BUSINESS IN BRIEF 17/9 Online Friday starts Sept. 29 and has 24 hours of deals   It's confirmed: Online Friday will again host a 24 hour sales event on Sept. 29—and the 2017 edition of this autumn major sales event promises to be bigger than ever, says the Ministry of Industry and Trade. The Ministry says more than 100,000 new deals will be posted as frequently as every five minutes throughout the event, and sales will take place throughout the Southeast Asian country. The Ministry is keeping a tight lip as to the details regarding specific kinds of deals that will be available during this year's event— but consumers can keep up to date as it unfolds at http://info.onlinefriday.vn/. To drum up even more interest, the Ministry says name brand companies the likes of Nguyen Kim, Sunhouse, MediaMart, Adayroi, Fahasa, Giovanni, FPT Shop and Sendo will be offering special deals that consumers won’t want to miss. In Vietnam, Facebook is a marketplace for cheap fakes and endangered wildlife parts Copycats, ivory and tiger paws are just some of the things you can buy on the country’s most popular social network. Xuan is pretty honest with her customers, but as a salesperson, she has to sugarcoat it a bit. “These are super fakes,” she said in a Facebook post advertising bags carrying various luxury brands from Hermes to Louis Vuitton and Prada. “They are class 1 copycats and thus the material and the sewing are of very high quality,” the post said. Xuan has been trading these bags for six years and is a supplier for many shops across Vietnam. She said Facebook has become an important tool for her to connect with partners and customers, thereby increasing her earnings. A recent survey by Vietnam E-Commerce Association found social networks are the most used advertisement channel and one of the most effective. In Vietnam, Facebook is the most popular social network with around 64 million users, accounting for 3 percent of global Facebookers. But these places are also where trade authorities have little control. Tax evasion aside, there are also big problems with legitimacy. Facebook in Vietnam is where a Vertu-branded phone is available for just a couple hundred dollars, and also where you can find rampant wildlife trade activities. Ivory, pangolin scales and tiger skin are advertised as if the country has no protection for the endandgered animals. A Facebook user named Tuan advertises tiger parts on different pages, saying that “I only provide fine and unique products, and I can accommodate large demands as well.” Although the act of offering to sell fake and banned products is subject to criminal punishment, there have been few reports of these retailers being arrested. In April, Facebook pledged to cooperate with the Vietnamese government to block “bad” and “toxic” content on the site, to help build a safe and healthy internet environment in Vietnam. It's not clear what specific intervention the partnership would bring to protect users in Vietnam, against illegal trade for example. SME development in Vietnam Small and medium-sized enterprises play a crucial role in Vietnam’s economic growth. The ongoing 2017 APEC Small and Medium Enterprises Ministering Meeting in Ho Chi Minh City creates an opportunity for Vietnamese SMEs to share experience with their partners in the region and for the Vietnamese government to fine-tune SME support policies. Small and medium-sized enterprises comprise 98% of Vietnam’s total enterprises, contribute 40% of the GDP and 30% of the state budget, and generate half of all jobs. But SMEs have difficulties modernizing their equipment and facilities, finding new markets, and distributing their products. At the 2017 APEC Small and Medium Enterprises’ Meeting, managers, economies and speakers from APEC member economies urged SMEs to work out a strategic direction for their development path.  Tran Van Phat, the CEO of the Robot Company said“Vietnamese enterprises need to participate more in economic forums. We need to prepare for the intrusion of foreign economies and expand economic relations to seize opportunities to enhance our growth.” Many countries including Vietnam are urging their SMEs to participate in global logistics supply chains because this sector is of great importance to international trade.  Tran Chi Dung, Director of the Logistics Knowledge Company, says the logistics industry creates learning opportunities for Vietnamese SMEs who are participating in global value chains. Vietnam has launched a National Action Program on Logistics Development to help improve the competitiveness and growth of enterprises and the economy.  Mr. Dung said “We need to help enterprises understand and approach the program. The State needs to adopt new policies and allocate budgets to carry out promotion activities to attract enterprises.” The Law on Supporting Small and Medium Enterprises which will take effect next year realizes Vietnam’s policies on promoting the private sector and creating momentum for small and medium enterprises.  At a recent conference on SME development, Prime Minister Nguyen Xuan Phuc pointed out the barriers to enterprise development.  “There remain many obstacles to Vietnamese penetrating the market. Regulations for enterprises in high-tech, science, technology, and support industries have not been fully enforced. The government welcomes your contributions to developing mechanisms and policies to ensure fairness for both public and private sectors in line with international norms,” PM Phuc noted.  The Prime Minister also mentioned the difficulties SMEs have in accessing credit, information, and market support and promised to create a fair, friendly environment to promote investment and ensure regulation enforcement.  He said “The government will review regulations and take steps to reduce costs in tax procedures, customs, BOT, logistics, and public services. These costs are burdens on enterprises.” In the near future, the Vietnamese government intends to improve the competitiveness of Vietnamese SMEs by optimizing advances of the 4th industrial revolution, strengthening the digital infrastructure, and developing high-end human resources. Vietnam, EU work to ratify free trade deal The EU-Vietnam Free Trade Agreement (EVFTA) is under final legal review to be ratified early next year. Both sides are gearing up to settle differences to effectuate the deal whose negotiations concluded in December, 2015. Officials and business leaders from Vietnam and the EU at a workshop on bilateral free trade agreement in Brussels, Belgium, on September 7, 2017. Vietnam and the European Union (EU) signed a statement on the official conclusion of their free trade talks in late 2015.  Their Framework Agreement on Comprehensive Partnership and Cooperation has already taken effect. Since the conclusion of EU-Vietnam FTA, the business climate in Vietnam has improved significantly with the reform of investment law and simplified administrative procedures.  Vietnam has amended its Labor Code to match its FTA commitments. The amendments consulted by international organizations, businesses, and independent experts will be submitted to the National Assembly for approval next year.   Vietnam is set to ratify 3 conventions of the International Labor Organization (ILO) on eliminating coerced labor and on collective bargaining agreements.  Minister of Labor, Invalids, and Social Affairs Dao Ngoc Dung said, “Vietnam gives top priority to completing legal ground towards ratifying the free trade agreement with the EU. Vietnam will work closely with EU and flexibly settle arising problems. As a member of the ILO, Vietnam pledges to strictly and effectively implement its commitments. Vietnam has ratified 5 out of the 8 core ILO conventions and plans to ratify the remaining 3 conventions.” EU chief negotiator Mauro Petriccione said both sides have achieved major progress and that it’s now important to reach the finish line smoothly. He said, “We are trying to make the EU-Vietnam Free Trade Agreement come into effect next year at the earliest. This is a high-quality deal and one of the pillars of Europe’s trade policy for Asia. We are in the process of preparing legal dossiers with Vietnam and translating them into European languages for the consideration of the European Council and Parliament. We are doing our utmost to have our arguments heard and the process approved as soon as possible.” Jean Jacques Bouflet, a member of the European Chamber of Commerce (Eurocham)’s Executive Committee in Vietnam said Eurocham supports Vietnam’s goodwill in modernizing administrative procedures to create favorable conditions for investors.  He added that once coming into force, the EU-Vietnam FTA will become an effective tool to protect businesses’ operation in each other’s country.  Bernd Lange, Chairman of the European Parliament’s Committee on International Trade, said, “Thanks a lot for this timeline as the first time we get to send. Now the new timeline is brought back to my colleagues. I'm convinced that we will have a continuous dialogue. And thanks a lot also for the explanation of outer content of the provision of Labor Code. Let's stay in contact and hopefully we'll get a successful solution so that our process is not harmed.” Nguyen Hoang Long, Director of the Department of Foreign Affairs of Localities at the Ministry of Foreign Affairs, said, “We have worked with the European Parliament and Commissioners in charge of cooperation with Vietnam and they have reiterated their support for the deal. They are convinced by the support from European firms and citizens who are living, working, and doing successful business in Vietnam. I hope that with stronger government activities and exchanges, the EU-Vietnam FTA will soon be ratified and implemented, living up to both sides’ expectations.” Private enterprises a major employer Private enterprises in Vietnam employ nearly 14 million people, accounting for 64 per cent of salaried workers and more than 35 per cent of employed workers, according to figures from the business community released at a seminar entitled “The Development Trends of Labor in Types of Enterprises in Vietnam” held on September 14 in Hanoi. Scientists, managers, and trade union experts shared research results in four areas: the development of types of enterprises, labor and wages in types of enterprises, the development of industrial zones and housing for workers, and forecasts in labor supply and demand in types of enterprises to 2030. Mr. Tran Van Thuat, Deputy President of the Vietnam General Confederation of Labor (VGCL), told the seminar that the importance of private enterprise development in the country is increasingly noted by the government, to constantly improve economic competitiveness, create more jobs, and increase incomes. According to research from the Institute for Workers and Trade Unions, based on 2,550 questionnaires completed by workers at 64 enterprises in 14 cities and provinces during March and April, actual wages in the first quarter increased 8.1 per cent, higher than the increase in the minimum wage, which averaged 7.3 per cent. The research also showed that 22.7 per cent are satisfied with their wage, 52.4 per cent are neutral, and 24.9 per cent are not satisfied. “For employees, increases to the minimum wage did not meet their expectations,” said Mr. Vu Quang Tho, Head of the Institute for Workers and Trade Unions. Dr. Tran Thi Minh Phuong from the University of Labor and Social Affairs (ULSA), said appropriate wage and incentive policies at private enterprises would promote labor productivity. “Low pay that is not based on productivity can lead to conflict between employees and employers, affecting the interests of parties within the economy,” she said. The Institute proposed that the government direct the implementation of economic development policies, create more jobs, and overcome inadequacies between training and employment. Ms. Phuong said that adjustments to wage policy by the government and enterprises must consider the interests of employees. “This would motivate employees, contributing to productivity growth,” she said. Traveloka signs MoUs with Da Nang and Hue Traveloka, one of the leading online tourism platforms in Southeast Asia, announced it will cooperate with the Da Nang Tourism Promotion Center and the Thua Thien Hue Department of Tourism under memoranda of understanding (MoU) signed on September 13 and 14. The two local authorities will act as a supporting media sponsor for all programs from Traveloka on every promotion channel and advise it on how to promote travel destinations as well as introduce the local travel community to join in promotional videos about the city and province. Traveloka, meanwhile, will act to enhance the reputation and promote the local image of the city and province through online marketing activities. The two MoUs will help push the local travel industry to new heights, sharing sources of travel information and suggestions on top locations from Traveloka Vietnam, and enhance the two local travel industries. The moves also express the interest and needs of Traveloka Vietnam in cooperating with local cities and provinces that have great potential in tourism, working together in order to bring the best services to customers. “Through the agreements with Da Nang and Thua Thien Hue, Traveloka Vietnam agrees to increase links between promotional programs for accommodation in Da Nang and Hue,” Ms. Le Thi Thanh Van, Traveloka Vietnam Country Manager, told the signing ceremonies. She added that the good relationships with the two tourism authorities will help local businesses to thrive, increasing the number of tourists visiting Da Nang and Thua Thien Hue and booking rates on the Traveloka platform. Praised as one of the most desirable cities in Vietnam to live, Da Nang is also a major tourist destination. According to a report from the Da Nang Department of Tourism, in the first half of this year the total number of visitors was estimated at 3.3 million, an increase of 33.2 per cent year-on-year and representing 51.3 per cent of the annual target. Travel services in Thua Thien Hue have improved in terms of quality. It welcomed 1.7 million visitors in the first half of the year, up 1.9 per cent year-on-year, with revenue estimated at $76.3 million. Traveloka Vietnam is a leading flight and hotel booking platform in Southeast Asia. It is currently working with more than 100 airlines, providing information on more than 200,000 routes across Asia-Pacific and Europe, and 300,000 hotels in 28 countries, to deliver customers the best deals. It provides more than 40 payment options for customers in Indonesia, Thailand, Vietnam, Malaysia, Singapore and the Philippines, with 24/7 assistance from local customer service centers. Its mobile app has been downloaded more than 20 million times, making it the most popular travel booking app in the region. Green buildings key in addressing climate change Ho Chi Minh City is considered Vietnam’s key economic area and its most important real estate market, which is also the field predicted to be most affected by climate change in the country. As a result, green buildings have been mooted as an essential and safe solution for the city’s infrastructure development orientation in particular and for Vietnam in general, the “Green Buildings Development in the Context of Climate Change in Vietnam” workshop held in Ho Chi Minh City a few days ago heard. The workshop was part of the implementation of the five-year operation plan (2017-2022) for the “Sustainable Green Buildings Development Program”, with the aim of attracting businesses in the real estate sector to develop green buildings nationwide and contribute to establishing a foundation for a green real estate market in the country. In his opening remarks, Mr. Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association (VNREA), said “according to the latest United Nation’s report, 90 per cent of climate change is caused by humans and the remainder from natural causes, so our actions will play a decisive role in the fight against climate change.” As a result, “this seminar is an effort to support sound policies from the government on climate change response, green growth, and green building development, together with the desire to promote green building development and raise public awareness about the benefits of green buildings,” he added. VNREA has set up a Program Coordination Committee with 23 members, including managers, scientists, experts on green buildings, and leaders from major real estate firms. It has also set up an action plan for the next five years with the aim of contributing to the foundation of a green property market in Vietnam. At its launch in late May, the program received enthusiastic support from and the participation of the real estate community, which featured commitments from dozens of leading developers in Vietnam. At the same time, it received a pledge of more than $1 million and other technical support commitments. The Green Building Development in the Context of Climate Change in Vietnam workshop was an opportunity to introduce the program and broad communications on “green” criteria to promote the responsibility of people and investors regarding the environment and sustainable development towards a “green” life. At the same time, the program calls for investors to send proposals to the government and relevant agencies to set out criteria and incentives for developers to build green buildings. Fruit and vegetable imports push Vietnam in deeper trade deficit with Thailand While Vietnam’s trade deficit with major economies is the result of large imports of inputs for production, the country’s trade gap with Thailand comes mainly from importing fruit and vegetables, many of which Vietnam can produce. According to the Ministry of Industry and Trade, Vietnam posted a trade deficit of US$2.13 billion in the first eight months of 2017, as a result of rising imports of materials and machinery for production from China, the Republic of Korea and the United States. However, part of the trade deficit was contributed to by the import of fruit and vegetables that Vietnam could produce at home. Take Thailand for example. For years, Vietnam has always run a trade deficit with its largest trading partner in ASEAN. In the eight months through August, Vietnam exported US$3.06 billion worth of goods to Thailand while importing US$6.5 billion. Thailand has now surpassed Japan to become the fourth largest exporter to Vietnam. Vietnam’s main imports from Thailand are consumer electronics, cars and car parts, petroleum products, chemicals, fruit and vegetables. What is worrying is the fact that Vietnam is importing a massive amount of fruit and vegetables from Thailand, accounting for about 60% of Vietnam’s total fruit and vegetable imports, of which many could be produced domestically, said Le Quoc Phuong, deputy head of the MOIT’s Industry and Trade Information Centre. He explained that compared with their Vietnamese counterparts, Thailand’s fruit and vegetables are better in quality and lower in prices. In addition, Thailand’s fruit and vegetables and Thai goods in general are bolstered by a strong retail network in Vietnam such as BigC and Metro, all of which are owned by Thai firms. In addition, Thai enterprises have held numerous trade fairs to promote Thai goods even to traditional markets, making Thai fruit and vegetables present in almost all markets near residential areas in Vietnam, Phuong added. As Thai fruit and vegetables have quickly won Vietnamese consumers’ favour, Vietnamese enterprises have increased imports from this country with advantages in terms of geographical proximity, quality and prices. Besides fruit for personal consumption, Vietnam has also increased the importing of Thai fruit to process and then export to other countries, especially the longan and durian, helping to raise overall fruit and vegetable imports from this market. According to the roadmap of the ASEAN Trade in Goods Agreement, car import tariffs from ASEAN countries will drop to 30% in 2017 and 0% in 2018. Therefore it is projected that Vietnam’s car imports from Thailand will increase and the Southeast Asian country will continue to be the largest provider of completely constructed cars for Vietnam, creating even more pressure on Vietnam’s trade deficit with Thailand. At the same time, tariff cut pledges within the ASEAN Economic Community will give an advantage to Thailand’s fruit and vegetables. However it is impossible to restrict Thai imports in a short time due to the fact that Vietnam’s fruit and vegetables are not competitive enough. Therefore, Vietnam’s trade deficit with Thailand is forecasted to reach US$6-7 billion, higher than last year’s US$5.2 billion. Phuong said that in regards to modern trade, the import of fruit and vegetables is nothing unusual, but it would be abnormal if Vietnam imports too much of the goods that could be entirely produced at home and this requires the attention of regulators. However, restricting imports with a ban is out of the question. The only solution is to enhance the competitiveness of Vietnamese goods in terms of both quality and price. Fruit and vegetables must be produced in a safe and clean process. At the same time, trade promotion strategies need to be changed so that Vietnamese goods become better known in the Thai market, thereby increasing exports and reducing the pressure on the trade deficit. Vietnam’s car dream re-ignited as Vingroup builds manufacturing plant The giant Vietnamese property developer Vingroup has announced plans to produce its first cars in the next two years, rekindling the long-cherished dream of a local car industry which has failed to come true following numerous attempts over the past two decades. As one of the largest private companies in Vietnam, Vingroup began its existence as a property developer and has gradually branched out into other areas, from education and healthcare to entertainment, retail and agriculture. And now the firm wants to make its own cars under the brand name VinFast. VinFast has set its sights on becoming a major manufacturer in Southeast Asia, with an annual capacity of 500,000 vehicles by 2025 and products ranging from diesel cars to electric cars and bikes. In the initial stage, the company expects to produce approximately 100-200,000 units a year. Its first products will be electric bikes, to be rolled out in the next 12 months and then cars one year later. Vingroup said that it has signed an agreement with Credit Suisse under which the latter will arrange a loan of up to US$800 million for VinFast to carry out its ambitious project. The firm also announced that the designs for its cars’ engines and main structures will be purchased from leading European and American companies, while the exterior designs will be undertaken by Italian design houses, which have worked on designs for famous car brands such as Audi, Bentley, Ferrari and Porsche. Notably, Vingroup stated that it has assembled a team comprising experts in the global automotive industry in order to take part in research and production management. VinFast will also forge links with domestic suppliers to develop and manufacture car parts with an aim of reaching a domestic content of 60% and will export its cars to regional countries. Since the early 1990s the government has determined car manufacturing as a key sector by introducing various tax incentives with the aim of establishing a strong local automotive industry. But after 25 years, car prices in Vietnam remain prohibitively expensive, while the rate of domestic content remains extremely low. Last year the Ministry of Industry and Trade admitted that Vietnam has totally failed to meet the target of 60% local content in nine-seaters or smaller cars by 2010, as the average rate is only about 7-10%. The highest rate belongs to the Toyota Innova but is only at 37%, far below the requirements. Meanwhile in Thailand, the domestic content has reached as high as 90% for pick-up trucks and 70% for passenger cars, according to the Southeast Asian country’s Board of Investment. Prior to Vingroup, another local firm, Vinaxuki, also nurtured a great ambition and invested heavily in manufacturing workshops, with the aim of producing cars with high local content. But the dream was soon shattered in 2015 when Vinaxuki had to sell a factory to pay off its debt and its unfinished cars are now left covered in dust. The company’s failure is attributed to a lack of funds and tax policies, which made it unable to finish its cars and compete with imported products. The primary reason for the stagnation of the Vietnamese automotive sector and the wide gap between domestic and foreign prices is an unclear and inconsistent strategy. On the one hand, the government wants to prop up the supporting industry to bring down car prices but, on the other hand, high excise tax is levied to discourage car use due to poor infrastructure and environmental concerns. From 2018 when tariffs on cars that meet 40% ASEAN regional content will be cut to zero, a torrent of cheap cars from countries in Southeast Asia will certainly flood the Vietnamese market, creating even more pressure on the already languishing local automotive industry. This is good news for Vietnamese consumers but could spell the ultimate demise of the local automotive industry as car-makers will simply import completely built cars instead of investing in manufacturing lines. In a gloomy picture, Vingroup’s recent commencement of a car manufacturing facility in the northern port city of Hai Phong is a silver lining, helping to keep the dream of made-in-Vietnam cars alive. But enormous challenges are lying ahead as manufacturing cars is an entirely different area from its traditional businesses in the services sector. It is no easy task to make cars as it requires thousands of different parts and a high level of technology. Furthermore Vingroup will face the challenge of changing the Vietnamese consumers’ strong preference for foreign goods. Recently, BKAV, a Vietnamese technology firm, launched the second generation of its locally produced Bphone smartphone, to little fanfare from Vietnamese consumers. Very few express any interest in buying a Vietnamese-made smartphone and still prefer iPhones or other devices made by foreign companies, which they believe are better value for money. Nevertheless there is still room for hope as Vingroup has proved to be a leading contender in every area of business in which it has been involved and has become a major brand in the mind of Vietnamese consumers. With an impressive track record, there are grounds to believe that Vingroup’s endeavour in this new business will bring fruitful results, especially as its effort has received the support of the Vietnamese government leader. Prime Minister Nguyen Xuan Phuc said at the ground-breaking ceremony on September 2 that Vietnam having its own car brand is highly significant for building an independent economy. He added that it would be a miracle if VinFast could roll out its first cars in the next two years. Vingroup Vice Chairman Nguyen Viet Quang said that engaging in heavy industries is part of its long-term strategy to gradually reduce the proportion of property development. He is confident that consumers will support its locally made cars given its strengths in capital resources, world-leading experts and particularly consumers’ confidence in the premium quality of its products and services in the past few years. Furthermore, Vietnam’s car market has great potential for growth as the country’s car ownership remains significantly lower than that of regional countries. The Ministry of Industry and Trade has projected that Vietnam’s annual car demand will reach 450 -500,000 units by 2020, 800-900,000 units by 2025 and 1.5-1.8 million by 2030. If Vingroup could tap into this market and succeed, it could help Vietnam to save an enormous amount of US dollars spent on car imports and truly revive the domestic automotive industry. ‘Viet’, ‘Vietnam’ used for trademark registration abroad The Government has assigned the Ministry of Science and Technology to license the use of words ‘Viet’ or ‘Vietnam’ for certification and collective trademark registration of Vietnamese products and services abroad, according to recently issued Decree 91. At first, the ministry should license the Ministry of Agriculture and Rural Development to conduct collective trademark registration of Vietnamese rice abroad. In addition, the Government has tasked the Ministry of Science and Technology to adjust and supplement regulations on the use of national name and other marks for registering geographical indication and trademarks of products and services at relevant legal documents to submit to competent authority. HCM City delegation to open trade promotion in Australia and New Zealand The Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) in collaboration with the Ho Chi Minh City Tourism Department will jointly organize a delegation "the HCMC trade and tourism investment promotion" to Australia and New Zealand, led by the city leaders.  As scheduled, the working delegation in the two countries will start on October 23- 31, 2017 with attractive activities as conference on trade, tourism and investment promotion, investigation programs to connect trading between Vietnamese enterprises and potential enterprises of Australia and New Zealand. Under its target of investment attraction into the city’s key projects, strengthening export and activities on trade, investment and tourism promotion into Australia and New Zealand, the program will give priorities for enterprises having projects in accordance with the policies of Ho Chi Minh City. Businesses must spend over $629 million on specialized inspections Businesses must take about 28.6 million working days and VND14,300 billion (US$629.21 million) to implement specialized inspection procedures, according to a Government working group. The working group has been established to inspect how ministries have conducted specialized inspections on export import goods. According to the group, 13 ministries have completed only 64 out of 98 assigned tasks so far. It has spotted a slew of limitations and problems in inspection operations of the ministries such as the high ratio of overlapped and conflict regulations. One commodity is managed by many documents and must undergo specialized inspection procedures by many ministries. The ratio of one commodity undergoing 2-3 specialized inspection procedures approximates 58 percent now. Inspection and management methods have not accorded with international standards, lengthening cargo customs clearance time. Nearly 100,000 items must experience specialized inspections right at border gates during customs clearance with the ratio of spotted violation being less than 0.1 percent. That has raised difficulties, inconveniences and costs for businesses. Annually they must pay VND14,300 (US$629.21 million) to implement regulations and procedures on specialized inspections. Beverage producers object to special consumption tax on carbonated drinks Domestic beverage enterprises said their production would be badly affected if carbonated drinks are added to the list of items subject to special consumption tax, heard a conference on impacts of tax law amendments held by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi yesterday. According to a draft amending the tax laws by the Ministry of Finance, carbonated drinks will be subject to a special consumption tax rate of 10%. Besides, value-added tax (VAT) will increase from 10% to 12% for all kinds of beverage and from 5% to 6% for sugar. In a document sent to the conference, the U.S.-ASEAN Business Council said such amendments will lead to a rise of 12% or more in soft drink prices. As a result, there would be a significant decline in beverage consumption and revenue. According to the council, beverage companies might narrow production, resulting in lower corporate income tax revenues. Small and medium enterprises will be affected the most by tax law amendments. The council suggested the Ministry of Finance not impose special consumption tax on soft drinks. Or to lessen the impacts, the ministry should impose a tax of only 1-3% on all kinds of sugary food and beverage, or impose special consumption tax on highly carbonated drinks only. Nguyen Van Viet, chairman of the Vietnam Beer, Alcohol and Beverage Association (VBA), said the ministry should conduct a thorough assessment report on the impacts of the draft law on the beverage industry, the economy and the society. According to the Ministry of Finance, it is conducting an assessment report with the help of the World Bank. “Many populous countries like China have not imposed special consumption tax on carbonated drinks to avoid negative impacts on the beverage industry and the State budget. So there is no reason for Vietnam to do so,” Viet said. There are currently hundreds of businesses involved in the beer-alcohol-beverage industry in Vietnam. They contribute nearly VND50 trillion (US$2.2 billion) to the State budget annually and create hundreds of thousands of jobs. U.S. firms look for Vietnamese suppliers Many U.S. manufacturers and retailers on September 14 joined the Supplier Day 2017 in HCMC to look for Vietnamese suppliers to increase local content of their products and services, and add more Vietnamese products to their distribution systems. The Supplier Day 2017 held by the American Chamber of Commerce in Vietnam (AmCham Vietnam) was attended by 17 foreign manufacturers, suppliers and distributors, mainly U.S. enterprises operating in Vietnam, and 60 local suppliers. The foreign firms want to directly discuss with local suppliers to learn about the supply capacity of Vietnamese companies and put forth their requirements. Most of the participating companies are multinationals from the U.S. or members of AmCham Vietnam such as Coca-Cola Beverages Vietnam, Procter and Gamble, Suntory PepsiCo Vietnam Beverage, UPS Vietnam, WAHL Vietnam, BriskHeat Vietnam and Walmart Global Sourcing. The event, which has been annually held since 2014, is aimed at connecting manufacturers and local suppliers to develop supply chains in Vietnam, thus helping suppliers meet requirements of manufacturers, while U.S. firms can find potential suppliers. Frank Weiand, co-chairman of the AmCham Vietnam manufacturing committee and general director of Supply Chain Services International (SCSI), said the event would improve local supply chains to satisfy the demand of international manufacturers. Phan Trong Quan, general director of WAHL Vietnam, a clippers manufacturer in Long Hau Industrial Park in Long An Province which has exported its products to the U.S., the UK, Australia, Canada and New Zealand, said the Supplier Day was a great opportunity for the company to choose potential suppliers to reduce products’ prices and increase its localization rate. This is the fourth time in a row WAHL Vietnam has participated in the event. After working with five suppliers at the event, the company found four of them suitable for cooperation, Quan added. Quan said local suppliers are getting better in helping foreign manufacturers lessen reliance on parts imports. The localization rate of WAHL Vietnam has surged to 45% compared to 5% four years ago, and the rate is expected to grow to 95% in 2018. Le Tu Cam Ly, legal and public affairs executive of Coca-Cola in Indochina, said with its 30-year operation, Coca-Cola pledged to offer business opportunities for Vietnamese small and medium enterprises. The company also shared its experience in promoting business activities and supply chains of both U.S. and Vietnamese companies. In order to join the global supply chain, local enterprises are required to produce high-quality products with reasonable prices and ensure prompt delivery, thereby having more markets, overcoming challenges and contributing to the development of Vietnamese supply