BUSINESS IN BRIEF 25/3 Hanoi eyes 159 industrial clusters by 2030        The capital city will have 159 industrial clusters, covering a total area of more than 3,200ha by 2030, baodautu.vn reports. This is pursuant to its industrial cluster development master plan for 2020 with a vision to 2030. In the period up to 2020, there will be 138 industrial clusters with an area of more than 2,620ha in the city. Of these, 52 are newly-established zones, spanning 590ha. The plan has been approved by the municipal People’s Committee. In the 2021 to 2030 period, five existing industrial clusters will be expanded, having a total area of 45.4ha, and 21 new ones, covering 536ha, will be established. According to the plant, industrial complexes which are located in the five northern districts of the city —Soc Son, Me Linh, Dong Anh, Long Bien and Gia Lam — will prioritise to attract investments in several sectors, including electronics and information technology, engineering, automotives and production of new materials, besides pharmaceuticals and cosmetics. Industrial complexes in the two southern districts of Thuong Tin and Phu Xuyen will focus on luring projects in high-tech farming and supporting industries, especially those serving the textiles and garments, footwear, mechanical engineering and electronics sectors. Meanwhile, those in the western areas of the city, such as Hoa Lac, Xuan Mai and Mieu Mon, will be involved in bio-industries for agriculture, hi-tech industries, construction materials and hi-end furniture production.  Technology aids Delta firms: VCCI      The use of modern technologies enabled enterprises in Cuu Long (Mekong) Delta provinces to achieve outstanding results last year, a recent survey by the Viet Nam Chamber of Commerce and Industry, Can Tho city, has found. The survey said the number of companies achieving good results had increased sharply along with their turnover and profits. Nearly 39 per cent of companies based in the region reported improved operations, almost 7 percentage points higher than in 2016. Nearly 64 per cent of companies saw their revenues rise, the highest rate in three years, the VCCI said. More than 57 per cent achieved profits in 2017, slightly up from the previous year. Besides the use of technologies, the VCCI also attributed the companies’ success to strengthening human resource training and improved labour capacity. In addition, they were also more active in seeking raw materials suppliers and regular buyers and had improved their management to control costs and improve quality. Many of the successful companies were in sectors like trading, construction and real estate. The VCCI also reported that aquaculture companies faced difficulties last year due to high costs, strong competition from China and ASEAN members and volatile markets. To overcome their challenges, it urged companies to focus more on technology 4.0, human resources, management and brands. Company chiefs should have a clear understanding of markets, policies and trade agreements, it said. Last year the delta region’s economy grew at 7.6 per cent, higher than the country’s 6.8 per cent. It saw nearly 9,000 new companies being set up, 776 higher than in 2016. Nearly 2,000 others resumed operations after suspending them for various periods. The delta is home to one city and 12 provinces.  Kiên Giang province to supervise bird nest farming Kiên Giang Province’s People’s Committee Chairman Phạm Vũ Hồng has asked six departments and sectors to work with local authorities to re-examine the area for swallow nest farming in residential localities. The committee has assigned the provincial Department of Agriculture and Rural Development to work with local authorities to formulate a development plan, which must include regulations on swallow nest farming in the province. The development plan must ensure the management of the farming location, the use of sound to attract the birds, hygiene, disease control and other aspects. The decision comes after a boom in bird nest farming in the province, which has had a negative impact on people’s lives and urban development. According to statistics of the provincial authority, more than 700 households took part in swallow nest farming, mainly in the inner city and residential areas of Rạch Giá City, Hòn Đất, Châu Thành and Kiên Lương districts, as well as Hà Tiên Town. Most of the households renovated their houses to serve as farms and used loudspeakers to lure birds, which caused disturbance to neighbours. Swallow nest farming also led to unhygienic conditions. The development plan must be sent to the provincial People’s Committee for approval in the second quarter of this year. The provincial departments of Natural Resources and Environment and Construction will be in charge of guiding local farming households to implement the regulations on environmental protection. They will also be responsible for regularly inspecting and fining violators. The Department of Health will work with the relevant authorities to take measures to prevent diseases, as well as supervise the processing of bird nests to ensure food hygiene and safety requirements. The sub-department of Animal Health, on the other hand, will focus on controlling the building of bird nest houses, which must meet farming requirements. Since March 12, local households that fail to get environmental and construction licences are required to apply for their documents within six months, Hồng said. Explosion damages restaurant, no casualties reported A powerful explosion on Monday midnight damaged the Sura BBQ restaurant and family karaoke bar located on Trần Phú Street in Vinh City. No one was injured in the accident. The blast affected houses situated hundreds of metres away. “I was sleeping when I heard a loud bang. My neighbours were also woken up by the explosion,” said Thái Hữu Lài, who lives 400m from the scene. The two-storey building of the restaurant was severely damaged. Sixteen large gas tanks, weighing 72kg each, were found at the spot of the blast. Nghệ An Province firefighters were immediately pressed to service. They brought the fire under control by 4am. Lê Quốc Bảo, deputy director of the provincial police, told Voice of Việt Nam that the gas system at the restaurant was likely to have triggered the fire. But the initial cause is still being investigated. Nguyễn Hữu Cường, deputy head of Vinh City Police, said police and related agencies sealed off the blast site and started investigation. All remaining gas tanks were moved out of the building. Nearly 11,000 firms respond to PCI 2017 survey The Provincial Competitiveness Index (PCI) 2017 has received feedback from 10,245 private enterprises in 63 cities and provinces, including 2,003 newly-established and 1,765 foreign-invested firms. The Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with the US Agency for International Development (USAID), will announce the Provincial Competitiveness Index (PCI) 2017 tomorrow. PCI Vietnam is designed to assess and rank the performance, capacity, and willingness of provincial governments to develop business-friendly regulatory environments for private sector development. This is the 13th consecutive year VCCI publishes the index. Director general of the VCCI Legal Department Dau Anh Tuan reported that this year the survey received responses from 10,245 private enterprises in 63 provinces and cities (including 2,003 enterprises which were established in 2016 and 2017) and 1,765 FDI firms from 47 foreign countries and territories in 21 provinces and cities. Besides the PCI ranking, the 2017 version will assess the Vietnamese business environment in the eyes of foreign investors. They will assess administrative reforms, business advantages and disadvantages, and labor issues. Tuan revealed that the PCI report will reserve a chapter for business management quality. Earlier in 2016, the central city of Danang dominated the PCI among the 63 cities and provinces in Vietnam for the seventh time, gaining the top score of 70.00. It was followed by Quang Ninh (65.50 points), Dong Thap (64.96), Binh Duong (63.57), and Lao Cai (62.76), while Hanoi ranked 14th with 72.76 points. This will make it the fourth consecutive year that Danang ranks first. The PCI 2016 sent out questionnaires to 11,600 enterprises, around 14 per cent of which were foreign invested enterprises in Vietnam. Last year, the government issued Resolution No.19-2017/NQ- CP dated February 6, 2017 on continuing to implement main tasks and solutions to improve the business environment and enhance national competitiveness in 2017 and orientations towards 2020. Startup Luxstay gets $2.5 million funding Vietnam’s Airbnb-like startup Luxstay has announced an additional $2.5 million mobilised through its Pre-Series A Round from investors including Genesis Ventures, Founders Capital, Y1 Ventures, and two other investors. Previously, Luxstay received funding from Japanese Genesis Ventures and Singapre-based ESP Capital in the middle of 2017. Without detailing the funds for the startup in the first time last year, Genesis Ventures, which also invested in VNG, Foody, Tiki, Vatgia, decided to inject money into the startup after a 30-minute meeting. Working somewhat like short-term apartment rental site Airbnb, Luxstay focuses on luxury accommodation like villas, apartments, and high-end homestays owned by local people across Southeast Asia. The startup was founded by Vietnamese entrepreneur Steven Nguyen and incorporated in Singapore but is currently mostly operating in Vietnam and Thailand. Luxstay targets to become the largest short-term rental platform in Southeast Asia. 60 South Korean enterprises look for Vietnamese partners 60 South Korean enterprises arrived to Vietnam to look for Vietnamese partners in the sectors of electronics, information technology, energy, and consumer goods at the Vietnam-Korea Business Partnership conference organised in Hanoi on March 22. The event is organised by the Korea Trade-Investment Promotion Agency in Hanoi (Kotra Hanoi) with the aim to promote bilateral co-operation between the two countries in the investment and trading sectors. Accordingly, enterprises between the two parties will find partners via business-to-business meetings and then they will sign memoranda of understanding (MoU) with each other. In the framework of the event, along with B2B discussions, Kotra Hanoi will review the operation of the Centre to Apply the VKFTA after two years of being launched. Established in February 2016, the centre provides help to companies from the two countries which operate in fields benefiting from preferential trade policies as stipulated in VKFTA, in order to facilitate trade between them. The Vietnam-Korea Business Partnership conference is one of event chains organised on the occasion of South Korean President Moon Jae-in’s three-day official visit to Vietnam starting on March 22. On the same day, the Vietnam Internet Association (VIA), in collaboration with the Korea National Information Technology Promotion Agency (NIPA), will organise Vietnam-Korea ICT 2018 in Hanoi. The event is expected to attract dozens of well-known firms from Korea and open many strategic cooperation opportunities for the IT enterprises of the two countries, with some businesses signing Memoranda of Understanding (MoU) on business cooperation. Besides, the event will feature topics such as 5G conditions, Korea's digital policy, and Vietnam’s roadmap for IT development. Vietnam is currently South Korea's third largest trade partner and South Korea is Vietnam's second largest trade partner, with bilateral trade volume reaching nearly $61.6 billion last year. On December 20, 2016, VKFTA came into effect. According to the agreement, Vietnam will eliminate tariffs on 89.9 per cent of goods—including plastic materials, apparel, footwear, leather, automobile components, engines, and machinery—imported from South Korea within 15 years. Meanwhile, South Korea will remove tariffs on 95.4 per cent of commodities imported from Vietnam during the same period, such as shrimp, fish, fruits, garments and textiles, timber, and mechanical products. Experts optimistic on Vietnam’s economic prospects for 2018 More positive signals will emerge throughout 2018 as the country builds on the confidence and motivation created by the Government last year, making 2018 the year of opportunity and breakthrough for the Vietnamese economy. Experts gathered at a seminar held by the monthly newspaper Vietnam Economic Times and the Vietnam Chamber of Commerce and Industry in Ho Chi Minh City on March 20 to discuss breakthrough opportunities for economic growth. Agreeing that 2018 will yield more positive signals than 2017, up to 46% of respondents at the conference believe that Vietnam's GDP will grow by 6.5-7% this year, 27% expressed their belief that growth will be above 7%, and 18% said that the economy would grow from 6-6.5%. According to Ngo Van Tuan, Deputy Head of the Party Central Committee's Economic Commission, there were impressive figures in 2017, with GDP growing at 6.81%, exceeding the set target of 6.7% to reach its highest level since 2010. Vietnam's business environment rating increased 14 levels (from 82nd to 68th among 190 economies) and the competitiveness index increased five levels (from 60th to 55th out of 137 economies). Vietnam is actively promoting international integration and innovation, with the signing of 12 Free Trade Agreements (FTAs) and negotiating four new FTAs. In particular, the country signed up to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with the ten other member states of the trade pact. This significant progress contributes to promoting stronger economic integration and enhancing Vietnamese competitiveness in the global market. Deputy Minister of Planning and Investment Nguyen Van Hieu said that for many years, the Government's biggest goal is to "maintain macroeconomic stability and create a favourable environment for production and business operation, thus promoting rapid and sustainable development." Under that direction, the Government always prioritises the improvement of the business environment, enhancing national competitiveness, and integrating solutions to create an equal playground within a fairer and more transparent legal framework. Tran Thanh Hai, Deputy Head of the Import-Export Department under the Ministry of Industry and Trade, said that 2017 was a breakthrough year for both the Government and enterprises. The Government has shown its determination to take effective measures in support of businesses. Dr. Vu Viet Ngoan, member of the Prime Minister's Economic Advisory Group, said that 2018 will be a year of opportunities and challenges. The world economy should see more positive signals than in 2017. In Vietnam, investor confidence will continue to be consolidated. Inflation may increase compared to 2017 but will remain under control. Therefore, 2018 is set to be more positive than 2017, Dr. Ngoan affirmed. VPBank to set FOL at 30 per cent after private placement VPBank (HSX: VPB) is looking to raise capital through a private placement in the upcoming months, then lift its foreign ownership limit (FOL) to 30 per cent and invite potential foreign investors to pay a premium price for its stakes, said the bank’s chairman at the annual general meeting (AGM) held oMarch 19. The total shares on offer for both local and foreign investors, according to the Hanoi-based bank, will be a maximum of 15 per cent of the common stocks on record at the time of the private placement, which is to be held as soon as the end of the second quarter or early in the third quarter the latest. VPBank’s common stocks at present add up to 1.497 million shares. VPBank chairman Ngo Chi Dung noted at the AGM that, “The possibility for the stocks to find foreign investors is rather high, and the price will be higher than the current market price." VPB was traded at VND63,400 ($2.88) on March 19. According to Dung, upon the successful completion of the private placement, not only will the capital adequacy ratio (CAR) be boosted to 18 per cent, but also a considerable reserve will be set aside for the bank to carry out mergers and acquisitions (M&A) activities, which the bank could not do in the past five years due to a lack of capital. “It is the right time for the private placement, as it corresponds with our needs and the demand to enhance our financial capability,” he said. It is the right time for the private placement, as it corresponds with our needs and the demand to enhance our financial capability. At the end of 2017, VPBank reported a total operating income of VND25.026 trillion ($1.137 billion), up 48 per cent on-year and contributing to a compound annual growth rate (CAGR) of 51 per cent for the period of 2012-2017. Breaking down the revenue figure, 79 per cent came from the bank’s strategic segments that include retail banking, SME lending, household-based business lending, and consumer finance. Income from retail banking, in particular, witnessed a growth of 66 per cent throughout the year, while SME lending and commercial banking reported 39 and 250 per cent growth. The consumer finance business under the bank’s subsidiary FE Credit, meanwhile, gained some 52 per cent in revenue growth over the year. The lender’s net interest income reached VND20.614 trillion ($937 million), an increase of 36 per cent on-year. Pre-tax and post-tax profit were recorded at VND8.13 trillion ($369.54 million) and VND6.44 trillion ($292.72 million), respectively, growing some 65 and 64 per cent from 2016. Return on average assets (ROAA) stood at 2.54 per cent, compared to 2016’s 1.86 per cent. VPBank’s total assets were reported at VND277.75 trillion ($12.63 billion) at the end of 2017, a growth of 21.4 per cent compared to the end of the year prior. Its owners’ equity, meanwhile, soared to VND29.695 trillion ($13.49 billion) from the VND17.177 trillion ($7.8 billion) in 2016. Despite the increase in equity, the bank’s return on average equity (ROAE) was kept at 27.5 per cent. Over the course of the year, VPBank’s charter capital increased by VND15.706 trillion ($713.9 million), from the VND9.181 trillion ($417.3 million) at the end of 2016. Its capital adequacy ratio sat at 14.6 per cent, in line with Basel II standards. Toong collaborates with Indochina Vanguard Hotels to implement a co-working space in Wínk Hotels Today, Vietnamese co-working space pioneer and leader Toong and Indochina Vanguard, a hospitality joint venture between Indochina Capital and Vanguard Hotels, announced a partnership to locate Toong co-working space facilities into newly created Wínk Hotels, the first of which is scheduled to open in Ho Chi Minh City in the fourth quarter of 2019.  “By integrating Toong co-working space facilities into this dynamic new chain of hotels, we expect to reform the way business centres operate,” said Duong Do, founder and CEO of Toong. “When business centres are designed with the fashionable and inspirational mindset of a co-working space, they will better meet the expectations of this modern working style.” “Integrating Wínk Hotels into Toong’s large co-working space network will benefit both Toong members and Wínk Hotel guests,” explained Duong. “The intersection of both communities will be a boon for both Wínk and Toong patrons, taking advantage of our respective locations in major cities throughout Vietnam, as well as our presence in secondary cities and neighbouring countries.” Two weeks ago, Toong announced its first foray into the international market, with plans to open a new location in Vientiane, Laos. The partnership will allow both clientele bases to enjoy the advantages of a co-working space while meeting the needs of a new generation of ‘connected’ travellers. Wínk Hotels, a concept developed by Indochina Vanguard, is a vibrant new hotel brand that seeks to redefine affordable luxury in Vietnam and Indochina. Blending modern, creative design and functionality with traditional Vietnamese design and cultural values, each hotel promises to satisfy the young-at-heart traveler’s contemporary desires. Indochina Vanguard intends to roll-out 20 Wink Hotels in Vietnam and neighbouring Indochina countries over the next five years. Toong co-working spaces embody these ideals and will be integrated harmoniously with the innovative service ecosystem of Wínk Hotels, catering to the new age of travelers and entrepreneurs. Although Wínk Hotels will initially focus on becoming the market leader in Vietnam for this particular hospitality market segment, Indochina Vanguard has aspirations to expand the Wínk Hotels brand into neighbouring countries in the coming years. The expansion of Toong coincides with current market trends and the development of the modern office space market. According to Hoang Dieu Trang, senior manager Commercial Leasing Savills Hanoi, co-working will continue to grow to match the economic demands and the evolution of the way millennials work. “The co-working model in Vietnam has room for development to cater to the commercial space needs of the growing entrepreneurial class,” she noted. The partnership will allow both clientele bases to enjoy the advantages of a co-working space while meeting the needs of a new generation of ‘connected’ travelers. Additionally, it creates a platform for business travelers, digital nomads and burgeoning entrepreneurs to expand their network and meet other like-minded individuals while visiting a new city. The collaborative spirit that a Toong facility encapsulates suits the target demographic of Wínk Hotels, making it the ideal partnership. Heerim Architects & Planners to build basic design for new terminal at Long Thanh Heerim Architects & Planners Co., Ltd. from South Korea, which won the design contest for a terminal at Long Thanh International Airport with a lotus-inspired design (LT-03), will be nominated to become the Airport Corporations of Vietnam (ACV) has reported to the Ministry of Transport (MoT) about the selection of the consultancy firm for the basic design of Long Thanh International Airport’s terminal. According to ACV, after the design contest, the oganising board awarded the first prizes to three designs, including one in the shape of a lotus flower (LT-03) submitted by Heerim Architects & Planners, another by Japan Airport Consultants-Adp Ingenierie Shigeru Ban Architects joint venture, which incorporates bamboo furniture (LT-04), and one from CPG Consultant-Azusa Sekkei-Pae joint-venture, which features coconut leaf details (LT-07). All three of these designs were found suitable for the official design for the airport, however, the LT-03 was the best match. ACV divided the feasibility study of the airport into two contract packages, including package for the consultancy firm for the basic design of the terminal (Package 1) and a package for the consultancy firm to build the pre-feasibility study for the airport, excluding the terminal (Package 2). ACV proposed MoT to nominate the consultancy firm for Package 1 and organise a public bidding to select a consultant for Package 2. MoT approved ACV’s proposals and asked ACV (the investor) to organise negotiations with the South Korean partner to build the basic design for the terminal. In order to complete the legal procedures for nominating the consultancy firm for the terminal, ACV proposed MoT to issue a decision on selecting LT-03 as the official design for Long Thanh and simultaneously nominate Heerim Architects & Planners as the consultancy firm for building the basic design for the terminal. Long Thanh International Airport is set to have a total investment of VND336.63 trillion ($14.8 billion), with construction divided into three phases. In the first phase, a runway and one passenger terminal along with other supporting works will be built to serve 25 million passengers and 1.2 million tonnes of cargo each year. This phase is hoped to be finished by 2025. In the second phase, one more runway and another passenger terminal will be constructed to serve 50 million passengers and 1.5 million tonnes of cargo a year. After the third phase’s expansion, the airport will be able serve 100 million passengers and five million tonnes of cargo each year. Fruit processing factory to be built in Hau Giang Authorities of the Mekong Delta province of Hau Giang on March 20 discussed the construction of a factory producing canned fruits and juice in the province with representatives of the Phuc Xuyen company. At the working session, Director of the provincial Department of Planning and Investment Nguyen Huu Nghia informed the firm about incentives for a fruit plant in the province, especially pineapple processing. According to Nguyen Van Dong, Director of the provincial Department of Agriculture and Rural Development, by the end of 2017, Hau Giang was home to more than 39,800ha of fruit trees, producing an estimate of more than 324,400 tonnes of fruits. Notably, pineapple growing area hit about 2,000ha. Director of Phuc Xuyen company Doan The Xuyen voiced his hope that local authorities will help the firm improve its product quality, apply advanced technology and launch pilot agricultural projects. The canned fruits and juice plant will be built on 30,000 square metres and will cost about 170 billion VND (7.46 million USD). It is expected to process up to 10,000 tonnes of fruit per year and export its products to countries in Europe and America. Nghe An: Quarter 1’s industrial production up 15.21 percent The index of industrial production (IIP) in the central province of Nghe An in the first three months of 2018 is forecast to rise 15.21 percent against the same time last year, according to the provincial Department of Industry and Trade. The processing industry experienced an increase of 18.02 percent year on year thanks to local plants’ stable operation. Some industrial products that posted high IIP growth included cement (47.19 percent), yogurt (28.01 percent), milk (18.06 percent), sugar (15.58 percent) and commercial electricity (15.24 percent). During the period, the province approved 23 industrial projects with total capital of more than 4.16 trillion VND (166.4 million USD). They included the Trung Do material building production complex, Masan Nghe An beer and beverage plant, FLC-Tan Ky Nghe An high-tech agriculture zone and a Biomass fuel plant. The province also aims to hasten the construction of some garment plants, hydropower projects and projects in the Vietnam-Singapore Industrial Park (VSIP), while working to develop infrastructure in VSIP and Hermarj and Dong Hoi industrial parks. RoK looks to expanding financial cooperation with Vietnam Chairman of the Financial Services Commission (FSC) of the Republic of Korea (RoK) Choi Jong-ku will pay a four-day visit to Vietnam to seek ways to foster financial cooperation with the country.  During his trip starting March 21, Choi will have meetings with Vietnamese officials, and sign a preliminary agreement on financial technology cooperation with Vietnam, according to a FSC statement.  He will take the occasion to call for Vietnam’s support for RoK financial firms’ operation in the country, and inform Vietnamese partners about efforts made by RoK President Moon Jae-in in promoting relations with Southeast Asian nations.  Vietnam, one of the most important trade partners of the RoK, is home to 48 branches of 34 RoK financial companies.  According to a report of the Korean International Trade Association (KITA), trade between the two countries is expected to exceed 100 billion USD in 2020, making Vietnam the second biggest importer of the RoK. The report attributed the increasing two-way trade to the Free Trade Agreement between Vietnam and the RoK, which came into effect in December 2015. The RoK’s exports accounted for 22.1 percent of Vietnam’s total imports in 2017, it noted.  The RoK is the largest foreign investor in Vietnam with total accumulated capital reaching 57.6 billion USD by the end of 2017. It remains Vietnam’s second biggest trade partner, with two-way trade hitting 61.5 billion USD last year.  The two countries have also witnessed fruitful cooperation in the fields of tourism, official development assistance (ODA) and labour. In 2017, more than 2.4 million Korean tourists visited Vietnam. Around 150,000 Vietnamese expats are living in the RoK and vice versa, actively contributing to the bilateral cooperation and socio-economic development in each country. Better business climate grasps FDI flow from EU Removing trade barriers and cutting down tariffs are the most critical measures to improve investment climate for European enterprises who want to land foreign direct investments (FDI) in Vietnam. Co-Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Nicolas Audier made the suggestion at a ceremony to present the 10th edition of the White Book 2018 in Ho Chi Minh City on March 21. He noted that the EuroCham will work to support Vietnam to better off its business environment so that enterprises of both sides can tape the advantage of the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to take effect in 2018, to the fullest extent. Currently, the EU is a leading partner of Vietnam in various fields such as investment and trade. Last year, the union was the second largest importer of the Southeast Asian nation with total import revenue of 38.2 billion USD. Meanwhile, Vietnam purchased 12 billion USD worth of products from the EU countries.  Thanks to its efforts to ameliorate business climate, Vietnam has been a magnet for FDI enterprises, including those from the EU, said Guru Mallikarjina, Vice President and Managing Director of Bosch Vietnam. He underlined that Vietnam has been on the right track to draw FDI, and investors can increase their presence in other sectors like human resources training, smart city building, infrastructure development and green growth besides business operation.  Dinh Ngoc Thang, Deputy Director of the Ho Chi Minh City Customs Department, said that the White Book will help state management agencies to thoroughly grasp the market trend to make rational changes in regulations to create favourable conditions for foreign investors.  Workshop boosts Thailand’s investment in Binh Duong A workshop was held in Thailand’s capital Bangkok on March 21 to call for Thai investment in Vietnam, particularly the southern province of Binh Duong. The event, themed “Vietnam – business destination in ASEAN” was hosted by Becamex IDC Corporation and the Federation of Thai Industries (FTI). The event presented opportunities for Thai enterprises to explore the economic potential and investment procedures of Vietnam and Binh Duong province, as well as meet with potential Vietnamese partners. Addressing the event, FTI Vice President Kriengthai Thiennukul, described Vietnam as one of the most dynamic economies in the region with a population of nearly 100 million people and increasing purchasing power.  He highlighted the stable politics, abundant workforce and investment incentives, adding that Thai enterprises should take the opportunity to connect with Vietnamese firms. According to Bui Minh Tri, Head of the Binh Duong Industrial Park Management Board, the park is home to 18 Thailand-invested projects, worth 600 million USD, including big groups like SCG, CP, TCC and SriThai. The province aims to improve its investment environment to help foreign investors operate more effectively in the locality, Tri pledged. After 20 years since it was re-established, Binh Duong has become a top destination for foreign investors. It ranks second to Ho Chi Minh City in terms of luring foreign direct investment (FDI), reaching 28.7 billion USD in 3,602 projects from 63 nations and territories. Besides strong development in industry, Binh Duong is working with the Intelligent Community Forum to build a smart city. Thailand has become one of the leading economic partners of Vietnam in ASEAN. The two nations are aiming for two-way trade value of 20 billion USD by 2020. Currently, it is the 10th biggest investor in Vietnam, with 480 projects, worth 8.5 billion USD. University releases report on Vietnam’s economy The National Economics University (NEU) has launched the Vietnam Annual Economic Report 2017, themed “Removing Barriers to the Development of Vietnamese Private Enterprises.” The report was released at a March 22 seminar on Vietnam’s economy in 2017 and prospects for 2018 co-organised by the NEU, the Central Party Committee’s Economic Commission and the National Assembly Economic Committee The report analyses the factual situations of private enterprises, compares them with those of State-owned enterprises and foreign invested enterprises, making judgments on the role of private enterprises in the whole economy, recommending general solutions to promote the development of the private business sector. It said private enterprises have to encounter many barriers on entering the markets, which are related to factors of production including capital, labour, land, technology, infrastructure and logistics. It also clarifies barriers related to business registration, the fulfillment of taxation and custom responsibility and business activities, pointing out subjective and objective causes, recommending solutions to break down the barriers, especially the institutions and government management. EuroCham stresses need to make environment more liberal Vietnam has seen positive trade and investment results with the European Union, but the country should further improve its business environment to make the most of potentials, said Nicolas Audier, co-chairman of the European Chamber of Commerce in Vietnam (EuroCham).  He was speaking at a panel discussion titled “European trade and investment in HCMC: a retrospect of 20 years of EuroCham and outlook on the EVFTA” as part of the Whitebook 2018 Briefing in HCMC on March 21, the Vietnam News Agency reports. The 10th edition which is a collective expression of the views of EuroCham member companies operating in a wide range of industries echoes the European business community’s desire to assist the Government in improving the current legal framework. The discussion focused on diverse trade and investment issues and recommendations from the European business community to the Government. Highlighting the role of European companies and investors as key to Vietnam’s overall foreign direct investment (FDI), the event connected several key topics to the reality of the current business environment in HCMC and southern Vietnam. Nicolas Audier conveyed EuroCham’s overall position: in order for Vietnam to become even more competitive, changing the legal framework to enable trade and investment facilitation towards a better business environment is of the essence. He suggested removing trade barriers and cutting down tariffs are the most feasible measures to improve the investment climate for European companies that want to set up shop in Vietnam. Such moves will help foster trade and investment on the basis of the EU-Vietnam Free Trade Agreement (EVFTA). He noted that EuroCham would support Vietnam to better its business environment so that enterprises of both sides could benefit from the EVFTA which is expected to be signed and come into force later this year. He also highlighted more efforts in this direction would benefit not only the country’s openness towards European business, but ultimately its integration on a regional and global level. The EU is a leading trade partner of Vietnam in a wide variety of trade and investment fields.  In 2017, the EU was the second largest goods importer of the Southeast Asian nation with turnover of US$38 billion while Vietnam purchased goods worth US$12 billion from the union. European companies also injected roughly US$2 billion into Vietnam. Guru Mallikarjuna, vice president and managing director of Bosch Vietnam, said improved policy mechanisms have paved the way for Vietnam in international integration, creating favorable conditions for foreign companies. Vietnam has been on the right track to draw foreign capital, he said, adding investors can penetrate into various fields like manpower training, smart city building, infrastructure development and green growth, in addition to business operation. Pham Thanh Kien, director of the HCMC Department of Industry and Trade, said relations between Vietnam and the EU have been strengthened year by year. HCMC in particular now has more than 7,300 foreign-invested projects worth over US$44 billion, many of them from Europe. Vo Tan Thanh, vice chairman of the Vietnam Chamber of Commerce and Industry, said Vietnam should make use of foreign investments, technology, and management knowledge through FDI attraction. Therefore, the Government should create a more liberal legal framework, and develop and streamline mechanisms in line with international practices. Working team set up to back auto firms The Ministry of Transport has decided to establish an inter-disciplinary working team in charge of supporting local auto manufacturers and importers, news website Dan Tri reports. The working team which also includes representatives of the Ministries of Industry and Trade and Finance, the General Department of Vietnam Customs and the Vietnam Register will be responsible for helping auto enterprises implement Government Decree 116 and the Ministry of Transport’s Circular 03 on auto manufacture, assembly, import, maintenance and warranty services. Besides, the working team will work with auto manufacturers, assemblers, importers and traders to timely remove obstacles to such enterprises in the process of implementing the decree and the circular. Deputy Prime Minister Trinh Dinh Dung earlier assigned the Ministries of Transport and Industry-Trade to consult relevant individuals and agencies over Decree 116 and Circular 03 and propose amendments if need be to ensure the fairness, transparency and competitiveness of local auto firms in line with international practices to develop the local auto sector. Decree 116 issued three months ago with strict requirements on the origin, model, exhaust emission standards and safety of imported autos is aimed at developing the domestic auto industry. However, the decree and Circular 03 remain controversial. European packaging equipment suppliers eye Vietnam market Numerous European providers of processing and packaging equipment are keen on the Vietnamese market though the country has mainly imported such products from Asia. ProPak Vietnam 2018 on food, beverage and pharmaceutical processing and packaging sectors, and Plastics & Rubber Vietnam 2018 for the plastic and rubber industry kicked off on March 20 at the Saigon Exhibition and Convention Center (SECC) in HCMC. The two international expos under the same roof attract numerous enterprises from Poland, Italy, Denmark, France, Germany, Finland, Spain, Portugal, Turkey, Sweden, the UK and Hungary. European suppliers of packaging and equipment participate in the two exhibitions as they see the sustainable and strong growth of Vietnam’s economy and the huge demand for fast-moving consumer goods, packaged food, beverages and pharmaceutical products. Particularly, 24 Italian firms are introducing processing and packaging solutions and technologies at the event. They are sponsored by the Italian Ministry of Economic Development, the Italian Trade Agency, the Italian Packaging Machinery Manufacturers Association and the Italian Manufacturers Association of Machinery for the Graphic Converting and Paper Industry. Paolo Lemma, Italian Trade Counselor in Vietnam, said most companies participating in the two exhibitions already have distributors, agents, representative offices and branches in Vietnam. Still, they come to sound out more business opportunities in Vietnam, foster cooperation with Vietnamese partners and seek new ones. Oscar Belli, international manager at ACIMGA, said this is the second straight time ACIMGA has supported enterprises participating in the exhibitions in Vietnam. ACIMGA’s members consider Southeast Asia a potential region, especially Vietnam with a large population, and they plan to invest in machinery and equipment to create high-quality and environmentally-friendly products. High-quality, flexible and energy-saving Italian equipment can meet the needs of Vietnamese producers. Italian firms want to penetrate into the Vietnamese market which has mainly imported packaging machines from South Korea, China, Taiwan and Japan, said Belli. Stefania Arioli from the Italian Plastics and Rubber Processing Machinery and Molds Manufacturers Association said Italian plastic and rubber equipment suppliers have recently promoted exports to Vietnam with 18 million euros (US$22.1 million) last year compared to 12.6 million euros in 2015. At the expos this time, more than 60 Italian firms have come to exhibit their products and technologies, said Paolo Lemma. Meanwhile, Michael Przytulla of the German Food Processing and Packaging Machinery Association (VDMA) said the event attracts 25 companies from Germany. The demand for packaged food in Vietnam is increasing. The Vietnamese market’s high demand and new consumer trends have enticed German enterprises to diversify their equipment to meet the needs of customers. ProPak Vietnam 2018 and Plastics & Rubber Vietnam 2018 are jointly organized by UBM BES Vietnam and Messe Dusseldorf Asia. UBM VES Vietnam general director BT Tee said more than 420 firms from 29 countries and territories participate in ProPak Vietnam 2018 including 11 international pavilions of India, Germany, South Korea, Japan and Thailand. Meanwhile, Plastics & Rubber Vietnam 2018 features seven pavilions of 160 enterprises from 20 countries and territories such as Austria, the Czech Republic and Singapore. Six Decrees on banking system eliminated The Government has issued Decree No.42/2018/NĐ-CP on annulling some Governmental Decrees on the banking system.  Annulled Decrees include: 1 - Decree 14/CP defining regulations on allowing households to borrow loans in order to develop agro-forestry, fisheries and rural economy 2 – Decree No. 48/2001/NĐ-CP on organization and operation of people's credit fund 3 – Decree No. 69/2005/NĐ-CP on amendments and supplements to a number of provisions of Decree No. 48/2001/ND-CP dated August 13, 2001 of the Government on organization and operation of the People's Credit Fund 4 – Decree No. 22/2006/NĐ-CP on organization and operation of foreign bank branches, joint-venture banks, banks with 100% foreign capital, and representative offices of foreign credit institutions in Viet Nam 5 – Decree No. 59/2009/NĐ-CP on organization and operation of commercial banks 6 - Decree No. 05/2010/ND-CP stipulating the application of the Bankruptcy Law to credit institutions Decree No. 42/2018/NĐ-CP will come into effect since July 1, 2018.  VNN