BUSINESS IN BRIEF 29/4 Viglacera to form joint venture with Cuba        The Viet Nam Glass and Ceramics for Construction Corporation (Viglacera)’s annual shareholder meeting on Tuesday highlighted the company’s business plan to implement investment activities in Cuba. The company plans to set up a joint venture in ceramic and porcelain tiles with chartered capital of nearly US$40 million and total investment of some $61.8 million. In the first phase, Viglacera will contribute capital by providing technical services, spare parts replacement and cash to renovate two factories to serve Cuban market demand and export and invest in new production lines of sanitary ware and floor tiles. In the field of tourism and hotels, Viglacera is also co-operating with domestic partners to attract capital to establish a company, expected to have charter capital of some $3 million, to cooperate with Cuban partners. In addition, the corporation plans to set up a company in Cuba to implement real estate projects, initially to invest and upgrade two hotels owned by two groups in Cuba, at the same time seeking new investment projects. Viglacera also plans to invest in industrial park infrastructure, with a 168ha project in Cuba’s Mariel Special Economic Zone. Last December, Viglacera entered into a joint venture partnership with Cuban giant developer Geicon to manufacture building material in the Caribbean island nation, of which, Viglacera was responsible for upgrading two existing ceramics and sanitary ware plants and investing in two more, four years after the joint venture is operational.  PNJ to issue more than 9.8 million individual shares      Phu Nhuan Jewelry Joint Stock Company will issue more than 9.8 million individual shares raising its total charter capital to VND1.081 trillion (US$47.4 million). The funds will be used to expand its retail distribution network and add working capital to its new shops. Speaking at its annual shareholders meeting in HCM City on April 27, Cao Thi Ngoc Dung, PNJ’s chairwoman and general director, said the company had set a target to achieve VND10.2 trillion in net revenue and VND751 billion in net profit, a year-on-year increase of 19 per cent and 37 per cent, respectively. To realise the targets, besides adding high-ranking staff, PNJ will develop its core sectors and maximise its distribution system, especially in markets of high potential, in order to increase the number of its shops to 300 in 2018 from 220 in 2016. It also plans to improve the application of information technology to its production and trading activities. PNJ reported revenues of VND8.72 trillion last year, a 12 per cent increase over 2015, with jewellery retail sales going up by 26 per cent. Its pre-tax profit was VND608 billion last year, a 220 per cent rise year-on-year. Nguyen Thi Cuc, PNJ’s deputy general director, attributed the company’s success to its focus on investing in modern production technologies, human resource development, effective financial management activities, and professional marketing. Cuc said with 70 per cent of the country’s 90 million people being of working age and per capita gold jewellery consumption remaining low, compared to other countries in the region, Viet Nam offers great potential for jewellery traders, including PNJ. The shareholders have approved a 18 per cent cash dividend for 2016. With its revenue and pre-tax profit increasing by 34 per cent and 105 per cent, respectively, in the first quarter of the year, Dung believes the company will reach its targets for the year.  VIB shareholders approve payout of 44.6% in dividend      Vietnam International Bank (VIB) received shareholders approval to distribute 44.6 per cent dividend payment rate in 2016, including 5 per cent in cash and 39.6 per cent in bonus shares. The rate is 25 per cent higher than the previous year, which included 8.5 per cent in cash and 16.5 per cent in bonus shares. At their meeting in Ha Noi on Thursday, shareholders agreed to pay bonus shares to the bank’s employees at a rate of 0.4 per cent of the charter capital. The bank’s shareholders also approved the business plan for this year, which includes pre-tax profit of VND750 billion (US$33 million), surging 7 per cent over last year’s figure, and VND120 trillion in total assets, up 15 per cent year-on-year. VIB chairman Dang Khac Vy believed 2017 would be a promising year for the banking industry and the bank would focus on ensuring the quality of products and customer services and investing in human resources to reach the reviewed goals. Han Ngoc Vu, VIB general director, said the bank would strive to enter into M&A deals and grasp opportunities to buy retail businesses of other banks. Over the past three months, the bank posted after-tax profit of VND126 billion, up 14 per cent year-on-year. During the reviewed period, its net interest income, net fee and commission income and gain from investment securities also experienced positive growth of 16 per cent, 31 per cent and 21 per cent, respectively. Debts purchased from the Viet Nam Asset Management Company were handled well, resulting in a decrease of 2.19 per cent in the bank’s non-performing loan ratio as of March 31, lower than the 2.58 per cent seen at the end of 2016. VIB shares (code VIB), meanwhile, dropped 0.5 per cent to close at VND20,000 on the Unlisted Public Company Market (UPCoM) on Thursday. Vingroup targets 40% revenue growth, lower net income      Leading business conglomerate Vingroup, one of the nation’s largest real estate developers and a retail sector giant, targets higher revenues but expects lower net profit this year. At the group’s annual shareholders meeting held on Wednesday in Ha Noi, the board of shareholders approved a total revenue target of VND80 trillion (US$3.5 billion) for the year, and a post-tax income of VND3 trillion ($134.2 million). In 2016, the company earned net revenues of VND57.61 trillion ($2.57 billion), up 69 per cent over 2015, and a post-tax income of VND3.51 trillion ($157 million). The group’s 2017 targets show a year-on-year drop of 15 per cent in post-tax income, but a 40 per cent increase in revenues. The value of real estate transactions was VND83 trillion ($3.7 billion), with 15,000 apartments, villas, townhouses and hotel condos sold. Vingroup Chairman Pham Nhat Vuong said that increase in revenues do not necessarily mean an equally high increase in profits, because of changing market conditions. Vingroup paid VND6.18 trillion ($276 million) in taxes in 2016. The group informed its shareholders that it would continue to issue new shares and intensify focus on its retail sector operations. The group’s stocks are publicly traded on the HCM Stock Exchange under the stock code of VIC. On Thursday, VIC stock stood at VND40,900 per share. Announcing its audited, consolidated earning results for 2016, the group said net profit attributable to the shareholders was VND2.43 trillion or VND1,178 per basic and diluted share compared to VND1.21 trillion or VND558 per basic and diluted share the year before. All of Vingroup’s core businesses grew and secured significant market shares last year, the meeting heard. The retail sector showed the most significant growth last year, as its supermarket chains, convenience stores and other retail outlets posted a 115 per cent increase over 2015, earning total revenues of VND9.24 trillion ($413.4 million). Three years after it entered the sector, the group now operates more than 1,000 retail stores across the country, serving more than 56 million customers. Other areas earning high returns in 2016 included the hotel, travel and recreation business with VND4.25 trillion ($190 million) for a 49 per cent increase from 2015’s figure; the health and medical care service sector with VND1.09 trillion ($48.77 million) for a 42 per cent increase; and the education sector with VND713 billion ($31.9 million), a 39 per cent increase. Vingroup opened two new hotels and 10 new shopping malls in 2016, bringing the total to nine hotels and 32 malls. The board’s decisions and future business plans received near unanimous approval of 96 to 100 per cent from shareholders. Household firms fear red tape The Government should create the best possible conditions, including easing tax procedures, to encourage household businesses to expand into companies. Speaking at a seminar on April 27 on “Transforming household businesses into companies” organised by Tuổi Trẻ (Youth) newspaper, Nguyen Thi Cuc, chairwoman of the Vietnam Taxation Consultancy Association and former deputy head of the General Department of Taxation, said, “Household businesses worry about the complex procedures and paying higher taxes and so don’t want to expand into companies.” There are around five million household businesses in the country with total annual turnover of US$100 billion and nearly eight million employees. Household businesses are mostly involved in trading and services, especially wholesale and retail business, accommodation, food, and motorbike and car repair. But since they are designated as household businesses, they face limitations with respect to their development. “They cannot expand to other districts, can’t do business in several industries, can’t employ more than 10 workers and have limited financial resources,” Phan Duc Hieu of the Central Institute of Economic Management said. He pointed out they would have certain advantages if they expand into companies like better labour quality, accurate taxes and greater capacity to mobilise financial resources. “The process of upgrading into an enterprise is very simple, and household businesses can benefit from consultation and incentives from the Government [for upgrading].” However, when asked in a recent survey by the institute what problems they fear in upgrading, household businesses said they would have to pay higher salaries, social insurance and bonus for employees; adopt a complex accounting system; follow many cumbersome procedures and spend more on management and other fees; undergo regular inspections; and would be unable to negotiate their taxes like they do as household businesses. To encourage businesses to upgrade, Cuc said the Government should pass a Small and Medium Sized Enterprises Law. “The Government should show household businesses through a clear legal framework how they can benefit if they expand into enterprises. “Administrative reforms should be sped up to reduce costs and time for them. “The Government should support household businesses in terms of technology, market information and product demand if they turn into enterprises.” Hieu said, “Relevant authorities should review the whole legal system, especially on taxation, conditions for doing business and investment to create the best conditions for small enterprises.” He also wanted more taxation and accounting agencies set up to support them. HCM City authorities are encouraging and helping household businesses become companies to achieve the city’s target of registering more than 50,000 enterprises this year and having a total of 500,000 by 2020. NCB to raise total asset to 4.18 bln USD The National Citizen Joint Stock Commercial Bank (NCB) has set to raise total value of its asset to 95 trillion VND (4.18 billion USD) in 2017, up nearly 40 percent from last year, heard a shareholders meeting on April 27.  The bank’s net revenue is expected to hit 350 billion VND (15.4 million USD), up 60 percent against the last year, the bad debt rate is kept at below 3 percent.   This year, NCB will focus on improving its business model, enhancing risk management capacity, and expanding customer and partner ecosystems.  It will select foreign strategic shareholders among its partners, which are interested in adding 3 trillion VND more to NCB’s charter capital.  Last year, NCB started a development strategy for the 2016-2020 period and made impressive performance. The State Bank has approved NCB’s plan to open six more transaction points.  NCB’s report shows that the bank’s total asset was valued at 70 trillion VND (3.08 billion USD) in 2016, registered growth of 43 percent against 2015.  Capital mobilisation and lending recorded high growth, hitting over 18,467 billion VND (812.5 million USD) and 8,937 billion VND (393.2 million USD), respectively.  The bank’s 2016 revenue reached 211 billion VND (over 9.28 million USD), 91 percent high than 2015. The quality of balance sheet has been improved and the rate of bad debt stood at below 3 percent.  NCB, established in 1995, started off as a bank for the agricultural sector before transforming into a commercial bank in 2014. It was named the “Most Innovative Retail Bank Vietnam 2015” and “Most Innovative Bank for Enterprise Culture Vietnam 2015” by the UK-based Global Banking and Finance Review. Vietjet Air launches Hanoi-Singapore service Vietnam’s low-budget Vietjet Air officially launched a flight between Singapore and Hanoi from Singapore’s Changi international airport on April 27. The airline hoped the new route will meet travelling demand and help facilitate trade and integration in the region. The daily flight will take 2 hours and 55 minutes, taking off from Hanoi at 10:00 and landing Singapore at 13:55 (Singapore time) and taking off from Singapore at 14:55 and landing Hanoi at 16:50.  Vietjet is the first airline in Vietnam to operate as a new-age airline with low-cost and diversified services to meet customers’ demands. A member of the International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate, the airline was also named as one of the Top 500 Brands in Asia 2016 by global marketing research company Nielsen and “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies and tour operators in throughout Asia. The airline was also rated as one of the top three fastest growing airline brands on Facebook in the world by Socialbakers. Currently, the airline boasts a fleet of 45 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 63 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the Republic of Korea, Taiwan, Malaysia, China and Myanmar. It has carried nearly 35 million passengers to date. Toyota Vietnam produces 400,000th car Toyota Motor Vietnam (TMV) completed the production of its 400,000th car on April 27, marking the company’s development milestone in the Vietnamese market. At a ceremony in celebration of the event, TMV President Toru Kinoshita said his company has been working on the improvement of assembly lines and product quality. This is the reason why Toyota is listed among favourite brands in Vietnam’s domestic auto market. TMV started production in Vietnam in 1996, with two cars per day on average. Now, the figure is 170, with cumulative sales as of 2016 exceeding 412,000 cars. Brazil initiates anti-dumping probe on welded steel pipes The foreign trade secretariat of Brazil has announced it has begun an antidumping duty investigation on imports of welded austenitic stainless steel pipes from Vietnam, Malaysia and Thailand. The inquiry is predicated upon a complaint filed by Aperam Inox Tubos Brasil Ltda and Marcegaglia do Brasil Ltda covering the period between October 2015 and September 2016. The goods in question fall under Custom Tariff Statistics Position Numbers 7306.40.00 and 7306.90.20. Travellers flock to resort cities for holidays Almost all hotels in the resort cities of Sa Pa and Đà Lạt are reportedly fully booked for the four-day Reunification and Labour Day holidays. Travellers complain that the rates of the few remaining rooms have doubled, but that they don’t have a choice now. Sa Pa and Đà Lạt were last year named among the best destinations for 2017 by TripAdvisor travellers. As most of southern Việt Nam is going through one of the hottest summers in years, there will certainly be huge crowds in places that can offer some relief from the heat. Vietnam Airlines has added 175 flights on domestic routes, anticipating a 15 per cent increase in demand compared to last year. Railway companies will also schedule dozens of extra trips to destinations such as Nha Trang and Phan Thiết. Mekong Delta farmers begin shrimp harvest Farmers in the Cuu Long (Mekong) Delta region have begun this year’s first harvest season of brackish water shrimp, earning strong profits due to high prices and favourable breeding conditions. The price of 30-piece-per-kilo size black tiger shrimp, which is bought at ponds by traders, is 245,000-250,000 VND (10.6-10.8 USD) a kilo.   Nguyen Duy Bao, who rotates growing shrimp and rice in a rice field in Kien Giang province’s An Minh district, said “At this price, shrimp-rice rotating farmers can earn a profit that is equal to 60-70 percent of the production cost of shrimp.” In the early months of this year the weather was not severe as during the same period of last year, so shrimp grew quickly, Bao said. Farmers in Kien Giang have bred more than 102,000ha of shrimp in the first three months of the year, up 11 percent against the same period last year, according to the province’s Department of Agriculture and Rural Development.    In Ca Mau province, which is the country’s largest shrimp producer, farmers who began breeding shrimp fries early this year have reaped their harvest.   Nguyen Van Thoa in Ca Mau province’s Phu Tan district has sold two ponds of white-legged shrimp after three months of breeding and got a profit of 700 million VND (30,400 USD). Many farmers here have not bred shrimp this year because they were afraid of severe drought, salt water intrusion and poor harvest as last year, Thoa said. This year, saline water intrusion in the delta occurred late and the salinity has been low so many farmers are waiting for the proper time to release shrimp fries into ponds for breeding. At present, the weather is hot, causing a high content of pH (potential of hydrogen) in shrimp ponds or rapid growth of algae in shrimp ponds. This could affect the growth of shrimp. Quach Thi Thanh Binh, deputy head of the Soc Trang province Aquaculture Sub-department, said farmers should regularly carry out water inspections as well as heed the warning of competent agencies about shrimp diseases in order to choose a proper time to put water into shrimp ponds. Soc Trang will enter its main period for releasing shrimp fries into ponds for breeding after May when the rainy season officially begins, according to the province’s Department of Agriculture and Rural Development. The province’s shrimp breeding areas expect to increase as the price of shrimp is high this year, said the department. Soc Trang farmers have harvested more than 1,000ha of shrimp with a total yield of 4,153 tonnes so far this year. Ngo Thanh Linh, General Secretary of the Ca Mau Association of Seafood Exporters and Producers, said most shrimp processors in Ca Mau are facing a shortage of shrimp material. The supply of raw shrimp can only meet 40-50 percent of the demand of large shrimp processing firms in the province, he said. In addition, the third quarter of the year is the main shrimp export season so most domestic shrimp processors are buying more raw shrimp to ensure their production. The domestic supply of raw shrimp will not meet the demand of shrimp processors in the coming time and the price of shrimp will remain high, Linh said. The delta, which accounts for more than 80 percent of the country’s shrimp breeding area, has raised more than 536,000ha of shrimp as of the end of last month, up about 53,300ha against the same period last year. Honda Viet Nam recalls 300 Civic cars      Honda Viet Nam is recalling 300 cars of the Civic 15TOP 2016 model over the faulty three-way connector in the cooling system, according to Register Viet Nam. Three-way connector is the coolant transfer port for the engine cooling system. While replacing the entire cooling water in the system, some impurities in the cooling system may adhere to the screws on the three-way adapter, making the connector’s cross section narrower than the standard and resulting in insufficient supply of cooling water.. This phenomenon can cause the air’s failure to return to the expansion box and mix with the cooling water, and hence reduce the cooling effect. Thus, overheating of the engine can occur and the MIL warning light will illuminate. In the worst case, it can damage the engine, Register Viet Nam said. All cars recalled under this campaign were produced in Thailand in 2016, of which, Honda Việt Nam imported and distributed 300 cars. The process of checking and replacing the three-pipe coupling of the engine cooling system is expected to take 20 minutes for each car. Replacement parts and labour cost associated with the recall will be paid by Honda Viet Nam. The recall campaign is scheduled to end on April 13, 2018. Civic is the latest model introduced by Honda Viet Nam in the market in January 2017. The new-generation Civic has been completely transformed from the previous generation model – in terms of both the exterior and interior – especially the 1.5 litre turbocharged engine. Earlier, in March, Honda Viet Nam recalled 1,355 cars to repair and replace air bag inflators of models Honda Civic, Honda CR-V and Honda Accord.  Hạnh Nguyễn becomes SASCO chairman Branded goods trader Jonathan Hạnh Nguyễn has been voted as chairman of the Southern Airports Services Joint Stock Company (SASCO). Hạnh replaces Đoàn Thị Mai Hương for the remaining duration of her 2015-19 term. Hương took over the position of SASCO’s general director on April 20. Hạnh’s wife, Lê Hồng Thuỷ Tiên, is currently a member of the SASCO’s executive board, but she will not be a part of the company’s management. Tiên joined SASCO in 2014. She is now general director of Imex Pan Pacific Trading Group (IPP), which holds 31.6 million shares of SASCO, equivalent to 24.05 per cent, or VNĐ784.4 billion (US$34.46 million). As per a VnEconomy.vn report, two other subsidiaries of IPP, Âu Châu Fashion and Cosmetics Co Ltd and Duy Anh Fashion and Cosmetics Co Ltd, have 14.6 per cent and 5 per cent stake in SASCO, respectively. In all, IPP and its members have 44 per cent of SASCO shares. The company’s shares are currently at VNĐ24,800 per share, with a market capitalisation of VNĐ3.26 trillion. Hạnh’s family is known to have recently entered the aviation sector business. SASCO is an affiliate of Airports Corporation of Việt Nam (ACV) and is among the largest airport service providers in the country, operating duty-free shops, restaurants, guest rooms and transport services. ACV holds 49.8 per cent of SASCO’s capital. In the first quarter of this year, SASCO earned VNĐ597 billion in revenue and made an after-tax profit of VNĐ66 billion. The company has set a target to earn VNĐ2.2 trillion this year and make an after-tax profit of VNĐ220.7 billion. SASCO has a charter capital of nearly VNĐ1.32 trillion. In 2014, the company’s initial public offering (IPO) saw one of the most remarkable transactions of the year, when 145 million shares were ordered, five times higher than the offering. Shares were sold at an average price of VNĐ19,330 per share. FLC Group targets double revenue this year Property developer FLC Group is targeting integrated revenue of VNĐ13 trillion (US$577.7 million) and pre-tax profit of VNĐ1.23 trillion in 2017, double the figures of the previous year. This was announced at the group’s shareholder meeting held in Hà Nội on Monday. The meeting was organised earlier than usual as FLC is in a rush to introduce its real estate projects to the market. Last year, FLC witnessed achievements in the property sector, with total sale revenue of more than VNĐ5.87 trillion, of which, its revenue from resorts reported positive results. FLC has brought a range of large projects into operation, including FLC Quy Nhơn, the seaside ecological resort at Hồ Xuân Hương in the central province of Thanh Hóa. In addition, it has implemented other large real estate projects nationwide, such as the second phase of FLC Sầm Sơn, Vĩnh Thịnh-An Tường (Vĩnh Phúc), Quảng Bình, Hạ Long (Quảng Ninh) and Đồ Sơn (Hải Phòng), with total investment of several thousand trillions of đồng. It has also been successful in its sale offer of several commercial housing projects in Hà Nội, such as FLC Complex 36 Phạm Hùng and FLC Twin Towers 265 Cầu Giấy. Following these achievements, FLC has been listed as one of top 50 most valuable brand names in Việt Nam by Brand Finance and one of the strongest brand names of 2016. FLC’s stock continues to be one of the most active shares in terms of liquidity and average transaction amount. The group issued stocks to its current shareholders and mobilised over VNĐ1.08 trillion, bringing its total chartered capital to VNĐ6.38 trillion since August 19, 2016. Last year, it posted integrated revenue of VNĐ6.65 trillion, representing an 11 per cent year-on-year increase. Its pre-tax profit increased by 15 per cent from the previous year to VNĐ1.33 trillion and the company contributed VNĐ361 billion to the State budget. Until the end of last year, its total assets reached VNĐ17.9 trillion, posting an 80 per cent increase from the previous year, while its ownership capital was VNĐ8.4 trillion. Accordingly, FLC plans to pay dividend at the rate of 10 per cent of its charter capital, including 3 per cent in cash and 7 per cent in stocks equivalent to 44.7 million shares, in the second quarter of the year after receiving approval from the State Securities Commission. “The rate of dividend payment from 2017 onwards would always be higher than the previous years,” Trịnh Văn Quyết, FLC’s chairman of the management board, said. He said the group would mobilise resources to accelerate progress of its resort projects to complete the set targets. It would also negotiate to acquire other real estate projects while continuing development of industrial parks (IPs) such as Hoàng Long IP in Thanh Hóa Province and Tam Dương II and Chấn Hưng IPs in Vĩnh Phúc. Lê Thành Vinh, FLC’s general director, said each of its resorts has created jobs for some 1,000-2,000 people per year, contributing to its prestige. He said this was the reason many large international organisations met with FLC to seek co-operation. Answering shareholders’ question on the construction of the Sơn Đoòng cable car in the central province of Quảng Bình, Quyết said FLC has conducted a study and survey on the project prior to calling for investment from the locality. “It is noted that, if deployed, the cable car certainly does not enter the cave, only reaching the area near the cave’s entrance. The terminal of the cable car is a few kilometres from the entrance", he said, adding that the project would only be implemented if it received approval from relevant parties and completed all necessary procedures. He also said FLC Group planned to merge FLC and FLC Faros Company. In the future, the group will invest in a casino on Ngọc Vừng Island and twin towers of 60 floors each in the northern province of Quảng Ninh. Leading construction trade fair opens in Hanoi The largest construction trade fair in the country– Contech Vietnam 2017 – opened its doors today (Apr. 25) at the National Exhibition Construction Centre located at No. 1 Do Duc Duc Street in the Nam Tu Liem District of Hanoi. leading construction trade fair opens in hanoi hinh 0 More than 200 exhibitors from Germany, the EU, Japan, the Republic of Korea, Singapore, Taiwan, Malaysia, China and Vietnamare showcasing a vast array of products for the all phases of the construction and mining industry. In a keynote address, Thai Duy Sam,vice chair of the Vietnam Construction Association noted the event offers opportunities for local businesses to purchase the latest machinery and equipment from top leading manufacturers from around the globe. The event runs through April 28. Int’l food & hotel exhibition underway in HCM City The International Food & Hotel Vietnam 2017 is taking place in Ho Chi Minh City from April 25-27. The exhibition is held by the Vietnam Chamber of Commerce and Industry (VCCI) Exhibition Service Co., Ltd and Singapore Exhibition Services (UBM SES). This year’s event drew over 600 businesses from nearly 40 countries and territories to showcase the latest technologies in food and hotel services. The event houses 20 international pavilions from Canada, the US, Spain and Turkey, offering fresh and dried vegetables and fruits, canned and frozen products, poultry meat and seafood, and processed food. For instance, the US booth brought together around 40 food and beverage companies from 14 states, providing numerous cooperation opportunities for Vietnamese importers and distributors. Director General of UBM SES BT Tee said businesses could seek suppliers of food products and materials at the exhibition. Conference offers trade opportunities to Vietnam, China businesses A conference on Vietnam – China trade cooperation was organised in Hanoi on April 25 by the Vietnam Chamber of Commerce and Industry (VCCI) and China Council for the Promotion of International Trade (CCPIT) in Zhejiang.  The event was designed to provide opportunities for enterprise of Vietnam and China’s Zhejiang province to meet and look for cooperation possibilities.  At the function, Do Kim Lang, deputy head of the Vietnam Trade Promotion Agency (Vietrade), stressed Vietnam is the biggest partner of China in ASEAN, adding that Vietnam has made great efforts to stabilise the currency exchange rate and improve the business climate for both domestic and foreign investors. Huang Xiao Hang, deputy head of the CCPIT Zhejiang, said more than 30 firms from his province want to meet their Vietnamese peers, adding that his agency expects to help both sides step up partnerships in garment-textile, leather and footwear. VCCI General Secretary Pham Thi Thu Hang noted that China had been the biggest trade partner of Vietnam and the country’s top export market for 11 consecutive years. Hang quoted the CCPIT’s assessment that Zhejiang boasts the highest number of firms investing in Vietnam and doing business with Vietnamese firms, compared to other Chinese provinces. She said she expects the conference will contribute to boosting connection between Vietnamese and Chinese businesses. According to the General Department of Vietnam Customs, trade between Vietnam and China amounted to 71.9 billion USD last year, up 7.9 percent year on year. By the end of March 2017, China was ranked 8th among foreign investors in Vietnam with 1,615 projects worth 11.1 billion USD. SSI to issue bonds worth VNĐ300 billion again Saigon Securities Incorporation (SSI) has decided to issue bonds worth VNĐ300 billion (US$13.3 million) to financial and credit institutions. The company will issue 600 two-year bonds at a par value of VNĐ500 million each. This is a type of non-convertible bond with secured property and priority payment as other secured debts, issued and paid in VNĐ, and issued in the form of book entries. The interest rate is calculated on the basis of one-year interests for individual customers of five banks – Vietcombank, Vietinbank, BIDV, Agribank and VIB – plus amplitude. The amplitude in the first 12 months is 1 per cent annually; and from the 13th to the 24th month it is 1.2 per cent. Bonds will be paid only once, at the time of maturity of the bonds; bond interest will be paid once a year. The VNĐ300 billion mobilised capital is expected to be used for underwriting, investing in listed bonds, and increasing the capital for SSI’s activities, but excludes other investments and stock trading. This is the second time in 2017 that SSI has issued bonds, increasing the total value of bonds issued after both sessions to VNĐ600 billion. In January, SSI had issued bonds of VNĐ300 billion to individuals and non-financial investors for diversifying mobilised funds and raising medium-term capital in its capital structure. At its annual shareholders’ meeting on April 21, SSI reported that the company’s business earnings  for 2016 reached VNĐ2.312 trillion, exceeding 60 per cent of the target and up 28 per cent against 2015. Its pre-tax profit was VNĐ1.056 trillion, 11.24 per cent higher than the target. For 2017, SSI plans a consolidated revenue target of VNĐ2.108 trillion and consolidated profit before tax of VNĐ1.058 trillion. Conference offers trade opportunities to Vietnam, China businesses A conference on Vietnam – China trade cooperation was organised in Hanoi on April 25 by the Vietnam Chamber of Commerce and Industry (VCCI) and China Council for the Promotion of International Trade (CCPIT) in Zhejiang. The event was designed to provide opportunities for enterprise of Vietnam and China’s Zhejiang province to meet and look for cooperation possibilities.  At the function, Do Kim Lang, deputy head of the Vietnam Trade Promotion Agency (Vietrade), stressed Vietnam is the biggest partner of China in ASEAN, adding that Vietnam has made great efforts to stabilise the currency exchange rate and improve the business climate for both domestic and foreign investors. Huang Xiao Hang, deputy head of the CCPIT Zhejiang, said more than 30 firms from his province want to meet their Vietnamese peers, adding that his agency expects to help both sides step up partnerships in garment-textile, leather and footwear. VCCI General Secretary Pham Thi Thu Hang noted that China had been the biggest trade partner of Vietnam and the country’s top export market for 11 consecutive years. Hang quoted the CCPIT’s assessment that Zhejiang boasts the highest number of firms investing in Vietnam and doing business with Vietnamese firms, compared to other Chinese provinces. She said she expects the conference will contribute to boosting connection between Vietnamese and Chinese businesses. According to the General Department of Vietnam Customs, trade between Vietnam and China amounted to US$71.9 billion last year, up 7.9% year on year. By the end of March 2017, China was ranked 8th among foreign investors in Vietnam with 1,615 projects worth US$11.1 billion. Long An looks to become modern industrialised province by 2020 Although Long An province has taken the lead in foreign direct investment (FDI) attraction in the Mekong Delta, it is still using different measures to improve its competitiveness and investment climate so as to become a modern and sustainable industrialised province by 2020. Nearly 800 FDI projects worth almost US$6 billion are registered in Long An. About 500, or 62.5%, of the projects are operational with about US$3 billion already disbursed. They concentrate in industrial parks and clusters in key economic districts such as Duc Hoa, Ben Luc, Can Duoc and Can Giuoc, and Tan An city. The UK, China’s Taiwan, Japan, Singapore, the Republic of Korea, and the US provide the most funds of the 37 countries and territories that invest in the province. FDI projects are said to have been making a breakthrough in local industrialisation and modernisation, promoting economic restructuring, job creation, and social issues settlement. From now to 2020, Long An will give top priority to FDI projects in urban residential area construction, transport and industrial infrastructure, hi-tech agriculture, and support industry, according to provincial authorities. Chairman of the provincial People’s Committee Tran Van Can said more effective solutions are being used to create a more favourable investment environment. The administration will strictly deal with sluggish projects by cancelling them, resizing the project area to suit investors’ actual capacity, or extending the deadline for project implementation. It will also restrict permission for projects that may cause serious environmental pollution, reclaim rice farming land, or do not match local planning, Can said. Long An, 15th in the Provincial Competitiveness Index rankings last year, will step up administrative reforms and put its public administrative centre into use soon to save time and cost for people, businesses, as well as civil servants, the People’s Committee said. They are going to develop vocational training establishments to improve the local workforce’s capacity, thus meeting enterprises’ employment demand. About 5,000ha of land will be ready soon to accommodate investment projects through 2020. Areas in the districts of Dong Thap Muoi, Can Duoc and Can Giuoc will be zoned for hi-tech agricultural activities, according to the provincial Department of Natural Resources and Environment. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR