BUSINESS IN BRIEF 7/7 "Made in Vietnam" cargo container cranes arrive at India   After nearly 30 days at sea, three 1,400-tonne rail mounted quayside cranes (RMQC), also known as ship-to-shore cargo container cranes, have safely reached the port of Bharat Mumbai Container Terminal, India. The cranes were designed and manufactured at Doosan Vina’s heavy industry complex and then shipped from the company’s dedicated port in Quang Ngai, Vietnam on May 19. Each of the three RMQC’s weighs 1,400 tonnes, has a cargo boom of 144 metres, stands 84 metres high and 26 metres wide. The cranes can handle 65-tonne containers efficiently, safely, and profitably. Additionally, because they were fully assembled prior to shipment, the cranes will soon be fully operational. Located at India’s largest container port, BMCT has 16.5-metre deep berths and docks that are 2,000 metres in length. BMCT is well-connected to key markets in India by a network of highways and railroads serving the 4.8 million TEU port. Since Doosan Vina’s grand opening in May 2009, the company has manufactured and shipped 68 giant cargo container cranes to customers around the world. VN-Index up on investor confidence The benchmark VN-Index surpassed the short-term resistance of 780 points on July 6, closing up 0.56 percent at 782.65 points, thanks to strong investor confidence in the market outlook. This is the highest landmark since early 2008. The key index on the HCM Stock Exchange has expanded over 17 percent since the beginning of this year. On the Hanoi Stock Exchange, the HNX-Index rose for a third day, adding 0.67 percent to close the July 5 session at 102.60 points. The northern market index has soared over 28 percent compared to the end of 2016. Investors were solid on the market outlook and increased capital flows in the markets. A total of 341 million shares worth a combined 4.9 trillion VND (216 million USD) were traded on the two markets, up 18.8 percent in volume and 11.4 percent in value compared with the previous session. Money shifted focus on penny and medium-cap stocks. Shares of Tan Tao Investment and Industry (ITA), Hoang Quan Consulting-Trading-Service Real Estate (HQC), HAI Agrochem (HAI) were still among the most purchased on the HCM Stock Exchange. Among these stocks, ITA hit the daily maximum rise of 7 percent allowed on the HCM City market for a third day, settling at 4,940 VND a share. The shares have gained value for nine of the last 10 sessions with a total growth of 45.7 percent following the result of its annual shareholders’ meeting on June 26. At the meeting, ITA announced its ambitious business targets for 2017, of which total revenues will likely reach 880.4 billion VND and net profit of 309.2 billion VND, a rise of 160 percent in revenue and 700 percent in profit compared to 2016’s performance. Besides, many low-priced shares also received large investments including real estate developer An Duong Thao Dien (HAR), Vicem Hai Van Cement (HVX), Lao Cai Mineral Exploitation & Processing (LCM), and Agribank Securities Co (AGR) which hit the daily limit gain. For large-cap stocks, energy firms were among the biggest gainers with PV Gas (GAS), Petrolimex (PLX) and Petrolimex Gas Corporation (PGC) adding up 1 percent, 3.2 percent and 3.6 percent, respectively. According to analysts at Maritime Securities Co, the market will likely face a downward correction after a strong rally. “Cash has been moving to small- and medium-cap shares which may indicate the possibility of a short-term correction,” they wrote in a note and suggested a hold-and-buy strategy while considering profit taking of the stocks that have risen sharply. Reference exchange rate stays stable The daily reference exchange rate for VND/USD set by the State Bank of Vietnam is kept unchanged from the previous day at 22,447 VND per USD on July 7.  With the current trading band of /-3 percent, the ceiling rate applied to commercial banks during the day is 23,112 VND and the floor rate 21,768 VND per USD.  The opening hour rates listed at commercial banks on July 7 saw slight fluctuations.  Vietcombank increased both rates by 5 VND from July 6, listing the buying rate at 22,710 VND and selling rate at 22,780 VND.    The rates at BIDV remained unchanged from the previous day at 22,705 VND (buying) and 22,755 VND (selling).  At Vietinbank, the greenback is being bought at 22,700 VND and sold at 22,780 VND, both up 5 VND from July 6. Cam Ranh airport service company to launch IPO on July 12 Cam Ranh International Airport Service Joint Stock Company (CIAS) will offer over 1.4 million shares as part of the company’s initial public offering (IPO) on July 12. The shares will be auctioned on the Hanoi Stock Exchange (HNX) at the starting price of 30,000 VND (1.3 USD) each. Formerly known as Cam Ranh Aviation Trading Joint Stock Company, CIAS was established in 2009 with chartered capital of 10 billion VND. In 2016, CIAS increased its chartered capital to 60 billion VND. The company provides services for travelers at the Cam Ranh International Airport in the central coastal province of Khanh Hoa, such as restaurants, catering services, business class lounges and souvenir shops. This year, CIAS has set a target of 371.3 billion VND in revenue, 35.5 billion VND in post-tax profit and 35 percent dividend payment. In the first quarter of 2017, CIAS earned 101.9 billion VND in revenue and 12 billion VND in post-tax profit. Japan’s Yokohama promotes water-related business in Thua Thien-Hue A workshop was held in Hue city, the central province of Thua Thien-Hue, on July 6 to promote water-related business activities of Japan’s Yokohama city in Vietnam. The event was organised by the Thua Thien-Hue Construction and Water Supply Co. Ltd (HueWACO), the Yokohama Waterworks Bureau (YWWB) and the Yokohama Water Business Association (YWBA). It attracted 165 delegates from 58 organisations and agencies in Vietnam’s water sector and seven leading water-related agencies of Japan. They were briefed about water supply services, water leak detection technologies, integrated water resources management systems and manpower training so as to improve the water sector’s business efficiency. Participants also shared experience to help Vietnam’s water supply companies receive advice from and advanced water supply technologies transferred by Japan. Vice Chairman of the Thua Thien-Hue People’s Committee Nguyen Dung lauded the cooperation between the two countries’ water sector, noting that the projects implemented by the YWWB in the province have proved effective and become an example of Vietnam’s international cooperation in the water sector. The People’s Committee pledges to facilitate business and investment projects of the YWWB and the YWBA in Hue, he stressed. The province has provided safe water for nearly 1 million people, or 83 percent of its population. However, about 200,000 residents in rural areas haven’t accessed clean water supply sources, he noted, adding that Thua Thien-Hue wants to receive more assistance and cooperation from Japan’s water sector to improve local water supply capacity. A representative of the YWWB said the bureau will sign a cooperation agreement for 2017-2019 with HueWACO to enhance ties in clean water supply for the province. Director of the province’s Department of External Affairs Tran Dinh Phu said aside from water supply, Thua Thien-Hue and Japan have also cooperated in many other spheres such as disaster prevention, heritage preservation, transport, education and health care. Japan is currently the biggest ODA provider of Vietnam as well as the province. Notably, the Japan International Cooperation Agency (JICA) has assisted Hue city with a project on improving the local water environment. Phase I of the project has a total investment of 20 trillion JPY (220 million USD) funded by the Japanese Government’s concessional loan. Central Group opens first stationery center in Vietnam Thailand’s Central Group opened its first-ever B2S stationery and supplies store a few days ago in Ho Chi Minh City’s Thu Duc district, nearby nine universities and four industrial parks. B2S is the first “package” stationery center in Vietnam providing B2S (Business to School) packages, which allows customers to buy everything from furniture and equipment to office machines, computers, and the full range of office supplies. “Our goal is to make business easier,” said Ms. Nguyen Thi Thuc Vy, CEO of B2S Vietnam. “The store is located in a convenient position, as Thu Duc is the largest university village in the country with many universities as well as industrial parks nearby.”  The company plans to open a further 30 stores around the country over the next five years, according to Ms. Vy. B2S has a total area of 900 sq m on four floors with more than 6,000 different office and stationery items, ranging from office furniture, computers, printers, cards, and entertainment materials. About 80 per cent of the goods are imported. The center not only supplies stationery but also trendy fashion and lifestyle products, home décor items, handmade products, accessories and gifts, arts and crafts, handbags, high quality leather products, computer equipment, and electronics. What differentiates B2S is that it provides multiple channels, such as the modern store in Thu Duc district, a professional B2B sales team, and online shopping. It also has a co-working space on its 4th floor for startups, offering a creativity corner designed for young people. Domestic stationery enterprises are now actively investing in the production of stationery products to expand in Vietnam’s market of more than 90 million people. B2S’s opening its first stationery center promises to open up opportunities for domestic stationery businesses to grow stronger in the future and will support startups in line with the ongoing fourth industrial revolution. Vietnam’s stationery market is valued at about $175 million annually and has seen average growth of 10 per cent per year since 2014, according to Viet Capital Securities. This has been helped by a large and young population as well as increasing demand for educational services and products, with consumers more inclined to pay for quality. Ho Chi Minh City already has more than 1,500 family-owned stationery