BUSINESS IN BRIEF 15/2 Vietnam appeals for more support from int’l agriculture fund   Vietnam proposed the International Fund for Agricultural Development (IFAD) continue supporting Vietnam, particularly in rural development, poverty reduction and climate change adaptation. Deputy Minister of Finance Tran Xuan Ha, who led a Vietnamese delegation to attend the 40th session of the IFAD Governing Council in Rome, Italy, on February 14-15, made the remark in an interview with Vietnam News Agency. He said Vietnam also called for IFAD assistance in enhancing the role of women in ensuring nutrition for children, and enabling poor households to access social services such as education and health care. The official noted that the IFAD is helping Vietnam carry out 17 projects worth about 500 million USD in 11 provinces, focusing on disadvantaged mountainous areas. The IFAD has also upgraded its office in Vietnam to serve the country’s demands and other nations in the region as well, he added. He detailed some information about this year’s session, which aims to discuss plans to develop cooperation among the involved parties. Participants proposed diversifying IFAD activities for agricultural and rural development, and strengthening the agency’s financial capacity, he said. Former Prime Minister of Togo Gilbert Fossoun Houngbo was elected the new President for the IFAD, and will take the office on April 1, 2017. He takes over from Nigerian Kanayo F. Nwanze. IFAD, an agency of the United Nations, is headquartered in Rome. The establishment of IFAD was initiated in 1974 and the fund officially opened on November 30, 1977. Since 1978, IFAD has provided around 18.4 billion USD in aid and soft loans for projects in developing countries, helping up to 464 million people escape poverty. Vietnam became an IFAD member in 1997. Greece wants to develop seaport partnership with HCM City Greek businesses are keen to promote cooperation with Vietnam and particularly Ho Chi Minh City in the field of seaport. Greece’s Minister of Foreign Affairs Nikos Kotzias made the remark at a meeting with Chairman of the municipal People’s Committee Nguyen Thanh Phong in the city on February 14. He said Greece is willing to serve as a bridge for Vietnamese enterprises, especially those from HCM City, to make inroads into the European market.  The diplomat suggested the two sides enhance cooperation in cultural exchanges, art and music to strengthen their mutual understanding and solidarity, as well as collaboration in politics, external affairs, and economics. Phong said the trade and investment relations between Greece and HCM City are still modest and below the bilateral cooperation potential.  Therefore, the city hopes Greece will step up cooperative activities in the fields of its strength such as seaport, tourism, culture and art, he recommended. He asserted that the southern metropolis will create the optimal conditions for foreign companies, including Greek ones, to make long-term business in the city. Dutch company plans vegetable seedling centre in Ha Nam A Dutch company is planning to build a high-quality vegetable seedling production and research centre in the Red River Delta province of Ha Nam. During a working session with the local authorities in Ha Nam on February 14, Director for Research of the Bejo Zaden Group, Bert Schrijver, said the group needs about 10-15 hectares to build the centre and asked for the province’s support by ensuring fertile land, good irrigation, and transport convenience for the project. Schrijver said the company will select and cross-breed high-quality varieties in Vietnam and Southeast Asia before putting them into mass production. Local workers will be employed and provided with techniques to create high-quality vegetable seedlings for the agricultural sector, he added. Vice Chairman of the provincial People’s Committee Truong Minh Hien said the project is conformable with the locality’s policy of developing hi-tech agriculture. He recommended two favourable locations for the project, one in Vinh Tru town (Ly Nhan district), and another in Phu Van commune (Phu Ly city). The province will create the best conditions for the company to implement the project, he said. Bejo has been operating for 128 years, specialising in the selection and creation of premium vegetables with over 1,200 varieties. Its network covers over 100 countries worldwide. In Vietnam, the group has two subsidiary companies, namely Bejo Vietnam Co, Ltd., headquartered in Hanoi and Bejo Vietnam Production Co, Ltd. in the Central Highland province of Lam Dong. Agriculture ministry vows to push forward with SOE equitisation The Ministry of Agriculture and Rural Development (MARD) is determined to punish those whose lack of responsibility led to the prolonged equitisation of State-owned enterprises (SOEs), said MARD Deputy Minister Ha Cong Tuan. He urged quicker equitisation of SOEs under the ministry’s management at a meeting in Hanoi on February 14. MARD Minister Nguyen Xuan Cuong said equitisation is an opportunity for SOEs to revitalise but it also poses a lot of challenges. Equitisation must be carried out in line with law and in a transparent fashion so as to prevent losses and protect the State’s interests, he noted, stressing in that process, the head of each agency and SOE must take the leading role. Deputy Minister Tuan reported that from 2011 to 2016, the ministry took strong actions to re-organise, reform and restructure its SOEs, reaping encouraging outcomes. The MARD has equitised 12 corporations and companies directly subordinate to it and three science-technology businesses under the ministry’s institutes and universities. It successfully auctioned the Hanoi Agricultural Produce and Foodstuff Import-Export Co. Ltd and will finish handing over the company to the successful bidder in the first quarter of 2017. It is also working to equitise the Vietnam Rubber Group, the Vietnam General of Agricultural Materials Corporation Ltd, and the Vietnam Southern Food Corporation, he added. However, Tuan admitted that many small firms have encountered difficulties in selling their stakes due to poor performance and modest capital. For example, four subsidiaries of the Vietnam National Coffee Corporation (Vinacafe) failed to sell their stakes although they have registered for share offering for two or three times. After being equitised, while some businesses have operated in a more effective manner, others in which the State still holds a big stake have yet to live up to expectations, he added. Pham Quang Hien, Director of the MARD’s department of enterprise management, said SOEs subject to equitisation should move to attract investors, especially strategic ones with good capacity, to reduce the State ownership at those firms to a level that is low enough to change their governance. It is also necessary to coordinate more closely with consulting firms to precisely assess the value of the businesses to be equitised. Leaders of SOEs or the representatives of State capital who do not seriously or effectively conduct equitisation must also be strictly handled, he said. In 2017, the MARD will assess the value of Vinacafe and the Vietnam Northern Food Corporation to prepare for equitisation. Tra Vinh spends nearly 55 billion VND to support SMEs The Mekong Delta province of Tra Vinh will spend 55 billion VND (2.42 million USD), of which 51 billion VND (2.24 million USD) is funded by the Canadian Government, developing local small- and medium-sized enterprises in 2017. The information was released by the Management Board of the Tra Vinh SME project at a meeting in Tra Vinh on February 14. Deputy Director of the provincial Department of Planning and Investment To Ngoc Binh, who is also Director of the project management board, said the project will earmark 13 billion VND (572,000 USD) to support local firms’ operation. Over 17 billion VND (748,000 USD) will be invested in infrastructure facilities to support the operation of SMEs, and over 9 billion VND (396,000 USD) will be used to enhance management capability of involved staff. Apart from supporting local SMEs’ operation, the project also looks to promote dialogues and exchanges between the public and private sectors, and application of information and communication technology to simplify administrative procedures. In 2016, the project used over 23 billion VND (1 billion USD), of which 1.7 billion (74,800 USD) was sourced from the province’s counter capital. The project started on January 30, 2015. About 200 enterprises and over 194,000 local residents in 22 rural communes have benefited. Agriculture ministry speeds up SOE equitisation The Ministry of Agriculture and Rural Development (MARD) is resloved to accelerate the equitisation of State-owned enterprises (SOEs), said MARD Deputy Minister Ha Cong Tuan at a meeting in Hanoi on February 14. He urged quicker equitisation of SOEs under the ministry’s management, saying equitisation provides an opportunity for SOEs to revitalize but it also poses huge challenges. Equitisation must be carried out in line with law and in a transparent fashion so as to prevent losses and protect the State’s interests, he noted, stressing in that process, the head of each agency and SOE must take the leading role, he said. Deputy Minister Tuan stated that the Ministry has equitised 12 corporations and companies directly subordinate to it and three science-technology businesses under the ministry’s institutes and universities. It successfully auctioned the Hanoi Agricultural Produce and Foodstuff Import-Export Co. Ltd and will finish handing over the company to the successful bidder in the first quarter of 2017. It is also working to equitise the Vietnam Rubber Group, the Vietnam General of Agricultural Materials Corporation Ltd, and the Vietnam Southern Food Corporation, he added. Tuan pointed out that small firms have encountered difficulties in selling their stakes due to poor performance and modest capital. For example, four subsidiaries of the Vietnam National Coffee Corporation (Vinacafe) failed to sell their stakes although they have registered for share offering for two or three times. After being equitised, while some businesses have operated in a more effective manner, others in which the State still holds a big stake have yet to live up to expectations, he added. Pham Quang Hien, Director of the MARD’s department of enterprise management, said SOEs subject to equitisation should move to attract investors, especially strategic ones with good capacity, to reduce the State ownership at those firms to a level that is low enough to change their governance. It is also essential to coordinate more closely with consulting firms to precisely assess the value of the businesses to be equitized. Leaders of SOEs or the representatives of State capital who do not seriously or effectively conduct equitisation must also be strictly handled, he noted. In 2017, the MARD will assess the value of Vinacafe and the Vietnam Northern Food Corporation to make plans for equitisation. Bao Viet Insurance, Bao Viet Tokio Marine prioritises agricultural insurance Bao Viet Insurance and Bao Viet Tokio Marine Insurance have signed an agreement to implement agricultural insurance in Vietnam. This is part of Bao Viet Insurance’s recent activities to expand cooperation with its partners.    The agreement will give guidelines for the implementation of agricultural insurance in terms of survey, product design, distribution channel management, and evaluation and compensation. A representative from Bao Viet Insurance said the company wants to cooperate with foreign insurers like Bao Viet Tokio Marine to fully tap its experience in the field with the aim of providing the best-quality agricultural insurance products. Established in 1996, Baoviet Tokio Marine Insurance Company Limited was the first foreign insurance joint-venture in Vietnam with its current partners being Baoviet Holdings – a leading Finance-Insurance group in Vietnam and Tokio Marine – a leading giant insurance group in Japan.  Baoviet Tokio Marine Insurance Company Limited provides non-life insurance products and services for all international and domestic clients including both organizations and individuals in accordance with Vietnam’s Law. Jetstar to open two new air routes Jetstar Pacific Airlines and Quang Binh provincial People’s Committee have agreed to launch two new air routes: Dong Hoi-Chiang Mai (Thailand) and Dong Hoi-Haiphong at a recent working session. Accordingly, the Dong Hoi-Hai Phong flights will begin on late May twice a week while the Dong Hoi-Chiang Mai flights will start in June. Chairman of Quang Binh provincial People’s Committee Nguyen Huu Hoai pledged to create the best possible conditions for Jetstar Pacific Airlines to facilitate the two new air routes and asked travel agents and relevant agencies to join hands in promoting the flights. He hopes that the new flights will help attract more visitors to the province. Thai visitors now pay special attention to Vietnam tourist sites and Thailand, particularly Chiang Mai is also an attractive destination for many Vietnamese travellers. It will take two hours to travel from Chiang Mai to Quang Binh by air, instead of two days by road as in the past. The new air routes will attract more Thai visitors to Vietnamese northern provinces. Meanwhile, flights between Dong Hoi and Haiphong will make travel from central Vietnam to Haiphong and other northern provinces easier. Metropole Hanoi has new F&B director The Sofitel Legend Metropole Hanoi is elevating its culinary appeal with a new director of F&B and a new member on its pastry team.  As the hotel’s new director of food and beverage, Antoine Huc will oversee operations at the French restaurant Le Beaulieu; Vietnamese restaurant Spices Garden; Italian-inspired restaurant Angelina; and the hotel’s three bars, La Terasse, Bamboo Bar and the recently revamped Le Club. He will also be in charge of all in-room dining in the hotel’s 364 guest rooms and suites in addition to banquets and events. Huc, a native French speaker fluent in English and Italian, moves to Hanoi after more than 10 years of experience in the world’s leading hotels and restaurants. Most recently he was food and beverage director at the Amanyara Resort on the Caribbean island of Turks and Caicos, where he oversaw food and beverage operations of the 38 guest pavilions and 20 multi-bedroom villas. Prior to that he was food and beverage manager at the 114 bungalow, five-star Four Seasons Bora Bora Resort where he managed a multi-cultural team across five outlets. His international career includes stints with such lofty establishments as the Fairmont Le Montreux Palace in Geneva, The Plaza Hotel New York and Viceroy L’Ermitage Beverly Hills. Earlier this year, AccorHotels Group added FRHI Hotels & Resorts and its three luxury hotel brands: Fairmont, Raffles and Swissôtel to its global portfolio which includes Sofitel Legend, So Sofitel, Sofitel and MGallery by Sofitel.     Meanwhile, Marc-Alban Sicard is moving into the pastry kitchen from France. Sicard apprenticed under three Michelin-starred chef Jean-Michel Lorain at La Côte St.-Jacques just outside of Paris and has since honed his craft in many pastry kitchens around the world, most recently at the Balthazar Hotel & Spa Rennes. Sicard will go to work on an array of fresh breads, pastries and cakes from his homeland and his talents will soon become apparent at the hotel’s delicatessen, L’Epicerie du Metropole. Dozen resort investors in Ke Ga insist on compensation Investors of 12 resort projects whose land was taken back by authorities to build a now-defunct port in Ke Ga in Binh Thuan Province have said they will continue calling for local authorities and relevant agencies to pay site clearance compensation. In 2007, Binh Thuan authorities ordered investors in Ke Ga, Ham Thuan Nam District to stop construction on 12 resorts to make room for the Ke Ga port. At the time, The Gioi Xanh resort was the only one in service, Van Tru resort under construction and the rest half-finished. In 2013, the Vietnam National Coal and Mineral Industries Group (Vinacomin) suspended the port project, prompting the owners of the 12 resorts to lodge complaints to Binh Thuan authorities saying they suffered losses of hundreds of billions of dong. Vu Duc Cong, the owner of Van Tru resort, last week told the Daily that he lost more than VND20 billion in the project. When Vinacomin announced to suspend the port project, Cong said he was happy as he would not have to relocate his project but found it impossible to resume the project due to the lack of capital. “In 2014, Binh Thuan met the investors to evaluate losses and promised compensation. I demanded VND21 billion in compensation but have yet to get a penny,” Cong added. Nguyen Truong Vinh, the owner of Doi Phong Lan resort, said although Binh Thuan agreed to compensate VND36.5 billion in mid-2016, they had not delivered on its promise. Similarly, the nearby The Gioi Xanh resort has been in trouble since it was forced to shut down in 2007. Its investor demanded compensation of VND90 billion but the province approved just VND36.8 billion. “We need early compensation so that we can resume work on our projects,” said Nguyen Duc Dang Toan, the investor of The Gioi Xanh resort. Speaking to the Daily, an official of Binh Thuan Province’s Department of Finance said that the provincial government had submitted compensation levels to the Ministry of Industry and Trade for approval. Back to February 2014, Hoang Trung Hai, the then Deputy Prime Minister, told the province to work with Vinacomin to evaluate damage and compensate for the investors. The damage was estimated at VND54 billion by Vinacomin and VND83 billion by Binh Thuan, plus compensation for lost revenues and loan interest from 2007 to 2014. None of the resort investors has received the compensation. HCMC combats tax loss Secretary of the HCMC Party Committee Dinh La Thang yesterday morning said that tax loss fighting required the whole political system to join hands in order to contribute to economic development and create fair environment for businesses.  Speaking at a conference on enhancing the party role of  inspection and supervision in tax loss combat and transfer pricing, he said that the tax loss fighting must start from policies which should be supplemented to facilitate tax management. He instructed party organizations to strengthen inspection and supervision over their party members’ income and expenditure to improve the efficiency of tax loss fighting instead of leaving the whole work for tax and customs agencies. Party committees must speed up propaganda and cadre arrangement to contribute in fighting tax avoidance. Meantime, information technology application should be enhanced in tax collection to make the activity transparent and create advantageous conditions for taxpayers and tackle violations. Secretary Dinh La Thang questioned why 250,000 private business households which is tenfold business number now have contributed to only 2 percent of total tax revenue. Many of them have issued invoices so why they have not upgraded into businesses. He wondered how tax officials have worked to collect tax from these households and tax consultant councils in wards and communes have implemented their roles. The currently manual management has caused overloading condition as a tax official has to manage 500 business households or 160 businesses. Invoice regulations should be reviewed while presumptive taxation should be reconsidered to have a suitable mechanism for business households, he urged. Talking about tax loss combat, head of the HCMC Taxation Department Tran Ngoc Tam said that there were things out of reach of the agency requiring policy improvement. Price transferring is an example, he says. Some nations and territories impose 0 percent corporate tax rate which reaches as high as 20 percent in Vietnam. So it is definite that multinational corporations will transfer their profits to the 0 percent tax nations, he added. Therefore Vietnam has been forced to negotiate on price with foreign investors, this is just like presumptive taxation, he added. Moreover, tax agencies have been unable to supervise businesses over their brand name transfer abroad under the form of cooperation. Many foreign firms have taken in Vietnam outdated technologies but the tax industry alone is unable to tackle this issue because it needs relevant agencies to join hands. According to Mr. Tam, transfer pricing has occurred at not only foreign but also domestic firms. For example, industrial parks offer tax cut or exemption in 3-4 years. So many businesses have affiliated with companies outside the parks and then transferred profit to preferential zones to avoid taxes. The current mechanism has been unable to manage invoices which are the “soul” of value added tax because of cash payment. Many companies have offered invoices for sales publicly on the internet. Regulations just require transactions priced from VND20 million (US$880) and more to make payment through banks. Tax agencies used to suggest placing cash registers for retail firms who pose high threat of tax loss. However there is no legal proof to force them to use these machines, he says. Mr. Tam proposed district People’s Committees to work together to inspect and supervise tax collection and payments in their localities. District party committees need to supervise their cadres and party members. There are problems in import declarations now, in case businesses declares high import prices of materials and machines for their operation, it traditionally aims to increase costs to reduce corporate tax while low price declaration seems to avoid import tariff, according to deputy head of the HCMC Customs Department Nguyen Huu Nghiep. Hence, he proposed connectivity among banks, customs, taxation, planning and investment, industry and trade agencies to supervise businesses from their material purchase to product sale. Most of those working in the financial field claim that policy shortage has raised difficulties for inspection and tax loss fighting.  Deputy chairman of the HCMC People’s Committee Tran Vinh Tuyen asked tax agencies to mobilize and encourage private business households to become businesses. In short term, he urged to put an end to presumptive taxation at three wholesale markets in HCMC.  A mechanism should be built towards little inspection and high efficiency to prevent long lasting inspections from raising difficulties for businesses’ operation especially amid peak trading time. He prompted tax agencies to establish a joint database of businesses to supervise their input and output activities and coordinate with other agencies to connect their databases together. Mr. Tuyen proposed the Vietnam Fatherland Front Committee in HCMC to improve its supervision role to tax consultant councils in wards and communes. All level party committees should notice the control of their cadres and party members to limit negative issues in tax management. HCM City calls on businesses’ participation in seven breakthrough programs Standing deputy secretary of the HCMC Party’s Committee Tat Thanh Cang yesterday proposed HCMC Enterprises Association to promote their bridge role to improve businesses’ competitiveness as well as call on them to positively contribute in seven breakthrough programs of the city. At a meeting on businesses’ performance results in the city, Mr. Cang asked agencies and the association to protect legitimate rights of enterprises, improve their strength, consider them to be the subject of serving and create conditions for them to side with the city in conducting development programs.  In short term, he urged the association and agencies to support businesses to build brand names, increase product quality, reduce cost price and connect together to improve competitiveness and market stabilization.  In addition, they should provide enterprises with assistances in capital, business establishment procedure and market promotion activities; build material zones for support industry and expand regional connectivity, he said.  The agencies and association should work together to establish a material distribution center for garment and textile, mechanics, construction materials, food and pharmaceutical chemistry fields.  Chairman of the association Chu Tien Dung says it now has 65 clubs with 9,000 members. So far the association has implemented six programs to improve human resource quality, provide information and legal assistances and assist firms to integrate, access loans and promote trade.  He proposed the city to boost administrative reform in business and investment, support the association to build and synchronously carry out the set of norms to estimate businesses’ satisfaction to agencies and district people’s committees, and bravely task the association to develop businesses and startups. Qantas, Jetstar Asia expand codeshare services Qantas and Jetstar Asia are expanding their codeshare arrangements in a move to offer passengers including those traveling to and from Vietnam, more flights across the Qantas Group network in Asia. Qantas said its code has been available on an additional 142 services operated by Jetstar Asia, bringing the number of weekly codeshare flights between the two airlines to 349. Customers will be provided with more opportunities to access Frequent Flyer benefits and services across the joint network to some of Asia’s most popular destinations. Besides Qantas’ 44 weekly flights from Australia to Singapore and extensive own and partner network between Australia and Asia, the expanded arrangement between the two carriers also gives customers more options to book itineraries that combine different Asian airports. Benefits of booking the Qantas codeshare flights on Jetstar Asia include through-check to and from Qantas international flights, earning of Qantas Frequent Flyer points, access to Qantas Club Lounge in Singapore for eligible passengers and Qantas International baggage allowance. Qantas codeshare passengers also enjoy a hot meal on flights over 90 minutes and a muffin for shorter flights plus water, tea or coffee. Brokerages: Strong corporate earnings back equity market A number of brokerages said many listed firms have announced positive 2016 financial reports, which will buoy the equity market this week. Nguyen The Minh, head of the capital market analysis division at Saigon Securities Inc, said in Dau tu Chung khoan newspaper that corporate earnings improved significantly and various enterprises saw their revenue and profit rocketing to new highs last year, which could underpin the stock market.  Nguyen Huu Binh, head of the analysis department at Vietnam Investment Securities Company, said the VN-Index has hovered around the 700-point level over the past seven sessions, and ended at an intraday high last Friday amid hectic trading. If a certain sector or a group of large caps makes nice gains this week, the VN-Index will climb to a new high, he said. Last week saw the VN-Index rising 0.49% against the previous week at 703.78 points and the HNX-Index leaping 1.19% at 86.04 points. Liquidity improved on both exchanges as the average matched volume climbed 32% to 133.1 million shares per session on the HCMC bourse, and went up a staggering 81% to 38.1 million shares per session on the Hanoi market. According to vietstock.vn, profit taking pressure weighed on the HCMC exchange last week but strong cash flows helped the market avoid a decline. The VN-Index closed down last Monday due to poor performance of certain heavyweights, but nudged up in the next two sessions, backed by petroleum stocks. A selloff hit many large caps last Thursday and led the index to snap a two-day rising run. Viet Capital Securities Company wrote in a report that the index enjoyed its biggest gain of the week last Friday, advancing half a percent to a nine-year high at 703.78 points. Brewery SAB (up 1%) and real estate developer ROS (up 0.7%) advanced after MSCI announced it had added the two firms to its Frontier Markets Index. GAS and PVD of the petroleum sector moved higher as Brent crude oil prices extended an overnight rally in Asian trade last Friday. Regarding foreigners’ trade, the HCMC exchange saw such investors’ net purchases reaching VND37.9 billion. They picked VNM with VND156.3 billion, NVL with VND57.68 billion, VCB with VND 41.47 billion and SSI with VND30.9 billion. They offloaded VND58 billion of HSG, VND40.3 billion of RAL and VND30.5 billion of PAC. Foreign investors also stayed on the buying side on the Hanoi market and net bought VND6.6 billion of shares. They acquired SHB with VND6 billion, PLC with VND2.8 billion and VGC with VND2.6 billion, while they sold PGS and VND shares worth VND6.1 billion and VND5.5 billion, respectively. South Korea to invest in many sectors in Can Tho South Korean enterprises are seeking more chances to invest in traffic infrastructure, education, health, information technology, high-tech agriculture, and smart city projects in Can Tho City. Professor Lee Beom Jae from Ajou University, head of a Korean business delegation to Can Tho City last week, said at a meeting with leaders of the city on Friday that Korean businesses are keen to sound out opportunities in these sectors in the city. He hoped to connect many projects in Can Tho with Korean enterprises and the two sides would have specific projects by the end of this month. He suggested that Can Tho should open direct flights from the city to Korea as it currently takes Korean enterprises nearly four hours to travel from HCMC to Can Tho. Vo Thanh Thong, chairman of the city, said Can Tho is seeking to open air services to Singapore and Korea after launching air links with Taiwan and Thailand. Besides, if Trung Luong-Can Tho Expressway is completed in 2019, it will help halve the traveling time between HCMC and Can Tho to two hours. Korea-Vietnam Incubator Park (KVIP), which has got funding partly by the Korean government and has been put into operation in the city since last year, and a 200-hectare high-tech industrial park underway near KVIP will help incubate startup ideas to bolster economic cooperation between Can Tho and Korea. By the end of 2016, Korea had nine investment projects with total registered capital of US$247 million in Can Tho. The Korean Rice and Food Association has opened a branch in Vietnam with its office located in KVIP. Lee Kwang In, vice chairman of Donghae Engineering & Consultants, said at the meeting that his company would cooperate with the city in land planning, transport, and logistics related to the smart city project. Nguyen Khanh Tung, director of Can Tho Trade and Investment Promotion Center, also introduced projects in transport infrastructure, education, health, information technology, high-tech agriculture needing a combined US$618 million to Korean enterprises at the meeting. Can Tho targets 5.6 million tourists in 2017 Can Tho City, the social and economic center of the Mekong Delta, aims for 5.6 million visitors this year, with 600,000 of them foreigners, according to the Department of Culture, Sports and Tourism. Le Minh Son, deputy director of the department, said at a tourism conference in the city last week that Can Tho received 5.34 million visitors last year, a year-on-year rise of 14%, and obtained total tourism revenue of VND1.82 trillion (US$80.5 million), up 5%. There were around 258,400 international travelers staying overnight in the city, up 25%, he noted. The city tourism sector expects over 270,000 foreign visitors would stay overnight, and tourism revenues would reach VND2 trillion, he said. The city plans to organize a range of events such as the Southern Traditional Cake Festival and the Asian Beach Volleyball Championship to make it more attractive to tourists. Ninh Kieu, the city’s central district, is working on plans to upgrade transport services to promote MICE (meeting, incentive, convention and exhibition) tours, beautify Ninh Kieu pedestrian bridge, launch a food street, and arranging riverside and walking tours linking Ninh Kieu, Cai Rang and Phong Dien districts. Cai Rang has already finished a project on conservation and development of Cai Rang floating market to make the market a unique tourism product of the Mekong Delta. Le Van Tam, deputy chairman of Can Tho City, told the Daily that the city is also working towards establishing a tourism department by separating the Tourism Development Center from the Department of Culture, Sports and Tourism. Dong Thap explains controversial lotus farming project The Mekong Delta province of Dong Thap has issued a statement giving explanations about a lotus farming project that has drawn public attention in recent times.   The provincial government said its competent agencies have monitored developments, launched investigations and adopted measures to cope with the incident since the end of last year. Earlier, local media reported that Sen Hoang Giang Co Ltd had rented 23 hectares of land from farmers to cultivate lotus plants, which originate in Quang Ninh Province, in Cao Lanh District, Dong Thap Province. According to the statement, the enterprise rented and compensated one hectare of paddy but used only 0.3 hectare to grow lotus on a trial basis. Lotus plants developed well in the initial phase but all of them had withered at the time of investigation.  The provincial Department of Planning and Investment issued an operation license to Sen Hoang Giang Co Ltd on September 1 last year.  The Dong Thap government said the firm’s director Tran Van Hoa sought approval to pilot lotus growing for rootstocks and got permission from the Department of Agriculture and Rural Development. “Sen Hoang Giang’s lotus growing on a trial basis is in line with the prevailing regulations. The Dong Thap government will keep a close eye on and study the origin of the plant species. If the province detects irregularities, sanctions will be imposed on the violator,” the statement said. Regarding the origin of crawfish raised in the lotus pond, the Dong Thap government said the aquaculture division of Cao Lanh District launched an investigation and worked with the director. Hoa admitted raising around three kilograms of crawfish that a friend in Hanoi gave him. The aquaculture division coordinated with the police and locals to destroy 107 crawfish and sprayed pesticides to kill all crawfish in the area between December 6 and 10 last year. Considered as an exotic invasive species in Vietnam, crawfish is banned from import into the country by the Ministry of Agriculture and Rural Development as it can cause serious damage to crops and diseases in shrimp, according to local media. The statement said no new crawfish had been found. The Dong Thap government will continue monitoring and preventing the development of the species in the environment. Regarding the firm’s labor issue, three Chinese laborers using tourism visas worked for the enterprise but left the locality in mid-December last year. Ministry recommends online energy labeling registration The General Department of Energy under the Ministry Industry and Trade has recommended enterprises register energy labeling online to help firms save time and money, and support State governance.  According to Circular 36/2016/TT-BCT effective from February 10 on energy labeling for equipment and devices using energy under management of the ministry, businesses can submit energy labeling documents to the ministry at http://nhannangluong.dvctt.gov.vn or by post. The first way is recommended due to the aforementioned reasons. Procedures for energy labeling registration can be found on the website or provided at the department’s office at 23 Ngo Quyen Street, Hoan Kiem District, Hanoi. The ministry issued Circular 36 in late December last year to replace Circular 07/2012. The new circular enables firms to claim the energy efficiency level and stick energy labels on their products and imported ones but firms have to be responsible for the quality of their products and energy labeling. With the new circular in place, companies are permitted to apply the results of an energy efficiency test to all products made in Vietnam and all imported goods with the same model, the same manufacturer, the same origin and the same technical features. The period of validity of such results is indefinite. The circular also enables independent laboratories and those run by domestic and foreign firms to do such tests. Earlier, only laboratories selected by the ministry could do these tests.  Importers must send papers to prove that laboratories chosen by them meet requirements as well as documents about energy labeling registration to the ministry. Notably, an exemption on energy labeling applies to non-commercial goods; a single product or component used in projects, works and factories; temporarily imported materials and equipment for re-export, transit goods, products of outsourcing firms, products in the national security and defense sectors and those relating to national secret and nuclear radiation. The circular stipulates that management agencies must tighten inspections after companies stick energy labels on products and put them into circulation.      Tra Vinh spends nearly 55 billion VND to support SMEs The Mekong Delta province of Tra Vinh will spend 55 billion VND (2.42 million USD), of which 51 billion VND (2.24 million USD) is funded by the Canadian Government, developing local small- and medium-sized enterprises in 2017. The information was released by the Management Board of the Tra Vinh SME project at a meeting in Tra Vinh on February 14. Deputy Director of the provincial Department of Planning and Investment To Ngoc Binh, who is also Director of the project management board, said the project will earmark 13 billion VND (572,000 USD) to support local firms’ operation. Over 17 billion VND (748,000 USD) will be invested in infrastructure facilities to support the operation of SMEs, and over 9 billion VND (396,000 USD) will be used to enhance management capability of involved staff. Apart from supporting local SMEs’ operation, the project also looks to promote dialogues and exchanges between the public and private sectors, and application of information and communication technology to simplify administrative procedures. In 2016, the project used over 23 billion VND (1 billion USD), of which 1.7 billion (74,800 USD) was sourced from the province’s counter capital. The project started on January 30, 2015. About 200 enterprises and over 194,000 local residents in 22 rural communes have benefited.      Steel production slumps in January Steel production and consumption recorded a slump in January compared to the last month of 2016. Steel output in the month totalled over 1.37 million and 823,000 tonnes of steel products were sold, dropping 12.7 and 45.2 percent compared to the previous month. According to Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA), the reduction is attributable to low demand on the occasion of the seven-day lunar New Year holiday (Tet) and a fairly large amount of stored goods by steel traders before Tet. He predicted that steel consumption would be higher in February. Since 2016, a continuous increase has been seen in the import volume of steel products, despite the fact that the domestic industry is capable of meeting local demands.  The Ministry of Industry and Trade said locally made products are facing a fierce price competition from their Chinese rivals.  The ministry affirmed its commitment to implementing and monitoring temporary trade protection measures to ensure healthy competition.  With 10.8 million tonnes of steel products worth 4.45 billion USD shipped to Vietnam last year, China remained the biggest steel exporter of the country, followed by Japan and the Republic of Korea.  Vegetable exports rise 14 percent in January Vegetable exports in January rose 14 percent year-on-year to reach 230 million USD, reported the General Statistics Office. According to the Vietnam Fruit and Vegetables Association, 2016 was a successful year for the sector as it earned about 2.5 billion USD in exports, growth of 30 percent from 2015, surpassing that of strong agricultural products such as rice, peppercorn and rubber. The sector expects an export turnover of 3 billion USD this year. Good news also came for dragon fruit as it was officially accepted into the Australian market. Experts predict that exports of fruit and vegetables, especially fruit, will surge by three or four times in the near future. However, they also pointed to weaknesses in the sector, including market exploitation, as the volume of fruit and vegetables shipped to demanding markets such as Australia, France and the US remains low. In the first two years of exporting to France, only several tens of tonnes of Vietnamese lychee was sold, while a small amount of mango was shipped to Australia. Meanwhile, Vietnamese fruit and vegetable exports largely depended on China, as about 70 percent of products were shipped to China in 2016, compared to 65 percent in 2015 and 30 percent in 2014. Duong Phuong Thao, deputy head of the Department of Import and Export under the Ministry of Industry and Trade, said that China pledged to create optimal conditions for Vietnamese products in the market.  However, China will tighten import activities and strengthen the fight against smuggling and the supervision of product quality, she said. Thao stressed that to achieve sustainable growth in the sector, quality must be improved, with increasing investment in post-harvest storage and processing and building trademarks to attract more consumers. Vietnamese tuna loses competitive edge in Japan due to high taxes Vietnamese tuna exporters have struggled to compete with Thai and Philippine firms in the Japanese market due to high taxes, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). In a letter sent to the Ministry of Industry and Trade on February 13, VASEP called on the ministry to review taxes applied on Vietnamese tuna products shipped to Japan and put the issue on table with the Japanese side in an effort to bring them to the zero percent tariffs that Thai and Filipino exporters enjoy. According to VASEP, Japan is one of Vietnam’s eight biggest tuna export markets. However, Vietnamese tuna exports to this market have continuously dropped since 2013 due to high taxes. Statistics from Japanese customs showed that tax rates levied on canned yellowfin tuna exported to Japan from Thailand fell from 4.8 percent in 2009 to zero percent in April 2012 according to the Japan-Thailand Economic Partnership Agreement. The rate for the Philippines also decreased to zero percent in April 2013 thanks to the generalised system of preferences, while the rate remains up to 9.6 percent for Vietnam despite the Vietnam – Japan Economic Partnership Agreement became effective in October 2009. The association pointed out that in the ASEAN – Japan comprehensive economic partnership agreement, there is no roadmap for Vietnam to enjoy zero percent taxes like the two above-mentioned countries. According to VASEP, tuna products contribute between 450-550 million USD per year to the country’s total export value. Chan May port expects to welcome 49 cruise ships in 2017 Chan May port in the central province of Thua Thien – Hue expects to receive 49 cruise ships and 113,000 tourists in 2017. Last year, the port welcomed 36 ships with 87,000 visitors on board, an increase of 8,500 compared to 2015. Chan May port is located between the two biggest cities in the central region – Hue and Da Nang. The port also lies on the main sea route linking Singapore, the Philippines, Hong Kong (China) and Vietnam.  It is among 46 seaports in Southeast Asia selected by the Asia Cruise Association as a stopover for cruise ships. After a recent wharf upgrade, the port can now accommodate 30,000 DWT vessels and cruise ships carrying 3,000-4,000 passengers each. According to Nguyen Van Chuong, vice director general of Chan May Port JSC, to facilitate travel in the port area at night, a lighting system is being built on the route connecting the wharf with national highway 1A. Cruise ship arrivals are likely to bring huge revenues to the local tourism sector, however services for big-spending passengers remain limited. Connected tours in the region and with neighbouring regions offer a potential solution to this issue. Recently, tourism departments of Hanoi, Thua Thien – Hue, Da Nang and Quang Nam signed a pact to develop the sector through providing linked tours and facilitating travel companies. Hai Phong pushes tourism development The northern coastal city of Hai Phong aims to develop tourism into a spearhead economic sector, towards becoming a tourism centre of Vietnam by 2030.  The city’s tourism sector will enhance international cooperation and links with other localities to promote green and sustainable tourism, said Deputy Director of the municipal Department of Tourism Le Trung Son.  The department will intensify promotion activities to attract more visitors and call for more investment in the field while considering building a multi-language handbook to introduce cultural identities.  Information related to tourism events will be promoted at the website: www.dulichhaiphong.gov.vn.  The department will actively join tourism events and organise fact-finding tours to other localities to learn from their experience and seek cooperation opportunities.  Attention will also be paid to a project to develop cultural and spiritual tourism products, eco-tourism and maritime tourism, and new products on inter-regional tourism routes: Hanoi-Hai Phong-Quang Ninh; Hai Phong-Hai Duong-Bac Ninh; and Hanoi- Hung Yen-Hai Duong-Hai Phong-Quang Ninh.  Last year, Hai Phong enhanced links with localities in the Red River Delta and in the south with Can Tho and Khanh Hoa. Thanks to direct flights between Hai Phong and foreign countries like Thailand, Japan and the Republic of Korea, Hai Phong became an attractive destination for tourists from northeast Asian countries.  In 2016, the city welcomed six million visitors, including 759,000 foreigners. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR