BUSINESS IN BRIEF 27/7 HCM City, Lotte group seal deal to build Eco Smart City   Representatives from Ho Chi Minh City’s authorities and a Lotte Group joint venture signed a contract on the construction of the Eco Smart City in new Thu Thiem urban area on July 25. The joint venture consists of Lotte Asset Development, Lotte Shopping, Lotte Hotel and Lotte Engineering and Construction companies.  The construction of the project, worth about 20.1 trillion VND (884.4 million USD), is expected to begin within the third quarter this year. The contract signing took place as part of a meeting between Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong and CEO of Lotte group Shin Dong-bin. Both witnessed the signing ceremony. Receiving CEO of the Republic of Korea conglomerate, Phong vowed to facilitate foreign investors, including Lotte, to operate in the city. He said Lotte showed serious investment commitments when signing a pact to lease land for its Eco Smart City in the Thu Thiem urban area. The leasing price is 2 trillion VND (88 million USD).  For his part, Shin Dong-bin thanked the local authorities for the favorable conditions it has created for Lotte and called for further assistance to the Thu Thiem project. He said his group is striving to serve the demand of Vietnamese customers and contribute to the country’s overall development. US company seeks to build solar energy plant in Can Tho The Dragon Capital Management Limited of the US discussed its plan to build a solar energy plant with authorities of the Mekong Delta city of Can Tho at a working session on July 25. The company’s investment director, Gavin Smith, said the city has favourable conditions for such a plant, adding that the company will begin feasibility studies in August, with construction to be started in the first quarter of 2018. According to him, the plant will be built in two phases, with the first phase having a capacity of 29 MW and the second – 100 MW, with an initial investment of 1 trillion VND (44 million USD). The city suggested two sites for the future plant, both in the O Mon industrial park, asking the company to submit detailed reports on the construction of radiation measurement stations, the plant’s technical data and safety. Vietjet Air, Japan Airlines ink cooperation deal Vietjet Aviation Joint Stock Company (Vietjet Air) and Japan Airlines (JAL) on July 25 signed a cooperation agreement in order to improve their service quality and turnover.  Under the agreement, the two airlines will initially launch a code-share partnership for routes between Japan and Vietnam, their domestic flights as well as flights between Vietnam and other Asian nations.  Besides, they will join hands in regular customer services, technical maintenance, training and ground services.  Japan Airlines Deputy General Director Tadashi Fujita said the Japanese carrier believes that the deal will help increase the numbers of passengers and cargoes between the two countries.  Vietjet Air Managing Director Luu Duc Khanh said Japan is a key market in Vietjet Air’s plan to expand its network across Asia-Pacific.  The cooperation is expected to help diversify products, classify customers, stimulate travel demand in Vietnam and Japan in the time ahead, and enhance links between the two airlines, he said.  The two airlines also discussed the launch of more flights to meet the increasing travel demand of people in Asia and the two countries in particular.  Japan Airlines is conducting routes from Narita airport in Tokyo to Ho Chi Minh City and Hanoi and from Haneda airport in Tokyo to HCM City.  Vietjet is the first private airline in Vietnam to operate as a new-age airline with low-cost and diversified services to meet customers’ demand.  Currently, the airline boasts a fleet of 45 aircraft, including A320s and A321s, and operates 350 flights a 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. Khanh Hoa asks faster Cam Ranh airport runway construction Authorities in the central province of Khanh Hoa have requested a new runway that is under construction at Cam Ranh international airport should become operational in 2018. The project on Cam Ranh airport’s second runway began in March 2015 and was expected to be completed within 36 months. However, unfavorable weather conditions have deterred the construction from finishing as schedule. Financed by the State, the project costs over 1.9 trillion VND (83.6 million USD). The construction features a runway, which is 3.048 metres long and 45 metres wide. Cam Ranh airport was built by the US troops to serve its military missions during wartime and was converted into a civil airport in 2004. It was upgraded to an international airport in 2009. Currently, the airport’s international terminal has a capacity of 1.5 million passengers annually. In September last year, the construction of a new international terminal at Cam Ranh airport began. The project, worth over 3.7 trillion VND (162.8 million USD) is set to be carried out in three stages. The first stage is planned to be completed in 2018, enabling the terminal to greet 2.5 million passengers annually. In 2016, Cam Ranh airport handled 4.9 million passengers. An Giang targets 800 million USD in export turnover The Mekong Delta province of An Giang is striving to fulfill the target of 800 million USD in export revenue this year by promoting the shipment of rice, aquatic products and vegetables, a local official said. The province has assisted local enterprises in developing material areas while boosting the export of products with high added value, processed products, said Vo Nguyen Nam, Director of the provincial Department of Industry and Trade. An Giang has focused on strengthening connections at home and abroad, increasing trade promotion activities, expanding markets and assisting local enterprises in attending fairs and workshops. The province has also regularly updated businesses on export markets and taken measures to remove difficulties for production firms. In the first seven months of this year, An Giang shipped abroad over 212,000 tonnes of rice, raking in 98.2 million USD, equivalent to 80 percent in volume and 94.3 percent in value of the same period last year. The export of frozen aquatic products reached nearly 73,000 tonnes, worth 139.4 million USD, up 3.89 percent year on year. Apparel exports totaled 10.13 million units, valued at 55.3 million USD, a slight fall in volume, but rising by 5.73 percent in value year on year. In the reviewed period, the province’s export value exceeded 429.5 million USD, accounting for 52.3 percent of the annual target, up 1.69 percent year on year. Chinese trade fair to open in Hanoi The sixth export fair of Zhejiang, China will take place at the International Centre for Exhibition (ICE) in Hanoi from August 3 -5, heard a press briefing on July 25. Over 100 businesses from the Chinese province, which represent the “Zhejiang Made, All Need” symbol, are displaying their products at 150 booths featuring machinery, electricity and electronic equipment, construction materials, interior decoration, metals, garment and textiles, and consumer products. The 2017 Zhejiang Export Fair will serve as a bridge, promoting the economic and trade relations between Vietnam and the Chinese province. Last year, the fair witnessed the signing of contracts worth nearly 24 million USD. Deputy Director of the Vietnam National Trade Fair & Advertising Joint stock Company (Vinexad) Trinh Xuan Tuan said Vietnam is the biggest trade partner of Zhejiang in Southeast Asia. Trade between Vietnam and Zhejiang hit 6.7 billion USD in 2016, a yearly rise of 12 percent. By the end of 2016, 186 enterprises from Zhejiang invested 1.68 billion USD in Vietnam while Vietnam set up 26 enterprises in Zhejiang with total investment of 20 million USD. Around 250 firms to attend Medi Pharm Expo in HCM City As many as 250 enterprises operating in the pharmaceutical and medical sectors from 22 countries and territories are expected to display their products at the upcoming medical and pharmaceutical exhibition in Ho Chi Minh City. Taking place at the Saigon Exhibition and Convention Centre from August 17-19, the Vietnam Medi Pharm Expo 2017 will showcase medical devices, healthcare and pharmaceutical products, functional foods, cosmetic, processing and packaging machines, dental equipment, among others. Exhibitors will include Vietnamese giant firms and leading global companies from the US, Germany, Italy, France, Ukraine, Belarus, Russia, Uzbekistan, Iran, Turkey, the Republic of Korea, Japan, China, India, Malaysia, Singapore, Pakistan and Thailand. Workshops will be held within the framework of the expo, with discussions covering Vietnam’smedical market and relevant regulations. A fact-finding trip to a major hospital in HCM City will be organised for foreign exhibitors to study demand for medical check-up and treatment of local residents in HCM City in particular and Vietnam in general.  According to the European Chamber of Commerce in Vietnam, the country’s medical equipment market is valued at465.4 million USD and is expected to reach 1.4 billion USD in 2018. Meanwhile, Vietnam has only about licensed 50 firms producing 600 devices, most of them are simple equipment, failing to meet the demand of the domestic market.- Dak Nong earns 50 million USD from aluminium export The Dak Nong Aluminium Company in the Central Highlands province of Dak Nong, part of the Vietnam National Coal and Mineral Industries Group, has earned 50 million USD from exporting 140,000 tonnes of aluminium and 24,000 tonnes of hydrate so far this year. The company produced more than 240,000 tonnes of aluminium in the period and expects to generate another 230,000 tonnes by the end of this year. Most of their products are sold in the Republic of Korea and Japan. According to experts, Vietnam is endowed with a large amount of bauxite, with estimated reserves of 11 billion tonnes, mainly in the Central Highland region. The Dak Nong Aluminium Company, built at total cost of 16.8 trillion VND (739 million USD) with a designed capacity of 650,000 tonnes of aluminium per year, became operational in November, 2016 at Nhan Co industrial park in Nhan Co commune, Dak R’Lap district. Dung Quat oil refinery works on expansion project The State-owned Binh Son Refinery and Petrochemical Company Limited (BSR) has completed the overall plan for the upgrade and expansion of the Dung Quat Oil Refinery. Tran Ngoc Nguyen, CEO of BSR, said the expansion project will cost more than 1.8 billion USD, of which equity capital and loan capital will account for at least 30 percent and 70 percent, respectively. BSR plans to borrow some 1.26 billion USD, Nguyen said, adding that the estimated loan amount is in line with the Prime Minister’s decision on granting approval. Under the project, BSR will set up and put into operation some additional technology workshops for the processing of crude oil with higher sulfur content, such as Murban, ESPO and Arab Light, increasing the stable supply of petroleum products in accordance with the Euro 5 standard.  Crude oil supply of the refinery will also be significantly increased, thus helping it become less dependent on crude oil supply from the Bach Ho (White Tiger) oil field. Expansion work is expected to be completed by 2021, following which Dung Quat Oil Refinery will have capacity to refine 8.5 tonnes of crude oil per year. Manufacturing, processing industry lures FDI Vietnam’s manufacturing and processing industry attracted 12,075 foreign-invested projects with a total registered capital of 180.68 billion USD as of late June, according to the Ministry of Planning and Investment (MPI)’s Overseas Investment Agency.  Economists attributed the figures to Vietnam’s abundant workforce and several incentives for investors.  At the Vietnam Business Forum recently held in Hanoi, Deputy Prime Minister Vuong Dinh Hue reiterated the Vietnamese government’s policy of considering the foreign-invested sector an extremely important part of the Vietnamese economy.  Head of the MPI’s Central Institute of Economic Management Nguyen Dinh Cung said foreign direct investment (FDI) flowing into manufacturing and processing industry is a positive sign, helping Vietnamese firms access advanced technology.  Vietnam is in the period of golden population with over 6.3 million people of working age, giving the sector an edge to attract FDI. Hà Giang Province awaits tourism boom The northeastern border province of Hà Giang boasts majestic scenery, geological features, a diverse eco-system, rare fauna and flora, and the unique cultures of 22 ethnic minorities, but has yet to realise its enormous tourism potential, tourism officials say.  The province has seen average annual growth of 32 per cent in the number of tourist arrivals in the past few years, said Nguyễn Văn Sơn, chairman of its People’s Committee, said. Last year arrivals numbered nearly 854,000, including 176,500 foreigners. Revenue from tourism was estimated at VNĐ795 billion (US$35 million), a year-on-year increase of 13 per cent. In the first six months of this year, there were more than 470,000 tourists, with visitors from HCM City accounting for 35 per cent. But, speaking at an event to promote Hà Giang as a tourist destination in HCM City yesterday (July 21), Sơn said: “The province’s tourism sector is at an early stage of development and faces obstacles like limited human resources and infrastructure. “The province promises to offer favourable conditions for domestic and international investors to develop tourism projects.” Trần Thế Dũng, deputy director of Young Generation, an HCM City tourism company, said the province should offer other tourism products besides the Đồng Văn Karst Plateau Geopark to attract more tourists. He suggested adventure travel in the Tu Sản alley area, Hoàng Su Phì terraced fields, the Gâm River and festivals of ethnic groups. The province’s tourism authorities should develop closer co-operation with travel agents and inform them early about activities like festivals to enable them to make tour plans, he added.  In October 2010 the geopark was recognised as a member of the Global Geopark Network, the first in Việt Nam and second in Southeast Asia to achieve the status. It covers an area of 2,356sq.km and with an average altitude of 1,400-1,600 metres, enjoys a cool climate and a range of different terrains. There are many grand, deep canyons. Mã Pì Lèng Pass, recognised as the deepest canyon in Việt Nam, is 700-800m deep and 1.7 km long. Lũng Cú flagpole, the northernmost point of Việt Nam, is a must-see tourism destination for not only Vietnamese overseas who come back for a visit but also for many locals across the country. Highland  unique cultural feature of the 22 ethnic minorities living in the province. The Hoàng Su Phì terraced fields, recognised as national heritage, is considered one of the most beautiful landscapes in the whole country. Khâu Vai love market, where people can meet up with their old flames for a chat takes place once a year on the evening of 26th and morning of 27th in the third lunar month in Mèo Vạc District’s Khâu Vai Commune. Due to exessive tourism and intruding photographers, locals say they have moved further to find their own quiet space to meet up with their once loved-ones. With its inherent appeal, the market has become a unique cultural identity of the ethnic minorities in the region. The province hopes to welcome 1.5 million tourists by 2020, including 600,000 foreign visitors. Longan production down, price up      Hung Yen Province is expecting this year’s main longan crop to decline in quantity and ripen a week behind schedule. As a result, prices have shot up by VND7,000 (31 US cents) per kilogramme. Doan Thi Chai, Deputy Director of Hung Yen provincial Department of Agriculture and Rural Development (DARD), said that due to high temperatures in the winter months of 2016 and the beginning of 2017, the amount of longan blossoms declined in some areas in the province. Chai also said that since production is expected to go down, the selling price will reach an average of VND35,000 to VND36,000 ($1.55 to $1.6) per kilogramme. A majority of supermarkets and big suppliers have signed contracts with farms and cooperatives in Hung Yen Province at $1.55 per kilogramme of longan. The decline in longan output may mean trouble for exporters, as the added 31 cents per kilogramme will put further strain on production costs - from transporting and processing to conserving of the fruit, and ultimately drive up export prices. The DARD forecast earlier this year that Hung Yen longan farms would loose around 40 to 50 per cent of their annual crop. But at present, the total provincial output is approximately 32,000 to 33,000 tonnes, as opposed to 40,000 last year. Farmers and provincial authorities were able to save a large part of the harvest by using chemical and biological stimuli on the majority of longan trees, and the province’s estimated turnover is just 20 to 30 per cent behind the normal harvest. Although the main crop is expected to go up in price, the early longan crop, which makes up about 10 per cent of the total harvest in the province, is priced lower than last year. Despite the usual demand for early crops, the price fluctuates from VND45,000 to VND50,000 ($2 to $2.2) per kilogramme, much lower than the previous years’ price of VND70,000 to VND80,000 ($3.1 to $3.5). The DARD explained that this is due to yet another late lychee harvest, making the demand for longan drop as consumers are occupied with lychee, instead.  VN leatherware makers make a mark      Many leading fashion houses have switched from Chinese to Vietnamese makers of leatherware, acknowledging the improved quality of leather craftsmanship in Viet Nam, industry insiders say. The Vietnam Leather, Footwear and Handbag Association (LEFASO) announced recently that Viet Nam was the fifth largest exporter of handbags and suitcases in the world, accounting for 5.4 per cent of global supply. The country produces over US$3.2 billion worth of handbags, suitcases and backpacks that are exported to 10 major markets. A large number of factories have become trusted producers for major multinational brands. Nguyen Duc Thuan, LEFASO’s Chairman, said the nation’s leather industry has grown by 10 to 15 per cent per year for the past five years, driven significantly by international fashion brands moving their handbag manufacturing facilities to Viet Nam. Thuan said a majority of fashion houses have chosen to replace Chinese manufacturers with Vietnamese ones through foreign direct investment. In the first five months of 2017, the US was the largest market for Vietnamese suitcases, backpacks, and handbags worth $555 million, a six per cent increase over the same period in 2016, according to the General Department of Customs. The EU was second, importing goods worth $365 million, up 8.2 per cent year on year. Exports to other main markets included Japan at $146.5 million, up 1.7 per cent; China at $57.6 million, down 6.8 per cent; and South Korea at $52.8 million, down 0.4 per cent. Nguyen Minh Phong, Head of the Economic Research Section of the Ha Noi Socio-Economic Development Research Institute, had said in June that bag producers in Viet Nam should diversify their export markets, with emphasis on the US and EU markets. Phong also said that the founding of the ASEAN Economic Community (AEC) in 2015 would pose new challenges for Vietnamese leatherware industry. However, he believed the country could turn this into an advantage and expand exports to other ASEAN markets instead. He recommended that Vietnamese bag makers work together with their counterparts in Thailand, Malaysia or Indonesia to create better value chains, cut costs and increase productivity, as materials are more accessible within the AEC than outside. As local bag and suitcase manufacturers mainly perform outsourced tasks for FDI companies, they need to increase investment, expand production scale and improve product quality to gain a foothold in the domestic market. At present, China still reigns as the world’s largest producer and exporter of backpacks, suitcases and handbags, churning out more than 40 per cent of total global output every year.  Improve implementation of tobacco tax policies, ASEAN urged      ASEAN governments should do more to make their tobacco tax policies more effective, not only for health reasons but also for the budget generation. This was the recommendation under the tobacco tax index issued by the Southeast Asia Tobacco Control Alliance (SEATCA). The index was released during a regional workshop on strengthening tobacco tax administration in Siem Reap recently, which was attended by tobacco tax experts from ASEAN countries, including Viet Nam, Cambodia, Indonesia, Laos and Myanmar. The index tracked progress of the tobacco tax policy against WHO FCTC Article 6 Guidelines and showed that while some countries have made significant progress in formulating and implementing tobacco tax policies, the region as a whole has advanced at a slow pace in the past few years, outpaced by economic and income growth. According to the index, cigarettes are becoming more affordable in ASEAN countries. Thailand currently has the highest tax burden as a percentage of retail price (70 per cent), followed closely by Singapore (66.2 per cent) and Brunei (62 per cent). In contrast, countries with the lowest tax burdens are Cambodia (25-31.1 per cent) and Laos (16-19.7 per cent). Viet Nam, Laos, the Philippines and Thailand have successfully earmarked tobacco excise revenue for tobacco control, health promotion and universal healthcare. Only four (Brunei, the Philippines, Malaysia and Singapore) out of the 10 ASEAN countries tax all tobacco products in a comparable manner. Sophapan Ratanachena, SEATCA’s Tobacco Tax Programme Manager, said most countries had no long-term tobacco tax policies with regularly adjusted fiscal and public health targets. “The major obstacles in some countries are the ineffective tobacco tax structures (such as Indonesia’s multi-tiered system or those with purely ad valorem tax systems), weak tax administration and tobacco industry interference to weaken tax policy or reduce tax collection efforts,” Ratanachena said. Based on international guidelines, the report urged ASEAN governments to implement long-term tobacco tax policies that include public health targets, apply a uniform specific tax system or a mixed system with a minimum specific tax floor and tax all tobacco products in a comparable way. The governments should ask tobacco companies to periodically submit detailed financial reports; establish a tracking and tracing system, including fiscal markings with a unique identifier, to reduce the risk and assist in investigation of illicit trade; prohibit tax-free or duty-free tobacco products; and implement a code of conduct for all government ministries and officials that prohibits unnecessary government interaction with the industry. “Legislating substantial tax increases, strengthening tobacco tax administration and protecting tax policy from tobacco industry interference are equally important for saving lives, raising revenue and controlling illicit trade,” Ratanachena said. “This was echoed in a resolution adopted in June 2017 by the United Nations Economic and Social Council that not only gives due attention to the Addis Ababa Action Agenda, which recognises that tobacco taxation can be an effective and important means to reduce tobacco consumption and healthcare costs and represents a revenue stream for financing development in many countries, but also encourages UN agencies to develop and implement policies on preventing tobacco industry interference to ensure a consistent and effective separation between the activities of the United Nations system and those of the tobacco industry,” she added. At the meeting, participants exchanged information, expertise and best practices in the management of tobacco taxes, identifying gaps and ways to strengthen the administration of tobacco taxes in ASEAN.  10th Vietnam annual report awards announced      Bao Viet Holdings, HCM Securities Corporation, PAN, DHG and Traphaco are among the 10 winners of the the Best Annual Report Awards, which were announced on Tuesday in HCM City. Five others listed companies that were given the Top 10 prize are Novaland, Vingroup, FPT, Asia Commercial Bank and CotecCons. This year’s annual report awards was organized by the Vietnam Investment Review (VIR), the two HCM and Ha Noi Stock Exchanges and the assets management firm Dragon Capital. A total of 50 listed companies received a prize. Vinamilk, apart from being in the 50 top list, was given the sustainable growth report first prize, while HCM Securities Corporation won the corporate management content prize. The first Annual Report Awards was organized in 2008, with the participation of only 38 listed companies. Six received awards. This year, the awards attracted 638 companies with 50 winners. Le Hai Tra, executive member of the HOSE and head of the organising board, said that “transparency and protection of the investors’ legal rights are not only the targets of the legal system on securities and securities market, but also the effort under the name of the Annual Report Awards”. He said transparency awareness of listed companies has continued to improve since the first year of the awards. VIR’s editor in chief, Le Trong Minh, expects to promote the quality of information release to boost the raking of Viet Nam’s market and encourage businesses to employ international practices on corporate management and risk management toward sustainable development. He also hopes to attract the participation of professional institutions--local and international--in the awards jury so that the awards will be widely recognized by international investors. FPT reports H1 results      FPT Corporation recorded consolidated revenue of over VND20.1 trillion (US$882 million) in the first six months of this year, up 13 per cent year-on-year. The figure is equal to 102 per cent of the target for the period. Profit-before-tax was about VND1.42 trillion, increasing by 13 per cent year-on-year and equal to 102 per cent of the target. Profit-after-tax was VND1.2 trillion, up 12 per cent year-on-year. Profit-after-tax attributable to the parent company’s shareholders was VND925 billion, up 13 per cent year-on-year. Earnings-per-share was VND1.7 trillion in the six months, an increase of 12 per cent compared with the same period last year. FPT’s earnings growth in the first half of the year continued to be driven by the two core business sectors -- technology and telecom -- which together accounted for 75 per cent of consolidated profit-before-tax of the group. More specifically, profit-before-tax of the technology and telecom sectors increased by 27 per cent and 17 per cent year-on-year, respectively. The distribution and retail sector achieved 103 per cent of revenue and 104 per cent of profit-before-tax targets for the period, of which the retail segment continued to perform outstandingly in the first six months, up 31 per cent in revenue and 44 per cent in profit-before-tax. During the reported period, FPT’s overseas markets recorded revenue of more than VND3 trillion, up 14 per cent, and profit-before-tax of VND450 billion, up 19 per cent.  Pure Storage introduces data platform for VN businesses      Pure Storage unveiled its vision of a data platform for the cloud era at an event on Tuesday in Ha Noi to help customers accelerate innovation and business transformation. To help organisations in Viet Nam put their data to work, the company announced its new data platform that includes more than 25 new software features and comprehensive hardware updates. They are set to deliver the speed, agility and intelligence that businesses in Viet Nam need to stay competitive in terms of scale. “Modern digital businesses require a data platform that eradicates all complexity while enabling business to build a new class of applications, to extract new insights from data and to do so in real-time,” Pure Storage CEO Scott Dietzen said. “Businesses need to understand how to use the entire data ecosystem -- cloud and on-premises-- to put their data to work and mine insights to deliver customer results,” Dietzen added. ’Evolution’, a global research conducted by US-based Pure Storage, confirms that a new digital era has arrived in Viet Nam. The survey found that digital transformation is reaching the tipping point across Viet Nam, with 53 per cent of businesses now deriving more than half their revenue from digital streams. However, 48 per cent of businesses cited technical complexity as the main barrier to digital transformation.  HCMC to host export markets forum      An export forum on “Market Identification and Risk Management in Export of Vietnamese Enterprises” will be held in HCM City on August 8 to disseminate the latest information, especially about effective ways and solutions to enhance the competitiveness of domestic firms in key export markets. Delegates will discuss global and regional markets after the US’s withdrawal from the Trans-Pacific Partnership (TPP), opportunities and challenges for Vietnamese enterprises when participating in global value chains, ways to improve the quality and competitiveness of Vietnamese products, and the difficulties, risks and risk control techniques when promoting exports. Speakers at the forum will include John Rockhold, executive director of the American Chamber of Commerce in HCM City, Yasuo Nishitohge, general director of Aeon Vietnam, Yuichiro Shiotani, general director of TopValu, and Harry Loh, director of United Overseas Bank (UOB). Organised by the Investment and Trade Promotion Centre of HCM City, the event will gather around 400 delegates, including Government officials, representatives of local and foreign investment and trade promotion agencies, business associations, consuls general, trade counsellors of foreign countries, and executives from local producers of export goods, logistics enterprises, banks and foreign corporations.  Online business registration beyond expectations The rate of registered businesses through the official website of Vietnam in the second quarter of 2017 exceeds the 10% that the Vietnamese government required in Resolution 36a, according to the statistics of the Ministry of Planning and Investment. The latest report on Resolution 36a announced by the Government Office shows that the ratio of business registration through the website http://dangkykinhdoanh.gov.vn in Vietnam is 39.8%, higher than the 31.7% of the first quarter of the year.  Hanoi reached 65.9% and Ho Chi Minh City 51.5%. Ho Chi Minh City has a private registration channel with a total of 7,565 business registration files, occupying 12.6% of the total business registration files in the quarter. Resolution 36a on e-government was issued on October 14, 2015, aiming to promote the development of e-government as well as improve the quality and efficiency of state agencies in order to serve people and enterprises better on the Internet platform. Hong Kong financial group invests in low-cost multiplexes Financial group Blue HK from Hong Kong signed an investment agreement with Start-up Beta Media JSC to construct low-cost multiplexes in smaller cities and provinces in Vietnam, according to newswire NDH. According to the agreement, Beta Media is valued at VND600 billion (US$27.5 million). However, the specific value of the agreement and the stakes to be held by the Hong Kong partner have yet to be disclosed. Previously, Beta Media received investment from Vietnam Investments Group (VIG)—the investor of Galaxy Cinemas and Galaxy Studios, as well as numerous food brands. Since 2015, with the launch of the Beta Cineplex chain in northern province of Thai Nguyen, Beta Media has built and opened three other cinemas in Bien Hoa city in the southern province of Dong Nai and two in My Dinh and Thanh Xuan districts in Hanoi. Ticket prices are 60% to 65% lower than high-end cinemas in major cities. Beta Media general director Bui Quang Minh said that by developing cinema theatres in smaller provinces, the company can avoid the fierce competition with large firms. In 2017, Beta Media plans to open six more multiplexes in the central province of Thanh Hoa, the northern province of Bac Giang, as well as Hanoi, Nha Trang and Ho Chi Minh City, increasing the number of its total multiplexes to 10. The figure is expected to reach 20 by 2018. At present, five leading businesses hold 98% of the Vietnamese film distribution market, three of whom are foreign-invested.  They include CJ CGV with 43%, Lotte with 30%, Platinum with 10%, Galaxy with 9%, and BHD with 6%. CJ CGV, owner of the CGV cinema chain, now has 38 cinema complexes in Vietnam alone, with 247 projection rooms, an increase of 20% over 2015. Lotte Cinema is CJ CGV’s biggest rival, holding 30% of the market share. Owning 29 cinema complexes in the country, Lotte Cinema has a high average growth rate, even higher than CJ CGV’s. Dutch company signs wastewater contract in south The Netherlands’ Royal HaskoningDHV has recently signed a $11.07 million contract with the Ba Ria Vung Tau Urban Sewerage and Development Company (BUSADCO) to implement a complete wastewater solution for over 175,000 residents of the Phu My New Urban Area in southern Ba Ria Vung Tau province. The project will deliver sanitation to residents and industries whose wastewater is currently discharged untreated, resulting in high levels of environmental pollution. The Dutch Government is financing the project as part of its Facility for Infrastructure Development (the ORIO program) in developing countries. The project is expected to be completed by the end of 2019. The new sewage plant will use Royal HaskoningDHV’s Carrousel technology, a proven, cost-effective, reliable, and highly efficient system now applied in some 1,500 wastewater treatment plants around the globe for the biological treatment of municipal and industrial wastewater. The plant will have a treatment capacity of almost 30,000 cu m per day. The project also includes the construction of four pumping stations, over 100 km of pipelines, and connections to 15,000 households and over 1,000 small and medium-sized enterprises (SMEs). During the operation and maintenance phase, the team will also provide technical assistance and staff training. “The construction of a complete wastewater collection and treatment system for the Phu My New Urban Area has become an urgent issue and a top priority for economic and social development in Ba Ria Vung Tau province,” Mr. Hoang Duc Thao, Chairman of BUSADCO, told the signing ceremony. “Since we started to define the need for proper sanitation in this area, all stakeholders have been focused on making this project happen,” said Mr. Doan Manh Thang, Royal HaskoningDHV’s Director of Water, Vietnam. “We have worked closely with BUSADCO, local authorities, and the Dutch Government to define, design, and now implement this much-needed solution. The environmental benefits will be visible in significantly improved water quality in the area’s lakes, canals, and the Thi Vai River, and will result in better living conditions for residents. It will also help SMEs protect the quality of the environment around their businesses.” The wastewater solution for Phu My is the third ORIO-funded project in Vietnam that Royal HaskoningDHV will implement. ORIO encourages public-infrastructure development in developing countries. The scheme will improve the living conditions of approximately 400,000 people. It also adds to the company’s growing number of environmental improvement schemes in Vietnam, of which ten are ongoing. Packaging and printing industry on the rise Vietnam’s packaging and printing industry has been developing strongly over the last few years due to increasing demand triggered by rising local food consumption and exports, a recent technical seminar on the industry held by German Industry and Commerce in Vietnam (GIC) in cooperation with Germany’s Messe Düsseldorf Asia Pte Ltd in Ho Chi Minh City heard. Major challenges face the domestic packaging and printing industry, however, as new technologies are in short supply and those in use create only simple designs and patterns. Such challenges result in local enterprises not fully participating in global value chains and losing sustainable benefits. Solutions raised by industry insiders included the application of advanced technologies in production, the use of new materials, and investment in modern production lines, to increase efficiency and ensure product quality. German experts introduced the development of the world’s packaging and printing industry, technological solutions for Vietnamese packaging enterprises, supporting technologies for printing and packaging design in line with the demand and potential of the industry in Vietnam, and development trends in the future. The seminar aimed to link trade and technology exchanges between German and Vietnamese enterprises so that the latter in the packaging and printing industry can access the latest technological information. According to figures from the German Engineering Federation (VDMA), the packaging industry for processed food in Vietnam will grow 38 per cent between 2015 and 2020, while demand for machinery and materials will also increase, by 25 per cent. There are now some 1,500 industrial packaging and printing enterprises operating nationwide, earning total revenue of more than $2 billion a year. Vietnam’s packaging and printing industry has grown significantly in recent times, at an average of 15-20 per cent annually. The expansion of industrial production has contributed to the growth of industrial packaging and label printing in the country, according to the Vietnam Printing Association. “Technology is considered key in the packaging and printing industry moving further ahead in the global context,” Mr. Gernot Ringling, Managing Director of Messe Düsseldorf Asia, told the seminar. “Vietnamese producers should focus on applying the latest technologies from Europe, the US, and other parts of Asia to remain competitive.” The seminar was organized to introduce technical developments in printing and packaging, solutions for smart packaging, the importance of workflows in a modern print environment, and diversification and individualization in the future. It attracted the participation of nearly 200 domestic enterprises in the field. Vietnam removes Hong Kong from steel dumping list Vietnam has lifted anti-dumping duties on galvanized steel imports from Hong Kong, according to the Ministry of Industry and Trade, Lao Dong newspaper reports. The ministry issued two decisions on anti-dumping measures, namely Decision 3584/QD-BCT dated September 1, 2016 on temporary anti-dumping duties and Decision 1105/QD-BCT dated March 30, 2017 on anti-dumping duties on galvanized steel imports from China (including Hong Kong) and South Korea. After a review, the ministry issued Decision 2754/QD-BCT on July 20, 2017 amending Decision 3584 and Decision 1105. Vietnam now removes anti-dumping duties on galvanized steel imported from Hong Kong in line with the Decision 2754. Sabeco says has selected consultant for State divestment plan Saigon Beer, Alcohol and Beverage Corporation (Sabeco) has chosen a consultant for drawing up a plan to further divest State capital in the company later this year. A report on Sabeco’s first-half performance shows its board of directors approved on June 28 a scheme on negotiations for choosing a consultant for its divestment plan. The report does not disclose the name of the consultant but says the consulting partner was chosen in late April when Sabeco considered consultants for a service package called Solutions for implementing the divestment of the State stake at Sabeco. However, a source from the Ministry of Industry and Trade said it was a tripartite alliance. Bui Truong Thang, deputy head of the Light Industry Department under the ministry, told a press conference in the middle of this month that the alliance groups Ernst and Young Vietnam Co Ltd, Bao Viet Securities JSC, and Southern Information and Valuation Corp. The alliance has been chosen to advise Sabeco on sale of its State-owned stake, which is an overwhelming 89.59% and held by the Ministry of Industry and Trade. Thang added Sabeco has been drawing up a plan for the divestment of its State capital, which will be submitted to the ministry prior to the end of this month. Upon the Prime Minister’s approval on the plan, the ministry will take steps to divest the State stake in Sabeco in line with prevailing regulations. The process is expected to be completed later this year. The board of Sabeco at their general meeting on April 18 proposed the trade ministry divest the State stake as soon as possible to turn the country’s leading brewery into a real public company by nature, and that the stake be put up for auction on the local stock exchange. Sabeco has been listed on the Hochiminh Stock Exchange. Sabeco put its after-tax profit at around VND4.65 trillion last year, and paid a dividend of 30%. The corporation aims for total beer sales of over 1.7 billion liters worth around VND34.47 trillion this year. It targets an after-tax profit of VND4.7 trillion and a dividend of 35% for 2017. The total tax amount to be paid this year is expected at VND9.26 trillion. HCM City to host export markets forum An export forum on “Market Identification and Risk Management in Export of Vietnamese Enterprises” will be held in HCM City on August 8 to disseminate the latest information, especially about effective ways and solutions to enhance the competitiveness of domestic firms in key export markets. Delegates will discuss global and regional markets after the US’s withdrawal from the Trans-Pacific Partnership (TPP), opportunities and challenges for Vietnamese enterprises when participating in global value chains, ways to improve the quality and competitiveness of Vietnamese products, and the difficulties, risks and risk control techniques when promoting exports. Speakers at the forum will include John Rockhold, executive director of the American Chamber of Commerce in HCM City, Yasuo Nishitohge, general director of Aeon Vietnam, Yuichiro Shiotani, general director of TopValu, and Harry Loh, director of United Overseas Bank (UOB). Organised by the Investment and Trade Promotion Centre of HCM City, the event will gather around 400 delegates, including Government officials, representatives of local and foreign investment and trade promotion agencies, business associations, consuls general, trade counsellors of foreign countries, and executives from local producers of export goods, logistics enterprises, banks and foreign corporations.- Electronic toll collection to begin in south Four more toll stations in the southern region will be equipped with electronic toll collection (ETC) systems in the next two months.  Apart from the eight ETC stations that have begun operating in the northern, central and Central Highlands regions, an ETC system will be installed at a toll station in the southern province of Đồng Nai this month, the VOV online newspaper reported. It will be the first ETC station in the southern region, said the VETC electronic toll collection company, which has been assigned the task of developing and launching the ETC systems. In September, VETC will open three more ETC stations on Hà Nội Highway, Đại Hàn Highway and Phú Mỹ Bridge in HCM City. Việt Nam loses VNĐ3.7 trillion (US$162.7 million) every year on paper ticket printing and traffic congestion at the manual toll collection (MTC) systems, the newspaper reported. This is based on the cost calculated at around 100 MTC stations nationwide, and paper ticket printing accounts for VNĐ100 billion ($4.4 million), or 2.7 per cent. Hundreds of millions of đồng are also lost through wasted fuel due to traffic congestion and delayed goods transportation, considering the waiting time for vehicles at manual toll stations, not to mention the negative effects of gas emission to the environment and the risk of traffic accidents. An ETC system operates exactly like a prepaid mobile network provider, said VETC director Vũ Quang Lâm. Every vehicle will be given an electronic tag (e-tag) similar to a mobile SIM card, with a series number similar to a mobile number, which can be topped up using common prepaid mobile services, he explained. “Going through an ETC station will be like making a phone call. The system will automatically charge vehicles in accordance with the toll rate of the station,” Lâm said. “Investors under the Build-Operate-Transfer (BOT) model will no longer have to organise a toll collection mechanism. We will do that for them.” Through e-tag, the system will identify the vehicle and transmit its image and information to a data centre at high speed. Confirmation of the vehicle’s information and deduction of required amount from the account will be almost immediate, so the barrier will lift without the vehicle having to stop. Electronic devices will also be used to supervise the entire toll collection process. VETC is collaborating with Việt Nam Register to install e-tags on motorised vehicles. Deputy Minister of Transport Nguyễn Hồng Trường said that he wanted ETC systems to be installed at all toll stations nationwide by 2020. VNA to operate from Singapore Changi Airport T4      Vietnam Airlines will move its operations to Singapore Changi Airport Terminal 4, which officially opened on July 25. Following negotiations, Vietnam Airlines said it would be one of nine airlines to operate from T4, including Air Asia Group, Cathay Pacific, Cebu Pacific, Korean Air and Spring Airlines. Vietnam Airlines officially launched its direct route between Ha Noi and Singapore on July 1, 1995, with two flights per week. It currently operates 14 flights per week on the HAN-SIN route (from Ha Noi) and 21 flights per week on the SGN-SIN route (from HCM City) on A321 aircraft. The modern-looking T4 is inspired by the purple orchid, Singapore’s national flower. The image of the orchid appears on the architecture and interiors of the terminal, with some 1,000 tall trees grown at the site. There is a shuttle bus service, with a bus every five minutes, connecting Singapore’s T4 and remainder terminals at the airport. With this new terminal, Changi Airport’s capacity is enhanced to receive 82 million passengers per year, with 90 seconds per flight on average.  LG Electronics gets preferential customs      South Korea’s LG Electronics Viet Nam was granted preferential customs treatment by the General Department of Customs on Monday. Located in Trang Due Industrial Zone, Hai Phong City, LG Electronics Viet Nam is an affiliate of Korean conglomerate LG Group. The company has a total investment capital of US$1.5 billion, making it the largest foreign-invested firm in the northern port city so far. It focusses on manufacturing and assembling digital devices for automobiles, mobile phones, washing machines and air conditioners. In his speech at the event, Ryu Nam Ki from LG Electronics Viet Nam vowed that his company would make greater efforts to maintain its certification. Under the General Department of Customs’s programme on priority regime of customs, which began in 2011, an estimated 62 enterprises have received preferential treatment so far. The firms, including 11 from South Korea, now account for 27 per cent of the country’s annual export turnover. Leading US spider silk developer expands footprint into Vietnam  A US leading developer of spider silk based fibres said yesterday (July 25) in a press release that it is expanding its international presence into the Southeast Asian country of Vietnam. Ann Arbor Michigan based Kraig Biocraft Laboratories, Inc. said in the statement that it would locate its headquarters in the heart of Quang Nam province within proximity to mulberry fields and easy access to international air and sea ports. With the location finalized we are now preparing the final documents to obtain approvals to begin work with our innovative hybrid transgenic silkworm technology in Vietnam, said COO Jon Rice. Kraig Biocraft Laboratories, Inc. (OTCQB:KBLB) has achieved a series of scientific breakthroughs in the area of spider silk technology with implications for the global textile industry, said the statement. It is now expanding its footprint into Vietnam working to commercialize the transgenic silkworms to compete in the garment industry silk market for which it claims the Chinese market alone is worth US$3-5 billion per annum. VNN