BUSINESS IN BRIEF 25/10 TPP negotiators to meet in Japan next week Negotiators from the 11 remaining signatories to the Trans-Pacific Partnership (TPP) trade pact will hold a three-day meeting near Tokyo next week in pursuit of an agreement by November, the Japanese government said on October 24. Japan’s Kyodo news agency quoted Toshimitsu Motegi, Japanese economic revitalization minister who is in charge of the TPP trade negotiations for Japan, as saying that the meeting will take place from October 30 in Urayasu, Chiba Prefecture, east of Tokyo. With the withdrawal of the United States early this year having prompted proposals to amend or freeze parts of the pact, the 11 countries are aiming to reach a deal in time for the Asia-Pacific Economic Cooperation forum summit starting November 10 in Vietnam. The TPP was signed in February 2016 by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam, covering around 40 percent of the global economy before Washington's withdrawal earlier this year. Vietnamese businesses equipped with IP right protection abroad International regulations on brand protection, inventions, and industrial designs as well as services of the World Intellectual Property Organisation (WIPO) were introduced to Vietnamese businesses at a conference held in Hanoi on October 24. The event, jointly held by the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Intellectual Property Association (VIPA) and the WIPO, aimed to support local corporations in choosing proper methods to protect their intellectual property rights. VIPA Chairman Mai Ha said that intellectual property has significant influence on the enterprises’ development during the global economic integration. Thus, businesses should understand that protecting intellectual property right means helping themselves develop sustainably, he stated. Currently, the VIPA has prioritised helping its members grasp knowledge on intellectual property, use softwares in an effective and legal way and assess the value of intellectual property, Ha highlighted. Meanwhile, VCCI General Secretary Pham Thi Thu Hang underlined that the 4.0 industrial revolution requires trademarks with high intelligence and intellectual asset is significant part to form products’ value. Particularly, export businesses need to fully comprehend principles of e-commerce and global value chain, she said, expressing her hope that Vietnamese exporters will pay due attention to registration of intellectual property protection. Vietnam’s beer products introduced at New Zealand expo High-quality and good taste of 18 made-in-Vietnam beer products left impression on visitors at the Pacific Beer Expo 2017, which was held in Wellington, New Zealand, on October 21 and 22. Organised since 2011, the expo has become an annual beer festival and served as a venue to popularise new products of breweries in New Zealand and Asia-Pacific. This year, three Vietnamese breweries, namely Pasteur Street Brewing Co., Ltd, East-West Brewery Co. and Heart of Darkness Brewery, brought to the expo their latest drinking products which were highly appraised by the organizers and visitors. The Pasteur Street Brewing Co., Ltd, which attended the expo for the first time, dazzled beer connoisseurs at the event. Earlier, its Chocolate Cyclo Stout earned the company a gold medal at the World Beer Cup Competition in the US in May, 2016. Together with Maison Marou which has been available in New Zealand in 2016, Vietnamese fruit-flavoured craft beer products will be sold in the country, including beer with taste of dragon fruit, passion fruit, coffee, cocoa, vanilla and jasmine. Brandon Watts, General Manager of Pasteur Street Brewing, hoped to nudge Vietnamese beer products closer to customers in New Zealand. The Vietnam Trade Office in New Zealand proactively supported the companies in popularising and exhibiting their products at the fair. The expo was a golden chance for Vietnamese enterprises to introduce their new-generation drinks to foreign consumers. Vietnam, Iran step up trade ties with hope for 2 bln USD value Vietnamese Minister of Agriculture and Rural Development Nguyen Xuan Cuong has expressed his hope that trade value between Vietnam and Iran will soon reach 2 billion USD. At a reception for Alaeddin Boroujerdi, Chairman of the National Security and Foreign Policy Commission of the Iranian Parliament on October 24, Cuong said the ninth meeting of the Vietnam-Iran Committee on Economic and Commercial Cooperation in July 15-16, 2017 affirmed that the two countries boast huge potential for cooperation across fields. The Vietnamese Ministry of Agriculture and Rural Development (MARD), as head of the Vietnam-Iran Friendship Cooperation Subcommittee, reported outcomes of the meeting to Prime Minister Nguyen Xuan Phuc, who later assigned specific tasks to relevant agencies to improve the efficiency of cooperation in all spheres. In the realm of agriculture, in August 2017, the ministry invited 30 Vietnamese businesses to participate in a seminar on trade and investment promotion in the Mideast, including Iran, Cuong said, adding that a number of enterprises will also attend another trade promotion event in Iran to be held by the MARD and the Ministry of Industry and Trade in November 2017. He said the Department of Animal Health and the Plant Protection Department have been assigned to study and remove technical barriers to animal health and plant protection so as to push export activities of the two countries. The minister suggested Iran ship fish and bone powder to Vietnam and import rice, banana and lemon from the Southeast Asian nation, saying many Vietnamese firms want to come to Iran to explore investment and business opportunities in the country. He also called on the two sides to step up collaboration in construction material production, petro-chemistry and bauxite. For his part, Alaeddin Boroujerdi proposed the two countries cooperate in the banking and oil and gas sectors, join hands to organise exhibitions, remove technical barriers to animal health and plant protection, and study preferential trade agreements. He also suggested Vietnam import medicines produced by Iran. Iran will provide free-of-charge venues for Vietnamese businesses at exhibitions in Iran, he said, calling for similar support from the Vietnamese side. Vietnam seeks to export more farm produces, goods to RoK A trade exchange event was held in Seoul, the Republic of Korea (RoK) on October 24 to seek to increase the presence of Vietnamese products, especially farm produce and consumer goods, in the RoK market. Minister-Counsellor Tran Anh Vu from the Vietnamese Embassy in the RoK and Kim Hyun-myung from the Korea Importers’ Association (KOIMA) highlighted the importance of the RoK market to Vietnamese goods as well as cooperation opportunities between the two countries’ business communities. The Vietnam-RoK cooperative strategic partnership with an array of collaboration mechanisms in the economy, including the bilateral free trade agreement that took effect from December 20, 2015, has been serving as an important tool to facilitate stronger bilateral trade growth, they agreed. Meanwhile, Le An Hai, Vice Director of the Asia and African Markets under the Ministry of Industry and Trade, noted that two-way trade in the first nine months of 2017 reached over 45 billion USD, a surge of over 52 percent year on year, higher than the figure of 43.4 billion USD recorded in 2016. He stressed the efficiency of measures to support enterprises of both sides, including the organization of regular trade exchange activities. During the event, 17 Vietnamese firms introduced their products to local firms which assessed that Vietnamese products have had improved designs and packages to suit the RoK market and competitive prices with similar products from the Philippines, China, Indonesia and Thailand. Trade between Vietnam and the RoK increased 87 times since 1992, when they set up diplomatic ties, from 500 million USD to 43.4 billion USD in 2016. Both sides are working together to raise two-way trade to 70 billion USD in 2020. The RoK is currently the third largest trade partner of Vietnam after China and the US. It is the top foreign investor of Vietnam. Forum seeks to tackle bottlenecks to boost growth in Vietnam Experts and policy makers gathered at a forum held by the Central Institute for Economic Management (CIEM) in Hanoi on October 24, discussing policy solutions for 2018-2020 to boost growth model reform in Vietnam. The forum took place as part of the macroeconomic reforms/green growth programme in Vietnam funded by the German Government via the German agency for international cooperation GIZ. CIEM Director Nguyen Dinh Cung said it is necessary to immediately remove obstacles to accelerate the disbursement of state investment capital right from the beginning of 2018 to avoid a recurrence of the sluggishness in the last two years. He also urged better use of State-owned and private enterprises’ capital. “The efficiency of foreign invested firms in Vietnam is very high, even three times higher than State-owned and private firms in terms of the return on invested capital. Therefore, it is crucial to improve domestic businesses’ competitiveness,” he analysed. He suggested creating “pressure” for the elimination of at least one-third or half of the business conditions, and at least half of the number of goods subject to specialised export-import examination while reforming management methodology. Another factor expected to promote Vietnamese goods’ competitiveness on domestic and foreign markets is slashing logistics costs, which will help improve the country’s export value chains, Cung noted, adding that relevant agencies also need to instruct and assist businesses to comply with regulations instead of fining them. Nguyen Tham, former Vice Chairman of the Vietnam Logistics Business Association, said without positive changes and stronger solutions, the burden of unofficial expenses and logistics costs will greatly affect goods’ cost price. This will directly impact the country’s goods value chains and Vietnamese commodities’ competitiveness both at home and abroad. Meanwhile, Dr Pham The Anh from the National Economics University said the exchange rate policy should be flexible to enhance Vietnamese goods’ competitiveness. He elaborated that the State Bank of Vietnam began setting the daily reference VND/USD exchange rate in 2016 based on a currency basket of the country’s biggest economic partners, but this mechanism is not enough to support foreign trade activities. Vietnam’s exchange rate policy is still in a dilemma as it has to ensure inflation control along with public debt stability and trade promotion. A floating exchange rate mechanism under management will bring about more benefits than the current fixed one. However, this mechanism still needs certain conditions to be applied and prove effective, Anh added. Only when bottlenecks are removed and new growth momentum is created can sustainable development be promoted, according to participants in the forum.- Vietnam, RoK review one-year economic cooperation The 16th session of the Joint Economic Committee between Vietnam and the Republic of Korea convened in Seoul on October 24, reviewing outcomes of bilateral cooperation over the past year and set out new tasks. The Vietnamese delegation was led by Deputy Minister of Planning and Investment Nguyen The Phuong, while the RoK delegation was headed by Deputy Foreign Minister for Economic Affairs Yun Kang-hyeon. In their opening speeches, both officials underscored bilateral ties have grown in all fields since the two countries set up the diplomatic relations 25 years ago (December 22, 1992). In addition to bilateral cooperation, the two countries are important partners with significant contributions to multilateral forums and cooperation frameworks in the region and in the world. At the event, the two sides took note of remarkable progress made in economic engagements since their last session held in Hanoi on September 22, 2016, despite difficulties and uncertainty across the globe. They exchanged points of views on tackling difficulties and measures to further promote bilateral cooperation in various economic areas, including the participation of both nations in regional and multilateral arenas. They shared a common view that the Joint Economic Committee has played an important role in promoting Vietnam - RoK cooperation and should be utilised by both sides to continue its contribution. Delegates talked about joint activities across sectors, including trade, labour, official development assistance (ODA), consular affairs and justice. As heard at the function, the RoK continued to be a top foreign investor in Vietnam with total registered capital amounting to 55.6 billion USD by August 2017. Bilateral trade hit 43.45 billion USD in 2016 and 39.2 billion USD in the first eight months of 2017. Vietnam is one of the RoK’s top priority ODA partners, receiving 300 – 400 million USD per year from the RoK Government. About 50,000 Vietnamese labourers are working in the RoK. Both sides also discussed measures to reduce the deficit Vietnam recorded in trading with the RoK, to lift barriers for Vietnamese and Korean investors, and to effectively make use of the two countries’ human resources. Both sides noted with satisfaction about the encouraging outcomes of their joint works in agriculture, science-technology, urban planning, education, culture, and tourism, among other sectors. They agreed to hold the committee’ next session in Vietnam, whose date and agenda would be decided through diplomatic channels. First phase of $70m pipes factory kicked off     Tan A Dai Thanh Group kicked off the first phase of the Ströman Pipes and Fittings Southern Plant in the southern province of Long An on Saturday. The US$70 million plant covers a 10ha area in Tan A Dai Thanh Industrial Zone and has a design capacity of 150,000 tonnes of products per year, aimed at supplying quickly plastic pipe products to customers in the southern provinces. It is equipped with infrastructure, machinery systems and production lines based on German standards. Besides, all production activities of the plant are strictly followed by the quality control procedures monitored by German experts. In the first phase, the plant is expected to supply 70,000 tonnes of products per year to the market. At the grand opening of the factory, Ströman Viet Nam Plastic Corporation and Germany’s KraussMaffei Group also signed the strategic co-operation and technology transfer contract to provide HDPE & PPR 630, HDPE & PPR 1200 and PVC 400 extrusion machine for the second phase of the plant, valued at 14.5 million euros ($17 million). It is a part of the strategic co-operation and technology transfer contract signed in 2015 between the two sides, with a total investment of the pipe extrusion line system up to 50 million euros by 2020, when the Ströman Pipes and Fittings Southern Plant is completed. Nguyen Anh Tu, general director of Stroman Viet Nam Plastic Corporation, said the operation of the factory was an important milestone marking the progressive expansion and development of the Tan A Dai Thanh Group’s strategic direction. The operation of the plant will enable consumers in the southern provinces to quickly and conveniently use plastic pipe products in accordance with German quality standards, which are sustainable, safe and environment-friendly. VFA hikes rice export target on strong demand     The Viet Nam Food Association (VFA) has decided to raise its rice export target from 5.2 million tonnes to 5.6 million tones, following an increase in rice contracts for the last months of the year. Rice exports have rebounded with an increase in rice contracts since May. The country’s rice sector has already met 82 per cent of its target for the entire year. VFA’s statistics showed that in the first nine months of the year, Viet Nam shipped around 4.57 million tonnes of rice worth US$2.02 billion, up 20.8 per cent in quantity and over 18.6 per cent in value from the same period last year. China was still the largest importer of Vietnamese rice. August saw the strongest growth for rice exports this year so far with 70 per cent and 56.8 per cent increases in terms of quantity and value respectively. The number of contracts registered for exports in August also rose to the record level of some 842,000 tonnes, increasing 207 per cent from the previous month and representing a 115 per cent year-on-year increase. Most of the contracts were with importers in China, and Philippines and Africa. The VFA attributed the boom to better export performance in traditional markets including China, Malaysia, the Philippines and Bangladesh. Specifically, Vietnamese rice exporters shipped 150,000 tonnes of rice to Malaysia; 250,000 tonnes to Bangladesh and 175,000 tonnes to the Philippines. New export markets such as Australia and West Asia also saw strong growth. The association forecast that Viet Nam’s rice exports would continue to increase in the future as Bangladesh solicited bids from exporters for an order of 50,000 tonnes of non-basmati rice. If Viet Nam wins the bid, its rice market’s already good year would become even better. In May, the Viet Nam and Bangladesh governments extended the memorandum of understanding on rice trading for five years, covering the period from 2017-22. Under the MoU, Viet Nam will supply some 1 million tonnes of rice a year for Bangladesh. After the MoU signing, Bangladesh is expected to buy around 500,000 tonnes of Vietnamese rice till the end of this year. In addition, the Philippines also opened a minimum access volume (MAV) mechanism in 2017-18. Accordingly, the country will import 293,100 tonnes of rice from Viet Nam. China is forecast to continue to maintain strong imports of Vietnamese rice in the year-end months. The Ministry of Industry and Trade recently announced Strategy on Viet Nam Rice Export Market Development for 2017-20 calls for gradually reducing rice export quantity but maintaining rice export value. In addition, export and market structures will be adjusted. Upgrade plan for Dien Bien airport announced   Local authorities of the mountainous northern province of Dien Bien on October 24 announced their upgrade plan for Dien Bien Airport. The airport is expected to cover 201ha and will be upgraded at a cost of 3.54 trillion VND (156.01 million USD). Of the sum, nearly 2.15 trillion VND (94.6 million USD) will be spent from 2017-2020. According to the Ministry of Transport, the airport will serve more domestic and international flights for civilians and the military. It is hoped to serve 300,000 passengers and handle 500 tonnes of cargoes per year by 2020 with flights to Noi Bai (Hanoi) and Cat Bi (Hai Phong city) airports. By 2030, the airport is set to serve two million passengers and handle 10,000 tonnes of cargo a year. It is expected to link with Da Nang city’s airport and Tan Son Nhat airport of Ho Chi Minh City and airports in Laos, Cambodia, Myanmar, Thailand and China. The upgrade includes plans for terminals, platforms, administrative areas, non-aviation services, drainage and electricity systems, among others. Mua A Son, Chairman of the provincial People’s Committee said that the province holds great potential for tourism, especially heritage tourism with Dien Bien Phu historic site. However, Dien Bien Airport can currently only receive ATR72 airplanes or below and only operate routes between Dien Bien and Hanoi. The upgrade of the airport is expected to enhance the socio-economic development, tourism and transportation of Dien Bien, helping the province attract more investment. Ideas gathered for “One Commune, One Product” programme The Ministry of Agriculture and Rural Development (MARD) held a conference in the central province of Thua Thien-Hue on October 24 to gather ideas for the national programme on “One Commune, One Product” (OCOP). MARD Deputy Minister Tran Thanh Nam said that OCOP wil help more than 6 million farmer households. He stressed the need for strong communication to raise public awareness in preserving and promoting the value of traditional products. Under the new-style rural area building programme, in 2020, 80 percent of communes are expected to meet criteria in locals’ income and 85 percent in production organisation. To reach the targets, the MARD has restructured the agricultural sector towards stronger value chains and linked production and sales, initially focusing on national products, and strong products at provincial level and district-commune levels. The ministry has also enhanced the application of science and technology, especially in agro-forestry and fisheries production. OCOP has been designed to suit specific communes, concentrating on different products for each locality. Participants at the conference agreed that the programme should be comprehensive in all aspects of economy, culture and society, with community engagement. The promotion of chosen products will help increase their production and sales, thus creating more jobs and improving incomes, while speeding up reinvestment to increase competitiveness of the products, they said. A national survey showed that 4,823 products of 63 provinces and cities nationwide have high potential for the OCOP programme. AIA, VPBank enter into 15-year exclusive bancassurance partnership     AIA Viet Nam and VPBank, Viet Nam’s largest private joint stock commercial bank by market capitalisation, on Monday signed a 15-year exclusive bancassurance partnership agreement. Through this partnership, VPBank customers can enjoy AIA Viet Nam’s comprehensive range of life insurance products and services complemented by AIA Vitality, AIA’s innovative wellness proposition. This will make VPBank the first bank in Viet Nam to offer insurance integrated with wellness across its entire nationwide network of 215 branches and transaction offices and all bank segments, including retail, SME Corporate, household and digital banking. This long-term exclusive partnership will allow AIA Viet Nam and VPBank to jointly invest in and commit to creating a market-leading bancassurance platform that is supported by the integration of digital capabilities, best-in-class training programme and service innovation to serve customers better. “Our strategic partnership with VPBank highlights our commitment to deliver value-added wellness, protection and long-term savings solutions to VPBank customers, and more importantly, to advance the life insurance market in Viet Nam by helping people live longer, healthier and better lives,” Wayne Besant, AIA Viet Nam’s CEO, said. Nguyen Duc Vinh, VPBank’s CEO, said: “We have always viewed bancassurance as an integral and strategic aspiration for the bank. Life insurance is a vital component and product offering for our target market segments, in particular, the affluent and upper class consumer, as well as the SME and household banking segments. We are very excited to collaborate with AIA Vietnam as part of this bancassurance relationship and look forward to making the best-in-class life insurance products available through our distribution network.”. LienVietPostBank meets 95% of annual profit plan after 9 months     Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) met 95 per cent of its VND1.5 trillion (US$65.79 million) pre-tax profit planned for the entire 2017 by the end of September. According to the bank’s Q3 financial report, it posted pre-tax profit of VND523 billion in the third quarter, bringing total profit in the first nine months to VND1.43 trillion, up 66 per cent year-on-year. Most of the bank’s business activities reported making profits in the period, of which net interest income increased by 23.3 per cent to VND1.36 trillion and profit from services tripled to nearly VND24 billion. By the end of September, the bank’s total assets rose 4.4 per cent to more than VND148 trillion. Its total outstanding loans reached VND94.86 trillion, up 19 per cent, while mobilised capital rose only 10.3 per cent to VND122.44 trillion. However, the bank’s proportion of lending to deposits remained low at 77.5 per cent. The bank’s bad debt ratio was at 1.19 per cent, inching up against the 1.11 per cent earlier this year. At the same time, with a provision of VND277 billion for risky loans, the value of Viet Nam Asset Management Company’s (VAMC) bonds held by LienVietPostBank decreased slightly to VND600 billion. By the end of September, the bank owned 10 per cent of the contribution capital of Vietnam-Laos Electricity Joint Stock Company with a value of VND300 billion and 5.5 per cent of the contribution capital of Lien Viet Securities Joint Stock Company with a current value of nearly VND16 billion. Early this month, the bank’s shares (code LPB) were officially traded on UPCoM at an initial price of VND14,800 per share. LPB closed this morning’s session at VND12,800 per share, up 1.8 per cent from yesterday.     Officetels, condotels need regulations     The HCM City Real Estate Association (HoREA) has urged the Government to ensure condotels and officetels are not used primarily as apartments, warning that would cause problems for urban planning and infrastructure and transport. HoREA chairman Le Hoang Chau said there are no design standards for projects that include both apartments and officetels-condotels. There are no regulations on the number of occupants at these projects either meaning there would be unbearable pressure on infrastructure and transportation, he said. The association suggested to the city Department of Architect Plans that the size of officetels should be 25-50sq.m while condotels should be of similar size as a room in a hotel or resort. In terms of population, HoREA said it must be capped at half of that of a pure housing project. In projects combining apartments and officetels-condotels, the latter should be in a specific area and separated from the apartments, it said. Apartment projects with condotels or officetels have seen strong growth in the city in recent years. They have been approved by the Ministry of Construction, but it is difficult for authorities to manage them since there are no regulations related to their planning or design. Tran Vinh Tuyen, deputy chairman of the HCM City People’s Committee, was quoted by Tin Tuc (News) newspaper as saying that condotels and officetels are new products but there are no projects with officetels only. Exchange-traded fund moves from Ha Noi exchange to HCM City     SSIAM VNX50, an exchange-traded fund, debuted on the HCM Stock Exchange on October 24 under the code FUESSV50, becoming the second such fund to list on the bourse. The SSIAM VNX50 ETF was formerly known as SSIAM HNX30 ETF, and was established in 2014 and listed on the Ha Noi Stock Exchange (HNX). It is managed by SSI Asset Management Limited Company (SSIAM). Together with the merger of the two exchanges, some large stocks in the HNX30 have moved or are about to move to HOSE, making HNX30 less attractive. By moving from the HNX besides changing to the VNX50 as the simulation index for the SSIAM VNX50 ETF, SSIAM hopes to enhance the attractiveness of the fund. The blue-chip VNX 50 index consists of the 50 highest ranking stocks in terms of free float market capitalisation and average daily turnover of the two markets, filtered from the VNXAllshare index basket. The 50 stocks account for 70 per cent of the total market cap. Exchange-traded funds are passive and track an index, and do not aim for a higher rate of return than the index. SSIAM VNX50 ETF will thus track the VNX50. Speaking at the listing ceremony, Tran Thi Thuy Linh, deputy director of HOSE’s listing management and appraisal department, said the fund’s listing would contribute to the diversification of the Vietnamese stock market. To Thuy Linh, deputy general director of SSIAM, said in the first nine months of this year SSIAM VNX50 achieved a return of 32 per cent.      Shopee’s parent Company Sea listed on New York City Stock Exchange     Shopee Vietnam on Tuesday announced that its parent company, Sea Limited (Sea), made its initial public offering on the New York City Stock Exchange. The company is the first internet business from greater Southeast Asia to become listed on the New York City Stock Exchange. This is a significant milestone for Sea Limited and its businesses, including Shopee, the company said. Chris Feng, CEO of Shopee, said: “The listing day is a big day for the Sea group, including Shopee. As we embark on this new journey, we are excited about the opportunities it will present for our business and employees, and most importantly, our customers. “Our home market is an exciting region, with one of the largest millennial populations in the world, and GDP growing twice as fast as in the US. Internet and smartphone penetration is still low compared to the US and China, and we are confident in its continued growth and the tremendous potential this presents across our seven markets, namely Indonesia, Viet Nam, Thailand, the Philippines, Taiwan, Malaysia and Singapore,” he said. Shopee is the leading e-commerce platform in Southeast Asia and Taiwan. It is a platform tailored for the region. The company has a wide selection of product categories ranging from consumer electronics to home and living, health and beauty, baby and toys, and fashion and fitness equipment. Shopee was launched in Singapore in 2015, and has since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Viet Nam and the Philippines. The company has attracted 1.6 million active seller partners, plus another 1,700 brands and larger retailers, to our platform. Programme connects tech startups, agri firms     A Business Matching Programme that connects agricultural enterprises which need technologies with tech startups was introduced in HCM City on October 24 at a special event. Through the programme, enterprises that need help in cultivation, preservation, harvesting and market entry can consult tech startups. Pham Cong Chinh, director of Tam Khoe Clean Vegetable Farm in HCM City, said that he needed a system which can help forecast and discover pestilent insects for vegetables. Chinh said at the introduction of the Business Matching programme event on October 24 held at SIHUB in HCM City to help connect between agricultural enterprises and technology startups. The farm includes an aquaponics model in which fish and vegetables are grown together in a closed network and another model using hydroponics, a method that replaces traditional soil with mineral-rich water solution. Chinh said: “A system for controlling disease among fish, keeping track of fish growth, and analyzing nutrition in fish for growth, is needed.” Nguyen Hong Dang Khoa, director of Tri Nguyen Farm, said the areas of membrane houses in cultivation have increased and become common in high-tech agriculture. “However, after several years of use, the membranes are now dusty, affecting effectiveness in cultivation,” Khoa said, adding that startups could conduct research and create robot-washing membranes. A representative of tech startups said that he had created a system to forecast and discover pestilent insects that attack vegetables, which the Tam Khoe Clean Vegetable Farm said it needed. The Business Matching Programme was organised by the Business Startup Support Centre in co-operation with Digital Agriculture Association Viet Nam and Vietnam Private Sector Forum. It was officially launched nationwide on October 10. The organisers are in the process of selecting 20 excellent candidates for 10 agricultural enterprises which need technologies to assist their cultivation, harvest, preservation and market entry. The programme has attracted more than 35 technology startups and agricultural enterprises so far. Truong Ly Hoang Phi, director of Business Startup Support Centre, said the programme was expected to reduce the gap in trust between enterprises that need technology solutions for cultivation and startups that can provide technology. Nguyen Duc Tung, deputy general secretary of the Digital Agriculture Association Viet Nam, said that many agricultural technologies being used by enterprises had become outdated.  Vietnam Foodexpo to showcase country’s food supply potential     The annual Viet Nam International Food Industry Exhibition returns to HCM City from November 15 to 18 with the participation of more than 400 food and agricultural suppliers. With a display area of 13,000sq.m and nearly 600 booths at the Saigon Exhibition and Convention Centre, Vietnam Foodexpo 2017 will be the largest international exhibition for the country’s food industry. On display will be fruits and vegetables (fresh, dried, canned, frozen); seafood (frozen, canned and processed); beverages (beer, alcohol); tea and coffee; food ingredients (rice, nuts, spices, additives, sauces ...); processed foods (confectionery, milk, dairy products, canned and processed foods, healthy foods); and food processing technology equipment. It will have big names from the Vietnamese food industry such as Quang Ngai Sugar, Hanoi Beer, Sai Gon Beer, Lafooco, Bibica, Hai Ha Kotobuki Confectionery, Dong Giao Food, Sa Giang Food, Tan Nhat Huong Food, Nam Phuong Fish Sauce, Mekong Seafood, K-Coffee, Phuc Sinh Coffee, Tien Giang Tigifood, and VinEco Vegetables. Many provinces and cities will also bring their typical local agricultural products and foods. Besides the traditional display activities, Vietnam Foodexpo 2017 will also support trade exchanges, investment promotion, and distributor-importer match-making activities. Bui Huy Son, director general of the Viet Nam Trade Promotion Agency, which has been assigned by the Ministry of Industry and Trade to organise the exhibition, said: "With its prestige, Vietnam Foodexpo has become the most comprehensive one-stop trade platform, showcasing thousands of agricultural products and food brands from all over Việt Nam, from raw materials to deep-processed products with high added value. “Vietnam Foodexpo is also a place where visitors can experience the colourful world of Vietnamese tropical food, among which are some top global export items by volume, learn about the thriving supply capacity of Vietnamese companies and expand business and investment opportunities.” In recent years Viet Nam has emerged as an important source of agricultural products and foodstuffs for many countries around the world. The Government is paying special attention to the development of this promising sector. Deputy Minister of Industry and Trade Tran Quoc Khanh said: "The food industry is one of the industries in Viet Nam with great potential, not only meeting domestic demand but also exports to many countries. Viet Nam's food products are gradually being recognised and are creating a good image in the world.” Last year Vietnam Foodexpo received thousands of potential buyers from 38 countries and territories, including many key Vietnamese export markets such as the US, EU, China, and Northeast Asia. Philippe Kechichian, a businessman from Portugal, said: "At Vietnam Foodexpo, I was able to select Viet Nam's most prestigious businesses and products, learned about their factories and production capacity and concluded several purchasing agreements.” Productivity forum for VN integration into global value chains     The Viet Nam Chamber of Commerce and Industry and the International Labor Organisation will organise a forum titled “Improving productivity for integration into the global value chains” in HCM City on Friday. It will wrap up the current phase of the Sustaining Competitive and Responsible Enterprises (SCORE) programme implemented by the VCCI’s HCM City branch and the ILO. The programme is funded by the Swiss State Secretariat for Economic Affairs and the Norwegian Agency for Development Cooperation. To be held at Sheraton Saigon, the forum will sum up the activities SCORE has offered, address the benefits and challenges of enterprises during their participation in global value chains, and introduce a strategic framework to support enterprises for the programme’s new phase . SCORE is a practical training and in-factory counselling programme to improve productivity and working conditions at small and medium enterprises (SMEs). It demonstrates best international practices in the manufacturing and service sectors and helps SMEs participate in global supply chains. Since 2011 SCORE has provided technical assistance to 145 companies in sectors such as wood processing, garments and supporting industries. Among the positive outcomes from participating factories is the saving of production costs, improved workplace co-operation, increased productivity, and lower employee turnover rate. Thousands of taxi drivers leave jobs Vinasun, one of Vietnam’s biggest taxi firms, saw nearly 2,000 staff leave in the third quarter of this year due to fierce competition with app-based taxi services. According to Vinasun, by the end of the third quarter, the company employed 7,292, down nearly 2,000 compared to by late June this year. In a document sent to the prime minister in May this year, Vinasun said that it is facing many operational difficulties due to competition from Uber and Grab. Vinasun earned net revenues of VND547 billion (USD24.8 million) in the third quarter, the lowest level since 2011 while its after-tax profits in the period dropped 50% over the same period last year to VND47 billion (USD2 million). The firm’s total revenues of the Jan-Sept period to VND2.45 trillion (USD111.3 million), fulfilling just 58% of the year’s set target. In order to cut the loss, Vinasun has actively been using app-based taxi services as well boosting the franchise. The company recently launched a service to book rides via Facebook. This year, Vinasun has set a goal to reach revenues of VND4.25 trillion (USD187.3 million) and profits of VND205 billion, down 10.6% and 34% on-year. Mai Linh Group also saw nearly 6,000 staff leave in the first six months of this year which they claimed was due to competition with app-based services. Fast fashion competition bursting at the seams in Vietnam An increasingly wealthy population has global designer brands looking to stitch up the market. Nguyen Minh Ngoc jostles for space in a Mango store as she rummages through a dizzying array of marked-down clothes in search of a perfect blue sweater for the upcoming winter. It's a routine shopping excursion for Ngoc, who admits to spending at least VND4 million (some US$180) per month in Mango, Ninewest, Zara, Forever21 and H&M, while ignoring home-grown labels like Nem, Blue and PT2000. “I’m more inclined to foreign brands because of their quality. I don’t mind spending more if the quality is better,” the 28-year-old PR worker said. In the past, Ngoc either bought clothes on overseas trips or ordered them online. This obsession with foreign brands among young customers like Ngoc has emboldened global brands to open outlets in Vietnam. Last month, the opening of Swedish giant H&M’s first store in Saigon attracted around 4,000 shoppers. The firm will open its second outlet in Hanoi on November 11. By setting prices for selected items at 15-20% less than its stores in Malaysia and Singapore, Zara has triggered a craving for fashion in Vietnam. Its cousins, Stradivarius, Pull & Bear and Massimo Dutti, have also dipped into the market of over 90 million potential Vietnamese customers. Other brands like Mango (Spain), and Nine West and Old Navy (US) have also stepped foot into the country. Japanese giant Uniqlo and American brand Forever 21 are also expected to arrive soon. Fast Retailing, the operator of Uniqlo, began recruiting staff in Hanoi and Saigon in May to launch stores in several cities. There are some 200 international fashion brands in Vietnam, accounting for more than 60% of the market share. An increasing middle-class population has made Vietnam a magnet for international fast fashion brands. Vietnam’s economy has experienced rapid growth in recent years, and average annual income reached US$2,200 last year, according to the World Bank. The so-called "middle and affluent class" earning US$714 a month or more in Vietnam will double to 33 million people, about a third of the population, by 2020, the Nikkei Asian Review reported, citing the Boston Consulting Group. Customers are well aware of the latest fashion trends and have a desire to buy fast fashion brands, which refer to those that mass-produce and sell inexpensive clothing by rapidly copying the latest trends. "The from brands like Mango, H&M and Zara suit me because their designs are simple and modern, and their prices are reasonable," Le Thu Trang, a student from Hanoi University, said. Trang, 22, also likes to wear Zara and H&M clothes. “The two brands occupy nearly half of my wardrobe. When they open outlets in Hanoi, I will definitely visit them,” she said. Le Viet Thanh, CEO of local brand K&K Fashion, said some local retailers are worried about international brands penetrating the domestic market. “They are big enterprises with strong financial backing. They have the ability to launch promotions that could stitch up local rivals.” Pham Thai Binh, head of retail at consulting firm Savills, said competition in the local fast fashion industry is heating up, and most of the key players are foreigners. Domestic fashion retailers need to be more sensitive to changes in consumer behavior in order to stay in the game, he said. Le Quoc An, former chairman of the Vietnam Textile and Apparel Association, said the entry of foreign brands could be a big challenge to local fashion retailers such as Ninomax, Blue, Foci and PT 2000. But in the long term, local brands should be able to hold their own as long as they adopt business strategies with cheaper production costs. Echoing him, an industry insider said: “Competition is good for everyone. Local brands just need to step up.” The story of how coffee chains Highlands and Trung Nguyen have stood their ground despite Starbucks' attempted invasion has proved there is room for everyone, he said. Homegrown coffee chains like Highlands and Trung Nguyen have beaten foreign rivals by being more attuned to local tastes and limited budgets. Serial shopper Ngoc said that better value would make her rethink her opinion of Vietnamese products. “If Vietnamese brands could improve their quality, I would think about shopping at local shops again,” she said. Vietnam-China int’l trade fair slated for Lang Son in November The Vietnam-China international trade fair will take place in the northern border province of Lang Son from November 2-8, according to its organising board. This year, the annual event, which is alternatively organised by Lang Son and China’s Guangxi province, is expect to feature about 300 booths, including 35 Chinese booths. As part of the fair, various trade promotion activities will be held to introduce strong products of different localities, along with art exchanges. Vietnam’s statistics showed that two-way trade reached 71.9 billion USD in 2016, a rise of 7.9 percent over the previous year, while the trade deficit fell 13.67 percent year on year. By the end of August this year, trade between the two countries hit 55.2 billion USD, up 23.59 percent over the same period last year, with Vietnam running a deficit of 17.7 billion USD, down 5.76 percent. Fruit and vegetable exports grow amid concern about product quality Between January and September, Vietnam’s fruit and vegetable exports witnessed the highest growth in the group of agro-forestry-fisheries products, increasing a staggering 45.6% to US$2.67billion when compared to the same period last year. China was the biggest export destination, with 70% of the country’s fruit and vegetables heading over the border to the Chinese market. This notable increase in export growth of fruit and vegetables is attributed to Vietnam’s integration into ASEAN and ASEAN integration into the other member countries. Notably, fruit and vegetable exports has seen the equal growth to coffee and surpassed other key products such as rice, rubber, tea and cashew nuts. Vietnam’s fruit and vegetables have successfully penetrated several demanding markets such as the US, Japan, the Republic of Korea, New Zealand and Australia. The US has recently allowed the import of white and red-flesh dragon fruit, rambutan, lychee, and longan from Vietnam while Japan followed suit and have also opened its market to Vietnamese white and red-flesh dragon fruit and mango. Vietnam has also found new markets for white and red-flesh dragon fruit along with mango with the Republic of Korea also agreeing to import them, while New Zealand has given the green light to the importing of mango, dragon fruit and lychee from Vietnam. Australia has recently granted an import license to the country’s lychees and mango. With these major breakthroughs achieved, Vietnam is targeting the EU as a potential market to export fruit and vegetables to. According to an economic report by the Vietnamese Institute for Economic and Policy Research (VERP) China is the largest import market for Vietnam’s farm produce. This is also the export market that has recorded the highest growth, especially with agro-forestry and fisheries products. A case in point is the sharp increase in the quantities of fruit and vegetable exports to the Chinese market, which have grown 60% in the first three quarters of the year. This is part of an overall upward trend. Last year, export turnover of these products to Chinese market hitUS$1.739 billion, accounting for 70.7% of total fruit and vegetable exports In the eight-month period export turnover to China reached more than US$1.787 billion, making up 71.7% and higher than the proportion of one year earlier. The total export turnover to the Chinese market this year is likely to hit US$2.6 billion. According to experts from VERP, Vietnam has heavily depended on the Chinese market. While this makes sense, China is a big market and is geographically very close to Vietnam, thereby facilitating Vietnamese exports, particularly agricultural products. VERP experts said the Chinese market is growing steadily, imposing rigid requirements and technical barriers on Vietnam’s agricultural products that require an improvement in product quality. In addition, the continued increase in China’s RMB has also facilitated Vietnamese exports to the vast market. The acceptance of Vietnamese produce by several demanding markets shows that product quality has improved recently and trade promotion activities have been implemented effectively. These moves have shown that it can be done and have given fresh impetus to exporters desiring boost exports to demanding markets. However, the process is lengthy. Negotiations are protracted, for example it took 9 years of talks for dragon fruit to enter the Australian market and 10 years for star apple to gain entry to the US market. However, experts have underlined the importance of improving quality and trade promotion activities to secure market shares of fruit and vegetables in foreign markets, and updating information in a timely fashion on the demands and standards of import products for each market. Economists noted that Vietnam sees huge opportunities to further improve trade surplus with China in the near future. This is contingent on the country raising awareness about the importance of this market with a focus on further improving the quality of products to ensure they meet requirements set by Chinese importers. However, VERP experts have advised caution, warning of an unavoidable excess crisis as a result of poor quality. This has previously be fallen such products as pork, watermelon or lychee in recent times and could happen again.     Huda takes gold at international beer competitions Carlsberg Vietnam has announced that its Huda and Huda Gold brand has won three gold medals at the World Beer Awards 2017 (WBA) in the UK, the Berlin International Beer Competition (BIBC), and the Monde Selection in Belgium. Huda is the only beer trademark in Vietnam that has won the gold medals at these international beer competition series. The awards have proved the excellent quality of the Vietnamese beer brand, affirming its position as the pride of Central Vietnam for nearly three decades. "As a member of Denmark's Carlsberg Group, Carlsberg Vietnam has inherited the beer production technology of the Group's 170-year experience. Carlsberg Vietnam is very proud of these gold awards. This also shows the company’s commitment to pursuing perfection in brewing every day to better serve our consumers and grow up to the title of being the pride of Central Vietnam,” said Stefano Clini, general director of Carlsberg Vietnam. Being present in the central region of Vietnam since 1990, the quality and design of Huda has been continuously improving to bring high-grade beer to all beer lovers. As a well-known brand of excellence and high-quality, Huda is not only favoured in the domestic market but also convinced leading experts in the world beer industry to win the honourable prizes. Carlsberg Group, one of the leading brewery groups in the world, will continue to target Vietnam as one of its key markets in Asia to cash in on the lucrative local beer market. Currently, Carlsberg’s major products in the north-central region are Huda and Huda Gold, accounting for 80 per cent of the firm’s total consumption volume. In the north, Carlsberg, Tuborg, and Halida are the firm’s main products.      VNN