chains, said Weiand. TMV Vietnam picks rapper Suboi as brand ambassador Popular rapper Suboi has been chosen as brand ambassador for the “No Quality, No Life” project of Toyota Motor Vietnam (TMV), the leading automaker in Vietnam. The project puts quality goals first in all activities to cope with changes in consumer trends and lifestyles in Vietnam’s modern society. Born and brought up in Vietnam, the young artist has emerged as a famous rapper thanks to her talents and stringent efforts. With great passion and strong dedication to music, Suboi has made outstanding achievements in the international music industry and performed at music festivals worldwide. Dong Nai property market poses high risk Dong Nai Province's real estate market holds potentially high risks despite the rapid growth being helped by improved traffic connectivity with HCMC, heard a seminar on the provincial property market on September 14. Among HCMC’s neighboring provinces, Dong Nai has the better advantage as it is home to many important traffic intersections, with many axis routes cutting through it such as National Highway 1A, North-South Railway, HCMC – Long Thanh – Dau Giay, Ben Luc – Long Thanh and Dau Giay – Phan Thiet expressways, Phuoc Khanh Bridge connecting Can Gio to Nhon Trach, and Ben Thanh – Suoi Tien Metro Line which will link to Bien Hoa City. Especially, Long Thanh International Airport project has made Dong Nai’s real estate market more attractive to HCMC investors as people tend to move to neighboring areas of HCMC. At the seminar “Dong Nai real estate market: opportunities and risks” held by Dau Tu newspaper, it was announced that the province is home to nearly 300 property projects of domestic and foreign enterprises including those with investments of billions of U.S. dollars. According to statistics of the market researcher Savills, Dong Nai as of 2016 had 55 housing projects supplying 30,200 apartments and land lots. However, the secondary market accounted for up to 90% with 27,600 products while the primary market provided only 2,600 products. In general, investors focus on the land segment with long-term investment targets of five to seven years. Land prices remain low with VND4-4.5 million per square meter in Long Thanh and Nhon Trach districts and VND3.5 milion in Trang Bom and Giang Dien districts. The market has shown signs of uncontrolled development as many local people have divided their farm land into lots to sell. Many areas of farmland of 3,000-4,000 square meters each had already been divided into smaller ones many years ago, said Nguyen Minh Khang, acting general director of LDG Group. Due to this rampant development, numerous projects in the province without technical and social infrastructure facilities remain unsold.  Nguyen Thanh Lam, deputy director of Dong Nai Department of Construction cum chairman of the Dong Nai Real Estate Association, said the provincial housing market becomes active thanks to infrastructure development projects, especially Long Thanh International Airport project. Industrial park and urban area development projects measuring up to 21,000 hectares around the airport have been suspended pending adjustment of zoning plans. The province has also halted the certification of farmland being split into small lots. Lam categorized real estate projects in Dong Nai into three groups. The first group comprises of land resources in urban areas in Bien Hoa City, Long Thanh, Trang Bom and Long Khanh districts, which have been almost exhausted. In the second group, projects with an area of 200-300 hectares each are located in localities with poor infrastructure, mainly land plots. These projects are only suitable for investors with medium-term investment targets from five to seven years. The third group includes projects in areas without essential infrastructure facilities, and are only suitable for investors with over-10-year investment targets, he said. Four locations proposed for Rach Mieu 2 Bridge Project Management Unit 7 (PMU7) has written to the Ministry of Transport proposing four locations to build Rach Mieu 2 Bridge, with one of them around three kilometers upstream the current Rach Mieu Bridge seen the most feasible. PMU7's proposal is based on the pre-feasibility study of Dasan Consultants from South Korea as the consultant of the project. Accordingly, the new four-lane bridge will be shorter than the current Rach Mieu Bridge if it is built at the most-preferred site. The location is ideal as it is convenient to connect to HCMC – Trung Luong Expressway and Ham Luong Bridge while a bypass is not required in the construction process. The river flow will not also affect the implementation of the project due to the long distance from the Rach Mieu Bridge. For the second option, a longer two-lane bridge than the bridge suggested in the first option will be built next to the current Rach Mieu Bridge. This site is good for connecting to HCMC-Trung Luong Expressway but severe traffic congestion may be seen in the construction process and the river flow may be an obstacle. In addition, traffic jams may occur in Tien Giang Province’s My Tho City due to the heavy traffic from HCMC to Ben Tre Province through My Tho. The third site is 1.3 kilometers upstream from Rach Mieu Bridge. A four-lane bridge with the same length with Rach Mieu Bridge can connect to HCMC-Trung Luong Expressway. A bypass is unnecessary but the river flow may also affect construction work. With the last option, the bridge planned to be built eight kilometers from the Rach Mieu Bridge is shorter than in the other proposals. During the construction of the four-lane bridge, a bypass would not be needed but this location would make the new bridge impossible to link to HCMC-Trung Luong Expressway. In the first option, the new bridge inclusive of approach roads is envisaged having five sections. As for investment, the consultant proposed using official development assistance (ODA) loans from South Korea and local counter capital for the first and second sections while the fourth section with 8.9 kilometers in length will be invested under the public-private partnership form. The management unit is waiting for approval of the Ministry of Transport on investment solutions. Medical plastic company merged into equipment corporation Mediplast Medical Plastic Joint Stock Company has been officially merged into Vietnam Medical Equipment Corporation (Vinamed), said the latter on September 14. All of Mediplast’s assets, rights, duties, and benefits, as well as liabilities have now been transferred to Vinamed. The assets include property, plants, and machinery. Vinamed earlier issued additional shares via a private placement for Mediplast’s shareholders at a 3:1 ratio, meaning each share of Mediplast entitles the holder to three shares of Vinamed. Vinamed said leaders of Mediplast are to hold key management positions at Vinamed. The corporation also guarantees all of the rights and duties for Mediplast’s employees. Mediplast earlier had plans to expand production in a bid to diversify its products. However, it ran short of investment capital, lacked management capacity, and relationships with international partners. Meanwhile, Vinamed has stronger finances, international relations, governance, and customer relations. Therefore, the merger will give Mediplast and its shareholders an opportunity to achieve their purpose, according to Pham Quang Huy, chairman of Vinamed. He added the merger helps Vinamed bolster its capacity as a corporation specializing in major medical fields, including equipment manufacture and distribution, consultancy and construction, technology solutions, and investment. These fields will create a close supply chain of medical products and services. Vinamed has recently unveiled its plans to invest in two hospital projects, including the high-tech service facility of the Thanh Hoa General Hospital in the northern city of Thanh Hoa. Pegas Vietnam opens five-star resort catering to Russian tourists Pegas Vietnam Co Ltd has opened the five-star Swandor Hotels & Resorts targeting Russian tourists in the coastal city of Cam Ranh in Khanh Hoa Province. Hoang Thi Phong Thu, chairwoman of Pegas Vietnam, said Swandor Hotels & Resorts has 546 rooms and is rented for a long term by a domestic investor. “Russian tourists usually stay at the hotels in 10-12 days and require a variety of food and beverage, sports and entertainment services. Pegas Vietnam has hired foreign chefs and spa specialists to work at Swandor and train the local staff,” Thu said. In addition to Swandor, Pegas Vietnam is managing two other resorts under Dessole Sea Lion brand in Cam Ranh and Phan Thiet, both mainly catering to Russian tourists. According to Thu, the number of Russian tourists to Vietnam is growing fast. Last year, Pegas served 140,000 Russian tourists and the number would rise to 180,000 this year. Most of them choose Cam Ranh, Phan Thiet, Ninh Thuan and HCMC for multi-day vacations. CLIA to hold river cruise conference in HCMC next year The Cruise Lines International Association (CLIA) will hold a river cruise conference in HCMC next year given the high demand for river cruise tourism in Asian countries. Taking place from April 10 to 11, 2018, the conference will include a cruise in the Mekong River for participating travel agents. Participants will be able to take advantage of a trade fair and conference sessions which will focus on identifying potential river cruise customers and learning more about river tourism services in Asia. Some travel agents in HCMC said the ocean and river cruise sector has seen strong growth in recent years. Particularly, there are currently about 20 ships plying the waterway on the sightseeing cruise from My Tho City in the Mekong Delta to Cambodia’s Siem Reap Province. An eight-day tour costs around US$2,000 per person for three-star cruise ship and US$4,000 per person for four or five-star ship. Specifically, some luxury cruise ships offer tours costing US$1,500 per person per day. Bui Viet Thuy Tien, managing director of Asian Trails Co., Ltd., said river cruise in the Mekong Delta is flourishing. CLIA’s conference will be a chance for domestic travel firms to introduce river tourism products internationally. “Tourists from Japan, Europe and the U.S. are very much interested in river cruise. With extensive marketing and promotion, this sector will grow further in the Mekong Delta and Vietnam as a whole,” she added. Prices of steel products to rise      Prices of steel products are forecast to continue rising in the latter months of the year due to a hike in the prices of steel ingot and steel scrap. This was stated by the Vietnam Steel Association (VSA). Nguyen Van Sua, deputy chairman of the association, said because prices of input materials have been increasing strongly, steel producers have to raise the selling price of the products to offset production costs. In August alone, steelmakers in the northern region had to increase prices five times, with a combined increase of VND1.1 million (US$48.8) per tonne from VND10.77 million per tonne. In the same month, steel producers in the southern region hiked prices three times. Prices of steel products in the region currently range from VND12.4 million per tonne to VND12.7 million per tonne. According to VSA, steel scrap is being imported at $350-354 per tonne, $40 higher than the price one month ago. Domestic steel scrap is being sold at VND6.8-7.2 million per tonne, compared with VND6.35-6.55 million in August. The price of imported steel ingot in early September was quoted at $540-545 per tonne, 13 per cent higher than early August. Price of domestic steel ingot went up from VND10.5 million per tonne to VND12.1 million. VSA deputy chairman Sua predicted, “Steel ingot price will likely surge to VND12.7 million per tonne, thus the price of steel products would continue moving up this month.” Last month, the local steel industry produced 13 million tonnes, an increase of 17.4 per cent compared with the same period last year. Of the total, 11 tonnes were sold in the local market, 14.9 per cent higher than August 2016. Viet Nam also exported 2.98 million tonnes of steel products from January to July, earning revenue of $2 billion, a rise of 27 per cent in volume and 50 per cent in value against the corresponding period.  HCM City farm, consumer goods fair promotes local produce      A farm produce, food and consumer goods fair which opened at the Tan Binh District Culture and Sport Centre in HCM City on September 12 seeks to promote production and consumption of Vietnamese products. The six-day fair has 200 booths displaying a wide range of agricultural products, foods, fashion items, jewellery, handicrafts, wooden products, household utensils and other consumer goods. Visitors can enjoy music shows every night and try a range of cuisines. It is organised by the district People’s Committee together with the Dong Nam Advertising and Commercial Promotion Joint Stock Company. At the opening ceremony, the organisers gave gifts to 50 disadvantaged children from the district.  HCM City farm, consumer goods fair promotes local produce      Farm produce, food and consumer goods fair which opened at the Tan Binh District Culture and Sport Centre in HCM City on September 12 seeks to promote production and consumption of Vietnamese products. The six-day fair has 200 booths displaying a wide range of agricultural products, foods, fashion items, jewellery, handicrafts, wooden products, household utensils and other consumer goods. Visitors can enjoy music shows every night and try a range of cuisines. It is organised by the district People’s Committee together with the Dong Nam Advertising and Commercial Promotion Joint Stock Company. At the opening ceremony, the organisers gave gifts to 50 disadvantaged children from the district.  SBV issues new regulations      The latest instructions from Le Minh Hung, Governor of the State Bank of Viet Nam (SBV), require credit institutions and commercial banks in Viet Nam to strictly comply with the SBV’s regulations on mobilising capital in foreign currencies and not offer interest rates exceeding the ceiling levels. The SBV’s intention is to ensure a balance between mobilised capital and lending capital, which is a way to minimise systematic risks in providing foreign currency credit. Issued on Wednesday, an official document numbered 7295/NHNN-TTGSNH from the SBV demands credit institutions keep a close watch on foreign currency credit growth rates, while monitoring the ratio between credit and capital mobilisation in foreign currencies so that an equilibrium is maintained. In particular, the SBV requested their local offices and other inspection authorities to monitor commercial banks’ other practices to ensure that official regulations on foreign currency interest rates are respected and implemented. Document 7295 stated that any infringement of the SBV’s regulations would lead to a number of penalties, depending on the level of violation. These range from denial of granting permits for opening new banking branches, representative offices or ATMs, to prohibition of issuing new services. Competition among credit institutions by offering foreign currency interest rates exceeding the regulated ceiling levels would also result in penalisation from the SBV. The SBV also asked credit institutions to take the initiative in monitoring and exposing interest rate violations in foreign currency lending, mobilising and liquidating activities within their branch offices, and to implement the appropriate disciplinary actions. On the other hand, the Governor requested that banks and other credit institutions conduct promotional programmes to encourage borrowing, while tending to customer services, especially businesses, to ensure productivity. Previously, the SBV had issued Circular 06/2014/TT-NHNN and Decision 2589/QD-NHNN, requiring credit institutions to apply regulated interest rates, avoid using technical methods to bypass the SBV’s control, or participating in illicit competition by raising interest rates above the SBV’s designated maximum rates. At the moment, the SBV’s regulated maximum deposit interest rate for US dollar is zero per cent for both individuals and organisations. According to reports from the National Financial Supervisory Commission (NFSC), by the end of August 2017, total credit growth rate in the banking sector has reached 11.5 from the start of the year, as compared to 10.2 per cent in the same period of 2016.  Credit growth rate for lending in foreign currencies in the first eight months of 2017 is now 11.5 per cent, a staggering increase of 6.7 times from the same period last year at 1.7 per cent, while credit growth rate for loans in Vietnamese dong is 11 per cent. Nonetheless, foreign currency credit only accounts for 8.5 of total national outstanding debt.  Khanh Hoa Sanest Beverage earns $10m from IPO      Khanh Hoa Sanest Beverage Company earned VND222.7 billion (US$9.8 million) from the sale of nearly eight million shares at its initial public offering (IPO), the HCM City Stock Exchange said. The starting price for the IPO was VND23,000 per share. The auction on Monday attracted eight organisations and 285 individuals, who registered to purchase 20,677,820 shares. The highest bid price was VND80,000 per share, the lowest price was VND25,300 per share and the average was VND27,937 per share, 21.5 per cent higher than the starting price. Two organisations and 132 individuals won the bids. Khanh Hoa Sanest Beverage specialises in the production of processed milk and dairy products, non-alcoholic beverages and mineral water, along with selling retail and wholesale beverages and food products. The company is among five subsidiaries of the Khanh Hoa Salangane Nests Company, with initial charter capital of VND220 billion on the launch day of January 28, 2016. Last year, the company posted revenue of VND535 billion, accounting for 62 per cent of Khanh Hoa Salangane Nests Company’s total revenue. Besides exporting products to the United States, mainland China, Taiwan and Hong Kong, Khanh Hoa Salangane Nests Company has also set up branches in other ASEAN countries.  Better management of BOT, BT projects needed: inspectorate The Government Inspectorate has found irregularities in the management of BOT (Build-Operate-Transfer) and BT (Build-Transfer) projects in HCM City, including the use of inappropriate contractors. The Inspectorate’s report, which examined the implementation of BT and BOT projects in HCM City, found that the city was mobilising resources properly to invest in infrastructure, but had several shortcomings in investment preparation, including the publication of lists of projects, selection of investors, and preparation and approval of reports on project feasibility. In addition, shortcomings were found during the investment execution process, which included contract signing, project progress, bidding and selection of contractors, acceptance of payments, and maintenance.   Based on the findings, the Inspectorate recommended that Prime Minister Nguyễn Xuân Phúc instruct the ministries of transport, construction, finance, and planning and investment as well as the city People’s Committee to take action to remedy the situation. The Inspectorate asked the ministries of planning and investment, finance and transport to work with the Government on issuing appropriate documents or regulations on paying back the capital of BOT and BT projects. The ministries were also requested to develop a policy for maintenance and repair expenses to ensure economic efficiency and to improve management, inspection and supervision of projects. The HCM City People’s Council was told to approve investment policies for BOT projects before issuing investment registration certificates so that returns on investment could be ensured. The city People’s Committee was urged to direct the Department of Construction to compile statistics on projects funded with State capital in the city. Speaking at a recent meeting in HCM City, Võ Văn Hoan, head of the People’s Committee Office, said the city had faced numerous challenges in developing infrastructure projects since the early 2000s, especially a shortage of funds. He said that many road infrastructure projects in the city required huge amounts of capital but the city’s budget was overstretched, while budget allocations by the central Government were insignificant. To deal with the capital shortage, the city has sought stronger private sector engagement by developing infrastructure projects under the BOT or BT investment models. From 2010 to 2015, HCM City signed contracts with eight investors to develop 13 road and environmental protection projects under the BOT or BT model with total investment of nearly VNĐ33 trillion (US$1.45 billion). Five of them have been completed, while the remaining eight projects are still under construction. The Government Inspectorate said that many of the projects now underway are moving at an extremely slow pace, leading to losses and cost overruns. PM welcomes theme of 24th SMEs ministerial meeting Prime Minister Nguyen Xuan Phuc highlighted the theme of the 24th APEC Small and Medium Enterprises Ministerial Meeting (SMEMM), saying it demonstrates the aspiration of Vietnam to cooperate with other APEC member economies to foster SMEs’ innovation and global access in the digital era. Over the past 30 years of reform, Vietnam, from a poor country, became a developing and middle-income country in 2010, he said the opening session of the SMEMM held in Ho Chi Minh City on September 15.  The country’s development path is a vivid demonstration for the role and the significance of SMEs, he added. He described the SME community as a main momentum for employment generation and contribution to the maintenance of socio-economic growth and stability. In the context of the fourth industrial revolution, the National Assembly of Vietnam has promulgated the Law on Support for Small-and Medium-sized Enterprises while the Government has issued a number of important policies to build a healthy and inclusive business environment, he said. Vietnam hopes to receive cooperation from other APEC member economies to enhance the capacity of the tax system to encourage business production, fair competition, and prevent transfer pricing and tax evasion of some foreign investors, he added. The PM recommended building a support fund for SMEs and encouraging them to strengthen connectivity with multinational groups and engage in the global value chains. He suggested implementing more synchronous measures to increase SMEs' competitiveness and creativity such as facilitating business access to markets and deeper engagement in global value chains; enabling MSMEs to get access to new technologies, improve management capacity and increase competitive edge; promoting entrepreneurship and business ethics; and developing a sustainable and environmentally friendly startup ecosystem to promote innovation among SMEs in the region and value the role of female leadership. The PM called on countries in the Asian-Pacific region to foster trust and determination to maintain a peaceful environment and ensure safety and security for the free transfer of goods, services and investment inflows. The 24th Small and Medium Enterprises Meeting (SMEMM 24) is one of the most important ministerial events within the APEC cooperation framework, which is expected to adopt a joint statement on promoting start-up bussinesses and a strategy to develop green, sustainable and innovative SMEs, he said. Established in 1989, APEC comprises 21 economies, including Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam. Quảng Ngãi calls for new investors in revoked projects The central province of Quảng Ngãi has called for new investors in six projects that had their investment licences revoked due to delays from 2010 to 2015. Head of Dung Quất Economic Zone’s management board, Nguyễn Minh Tài, said the six projects had registered to invest in the zone, but all only either not started work or only done a little. Tài said the province has offered favourable conditions to draw new investors to revive the projects. He said two new investors – the Hòa Phát-Dung Quất Steel company and Messeeser industrial gas company – had agreed to cover an industrial ship-building complex. The other five projects include a seaman’s club, workers’ apartment, a villa in Vạn Tường Urban Area and an apartment east of the Trà Bồng River, and a hotel-restaurant and service complex. These projects have been deserted for years, wasting natural resources and investment opportunities. The 45,000ha Dung Quất Economic Zone is one of five key coastal economic zones in Việt Nam that has been prioritised for infrastructure development. Nineteen industrial parks are available to investors with infrastructure ready, according to the management board. According to latest reports, the province has attracted 36 foreign direct investment projects, worth $4 billion. MEDIPLAST officially merges with VINAMED Aiming to take advantage of each enterprise’s existing strengths to expand their scale of operations, medical equipment manufacturers MEDIPLAST and Vietnam Medical Equipment Corporation (VINAMED) have officially merged. Accordingly, MEDIPLAST has handed over its entire assets, including cash, real estate projects, factories, and machinery, among others, to VINAMED. In return, VINAMED issued individual shares to swap for MEDIPLAST’s existing shareholders at a ratio of 3:1. The shareholders of MEDIPLAST have become VINAMED’s shareholders, enjoying the same rights and benefit as VINAMED’s original shareholders. The merger will help MEDIPLAST increase its capital to expand its operations. In recent years, MEDIPLAST has been having difficulties in diversifying its products due to a lack of capital, management capacity, and relationships with foreign partners, while VINAMED seems a perfect complementary partner. The merger is an important step in building VINAMED as a corporation specialising in the healthcare sector with five key businesses, namely medical equipment production and distribution, as well as medical technology and consultancy, communications system (PACS) solutions, and healthcare facilities. These five businesses will create a closed supply-service chain for VINAMED. After the merger, MEDIPLAST will be in charge of marketing for the entire VINAMED product portfolio. Formerly the Department of Basic Materials and Construction under the Ministry of Health (MoH), the company was officially renamed VINAMED on May 2, 1996 by MoH Decision No.720/BYT-QD. On July 12, 2016, VINAMED completed its equitisation and was officially transformed into a joint stock company. For nearly 30 years, VINAMED has been training highly responsible and enthusiastic management staff, pharmacists, and engineers. The company’s trainees are knowledgeable about medical equipment and have experience in business, logistics services, as well as equipment repair and installation. In May, VINAMED officially received the investment certificate to develop a high-quality medical services centre at Thanh Hoa General Hospital in the framework of Thanh Hoa Investment Promotion Conference 2017, which took place on May 18. The project has a total investment value of VND739 billion ($32.55 million) contributed by Thanh Hoa General Hospital and VINAMED. The project is a paramount item in the plan of restructuring and developing healthcare services in the province by 2020 with vision to 2030 and is in line with Vietnam's comprehensive planning for the healthcare sector for the same time period. Considered one of Vietnam's leading medical equipment manufacturers, MEDIPLAST operates mainly in the fields of manufacturing, trading, import and export of medical equipment, materials, and medical instruments, and related products with the most modern production lines of the UK and Japan. In late July, it inaugurated MEDIPLAST medical plastic factory (phase 1) at the northern province of Bac Ninh's Dai Dong Industrial Zone. Construction formally starting in November 2016, the factory was completed and came into operation in June 2017. At present, it focuses on the production of sterile plastic syringes and feeding syringes, K1 auto disable syringes, INSULIN syringes, scalp vein set needles, and infusion sets. With an area of 13,000 square metres and staff of more than 200, the new factory in Bac Ninh will help MEDIPLAST increase production capacity and develop new products to meet the demand for high-quality plastic medical equipment in the country and become the supplier of global organisations, such as the United Nations Children's Fund (UNICEF), the World Health Organization (WHO), the Program for Appropriate Technology in Health (PATH), and the Global Vaccine Alliance Translation (GAVI), among others. Mobile World in Top 50 leading Asia-Pacific listed companies The Mobile World Investment JSC has appeared in Asia’s Fab 50 listed companies as voted by Forbes Asia magazine. Mobile World is the second Vietnamese company to appear on the list during the Fab 50’s 13-year history. The company is capitalized at $1.5 billion and earned revenue of $2 billion in 2016. Established in 2004, its annual revenue growth rate has steadily remained above 60 per cent since its HSX share issuance in 2014. It currently has 1,609 stores in Vietnam and one in Cambodia, with four brands: Mobile World, Dien may Xanh, Bac hoa Xanh, and the e-commerce site vuivui.com. Forbes also emphasized that Mobile World has ambitious plans to expand in Cambodia and to Laos and Myanmar. To identify the Top 50 listed companies in the Asia-Pacific region, Forbes Asia’s team of professionals screened 1,964 listed companies earning annual revenue of at least $1.8 billion. It also set other important criteria, such as corporate value or revenue not lower than five years ago, no high debt ratio, and no more than 50 per cent State ownership, and businesses must also meet dozens of different financial indicators, the aim being to provide a list of Asia’s “bluechip” elite companies. Mobile World also appeared among the Top 50 best listed companies in Vietnam 2017 from Forbes Vietnam. The announcement ceremony was held on September 14. In the first seven months of this year, its turnover was VND36.7 trillion ($1.6 billion), up 58 per cent year-on-year and equal to 58 per cent of the annual target. After-tax profit was VND1.26 trillion ($54.7 million), up 29 per cent year-on-year and equal to 57 per cent of the annual target. Turnover at thegioididong.com was VND20.5 trillion ($891 million), a 23 per cent increase year-on-year, and VND15.7 trillion ($682 million) at dienmayxanh.com, 138 per cent higher year-on-year. Online turnover reached VND3 trillion ($130 million), up 95 per cent year-on-year and equal to 45 per cent of the annual target. The company opened 354 new stores nationwide in the first seven months, including 83 new thegioididong.com stores and 181 new dienmayxanh.com stores. As at July 31 it had 1,609 stores, including 1,034 thegioididong.com stores, 437 dienmayxanh.com stores, and 138 Bach hoa Xanh stores. Ministry stipulates solar power purchase price The Ministry of Industry and Trade has issued a circular, stipulating solar power purchase price at VND2,086 per kWh (9.35 US cents). The price will be adjusted according to fluctuations in VND/USD exchange rate. According to the ministry, the circular’s issue is to make transparent solar power development procedures in Vietnam, boost investment in this field, increase power system capacity and gradually raise the ratio of renewable energy in the national electricity system. It also aims at less dependence on depleting fossil fuel, energy security, greenhouse gas emission reduction, environment protection and sustainable development. HCMC launches social condo design competition The Department of Construction and the Architects Association in HCMC today announced the launch of social condo design competition.  The competition comprises of ten awards totally worth VND880 million ($38,719). Director of the Department Tran Trong Tuan said that the competition aims to boost investment in social apartments in the city and improve design quality of these special condos. It expected to draw attention of professional architects and organizations to select the best designs which meet all requirements of planning, architecture, economic efficiency and offer a fresh environment for residents. Accordingly, the best works will be introduced to investors and consulting agencies in the city and nationwide. Participants are organizations and individuals in Vietnam and those who are professional at designing apartment. One special prize is worth VND200 million, one first prize is VND150 million, two second prizes each worth VND100 million, three third prizes each worth VND80 million and three consolation prizes each worth VND30 million. Entries can be sent to the Department of Construction at 60 Truong Dinh Street in District 3 from now to November 3. The prize-giving ceremony will be held in January 10, 2018. HCM City delegation to open trade promotion in Australia and New Zealand The Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) in collaboration with the Ho Chi Minh City Tourism Department will jointly organize a delegation "the HCMC trade and tourism investment promotion" to Australia and New Zealand, led by the city leaders.  As scheduled, the working delegation in the two countries will start on October 23- 31, 2017 with attractive activities as conference on trade, tourism and investment promotion, investigation programs to connect trading between Vietnamese enterprises and potential enterprises of Australia and New Zealand. Under its target of investment attraction into the city’s key projects, strengthening export and activities on trade, investment and tourism promotion into Australia and New Zealand, the program will give priorities for enterprises having projects in accordance with the policies of Ho Chi Minh City. SBV Governor requires close control over credit in foreign currencies The Governor of the State Bank of Vietnam (SBV) has sent Document 7295 requiring credit institutions and foreign banks’ branches to keep a close eye on credit growth rate in foreign currencies to ensure their operation safety. They have been asked to control credit by mobilized capital in foreign currency to ensure suitable ratio and the balance between deposit and loan funds, intensify risk control in credit granting in foreign currencies. Credit institutions should abide by reward interest rates stipulated at Circular 06 issued in 2014 and Decision 2589 in 2015 of the Governor, not apply technical measures to increase ceiling rates. They are banned from unhealthy competition in capital mobilization. The Governor requires them to examine and spot violations in reward ceiling rates and strictly handle leaders of branches for letting violations occur and not abiding by regulations by SBV. Businesses must spend over $629 million on specialized inspections Businesses must take about 28.6 million working days and VND14,300 billion (US$629.21 million) to implement specialized inspection procedures, according to a Government working group. The working group has been established to inspect how ministries have conducted specialized inspections on export import goods. According to the group, 13 ministries have completed only 64 out of 98 assigned tasks so far. It has spotted a slew of limitations and problems in inspection operations of the ministries such as the high ratio of overlapped and conflict regulations. One commodity is managed by many documents and must undergo specialized inspection procedures by many ministries. The ratio of one commodity undergoing 2-3 specialized inspection procedures approximates 58 percent now. Inspection and management methods have not accorded with international standards, lengthening cargo customs clearance time. Nearly 100,000 items must experience specialized inspections right at border gates during customs clearance with the ratio of spotted violation being less than 0.1 percent. That has raised difficulties, inconveniences and costs for businesses. Annually they must pay VND14,300 (US$629.21 million) to implement regulations and procedures on specialized inspections. HCMC should allow small apartments The HCMC government should allow for construction of commercial apartments smaller than 45 square meters as long as the number of such homes does not exceed 25-30% of the total, said real estate experts. Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said the minimum floor area of commercial and social apartments of 45 square meters as stipulated in the 2005 Housing Law is unreasonable. The regulation is also specified in the National Standards TCVN 4451:2012 on basic principles in house designs issued by the Ministry of Construction. Chau said the restriction on the size of apartments makes it difficult for low-income people to own homes. The standard should not be applied in all localities due to the differences in housing demand. Especially, in Hanoi, HCMC and seven other big cities, available land for commercial and social housing projects should be used economically and effectively. The 2014 Housing Law which replaces the 2005 law allows investors to decide the area of the  commercial house as long as it is suitable to the housing standards set by competent agencies. However, the Ministry of Construction has not issued new national standards for apartments in line with the new law to replace the old ones. Nguyen Van Duc, deputy director of Dat Lanh Real Estate Co Ltd, said the ministry had earlier given the nod to the company to build commercial apartments measuring 30-40 square meters. These apartments were sold out rapidly after completion, showing the demand was huge. At present, there is high demand for small apartments that are affordable for low-income people. The city cannot ban these apartments just because they may give rise to slums in the sky, Duc added. Chau from the HoREA also agreed that the need for small social and commercial houses of State employees, students, workers and unmarried people is huge. According to the 2014 Housing Law, the Government, the Ministry of Construction, and central cities and provinces can decide housing standards suitable to specific demand and conditions of localities. Therefore, HCMC should accept commercial apartments with a minimum floor area of 25 square meters, he said. Petrolimex asks distributors to be ready for selling E5 bio-fuel Vietnam National Petroleum Group (Petrolimex) will completely replace A92 petrol by E5 A92 bio-fuel from January 1 next year, and has just ordered all its distributors to prepare facilities for the change, Vietnamplus reports. Petrolimex asked its distributors to implement the project seriously by readying all mixing, transport and storage facilities to ensure the quality and safety of E5 A92. The group also encouraged fuel traders to make the move to sell the bio-fuel earlier if preparations are already completed. A92 will be wiped out, so gas stations can sell only A95 and E5 A92, or each of them. Deputy Minister of Industry and Trade Hoang Quoc Vuong said the ministry has worked with localities, fuel traders and bio-fuel producers to inform consumers of the imminent change, and prepare technical infrastructure and issue preferential policies to encourage the consumption of the bio-fuel. Vietnam is now home to four bio-fuel plants including two of Tung Lam Production and Trading Co Ltd in Dong Nai and Quang Nam provinces with a total annual capacity of 200,000 cubic meters of ethanol. The other two in Quang Ngai Province’s Dung Quat and Binh Phuoc Province are expected to annually supply 200,000 cubic meters of ethanol for the market. To implement the project, the country will need 5.4 million cubic meters of E5 fuel and 250,000-270,000 tons of E100 as raw material for bio-fuel blending. Though local plants can meet the demand for ethanol, the Ministry of Industry and Trade has also allowed traders to import E100 to ensure the competitiveness in the market and protect consumer rights, Deputy Minister Vuong said. Metro Line No. 2 project in HCMC stays put until 2020 The HCMC government has asked the Prime Minister for permission to delay the Metro Line No. 2 project until 2020, which is an administrative step for the city to discuss an extension of loan agreements with international donors. In a document sent to the Prime Minister on September 7, the city pledged to shoulder all extra expenses for loan extension agreements for the metro line, which will run from Ben Thanh Market in District 1 to Tham Luong Depot in District 12. According to the document, the city has also secured capital for the project’s site clearance compensation. The delay is apparently due to time-consuming preparatory paperwork whose progress has fallen far behind schedule due to multiple adjustments to the project. A source from the HCMC Management Authority for Urban Railways (MAUR) said the parties concerned are adjusting the project’s technical design and investment cost. The HCMC government in February sent a scheme on project adjustments to related ministries and received feedback in June. The city has plans to submit the latest adjustment scheme to the Government for approval this month. The city has also adjusted the project’s total cost to US$2.173 billion from the initial US$1.3 billion, while the groundbreaking date has not been finalized. The districts which the metro line will pass through have been asked to finish site clearance before June 2018. On September 8, Le Van Khoa, director of Metro Line No. 2 project, said the construction process has to be adjusted due to slow site clearance and complicated procedures. Metro Line No. 2 has a total length of 11 kilometers and an original investment cost of US$1.3 billion, including loans worth US$540 million from the Asian Development Bank (ADB), US$313 million from the German Development Bank (KfW), US$195 million from European Investment Bank (EIB) and US$326.5 million from the city’s budget. According to the initial plan, the project would get off the ground in 2016 and be up and running in 2020. EZ Land enters Vietnam’s real estate market  EZ Land Company of Luxembourg’s international investment fund KEY SICAV SIF on Monday announced its participation in Vietnam’s real estate market with a plan to invest US$200 million in housing projects in the country. EZ Land plans to build 1,000-1,500 apartments a year in the next five to eight years and focus on homes for low-income people, a segment forecast to keep growing in the coming time. Oliver Brazier, CEO of EZ Land Vietnam, said his company will ensure the construction pace of projects and supply customers with high-quality apartments at reasonable prices. Its first project named HausNeo in District 9 including 568 units requires VND500 billion (US$21.94 million). EZ Land’s apartments will be designed in the Bauhaus style of Germany, focusing on both the beauty and utility of apartments. EZ Land Vietnam will acquire other enterprises’ projects whose construction has not been commenced and will not use the available designs of previous investors, said Oliver Brazier. In fact, EZ Land has been present in the domestic housing market for two years but its presence in Vietnam and its first project were only revealed several days ago. The company wants to prepare well for the implementation of its projects, such as completing administrative procedures and choosing ideal locations, to meet the demand of local people. Triumph Motorcycles eyes investment in Vinh Phuc A delegation from Triumph Motorcycles has visited the northern province of Vinh Phuc to explore investment opportunities. The company plans to build a factory manufacturing high-end motorbikes in the locality, according to the provincial People’s Committee. During a working session with local authorities, Jamie Looker, Triumph Motorcycles Chief Operating Officer, said the company, established in 1884, currently has factories around the world with the growing market share. The company plans to launch a showroom in Ho Chi Minh City by the end of this year, he added. Le Duy Thanh, Vice Chairman of the provincial People’s Committee pledged that the province will create favourable conditions for the UK firm to build the factory. He briefed the guests on local potential and advantages in economic development, investment attraction and industrial development, particularly in the automobile and motorbike industry, which has made a significant contribution to the province’s budget. The province is home to several major automobile and motorbike firms’ factories, including Honda, Toyota, and Piaggio, and other spare part factories. Dong Nai records 1.4 billion USD trade surplus in eight months The southern province of Dong Nai enjoyed a trade surplus of nearly 1.4 billion USD in the first eight months of the year, according to the provincial Statistics Office. In the eight-month period, the province shipped nearly 11 billion USD worth of products to foreign countries, a year-on-year increase of 11 percent. The trade surplus was contributed by key staples like footwear (1.9 billion USD, up 9.4 percent), garments (over 1 billion USD, up 8.2 percent) and wooden furniture (722 million USD, up 12.3 percent). The provincial People’s Committee said that the footwear sector has witnessed the highest export turnover in the past years. Foreign direct investment (FDI) companies like Changsin, Taekwang Vina and Pouchen have enjoyed sound and stable growth. They are committing to raising production capacity to meet orders from the world’s big footwear brands in the coming time. Despite facing fierce competition with Chinese, Indian and Bangladeshi enterprises, Vietnamese garment businesses still ensure stable orders thanks to their prestige and product quality. Regarding wooden products, numerous firms have sought new markets while taking advantage of the free trade agreements signed with the Republic of Korea and Japan to boost their exports. Meanwhile, several products saw high export growth like fibre (795 million USD, up 25.6 percent), machines and equipment (670 million USD, up 22.9 percent), computers and electronic products (318 million USD, up 22.8 percent). High export prices of agricultural products also contributed to the province’s export revenue. The largest importers of Dong Nai goods in the period were the US with revenue of 2.54 billion USD, China with 944 million USD and Japan with 934 million USD.-  Hai Phong told to revise fee collection Deputy Prime Minister Vuong Dinh Hue has asked the Ministry of Finance and Hai Phong city to strictly follow the PM’s instruction on reviewing fees for using infrastructure, service facilities and public utilities at ports in the city. The Government Office has sent Document 9014/VPCP–KTTH to the city’s People’s Committee to convey the Prime Minister’s instruction on the issue. The previous document from the Government in May said adjustments in fees were needed to ensure they are reasonable, comply with the law and create favourable conditions for import and export firms, as per Government resolutions on improving the business climate. The document was sent right after the municipal Hai An district People’s Committee required businesses that have imported and exported goods through the city’s ports to pay fee from the beginning of the year to quickly complete the payment. The deadline is September 15. The announcement by Hai An district also said if firms did not pay the fee by the deadline, they would be subject to administrative penalties stipulated under Decree 109/2013/NÐ-CP, dated September 24, 2013, on price management, fees and invoices. The district also said they would apply coercive measures on companies that did not follow the announcement. “Customs units, bonded port and warehouse trading firms in Hai Phong will not allow import-export goods through their seaports if companies do not pay the fee,” the announcement said. The district said most businesses have executed the resolution that came into effect from the beginning of this year, regulating fees for construction, infrastructure, service buildings and public utilities at ports. However, there were some companies that had not paid the fee. Under the resolution, individuals and organisations that have shipments stored at bonded warehouses must pay 2.2 million VND (97 USD) to 4.8 million VND (220 USD) per container, an increase of nearly 70 percent from the previous fee. The municipal People’s Committee said fee collection was legal and suitable with the current laws. In addition, the fee is half of that collected at the Lao Cai border gate, it said. Businesses, meanwhile, expressed their disagreement with the city’s resolution, saying the fees were unreasonably high and undermined their competitiveness. The Vietnam Private Sector Forum (VPSF) has proposed the municipal people’s committees conduct direct dialogues with businesses and associations to collect their ideas on the issue. In addition, associations also sent several documents to the Government to resolve the problem. Pham Thi Ngoc Thuy, VPSF’s deputy general secretary, said the short duration between the resolution’s promulgation and it coming into effect has made businesses passive, as all issues, including contract and price for the whole year, were negotiated and signed beforehand. The fee could make their export products’ prices higher, causing losses for businesses. Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the resolution could be a dangerous precedent for other localities which have seaports and airports to collect fees in the future, creating disadvantages for the country’s export activities. Hai Phong Port is the second-largest port in Vietnam with one third of total cargo passing through it.  Vinatex seeks investment opportunities in Armenia A delegation of the Vietnam National Textile and Garment Group (Vinatex) made a fact-finding trip to Armenia in late August to seek partners to develop production projects as Vietnam is the first country to sign a free trade agreement with the Eurasian Economic Union (EAEU) that includes Armenia. Vinatex General Director Le Tien Truong said during their stay, the group’s representatives held working sessions with a deputy foreign minister, the minister of economic development and investment, and some major businesses in Yerevan capital city of Armenia. He said Vinatex will consider production and business cooperation with big companies of Armenia that have already had distribution networks in Russia and the EU. In the initial stage, the group will mainly contribute machinery and production administration. At the meetings, the Armenian Government expressed its desire to cooperate with major firms with much experience in production management like Vinatex so as to revive the local garment industry and boost export. It also promised to encourage investment attraction, create favourable conditions for foreign investors, and provide special mechanisms for Vietnamese investors through cooperation policies, multilateral and bilateral cooperation agreements, and granting of work visas, Truong added. According to Vinatex, 94 businesses are operating in the textiles and garment industry of Armenia. The country exported 50 million USD and imported 170 million USD worth of textile and garment products in 2014. Despite their small and outdated scale, Armenian firms have experience in working with big fashion brands of Italy and Germany such as La Perla, Moncler, Armani and Porsche. The country has also benefited from a number of tax incentives thanks to free trade agreements when its products enter the Russian or EU markets. 2.7 million foreigners visit Quang Ninh in eight months     The northern province of Quang Ninh welcomed 2.7 million foreign visitors in the first eight months of 2017, up 20 percent from the same period last year. The figure contributed to a 16-percent annual increase of the total tourist arrivals in the province during the period, reaching 7.34 million. As a result, the local tourism sector reeled in nearly 11 trillion VND (484 million USD) in revenue, increasing 26 percent from last year. The outcomes were attributable to new tourism products, better policies for strategic investors in tourism infrastructure, and heavy fines on travel agents offering low-quality services.  According to a report from the provincial Tourism Department, in the upcoming National Day holiday (September 2 – 4), the province will receive more than 70,000 visitors, including 15,000 foreigners. Currently, all star-rated hotels in Ha Long city have been fully booked for the three-day vacation. Quang Ninh has a special geopolitical and economic position with the world natural heritage site of Ha Long Bay as well as more than 600 natural landscapes and historical relic sites. Ho Chi Minh City, Utah State vow to promote trade, high-tech links Ho Chi Minh City appreciates foreign resources which have helped with the city’s development into an economic, financial, trade and science-technology centre in the region, Chairman of the municipal People’s Committee Nguyen Thanh Phong told visiting Governor of the US State of Utah Gary Herbert during a reception on September 1.  Phong expressed his hope that Utah and Ho Chi Minh City will increase diplomatic activities and bilateral cooperation programmes for the common benefit of the two peoples.  He wished that Utah businesses would explore long-term business opportunities in the city in priority fields such as tourism and high technology.  Herbert, for his part, said Ho Chi Minh City and Utah share similarities in development history, cultural values, young population as well as challenges arising from growing urban population and environmental protection. The guest expressed his wish that Ho Chi Minh City would facilitate visits to share experience in developing clean energies, environment and education to improve local well-being.  On the occasion of the Utah governor’s visit, memoranda of understanding were signed on cooperation between the Saigon Hi-tech Park and the Utah State Centre for Research and Science-Technology, and between the Saigon Silicon Park company and the Utah World Trade Centre. Japanese firms seek investment opportunities in Vietnam The Vietnam-Japan Investment Cooperation Forum was held on September 15 in Yokohama by Kanagawa Prefecture in collaboration with the Ministry of Planning and Investment and the Embassy of Vietnam in Japan.  The event saw the participation of delegates from nearly 200 Japanese enterprises and more than 40 enterprises in Vietnam’s provinces of Dak Lak, Ha Nam, Hung Yen and Hau Giang. Speaking at the forum, Governor of Kanagawa Prefecture Kuroiwa Yuji spoke highly of Vietnam's investment environment with its abundant labour force, maintaining a high economic growth rate of over 6 percent, and its favourable policies, as well as improved administrative procedures.  Governor Kuroiwa Yuji expressed his hope through the forum that Japanese businesses will continue to invest more in Vietnam. Vietnamese Ambassador to Japan Nguyen Quoc Cuong said that the friendship Vietnam and Japan is the cornerstone of economic cooperation between the two countries, he added that Vietnam is becoming one of the most attractive investment destinations for Japanese businesses.  He thanked the Kanagawa Prefecture for organising the forum while praising the efforts of Governor Kuroiwa Yuji in contributing to better bilateral relations. Representatives from the provinces of Dak Lak, Ha Nam, Hung Yen and Hau Giang introduced their strengths, potential and incentives to Japanese enterprises. The presentation attracted the attention of many Japanese businesses. Kanagawa has a population of about 9 million, second only in Japan after Tokyo, with GDP of more than 300 billion USD. It is also one of Japan's most invested provinces by Vietnam. The province has its own industrial park in Hung Yen.- Shares mixed on EFT trading Shares declined on the HCM Stock Exchange on the last four days this week, but strong demand from local traders cushioned the market. The benchmark VN-Index inched down 0.06 percent to 805.82 points on September 15. It expanded 1.1 percent in the last three sessions. The market breadth was neutral with 130 stocks rising, 129 falling and 84 closing flat. Two exchange-traded funds (ETF) – FTSE ETF and V.N.M ETF – concluded trading for their third-quarter portfolio restructuring and this had a negative effect on the market as many large-cap stocks were in the list for sale of these two funds. Shares of Vietnam National Petroleum Group (PLX), Saigon Beer-Alcohol-Beverage (SAB) and budget airline Vietjet (VJC) were included in the FTSE Vietnam All-Share Index, but VJC closed unchanged while PLX and SAB decreased 0.15 percent and 0.18 percent, respectively. Meanwhile, Hoa Binh Construction Group (HBC) was included in the V.N.M ETF’s portfolio, but edged up just 0.33 percent. FLC was removed from the fund’s basket this time and dropped 0.4 percent. Other major stocks, although being increased or reduced weights in ETF’s portfolios, saw little changes. In recent years, ETF portfolio restructuring has not generated as great influence on the market as before. Vinamilk (VNM), VinGroup (VIC) and Masan Group (MSN) dropped 0.2-0.5 percent while steelmaker Hoa Phat Group (HPG) and FLC Faros Construction (ROS) rose by less than 1 percent. According to Vietnam Investment Securities Co, investors begin to pay attention to the stocks with promising business results in the third quarters. “The company keeps a cautious view on the market outlook, but opportunities are open to individual stocks,” it said in a note. Shares of real estate and securities companies attracted big money September 15 and most of them saw gains in value, including Saigon Securities Inc (SSI), HCM Securities (HCM), MB Securities (MBS), Novaland Investment Group (NVL), HCM City Infrastructure Investment, Dat Xanh Real Estate Service & Construction (DXG) and Dream House Investment (DRH). On the Hanoi Stock Exchange, the HNX-Index maintained the uptrend, up 0.1 percent to end at 104.49 points. It inched down 0.05 percent on the previous day. Liquidity changed little with a total of 218.3 million shares worth 4.8 trillion VND (211.4 million USD) in the two markets, down 6.3 percent in volume but up 6.7 percent in value compared to the previous session. Foreign investors were net sellers on the two exchanges September 15, offloading shares worth a combined 293.6 billion VND.  Auto prices slashed further Many car manufacturers in Việt Nam continue to apply discounts and promotions to stimulate purchasing. Insiders say slashing auto prices is reasonable in light of next year’s zeroeing-out of import tariffs from ASEAN member states. Along with inventory pressure, this has led manufacturers to cut back on profit to encourage consumption. After announcing a reduction of hundreds of millions of đồng for Honda CR-Vs, a run on the dealerships emptied out their stocks. In one month, the prices of luxurious SUV Honda CR-V 2.4 ATTG model, CR-V 2.4 A.T and CR-V 2.0 A.T have been dropped by VNĐ280 million, VNĐ330 million and VNĐ220 million, respectively. This has made way for the new model of the imported seven-seat CR-V series at nearly the same price as CR-Vs assembled in the country, without a discount (about VNĐ1.1 billion). Mitsubishi Motors Việt Nam (MMV) will continue to offer car price incentives this month of as much as VNĐ180 million (depending on the model). Trường Hải Auto Corporation (Thaco) also announced a price reduction of the Mazda CX-5 to less than VNĐ800 million, down about VNĐ200 million compared with previous months. Jumping on the bandwagon, other auto firms such as Nissan, Toyota Motor Vietnam (TMV) and Chevrolet also decreased prices of locally-assembled cars. TMV has recently announced its two-month promotion programme for locally-assembled models of Vios and Innova. Accordingly, the corporation will pay the vehicle registration fees of between VNĐ15 million and VNĐ30 million. Nissan, another brand name from Japan, will give buyers rebates of VNĐ5 million to VNĐ35 million and will also pay registration fees worth from VNĐ13.3 million to VNĐ29.8 million, in addition to providing an accessories package. The total value of the cuts applied on each Nissan Vietnam car is approximately VNĐ50 million. Prices of imported types of Toyota Fortuner and Yaris and of several types of Hyundai cars imported from Thailand, Malaysia and South Korea have remained stable. According to a report by the Vietnam Automobile Manufacturers’ Association released on Tuesday, auto sales dropped sharply in recent months. In the first eight months of this year, 177,038 units were sold, 10,825 fewer than last year in the same period. Sales of locally-assembled autos also dropped sharply as customers await next year’s anticipated tariff cancellation. This, combined with a preference for imported vehicles has resulted in a drop of 11 per cent of locally assembled cars, to 126,984 units in the first eight month of this year, whereas the number of imported vehicles rose 10 per cent to 50,052 units. Insiders say once locally assembled vehicles are sold out, car prices may rise again; if they drop due to the zero import tax, the price reductions will not be as sharp. Ngọc Thọ, a resident of Hà Nội, told the news website dantri.com.vn that despite the discounts, Vietnamese customers pay far more for their cars than the cars’ value. Thọ calculated that, the CX5 2.5, the most expensive version of Mazda CX5 in Việt Nam, is being sold at VNĐ899 million. To own the vehicle, customers will have to pay nearly VNĐ1.02 billion, including registration fees and insurance. Meanwhile, the most expensive CX5 version in other countries sells at VNĐ600 million. Phạm Anh Tuấn, head of the Vietnam Automobile Manufacturers’ Association (VAMA)’s Policy Sub-Committee, told the website that in fact, taxes in Việt Nam are highest compared to other countries in the region and also in the 21-nation Pacific Rim forum states. Taxes account for 40-50 per cent of the total value of a vehicle. The company only gets about 10 per cent of the profit, the dealer gets about 5 per cent of the total value of the car depending on the marketing and sales capabilities. Rice exports up significantly     Viet Nam has exported 3.87 million tonnes of rice worth US$1.66 billion in the first eight months of the year. According to the Viet Nam Food Association this represents increases of 17.7 per cent in volume and 16.6 per cent in value year-on-year. Asia remained the main market, accounting for 67 per cent of the shipments, as exports to mainland China, the Philippines, Malaysia, and Singapore increased. But exports to Hong Kong fell significantly. Africa was the second biggest market, accounting for 15.7 per cent of the exports, with the Americas and Australia being third and fourth. The association said high-grade white rice, fragrant rice and glutinous rice were the main export items. Viet Nam’s 5 per cent broken white rice is currently priced higher than Thailand’s but lower than India’s due to limited supply, he said. But the association said the price of common white rice would be reduced to compete with Thai rice to meet new demand. Huynh The Nang, the association’s chairman, said the summer-autumn rice crop has been harvested, with output being lower than expected, and large areas of newly planted autumn-rice crop are inundated and likely to be affected. Prices would remain high in the domestic market until the year-end due to limited supply, he added. The VFA said demand for common white rice and parboiled rice would continue to increase this year mainly driven by imports by Bangladesh, Sri Lanka, and the Philippines. Fragrant rice exports would be steady thanks to continuing demand from Africa and China and new demand from Iran and Iraq, it said. The market for long-grained white rice, speciality rice, sticky rice, and broken rice would continue to be dominated by China, while exports of Japonica rice would continue to rise and the variety promises to become one of the country’s key exports, with its main markets being countries in Oceania and China, it said. Exports are no longer based on demand for common white rice from traditional markets under government-to-government contracts, with enterprises actively promoting exports of speciality, high-quality, fragrant, sticky, and broken varieties, it added. Nang said despite difficulties, rice exports would rise this year. At a meeting it held on Wednesday the association fixed a export target of 1.8 million tonnes in the four remaining months to take the whole-year volume to 5.6 million tonnes. International livestock expo set to take place next year     The seventh international livestock, dairy, meat processing and aquaculture exposition will bring thousands of people to HCM City in March next year. More than 8,000 trade visitors are expected to participate and interact with 250 international brands from 30 countries. The exposition, Ildex Viet Nam 2018, is organised by Minh Vi Exhibition and Advertisement Services Co., Ltd. (VEAS) in collaboration with VNU Exhibitions Asia Pacific Co., Ltd. It will take place on March 14-16. The event is expected to see an increase in both visitors and exhibitors compared to those of 2016, when there were 7,000 visitors and 202 exhibitors. The area for the exhibition also grows from 6,000 sq.m. at the previous event to 7,500 sq.m. this time. The show be divided into areas of focus that include animal breeding and genetics, meat processing, animal equipment, farming, feed milling, animal health, animal feed, feed additives and animal nutrition. The exhibition will also present five country pavilions representing the Netherlands, France, the US, South Korea and China. The livestock and aquaculture industry is one of the primary economic sectors of our country. In the first half of 2017, it is expected to contribute 0.43 percentage points to the growth rate of the entire economy, according to the Department of Statistics. Officials at the kick-off conference in Hà Nội yesterday said technology will play an important role in the industry’s future. “Applying new technologies in breeding and aquaculture not only helps to develop the quality of products but also helps to reduce pollution and saving costs,” said Nguyễn Xuân Dương, deputy director of the Department of Livestock production under the Ministry of Agriculture and Rural Development. However, application of these technologies still has many limitations and the industry is currently inefficiently developing its potentials.” “I also believe that through this exhibition, businesses and companies will have opportunities to compare our proficiency with our competitors as well as find new partners for collaboration,” he added. “Business could also get chances to become an import agent or distributor for many international partners,” he added. Speaking at the conference, Nino Gruettke, managing director of VNU Exhibitions Asia Pacific Co., Ltd said that Viet Nam’s rising population, income levels, changing cultural preferences and new trade agreements had opened the door to significant growth in the meat industry. “The livestock market in Asia is growing rapidly and this trend is expected to continue in the foreseeable future,” the director said. “The important countries in Asia which have the rapid economic growth rate that global investors keep an eye on are the Philippines, Singapore, Thailand, Cambodia, Laos, Malaysia and Viet Nam.” He also noted that the global business trend now was how to integrate livestock and agribusiness together and drive business with IT, automation and Internet systems. Growing populations meanwhile demand agribusiness innovate quickly to keep up with demand. “This is the important point that all product business have to realise and find the solutions to increase the productivity and feed the world in the limited space,” he said. First int’l agro-forestry-fishery exhibition to be held in VN     The first International Agriculture–Forestry–Fishery Exhibition (Growtech 2017) will take place in Ha Noi from November 30 to December 2, the organisers have announced. Jointly organised under the chairmanship of the Ministry of Industry and Trade, with the Ministry of Science and Technology and Ministry of Agriculture and Rural Development, this is the first Growtech event to be held in the country. The exhibition is the largest and only specialised display of machinery, equipment and technology for farming, harvesting and preserving, bringing together major domestic and international enterprises operating and doing business in related fields. The exhibition offers opportunities for farmers, fishermen and workers in the forestry sector to experience the latest technology and activities in all three fields of agriculture, forestry and fishery. Besides displaying and demonstrating important innovation activities, Growtech also contributes to trade promotion in the three fields in Viet Nam. In the context of globalization, Viet Nam's increasingly active participation in free trade agreements is opening up more great opportunities for domestic businesses. Growtech was organised with the desire to develop a prestigious connection among industry players and to promote trade activities in the agriculture, forestry and fishery sectors. Furthermore, the exhibition aims to lead to more national development, with Viet Nam becoming a leading exporter of commodities, agricultural products and food and staying among the top-five exporters with a gradually increasing growth rate in the three sectors. Up to date, the exhibition has attracted the registration of 150 enterprises with more than 300 booths from businesses from all provinces and cities in Viet Nam, and 10 countries and territories with notable businesses from the UK, Italy, Czech Republic, Israel, Indonesia, Korea, Japan, China and Taiwan, among others. Hosted at the international ICE exhibition centre, it is expected to have around 450 booths and attract more than 10,000 visitors, delegates and specialists from more than 20 countries and territories, including Viet Nam. During 30 years of renewal (1986 - 2016), Viet Nam’s agriculture has achieved rapid and stable growth, with a positive shift in agricultural structuring. From 2016 to 2020, the agriculture-forestry-fishery industry in Viet Nam increased its added value with sustainable development; applied scientific and technical achievements to improve capacity, productivity and quality; promoted commodity production moving towards a modern market economy; and increased its competitiveness and maintained rapid development efficiently and safely to become one of the key leaders of national exports. Animal husbandry, fish processing, aquaculture, environmental protection and biodiversity conservation are some of the areas that are closely linked to the new national rural development strategy. Ford Vietnam Delivers Record August Sales     US auto maker, Ford Vietnam has announced a record August performance with retail sales rising 8 per cent year-over-year to 2,292 vehicles. The EcoSport, Ranger, Transit and Explorer led the record sales month with each leading their respective segments for the month and year-to-date. Ford Vietnam remains on track for another record full-year performance with year-to-date sales increasing 3 per cent to 19,081 vehicles. “Our showrooms across the country remained busy despite the retail impact typically associated with ghost month [Lunar July], and our best-selling nameplates continued to drive our overall performance,” said Phạm Văn Dũng, managing director, Ford Vietnam. Ranger delivered August retail sales that increased 16 per cent to 1,183 vehicles, as it continues to lead the country’s pickup truck segment. Ranger’s year-to-date sales have risen 4 percent to 9,475 vehicles. Demand continued in August for the premium Explorer mid-size SUV, which again led its segment for the month with retail sales of 82 vehicles. Year-to-date sales of the US-imported Explorer have now reached 891 vehicles. The Transit maintained its leadership of commercial van and bus segment in Việt Nam with August retail sales of 558 vehicles, driving year-to-date sales up to 4,092 vehicles. The Everest mid-size SUV achieved August sales of 98 vehicles, driving its year-to-date sales to 836 vehicles. The EcoSport compact SUV delivered August retail sales of 260 vehicles, pushing its year-to-date sales up to 2,658 vehicles and maintaining its segment leadership. The sporty Focus passenger car saw its August sales rise 17 per cent to 84 vehicles, with year-to-date sales now up 26 per cent to 790 vehicles. Annual Sony Show opens in HCM City     The three-day Sony Show which opened in HCM City on Friday is showcasing the Japanese giant’s latest products and most advanced technologies. The annual event, dubbed “Experience to the Max” this year, offers consumers a chance to experience Sony’s new technologies. The Xperia XZ1 smartphone, recently launched in Germany, is among the latest products on show. The phone has 3D technology which permits users to take 3D photos. The Bravia OLED 77-inch TV is on display for the first time in Viet Nam. The show is a good destination for game lovers, who can go to Playstation booths to play games like Farpoint, Destiny 2, Knack 2, Tekken 7, PES 2018, and GT sport. Many cameras and headphones are on display. Dance and music competitions will be organised to attract young customers. A game competition will also be held. The event is on at the Youth Cultural Centre in District 1. VN-Index corrects downwards     Large-cap stocks slumped on Friday morning, pulling the VN-Index down 0.25 per cent at 804.34 points. This is the first decline of the southern market in the last four days. The market breadth was negative on the HCM Stock Exchange as the decliners outnumbered the advancers by 123-107, while 113 remained flat. Blue chips led the downturn, with 18 of the top 30 largest shares by market value and liquidity decreasing and only 10 increasing. Losers expanded from banks (Vietcombank, BIDV, Vietinbank and Military Bank) and energy (PV Gas, PetroVietnam Drilling and Wells Service) to retailers (FPT Corp and Mobile World Group) and food-beverages (Vinamilk and Sabeco). Some shares bucked the trend and supported the market, including steelmakers Hoa Phat Group and Hoa Sen Group, VinGroup, FLC Faros Construction, DHG Pharmaceutical and insurer Bao Viet Holdings. On the Ha Noi Stock Exchange, the HNX-Index was still up 0.14 per cent at 104.53 points. Liquidity dropped substantially when only 106.2 million shares, worth a total of VND1.9 trillion (US$81.7 million), were traded in the two markets, down 23.6 per cent in volume and 29 per cent in value from Thursday’s morning session. The afternoon trade session starts at 1 pm. VNPost to divest from its member company     Viet Nam Post Corporation (VNPost) will auction its stake of 8.79 million shares in Post and Telecommunications Tourism Joint Stock Company, equivalent to 90.22 per cent of the charter capital. The auction will take place at the Ha Noi Stock Exchange on September 28. The total value of shares offered for sale is VND87.9 billion (US$3.87 million), with the starting price of VND18,500 per share. Established in 2001, Post and Telecommunications Tourism Joint Stock Company has initial registered capital of VND120 billion. Currently, the company owns charter capital of VND97.51 billion, of which VNPost holds 90.22 per cent. The company focuses on providing hotel and restaurant services, organising travel tours, and managing transportation and consultation services. According to the enterprise’s valuation results, the total value of the company’s assets is VND194.66 billion, while liabilities is VND14.67 billion and the remaining value of the enterprise is VND179.99 billion, of which cash and short-term investments account for VND66 billion. In 2017, the company has targeted net revenue of VND56 billion and after-tax profit of VND3.2 billion. Seminar discusses Dong Nai property     With its favourable location, good infrastructure and moderate land prices, the southern province of Dong Nai has become the focus of attention of property developers in recent years, a seminar heard in HCM City on Thursday. Le Trong Minh, editor–in-chief of Dau Tu newspaper, said Dong Nai is a good choice for home buyers who cannot afford to buy in HCM City and are looking at neighbouring provinces. Dong Nai lies on many important traffic routes such as National Highways 1A and 20; National Road 51; the HCM City –Long Thanh-Dau Giay, Ben Luc-Long Thanh, Dau Giay-Phan Thiet, Dau Giay-Da Lat, and Bien Hoa-Vung Tau highways; and the north-south railway, he said. HCM City’s first metro route would be extended to the province’s Bien Hoa city, he said. The province now is home to nearly 300 property projects by both local and foreign investors, many of them worth billions of dollars, he said. Su Ngoc Khuong, property consultant Savills’ investment director, said the province itself has nearly 100km of railway and six stations. Besides, its property market got a boost from the Government’s approval for Long Thanh International Airport, he said. Convenient transportation is the top factor in property investment, he said. Land for construction purposes has attracted more investment than other segments, with investors eyeing the future, he said. Nguyen Thanh Lam, deputy director of Dong Nai Province Department of Construction and chairman of the Dong Nai Property Association, said the property market in the province is divided into three groups. The first group includes projects connected with the existing urban areas like Bien Hoa city, Long Thanh, Trang Bom, and Long Khanh.Those property projects require only short-term investment. The second group are properties located in the suburbs of towns and cities, with technical infrastructure connected to the main technical infrastructure under development. The projects required investment between 5-7 years, he said. The third group comprises projects around the Long Thanh Airport, with a total of 21,000ha. Secondary investors that want to invest in those areas should have strong financial capacity to minimise risks, he said. "I think, investing in the first and second property groups will be the most effective, and can get profits immediately while investing in the third group will take longer time because of lack of planning," he said. Le Hoang Chau, chairman of the HCM City Real Estate Association, said the Government has approved construction of the Cat Lai Bridge 2 between District 2 and Nhon Trach in Dong Nai. “In five more years, thanks to this bridge, the property market in Nhon Trach will take off and this is an opportunity for investors.” He hoped the project would be carried out on schedule. But the market also has risks and requires investors to find reliable source of information before buying, he said. “Recently we have received complaints from 300 people about two real estate brokerage firms who used tricks such as renaming projects and developers, forging 1/500 zoning plans and adding details to them to inflate land prices by VND100-200 million per plot.” The projects are located in Nhon Trach, Long Thanh and Trang Bom, he said. Lam said the two are registered in HCM City, and the Ministry of Public Security is investigating. Tran Thi Cam Tu, general director of Eximrs Real Estate Services JSC, said: “This is a promising market to invest in.” But she said investors should not rush but instead should check the title deeds of properties carefully to avoid risks. Improved status of women vital for economic growth: Deputy PM Economic growth can only be sustained if the status of women is improved, Deputy Prime Minister Phạm Bình Minh said at a Việt Nam-Laos-Cambodia women’s forum held yesterday in HCM City. The forum was held to promote friendship and cooperation among the countries to realise the UN’s Sustainable Development Goals by 2030. The deputy PM, who is also Việt Nam’s Minister of Foreign Affairs, said that peace, cooperation and development would continue to be “the dominant trend in the coming time, of which women play a vitally important role”. “The UN agenda to 2030, the first historic agreement reached globally on sustainable development, in which the central task is gender equality, is bringing unprecedented opportunities to promote cooperation and to enhance the role of women,” Minh said. The Asia-Pacific region continues to be an engine of global growth while the ASEAN community is implementing a vision to 2025 with a focus on people, of which women are an indispensable part of the community. “Therefore, the contributions of women, especially in our three countries, will help build a stronger ASEAN Community and realise the ASEAN Vision,” he said. However, challenges remain, including the risk of war and conflict around the world. Global economic growth has become unstable and is slowing down, requiring economies to seek new growth drivers. Meanwhile, 90 per cent of global economies continue to maintain at least one discriminatory policy or regulation on women. Around 2.3 million women worldwide do not have access to the internet. In the ASEAN region, gender inequality is causing a loss of 18 per cent of ASEAN’s GDP each year, which is equal to half a billion US dollars, according to Minh. The forum was organised on the occasion of the 50th anniversary of diplomatic relations between Việt Nam and Cambodia, the 55th anniversary of diplomatic relations between Laos and Việt Nam, and the 40th anniversary of the signing of the Việt Nam-Laos Friendship and Cooperation Treaty. Nguyễn Thị Thu Hà, chairwoman of the Việt Nam Women’s Union Central Committee, said that women’s unions from Việt Nam, Laos and Cambodia were planning to increase the number of exchanges and educational programmes among the countries. Speaking on the sidelines of the forum, Men Sam An, Cambodian deputy prime minister, who is also head of the Cambodian Women for Peace and Development Association, said: “Cambodia and Việt Nam have cooperated in poverty reduction, vocational training for women, as well as health, education and anti-trafficking activities, contributing to the building of a border of peace, friendship and development.” Inlavanh Keobouphanh, president of the Laos Women’s Union, told Việt Nam News that the Lao government had long enacted a policy of promoting gender equality “as enshrined in the constitution and laws as well as legal documents, including related international treaties and the introduction of policy documents.” Both Cambodian and Lao delegates said they hoped that Việt Nam would continue assisting the three countries’ women to carry out exchanges, share experiences and promote women’s roles in each nation’s development. Ha Long attractive to real estate, tourism firms With high per capita income and an increasingly synchronised infrastructure system, the tourism hub of Ha Long city in the northern province of Quang Ninh has become an attractive investment destination for many real estate and resort investors. Ha Long is a must-go place for those who spend holidays in Vietnam, in particular Quang Ninh province, as it is home to Ha Long Bay, a World Natural Heritage Site, which was recognised by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). Ha Long Bay has been named one of the seven natural masterpieces of the world. With its strength, Ha Long has a lot of opportunities to grow into a leading tourism hub of the Southeast Asian region. In the 2011-2016 period, the GDP growth of Quang Ninh province was 1.5 times higher than the country’s average, reaching 10.1 percent in 2016. The locality has recorded a per capita income of over 4,050 USD, which enabled it to stand in the list of the country’s top localities having highest per capita income. Under the province’s planning to 2030, Quang Ninh has set to become one of the three economic locomotives of the northern region along with Hanoi and the port city of Hai Phong. It also targets a per capita income of 8,000 USD-8,500 USD in 2020 and 20,000 USD in 2030. In the recent five years, Quang Ninh in general and Ha Long in particular have attracted many domestic real estate giants, including Vingroup, Sungroup, Bim, and FLC, with some outstanding projects, including the 6.5 trillion VND Ha Long Ocean Park of Sungroup, the 7.5 trillion VND Van Don airport, which is designed to serve 2 million passengers per year, and Vinpeal of Vingroup. Foreign firms have also shown their interest in Ha Long city, including Wyndham and Starwood of the United States. The Wyndham Legend five-star hotel has 217 rooms and Sehraton Halong Bay provides 330 rooms and apartments. These real estate facilities have mostly focused on resort and hotel segments, looking to prepare for welcoming the increasing number of tourists to the province and Ha Long. Last year, Ha Long welcomed 6.3 million tourists and earned 7.7 trillion VND (over 338 million USD) in revenue, respective increases of 14 percent and 65 percent from the previous year. About 2.7 million of the visitors were foreigners, a year-on-year growth of 16 percent. The number of tourists to this city also increased sharply from the outset of 2017, surpassing 660,000 during the Lunar New Year holiday alone – up 15 percent from the same period last year. The municipal administration said it has worked to diversify and improve tourism products, upgrade infrastructure, and better tourism workers’ capacity. The sense of responsibility of local residents and service providers has also been improved. Ha Long also helped to organise some activities of the Ha Long-Quang Ninh Tourism Week, the Yen Tu cherry-yellow apricot flower festival, Ha Long Carnival, the festival of Tran Quoc Nghien Temple, and a spring flower festival, thereby creating interesting tourism products. One fifth of enterprises to expand workforce in Q3 Around one fifth (20.1 percent) of enterprises plan to expand their workforce in the third quarter, according to the latest newsletter on the labour market update released by the Ministry of Labour, Invalids and Social Affairs (MoLISA) on September 15. The newsletter said the forecasted 6.9 percent GDP increase in Q3 will have positive impacts on the labour market. In addition, the higher number of newly-established enterprises in the first 8 months of the year helped stimulate the demand on the market. The manufacturing-processing industry is projected to employ 320,000 more workers in the third quarter, the construction industry – 136,000 more workers, and transport-warehouse – 169,000 more workers. Other industries likely to offer more jobs include garment making, leather and leather products, computer and electronic appliance, and furniture making. In the second quarter, the labour market saw a slight increase in the number of employed persons and paid workers. The number of employed persons was 53.4 million, up 164,300 compared to one year ago and up 39,700 from the previous quarter. The rate of paid worker continued to be on the rising trend, reaching 42.7 percent. Around 6.21 million people worked in the non-State business sector, up 38,000 from the previous quarter. Among industries reporting increases in employed workers, the construction industry posted the greatest rise with 166,000 more labourers, followed by education-training with 49,000, electricity production and distribution with 19,000, and finance-banking-insurance with 18,000. Some industries showed decreases in their workforce, led by manufacturing-processing with 74,000 cut workers, transport and warehouse with 34,000, and mining also with 34,000. The number of people of working age without jobs stood at around 1.08 million, down 20,100 from Q1 and down 7,100 compared to one year ago. The rate of unemployment among people of working age dropped to 2.26 percent, the lowest for the past five quarters. However, the unemployment rate among those holding under-graduate and higher degrees rose to 3.63 percent (the figure for Q1 was 2.79 percent). Party official: Vietnam attaches importance to free trade agreements Vietnam attaches special importance to free trade agreements with foreign partners in general and the EU – Vietnam Free Trade Agreement (EVFTA) in particular, said Politburo member Nguyen Van Binh, who is head of the Party Central Committee’s Economic Commission. During a reception in Hanoi on September 15 for Chair of the European Parliament’s Committee on International Trade (INTA) Bernd Lange, Binh appreciated the guest’s contribution to developing Vietnam – EU trade and investment ties over the past years, particularly speeding up EVFTA negotiations. Discussing the signing and ratification of the EVFTA and related political, trade and economic matters, Binh said Vietnam wants the EU to build a roadmap for technical support to Vietnam and make it easier for the two countries’ businesses to access information and survey each other’s market. He asked the INTA and Bernd Lange himself to continue supporting ties with Vietnam, especially facilitating the signing and ratification of the EVFTA. Lange expressed his optimism about the development of the Vietnam – EU multifaceted ties, particularly in trade and investment. He lauded Vietnam’s efforts to reform and restructure the economy, as well as to develop a market economy in tandem with ensuring social progress and fairness, while widely and effectively integrating into the global economy, including the EU. The EU always attaches importance to reinforcing ties with Vietnam, he said, adding that the INTA backs the EVFTA signing. He also pledged to actively facilitate the approval of the deal. Rice export goal raised to 5.6 million tonnes this year The Vietnam Food Association (VFA) revised up the goal of rice export to 5.6 million tonnes this year from the 5.2 million tonnes set in July thanks to a strong rise in contracts signed during August and positive signs of the market. In the first eight months this year, the country exported more than 3.8 million tonnes of rice with free on board (FOB) value of 1.66 billion USD, up 17.7 percent in volume and 16.6 percent in value, respectively, on a yearly basis. August saw a surge of 70 percent in volume and 56.8 percent in FOB value of rice shipments. During the eight months, businesses signed export contracts amounting to 5.1 million tonnes, more than 1.2 million tonnes of which are yet to be delivered. Positive signals were also seen in the shipment of glutinous rice to China. Dang Thi Lien, Director of the Long An food company, said China has demand for 300,000 tonnes of glutinous rice between now and the year’s end while Vietnam can meet only 20-25 percent of them so export prices could continue to rise later this year. Export of jasmine rice has also performed well. VFA Chairman Huynh The Nang said China, Bangladesh and the Philippines remain potential rice importers of Vietnam. Apart from African countries, new markets such as Iran, Iraq are likely to buy Vietnamese jasmine rice while japonica rice is gaining more popularity in Australian continent and China. Dong Nai records 1.4 billion USD trade surplus in eight months The southern province of Dong Nai enjoyed a trade surplus of nearly 1.4 billion USD in the first eight months of the year, according to the provincial Statistics Office. In the eight-month period, the province shipped nearly 11 billion USD worth of products to foreign countries, a year-on-year increase of 11 percent. The trade surplus was contributed by key staples like footwear (1.9 billion USD, up 9.4 percent), garments (over 1 billion USD, up 8.2 percent) and wooden furniture (722 million USD, up 12.3 percent). The provincial People’s Committee said that the footwear sector has witnessed the highest export turnover in the past years. Foreign direct investment (FDI) companies like Changsin, Taekwang Vina and Pouchen have enjoyed sound and stable growth. They are committing to raising production capacity to meet orders from the world’s big footwear brands in the coming time. Despite facing fierce competition with Chinese, Indian and Bangladeshi enterprises, Vietnamese garment businesses still ensure stable orders thanks to their prestige and product quality. Regarding wooden products, numerous firms have sought new markets while taking advantage of the free trade agreements signed with the Republic of Korea and Japan to boost their exports. Meanwhile, several products saw high export growth like fibre (795 million USD, up 25.6 percent), machines and equipment (670 million USD, up 22.9 percent), computers and electronic products (318 million USD, up 22.8 percent). High export prices of agricultural products also contributed to the province’s export revenue. The largest importers of Dong Nai goods in the period were the US with revenue of 2.54 billion USD, China with 944 million USD and Japan with 934 million USD.- Hai Phong told to revise fee collection Deputy Prime Minister Vuong Dinh Hue has asked the Ministry of Finance and Hai Phong city to strictly follow the PM’s instruction on reviewing fees for using infrastructure, service facilities and public utilities at ports in the city. The Government Office has sent Document 9014/VPCP–KTTH to the city’s People’s Committee to convey the Prime Minister’s instruction on the issue. The previous document from the Government in May said adjustments in fees were needed to ensure they are reasonable, comply with the law and create favourable conditions for import and export firms, as per Government resolutions on improving the business climate. The document was sent right after the municipal Hai An district People’s Committee required businesses that have imported and exported goods through the city’s ports to pay fee from the beginning of the year to quickly complete the payment. The deadline is September 15. The announcement by Hai An district also said if firms did not pay the fee by the deadline, they would be subject to administrative penalties stipulated under Decree 109/2013/NÐ-CP, dated September 24, 2013, on price management, fees and invoices. The district also said they would apply coercive measures on companies that did not follow the announcement. “Customs units, bonded port and warehouse trading firms in Hai Phong will not allow import-export goods through their seaports if companies do not pay the fee,” the announcement said. The district said most businesses have executed the resolution that came into effect from the beginning of this year, regulating fees for construction, infrastructure, service buildings and public utilities at ports. However, there were some companies that had not paid the fee. Under the resolution, individuals and organisations that have shipments stored at bonded warehouses must pay 2.2 million VND (97 USD) to 4.8 million VND (220 USD) per container, an increase of nearly 70 percent from the previous fee. The municipal People’s Committee said fee collection was legal and suitable with the current laws. In addition, the fee is half of that collected at the Lao Cai border gate, it said. Businesses, meanwhile, expressed their disagreement with the city’s resolution, saying the fees were unreasonably high and undermined their competitiveness. The Vietnam Private Sector Forum (VPSF) has proposed the municipal people’s committees conduct direct dialogues with businesses and associations to collect their ideas on the issue. In addition, associations also sent several documents to the Government to resolve the problem. Pham Thi Ngoc Thuy, VPSF’s deputy general secretary, said the short duration between the resolution’s promulgation and it coming into effect has made businesses passive, as all issues, including contract and price for the whole year, were negotiated and signed beforehand. The fee could make their export products’ prices higher, causing losses for businesses. Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the resolution could be a dangerous precedent for other localities which have seaports and airports to collect fees in the future, creating disadvantages for the country’s export activities. Hai Phong Port is the second-largest port in Vietnam with one third of total cargo passing through it. Vinatex seeks investment opportunities in Armenia A delegation of the Vietnam National Textile and Garment Group (Vinatex) made a fact-finding trip to Armenia in late August to seek partners to develop production projects as Vietnam is the first country to sign a free trade agreement with the Eurasian Economic Union (EAEU) that includes Armenia. Vinatex General Director Le Tien Truong said during their stay, the group’s representatives held working sessions with a deputy foreign minister, the minister of economic development and investment, and some major businesses in Yerevan capital city of Armenia. He said Vinatex will consider production and business cooperation with big companies of Armenia that have already had distribution networks in Russia and the EU. In the initial stage, the group will mainly contribute machinery and production administration. At the meetings, the Armenian Government expressed its desire to cooperate with major firms with much experience in production management like Vinatex so as to revive the local garment industry and boost export. It also promised to encourage investment attraction, create favourable conditions for foreign investors, and provide special mechanisms for Vietnamese investors through cooperation policies, multilateral and bilateral cooperation agreements, and granting of work visas, Truong added. According to Vinatex, 94 businesses are operating in the textiles and garment industry of Armenia. The country exported 50 million USD and imported 170 million USD worth of textile and garment products in 2014. Despite their small and outdated scale, Armenian firms have experience in working with big fashion brands of Italy and Germany such as La Perla, Moncler, Armani and Porsche. The country has also benefited from a number of tax incentives thanks to free trade agreements when its products enter the Russian or EU markets.   Work starts on first Vietnamese automobile manufacturing complex Prime Minister Nguyen Xuan Phuc attended a ceremony in the northern port city of Hai Phong on September 2 to start the construction of the first Vietnamese automobile manufacturing complex in Dinh Vu – Cat Hai economic zone. Invested by Vinfast manufacturing and trade Ltd company - an affiliate of real estate developer Vingroup, the complex is expected to roll out a five-seater sedan model, a seven-seater sport utility vehicle model, and electric motorbike meeting European standards during the first stage. The designed capacity is estimated at 100,000 – 200,000 vehicles per year. Its first product in the next 12 month will be electric motorbike model while automobiles will be made in the next 24 months. The complex will cover a site of 335ha with five major workshops. Design of engines and major components will be bought from top European and US designers while exterior shape will be designed by famous Italian studios that were behind luxury cars such as Alfa Romeo, Aston Martin, Audi, Bentley, Jaguar, Porsche, Rolls-Royce, among others. Vinfast will use advanced and eco-friendly technologies, particularly green energy, to meet Euro 5.0 and Euro 6.0 emission standards. In order to make itself a leading automobile manufacturer in Southeast Asia with a designed capacity of 500,000 units by 2025, Vinfast signed a memorandum of understanding with Credit Suisse AG regarding a loan worth 800 million USD. Vinfast will also work with Vietnamese partners to manufacture spare parts, towards raising the rate of locally-made products to 60 percent. Speaking at the event, PM Phuc said the project could generate 20,000 jobs and contribute to the province’s State budget. The birth of Vinfast complex marks Vietnam’s position in the map of the world automobile manufacturers, and Vingroup’s foray into heavy industry apart from its six core areas of real estate, tourism-entertainment, retail, health, education and agriculture. Lam Dong announces 300-billion-VND plan to build post-harvest centres Lam Dong has issued a plan to build more post-harvest centres during the 2017 – 2020 period, with investment surpassing 300 billion VND (13.2 million USD). Of the sum, 12.7 billion VND (558,800 USD) are sourced from the State budget, while 293.1 billion VND (12.89 million USD) is from investments of participating businesses, organisations and individuals. Under the programme, from now to 2020, the Central Highlands province will assist the establishment of between four and six centres for post-harvest processing and preservation of farm produce. Annual processing capacity of each facility is set to range from 50,000 to 12,000 tonnes. The operation of these centres will increase the rate of properly processed farm produce by 25-30 percent and reduce post-harvest loss rate to below 10 percent. Potential participants of the programme include enterprises, cooperatives, and households in Da Lat city and the districts of Lac Duong, Don Duong, Duc Trong, and Lam Ha. Once selected, they will be supported in technology transfer, trade promotion, and quality management. Air routes linking Hanoi, Da Nang and Japan’s Osaka launched The budget carrier Jetstar Pacific Airlines officially launched direct air routes linking Hanoi, Da Nang city and Japan’s Osaka city on September 1. With the launch, Jetstar became the first low-cost airline to offer direct service between Vietnam and Japan. The airline operates four round trips per week using the 180-seater Airbus A320 on the two routes. One-way tickets have been sold from mid-June priced from 68.18 USD, exclusive of taxes and fees. Nguyen Quoc Phuong, Jetstar Pacific Director General, said that more than 20,000 tickets for both routes have been booked so far. The two first flights reported an occupancy of over 90 percent. At present, there are about 16,000 Japanese people living and working in Vietnam, while around 180,000 Vietnamese are living and working in Japan. Last year, Vietnam welcomed more than 740,000 Japanese tourists, and the number is expected to grow, especially with the launch of the low-cost air services. Jetstar Pacific, a member of Jetstar Group, one of the Asia Pacific’s largest low-budget carriers, is flying on 37 domestic and international routes. It has two major stakeholders – Vietnam Airlines and Qantas Airways. Efforts made to control disease safety in shrimp exported to Australia The Ministry of Agriculture and Rural Development (MARD) recently issued a decision on tightening the control of disease safety and food safety for shrimp and shrimp products exported to Australia. Specifically, businesses have to take measures to control risks of white spot and yellow head diseases in material shrimp before processing. For processed shrimp, businesses should send samples of each batch to laboratories appointed by the MARD for disease tests. Certificates of qualified batches should be submitted to the National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad) for food safety checks in line with Australia’s regulations. The Nafiqad is also responsible for issuing certificates to each batch of export goods. The MARD assigns the department to guide businesses in how to implement the procedures. In addition, exporters and processors have to ensure the origin tracking dossier of each batch. On January 7, the Australian Department of Agriculture and Natural Resources announced the suspension of prawn and uncooked shelled shrimp imports from Asian nations, including Vietnam, in fear of white spot disease outbreaks in Australia. The ban took effect on January 9 and lasts for six months. In June, the department lifted the ban. Last year, Vietnam exported 114.6 million USD worth of shrimp products to Australia, of which processed shrimp made up 78 percent of the total. Gas prices, transport costs for Block B - O Mon project signed Agreements on wellhead gas prices and transport costs for Block B – O Mon gas project were signed in Hanoi on September 1. The deals were inked between the Vietnam Oil and Gas Group (PetroVietnam), PetroVietnam Exploration Production Corporation (PVEP), and PetroVietnam Gas Joint Stock Corporation (PV Gas), Japan’s Mitsui Oil Exploration Co. Ltd. (MOECO) and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP). Speaking at the signing ceremony, PetroVietnam General Director Nguyen Vu Truong Son said the project has a quite complicated geological structure, which requires exploitation methods similar to other gas projects in the Gulf of Thailand. In July, PetroVietnam submitted a gas field development plan to the Ministry of Industry and Trade, under which the exploitation needs up to 1,000 drilling wells and 50-60 oil rigs, he said. The signing of the agreements creates an important premise for the involved parties to soon reach necessary trade deals for the project, he added. Vietnamese Deputy Minister of Industry and Trade Cao Quoc Hung said Block B – O Mon is one of the two biggest gas projects in Vietnam, with a total investment of 10 billion USD. With an annual output of 5 billion cubic meters, the project will supply crude gas for O Mon power centre and Ca Mau gas-power-fertilizer complex. Particularly, with estimated total revenue of 47 billion USD, the project is expected to contribute around 18 billion USD to the State budget. The provision of gas from this project will help the south-western region boost development of industries and ensure energy security for the nation.  Over 3.1 trillion VND raised from Government bonds The Hanoi Stock Exchange (HNX) raised more than 3.1 trillion VND (136 million USD) through 17 auctions of Government bonds issued by the State Treasury in August, down 79 percent against the previous month. While five-year bonds were sold with an annual interest rate of between 4.6 percent, those for seven-, 10- and 15-year bonds are 4.8 percent, 5.38 percent and 5.75 percent respectively. Meanwhile the 30-year bonds bear the respective interest rate of 6.1 percent. Compared to the previous month, the August interest rates dropped 0.12 percent for five-year and 30-year bonds and 0.15 percent for seven-year bonds while those for 10-year and 15-year bonds remained unchanged. In the secondary market, the total trading volume of Government bonds sold outright reached over 902.5 million bonds worth more than 99.5 trillion VND, a monthly decline of 10.3 percent. The volume of G-bonds sold through repurchase (repo) agreements was estimated at over 1,186 million bonds valued at over 119 trillion VND, a month-on-month increase of 20.4 percent. Foreign investors made outright transactions worth over 4.9 trillion VND in purchase value and over 5.5 trillion VND in sale value. They also had repo selling of over 98.9 trillion VND and no purchasing repo transaction this month. First batch of Vietnamese chicken to depart for Japan in Sept The first shipment of Vietnamese chicken will be dispatched to Japan by sea on September 9. Koyu & Unitek Co., Ltd, a joint venture between Australia and Japan in southern Dong Nai province, will ship 30 tonnes of chicken wings, thighs and breasts to Japan, which are expected to arrive in Tokyo in 10 days. The company has signed a long-term contract with the Japanese side in which Japan will import about 300 tonnes of chicken products per month, said Director General of the firm James Hieu. According to Hieu, Japan imports over 900,000 tonnes of poultry products annually. In fact, Koyu & Unitek falls short of its Japanese partner’s real demand which exceeds 2,000 tonnes per month. The firm plans to increase capacity in the future by enhancing cooperation with farmers to raise chickens and expanding processing facilities. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET