BUSINESS IN BRIEF 6/4 Q1 2018: Export of key farm produce surges   The first three months of 2018 saw strong rises in export volume and value of key farm produce such as rice, tea, cashew nuts, vegetables and cassava products, bringing the total export earnings of farm produce to US$4.6 billion, up 9% annually. Coffee export volumes jump, value falls in Q1         Viet Nam exported 520,000 tonnes of coffee worth US$1 billion in the first quarter of the year, an increase of 15.1 per cent in volume but a decrease of 1.7 per cent in value compared to the same period last year, according to the Ministry of Agriculture and Rural Development. Germany, the US, Indonesia, Italy and Japan were among the country’s key export markets. Germany accounted for more than 14 per cent of exports though its purchases fell by 18 per cent year-on-year. Reviewing the exports, Do Ha Nam, deputy chairman of the Viet Nam Coffee and Cocoa Association, described the situation as “good.” The sector’s export target for the 2017-18 crop is 1.5 million tonnes. In the last quarter of last year 400,000 tonnes had been exported, meaning only another 600,000 tonnes have to be exported to meet the target. Nam told Viet Nam Economic Times it is not a big number with five months still to go for the end of the coffee season, and the target would surely be achieved. Talking about prices in the domestic market, he said they are down slightly since the market is now mainly affected by movements in the forward market. “The market is currently quiet. There is no buyer or seller. In the short term coffee prices will not increase because there are is no driving factor. But starting in July, when the status of the coffee crop in Brazil, the world’s largest coffee producer, is clear, the market may fluctuate.” But many experts agree there is no big threat this year since supply and demand are fairly closely matched, he said. The association said Viet Nam’s coffee output is expected to increase by 15 per cent this year, but would not create pressure because the increase would be much lower than in most years. Viet Nam exported 1.4 million tonnes last year for $3.2 billion. The country’s exports were down sharply last year due to a fall in output because of the impact of climate change, but thanks to high prices, the export value was down by only 2.7 per cent over 2016, the association said. Viet Nam is the second largest exporter behind Brazil. The coffee industry has carried out a restructure programme to improve its competitiveness by improving productivity, quality and value. Under the programme, the country plans to keep the area under coffee at 600,000ha and focus on planting new trees with higher productivity and quality, it said.  Funding boost to help SMEs in Tra Vinh Province      The People’s Committee of the southern Province of Tra Vinh has allocated more than VND2.66 trillion (US$117.7 million) to support small and medium sized enterprises (SMEs). Priority will be given to supporting SMEs where production is based on enhancing local advantages such as coconut farming, tourism, aquaculture, vegetables, handicrafts and fruit. The province plans to use the funds to implement supportive solutions, including the creation of favourable policies and simplification of administrative procedures. The funds will also be used to provide financial and credit support and to improve infrastructure such as facilities, workshop, transportation, electricity and water supply, along with waste treatment to protect the environment. The province also provides technical support such as providing useful information and databases; connecting supply and demand; providing advisory services for SMEs on business establishment, development, and management; and organising dialogues with authorities at all levels. By 2020, the province will strive to have some 4,000 SMEs, of which seven per cent are medium sized, at least 30 per cent are female-owned and 15 per cent are owned by ethnic minorities. Each year, enterprises create 22,000-25,000 new jobs. Chairman of People’s Committee Dong Van Lam said currently more than 2,000 enterprises are operating in the province with total registered capital of VND25.290 trillion, creating jobs for more than 86,000 workers in and around the province. However, of this total, small and micro enterprises account for more than 90 per cent. Therefore, most of the enterprises in the province encountered difficulties in accessing support policies, preferential loans, science and technology, and consumption markets.  Banks prohibited from disbursing loans in cash      The State Bank of Viet Nam has tightened lending regulations, prohibiting credit institutions and foreign bank branches from disbursing loans in cash, effective from April 2, according to a new circular. Under Circular No. 21/2017/TT-NHNN, which stipulates the mode of disbursement of loans by credit institutions and foreign bank branches to customers, lenders will have to provide loans to bank accounts of beneficiaries via non-cash payment instruments. According to the central bank, the new circular is aimed to better supervise loans, seeking to have them comply with the stated purposes for requested loans. The disbursement of loans through bank accounts will help commercial banks supervise the use of borrowers’ loans from the beginning to avoid funds being used for incorrect purposes, such as rollovers, resulting in an increase of non-performing loans. Under the new circular, lenders must disburse loans to a borrower’s bank account if it is required by law that money is to be transferred from the borrower’s bank account, and only in compliance with the purpose of the loans. The disbursement through bank accounts is also required if the borrower has made payments in connection with business plans approved by the lenders; or the borrower directly pays individuals or households for agricultural products, in compliance with the purpose of a loan. However, lenders may consider disbursing loans to the borrower in cash if the beneficiary does not have a bank account at any bank; or the borrower does not have a bank account at any bank and has made payments in connection with business plans approved by lenders. The new circular also regulates that the lenders may consider disbursing loans, either in cash or via non-cash instruments, if the amount to be paid to the beneficiary, who has a bank account, does not exceed VND100 million (US$4,400); or the borrower will make payments to the beneficiary, who is a State-owned organisation and allowed to use cash in payments.  Hoai Duc expects real estate boom With the city of Hanoi planning to increase its volume of urban districts, Hoai Duc to the west of the capital is set to receive more attention from investors, thanks to its favourable transportation connections and comparatively affordable land prices. Paying over VND1 billion ($45,454) for an apartment in Duc Thuong in Hoai Duc district to the west of Hanoi five years ago, Nguyen Thi Ly used to scold herself for her poor decision, having chosen a place 20 kilometres from the inner city. However, Ly, a nurse at the Transport Hospital in Cau Giay district, now feels no regrets for her choice as the rural area is expected to become an exciting urban district over the next two years. Bringing an end to hearsay and guesswork, Chairman of the Hanoi People’s Committee Nguyen Duc Chung affirmed the city’s plan to turn the rural district of Hoai Duc into an urban district by 2020, in the committee’s March meeting. Chung requested that his subordinates outline the project’s details with a reasonable schedule to realise the plan. He told local media that there was no doubt about an upgrade of the district. “The city can make the investment of hiring a foreign consultant for the plan,” he said. With the merger between the city of Hanoi and the former province of Ha Tay in 2008, the 82.67-square kiliometre district of Hoai Duc, one of Ha Tay’s most culturally rich centres, became a rural district of the capital city. According to the Vietnam National Real Estate Association, the district holds great potential for the realty market. In addition to its traffic connections of Beltway 3.5 and Beltway 4 currently under construction, as well as the main axes of To Huu, Thang Long, and National Highway 32, there are also plans in the near future to build Hanoi’s first ever skytrain. Ly is excited, even though the first phase of the 12km skytrain, connecting the nearby Nhon area with the inner city, will not be finished until 2021. “Although the skytrain has been delayed several times, I believe that it will soon be done,” she said. Currently, it often takes Ly 30-45 minutes to get to work. With the new sky train, which will connect Hoang Mai district with Hoai Duc district’s Tram Troi town at its full length, it would be 20 minutes at most. Aside from the advantages the train will bring, the whole infrastructure system in the district is changing rapidly. National Highway 32 has been expanded to four lanes, while Beltway 3.5 – to be finished in October – has a special section (5.6km long, 60m wide, and with a speed limit of 80km/h) that will connect it to Thang Long Boulevard. Nguyen Thi Thu Hang, deputy director of Savills Vietnam, told VIR that since most of the land in the inner city is already occupied, the west of Hanoi is becoming more attractive with its improved transport situation. Hang said that a complete transport system would also boost the retail and entertainment services in Hoai Duc and its neighbouring districts. Located next to the districts of South Tu Liem, North Tu Liem, and Cau Giay, where education, health, entertainment, and retail are experiencing rapid growth, Hoai Duc earns its place as a more reasonably-priced home for people working and studying in those areas. In addition, located close to Hoa Lac Hi-Tech Park, which accommodates 81 projects with VND66.2 trillion ($3 billion) in investment capital, the growing urban projects and condominiums in Hoai Duc can provide better realty services to the park’s highly paid employees, as the park’s home district of Thach That offers few facilities. Current major investors in the district are Lung Lo 5 (with its Westpoint project covering 32 hectares), Lilama Investment, Construction and Urban Development JSC (with its Son Dong Sunshine City), and Hai Phat Land. Last June, the joint venture of Vinaconex and Phu Long Real Estate JSC of billionaire Nguyen Thi Phuong Thao, which bought a 50 per cent stake of South Korea’s Posco E&C in the joint venture, resumed its $2.5 billion Splendora project in An Khanh after an 11 year delay, while realty developer Vingroup began the construction work on Vinhomes Thang Long in 2016. Tran Huu Thang from Hai Phat Land told VIR that more and more customers are showing interest in its project in the district. Last year, Hai Phat Land opened a branch there to serve the increasing demand. Thang said a land plot of 70-80 square metres now costs VND 22-25 million ($1,000-1140) per sq.m, an increase of 20 per cent over the last two years. Nguyen Long from Hoai Duc Realty Office said land prices in some areas have risen between 20 and 25 per cent since the beginning of the year alone, due to increasing land transactions. The price of residential land in the areas of Van Canh, Kim Chung, Di Trach, Duc Giang, and Tram Troi is now much higher than it was in the past. Land in a prime location can cost VND20-50 million ($910-2,280) per sq.m, while land prices by National Highway 32 can reach more than VND150 million ($6,850) per sq.m. Currently, Hanoi has 12 urban districts, 17 rural districts, and one town within its city limits. In addition to Hoai Duc to the west, the suburban districts of Gia Lam to the east and Thanh Tri to the south of the city also hope to be declared urban districts. TTC Land jumps into industrial zone segment Saigon Thuong Tin Real Estate JSC (Sacomreal) decided to set foot in industrial zone and resort development, as well as the commercial-rental segment after changing its name to TTC Land.  Accordingly, along with the housing segment, TTC Land will expand its operations into resort, commercial-rental, and industrial zone (IZ) real estate. Notably, TTC Land will accelerate the construction of two commercial-rental real estate projects, namely TTC Plaza Binh Thanh in Ho Chi Minh City and TTC Plaza Duc Trong in Lam Dong province, in order to take them into operation soon. Besides, this year, the company will develop two more projects, namely TTC Plaza Danang and TTC Plaza Haiphong. Besides, it will implement the construction of a 305-hectare resort complex in Phu Quoc. Additionally, TTC Land will develop other IZ projects after the acquisition of the 1,002-hectare Thanh Thanh Cong IZ in Tay Ninh province and the 53-hectare Tan Kim IZ in 2017. Both of these IZ are located in the southern key economic zone and have an occupancy rate of 60 per cent. Furthermore, TTC Land plans to develop projects across the country, instead of focusing on the south. Once the restructuring ends, TTC Land will have total assets of VND17 trillion ($745.86 million) and own 2,000 hectares of land to develop real estate projects within the next ten years. In 2010, the firm listed its shares on the Hanoi Stock Exchange. At the time, its charter capital reached VND1 trillion ($43.87 million). Thus, after more than eight years of operation, its charter capital increased to more than 90 per cent. Eximbank: Back to the fingerprint business Eximbank has returned to the basics by applying a fingerprint check, along with other safety measures, for savings and withdrawals, following the scandal of disappearing savings. Notably, the Ho Chi Minh City-based lender also requires all authorisation letters and related documents to be scanned and stored on its core banking system. As part of an attempt to minimise the risk of fraud and enhance security, Eximbank said that it will apply a raft of measures including the rotation of staff and strengthening internal controls. In particular, the bank will rotate its clerks and supervisors within the branch and transaction office. To a larger extent, Eximbank looks to rotate supervisors between branches and transactions offices in the same area and leaders or managers between units and departments. What is more, the bank will set up a ‘mobile’ director mechanism to temporarily replace branch directors for a certain period in a bid to identify and rectify any errors made by the branch. While Eximbank might be the first among the local bank community to impose measures to enhance its operations and regain the trust of its clients, foreign banks have been using advanced technology for a few years now to improve their customer experience. For instance, back in 2016 Citi introduced its Touch ID, a technology that uses customers’ fingerprint for verification when conducting business on their smartphones. According to Citi, its customers no longer need to memorise their username and password—they simply use their fingerprint to reduce fraud and enhance usability. F88 launches online property valuation service Understanding that the need for asset valuations will become increasingly common, F88 has launched a free online property valuation service at www.dinhgianhanh.com. The service was created from an initiative to harness the power of a massive asset verification database of more than 10,000 property codes and a team of wealth appraisers. Mr. Phung Anh Tuan, CEO of F88, believes that the opening of the valuation system will benefit the general public based on contributions and use by the community. After a trial run from the end of December, the site received a lot of positive feedback from consumers because of its user-friendly, easy-to-use features. One user, Ms. Nguyen Thuy Duong, said she trades in property and evaluations can be difficult, but is now much simpler with dinhgianhanh.com. Other comments were used to improve the service. Depending on the needs of users, dinhgianhanh.com can automatically add new properties, allowing customers to track the ups and downs and price fluctuations in the market, for use as reference when making purchasing decisions or using housing as collateral. Four months on, the website has had nearly 15,000 visits from people valuing assets of all kinds, including watches, phones, laptops, tablets, motor cars, motorcycles, valuable SIM card numbers, and others. The most common valuations are for mobile phones (22 per cent), motorbikes (18 per cent), and SIM card numbers (15 per cent). Valuation results on the website are solely based on information the customer declares and F88 needs help from others so it can better serve users. Anyone seeking an accurate valuation of their property can obtain one for free at F88 outlets. EuroCham Executive Committee 2018 elected The European Chamber of Commerce in Vietnam (EuroCham) has announced that its Executive Committee has elected two Co-Chairs: Mr. Denis Brunetti, President of Ericsson Vietnam, Myanmar, Cambodia & Laos, and Mr. Nicolas Audier, Managing Partner of Audier & Partners. They succeed Mr. Jens Ruebbert, former Chief Country Officer of Deutsche Bank AG Vietnam (who led the Chamber between March and October 2017) and the two Co-Chairs that served his remaining term until March (Mr. Audier and Mr. Gellert Horvath, an individual member). “The output EuroCham showed last year in terms of events, activities, publications, and government meetings really illustrates how strong our organization is,” said Mr. Brunetti. “I am particularly happy to have earned the trust of the European business community to lead the Chamber moving forward, and that will be done by building strategically on what we have achieved so far. I am fortunate to share this chairmanship with Nicolas Audier and I am certain that together we will be successful in intensifying EuroCham’s engagement with the Vietnamese Government, EU institutions, the local business community, and our own members.” “This is the year of the EU-Vietnam Free Trade Agreement (EVFTA) and EuroCham will remain highly dedicated to its promotion and discussion,” said Mr. Audier. “I am honored that the EuroCham Executive Committee has once more entrusted me with co-leading the Chamber, after a very fruitful exercise last year with Gellert Horvath. This year I have the privilege of serving alongside Denis Brunetti and I am sure we will both employ our best efforts to ensure that our members and sector committees continue to have a voice in the EVFTA process in Vietnam and in Europe. Much like the previous Executive Committee, we will make sure that all EuroCham members are taken into consideration and continue to deliver value to all those who are part of our community and to our partners.” The Executive Committee also appointed Mr. Jean-Jacques Bouflet (an individual member), Mr. Guy Balza (Managing Director, OMG), Mr. Roman Kuebler (Managing Director, B. Braun), and Mr. Tomaso Andreatta (Chief Representative Indochina, IntesaSanpaolo) as Vice-Chairmen. The latter will also serve as Chair of the Vietnam Business Forum (VBF) during EuroCham’s presidency of the platform in 2018. The Treasurer position once more went to Mr. Aymar de Liedekerke Beaufort (Head of Country, Vietnam and CEO, BNP Paribas), who has been serving in the Executive Committee since 2015. The Committee also appointed Dr. Stefano Pellegrino (Associate, Frasers Law) as General Secretary. An internal meeting to take place soon will be dedicated to assigning specific work portfolios to the remaining Executive Committee members. Since its establishment with just 60 members in 1998, EuroCham has grown to represent over 950 European businesses, counting among its supporters many of the world’s leading enterprises. With offices in both Hanoi and Ho Chi Minh City and with regional Chapters in central Vietnam and northeastern Vietnam, EuroCham’s mission is to represent the business interests of its members in Vietnam and improve the country’s business environment for the benefit of all players. App makes medical care simpler Thirty-eight-year-old Ms. Nguyen Mai Thy was very happy after finding a single app, Jio Health, that takes care of all her family’s healthcare needs. “The service is very convenient, as a doctor comes to our home at a reasonable price instead of us having to line up with hundreds of others at a hospital,” Ms. Thy said. “I can also chat with a doctor anytime, arrange an appointment with just a tap on my phone, and more importantly have peace of mind that my parents and kids are being taken care of.” Introduced last June, Jio Health now has over 40,000 registered users and the number continues to climb. It also provides on-site annual health check-ups and consultations for companies, handling over 16,000 patients in the last six months. Jio Health offers 24/7 free healthcare advice and information anywhere in the world from web-enabled phones or tablets. Mr. Nguyen Hoai Nam, Founder and CEO, told VET that preparations took almost five years.  “The idea began with Rai & Rohl Technologies Inc. in Irvine, California, about eight years ago, after it carefully studied the healthcare system and healthcare consumerism in the US and other countries, especially those in Asia,” he said. “In Asia we found that consumers were still mostly paying out of their pocket for healthcare.” Jio Health helps users arrange a consultation with a qualified doctor. Instead of having to get themselves to a clinic or hospital, they need only open the Jio Health app, select an available doctor, and choose a suitable time and location.  “We are neither an app company nor a booking agent,” Mr. Nam explained. “We are a fully licensed medical service provider and constantly develop technology that helps us improve the care experience, empower doctors to deliver better care, and proactively anticipate and address potential health issues before they become intractable problems.”  Another great feature is that users can manage their family’s health via a smartphone. The app allows users to make doctor appointments for dependents or immediate family members, and when patients in Ho Chi Minh City need to visit a clinic for tests or additional consultation they can head to the Jio Health Polyclinic in Binh Thanh district. Formerly the Deputy General Director of Viet Capital Bank for ten years, Mr. Nam said that leaving the financial industry for his healthcare startup was a risky decision and probably the greatest challenge he has ever encountered. “In my previous position, I was led by talented executives and experienced leaders and supported by financially-capable shareholders,” he said. “Now, I am the leader of a startup in a new field of business with limited human and capital resources.” Like many startups, especially those related to technology, Jio Health has faced a host of problems in markets, its business model and financial management, talent acquisition, and products and services. Securing customers’ trust has been a key challenge, as has recruiting good doctors. He has faith that the model is scalable and that consumers are ready to use its services. Technology has dramatically transformed massive number of industries, such as Uber, Airbnb, and Amazon, and healthcare is the next and arguably the biggest frontier for technology-driven evolution. According to Jio Health research, Vietnam’s annual out-of-pocket healthcare expenditure is about $5 billion annually and accounts for nearly 40 per cent of the total. It also has a very high rate of smartphone use, at over 50 per cent, an overcrowded and unreliable healthcare system, and the fastest-growing middle class in Southeast Asia, all of which are in the company’s favor. “This year we will continue to focus on fully serving Ho Chi Minh City and expanding to other cities in Vietnam,” Mr. Nam said. “At the same time, we are also focused on expanding our clinical service offerings.” App founders stay the course After returning home from a hard day at the office recently, 35-year-old Ms. Nguyen Hoai An in Hanoi’s Cau Giay district was in a rush to cook dinner and bathe her young son. The water heater, however, was playing up. As her husband was on a business trip, she decided to Google some help.  After just a few minutes she chose a water heater repair company from a long list and felt reassured when they said they would send someone over soon. “He arrived on time, which was good,” she said. “But he charged VND900,000 ($40) for repairs that took about ten minutes.” Though happy to have hot water, she found the price a little unreasonable. Ms. An is one of numerous people feeling dissatisfied with the home appliance repair services offered by online providers. High costs have, sadly, long been common among such providers in Vietnam. Many users have complained in online forums about paying two or three times more than the actual cost to have home appliances repaired. Only a few were successful in getting some money back while most simply decided to never use that provider again.  To put an end to this overcharging, a group of software developers in Hanoi decided to build Rada, an app that helps people connect with trusted local service providers via an Online to Offline (O2O) platform based on mobile, artificial intelligence (AI), and Geographic Information System (GIS) technology. It maintains a network that facilitates and revolutionizes the way service bookings and communications between users and suppliers take place. The app helps users instantly connect with local professional service providers without fear of being cheated and they can still interact with them after the service is completed. Rada also helps providers find work close by from jobs acquired minus the cost of online advertising and enables them to standardize their services with state-of-the-art technology. Mr. Ta Quang Thai, Co-founder and Marketing Manager at Rada, said that many high-quality service providers face fierce competition from low-quality providers in reaching users. Advertising costs can add up very quickly and are often passed on to customers. With the Rada app, he explained, service providers can conduct promotional campaigns and take better care of their customers. As all processes in Rada are transparent, users can follow up with providers if service quality is found lacking, which contributes to changing the behavior and attitude of providers. Those that wish to join the Rada network must commit to providing quality services and will face fines or expulsion from the system if commitments are not fulfilled.  Rada was established in early 2016 by a group of founders with an ambition of building an app to connect service providers to users via a system similar to Uber and Grab’s platforms. Their ambition, however, seemed unrealistic early on, as many of its target providers were plumbers and electricians who rarely used smartphones let alone apps.  But according to Mr. Ma Hoang Hai, Co-founder and CEO of Rada, ideas like Uber and Grab seemed unrealistic just five or six years ago. “This is the eternal challenge faced by any new app or idea when coming to life,” he said. New ideas and apps always face the same question: will the market accept them or not. “When the market accepts them, successful models like Uber and Grab appear. If the market doesn’t accept them, their founders must recognize their idea is unsuitable.” He believes there will be a wave of apps based on Uber and Grab appearing in other sectors as Vietnam continues to develop its IT infrastructure and as more of the population uses a smartphone.  Staying faithful to the app’s potential despite the initial disappointments, Mr. Hai and Mr. Thai began to promote it via any means possible. The 40-year-olds wandered down small laneways in Hanoi posting leaflets on walls offering to install the app for plumbers and electricians. “We did this night after night, almost furtively advertising the app,” Mr. Thai recalled. “And we must still do it if we wish to see results.” Their faith seems to have paid off. The Rada team received good news at the end of 2016, when Facebook’s FbStart granted their startup $40,000 to expand the business and its network. It has now had more than 200,000 downloads, with about 1,000 corporate service providers, 3,500 individual providers, and 56,000 users coming on board nationwide. The app also sends 2,500-3,000 orders from users to service providers each month in Hanoi, Ho Chi Minh City, Hue, and Da Nang. It also received the top prize for a startup at the recent Vietnam IT Talent 2017 contest.  Rada expects to expand to ten or more cities and provinces around the country this year, including Nghe An, Can Tho, and Thanh Hoa. The startup has also been negotiating with a number of successful businesses, including Austdoor, Viettel Post, and AAL Express, etc., to work together and expand its service categories. FDI inflow into Hai Phong increases threefold in Q1 2018 The northern port city of Hai Phong attracted more than US$916 million in newly registered (15 projects) and additional (12 projects) foreign direct investment (FDI) capital in the first three months of 2018, representing an annual increase of 332.34%. There are currently 532 valid projects being deployed across the city, with a total registered capital of US15.44 billion. Chairman of Hai Phong People’s Committee, Nguyen Van Tung, has attributed these positive results to the city’s efforts to reform its administrative procedures, improve the investment environment, as well as focusing on removing difficulties for enterprises, boosting trade, and attracting investment. Hai Phong has successfully organised many events, such as an investment promotion seminar for Japanese firms; a meeting between the municipal authorities and enterprises in 2018, which saw the participation of 400 domestic and foreign companies; and two business dialogues with a total of 22 practical recommendations. The city has also implemented a capacity building programme for the local supporting industries with the support of senior volunteers from the Japan International Cooperation Agency (JICA). Accordingly, direct support has been provided at four enterprises, while three other companies are being surveyed in preparation for the second phase of the project. In the future, the city will continue to accelerate the progress of key projects, including the Hai Phong international gateway port and the construction of technical infrastructure for the Bac Song Cam new urban area, as well as implementing the building of the second passenger terminal at the Cat Bi International Airport and Tan Vu-Lach Huyen Bridge No. 2. Domestic firms advised to satisfy food safety requirements   Herb Cochran, senior director of Trade Facilitation and Special Projects of AmCham Vietnam in HCM City, speaks with media on the sidelines of a seminar on food safety regulations  Vietnamese enterprises should strive to meet strict food safety requirements from importing countries, especially choosy markets like the US, Japan, the Republic of Korea, and the European Union (EU), participants said at an international seminar held  in Ho Chi Minh City on April 3. It is now time to comply with new regulations as food-safety regulation non-compliance is the largest barrier to entry for Vietnamese firms, said Herb Cochran, senior director of Trade Facilitation and Special Projects at AmCham Vietnam in HCM City. To integrate into the global market, Vietnamese businesses must learn more about regulations and improve quality to meet these new standards, he said.   Vu Kim Hanh, Chairwoman of the High Quality Vietnamese Goods Business Association, said that even though Vietnam had integrated deeply into the global economy, local enterprises still lacked knowledge about the US’s Food Safety Modernization Act (FMSA) and European Food Safety Authority regulations. Ensuring food safety and hygiene will open up many opportunities for businesses at home as well as strict markets like the US, the EU, and Japan, she said. Given that most countries are strengthening protection barriers, Vietnamese products will have access to huge markets if they meet international standards and regulations, Hanh added. Vietnamese Minister of Science and Technology Chu Ngọc Anh  said that Vietnamese High-Quality Good International Standards for the food industry had been issued by the High Quality Vietnamese Goods Business Association. It’s necessary to promulgate this set of standards as it provides food companies with a clear direction in developing their products and gives consumers a guide to identify trusted and quality food products, he said. Other experts at the seminar spoke about the FSMA, geographical indication  certificates, and the use of high technology for food safety. Food safety regulations under FSMA have become stricter, with more inspections and higher standards, causing difficulties for Vietnamese exports, especially since June 2016 when the law took effect, experts warned. Other countries to which Vietnam exports, including Canada, the EU and Australia, are expected to have a similar law. According to Dr. Delphine Marie Vivien, of the Innovation Research Unit and Malica Research Consortium, consumers were increasingly concerned about how their food was produced. The origin of food is very important for consumers who value tradition and cultural identity, and who are sensitive to specific sensorial characteristics of the products. Some consumers are willing to pay more to find such characteristics in the product. Geographical indication (GI), for example, is used on products that have a specific geographical origin, for example, town, region or country, and possess qualities or a reputation that are attributable to that origin, she said. Participants at the meeting also called on local companies to increase the use of organic farming practices in agricultural production, animal breeding and aquaculture. Organic certification would open the door for Vietnamese goods to export to choosy markets like the US, Japan and the EU, according to Hanh of the High Quality Vietnamese Goods Business Association. The seminar was organised by the Vietnamese High Quality Product Business Association in collaboration of the Food Safety Management Board of HCM City, on the sidelines of the Vietnamese High-Quality Products Fair, which opened at Phu Tho Stadium in HCM City’s District 11 on the same day. Vietnam’s GDP expands 7.38 percent in Q1, the highest in a decade    National retail sales surge 8.6 percent in first quarter Vietnam’s total revenue from retail trade and services rose 10 percent year-on-year to exceed 1 quadrillion VND (44.05 billion USD) in the first quarter of 2018, reported the General Statistics Office (GSO). If inflation were excluded, the increase would be 8.6 percent, much higher than 6.4 percent growth recorded in the same period last year, GSO said. The growth also reflected high purchasing power, which contributed significantly to gross domestic product (GDP) growth of 7.38 percent – a record in the first quarter in the past 10 years, GSO said. GSO General Director Nguyen Bich Lam said the strong consumption also signaled that the economy is on track for stable development. In the first three months, retail sales of goods, which accounted for more than 75 percent of total retail trade and services revenue, topped 35.22 billion USD, up 10.5 percent year-on-year.   Sectors posting a positive revenue increase included food and foodstuff (up 12 percent), textiles and garments (13 percent), home appliances (up 11 percent) and transport services (up 8.4 percent). Meanwhile, retail sales in accommodation, restaurant and catering services surged by 9 percent year-on-year to 128.9 trillion VND (5.72 billion USD). Some localities that posted positive accommodation, restaurant and catering sales in the period were the three central provinces of Khanh Hoa, Binh Thuan and Thanh Hoa with respective rises of 14 percent, 13 percent and 11 percent, the capital city (10 percent) and HCM City (9.5 percent). From January to March, revenue from tourism services saw significant yearly growth of 30 percent to 10.2 trillion VND (454 million USD), with some provinces and cities recording strong growth, such as HCM City (32 percent), Binh Dinh (29 percent), Kien Giang (28 percent), Hai Phong (23 percent) beside to Hanoi (15 percent), Thanh Hoa (9 percent) and Khanh Hoa (6 percent). The sales of other services in the first quarter exceeded 116.3 trillion VND (5.16 billion USD), up 5 percent compared to a year ago with modest increases from 1 percent to 5 percent recorded in several localities including Nghe An, Can Tho, Hai Duong, HCM City and Hanoi. Bulgaria backs early signing of EU-Vietnam FTA As holding the presidency of the Council of the European Union (EU), Bulgaria advocates the early signing and approval of the EU – Vietnam Free Trade Agreement (EVFTA), a Bulgarian official has said.  Bulgarian Deputy Minister of Economy Lachezar Borisov made the affirmation at a recent seminar in Bulgaria, which held by the Embassy of Vietnam in the country and the University of National and World Economy (UNWE).  He highlighted the traditional relationship between Vietnam and Bulgaria, expressing his belief that the new economic cooperation model will practically contribute to promoting the bilateral relations.  Borisov also applauded Vietnam for signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).  At the seminar, dozens of speeches were delivered by representatives from the Vietnamese Embassy, Bulgaria’s ministries of economy, foreign affairs and tourism, providing participants with information and contents related to the EVFTA, and analyses of opportunities and benefits brought by the trade pact.  Participants also focused their discussion on how to boost economic and trade links between Vietnam with the EU in general, and with Bulgaria in particular.  In the framework of the event, a photo and material exhibition was arranged, aiming to promote Vietnam’s land, people and development achievements.  In the context that Bulgaria is the presidency of the Council of the EU, the event was hoped to contribute to accelerating the signing of EVFTA, and fostering the traditional relationship between Vietnam and Bulgaria as well. Aquatic catch, aquaculture output enjoy growth in first quarter Vietnam posted growth in both aquatic catch and aquaculture output in the first quarter of 2018, partly thanks to good weather, according to the Ministry of Agriculture and Rural Development (MARD). In the first three months, aquatic catch was estimated at about 775,800 tonnes, up 4 percent year on year. The volume includes 740,800 tonnes of seafood and 35,000 tonnes fished in freshwater, respectively rises of 4 percent and 2.9 percent. Notably, more than 6,400 tonnes of oceanic tuna, a major foreign currency earner, were caught by Khanh Hoa, Binh Dinh and Phu Yen – the three key provinces in tuna fishing. Meanwhile, aquaculture output was about 611,000 tonnes, up 6 percent from a year earlier, said the MARD. About 230,200 tonnes of tra fish, a key aquaculture product, was produced in the Mekong Delta from January to March, up 5.1 percent year on year.  Brackish water shrimp farming enjoyed more favourable weather conditions than the same period last year, resulting in high production. Output nationwide was about 82,500 tonnes, increasing by 7.6 percent. The MARD also said through March, aquatic exports reached 1.7 billion USD, up 11.5 percent annually.  Imports of aquatic products hit 423 million USD in the three months, a 32.4 percent year-on-year increase. Q1 2018: Export of key farm produce surges    FDI capital hits 5.8 billion USD in Q1   Vietnamese firms join Malaysia Int’l Halal Showcase Four Vietnamese firms are attending the 15th Malaysia International Halal Showcase 2018 underway in Kuala Lumpur from April 4-7.  They include Hanoi Trade Corporation (Hapro), Trung Nguyen Coffee, Loc Troi Group and Asia Fish Oil – an affiliate of Sao Mai Group.  According to the organising board, nearly 800 companies from 41 countries and territories are running 1,200 booths at the event, more than half of which are from Malaysia, followed by India, Thailand, Indonesia, Iran and China.  On display are food and beverages, pharmaceuticals, cosmetics, financial and tourism products, e-commerce and logistics services.  Nguyen Tien Dung, Deputy Director of Loc Troi Group’s Food Trade Department, said it is the first time the company has joined the event to market products and seek potential partners.  He said when Malaysia loosens import regulations, Loc Troi will offer more quality Halal rice with competitive prices to the market.  Hapro Deputy Executive Director Nguyen Thu Huong said it is the second time Hapro has joined the event, adding that Halal products account for 20 percent of its exports and the figure will increase soon. Consumers from ASEAN and the Middle East visited and learned about Loc Troi’s products, especially japonica and jasmine rice, Trung Nguyen coffee, cashew nuts, pepper, beans, cinnamon and anise.- Hanoi exhibition showcases latest broadcasting technology An exhibition displaying the latest broadcasting equipment and technology is being held in Hanoi on April 5-7. The Vietnam International Broadcast & AV (VIBA) Show allows visitors to watch films screened with modern technology, attend photo shows and sound performances and play games with virtual reality (VR) glasses. Visitors will also experience modern equipment and technology such as Digital Video Broadcasting – Terrestrial, drones, virtual reality (VR), 4K TV, ultra-high definition television and broadcast services from Vietnam and overseas companies. “This year, we want to emphasise how contents can be useful to normal life with VietCON (Vietnam Content Showcase),” said Kim Jeong-hun, General Director of Exporum Inc, organiser of the event. “Our main exhibitors are TV stations, game companies, VR/AR Society, companies and TV programme producers. With the new features, VietCON will support the VIBA Show with content and create a new category of exhibits for visitors.” TV stations will show new and attractive content which are now on top of the news. “And with LG, one of the main exhibitors of VIBA Show 2018, we will hold a gallery made of digital signage with spectacular products.  Visitors can see how effective the digital signage can be used in families, public places and restaurants as well.” The Broadcast Department under the Ministry of Information and Communication will bring a total of 200 exhibitors from 11 countries and territories together to the event. The event is held at the Hanoi International Exhibition Centre, 91 Tran Hung Dao street, with more than 20,000 visitors expected. VNN