stores. Some of the larger ones are incorporated into bookstores. Based on the 60 stores in its home market, the Thai model offers a broader range as well as innovations like online service and free delivery. The Central Group entered Vietnam in 2011 and has seen rapid expansion through acquisitions, franchises and joint ventures. It paid $1.14 billion last year to France’s Casino Group to acquire the Big C supermarket business in the country and plans to double the Big C chain from 34 outlets and to develop 13 larger commercial complexes by 2021. Central also acquired 49 per cent of the electronics retailer Nguyen Kim, along with e-commerce platform Zalora Vietnam. VNSTEEL subsidiaries make profits Many subsidiaries of the Vietnam Steel Corporation (VNSTEEL) have recorded profits despite various difficulties in the first half of 2017. The information was released at a meeting to review the firm’s business performance in the first six months on 2017 in Hanoi on July 6. Deputy General Director of VNSTEEL Nguyen Trong Khoi said three companies posted pre-tax profits equal or higher than the same period last year, including Thu Duc Steel Joint Stock Company (nearly 30 billion VND, or 1.3 million USD), the Ho Chi Minh City Metal Joint Stock Company (more than 35 billion VND, or 1.5 million USD) and the Foreign Trade Forwarding and Transportation Joint Stock Company Vinatrans (over 17 billion VND, or 747,800 USD). Profits were also recorded in many other affiliates but lower than in 2016, such as the Southern Steel Company (over 85.5 billion VND or 3.8 million USD) and the Phu My Flat Steel Company (over 11 billion VND or 483,900 USD), whose profits respectively represented 44.6 percent and 23.9 percent of last year’s six-month earnings. Khoi said since the beginning of 2017, VNSTEEL has enhanced connectivity among its subsidiaries in the production and sale of steel products. However, he also admitted shortcomings in operations and lingering problems in land and property management. He noted in the next six months, the corporation will continue boosting its affiliates’ coordination, update information about the domestic and foreign steel markets and make long-term forecasts of the market to support project implementation and market expansion. HFIC to become investor of HCM financial centre      HCM City’s People’s Committee has proposed the Prime Minister to approve the selection of State-owned HCM City Financial Investment Company (HFIC) as investor of the municipal financial centre, enternews.vn, a news site of Viet Nam Chamber of Commerce and Industry, reported. The centre will cover two land lots of 1-7 and 1-11 in the Thu Thiem New Urban Area’s functional zone No 1 in District 2. The financial centre is expected to attract investment from financial institutions, banks and investment funds nationwide, as well as private, domestic and foreign economic groups. The operation of the financial and credit institutions in the centre will draw capital from foreign countries into the Vietnamese market in general and HCM City in particular, creating a premise for the Thu Thiem New Urban Area to become the financial and economic hub of HCM City, the region and whole country. In addition, the financial centre will also be a key financial instrument of the city in mobilising medium and long-term capital at home and abroad to invest and develop socio-economic infrastructure, especially in the period when the city’s capital source for investment is facing difficulties. The project is expected to include a 20 to 50-storey building with total floor area of some 220,000sq.m and total investment of VND4.8 trillion (US$215 million). The project construction period is scheduled to last from 2018 to 2021. PwC to advise Vietinbank Insurance on IT VietinBank Insurance (VBI) and PwC Vietnam signed an agreement on strategic IT consultancy on July 5. PwC will deploy a consultancy package that includes modelling future IT systems, building a development plan and implementing advanced IT solutions in the next five years, and evaluating the level of IT security at VBI. Through the project, PwC will assist VBI in developing a proper and feasible IT advancement plan that meets the insurer’s future operational, strategic, and development needs. VBI is currently one of only a few insurers to develop electronic certificates and invoices for customers. When customers take on a VBI insurance policy, rather than waiting for paper contracts and invoices to be delivered by post, they can receive electronic contracts and invoices immediately through their personal email address within 30 minutes. VBI has gone through a significant transformation in the past three years, implementing key strategic plans with a view to making a breakthrough and becoming the leading retailer of general insurance in Vietnam. In the process of finding a strategic investor, VBI has proposed a detailed strategic development plan for the 2017-2020 period. This includes accelerating growth in the retail market, targeting IT-based small and medium-sized enterprises (SMEs), and approaching international standards. “We appreciate VBI’s initiative to invest in IT and data security systems to improve business operations and customer services,” said Ms. Dinh Thi Quynh Van, General Director of PwC Vietnam said. “This is particularly significant considering that emerging Fintech companies are taking up a bigger market share in the finance, banking, and insurance industries.” She added that with their in-depth knowledge of technology in finance and insurance, as well as experience from similar projects, PwC is committed to providing VBI with comprehensive consultancy services, from strategic planning to implementation, in order to deliver sustainable value to customers. The standardization of insurance management and IT-based customer services not only helps optimize productivity and minimize risks in internal operations but also adds value to customers when buying insurance. Moreover, it contributes to improving standards for insurance operations in the market, creating a transparent environment, fair competition, and sustainable development. Binh Quoi-Thanh Da urban area project In related information, the People’s Committee of HCM City has also asked the Prime Minister to approve the appointment of property developer Bitexco Group as investor of the Binh Quoi-Thanh Da urban area project in Binh Thanh District. The project, located right at the heart of the city, has been delayed by decades. According to the Doi Song va Phap Luat (Life and Law) website, in 1992, the project was approved by the municipal People’s Committee. In 2004, Saigon Construction Corporation was appointed to be the investor and constructor of the project. However, due to the lack of capacity, this unit failed to implement the project and by 2010, the People’s Committee had revoked its decision. In 2016, Bitexco and Emaar Properties PJSC, based in the United Arab Emirates, were approved to execute the project. However, the project had still been postponded as Emaar Properties PJSC announced to stop their work on the project, the website said. The project was expected to become a modern ecological urban area, covering 426.93ha. Total investment is some VND30.7 trillion. The first phase of the project construction (2016-2020) will focus on completing compensation for people whose land has been broken for ground clearance and investment in the construction of major technical works. In phase 2 (2021-2025), investors will invest in technical infrastructure and functional areas of the project. Construction of the remaining areas will be completed by 2030.  Shrimp exporters told to improve methods      If the shrimp industry does not change it will be unable to export and will also need to be rescued like its pork, dragon fruit and watermelon counterparts, a seminar on establishing a disease-free shrimp production chain for export heard in HCM City on July 5. Pham Van Dong, head of the Department of Animal Health, said earnings from shrimp exports have increased significantly in recent years, but the industry faces many challenges in breeding due to the impact of climate changes and diseases. Companies have also faced difficulties in exports due to the increasingly strict technical barriers related to diseases and antibiotic residues put up by importing countries, he said. Recently six markets -- Australia, South Korea, Saudi Arabia, China, Brazil, and Mexico -- have said they would buy only products with disease-free certification in accordance with World Organisation for Animal Health regulations or recognised as free of diseases by their authorised agencies. These markets account for 25 per cent of the country’s total shrimp exports, or equivalent to US$800 million a year. Truong Dinh Hoe, general secretary of the Viet Nam Association of Seafood Exporters and Producers, said shrimp processors and exporters are deeply worried about the disease-free certification requirement. It is hard for them to meet the demand in a short time, he said.    With the small average scale of production, if the country does not have comprehensive national measures, exporters would face difficulties in exporting in future. Dang Quoc Tuan, deputy general director of Viet Nam-Australia Seafood Corporation (Viet-Uc Seafood), said the survival rate of shrimp in Viet Nam is very low at just 25-30 per cent due to the low professional level of farmers. Vietnamese shrimp mainly competes on price, and the new regulations mean they cannot be exported whatever their price, he said. The industry would therefore be forced to change, he said.   Nguyen Van Long, head of the department’s seafood veterinary division, said the department has a programme to enable firms to meet regulations set by importing countries since 2014, but enterprises remain unmindful of this. Only Viet-Uc Seafood and Huy Long An Company have participated in the programme to develop disease-free shrimp breeding facilities. Viet-Uc Seafood has basically met the criteria to be recognised by animal health department. Farmers and businesses in the country are generally not aware of the importance of building disease-free shrimp breeding facilities. But if the industry persists with its current production methods, it would need to be rescued sooner rather than later. City’s H1 beverage production drops      Growth in beverage sales in HCM City in the first half of the year slowed down to 2 per cent, according to the Department of Industry and Trade. The department blamed the slowdown to prolonged cold weather and a series of downpours this year. Demand for alcoholic drinks took a hit after consumption tax was hiked to 60 per cent last January as part of the Government’s efforts to curb consumption of beer and alcohol. Besides, more and more consumers are becoming health-conscious and stopping consumption of sugary soft drinks. This has only been accelerated by health-related scams: Authorities found high lead content in a drink while a consumer found a dead fly in another. With a population of 90 million people, food and beverages is Viet Nam’s second most attractive sector after retail in the eyes of foreign investors. HCM City has a total of 2,042 food and beverage producers with 300 new companies starting up every year. According to a Government report, in 2011–17, the number of companies in the sector grew by 18.8 per cent a year. According to the Viet Nam Industry Research and Consultant, beverage producers can rely on domestic sources of raw materials, which is seen as a huge advantage. Thanks to this, a great variety of drinks have been introduced in the market, with bottled green tea, water and soft drinks accounting for the largest share. Though exports of juices and other fruit-based drinks, mainly to Asian countries, have been on the rise in recent years, the domestic market is still the main one for beverage producers. Despite the slowdown in the first half, experts are confident sales will gain momentum in the second half considering the demand for milk-based drinks and low-sugar and eco-friendly products.  HN eyes industrial zone investors      Ha Noi plans to attract 15-20 new projects with expected total investment of US$250-300 million in industrial zones and clusters in the capital city this year. Sectors to be prioritised include part supplies, electronics and mechanics industries. The Management Board of Industrial and Processing Zones said the focus would be on speeding up land clearance and improving infrastructure to make Ha Noi an attractive destination for large investors. One of the difficulties was the limited available land in the capital city, according to the management board. There were 13ha of vacant land in Quang Minh Industrial Zone, 25ha in Phu Nghia Industrial Zone and 36ha in south Ha Noi available for investment this year. Le Hong Thang, director of the municipal Department of Industry and Trade, said attracting investment in the capital city’s industrial clusters continued to be a struggle due to high investment costs, even as investors in clusters were mainly of a smaller scale. According to Pham Khac Tuan, head of the management board, municipal authorities had pledged to hasten administrative reform and improve investment climate to attract capital for industrial zones and clusters. The capital city would also focus on developing the labour force in localities around and near the industrial zones and clusters as well as creating favourable conditions to boost the part supplies industry through business-to-bank and business-to-business connecting programmes. The city would give priority to high-tech, environmentally-friendly investment and products of high added value and those that could compete with others in the market. According to the Department of Industry and Trade, the city has developed or is in the process of developing 19 industrial zones with total area of nearly 525ha, together with 110 industrial clusters, totaling 3,000ha. The department proposed another nine industrial clusters be developed by 2020 and 18 more by 2030, noting that completing the infrastructure system was of great importance. In addition, the department proposed to exempt land use fees in the first stage for investors as well as provide support to investors in treating waste at industrial zones and clusters. In the first five months of this year, industrial zones and clusters in the capital city attracted seven new projects, worth more than US$44 million in registered capital, and expanded six existing projects, worth $18.5 million. To date, Ha Noi has attracted 629 projects in industrial zones and clusters with total registered capital of $5.9 billion. More than half of the projects were foreign-invested, worth $5.34 billion.  Garment sector export growth still unsustainable      Viet Nam’s garment and textile revenue increased for the first half of this year but experts said the growth has not yet become sustainable. The national garment and textiles export value in the first half of the year grew 11.3 per cent year-on-year to US$14.58 billion, higher than the growth rate of 6.1 per cent year-on-year in the same period of 2016. Le Tien Truong, deputy general director of the Viet Nam Garment and Textile Group (Vinatex), said the results by the garment sector were a praiseworthy effort in the context of the unstable global economy. The demand for textile products from key importers like the United States (US), the European Union (EU) and Japan tapered off in the first six months of the year. However, exports to those markets experienced robust achievements, Truong said. He said that the country earned $6 billion from the exports to the US, surging nearly 9 per cent; $2.3 billion to the EU, up 8 per cent; and $1.5 billion to Japan, up 12 per cent. Viet Nam outstripped its competitors in garment exports during the period. According to the Trade Map, China experienced a decline of more than 5 per cent year-on-year, while Bangladesh saw a drop of 3.5 per cent, and Indonesia was down 5 per cent. However, the trade protectionism policy of US President Donald Trump’s administration and interest rate adjustment from the US Federal Reserve will threaten sustainable export growth. There is a high possibility that Viet Nam’s competitors will further devalue domestic currencies to support exports as they did in 2016, Truong said. As the biggest hurdle for Vietnamese garments is foreign competitors, especially China with large scale production and low costs, Vietnamese enterprises need to join the global supply chain with fastidious requirements of quality, prices and time of good delivery. Local enterprises’ poor orientations have made them fail to meet the industry’s long-term development. In addition, unsound competition between domestic and foreign invested businesses has been on the cards. Moreover, the auxiliary industry for the textile and garment sector has not yet developed. Low capacity in the stages of weaving and dyeing have led to the local demand for textile fabric being unsatisfied. The domestic garment industry must import 70 per cent of fabric, causing unbalanced development. Meanwhile, Vietnamese garment enterprises are mostly small- and medium-sized ones with limited ability in accessing domestic and foreign markets. If they do not link with some large enterprises, these firms will find it difficult to survive and never have the ability to compete internationally. Local garment enterprises have also faced many challenges, including the shortage of high-quality human resources, limitations in product development, capital access, marketing and foreign languages, and high input costs. The garment sector recommended to the relevant authorities that they support training programmes in original design manufacturer (ODM) business and information and technology while creating favourable conditions for enterprises to have access to soft loans and preventing smuggled goods. HCM City expo promotes Vietnamese products      Around 130 companies are showcasing their products at the Ton Vinh Hang Viet (Honouring Vietnamese goods) fair that opened in HCM City on July 5. The expo has 330 booths displaying processed foods, garments, footwear, household utensils, plastic products, wooden products, handicrafts, cosmetics, electronic and electrical products, and other industrial and consumer products, Nguyen Phuoc Hung, deputy chairman of the HCM City Union of Business Associations (HUBA), said. The fifth annual fair has attracted many prestigious brands like Vissan, Duy Tan Plastic, Maseco, Van Thanh Mattress, SJC, and DOJI, trade promotion centres from many provinces and cities like Ninh Thuan, Hau Giang and Ben Tre and business associations of districts 11, 8 and Tan Phu. For the first time this year leading retailers like Saigon Co.op, Satra, and Lotte Mart are also taking part. Organised by HUBA in collaboration with Dong Nam Advertising and Commercial Promotion Joint Stock Company, the fair seeks to help businesses market their products and look for partners, Hung said. Speaking at the opening ceremony, Nguyen Phuong Dong, deputy director of the city Department of Industry and Trade, said the fair offers local companies a good opportunity to study consumers’ tastes, access the market and strengthen the “Vietnamese give priority to use Vietnamese goods” campaign. At the ceremony, “Typical Products” awards were given away to 21 companies for innovation in designing and producing 32 new high-quality products. Several conferences are scheduled to be held on the sidelines of the fair. The five-day expo is on at the Phu Tho Sports Stadium  Rong Viet reach VND71 billion in profit in first half of year      Rong Viet Securities Company (VDS) has had a pre-tax profit of VND71 billion (US$3.1 million) in the first half of the year, jumping by 163 per cent over the same period last year. The pre-tax profit in the first quarter was VND30 billion ($1.5 million), surging to VND40.9 ($2 million) billion in the second quarter. In the first half of 2017, VDS had revenue of over VND166 billion ($7.2 million), up by 78 per cent year-on-year. Most of the revenue was earned by brokers’ services, the company said. VDS reported that with the result it had fulfilled 54 per cent of its annual plan in revenue, including 71 per cent of targeted profit. The HCM City Stock Exchange (HoSE) recently accepted to list 70 million shares of VDS. It is expected that the first trading day will be July 19. Previously, VDS shares were traded on the Ha Noi Stock Exchange. The company explained that it wanted to list on HoSE to increase the equity of the shares as well as to mobilize more capital from different sources. VDS shares will end trading on the Ha Noi Stock Exchange next Monday (July 10). The company targets increasing capital from VND700 billion to VNĐ910 billion this year. Emirates commences Hanoi-Dubai daily flights Emirates airlines officially commenced daily direct flights from Hanoi to Dubai on July 2, providing Vietnamese travellers more seamless connections to its global network of over 150 destinations worldwide. Emirates airlines officially commenced daily direct flights from Hanoi to Dubai on July 2, providing Vietnamese travellers more seamless connections to its global network of over 150 destinations worldwide. — Photo Emirate. The first direct flight EK394 from Dubai to Hanoi arrived at Noi Bai International Airport at 1:05pm local time on July 1, 2017. The new direct service is operated with a two-class configured Boeing 777-300ER which offers 42 seats in Business Class, 386 seats in Economy Class and up to 20 tonnes of capacity for cargo, with generous free baggage allowance (up to 35kg in Economy Class and 40kg in Business Class). Outbound, flight EK395 departs from Hanoi’s Noi Bai International Airport at 1:30am, arriving at Dubai International Airport at 5:05am. Inbound, flight EK394 departs Dubai at 3:30am arrives in Hanoi at 1:05pm. Timings of the service have been scheduled to allow for seamless connections to many European and GCC routes, via a convenient stopover in Dubai. This new direct service will help enhance connectivity for Hanoi and its neighbouring areas, providing faster connections, additional opportunities for inbound tourism and regional products. Recently, Emirates was recognised as the Best Airline in the World in the inaugural TripAdvisor Travelers’ Choice® Awards for Airlines. In addition, the airline was the biggest winner with four other awards including Best Major Airline - Middle East and Africa, Best Economy Class, Best First Class and World’s Best Airlines - Top 10. HCM City beverage production slips in H1 Growth in beverage sales in HCM City in the first half of the year slowed down to 2 per cent, according to the Department of Industry and Trade. The department blamed the slowdown to prolonged cold weather and a series of downpours this year. Demand for alcoholic drinks took a hit after consumption tax was hiked to 60 per cent last January as part of the Government’s efforts to curb consumption of beer and alcohol. Besides, more and more consumers are becoming health-conscious and stopping consumption of sugary soft drinks. This has only been accelerated by health-related scams: Authorities found high lead content in a drink while a consumer found a dead fly in another. With a population of 90 million people, food and beverages is Việt Nam’s second most attractive sector after retail in the eyes of foreign investors. HCM City has a total of 2,042 food and beverage producers with 300 new companies starting up every year. According to a Government report, in 2011–17, the number of companies in the sector grew by 18.8 per cent a year. According to the Việt Nam Industry Research and Consultant, beverage producers can rely on domestic sources of raw materials, which is seen as a huge advantage. Thanks to this, a great variety of drinks have been introduced in the market, with bottled green tea, water and soft drinks accounting for the largest share. Though exports of juices and other fruit-based drinks, mainly to Asian countries, have been on the rise in recent years, the domestic market is still the main one for beverage producers. Despite the slowdown in the first half, experts are confident sales will gain momentum in the second half considering the demand for milk-based drinks and low-sugar and eco-friendly products. IMF encourages Vietnam to expand scope of reforms The Executive Board of the International Monetary Fund (IMF) has concluded its Article IV Consultation with Vietnam. Vietnam’s dynamic economy continues to perform well, the IMF reports, aided by sound economic fundamentals. Growth moderated to 6.2 per cent in 2016, reflecting the impact of a drought, land salinization on agriculture, and lower oil production.  Weaknesses in the oil sector continued in the first quarter of 2017 but underlying growth momentum remains robust, underpinned by strong manufacturing activity and foreign direct investment (FDI), robust domestic demand, and a rebound in agricultural production.  Inflation rose to around 5 per cent in early 2017 due to increases in administered prices for healthcare and education. The current account surplus rebounded in 2016 to 4.1 per cent of GDP and gross international reserves rose substantially. Authorities are developing a broad reform agenda, keenly aware of the limited fiscal space, the need to upgrade the growth model at home, and rising risks of economic fragmentation abroad.  After years of high fiscal deficits and rising public debt, authorities are planning an appropriate amount of fiscal consolidation starting this year, although concrete measures have not yet been fully identified.  Monetary policy was accommodative over most of last year against the backdrop of low core inflation, and the exchange rate has depreciated slightly since the fall of 2016.  Macroprudential policies were tightened, while credit growth was robust. Bank reforms have progressed, but nonperforming loan (NPL) resolution, bank recapitalization, and legal reforms to strengthen market discipline have been sluggish. Good progress has been made on the legal framework for State-owned enterprise (SOE) reforms, but implementation has been slow. Authorities are planning to limit the role of the State in the economy, reduce State ownership in enterprises, and encourage private sector-led sustainable growth. For 2017, growth is projected at 6.3 per cent and headline inflation is projected to stabilize at around 5 per cent as administered prices continue to be adjusted.  The current account surplus is expected to decline somewhat, reflecting stronger imports. While the near-term outlook is positive, there are downside risks, including from high public debt, slow NPL resolution, tighter global financial conditions, shocks to external demand, and rising protectionism and the failure of the Trans Pacific Partnership.  On the upside, successful implementation of authorities’ ambitious reform agenda could raise growth potential and increase resilience to shocks. Fast implementation of the Vietnam-EU and other bilateral trade agreements would fuel exports and FDI. The IMF’s Executive Directors commended Vietnamese authorities for achieving robust growth with low inflation, pushing ahead with important reforms to promote private sector-led growth, strengthening public finances and tackling legacy issues in the financial sector while making progress on poverty alleviation.  Directors noted that risks remain from the slow pace of banking sector reform, continued rapid credit growth, and limited fiscal and external buffers.  Looking ahead, they encouraged authorities to expand the scope of reforms to safeguard hard-won macroeconomic stability, raise growth potential, and upgrade the growth model to enhance sustainability and productivity. VN stocks rise slightly due to profit-taking      Shares rose slightly on both local markets on Friday morning as investors increased selling to make profits from recent gains. The benchmark VN Index on the HCM Stock Exchange was up 0.08 per cent to end at 783.31 points. It gained total 0.9 per cent in the previous two sessions. The HNX Index on the Ha Noi Stock Exchange inched up 0.07 per cent to close at 102.68 points. The northern market index underwent a seven-session rally of 4.7 per cent. More than 196 million shares were traded on both exchanges, worth nearly VND3 trillion (US$132.8 million). Shares of insurance firms and banks lifted the markets on Friday morning after both local indices hit fresh highs recently, allowing investors to offload their portfolios to earn short-term profits. The insurance sector was boosted by Bao Viet Holdings (BVH) and PVI Holdings (PVI), which gained 0.9 per cent and 4.8 per cent, respectively. Five of the nine listed bank stocks advanced, with Eximbank (EIB) and Sai Gon-Ha Noi Bank (SHB) being the strongest gainers. Investors’ profit-taking hit stocks that had earlier made strong gains, such as brokerages and food and beverage producers. Among those stocks were HCM City Securities (HCM), Sai Gon Securities (SSI), Sai Gon-Ha Noi Securities (SHS) and dairy producer Vinamilk (VNM). The afternoon session starts at 1pm.  Vietjet inks strategic aircraft financing agreement with GOAL Vietjet President  Nguyen Thi Phuong Thao, Vietjet Vice President Dinh Viet Phuong, KGAL CEO Gert Waltenbauer and GOAL Managing Director Jochen Baltes represented both parties in signing the contract as witnessed by Vietnam’s Prime Minister Nguyen Xuan Phuc and high-ranking dignitaries from Vietnam and Germany. The acquisition of the four aircraft is part of the A320 family aircraft contract signed earlier between Vietjet and European aircraft manufacturer Airbus. Vietjet will receive the four aircraft within 2017 to meet expansion plans for the airline’s domestic and international flight network. Vietjet also recently signed a similar deal with Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG) to finance Vietjet’s acquisition of three brand new A321 aircraft, worth US$348 million, according to the manufacturer’s listed price. Earlier in June at the Paris Airshow 2017 in France, Vietjet also signed a deal with Safran for its SFCO2® fuel efficiency solution. The SFCO2 service contract covers the entire fleet of the Ho Chi Minh City-based airline, which will enhance Vietjet’s operational efficiency by reducing fuel consumption and CO2 emissions. Meanwhile, in May in the U.S., Vietjet also signed a series of deals worth a total of US$4.7 billion to secure maintenance support for engines, components and other technical services, including auxiliary power unit (APU) supply and APU technical maintenance and aircraft financing (and/or purchasing). VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET