BUSINESS IN BRIEF 22/4 Vietnam to attend China International Import Exposition Vietnam will display various kinds of products such as farm produce, processed food, consumer products and trade services in 60 pavilions at the China International Import Exposition (CIIE) 2018 which is scheduled to take place in Shanghai city from November 5-10. The Vietnam Trade Promotion Agency (VTPA) under the Ministry of Industry and Trade introduced the event during a press conference in Ho Chi Minh City on April 13. VTPA Director Vu Ba Phu said the expo will create an excellent opportunity for Vietnamese businesses to make inroads into the market, helping narrow the trade gap with China, as well as expand cooperation with Chinese partners and hundreds of other participating economies. To boost exports to China, businesses need to increase the quality of products, build brand names, and improve packaging and designing. At the same time, they need to update information about the market, import-export policies, and customers’ demand in different Chinese localities.  More than 100 countries are expected to join the CIIE 2018 with over 150,000 customers in and outside China. The business exhibition area of the expo will cover 210,000 square meters, consisting of two sections: goods and services.  The goods section will feature high-end intelligent equipment, consumer electronics and appliances, automobile, apparel, accessories and consumer goods, food and agricultural products, medical equipment and medical care products.  Meanwhile the services section will comprises tourism services, emerging technologies, culture and education, creative design and service outsourcing. Phu Tho Province calls for more Japanese investments         The northern province of Phu Tho hopes Japanese businesses will continue to invest in the Vietnamese locality and commit to create favourable conditions for their operation. Chairman of the provincial People’s Committee Bui Minh Chau said this at a conference in Tokyo, Japan, on April 12 to promote Japanese investments in Phu Tho. The event was co-organised by the Vietnamese Embassy in Japan, Japan External Trade Organisation and ASEAN-Japan Centre. More than 50 Japanese businesses and investors participated in the event. Chau highlighted the province’s advantages, such as its proximity to Ha Noi’s Noi Bai International Airport as well as a modern and synchronous port system and socio-economic infrastructure. The province has great potential in manufacturing, assembling industry, construction material production, hi-tech agriculture and forestry, he said. There is also room for tourism development as Phu Tho is home to two world cultural heritage recognised by UNESCO---worshipping of Hung Kings and traditional “xoan” singing, he added. The chairman said Japanese firms were currently running seven projects in the province worth nearly US$40 million, mainly in the fields of wood processing, garment-textiles and footwear. According to Vietnamese Ambassador to Japan Nguyen Quoc Cuong who was also present at the event, relations between Viet Nam and Japan are at their peak and thriving in all spheres, particularly economy, trade and investment. Apart from large companies, small-and medium-sized enterprises from Japan are increasing investments in Viet Nam, he said, noting that 1,800 Japanese businesses have registered to partake in the Japan Business Association in Viet Nam, making it the largest association of its kind in the world. The ambassador hoped that the conference would encourage Japanese enterprises to choose Phu Tho as a reliable investment destination.  Binh Duong shortens duration of business registration      The southern province of Binh Duong will shorten the time for enterprises to start up their business in a bid to improve the province’s investment and business environment, said Tran Thanh Liem, provincial People’s Committee chairman. Specifically, the committee will process enterprises’ application for business certificates in a maximum of two working days. It will also reduce by half the time for granting investment registration certificate as well as link the tax, labour and insurance procedures. According to Liem, to reduce the legal compliance costs for enterprises, the committee will review, cut and simplify administrative procedures; reduce some kind of charges and eliminate some unnecessary fees as well as publisise 100 per cent of the procedures related to business registration and investment and the planning of the province on the website. In the first quarter of 2018, the province had 788 newly established businesses, with a total registered capital of more than VND7.91 trillion (US$347 million). Of this, 755 were domestic enterprises, with a total capital of nearly VND4.47 trillion, and 33 were foreign direct investment ones, with a total capital of over VND3.44 trillion. Ford Vietnam gets 37th dealership      Ford Vietnam has a new authorised dealer in the northern province of Thai Nguyen, its 37th in the country so far. The 10,000sq.m showroom in Thai Nguyen city displays all segments of vehicles Ford sells in the country. Ford Thai Nguyen has a maintenance area of 5,000sq.m that can service 100 cars a day. Elsewhere, Ford has moved its Dong Nai dealer to Amata trade centre in Bien Hoa City. The new showroom cost VND135 billion. The company said the two dealers provide a complete range of services including buying and selling second-hand cars, selling parts, doing repairs and servicing, and consultancy. They all meet the company’s international standards, it added. After 22 years in Viet Nam, Ford has many segment-leading cars in its line-up.  Tra Vinh to aid coconut producers      Coconut producers have been given a timely boost after plans were revealed to offer more support to those who work in the industry. Small and medium-sized enterprises (SMEs) operating in the Mekong Delta province of Tra Vinh received the welcome news this week from To Ngoc Binh, deputy director of the provincial Department of Planning and Investment and director of SME Tra Vinh project. Coconut growing is a big deal in Tra Vinh as it’s the second largest plantation in the Mekong Delta with near 20,000ha. According to the provincial Department of Agriculture and Rural Development (DARD), in order to upgrade the value chain of the industry, the province will focus on strategic solutions such as improving technologies and techniques; replacing coconut cultivars; mechanising transportation; preliminary processing and packaging of coconut fiber industry and diversifying products from coconut fiber and coconut peat. Tra Vinh will also focus on improving the capacity of corporate management and market access, establishing a satellite network to supply coconuts to processing plants, increasingly promoting trade and supporting enterprises. A recent survey in two districts with the largest area of coconut in the province (Cang Long and Tieu Can) revealed companies operating in the coconut industry in the province mainly use coconut fiber as materials to produce nets, coir, mat and activated carbon. Meanwhile other materials such as copra and coconut milk are made use of by traders and processors outside the province. It’s hoped in the future local traders and farmers will be able to expand their business to get the best prices for the fruit. Relevant units will now spend time assessing and analysing the business and propose better solutions to the problems many farmers face, said Pham Minh Truyen, vice director of the provincial DARD. Currently, there are six enterprises operating in the coconut industry of Tra Vinh. The province strives to more than double that to 15 by the year 2020, with at least four of them exporting directly. And it wasn’t just coconuts that came under the spotlight. On Wednesday, Tra Vinh’s DARD and SME project management board also organised a conference to seek solutions for enhancing peanut’s value. Currently, peanut planting productivity in the province reaches the highest in the country with more than five tonnes per ha. Peanut from this area are known for being top quality, with big seeds, bright shells and low impurities. They are considered perfect for processing and export. But despite all their good points, the industry has suffered a number of blows. Right now, the sources of seed supplied by local people only meet about 20 per cent of the demand, 80 per cent of the remaining peanuts are imported from other provinces. There is also lack of peanut processing enterprises in the province, causing obstacles for consumption market. Hence, the upgrading of the peanut industry’s value chain to reduce costs and increase profits is an urgent task, Truyen said. But there is light at the end of the tunnel, as DARD is in the process of testing new types of peanuts that can be grown in the rainy season. If successful, these peanuts will be rolled out and put into use. The Tra Vinh SME project, carried out during 2014-20, is sponsored by the Canadian Department of Foreign Affairs and International Trade with a total investment of 12.1 million CAD (US$9.8 million), with 11 million CAD being non-refundable aid. The provincial People’s Committee has also issued a policy to provide financial support to cooperatives and their alliances when joining the large-scale field model, which is being implemented in the locality. Under the policy, farmers who are growing rice, fruit trees, and coconuts will be provided with VND840,000 (US$36.84) per ha for the first crop and VND560,000 per ha for the second crop. Farmers join the large-scale field model will also receive subsidy of 30 per cent of seed or sapling costs for the first crop. Land prices in Danang continue rising Investors have been rushing to buy land in the central city of Danang, pushing land prices in the city up even further. Land prices in new urban areas in the north-west of the city have increased by 30-50% compared to late 2017. Nguyen Hoai Anh, a member staff from a real estate company in Danang said that these days his company serves dozens of customers daily. Truong Thi Trang from another real estate firm in the city said that up to 80% of customers who come to buy land in Danang are from other localities, including Hanoi and HCM City. Most of them just want to buy land for speculation. Land in many projects in the south and western north of the city have been sold out. “The demand for land plots in the city is very high and there’s no new land available. At this time, we’ve mainly traded land which is just changing hands for speculation,” Trang added. According to Tran Van Nguyen, an investor from the central province of Quang Nam, claimed Danang had announced some property projects recently, which was among the reasons for higher land prices in the city. Dam Quang Tuan, chairman of Danang Real Estate Association alleged that this was a good sign for the city’s property market, but poses a high risk for investors. Investors need to carefully study municipal planning. Lazada hit again by investigation over complaints of poor-quality items? A customer bought a new electronic item on Lazada.vn which absolutely cannot be used. According to a feedback from consumer Trinh Xuan Dieu to newswire ICTnews, Dieu ordered a wireless HDMI equipment AnyCast M2 Plus in black at the price of VND249,000 ($11) sold by Hola Hola company in Ho Chi Minh City. Dieu said this item is new but faulty, and can not be used. Dieu claimed: “After I complained, Lazada.vn told me to return the item and promised to pay my money back. However, after more than two weeks and after five complaints, Lazada has yet to return the amount that I paid for this poor-quality item.” In the last few years, ICTnews said it has been receiving many feedbacks and complaints from Lazada.vn’s customers. They were made angry enough by the slow and irresponsible service at Lazada to send letters to the Vietnam Competition Authority (VCA) of the Ministry of Industry and Trade (MoIT). This authority also confirmed receiving numerous letters related to Lazada’s quality of goods and services. The complaints focus on delays in delivery, the items being different from the advertisement, delivery of used items, cancellation of orders, and price fraud. Therefore, MoIT has conducted an investigation to determine whether the platform observes the law on commerce and protects consumers’ interests. The results will be announced in the coming time. Workshop discusses sustainable lobster farming in central Vietnam Workshop on sustainable lobster farming took place in Nha Trang city, the central coastal province of Khanh Hoa on April 13, bringing together policymakers, researchers, business representatives and farmers from central provinces of Quang Ngai, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan. The attendees focused their discussion on lobster farming-related policies, post-disaster support for the aquaculture industry, new lobster farming techniques and how to prevent the spread of diseases on lobsters. According to the Directorate of Fisheries, the number of lobster cages in Vietnam rose from 49,000 in 2010 to 83,000 in 2017. The country’s lobster output was estimated at about 1,530 tonnes last year, mostly from Khanh Hoa (984 tonnes) and Phu Yen (500 tonnes). However, lobster price fell from 2.5 million VND (110 USD) in 2014 to 1.6 million VND (70.4 USD) this year. Speaking at the event, Tran Cong Khoi from the Directorate of Fisheries said the unsustainable development of lobster farming will result in a low and unstable yield. Despite high economic value, the sector faces many challenges in planning and management, he noted, adding that the increase in the density of lobster cages and the expansion of lobster farming in tourist and industrial areas are among the sector’s problems. He also named other issues like old and non-ecofriendly farming practices and lack of links between farmers and traders. Khanh Hoa is home to over 40,000 lobster cages while Quang Ngai has started breeding lobsters in recent years with about 400 cages over an area of 2,000 sq.m. Phu Yen is one of the biggest lobster breeders in Vietnam and the success of the lobster industry here has helped improve incomes of local farmers. Bidding documents for My Thuan – Can Tho highway to be sold The Transport Ministry’s Thang Long project management board will sell bidding documents for My Thuan – Can Tho highway project from April 15 to May 15. Nguyen Danh Huy, head of the Public-Private Partnership Department, said the ministry has decided to raise investors’ capital to 20 percent of the total. The 23.6m-long My Thuan – Can Tho highway will start at the National Road No. 80 intersection in the southern province of Vinh Long and end at Cha Va – National Road No.1 intersection. During the first stage, the highway will be built with four lanes and designed vehicle speed of 100km per hour. The Build-Operate-Transfer project will be carried out in public-private partnership model at a total cost of over 5.4 trillion VND (211.7 million USD). On March 29, the Government Office issued Notice No.2893/VPCP-CN on accelerating the progress of investment projects, including asking the Transport Ministry to take synchronous measures to build roads in the Mekong Delta, firstly Trung Luong – My Thuan and My Thuan – Can Tho highways. Cooperatives, clean farming methods help farmers raise the bar More and more farmers in Vietnam are discovering the benefits of working with cooperatives and export companies and using clean farming methods to ensure high-quality produce. In places like Tien Giang and Dong Thap provinces there are many agricultural cooperatives that comply with VietGap standards and sell their produce to exporters like Vina T&T. For example, all 28 large dragon fruit farmers in Tien Giang are members of cooperatives which instruct them to use clean farming methods and avoid certain chemicals. They sell their entire output to export companies and not to traders. They thus have a reliable buyer whereas selling to traders often leaves them at their mercy. The cooperatives schedule the cultivation and harvest of its members to ensure the harvest is spread throughout the year to ensure supply and thus prices do not fluctuate. Huynh Van Quyen, a dragon fruit farmer said: “I have been working with the local co-operative and Vina T&T for around five years. I have been learning a lot from other farmers and the cooperative staff, who are very helpful and clear in their instructions. My fruit output, quality and income also saw great improvements.” Vina T&T and the cooperatives it works with assign area codes for each farmer as required by the US when it imports fruits.  The dragon fruits are also exported to markets like Germany, and since they meet international quality standards, are very well received there. Since the cooperatives work closely with their farmers, the product quality is consistent throughout the entire province, making it easier to export. Longan farmers in Dong Thap are also instructed by their cooperative and Vina T&T not to use chemicals to match international standards, which greatly boosts the quality of their fruit. Le Thanh Loc, a longan farmer in Dong Thap’s Chau Thanh district, said: “Earlier Chau Thanh farmers would use their own individual methods without caring much for clean farming, so our output was not that high and some were even affected by plant diseases. After working with a farming expert, Dr Nguyen Dang Nghia, locals have realised the importance of clean farming and changed their ways.” Overall, farmers improve quality and output when they join cooperatives and adopt clean farming practices, according to insiders. In the past they would follow their instincts or simply copy from others, some switching between crops regularly depending on what is popular at the time. Now more and more farmers around the country have greater awareness and are seeing the big picture, realising the benefits of organised work, clean farming and export. Ho Chi Minh City supports agricultural start-ups The agricultural start-up forum, themed “Incubating Vietnamese businesses”, took place in Ho Chi Minh City on April 13. The event aimed to encourage start-up movement and establish young agricultural firms using modern technology to develop clean and safe farming. Speaking at the event, Deputy Director of the municipal Department of Agriculture and Rural Development Tran Tan Quy said the city strives to record 500,000 firms by 2020, at least 1,500 of them operate in agriculture in accordance with the government’s Resolution No.35 on supporting and developing enterprises. Over the past two years, up to 300 agricultural firms have been established, bringing the total to nearly 1,300, he said, adding that the city is willing to offer more preferential loans to them and encourages the establishment of agricultural cooperatives. The municipal People’s Committee issued a decision guiding the enforcement of Resolution No.10/2017/NQ-HDND dated December 7, 2017 of the municipal People’s Council on encouraging switch of urban agriculture structure for 2017-2020. Accordingly, the city will offer zero-interest loans to high-tech agricultural projects. Prof. Phan Van Truong, head of the Vietnamese agricultural start-up club, suggested that young people initially invest in profitable fields and then call for investment. Once they are financially strong, it will be easier to lure investment. Speakers inspired young people with “start-up mindset” and pointed out challenges to agricultural start-ups to seek proper measures. The organising board introduced incentives and training courses to create a driving force for start-ups and connected businesses with start-up ideas. Government raises 61.5 million USD from SOE divestment The Government raised more than 1.39 trillion VND (61.5 million USD) by divesting its stake in State-owned enterprises (SOEs) in the first quarter of this year, according to the Ministry of Finance. During this period, authorities also approved the equitisation plans of two SOEs - Phuoc An-Dak Nong Coffee Company and Van Tuong Company - at a total value of 987 billion VND, of which 187 billion VND is State capital. The first quarter also saw several equitised SOEs complete initial public offering (IPO) auctions, such as Binh Son Refinary, PV Oil, PV Power and Vietnam Rubber Corporation. According to data of StoxPlus Company, Vietnam’s stock markets raised 21.3 trillion VND through the IPO auctions of 12 SOEs in the first quarter, equal to the total IPO value of the previous four years. Experts attributed the high growth to a wave of equitisation of many large SOEs in recent times, especially in the field of energy. Vietnam considers 2018 a key year in the country’s restructuring plan for SOEs, targeting to divest State capital at 181 SOEs and equitise at least 86 SOEs throughout the year, with 64 being large ones. The target is tough, but experts believe it is feasible, thanks to many favourable conditions, including high economic growth and macro-economic stability. Investors are waiting for IPOs of large companies in the trade and services sectors, such as Mobifone, Ben Thanh Group, Satra and Saigon Tourist, or in the real estate and construction sectors, such as Investment Corporation and Hanoi Housing Development Corporation. Last year, the Government raised over 144.5 trillion VND by divesting its stake in SOEs. The proceeds were 2.41 times higher than the target of 60 trillion VND set by the National Assembly. Made-in-Vietnam products dominate supermarket shelf in HCM City Domestically-made goods occupy between 65-95 percent of shelf space at many retail chains in Ho Chi Minh City, a result attributable to the campaign “Vietnamese use Vietnamese goods”. A report of the city’s steering committee for the campaign said the ratio of Vietnamese goods range from 90-93 percent at Co.opmart stores; 90-93 percent at Satra supermarkets, 96 percent at Vinmart’s and 95 percent at Vissan stores. A conference reviewing the three years of implementing the campaign in Ho Chi Minh City on April 13 heard that positive changes have been seen in public awareness and consumption habit. The campaign also contributed to raising domestic firms’ awareness about the importance of the domestic market. Around 1,000 enterprises in HCM City have earned the title “High-quality Vietnamese goods” for their products. Tran Tan Ngoi, Standing Vice Chairman of the HCM City chapter of the Vietnam Fatherland Front, said the combination of the campaign and a programme to build safe food product chains has helped win more public attention and approval. HCM City intends to push forward with the campaign in 2018-2020 along with providing assistance for local enterprises in enhancing production capacity and product quality to better meet local consumption demand and change consumers’ habits. It is also necessary to intensify market management to prevent fake products from marring the prestige of high-quality Vietnamese goods, according to the steering committee for the campaign “Vietnamese use Vietnamese goods”. Vice President of the Vietnam Fatherland Front Central Committee Truong Thi Ngoc Anh suggested that the city continues to implement the Government’s scheme on developing the domestic market in combination with the campaign “Vietnamese use Vietnamese goods”. The scheme calls for moves to develop distribution channels for domestic commodities, tighten market management, encourage producers to improve their products’ competitiveness and develop Vietnamese brands. The campaign “Vietnamese use Vietnamese goods” was first launched in 2009 by the Party’s Politburo. On April 10, 2015, the Party Central Committee’s Secretariat issued a conclusion requiring stepping up the Party’s leadership of the implementation of the campaign. Vietnam to attend China International Import Exposition Vietnam will display various kinds of products such as farm produce, processed food, consumer products and trade services in 60 pavilions at the China International Import Exposition (CIIE) 2018 which is scheduled to take place in Shanghai city from November 5-10. The Vietnam Trade Promotion Agency (VTPA) under the Ministry of Industry and Trade introduced the event during a press conference in Ho Chi Minh City on April 13. VTPA Director Vu Ba Phu said the expo will create an excellent opportunity for Vietnamese businesses to make inroads into the market, helping narrow the trade gap with China, as well as expand cooperation with Chinese partners and hundreds of other participating economies. To boost exports to China, businesses need to increase the quality of products, build brand names, and improve packaging and designing. At the same time, they need to update information about the market, import-export policies, and customers’ demand in different Chinese localities. More than 100 countries are expected to join the CIIE 2018 with over 150,000 customers in and outside China. The business exhibition area of the expo will cover 210,000 square meters, consisting of two sections: goods and services. The goods section will feature high-end intelligent equipment, consumer electronics and appliances, automobile, apparel, accessories and consumer goods, food and agricultural products, medical equipment and medical care products. Meanwhile the services section will comprises tourism services, emerging technologies, culture and education, creative design and service outsourcing. Czech Republic wants to boost business ties with VN     Many Czech firms are looking for investment opportunities in Viet Nam and Viet Nam could do more to show that it is looking to do business with them, the Czech Republic’s Deputy Minister of Industry and Trade Vladimir Bartl has said. Speaking at a conference in HCM City yesterday attended by Czech business delegations seeking customers and partners in Viet Nam, he said the Czech Republic has invested US$90 million in 36 projects in Viet Nam. Viet Nam and the Czech Republic have been partners for nearly 70 years, and his country ranks Viet Nam among its most important business partners in Asia and ASEAN, he said. But more can be done to reach their full bilateral trade potential, he said. Czech businesses can invest in fields such as infrastructure, energy, insurance and environmental protection, he said. “We are also very competent in city planning, transport, public transport and traffic control. Those are the references we have in many countries, and we can bring that to your region.” The Vietnamese Government and businesses need to give a clearer signal that they are looking for investment and business opportunities, he said. "The Vietnamese Government should continue to create a good business environment and strive to wrap up the EU-Viet Nam Free Trade Agreement as soon as possible," he said. Vo Tan Thanh, deputy chairman of the Viet Nam Chamber of Commerce and Industry, invited more Czech businesses to invest and do business in Viet Nam, especially HCM City, adding that Vietnamese firms should be more pro-active and network with their Czech counterparts. Statistics from the General Department of Customs revealed that bilateral trade turnover reached more than $257 million in 2017, representing a modest yearly increase of 3 per cent. Of the sum, Viet Nam exported $151 million worth to the Czech while its imports hit $106 million. Price-stabilisation efforts a hit     Ninety companies have signed up for HCM City’s price stabilisation programmes this year and the 2019 Lunar New Year, two more than last year, according to the city Department of Industry and Trade. Speaking at a meeting on Thursday, Nguyen Nguyen Phuong, head of the department’s trade management division, said: “Though the number of participating firms increased by just two compared to last year, the supply of goods will be 30-35 per cent higher than last year.” The city is simultaneously implementing four programmes to stabilise the prices of essential foods and foodstuffs, school supplies, dairy products, and medicines for a year starting on April 1. The products will account for 25-40 per cent of market demand, an increase of 15-35 percentage points from last year. For instance, under the programme for essential foods and foodstuffs, 10 groups of goods -- rice, sugar, cooking oil, poultry and cattle meat, poultry eggs, processed foods, fruits and vegetables, seafood, and spices – are sold at stabilised prices. This year, for the first time, spices are included in the list of essential goods. The products will meet 25-35 per cent of demand, rising to 30-40 per cent during Tet. In the school supplies programme, 103 types of products (22 more than last year) are covered, with over 17 million notebooks, 570,000 uniforms, over 1.86 million schoolbags and backpacks and 920,000 pairs of shoes set to be sold. The two remaining programmes stabilise the prices of formula milk for babies and pregnant women, milk powder and milk fortified with micronutrients, 21 medicine groups, 176 active ingredients, and 383 items, accounting for 50 per cent of the market for essential drugs. All products are sold at 5-15 per cent lower than market prices. This year 12 banks have signed up for the programmes, three more than last year, and they would lend VND19.65 trillion (US$861.8 million) to the participating companies at interest rates of 5.5-7 per cent for short-term loans and 9-10 per cent for medium- and long-term loans, Phuong said. The State Bank of Viet Nam has said the banking sector would continue in the programme next year. This year the SBV and the department would strengthen the programme that brings banks and businesses together for the latter to borrow for production and distribution, thus enabling a stable source of supply of goods for the city, he said. A HCM City Export Processing and Industrial Zones Authority official said workers in industrial parks have great demand for price-stabilised products, and called for more mobile sales trips to these areas. Nguyen Quynh Trang, deputy director of the department, said the department would work with businesses every year to ensure the products they supply to the market are of high quality and preferred by customers. “We hope that through the programme businesses will focus on improving their production capacity and product quality.” The programme has benefited both consumers and producers in the past, and more and more firms are signing up. They have contributed greatly to developing distribution channels for Vietnamese products and the “Vietnamese people give priority to using Vietnamese goods” campaign, controlling inflation and ensuring social security, the department said. There were 10,602 outlets selling price stabilised goods by the end of last year, an increase of 1,397 compared to 2016. HCM City reviews programme to promote local goods     A campaign aimed at getting locals to buy locally produced goods has yielded positive results. The “Vietnamese give priority to using Vietnamese goods” campaign took place in HCM City between 2015-17. Speaking at a meeting in HCM City on Friday to review the campaign, Vice Chairman of the HCM City Fatherland Front Committee Tran Tan Ngoi said many activities like trade fairs and marketing campaigns were organised to promote the use of local products. "Companies’ awareness of the importance of the domestic market has improved and they now pay attention to local customers’ tastes and seek to expand their distribution networks, even to remote areas," he said. "Vietnamese goods now account for a large proportion of sales in the city’s wholesale and retail system," he said. At the end of last year the city had 239 traditional markets, 207 supermarkets and 43 shopping malls. Most large distribution systems in the city actively participated in the campaign. The ratio of domestic goods sold at supermarkets is now between 65-95 per cent, he said. At Co.opmart, Vietnamese goods account for 90-93 per cent, and the company organised mobile sales trips to take them to rural areas, he said. According to permanent Deputy Secretary of Saigon Co.op’s Party Committee Quach Cuong Saigon Co.op [which runs Co.opmart] has more than 300 outlets selling essential products and fresh foods, all of which meet safety standards. It has invested in co-operatives and businesses to produce and supply more high-quality products to consumers. It has also invested directly or indirectly in other provinces and plans to invest more to develop an organic agricultural model to better meet market demand. Meanwhile Tran Tan Ngoi admitted that despite achieving encouraging results the campaign had shortcomings because some localities in the city had not implemented it well. “Most businesses were small or medium-sized with limited competitive capacity, so they faced difficulties in competing with imported products, especially amid deeper international integration,” he said. Though official agencies had made efforts to regulate quality and prices, a large number of fake and poor quality goods were still sold in the market, affecting the prestige of Vietnamese goods as well as causing difficulties for domestic businesses in expanding their production and trading, he added. “A certain segment of consumers, especially those with high incomes, preferred imported goods to those made domestically,” he said. The campaign continues, and in the next three years the city plans to enhance it to increase consumption and boost the production of high-quality goods to meet domestic and export market demands. Vo Thi Dung, Deputy Secretary of the city’s Party Committee and head of the campaign’s steering committee, urged relevant agencies to review their publicity methods to improve efficiency. They should “intensify checks to prevent fake goods” since they threaten consumers’ health. They also need to increase consumer confidence in local products, she said. Enterprises should focus on improving their production technologies to produce consistently high quality products, she said. At the meeting 68 businesses and organisations and 25 individuals received certificates of merit from the city People’s Committee for their contributions to the campaign. Quang Tri attracts investment in economic zones     The central province of Quang Tri is offering many preferential policies to investors in the East South Economic Zone (EZ). These include preferential land lease, corporate tax incentives and spending over VND1 trillion (US$44 million) on constructing infrastructure in this EZ. This was announced by Nguyen Quoc Tuan, deputy director of QuangTri’s Department of Planning and Investment. Besides attracting domestic investors, the economic and industrial zones of Quang Tri Province are attracting many major investors from Japan, Singapore, South Korea and Russia. These firms are interested in areas such as energy, infrastructure and hi-tech agriculture. To lure more investments in economic and industrial zones, the province has incorporated policies to create the most favourable conditions for enterprises, including preferential land lease and simplification of administrative procedures. As of April 12, the province’s economic and industrial zones attracted 149 investment projects, with a total registered capital of more than VND98 trillion. Of this, 88 projects have become operational, 50 are under construction and 11 are awaiting investments. Quang Tri Province has two economic zones (East South and Lao Bao) and three industrial parks (South Dong Ha, Quan Ngang and West North Ho Xa). At present, the province is focused on attracting strategic investors to the East South Economic Zone, which has an area of nearly 24,000ha spreading across 17 coastal communes in the three districts of Hai Lang, Trieu Phong and Gio Linh. Last year, the industrial production value of industrial and economic zones combined reached over VND4 trillion, accounting for 40 per cent of the province’s total industrial production value, contributing more than VND350 billion to the State budget and creating jobs for some 5,200 workers. HCM City to promote trade, investment in Cuba     The Investment and Trade Promotion Centre (ITPC) of HCM City will send a delegation to study the market and promote trade and investment in Cuba from April 15-24. The delegation will include representatives of local producers and exporters in food processing, consumer goods, construction and services. Cuba is pursuing more open economic policies while amending many old ones to integrate with the global economy. The country has been boosting trade and calling for investment to improve the competitiveness of its economy. It has particularly focused on constructing new sea ports and railways, developing information technology infrastructure and reforming metallurgy and mining industries while giving priority to food processing and beverages. Cuba wants to export goods such as pharmaceutical and biological products and services in tourism and healthcare. Meanwhile, Viet Nam holds the advantage in exporting textiles and garments, footwear, handicraft, agriculture and aquaculture. The country has been looking for investments in construction, energy, industry, hi-tech agriculture, education, healthcare and tourism. These factors leave enormous potential for enterprises of both sides to satisfy the needs of the Cuban market and to cooperate in trade and investment. The Vietnamese delegation’s visit to Cuba aims to seek a market for building material, handicraft products, textile-garments, footwear, food, mechanical and electronic products, and plastics. The delegation will introduce to Cuban investors HCM City’s business climate and some key projects in transportation, infrastructure development, education, healthcare and hi-tech agriculture. According to Pham Thiet Hoa, ITPC director, trade between Viet Nam and Cuba has increased significantly in recent years but remains modest compared to the potential. Bilateral trade amounted to US$250 million in 2016, with Viet Nam’s exports to Cuba accounting for $240 million. Petrolimex loses 24% in post-tax profit in 2017     The Vietnam National Petroleum Group (Petrolimex) has reported that its audited combined post-tax profit for 2017 had dropped by more than VND1.23 trillion (nearly US$55 million) compared to 2016. Petrolimex recorded VND3.9 trillion in its audited combined post-tax profit for 2017, down 24 per cent from the previous year. The reason was that the growth of cost of goods sold or cost of sales had exceeded its revenue growth by five per cent due to the rapid increase in crude prices. Cost of goods sold or cost of sales is an accounting term that refers to the direct costs attributable to the production of goods in a company. This amount includes the cost of raw material to produce the goods along with the direct labour costs. It excludes indirect expenses such as distribution costs and sales force costs. Global oil had a successful year in 2017, with Brent crude rising by a total of 17.7 per cent to end the year at $66.87 per barrel compared to the 2016-end level of $56.82 per barrel. The figure for US crude West Texas Intermediate was 12.5 per cent. In addition to this, Petrolimex also noticed its gross profit margin pulled down as the average import duty, based on which the base petrol prices are calculated and adjusted, was lower than the actual import duty for petrol products in some periods of the year. The group recorded that some of its associate companies had to make corporate tax payments, which were extracted from their tax incentive differences in the previous years, thus reducing Petrolimex’s post-tax profit. Petrolimex started listing more than 1.29 billion shares on HCM Stock Exchange on April 21, 2017, under code PLX at VND49,390 ($2.2) per share. The company’s shares have risen strongly since then, peaking at VND93,100 per share on January 25, 2018. PLX closed today down 4.4 per cent at VND76,500 per share from the previous day’s price. Automechanika HCM City to begin on April 25     Automechanika HCM City (AMHCMC), the business exhibition for the automotive services sector in Viet Nam, will be held at Saigon Exhibition and Convention Centre (SECC) from April 25 to 27. The 2018 edition of the exhibition will again connect local and international industry players in the automotive sector, including around 360 exhibitors and 8,500 visitors from around the world. Held in a 9,200sq.m area of exhibition space, AMHCMC will showcase the latest trends and industry developments, as well as an unmissable fringe programme. Reflecting its vital role in empowering local industry players to upgrade and overcome their challenges, the programme’s Automechanika Academy, Repair and Maintenance Workshop and Product Presentation will be held concurrently with the show. This year’s Automechanika Academy will provide a range of opportunities for its participants to share, network and adopt the latest industry trends, as well as with extended opportunities through a comprehensive agenda. Led by experts from major organisations and institutions, consultants and leading market players, six free seminars will be held on 25th April. Topics will range from the latest policies, auto industry developments, material innovation and technological advancements. Potential highlights of the exhibition’s 2018 edition include Viet Nam’s auto industry related policies, the latest trends and insights, the country’s first locally-branded cars and a new generation of lubricant technologies. The Repair and Maintenance Workshop, which will be held on the second day of the exhibition on 26th April, with provide its attendees the opportunity to acquire advanced knowledge on collision repair and an understanding of international standards. AMHCMC is one of 17 Automechanika fairs that are held in Africa, Asia, Europe and North, Central and South America.  VNN