of the Vietnamese market, many companies have introduced new products with advanced technologies. A consultant from dieuhoabonmua.vn, a website selling air conditioners, said companies like Samsung and Daikin are taking advantage of the demand to introduce many new models. In the middle of last month Samsung Vina, for instance, introduced 360 Cassette, DVM-S 30HP and DVM ECO 14HP. The three have been hailed for having airflow control technology, booster fan, super inverter, slit fin, and wavy fin and have various designs that suit all architecture styles. Vietnamese, Japanese contractors forge cooperation The Vietnam Association of Construction Contractors (VACC) and the Overseas Construction Association of Japan, Inc. (OCAJI) have sealed a Memorandum of Understanding (MoU) on bilateral cooperation. The MoU, signed in Hanoi on December 16, is hoped to open up huge opportunities for Vietnamese contractors, especially large-scale ones. Lao dong (Labour) newspaper quoted President of the VACC Nguyen Quoc Hiep as saying that the VACC will connect Japanese contractors with Vietnamese partners for projects in Vietnam and other ASEAN countries like Cambodia and Malaysia. The VACC will also assist its members in seeking partners for developing and implementation of projects, he said. According to Hiep, the first working session between Japan’s Teisi Group and a Vietnamese construction company is scheduled to take place on December 23 to commence the implementation of this cooperation minute. The VCAA will propose some relevant policies to the Government and the Ministry of Construction to address debts in capital construction and increase capability for domestic constructors. The association now has more than 700 member businesses. Outstanding farm products, firms honoured Thirty-nine agricultural products and 40 outstanding companies were honoured at a programme displaying high quality agricultural products by the Vietnam General Council of Agriculture and Rural Development. The programme was launched on July 15 in 63 provinces and cities, with hundreds of agricultural products being nominated.  After five months of selection, the organising committee, in co-ordination with local agencies and agricultural experts, selected 39 high-quality products and 40 outstanding businesses focused on building new-style rural areas in 2016. Speaking at the awards ceremony on December 16, head of the council, Ho Xuan Hung, said that these are individuals and organisations which have made significant contributions to raising the values of products and also promoting sustainable development of these products. “We believe that this programme will contribute to enhancing the brand value of agricultural products, in general, and especially of agricultural products from Vietnam in the international market," Hung emphasised. Further, the ceremony was a forum for individuals, organisations, and enterprises to exchange and introduce new products and technologies to the community. The ceremony is also an opportunity to encourage and recognize businessmen and entrepreneurs who are actively supporting farmers in improving productivity, quality, as well as effective product consumption with high value, he added. The event is seen as a bridge connecting the products of farmers, the State, scientists and enterprises with consumers, and promoting the comprehensive development and modernistion of Vietnamese agriculture.  Speaking at the meeting, Deputy Prime Minister Vuong Dinh Hue emphasised that building new-style rural areas is a strategic policy of the Party and State. The Party and State will continue to mobilise their resources to develop rural areas, while creating favourable conditions for businesses to invest in socio-economic infrastructure and production in disadvantaged areas, as well as to improve the competitiveness of Vietnam’s agricultural products and promote agricultural restructuring and the construction of new-style rural areas, he noted. Additionally, the head of Lam Son Sugar Joint Stock Company said that co-operation between enterprises and farmers, and between enterprises and scientists, should be encouraged to seek solutions to current difficulties in the agricultural sector, including capital, scientific and technological knowledge, production and markets. Participants also said that many products and trademarks have been strongly developed and are familiar to Vietnamese consumers, though fewer agricultural products are available in international markets. To overcome this problem, improving the quality of agricultural products should receive attention, in a bid to increase exports to international markets, they said. PM asks Saigon New Port to fulfill economic, defence tasks Prime Minister Nguyen Xuan Phuc on December 19 visited Saigon New Port, one of the strong economic unit of the Vietnam People’s Navy, asking the company to fulfil its both economic and defence missions. Praising the achievements the company has made over the past time, the Prime Minister said Saigon New Port needs to work harder to build itself into a leading defence economic unit in Vietnam. The corporation should expand production and focus on approved strategic positions while continuing to reorganize its affiliates, he said. The PM urged the company to focus on raising labour productivity, ensuring stable income for workers and improving competitiveness.  The Saigon New Port Corporation, a 100 percent State-owned enterprise, operates under the ‘one member limited liability company’ model and focuses on ports, logistics and sea transport The company has a market capitalisation of over 30 trillion VND (1.35 billion USD). It has grown 21 percent per year on average.  In 2016, the company expects to earn 17,263 billion VND (775 million USD) in revenue and 1,952 billion VND (88 million USD) in profit. The company possesses 17 ports capable of accommodating up to 200,000 DWT. Its container port services account for 50 percent of market share in Vietnam 89 percent in HCM City. Saigon New Port is named in the top 20 logistics companies in Vietnam with sea transport services making up 25 percent of the domestic market share. Hanoi, HCM City on world investment market list Hanoi and HCM City have been listed among the top emerging market cities in the world that are attractive for foreign direct investment (FDI).  According to FDI’s Global Cities of the Future 2016/17, HCM City and Hanoi are at the 10th and 17th positions, respectively, among the 25 most FDI-friendly emerging market cities across the world, voted by the Financial Times. Mainland Chinese cities dominate the list, with Shanghai and Beijing at the top spots and Tianjin, Guangzhou and Shenzhen at fourth, fifth and seventh positions. In the Southeast Asian region, Thailand’s Bangkok ranks at ninth position on the list. Singapore has retained its title of FDI’s Global City of the Future in the top 25 markets, with London holding strong in second place and Dublin edging out Hong Kong to claim the third spot. According to the ASEAN Investment Report 2016, four countries -- Cambodia, Laos, Myanmar and Vietnam (CLMV) -- witnessed the highest surge in FDI attraction in Southeast Asia, with the growth rate of 38 percent last year. Total FDI inflows into the four countries in 2015 increased from 12.6 billion USD to 17.4 billion USD. The FDI portion of the countries rose from 10 percent in 2014 to 14 percent in 2015. Vietnam took the lead in the CLMV bloc, attracting FDI worth 11.8 billion USD in 2015, a surge of 28 percent from the previous year. Figures from the General Statistics Office showed FDI commitment in Vietnam was 14.3 billion USD in the January-November period, representing a year-on-year decline of 10.5 percent. However, FDI disbursement saw an increase of 8.3 percent to 14.3 billion USD in the period. Actual FDI in Vietnam is expected to reach a record high of 15 billion USD in 2016, after rising 17.4 percent to 14.5 billion USD last year, Prime Minister Nguyen Xuan Phuc said at the recent Vietnam Development Forum, an annual dialogue between the Vietnamese Government and donors. Bac Giang makes breakthrough in investment attraction The northern province of Bac Giang has so far attracted 1,113 investment projects with a total registered capital of nearly 5.9 billion USD, including 259 foreign-invested projects with over 3.5 billion USD.  The value of investment capital poured into the locality in 2016 was much higher than those from previous years.  As of December 10, the locality lured 172 projects with a total registered capital of over 12.3 trillion VND (541.2 million USD).  The investment value of domestic projects in 2016 doubled that of the previous year and was 7.9 times higher than 2013.  With the newly-registered foreign direct investment (FDI) capital upping 4.6 times year-on-year, Bac Giang was listed among top ten leading localities in FDI attraction nationwide.  Key projects in the period included a waste-to-power plant capitalizing at 4.75 trillion VND (209 million USD), and an international logistics centre in Bac Giang city, with a total registered capitals of 4.2 trillion VND (nearly 1.85 million USD).  Additionally, an industrial park (IP) infrastructure project valued at 1.93 trillion VND (84.9 million USD) and the West Yen Tu spiritual an ecological tourism site worth 1.48 trillion VND (65.12 million USD) were also a few to name.  The fruitful results were attributed to incentives offered by the local authorities and their efforts to improve the investment climate.  Director of the provincial Department of Planning and Investment Trinh Huu Thang said the locality will continue outlining specific measures in order to attract more investment in 2017, towards creating breakthroughs in its socio-economic development.  Accordingly, meetings and dialogues with enterprises will be maintained quarterly, thus swiftly supporting and addressing difficulties facing them during their investment and business in the locality. The locality will also focus on calling for further investments in building infrastructure facilities in a number of IPs and industrial clusters, Thang noted. PM urges endeavours to turn Vietnam into agricultural powerhouse Prime Minister Nguyen Xuan Phuc reiterated the ambition to develop the country into one of the world’s agricultural powerhouses during a conference held in Ho Chi Minh City on December 18.  The event was organised by the Digital Agriculture Association (DAA) – a voluntary social professional organisation established in September 2016 under the watch of the Central Committee of the Vietnam Young Entrepreneurs’ Association.  It attracted leaders of 20 agriculture-strong localities and more than 500 business owners, managers and scientists.  In his speech, the PM noted that with agriculture being one of Vietnam’s comparative advantages, the country must aim to become a high-tech agriculture hub in the global value chain.  He stressed that the Party and State have define industrialisation and modernisation of rural areas and agriculture is a task of top significance.  PM Phuc supported the DAA’s proposal to develop high-tech agricultural complexes and vowed all possible support for the project.  According to him, only 4,000 out of 600,000 firms nationwide currently engage in agriculture. In order to facilitate agricultural businesses, he suggested improving the operation of cooperatives and shifting operating models of 3.5 million business households, particularly those in rural areas to improve their competitiveness.  Responding to requests on credit for organic agriculture, the government leader promptly instructed the State Bank to consider a 50 – 60 trillion VND (2.17 – 2.6 billion USD) preferential credit package designed specifically for organic farming.  He also gave nod to suggestions to build technical barriers that protect domestic goods and prevent massive food produce import.  The PM instructed ministries and agencies to work on revising regulations on land use to facilitate large-scale farming, as well as to perfect the master plan on the use of land for agricultural production.   The government is considering the opening of a pilot land bank and the land use market, along with several farming insurance funds in support of farmers, he revealed.  At the event, DAA Vietnam Chairman Truong Gia Binh introduced a smart stamp technology to track food origin and quality. Other successful experiences in high-tech application and value chain building were also shared by DAA’s members.  A number of prominent firms operating in mechanical engineering, real estate and information technology expressed their interest in agriculture, including in rice growing.  Participants shared the view that cooperatives and enterprises are the nucleus in the development of agricultural economic zones and value chain. An Giang lures domestic, foreign investments Since the outset of 2016, the Mekong Delta province of An Giang has attracted 63 domestic and foreign investment projects worth 14.67 trillion VND (678.7 million USD). The projects mainly focus on agriculture, real estate, industry, trade-service, sports, healthcare and tourism. As many as 25 projects are being carried out with a total disbursement capital of 2.14 trillion VND (94.07 million USD) while 12 others worth 739 billion VND (32.48 million USD) have been put into operation. In 2016, the locality granted new investment license to one foreign-invested project and allowed two others to increase their registered capital by 16 million USD. By the end of this year, the province is expected to have 37 valid foreign direct investment projects capitalized at 219.75 million USD. Authorities have set up a department to support and remove any difficulties for businesses. LDG Group holding on to Grand World Phu Quoc CEO of the LDG Group, Mr. Nguyen Cao Cuong, has confirmed with VET that the company is the only developer of the Grand World project and it does not intend to sell the project to another developer as some media reports said. “Other developers have shared their plans with us on co-investing in the project, as they believe it has great potential,” he said. “But we don’t intend to cooperate with another partner at this stage.” Mr. Cuong’s comments follow reports that LDG was keen to find partners with finance for the project. If a developer wished to buy out the project at a higher value than the initial investment capital, according to the reports, LDG would be willing to sell.   Grand World is on 85 ha on Long Beach on Phu Quoc Island and is managed by Thailand’s Absolute Hotel Services Group (AHS). Under construction since August 2014, the project has total investment capital of VND4.6 trillion ($206.3 million) and includes 447 ocean view villas, villas under the forest canopy, and villas with gardens. There are also 104 bungalows with views, while the hotel is of five-star standard and has 496 rooms on seven floors. Other facilities include a shopping mall, an entertainment area, multi-functional conference rooms, restaurants, swimming pools, and a modern spa and gym. LDG plans to build 178 villas in the first phase and borrow VND1.76 trillion ($78.9 million) from the VietinBank Kien Giang branch, including VND700 billion ($31.4 million) in a mid- to long-term loan and VND1 trillion ($44.8 million) in a guaranteed loan. The company plans to earn VND555 billion ($24.88 million) in revenue in 2016, up 15.6 per cent against 2015, and VND154 billion ($6.9 million) in after-tax profit, up 10 per cent. 2015 revenue was VND520 billion ($23.3 million), up 483 per cent compared to 2014, while after-tax profit was VND162.5 billion ($72.8 million), up 333 per cent. The group is also the developer of other large-scale projects such as Grand World Da Nang, the Giang Dien Waterfall Eco-tourism Area in Dong Nai province, and the Mo Springs Eco-resort Park and urban areas in the south of the country. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR