BUSINESS IN BRIEF 26/9 Registered capital of new enterprises surges in first nine months More than 29,900 enterprises were established with total registered capital of nearly VNĐ396.5 trillion (US$17.44 billion) in HCM City in the first nine months of the year, according to the city’s People’s Committee. This was an increase of 13 per cent in the number of newly established businesses and 84.5 per cent in registered capital, with most of the new businesses located mainly in districts 1, Tân Bình, Gò Vấp, Bình Thạnh and Bình Tân. In addition, more than 44,000 operating companies have pledged an additional registered capital of VNĐ218.3 billion, up 11.2 per cent and 49.6 per cent, respectively, compared to the same period last year. Overall, the total registered capital of new and operating companies in HCM City in the first nine months was VNĐ614.8 billion, a year-on-year increase of 70.4 per cent. More than 17,500 new firms are one-member limited liability companies, accounting for 58.6 per cent of the total, followed by limited liability companies with two or more members, joint-stock companies (11.9 per cent) and 404 private companies (1.4 per cent). Real-estate service and trading companies had the largest registered capital with more than VNĐ156.6 trillion, accounting for 39.5 per cent of the city’s total, representing an increase of nearly 75 per cent year-on-year. Auto and motorbike repair and sales companies made up 16.2 per cent with over VNĐ64.3 trillion, up 66.6 per cent, and construction had over VNĐ52.8 trillion, a twofold increase over the same period last year. Notably, the science and technology, design consultancy and marketing sectors saw over VNĐ29.5 trillion registered capital in the period, a twofold year-on year increase. The city, which targets having 500,000 operating enterprises by 2020, is assisting and encouraging business households to become official enterprises. Nearly 1,400 business households are now official enterprises. IDICO to launch IPO next month The Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) under the Ministry of Construction will launch its initial public offering (IPO) on the HCMC Stock Exchange (HOSE) on October 5. At the seminar “Opportunities to invest in IDICO shares” in HCMC last week, Dau Minh Thanh, head of the Business Management Department of the Ministry of Construction, said the starting price of IDICO shares would be VND18,000 instead of VND11,000 as originally planned. The firm was evaluated for equitization on December 31, 2014 but the plan for the firm to go public had not been approved until June 2017, or three years and a half later. During this period, some projects invested previously have brought about economic gains such as Dak Min 3 hydropower plant, prompting a re-evaluation. Therefore, IDICO was valued again and its shares were set at VND15,000-16,000 each. However, some experts said the share price should be VND23,000-27,000, so IDICO decided to set the price of VND18,000 to attract investors. The company will offer 55.3 million shares, or 18.44% of chartered capital. IDICO general director Nguyen Van Dat said the company has received deposits of three large investors among 12 firms keen on its shares. Investors chosen to buy its shares must support IDICO in market development, technology and management within 10 years from the date of the IPO. After the IPO, these strategic investors will hold 135 million shares of IDICO, equivalent to 45% of chartered capital, and the State stake will be reduced to 36% or 108 million shares. IDICO had equity of VND2.9 trillion while its total assets were valued at VND12.8 trillion by June 30. The firm expects to fetch VND5.02 trillion in revenue this year. IDICO, developer of industrial zone infrastructure, currently has 10 industrial parks with a total area of over 6,000 hectares, four hydropower plants, and other traffic and urban development projects. In the 2017-2019 period, IDICO has invested nearly VND7 trillion in energy, industrial park, urban residential area and traffic projects. Deputy Minister of Construction Bui Pham Khanh told the seminar that three other State-owned enterprises under the management of the ministry would also launch IPOs soon. WB offers Vietnam US$4 billion loans The World Bank (WB) will provide loans totaling US$4 billion for Vietnam in the 2018-2020 period, with US$2.2 billion from the International Development Association (IDA), and the remainder from the International Bank for Reconstruction and Development (IBRD). Do Viet Dung, a senior WB expert in Vietnam, talked about the loans at the announcement ceremony of the Vietnam-WB partnership framework last Friday in the Mekong Delta province of Dong Thap. Dung said the formulation of loan and financial support plans depends on both the supply side (WB) and the demand side (Vietnam). In particular, as Vietnam’s economy has been progressing beyond the poverty threshold, it will borrow IBRD loans at an interest rate higher than those of IDA. The IDA loans of around US$2.2 billion will be subject to those requirements similar to the IBRD loans, with fewer incentives in the next three years compared to previously. “This (higher interest rate) can affect Vietnam’s demand for loans in the coming time. (That demand) can reduce given rising public debts now,” he said. Meanwhile, according to him, the amount of IBRD loans to Vietnam depends on its economic and financial growth. He added the loan program which was released in a document to delegates at the ceremony was still sketchy and will therefore be adjusted later. Set up in 1945, IBRD aims to erase hunger and maintain the sustainable growth of developing countries whose per capita income is relatively high through loans, guarantees, and grants for studies and consulting services. Interest rates for loans are based on the London Interbank Offered Rate, and adjusted every six months. Established in 1960, IDA offers financial support to the world’s poorest countries to help reduce poverty by providing interest-free loans and grants for programs and projects that fuel economic growth, reduce inequality, and improve people’s living conditions. Eligibility for IDA support depends on a country’s relative poverty, defined as gross national income per capita below an established threshold and updated annually, currently at around US$1,135. As of 2016, the average income in Vietnam has exceeded US$2,200. Therefore, the country no longer enjoys IDA incentives but to switch to IBRD loans. Techcombank, Manulife cut bancassurance deal Techcombank and Manulife Vietnam have sealed an exclusive 15-year bancassurance agreement, the first partnership converting from non-exclusive to exclusive in Vietnam after four years of cooperation. According to a statement released last week, the cooperation enables Manulife Vietnam to distribute life insurance solutions to all Techcombank customers, targeting insurance premiums collected over the next five years to be over VND10 trillion. This new partnership combines Techcombank’s extensive banking network and Manulife Vietnam’s insurance expertise to give customers one-stop financial centers for both banking and insurance solutions in Vietnam. Techcombank’s current base of over 1.4 million retail customers and future customers may access Manulife Vietnam’s comprehensive life insurance solutions through the bank’s nationwide network of over 300 branches. Customers will experience a combination of Techcombank’s premium service and benefit from Manulife’s strong financial foundation and global experience. In addition to Manulife Vietnam’s existing product suite, Techcombank and Manulife Vietnam will focus on developing new tailor-made products to best suit the needs of Techcombank’s customers. Nguyen Le Quoc Anh, CEO of Techcombank, said this partnership is a part of its comprehensive strategy of providing the most comprehensive financial solutions to meet the Vietnamese consumer’s increasing needs for financial services. Manulife, the largest life insurer in Canada, has one of the most diverse and rapidly growing footprints of any financial services company in Asia, with a 120-year track record and more than eight million customers across 12 markets in the region. Manulife first established a presence in Vietnam in 1999. HCMC sees upsurge in registered capital of new enterprises HCMC has seen over 29,900 enterprises established with total registered capital of nearly VND396.5 trillion (about US$17.44 billion) in the year to date, up 13% and 84.5% respectively compared to the same period last year, according a just-released report of the HCMC People’s Committee on the city’s socio-economic performance. In addition, more than 44,000 operational companies have pledged an additional VND218 trillion in registered capital, up 11.2% and 49.6% respectively compared to the same period last year. Overall, the total registered capital of startups and operational companies in HCMC in January-September was nearly VND614.8 trillion, up 70.4% year-on-year. Over 17,500 startups are single-member limited liability companies, accounting for 58.6% of the total. There have also been nearly 8,400 limited liability companies with two or more members, accounting for 28%, nearly 3,600 joint stock companies, 11.9%, and 404 private companies, 1.4%. Real estate service and trading companies have had the largest registered capital, with over VND156.6 trillion, accounting for 39.5% of the city’s total and increasing by nearly 75% year-on-year, while auto and motorbike repair and sales companies made up 16.2% with over VND64.3 trillion, up 66.6%, and construction has had over VND52.8 trillion, a two-fold increase year-on-year. Notably, the science and technology, design consultancy and marketing sectors saw over VND29.5 trillion of registered capital in January-September, increasing by two times versus the same period last year. To achieve the goal of having 500,000 operational enterprises in 2020, the city has assisted and encouraged business households to transform themselves into firms. Up to now, nearly 1,400 business households have successfully turned into enterprises. Regarding foreign direct investment, in the nine-month period, 593 projects have been granted investment certificates with total capital of US$925 million. Besides, 164 operational foreign-invested projects have committed more capital, with over US$690 million. The processing and manufacturing industry has attracted the most investment with more than US$471 million, accounting for 51% of the city’s total and increasing six times compared to the same period last year, followed by retail, auto and motorcycle repair and sales, and real estate service and trading. The U.S. emerged as the biggest investor in HCMC in the first nine months with nearly US$250 million, accounting for 27% of the city’s total, followed by Singapore, South Korea, Taiwan and Japan. Reference exchange rate goes up on September 26 The State Bank of Vietnam set the daily reference exchange rate for VND/USD at 22,456 VND per USD on September 26, up 8 VND from the previous day. With the current trading band of /-3 percent, the ceiling rate applied to commercial banks during the day is 23,129 VND and the floor rate 21,783 VND per USD. The opening hour rates at commercial banks on September 26 saw slight fluctuation. Vietcombank raised both rates by 5 VND, listing the buying rate at 22,700 VND and the selling rate at 22,770 VND per USD. Meanwhile BIDV kept its rates unchanged from September 25 at 22,700 VND (buying) and 22,770 VND (selling) per USD. The rates listed by Techcombank also remained the same as the previous day at 22,680 VND (buying) and 22,780 VND (selling) per USD. Stocks end mixed on investor caution Vietnamese shares were mixed on September 25 with low trading liquidity as investors remained unsure of the stock market’s prospects. The benchmark VN Index on the HCM Stock Exchange inched down 0.19 percent to close at 805.58 points, retreating from Friday’s gain of 0.4 percent. On the Hanoi Stock Exchange, the HNX Index gained 0.77 percent to end at 107.34 points, extending its positive direction for a fourth session with total growth of 2.5 percent. More than 213.4 million shares were traded on both stock markets, worth 4.05 trillion VND (180 million USD). September 25’s trading numbers were down 21 percent in trading volume and 18.6 percent in trading value compared to the previous session. The market breadth was negative as declining stocks outnumbered gaining ones by 269 to 191 while 108 others closed unchanged. Large-cap stocks performed badly with 19 of the 30 largest stocks on the VN30 Index declining. The VN30 Index tracks the performance of the 30 largest listed companies by market capitalisation and liquidity. Decliners on the VN30 Index included FLC Faros Construction (ROS), Thanh Thanh Cong Tay Ninh Sugar JSC (SBT), brewer Sabeco (SAB) and Bình Minh Plastic JSC (BMP). Among those stocks, ROS, SBT and BMP were hit by investor selling after they had made strong gains in previous sessions. ROS slumped 6.5 percent after it had enjoyed a seven-day rally of total 12 percent, SBT dropped 4.2 percent following its two-day increase of 2 percent and BMP fell 1.6 percent. Among speculative stocks, KLF Joint Venture Global Investment JSC (KLF) plunged 9.7 percent after it posted strong growth last week. KLF had soared more than 52 percent in the previous seven sessions. On the positive side, gaining stocks included Sacombank (STB), consumer goods producer Masan Group (MSN) and DHG Pharmaceutical JSC (DHG). MSN jumped 4.8 percent to extend its gains for a second session after the company announced on September 21 that it would buy back maximum 10 percent of the shares that are available on the stock market. Bao Viet Securities Company (BVSC) said in its daily report that the benchmark VN Index is forecast to move narrowly around the level of 806 points in the next few sessions. Investor sentiment was weak, proven by the trading liquidity that remained lower than the average of the previous 21 sessions while losing stocks continued to outnumber gaining ones, BVSC said, adding that investors were clearly cautious and were running out of patience with the market’s prospects. Quang Ninh fosters tourism cooperation with Chinese locality A conference was held in Ha Long city on September 25 to boost tourism connection between Vietnam’s northern province of Quang Ninh and China’s Guangxi Zhuang Autonomous Region. During the event, Quang Ninh’s Ha Long and Mong Cai cities and Guangxi’s Dongxing and Guilin signed a memoranda of understanding (MoU) on tourism development. Accordingly, the localities agreed on general cooperation principles and mechanism to expand tours, and commitments to service quality, among others. Representatives from the localities briefed on their potential and advantages. Ha Long underlined its potential for sea and island tourism development, with the highlight being the UNESCO-recognised World Heritage site of Ha Long Bay while Mong Cai city introduced its cultural, sea-island, and border tourism development. The two Chinese localities also introduced their potential for cultural, resort, border tourism development. Over the past years, the four localities have gained significant achievements in tourism cooperation. The effectiveness is yet to match the potential. The two sides need to boost their exchange and connection to develop their own special products. More communications and advertisement campaigns should be launched, while state management on tourism should be strengthened, and experience exchanged. Foreign direct investment in HCM City surges 64 percent A conference to boost connection among  tourism destinations of Vietnam’s northern province of Quang Ninh and China’s Guangxi Zhuang Autonomous Region in Ha Long city on September 25. During the event, Quang Ninh’s Ha Long and Mong Cai cities and Guangxi’s Dongxing and Guilin signed memoranda of understanding (MoU) on tourism development. Accordingly, the localities agreed on general cooperation principles, mechanism to expand tourism journeys, and commitment on service quality, among others. Representatives from the localities briefed their potential and advantages. Ha Long boasted its potential for sea and island tourism development, with the highlight of the UNESCO-recognised World Heritage site of Ha Long Bay. Mong Cai city introduced its cultural, sea-island, and border tourism development. The two Chinese provinces also introduced their potential for cultural, resort, border tourism development. Over the past years, the four localities have gained significant achievements in tourism cooperation. The effectiveness is yet to match the potential. The two sides need to boost their exchange and connection to develop their own special products. Communication work should be conducted while strengthening state management on tourism, and exchanging experience. Can Tho aims for 8 percent GRDP growth by 2020 The Mekong Delta city of Can Tho is striving for an average Gross Regional Domestic Product (GRDP) of 7.5-8 percent per year by 2020, said Director of the city Department of Planning and Investment Nguyen Van Hong. The figure was released at a meeting between Can Tho leaders and a working group from the Steering Committee for Southeastern Region on the outcomes of five-year implementation of the Politburo’s Conclusion 28-KL/TW on solutions to socio-economic development and security and defence of the Mekong Delta region for the 2011-2020 period. Along with the target of 11 billion USD in total exports in the 2015-2020 period, Can Tho also expects a budget collection rise of 11 percent per year, he said. The city’s annual poverty reduction is hoped to reach 1.5 percent per year, he said, adding that Can Tho aims to have all 36 communes to be recognised as new-style rural areas. At the meeting, the municipal Party Committee proposed that the Government soon issue a legal document defining regulations on special mechanisms regarding investment, finance, budget and decentralization for Can Tho, while allocating capital for the building of important transportation projects connecting Can Tho and other localities in the region, including My Thuan-Can Tho bridge, the upgrade of the National Highway 91. Son Minh Thang, Vice Chairman of the Steering Committee for Southeastern Region lauded Can Tho’s efforts and achievements in implementing Conclusion 28, making it the political, economic and cultural driving force of the region. Thang asked the city to roll out measures to attract more investment to further promote its socio-economic development. Earlier, the committee also inspected underway and planned projects and works in the city. Vietnam, India cooperate in shipbuilding Cooperation in shipbuilding between Vietnam and India was the focus of discussion at a workshop jointly hosted by the Ministry of National Defence, the Vietnam Chamber of Commerce and Industry (VCCI), and the Embassy of India in Vietnam in the northern port city of Hai Phong on September 25. The event provided a chance for Vietnamese and Indian shipbuilding companies to meet and seek long-term partners. Director of the VCCI’s Hai Phong branch Phi Van Duc said to continue expanding economic-trade-investment relations between the two countries, Vietnam has sent many senior delegations to India to study cooperation opportunities as well as welcomed a number of Indian delegations. India, with over 1.2 billion people, is a promising market for Vietnamese firms, he noted. The workshop was expected to enhance the competitiveness of Vietnamese enterprises in the regional and international integration, so that they can expand their markets to India. The same day, delegates visited an Indian naval ship anchoring at the Chua Ve port in Hai Phong. Vietnam, Hungarian businesses seek cooperation opportunities Vietnamese and Hungarian businesses had a chance to step up their cooperation in such areas as information-technology and high-tech agriculture at a forum in Hanoi on September 25. The Vietnam-Hungary Business Forum took place on the occasion of Hungarian Prime Minister Viktor Orban’s official visit to Vietnam from September 24-25. Addressing the event, Pham Thi Thu Hang, General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI), highlighted the thriving trade ties between the two countries, with total two-way trade in 2016 reaching 266 million USD, up 35.7 percent. Of the figure, Vietnam’s export to Hungary hit 93 million USD, representing an increase of 41 percent.  In the first four months of this year, the bilateral trade was 104.4 million USD, a rise of 8.3 percent against the same period last year. Vietnam’s export to Hungary stood at nearly 50.6 million USD, up 102 percent, and its import was 53.8 million USD, up 69 percent. However, Vietnam just ships computers, electronics, means of transportation, spare parts, garments-textiles and footwear to the European country. The participating Hungarian enterprises operate in agricultural services, mechanics in service of agriculture, food processing, industrial waste treatment, heavy and light industries, health care, IT, banking, architecture and construction materials and household utensil production. Jamniczky Zsolt, a representative of E.ON Company, Hungary’s leading energy provider, said his company wants to study the Vietnamese market to invest in energy and energy equipment, especially solar power. Some Hungarian firms said they are seeking skillful and blue-collar labourers to work in Hungary.     Dong Nai records 1.7 billion USD in trade surplus The southern province of Dong Nai enjoyed a trade surplus of 1.7 million USD in the first nine months of 2017, according to Director of the provincial Department of Industry and Trade Duong Minh Dung. The export turnover was estimated at 12.5 billion USD in January-September, a year-on-year rise of 11 percent, while the import was 10.8 billion USD in the period. With the current growth momentum, Dong Nai is likely to earn 17 billion USD from exports and enjoy a trade surplus of over 2.2 billion USD this year. The province’s export products mainly came from foreign direct investment (FDI) sector with key ones such as garment-textile, footwear, timber products, fibre, electronics and computers. Currently, Dong Nai is shipping products to over 100 countries and territories, focusing on the US, China, Japan, the Republic of Korea, Hong Kong (China), Belgium, and Germany.     Aquatic products expected to rake in 9 billion USD by 2020 Vietnam expects to achieve 6 percent growth in aquaculture and 9 billion USD from aquatic product exports by 2020. The goals were set in the targeted programme on sustainable fishery development for the 2016-2020 period recently approved by Prime Minister Nguyen Xuan Phuc. The programme prioritises aquaculture development through enhancing research capacity and modernising breeding production system with a focus placed on key staples like tra fish, shrimps, molluscs, tilapia fish and clam. The Good Agricultural Practices (GAP) will be applied in key seafood farming areas which have comprehensive infrastructure in the Mekong Delta, Red River Delta and central coastal localities. The move aims to ensure that all farming zones will meet advanced standards on quality and food safety and hygiene. Infrastructures for the zones must suit socio-economic and environmental conditions in coastal areas and three monitoring centres will be built to oversee the environment’s quality and warn aquatic diseases. Regarding aquatic product processing and trade development, the fishery sector will prioritise products with high added value, branches out trade marks for shrimps, tra fish, molluscs, tilapia fish and tuna. It will recover and develop traditional aquatic processing villages, control quality of processed products to meet demands of both domestic and foreign markets as well as address trade barriers. The targeted programme also sets the protection of aquatic resources as a key mission for the fishery sector. Cambodia learns Vietnam’s planning experience Leaders of the Mekong Delta province of Hau Giang on September 25 held a working session with a delegation of the Cambodian Ministry of Planning led by Minister of State Hou Taing Eng. The Cambodian delegation has been on a two-day working visit to Vietnam until September 26 to exchange experience with the Ministry of Planning and Investment (MoPI) in making local planning schemes. Speaking at the event, Chairman of the provincial People’s Committee Lu Van Hung said the sharing of experience in making local-level planning schemes between the two ministries via working sessions in Hau Giang will contribute to further strengthening bilateral ties. Hou Taing Eng, for his part, said the two ministries have been cooperating with each other since 2009, adding that Cambodia want to acquire Vietnam’s experience in devising local plans and internal inspection. Representatives from the MoPI’s Department of Local and Territorial Economy talked about how to make socio-economic development planning schemes from the central to local levels while the ministry’s inspectors shared experience in internal inspection. Ca Mau boosts tourism cooperation with Thai province The southernmost province of Ca Mau wants to bolster cooperation, especially in tourism and investment with Thailand’s Trat province, said Vice Chairman of provincial People’s Committee Tran Hong Quan. The official made the statement during a meeting on September 25 with a delegation from Thailand led by Vice Governor of Trat province Prathan Surakitbovon. At the meeting, the two sides introduced to each other their respective provinces’ potential and advantages, including famous travel destinations, notable cultural traits and cuisine. They also shared some experiences in tourism development and examined possibilities for cooperation in trade, tourism and investment. Popular tourist destinations in Ca Mau include the Ca Mau Cape National Park and the Ca Mau Cape which is Vietnam’s southernmost tip, among others. WIPO supports Vietnam in developing intellectual property A project on enabling intellectual property (IP) environment funded by the World Intellectual Property Organisation (WIPO) will be implemented in Vietnam from 2018 to 2022 with the aim to develop intellectual assets and technological advances in the country. Within the framework of the project, an advanced training course on technology transfer and a conference on interviews with universities and research institutes were kicked off in Ho Chi Minh City on September 25. The training courses will last until September 29, providing participants with knowledge and skills on negotiating and drafting technology transfer contracts, assessing prices of intellectual assets, and making policies related to technology transfer. Meanwhile, the conference is scheduled to take place in the city on September 25-26, and a similar conference will be organised in Hanoi on September 28-29. During these events, WIPO officials will introduce the “Hub and Spoke” Structure and officially select units to participate in the project. At present, the National Office of Intellectual Property of Vietnam is connecting a network of 30 Technology and Innovation Support Centres (TISC) at universities and research institutes, of which 20 units have registered to join the project aided by WIPO. The Ministry of Science and Technology is coordinating with relevant ministries and agencies in building a national intellectual property strategy in order to improve the country’s IP system that facilitates creativity, attract investment and boost technology transfer and popularisation.     Vietnam, Cuba’s trade unions strengthen traditional friendship The Vietnam General Confederation of Labour (VGCL) and the Central Union of Cuban Workers (CTC) have signed a Memorandum of Understanding (MoU) on specific activities to promote the bilateral relations. The signing took place at talks between President of the VGCL Bui Van Cuong and Secretary General of the CTC Ulises Guilarte de Nacimiento as part of Cuong’s visit to Cuba from September 22-24. The visit aims to exchange experience and information in trade union activities with Cuba, thus contributing to deepening the special solidarity between Vietnam and Cuba, Cuong said. Guilarte de Nacimiento expressed his pleasure to welcome the VGCL delegation and took the occasion to thank the Vietnamese Party, State and workers for supporting Cuban people in the past and at present. The VGCL President presented 25,000 USD in cash and computer sets to Cuban workers affected by the recent storm Irma. In an interview granted to the Worker weekly newspaper, the mouthpiece of CTC, Cuong highlighted the special bond between the two countries’ people and workers, which was nurtured by Presidents Ho Chi Minh and Fidel Castro Ruz. He expressed his readiness to share experience with Cuba to develop trade unions in non-State economic sectors where the VGCL attaches great importance to protecting the legitimate rights and interests of workers, ensuring social welfare, fair wages, labour safety, working environment conditions, and entertainment rights. During his visit to Cuba, Cuong also met with head of the Communist Party of Cuba Central Committee’s Department of External Relations Jose Ramon Balaguer Cabrera. SHB offers new preferential package to SMEs The Saigon Hanoi Commercial Joint Stock Bank (SHB) recently announced that it will launch a 2.5 trillion VND (109.9 million USD) credit package with preferential interest rate from 6.5 percent per year for small- and medium-sized enterprises (SMEs). The package will be divided into two programmes, “Giving strength to business” and “Quick financing by area”. The “Giving strength to business” programme targets businesses in 17 industries, including medicine, pharmaceutical chemistry, rubber, plastic, fertiliser, electronics, communication equipment, garment and textile, footwear and farm produce. Loans are mostly short terms, at less than six months, designed to help firms promote production and business activities in the last months of the year. Meanwhile, the “Quick financing by area” programme is built based on specific socio-economic situations of the Southeast, South central, Mekong Delta, Central Highland, North central and Red River Delta regions and Ho Chi Minh City. SMEs in those regions are able to access to loans at the minimum interest rate of 6.5 percent for terms of up to 12 months. According to SHB General Director Nguyen Van Le, SMEs are among targeted customers of SHB in the bank’s development strategy. The bank has designed a line-up of preferential programmes and initiatives to back this group of firms, including financial consultancies, helping businesses seek customers and market, loan restructuring and enterprise shake up. The solutions have increased SHB’s credit quality while boosting SME development in Vietnam. Cotton Day connects Vietnam, US firms The Vietnam Textile & Apparel Association (VITAS) and the US Cotton Council International (CCI) recently held the Cotton Day in Ho Chi Minh City to help Vietnamese apparel businesses to approach the US market. The event created an opportunity for US firms to evaluate the potential of the spinning and textile industry in Vietnam, according to VITAS President Vu Duc Giang. He expected US businesses to propose policies for the US government to support the spinning and textile industry in Vietnam, especially in establishing cotton bonded warehouses in Ho Chi Minh City and the northern port city of Hai Phong, which will help Vietnam access US high-quality cotton products. According to VITAS, Vietnam earned 19.8 billion USD from exporting garment-textiles in the first eight months of 2017, a year-on-year rise of 9.9 percent. The sector hopes to rake in about 30.5 billion USD in export turnover in 2017. Vietnam’s cotton imports surged over the past 10 years from 150,000 tonnes in 2005 to about 1.2 million tonnes in 2016, with US cotton making up a large proportion. In the first seven months of 2017, Vietnam imported 808,000 tonnes of cotton worth 1.47 billion USD, year-on-year rises of 32.6 percent and 58 percent respectively. The US accounted for 60 percent of the market share. The CCI granted licenses to 12 Vietnamese businesses using the COTTON USA ™ label to pave the way for apparel exports to the US and help customers recognise high-quality products. Poor planning hinders central region growth: Deputy PM The Government is concerned about the poor coordination and infrastructure undermining the major development potential of Vietnam’s 11 central localities, Deputy Prime Minister Vuong Dinh Hue told 500 business people and officials at the 2nd Central Coastal Economic Forum in Da Nang on September 25. “Many efforts have been recorded by the regional coordination management board since the first forum was held in 2014. However, poor connection of strategic traffic roads, including the National Highway, Coastal Highway, Ho Chi Minh Trail and north-south railway, have prevented the region from fast growth,” Hue said. Favourable connection of roads, airports, sea ports and economic and industrial zones will create more power for the region in the coming decades, he added. He suggested the forum discuss how to build an effective mechanism for cooperation among the provinces to boost their advantages in marine economy and tourism, saying the region could contribute as much as 70 percent to the country’s economic growth. The head of the Vietnam Institute of Economics, Tran Dinh Thien, said the development of the coastal central region has not reached its target since the regional coordination management board was established six years ago. “More than 40 industrial zones (IZs) and six economic zones (EZs) were built in the region, but income per capita in the region is not much higher than the country’s average income,” Thien said. “A lack of international-standard centres for sports, shopping, trade, night recreation and finance has hindered the region from becoming an attractive destination for international tourists.” Thien also pointed to the lack of coordination among provinces as a major hindrance to economic growth. Thua Thien-Hue province had developed the Chan May-Lang Co deep-sea port in the region but neighbouring Da Nang plans to build its own Lien Chieu port as a key logistics centre just 20km away. “Each province plans to build its own deep sea port, international airport or industrial zones, while no connections are planned to share the advantages of infrastructure investment,” he explained. The coastal central region has six airports, 13 seaports, six coastal economic zones, a high-tech park and 14 national roads. Thien suggested the region should be restructured, based on the advantage of each province. “We can arrange several provinces with the same advantages (sea ports, airports and economic zones) in a sub-zone,” he suggested. Tran Du Lich, head of the central region’s Development Consultancy Council, said the region has tremendous potential for marine economy development – ship-building, fisheries, logistics, coastal economic zones, and island and sea tourism. Dr. Huynh The Du from Fulbright University Vietnam said many provinces offer free land rent to attract investors, but investors are never punished for failing to move forward with promised projects or for long delays. He also suggested the region needs only one deep-sea port. A quick survey presented by economist Vo Tri Thanh at the forum showed that nearly 80 percent of participants agreed that poor connections and underdeveloped links among provinces in the region are major barriers to growth. The central coastal region had an average growth of 8.4 percent, earning revenues of 5.8 billion USD last year. Solar power producer has high hopes for US     IREX Energy Joint Stock Company (JSC), a member of the Bach Khoa Solar Energy Group (SolarBK), has won orders to provide comprehensive solutions on solar power for customers during the Solar Power International Exhibition at the Mandalay Bay Conference Centre in Las Vegas, Nevada, which was held from September 10 to 14. Executive Director of IREX, Dong Van Sen told Viet Nam News that the orders were taken during the exhibition. He said IREX was the only Vietnamese company taking part in the biggest solar power exhibition in the world. The company will offer a One-Stop-Shop package, including solar power cells, panels, installation, a smart monitoring system (Solar System Operation Centre) and guarantees for customers in North America. Sen said orders would reach a capacity of 300MWp (photo-voltaic cells), 40 per cent of total capacity of the company’s high-tech renewable energy device factory in the southern Ba Ria-Vung Tau Province. “It’s the first time we have joined in the world solar-power exhibition attended by 18,000 members and 650 businesses from 80 countries. We believe our made-in-Vietnam renewable energy industry will enter deeper into the market in the coming years,” Sen said. He said the company has opened a representative office in the US to provide service and guarantees for customers in the tough market. He added IREX solar panels had been exported to many countries, including the Netherlands, Singapore, Turkey and the US market. IREX Energy JSC, founded in 2012, began construction of a high-tech renewable-energy device factory complex in Ba Ria-Vung Tau costing US$17 million last year. The complex, which includes a renewable energy factory and a research and development centre aims to boost development of the solar industry in Viet Nam and exports to the US and European markets. The company has been developing solar-powered water heaters, wind power turbines, solar power-driven sea water filter systems and renewable use solutions. Hungarians want to invest in VN     Energy, high-tech agriculture and information technology are the new investment fields discussed yesterday at the Viet Nam-Hungary Business Forum held within the framework of Hungarian Prime Minister Viktor Orban’s visit to Viet Nam. Hungarian business representatives expressed interest in varied investments in Viet Nam, ranging from bio-fungicides for agriculture to transmission lines protection. Jamniczky Zsolt, representative of Hungary’s E.ON company, said his company looks forward to exploring the Vietnamese market for investment and cooperation opportunities in energy production and equipment, especially of solar power. Total bilateral trade turnover between the two countries reached US$266 million in 2016, up 35.7 per cent from 2015. Viet Nam’s exports to Hungary reached $93 million, a 41 per cent increase, including textiles and garments, footwear, computers, electronic components, transportation vehicles and spare parts. Viet Nam’s main imports from Hungary include pharmaceutical products, machinery, spare parts, chemicals, and animal feed. Computers, electronic products and components make up a major part of the total traded value at nearly $20.6 million, accounting for 40.7 per cent of total exports. Automobiles and accessories account for 3.9 per cent of bilateral trade, reaching nearly $2 million, albeit down by 13.3 per cent from 2015. Textile and garment products are new additions to the list of exports to Hungary, reaching over $1 million, followed by the footwear segment at $0.3 million, a sharp increase of 106 per cent year on year. According to the Ministry of Foreign Affairs, trade turnover in the first six months of 2017 between the two countries reached $145 million, up by more than 60 per cent from the same period last year. In terms of investment, Hungary has installed 15 valid foreign direct investment (FDI) projects in Viet Nam with a total registered capital of $50.66 million, ranking 55th among 105 countries and territories with direct investment in the country. Nonetheless, Nguyen Dang Bela, a Hungarian-Vietnamese businessman with many years experince in high-tech agriculture, said at yesterday’s forum that the biggest difficulty of joint ventures between Viet Nam and Hungary is the lack of established brand names in foreign markets. At the moment, the majority of Vietnamese products, such as coffee, sold in supermarkets in Hungary are not traded under the brand name of any Vietnamese company, which does not satisfy Hungarian consumers’ demand for Vietnamese trademarked goods and needs improving at the earliest, said Bela. The forum’s discussion was attended by representatives of 50 leading Hungarian enterprises in the fields of agriculture and agricultural mechanical engineering, agri-food processing, agricultural waste treatment, medical healthcare, information technology, banking, architecture, and construction. It was organised by the Viet Nam Chamber of Commerce and Industry (VCCI), the Hungary Trade House, and the Hungarian Embassy in Ha Noi. State Bank licenses MS Finance     The State Bank of Viet Nam (SBV) last Friday licensed the establishment of MB Shinsei Finance Limited Liability Company (MS Finance). MS Finance’s charter capital is VND500 billion (US$22 million), of which Military Bank owns 50 per cent, Japan’s Shinsei Bank Ltd has 49 per cent and Xuan Thanh Construction and Development Company owns 1 per cent. Under this licence, the finance company, whose operation can continue for 50 years, is allowed to engage in activities performed by consumer credit finance companies in accordance with Viet Nam’s law, such as mobilising funds through deposits of the organisation; issuing certificates of deposits, promissory notes, bills and bonds to raise funds of organisations; borrowing loans from credit institutions, financial institutions at home and abroad in accordance with the law; and borrowing from SBV in the form of refinancing according to SBV’s law. The company is also permitted to grant credit in the following forms – loans, including installment loans and consumer loans; discount, rediscount of negotiable instruments and other valuable papers; along with issuing credit cards. It can act as an insurance agent and provide consulting services in the fields of banking, finance and investment, as well as provide services of managing and preserving assets of customers. VietBank to change savings funds into transaction offices     The State Bank of Viet Nam (SBV) has allowed Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) to change 11 savings funds into transaction offices in HCM City. This was established under Document No 7541/NHNN-TTGSNH issued by the SBV last week. VietBank was also permitted to establish two branches in HCM City. The SBV requires VietBank to be responsible for implementing the procedures of inaugurating, registering and publicising the branches and transaction offices, in line with Circular No 21/2013/TT-NHNN dated September 9, 2013, on the operational network of commercial banks and other applicable legal texts. The approval will cease to be effective if VietBank does not inaugurate the offices within 12 months from the date of signing, SBV noted. VietBank currently has 100 transaction offices located at the main economic regions of the country. It last year also successfully converted 19 savings funds into transaction offices in HCM City, Ha Noi, Khanh Hoa and Ba Ria-Vung Tau. SeABank gets new general director     Nguyen Canh Vinh will take charge as the new general director of the Southeast Asia Joint Stock Commercial Bank (SeABank) from September 25. Prior to this, Vinh was Techcombank’s deputy general director. He replaces Dang Bao Khanh, who resigned as the bank’s general director from July 5, reported the online newspaper ndh.vn. After Khanh’s resignation, the Board of Directors appointed Le Van Tan, SeABank’s Deputy General Director, to take over the reins till a new general director was appointed. Born in 1974, Vinh graduated from the National Economics University and the National University of Civil Engineering. He also has a master’s degree from Latrobe University. Vinh has 21 years of experience in banking and finance, and has held many senior management positions, particularly in the retail sector. KIDO Foods to trade on UPCoM     KIDO Foods (KDF), the frozen foods subsidiary of KIDO Group, has obtained approval from the Ha Noi Stock Exchange (HNX) to trade 56 million shares on the Unlisted Public Company Market (UPCoM) under stock code KDF. KIDO Foods will start trading on September 28 at the starting price of VND60,000 (US$2.64) per share. According to the group’s latest report, KIDO Group sold 2,688 million shares of KDF under the put-through method from August 24 to August 28, 2017. After trading, the group still holds 36.4 million shares, equivalent to 65 per cent of capital at KDF. Currently, KDF’s products are divided into three main brands -- ice-cream Merino, high brand ice-cream Celano and yogurt Welyo. Until August 25, 2017, the number of shares held by foreign investors was 3,927,000 shares, accounting for 7.01 per cent of the charter capital, while domestic shareholders held 52.073 million shares, equivalent to 92.99 per cent. The company has three founding shareholders -- Kido Group holds 36.4 million shares, accounting for 65 per cent, Tran Kim Thanh and Tran Le Nguyen hold 156,000 shares, representing 0.28 per cent. According to Euromonitor’s report, KDF held 25.5 per cent share of the ice cream market in 2010, 36.4 per cent in 2014 and 34.7 per cent at the end of 2016. In the first six months of 2017, the company’s net revenue reached over VND778 billion, after-tax profit reached nearly VND82 billion, fulfilling 40.47 per cent and 40.95 per cent of the business plan, respectively. This year, the company estimated revenue of nearly VND1.83 trillion and after-tax profit of VND200 billion. The firm also targets holding 50 per cent share of Viet Nam’s ice cream market by 2020. In 2016, KIDO Foods expanded to 10,000 retail outlets, bringing the total to 70,000 points nationwide, while expanding distributors to the district level instead of only the provincial level. Happy All Technology JSC launches social networking app Azibai     Happy All Technology JSC launched Azibai, a social networking business, with applications for Android and IOS on September 22. The outstanding features of Azibai are a full-fledged business social network that optimises a range of business activities like marketing, sales, administration, customer care, is simple and easy to use and very practical and has a modern, user-friendly interface. With this interface and features, Azibai is geared towards a wide variety of users to help their businesses easily develop systems. In addition, businesses can access as well as create jobs for those who lack the opportunities or conditions to optimally use their capabilities. Suppliers, wholesalers and retailers of goods and services have an optimal tool for development, management and operation to achieve goals such as developing a nation-wide distribution chain and creating their own e-commerce trading platform. Customers will get perfect service when ordering, making payment, shipping orders, and making collections on the Azibai app. The creation of the app marks a tie-up between Azibai and G-market of South Korea. Azibai also becomes the exclusive distributor and retailer for G-market in Viet Nam. Azibai is confident of becoming a research unit and supplier of business development applications in Viet Nam.     G-bond transactions on sharp rise Total government bond (G bond) transaction value hit more than 1.5 quadrillion VND (65.9 billion USD) in the first nine months of the year, up 42.4 percent year-on-year, according to the Hanoi Stock Exchange (HNX). The value of G bonds in outright transactions was calculated at 778.5 trillion VND (34.2 billion USD) while sales in repurchase transactions reached 734.6 trillion VND (32.3 billion USD). Average transaction value in the period stood at 8.56 trillion VND per auction, 1.35 times higher than the same time last year. Notably, there were many transaction sessions worth over 10 trillion VND (439.9 million USD) per auction, even 15 trillion VND (659.8 million USD) recorded on June 22. The HNX said that Vietnamese G-bond market has experienced robust growth in recent years, represented through the increase of repurchase transaction value which occupied 48.2 percent of the total while the last year’s figure was only 40 percent. Foreigners have also become more interested in Vietnam’s G-bond market, spending 95.4 trillion VND (4.2 billion VND) on G bonds during January-September. They posted a net buy value of 20.66 trillion VND (908.8 million USD), up 162 percent from 2016. That was an improvement compared to total foreign investors’ net sell value of 4.4 trillion VND (193.6 million USD) made in 2015.     Rice exporters advised to diversify markets Vietnam exported more than 4.5 million tonnes of rice in the first nine months of this year for 2 billion USD, up 19.6 percent in volume and 18 percent in value year on year, but its dependance on the Chinese market brings latent risks. According to the Vietnam Food Association, China consumed 38 percent of total rice exported from Vietnam with more than 1.5 million tonnes worth over 700 million USD, followed by the Philippines with over 400,000 tonnes and Malaysia with more than 360,000 tonnes. A surge in demand in Asia from June this year pushed rice prices to above 400 USD per tonne, which also helped boost the domestic rice price. Lam Anh Tuan, Director of Ben Tre-based Thinh Phat food company, said that along with the Chinese market, the Philippines and Bangladesh also have high demand for Vietnamese rice. However, he noted that Vietnamese firms should be careful in bidding for contracts in these markets. Noting the stability of African markets, Dang Thi Lien, Director of Long An food company said that along with major markets in Asia, her firm has contracts with African partners. While choosy markets such as the US, Europe and Japan are difficult to conquer, China is a promising market for Vietnamese farm produce, including rice. But experts said that focusing only on this market brings many risks, as China is encouraging farmers to increase rice production to reduce dependence on imported rice. They advised domestic firms to develop new markets such as Bangladesh, Cambodia, Thailand, Malaysia, Myanmar and the Philippines, while building rice trademarks. Tuan said that as all countries are striving to become self-reliant in rice supply, Vietnamese firms should diversify their markets.     GoBear Vietnam and MIC Ben Thanh join hands to deliver special offer GoBear Vietnam and MIC Ben Thanh have signed a business collaboration agreement to deliver special offer for international travel insurance products. From now until August 16, 2018, users who register to buy international travel insurance products provided by MIC Ben Thanh via website www.gobear.com/vn/travel-insurance will be eligible for an instant fee discount of 45 per cent. The international travel insurance products provided by MIC Ben Thanh are highly ranked on GoBear Vietnam’s website in terms of benefits and fee. As of this moment, users can search, compare and register to buy among four international travel insurance products provided by MIC Ben Thanh via website www.gobear.com/vn/travel-insurance to ensure protection throughout the trip and enjoy the special offer of fee discount. Doan Tu Anh, GoBear Vietnam acting country director, said: “The business collaboration agreement between GoBear Vietnam and MIC Ben Thanh is part of our strategy to add more benefits to users over time. By offering a discount for users who register to buy international insurance products via GoBear Vietnam’s website, we want to encourage Vietnamese users to form the good habit of buying travel insurance to protect themselves when travelling. In the future, GoBear Vietnam will continue to join hands with more partners to bring better benefits to users." Since it officially went live in Vietnam in early December 2016, with three products – comparison of credit cards, personal loans and travel insurances, GoBear Vietnam has landed over 650,000 comparison hits on the website www.gobear.com/vn and became a trusted provider of search and compare services for financial products in Vietnam. GoBear is Asia’s first and only metasearch engine in insurance and banking products. It was founded based on the simple premise that a consumer should find freedom and ease when making financial decisions related to insurance, credit cards and loans. Headquartered in Singapore since early 2015, GoBear is also in Thailand and Malaysia the Philippines, Hong Kong and Vietnam. Just over two years into its operation, more than 15 million users have put their trust in GoBear to make comparison of financial products in a fast and personalised way. As one of the fastest growing fintech startups in Asia, GoBear is leading the way in democratising financial shopping experience with its unbiased and personalised comparison process. GoBear’s user-oriented platform neither aggregate nor sell products. GoBear simply offers consumers a free and transparent comparison process based on their financial needs. The result is a user-friendly and informed experience that saves consumers both time and money. KIDO Foods' 9M net revenue up nearly 5% y-o-y KIDO Foods, the frozen food arm of the KIDO Group Corporation (KIDO), has released its business results for the first nine months of the year, with net revenue standing at VND1.2 trillion ($52.8 million), an increase of 4.9 per cent year-on-year. Gross profit is expected to be VND650 billion ($28.6 million), 2.4 per cent lower year-on-year, as its plant in northern Bac Ninh province began operating in early 2017, increasing depreciation costs and other fixed costs. Pre-tax profit in the first nine months was the same year-on-year, reaching VND160 billion ($7.04 million). After-tax profit is expected to increase sharply, by 9.8 per cent to VND140 billion ($6.16 million), thanks to tax incentives for the Bac Ninh plant. In the final quarter of the year, the company is expected to expand its portfolio of products to new dumplings and products from Dabaco Food, in which it recently acquired a 50 per cent holding, including fresh sausages and canned and processed foods. KIDO Foods will officially trade on the Unlisted Public Company Market (UPCoM) on September 28, with 56 million shares trading under the code KDF.   A recent report from Euromonitor shows that the KIDO Group has maintained its leading position in ice cream and frozen desserts, with a 40 per cent share this year. Ice cream and frozen desserts have seen retail volume growth of 7 per cent and retail value growth of 15 per cent this year, reaching 26,600 tons and nearly VND3.1 trillion ($136.4 million). In June, northern livestock giant the Dabaco Group JSC decided to sell 50 per cent of its subsidiary Dabaco Food to the KIDO Group for VND100 billion ($4.4 million). Under the sale, Dabaco Food will be an outsourcing company while KIDO will fully control products and brands. After investing in Dabaco Food, KIDO now has a presence in three key segments in the food industry: fresh food, frozen food, and canned food. In the frozen food segment, it targets holding a 50 per cent share of the ice cream market by 2020. It currently has more than 70,000 points of sale around the country and plans to increase this by 10,000 to 20,000 each year.     Vietnamese garment enterprises have opportunity to access US market Vietnam's textile and garment export turnover to the US has grown sharply in recent years and Vietnam is using more raw cotton materials from this market, offering domestic enterprises a range of opportunities to access the US market. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), said that Vietnam's textile and garment export turnover, in 2017, is estimated at US$30.5 billion, of which the US market accounts for approximately 51% of total turnover. In the first eight months of 2017, textiles and garments exports grew steadily, with export value increasing by 9.9%, over the same period last year, to US$19.8 billion. Currently, textile and garment exports to the US account for the largest share of the industry, making up around 51% of the export market share. However, Vietnam is also importing cotton from the US for its spinning industry, accounting for up to 60% of its total demand. In recent years, the cotton cultivation areas in Vietnam have narrowed down to just 0.04% of the total demand. Meanwhile, American cotton is considered the best for Vietnamese spinning, due to it containing less impurities and being put through a tightly controlled production process. In order to create favourable conditions for the Vietnamese textile and garment enterprises to approach the US cotton market, VITAS and the US Cotton Council International (CCI) recently held Cotton Day in Ho Chi Minh City, in mid-September. According to Giang, this event created an opportunity for US firms to evaluate the potential and importance of the spinning and textile industry in Vietnam, before making proposals to the US Government for policies to support the spinning, textile and garment industry in the Southeast Asian country. Among them, the most important is the recommendation on the establishment of cotton bonded warehouses in Ho Chi Minh City and Hai Phong that would help to create better opportunities for Vietnamese spinners to access US cotton products, while shortening buying times and reducing financial pressure. Giang said that Cotton Day 2017 acted as a bridge between the Vietnamese textile industry and the US cotton industry for the benefit of both parties, presenting an opportunity for Vietnamese fashion brands and Vietnamese businesses, who have not yet exported to the US, to seek opportunities for cooperation with US enterprises and buyers. According to VITAS, Vietnam’s cotton imports surged over the past ten years from 150,000 tonnes in 2005 to approximately 1.2 million tonnes in 2016, with US cotton making up a large proportion. In the first seven months of 2017, Vietnam imported 808,000 tonnes of cotton, worth US$1.47 billion, annual rises of 32.6% and 58%, respectively. The US accounted for 60% of the market share, marking a milestone in the development of US cotton in Vietnam. To pave the way for Vietnamese apparel exports to the US and to help customers recognise high-quality products, the CCI granted licences to 12 Vietnamese businesses using the COTTON USA™ label, including Hoa Tho Textile, Dong Xuan Knitting, Phu Cuong Spinning, Phu Gia Spinning, Viet Hong Dyeing, Sunrise Spring Vietnam, Thanh Cong Textile and Vi Son Textile. The use of COTTON USA ™ labels will help consumers to recognise quality products, as well as helping exporters enjoy more favourable conditions when exporting textiles to the United States. Nguyen Ngoc Binh, Deputy General Director of Hoa Tho Textile, said that his company currently has three fiber factories in Da Nang and Quang Nam, with an annual capacity of around 1,600 tonnes of yarns. Raw materials used in the plants are cotton and man-made fibers, of which cotton imports from the US account for more than 60%. Binh added that, compared with cotton imported from West Africa or India, cotton from the US contains less impurities, so the finished product quality is higher. Recently, US cotton has had a more competitive price, making it a good choice for manufacturers in meeting the high requirements of high quality orders. CCI Director William Bettendorf said that in recent years, the Vietnam textile and garment industry has made breakthrough growth, becoming a bright spot in the textile industry around the world. Currently, Vietnam is the largest customer of the American cotton industry. This year is also the first year that CCI has supported Vietnam’s fashion brands using the COTTON USA ™ label to create more favourable conditions for Vietnamese exports and better transparency for consumers concerning the origin of materials. Developing “agriculture 4.0” Agriculture is a foundation, a development axis, and a strong pillar of the economy. Over the years, the sector has recorded continuous growth with important achievements, contributing to nationwide economic stability, reducing poverty and improving the standard of living for rural residents. With enormous progress, Vietnam has emerged as one of the world’s leading exporters of agricultural commodities and is among the top five for aquatic products, rice, coffee, tea, cashews, black pepper, rubber and cassava. But it is facing major demographic, economic and environmental challenges that require changes in order to generate more economic value whilst using fewer natural, human and other resources, as well as the need to restructure the patterns of production and the organisation of the supply chain. Agricultural growth has mostly relied on increasing cultivation areas and a more intensive use of inputs, such as fertilisers and natural resources, such as water. The sector is experiencing a low quality of growth, as shown by low profits for farmers, underemployment among agricultural workers, unreliable product quality, alongside poor food safety and limited technological innovation. Developing high-tech agriculture is an important task and also the inevitable trend of Vietnam’s socioeconomic development strategies in the context of deeper international integration. Together with the foundation of rapid development and the high-level integration of scientific achievements and modern technologies in the sectors of digitalisation, bio-technology and physics, the Fourth Industrial Revolution is expected to remarkably change the appearance of manufacturing in the world and Vietnam in the near future. This model will help enterprises increase their productivity, flexibility and efficiency, in addition to shortening production time in making products available in the market, resulting in the improvement of an enterprise’s competitiveness. The revolution could create both opportunities and challenges for Vietnam. If Vietnam doesn’t catch up with the world and the region in terms of development, it would face challenges and the effects of backward technologies, decreasing production, abundant skilled labour and copyright violation. Hi-tech farming is considered as one of the driving factors for sustainable agricultural development in line with the government’s policy. Since the beginning of 2017, Prime Minister Nguyen Xuan Phuc has signed a resolution on providing a credit package worth VND100 trillion (US$4.4 billion) to invest in the development of high-tech agriculture at lower than market rates. The resolution aims to encourage, support and promote the development of hi-tech farming applications. Following the Prime Minister’s instruction on supporting high-tech agriculture development late last year, the SBV has instructed banks to apply preferential loans to high-tech and clean agricultural projects. Interest rates of the loans will be 0.5-1.5% per year lower than other average lending rates. Meanwhile, the lending interest rate for short-term loans averages at 6-9% per year and 9-11% for medium and long-term loans. Science and technology have been flagged as an effective solution for agricultural development, but the most urgent task that should be carried out in the near future is establishing an effective roadmap for the sector’s development in order to help the sector promote its important role as a strong pillar in the economy. In order to promote the economic strength of agriculture, it is necessary to have specific directions, mechanisms and policies to attract the relevant economic sectors and scientific enterprises to invest in technological innovation and high-tech applications for agricultural production. Therefore, it is necessary to restructure the country’s agriculture industry towards sustainable and effective development, while increasing the income and improving the standard of living for rural residents and farmers should be associated with the building of new-style rural areas. Local authorities should create favourable conditions to encourage the application of advanced technologies and machinery in agricultural production in order to reduce costs and improve the productivity, quality, and competitiveness of agricultural products. Last bid packages of Ben Luc-Long Thanh expressway carried out Vietnam Expressway Corporation (VEC) and contractors yesterday signed contracts to implement three last bid packages of Ben Luc-Long Thanh Expressway, connecting the Mekong Delta and the southeastern region through HCMC. The three packages have the total length of 25 kilometers, designed to meet A standard with the speed of 100 kilometers an hour. Ben Luc-Long Thanh expressway runs from the Mekong Delta province of Long An, travels through Ho Chi Minh City and links up to the southeastern province of Dong Nai. The work started on the 51.7 kilometer project in July 2014 with the total capital of VND31.3 trillion (US$1.38 billion). Vietnam Rubber Group prepares for equitization The equitization project of Vietnam Rubber Group (VRG) was approved yesterday by the company’s unusual conference of worker delegates in HCMC yesterday. The real value of VRG including the parent company, 20 agricultural subsidiaries and four public service units is over VND49 trillion (US$2.16 billion). VRG director general Tran Ngoc Thuan said that the group has agreed to submit the equitization project to the Prime Minister with the selling price of VND13,000 per share and the auction will be organized at the HCMC Stock Exchange. VRG shares will be sold to rubber farming workers and households and labor unions with the selling price accounting for 60 percent of the lowest successful auction price.  They will also be sold to eligible workers with the price equal to the lowest successful auction price. Over 475 million shares, accounting for 11.8 percent chartered capital, will be publicly offered for sale. In addition, another number of shares with the same chartered capital value will be sold to strategic investors. VRG proposed to complete the share auction within three months after the equitization project is approved. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET