BUSINESS IN BRIEF 8/6 Vietnam AutoExpo 2018 opens in Hà Nội      The Vietnamese economy is witnessing a good growth momentum, marking a positive signal for the development of the automobile market, said deputy minister of Industry and Trade Do Thang Hai. Speaking at the opening ceremony of the 15th International Exhibition on Automobile, Transportation and Supporting Industries (Vietnam AutoExpo 2018) at the National Convention Centre in Ha Noi’s Nam Tu Liem District on Wednesday, Hai said the Government would build the automobile industry into an important industry to meet the domestic market demand for trucks, passenger cars and special-purpose vehicles. The Government is also striving to provide a market supplying auto components, parts and some high-value component sets for the global automotive industry, he added. It is predicted that by 2030, Viet Nam will have between 466,000 and 863,000 new cars entering the automobile market. By 2020, the number of motorbikes is expected to reach 36 million units. Hai said the Government has paid attention to the development of the supporting industry and issued many supportive and preferential policies to promote the industry. In addition to this, the improved infrastructure is also a favourable factor helping automobile and motorbike manufacturers and supporting suppliers to develop production and business. With the above predictions and the Government’s efforts, the automobile industry, the auto and motorbike market and the supporting industry in Viet Nam offer a lot of potential for businesses to invest in this industry. Taking this trend forward, the Vietnam AutoExpo 2018 is seen as a meaningful activity for manufacturing and trading enterprises in the automotive, motorcycle and supporting industries. The exhibition will act as a bridge for domestic and foreign enterprises to meet, exchange and co-operate in business as well as investing in, expanding and developing the market. In doing so, they will contribute to promoting the domestic industry in future. Covering ​​nearly 10,000sq.m with 450 booths, the Vietnam AutoExpo 2018 aims to provide visitors with a complete understanding of the market of automobiles, motorcycles and supporting industries in Viet Nam. In the field of transportation, the Vietnam Engine and Agricultural Machinery Corporation and brands from Russia, South Korea and China are showcasing many new products, including trucks, buses, commercial vehicles and special-purpose vehicles. Also on display at the exhibition are popular motorcycle manufacturers, such as Ducati, Harley Davidson, Triumph, Royal Enfield and Kawasaki, with hundreds of models in high-engine displacement. There are hundreds of exhibits on supporting industries, spare parts and components, maintenance and repair services as well as domestic and foreign car accessories. During the exhibition, there will be a seminar on developing the supporting industry, connecting demand and supply to serve production and assembly of commercial cars and special-purpose vehicles in Viet Nam. The exhibition will conclude on June 9.  Major export earners report steady growth Vietnam’s major export earners still maintained their growth tempo in the first five months of the year, according to Sai Gon Giai Phong newspaper. Particularly, phones-phone parts topped the list with US$19.5 billion (up 19.8%), followed by computers-electronic products-accessories with US$10.9 billion (up 14.2%) and textiles-garments with US$10.7 billion (up 13.3%). In addition, export revenues from machinery-equipment-tools-spare parts reached US$6.4 billion (up 29.7%), footwear US$6.1 billion (up 7.9%), vehicles-components US$3.3 billion (up17.2%) and wood-wooden products US$3.3 billion (up 10%). In January-May, Vietnam shipped abroad US$93.09 billion worth of goods and spent US$89.7 billion on imports, up 15.8% and 8.2% respectively, resulting in a trade surplus of US$3.39 billion. Foreign direct investment (FDI) enterprises contributed US$66.66 to export revenue, growing 15% and accounting for a whopping 71.6% of the country’s total export turnover. Meanwhile, domestic firms posted outbound sales of US$26.43 billion, a year-on-year increase of 17.8%. According to the Ministry of Industry and Trade, as of May, the U.S. remained Vietnam’s largest importer with revenue of US$17.4 billion, rising 9% over the year-ago period, followed by the EU with US$16.9 billion and China with US$13.8 billion, up 13.6% and 30.8% respectively. Especially, phone and phone part shipments to China were up fivefold against the same period last year. Besides, revenues from computer-electronic product-component exports to the northern neighbor surged 32% and vegetables-fruits 16.5%. The ministry has directed trade counselors and relevant agencies to accelerate the removal of unnecessary requirements hindering export activities and promote meetings with foreign commercial agencies to strengthen cooperation with other markets. VIMF 2018 opens in Bac Ninh   The Vietnam Industrial and Manufacturing Fair (VIMF) 2018 opened at the Kinh Bac Cultural Centre in the northern province of Bac Ninh on Wednesday. More than 200 booths are exhibited at the three-day event. Representatives of many countries and territories are in attendance, including Singapore, Japan, South Korea, India, China, Taiwan, Thailand, Malaysia, the US, Indonesia, Germany, Australia and Viet Nam. Products exhibited at the expo include machine tools and metalworking, welding and coating, automotive and contract manufacturing, sheet metalworking, plastic manufacturing, woodworking and cooling systems. VIMF 2018 is an ideal foundation for manufacturers, producers, investors, suppliers and traders in and outside the country to promote new products; meet customers directly; contact agents and distributors; and develop and expand the market. This is also a chance to enhance investment and co-operation, contributing to improving the competitiveness of enterprises and integrating the provincial economy more deeply and effectively into the international economy. Along with event, there are also Industrial Automation Fiesta 2018 and 3D Print Fiesta 2018. Hai Duong to host litchi festival this weekend The first-ever Thanh Ha Litchi Festival will take place on June 10 in Thanh Ha district in the northern province of Hai Duong, some 60 km from Hanoi. The festival aims to introduce the fruit in the country’s “litchi kingdom” of Thanh Ha and promote its potential and investment opportunities. It is also a chance to link farmers with supermarkets and shopping malls as well as enterprises involved in processing, purchasing, and exporting agricultural products. Some 60 booths will offer litchis, with visitors also seeing a 200-year-old litchi tree in Thuy Lam village in Thanh Son commune, which is the oldest of its kind in Vietnam. They can also visit litchi orchards that meet local Vietnamese Good Agricultural Practices (VietGAP) standards for export to the US, Japan, Australia and the EU, and enjoy the sweet taste of the fruit. After the festival, “Thanh Ha Litchi Week” will be held in Hanoi at the Exhibition Fair, Transaction Economic and Commerce Area at 489 Hoang Quoc Viet Street in Cau Giay district from June 12 to 18, aimed at introducing and promoting Thanh Ha litchi among consumers in the capital and neighboring areas. Along with booths offering Thanh Ha litchi, there will be also be presentations of dishes made using the fruit and a workshop identifying Thanh Ha litchi specialties. Hai Duong litchi received geographical indication (GI) from the Ministry of Science and Technology National Office of Intellectual Property in 2007, which is a label used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. The local fruit was in the country’s Top 10 quality products in 2013 and 2014 and received a Gold Brand Prize in 2015. The province has 10,500 ha of litchi, which are expected to yield 50,000 tonnes of fruit each year. The harvest is from mid-May to the end of June. Thanh Ha litchi has been exported to Australia, Canada, Japan, China, France, Malaysia, the Philippines, Singapore, Sweden, Thailand, the United Arab Emirates, and the US. Talenta hosts first blockchain event in Vietnam Talenta, a blockchain consulting firm established in 2017, kicked off the “MaxiBlockVietnam” event in Ho Chi Minh City last weekend, introducing phenomenal blockchain technology and various consensus algorithms used across popular decentralized applications, with a lineup of featured speakers presenting their revolutionary blockchain-based initiatives. “MaxiBlockVietnam” marked Talenta’s first footprint in Vietnam and was a sequel to its successful predecessor, “MaxiBlockGlobal”, which was held at the opulent Shangri-La Singapore earlier this year. Amid a flurry of investigations surrounding a recent $660 million cryptocurrency scam, MaxiBlockVietnam received a pleasantly optimistic reception, paving the way for more blockchain meets in the near future. The most notable speaker was Mr. Edward Du, CEO of MaxiMine, the cornerstone project that hosted MaxiBlockVietnam. Mr. Du has a strong technical background, having been Deputy Director of the Tsinghua German Innovation Center, and also holds an MBA from the prominent INSEAD business school. Opening the evening, he gave a short introduction to the blockchain-based MaxiMine project before moving on to talk about the multitude of solutions it offers as a decentralized cloud mining network and its place as a disruptive technology that can transform life, business, and the global economy. Other blockchain projects featured during the evening included Usechain, the world’s first mirror-identity blockchain, and SAGE, a blockchain-based personal information and behavioral data bank. The evening closed with an address from Ms. Sharon Paul, Managing Director of Cipher Ventures, on the state of digital assets and the rise of Vietnam with its high trading volumes and a growing developer community. Talenta identifies promising blockchain projects in its home country of Singapore as well as initiatives worldwide, offering them an international platform to showcase their ideas to the world. JLL to manage VV Mall in Da Nang JLL has entered into a partnership with VV Mall, a luxurious shopping center set to open in central Da Nang city in the second quarter of next year, becoming the exclusive marketing and leasing agent. “The decision to appoint JLL as the exclusive agent of VV Mall was based not only on its renowned expertise in retail leasing but also the integrated marketing experience provided to create a successful platform,” said Mr. Lisheng Weng, Chairman of VV Mall Shopping Centre. “I am convinced that this partnership will deliver an unforgettable shopping experience in Da Nang in the near future.” “Da Nang has witnessed a significant increase in tourism over the past few years and VV Mall will provide a truly international shopping mall experience that has yet to be seen in the city,” said Mr. Stephen Wyatt, Country Head of JLL Vietnam. Ms. Trang Bui, JLL Vietnam Head of Markets, added that: “We are very excited to work on this project. Given the location and the concept, we believe that the addition of VV Mall will refresh the retail experience in Da Nang.” Located on the highway from Da Nang to Hoi An, with 35,000 sq m of leasable space, VV Mall will offer a wide array of brands to appeal to the retail appetite of local people and tourist alike. This includes renowned fashion brands, an international duty-free store, and restaurants serving various cuisine. VV Mall is also connected to Crowne Plaza Da Nang, providing beachfront access to its customers. Based on a design concept of “Shopping while traveling and traveling while shopping”, VV Mall will become one of the must-visit places in Da Nang for both domestic and international guests upon opening. Led by Ms. Trang Bui, JLL has one of the most active leasing teams in Vietnam, dealing with many Fortune 500 and multinational companies (MNCs). Vietnam’s 50 best-performing listed firms account for 70% of market cap Forbes Vietnam magazine has announced the 50 best-performing companies listed on the Hanoi and Ho Chi Minh Stock Exchanges in 2018. These firms account for more than 70% of Vietnam’s stock market capitalisation and have total profits of nearly VND107 trillion (US$4.7 billion). Among the top 50 listed companies, oil retailer Petrolimex leads the pack in terms of revenue, at VND153.7 trillion (US$6.76 billion), while the most profitable firm is the dairy producer Vinamilk at nearly VND10.3 trillion (US$453.2 million). In terms of the market cap, Vingroup is the largest company at US$15 billion as of May 15. According to experts, Vietnam’s stock market has recorded positive developments overall over the past 12 months, with the VN-Index setting a new record of 1,207 points in April this year. The past year also saw the launch of the derivatives market, better-than-expected capital disinvestment from major companies, such as Vinamilk and Sabeco, and the listing of many large private firms such as Vinhomes, VPBank and Techcombank. By mid-April, Vietnam’s stock market cap reached US$168 billion, equivalent to 80% of GDP. Vietnam AutoExpo 2018 opens in Hà Nội         The AutoExpo 2018 showcases popular motorcycle manufacturers, such as Ducati, Harley Davidson, Triumph, Royal Enfield and Kawasaki, with hundreds of models in high-engine displacement.    The Vietnamese economy is witnessing a good growth momentum, marking a positive signal for the development of the automobile market, said deputy minister of Industry and Trade Do Thang Hai. Speaking at the opening ceremony of the 15th International Exhibition on Automobile, Transportation and Supporting Industries (Vietnam AutoExpo 2018) at the National Convention Centre in Ha Noi’s Nam Tu Liem District on Wednesday, Hai said the Government would build the automobile industry into an important industry to meet the domestic market demand for trucks, passenger cars and special-purpose vehicles. The Government is also striving to provide a market supplying auto components, parts and some high-value component sets for the global automotive industry, he added. It is predicted that by 2030, Viet Nam will have between 466,000 and 863,000 new cars entering the automobile market. By 2020, the number of motorbikes is expected to reach 36 million units. Hai said the Government has paid attention to the development of the supporting industry and issued many supportive and preferential policies to promote the industry. In addition to this, the improved infrastructure is also a favourable factor helping automobile and motorbike manufacturers and supporting suppliers to develop production and business. With the above predictions and the Government’s efforts, the automobile industry, the auto and motorbike market and the supporting industry in Viet Nam offer a lot of potential for businesses to invest in this industry. Taking this trend forward, the Vietnam AutoExpo 2018 is seen as a meaningful activity for manufacturing and trading enterprises in the automotive, motorcycle and supporting industries. The exhibition will act as a bridge for domestic and foreign enterprises to meet, exchange and co-operate in business as well as investing in, expanding and developing the market. In doing so, they will contribute to promoting the domestic industry in future. Covering ​​nearly 10,000sq.m with 450 booths, the Vietnam AutoExpo 2018 aims to provide visitors with a complete understanding of the market of automobiles, motorcycles and supporting industries in Viet Nam. In the field of transportation, the Vietnam Engine and Agricultural Machinery Corporation and brands from Russia, South Korea and China are showcasing many new products, including trucks, buses, commercial vehicles and special-purpose vehicles. Also on display at the exhibition are popular motorcycle manufacturers, such as Ducati, Harley Davidson, Triumph, Royal Enfield and Kawasaki, with hundreds of models in high-engine displacement. There are hundreds of exhibits on supporting industries, spare parts and components, maintenance and repair services as well as domestic and foreign car accessories. During the exhibition, there will be a seminar on developing the supporting industry, connecting demand and supply to serve production and assembly of commercial cars and special-purpose vehicles in Viet Nam. The exhibition will conclude on June 9.  Forum seeks solutions to expand market for Vietnamese farm produce A symposium on agriculture themed 'Solutions to trade development of Vietnamese agricultural products' was held in Hanoi on June 5 in the aim of promoting public-private dialogues on macroeconomic strategies. The event, which is held by the Private Economic Development Research Board (IV Board) under the Government’s Advisory Council for Administrative Procedure Reform, is the opening activity of a series of symposia under the framework of the Vietnam Economic Forum (ViEF). The symposium discussed the main challenges to Vietnamese agricultural products, including the expansion of markets, the application of high-technology to meet market demands, the enhancement of transparency during the production process, and the traceability of agricultural products. Addressing the event, Minister and Chairman of the Government Office, Mai Tien Dung, said that the private sector has made significant contributions to the growth and development of Vietnamese agriculture. Besides its achievements, the Vietnamese agriculture sector has revealed unsolved shortcomings including the lack of linkage with the value chain, and inadequacies in input materials, the quality of agricultural products, the application of science and technology in agriculture, and in brand building, Minister Dung noted. He also asked relevant ministries and sectors to continue to promote administrative reforms related to agriculture and market development to facilitate investors and firms in this area. Solutions proposed at the symposium will be submitted to the Prime Minister at the plenary session of the ViEF 2018 scheduled for December 2018, under which the PM will hold a direct dialogue with the private sector and stakeholders. Township near HCMC to get off ground soon Construction of Waterpoint, a mega urban area spanning 355 hectares in HCMC’s neighboring province of Long An, will start late this month. The first phase, from 2018 to 2023, will be implemented in a 165-hectare area with an investment of some VND6.9 trillion and is expected to generate an estimated VND10.7 trillion in revenue for its developer - Nam Long Investment Corporation (NLG). Waterpoint is the township project that has taken NLG over 14 years preparing land. The planned township has three sides surrounded by the Vam Co Dong River, and the remaining edge stretches along Provincial Road 830 from Duc Hoa town to Saigon-Trung Luong expressway and National Highway 1 in Ben Luc Town. From Waterpoint, it takes only 30-40 minutes to reach Phu My Hung urban area in HCMC’s District 7 or HCMC downtown by taking Nguyen Van Linh Parkway or National Highway 1 and Vo Van Kiet Street. NLG has up to now invested VND1.504 trillion in the Waterpoint project. Chairman of NLG Nguyen Xuan Quang said that the project has been planned and designed in line with international standards with partners from Australia and the Netherlands. Besides, with the foundation being three meters high, the project is not affected by flooding in at least 80 years regardless of any weather conditions. The real estate ecology of Waterpoint comprises low-rise homes with townhouses/villas, high-rise condo buildings, office-shopping-service complex, hospital, preschool and primary school, college and sport facilities. otably, the project features a central park covering 21 hectares with canals across the area. “Waterpoint is intended to be a small city that has all amenities included and close association with the nature. In addition, there is an emphasis on outdoor and sport activities to enhance connections among residents,” Quang shared. HCMC’s real estate market no longer has much land available for new projects, especially large-scale ones. Even in neighboring areas of HCMC it is rare to find a large land site like Waterpoint. Therefore, the project is regarded as a prime land site, which promisingly creates a drive of development for surrounding areas when it is officially implemented.  As Thi truong Dia oc has researched, Long An Province, particularly areas bordering HCMC, is emerging as a hot spot for property developers. Big names in the field like Vingroup, Him Lam, Van Thinh Phat and T&T Group are grabbing land in these areas to develop their projects. In addition, inter-regional connectivity is growing fast in preparation for HCMC’s urban planning. There is still room for growth of Long An’s real estate market. “That NLG is quick in launching such a large-scale project as Waterpoint in the area west of HCMC at this time will bring the investor many competitive advantages in attracting customers. It is because the need for estates in this area is big, but there is no project on the market that is comparable to Phu My Hung in the south of HCMC or Sala in the east,” the director of a real estate trading floor in District 7 said.  Quang said that besides NLD’s own capital, the Waterpoint project is arousing interest of many foreign property investors. “We are currently in talks with real estate firms from Japan and Malaysia. It is expected official information will be released very soon.” According to a recent report, global real estate services firm Cushman & Wakefield valued Waterpoint’s phase one with 165 hectares at roughly US$106.8 million, or some VND2.43 trillion. Meanwhile, the project’s entire 355 hectares was previously estimated by NLG at VND1.504 trillion. The report of Cushman & Wakefield pointed out advantages of Waterpoint, which are the location at the point connecting HCMC and 13 southwestern localities, the site being ready, and land use fee payments done. Another advantage of the project concerns transport connections, including road, water transport and rail transport in the future. Cushman & Wakefield had confidence that townhouses/villas will have the highest value among products of Waterpoint and the selling price may amount to US$371 per square meter of land. Last year NLG offered nearly 3,000 products on the market. Its after-tax profit, after deducting shareholders’ benefits, was VND535 billion, a 55% increase against the previous year. In terms of profitability, the firm recorded a gross margin of 41% and a net margin of 17%. Such results are quite good compared to the previous year and the average figures of real estate firms. In addition to Waterpoint, this year NLG works on many other major projects such as Mizuki Park with 4,676 Flora apartments, 170 Valora townhouses/villas, EhomeS Saigon South with 1,726 apartments and Akari City with around 5,000 Flora apartments. Binh Duong’s exports reach over 9.2 billion USD in five months The southern province of Binh Duong earned over 9.2 billion USD from outbound shipments in the first five months of 2018, up 16.5 percent over the same period of 2017, according to Director of the provincial People’s Committee Nguyen Van Danh. Danh said that export revenue of the foreign-invested sector reached over 7.4 billion USD, a rise of 18.3 percent, while domestic sector also bagged 1.8 billion USD, an increase of 9.9 percent.  In May alone, the province’s export revenue fetched more than 2 billion USD, a rise of 19.6 percent over the same time last year. In the first five months of this year, growth was seen in the majority of Binh Duong’s export products such as wooden products garment and footwear. Upturn was also recorded in major export markets such as the US, China, the Republic of Korea, Japan, and Europe. Danh attributed the results to efforts of local firms in expanding market and improving products’ quality, along with the province’s support to businesses’ operation. The local authorities have also helped businesses enhance the competitiveness of their products and build trademark. Alongside, the province has encouraged local enterprises to apply high technology in production and assisted them in capital access and human resources, he said. This year, Binh Duong aims for a growth of 16.5 percent growth in expert revenue.- Kien Giang stops licensing land reclamation projects The Mekong Delta province of Kien Giang has decided to suspend the licensing of new sea land reclamation projects, Sai Gon Giai Phong newspaper reported, citing an announcement of the provincial government. According to the management board for sea land reclamation projects of Kien Giang Province, two such projects have been developed in Rach Gia Bay. The Rach Gia project commenced in 1999 following a Prime Minister’s decision with a total area of 420 hectares while the Tay Bac project, which covers 116 hectares including 16 hectares of alluvial plain, got off the ground in 2015. The Rach Gia project has reclaimed land for 60,000 residents, a provincial administrative area, a square, hospitals and schools. Phu Cuong Investment JSC has got 160 hectares of land in the Rach Gia project to develop a new urban area. Meanwhile, the Tay Bac sea land reclamation project, implemented by Kien Giang Construction & Investment Consultancy Corporation, includes public facilities, commercial center and resettlement apartments for households living in makeshift canal homes in Rach Gia City. Vietnam food firms set for India expo Many Vietnamese firms are set to participate in the Vibrant Tamil Nadu Expo and Summit in Madurai city, India, to seek information and business opportunities, a meeting heard in HCM City on June 6. Speaking at the meeting, Jeevan Kandpal the Indian consul in the city, said the food industry-focused expo from August 12 to 15 will provide “opportunities to forge business partnerships world-wide.” The expo aims to bring together all the stakeholders from “farm to fork” – a reference to farmers, food processors, manufacturers, traders, exporters and importers, and consumers, he said.  India is the world’s second largest producer of fruits and vegetables, marine products, and meat and poultry. It is the largest producer of milk with production estimated at 155.5 tonnes, or approximately 19 percent of the world’s production. Its food and grocery market is the world’s sixth largest, with retail contributing 70 percent of the sales. “Domestic consumption is immense, given the 1.3 billion population and increasing affluence,” Kandpal said. It will be a lucrative food market for Vietnamese firms, he said. “The Indian Government has relaxed norms for the sector, allowing up to 100 percent FDI in food product e-commerce through the automatic route, and the wide consumer base should be a magnet for creating successful business ventures.” Nguyen The Hung, Deputy Director of the Vietnam Chamber of Commerce and Industry’s HCM City office, said food is among Vietnam’s industries with the greatest potential. “Food products not only meet domestic demand but are also exported to many countries and territories around the world. Vietnam is becoming an important supplier of agricultural products and food globally.” Hung hoped through the expo Vietnamese agricultural products, foods and beverages would enter the Indian market. Vietnamese firms would also have the opportunity to network with international partners at the event, he said.  Nguyen Dinh Truong, representative of the Vietnam Cashew Association, said cashew enterprises are very interested in the Indian market and, in addition to participating in the expo, would also want to visit leading cashew processing facilities there. The District 5 Business Association said it would send a delegation to the expo. K Thiruppathi Rajan, chairman of the event organising committee, provided information about the event and took questions. Kandpal said bilateral trade grew by 35 percent last year to 12.27 billion USD, and the two countries are striving to lift it to 15 billion USD by 2020. WorldTrans to add more Can Tho-Bangkok chartered flights World Transportation Services JSC, or WorldTrans, looks to launch more Can Tho-Bangkok chartered flights due to rising travel demand, Vu Duc Bien, chairman and general director of WorldTrans, said at the launch of the Can Tho-Bangkok maiden chartered flight on June 6. Bien told local media that the company has sold out tickets of 28 flights taking off in June and July, and even some flights of August for over 5,000 passengers. “Of the figure, 75% of passengers live in Can Tho City and the remaining dwell in neighboring localities,” he added. The number of passengers on Can Tho-Bangkok chartered direct flights in 2018 doubled that last year, up to 5,000 travelers compare to 2,800 in the previous year’s chartered flight program. “We are working with Vietravel to review the number of passengers,” head of the Can Tho-Bangkok chartered flight project Nguyen Vu Duy Nhat said, adding that besides above-mentioned 28 flights, WorldTrans is considering opening more flights from now to end-2018. In addition to these flights, Bien said that the company is joining hands with other localities nationwide to launch over 200 round-trip direct flights to South Korea, Taiwan, Japan, China, Myanmar, Nepal and Bhutan in 2018 and set a target of a 20% increase in 2019. Technology 4.0 key to boosting productivity: experts      Technology 4.0 and market research are key to improving Viet Nam’s poor productivity, experts told a conference on in HCM City on Wednesday. Pham Ngoc Hung, deputy chairman of the HCM City Union of Business Associations, said production efficiency was key to competing in international markets as Viet Nam opens up to the world. Viet Nam’s productivity is only around 7 per cent that of Singapore’s, 17 per cent of Malaysia’s and 37 per cent of Thailand’s, according to a 2016 report. Over 90 per cent of businesses in Viet Nam are small or medium sized, and many of them still use outdated technologies, causing their quality to suffer. Hung said 70 per cent of Viet Nam’s exports are by FDI companies, admitting: “There is a lack of trust in Vietnamese products due to perceived lower quality, and many firms choose not to do business with domestic suppliers. “This in turn deters domestic suppliers from investing heavily in upgrading their facilities.” Many small firms generally struggle to improve their technologies also because they do not have access to funding and market information and the drive to constantly update their technologies, he said. Certain funding programmes are inaccessible to them due to complicated and lengthy procedures, he said. The lack of a skilled workforce is also a problem, with many university graduates lacking practical experience, he said. The relatively poor protection of intellectual property rights deter businesses from spending resources on research since they are afraid their work could be stolen, he said. Many small businesses suffer from poor market research and often make plans without considering their customer base. Ly Truong Chien from Tri Tri Consulting said to improve productivity Viet Nam has to constantly keep abreast of the rapidly changing technology trends. Businesses need to study market trends and embrace technology 4.0 and modern techniques, utilising, for instance, big data to get a better picture of their customers, make a close examination of every stage of production rather than just the end products, and focus on developing the talents of their employees, he said. He stressed the importance of market research, urging businesses (especially SMEs) to know their own products and customer base to gain a foothold in the market. But businesses should carefully examine their own situation and adopt technologies appropriately rather than blindly copy from other countries, he added.  Ly Son Islands break Japan market      The island district of Ly Son in the central province of Quang Ngai has exported 500 tonnes of purple onion – a unique farm product of the island – to Japan. It marks the first time a Japanese company has put in an order for farm produce from the island this year. Director of the Ly Son Island Company Nguyen Van Dinh said that purple onion will be harvested and exported from June to December this year. Dinh said the product has to meet the high requirements of the Japanese market, which means passing strict examinations and gaining a certification of origin before shipping to the country. He said farmers in the island have been successful in gradually applying safe farming techniques and have joined value chains with high productivity, making an attractive price for export. Last year, the district began construction of a high-tech farm to produce organic garlic on the island, with a total investment of VND4 billion (US$177,000). Products of Ly Son Island including garlic, onion, seafood, garlic wine, dried seafood and seaweed were recognised by the National Office of Intellectual Property of Viet Nam, under the Ministry of Science and Technology, in 2007. In 2015, 40 tonnes of Ly Son black garlic were exported to Thailand. The island has planned to produce organic black garlic as well as garlic oils for export to Japan, the US and other Asian countries. Ly Son garlic and purple onion have a distinct flavour and a high demand both at home and in foreign markets. The island produced 2,500 tonnes of garlic and 6,500 tonnes of purple onion from 1,000ha of farmland last year. The island, known as the Kingdom of Garlic in Viet Nam, has around 21,000 inhabitants, of whom 73 per cent make their living from farming garlic and spring onions, alongside fishing.  Ha Nam to witness high-tech agricultural products      Enterprises from 20 provinces nationwide will showcase high-tech agricultural products and technologies at a fair themed, “High-tech and safe agricultural products in the Red River Delta Region in 2018.” The exhibition will be held in the northern province of Ha Nam from June 15-21. The event will be co-organised by the Ministry of Agriculture and Rural Development (MARD) in co-operation with the Ha Nam People’s Committee. Truong Quoc Hung, head of the Ha Nam Agro-Forestry-Fisheries Quality Assurance Department, said with more than 300 booths comprising associations and enterprises from different provinces and cities, the fair would introduce a wide range of hi-tech agricultural products as well as advanced processing and preservation technologies. Ha Nam is one of the pilot provinces focusing on accumulating land serving and attracting investment in agricultural production to develop high-tech agriculture. As a result, many large enterprises have invested in and developed hi-tech agriculture in the province. The fair will be an opportunity for enterprises to expand exchanges and co-operation in the field of investment and development of high-tech agricultural production and establishment of a safe market for agricultural products. Through this, businesses will be able to grasp the needs and tastes of customers to improve the product quality and develop new products to enhance competitiveness in domestic and foreign markets. MARD will also organise the “Special week of Thanh Ha lychee” in Ha Noi from June 12-18, in co-operation with People’s Committee of the northern Hai Duong Province’s Thanh Ha District, to introduce local lychee. Thanh Ha District applies the quick response (QR) code-based payment technology to develop and protect the brand name of Thanh Ha lychee. This year, the district has so far produced nearly 3,900ha of lychee, of which nearly 93ha are suitable for exports to the United States, Australia, Japan, France and the European Union, with 30ha meeting Global GAP standards. The total lychee output of Thanh Ha District this year is estimated at 35,000 tonnes. Vietnam, Canada boost trade ties The participation of Prime Minister Nguyen Xuan Phuc in the G7 Outreach Summit and his visit to Canada from June 8-10 are expected to create more opportunities for Vietnamese and Canadian businesses to expand their partnership.  According to the Ministry of Industry and Trade, Vietnam is ranked fifth in Asia in terms of export turnover to Canada, after China, Japan, the Republic of Korea and China’s Taiwan.  The bilateral trade enjoys an annual average growth of 20-25 percent and hit nearly 6 billion USD in 2017. Vietnam mainly exported mobile phones, printers, electric cables, telecommunication equipment, wood furniture, garment-textile, footwear, aquatic products, coffee, cashew nuts, means of transportation and spare parts, sport equipment, rubber, plastic products, and processed fruit and vegetables to Canada.  The Southeast Asian country imported from Canada agro-fishery products, soft wood, medicines, wine, navigation services, high technology and clean technology. Canada is ranking 13th among the total 112 countries and territories investing in Vietnam with 161 projects worth 5.2 billion USD. Vietnamese Trade Counselor in Canada Do Thi Thu Huong said there is still large room for Vietnamese enterprises to boost exports to Canada, a country that relies on imports for consumer goods. Although the country’s market scale is only one tenth of the US’ but its per capita import value doubles that of the US. She noted that made-in-Vietnam goods only make up over one percent of Canada’s total imports. According to Huong, the large number of people of Asian origin, including around 250,000 Vietnamese, in Canada is an advantage for businesses to boost exports of farm produce to the market.  The trade official added that the Canadian Government plans to diversify the market and reduce its import from the US. Therefore, Vietnam is one of the nations with which Canadian companies want to increase trade and investment ties, she said. Huong revealed that the Vietnamese Trade Office in Canada has worked with Canada’s Trade Facilitation Office to implement projects helping Vietnamese firms make inroads into the market. Minister of Industry and Trade Tran Tuan Anh appreciated Canada’s dynamism in cooperation with the ASEAN alongside with the Trans-Pacific Partnership (TPP).  In the context of rising protectionism, the role of countries with remarkable influence such as Canada is very important to international integration and globalization, the minister said.  He was of the view that the Regional Comprehensive Economic Partnership (RCEP) and other bilateral and multilateral trade deals that both Vietnam and Canada might join will continue to provide an impetus for globalization. Minister Tuan Anh affirmed that Vietnam shares other ASEAN countries’ interest in researching and reaching a free trade agreement between the bloc and Canada besides the RCEP and other regional cooperative framework. The ministry has directed trade offices and relevant units to apply measures to boost exports of Vietnamese key products to Canada, he said. Apart from long-term strategies, businesses should make use of commitments and incentives from the signed agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the RCEP to promote exports to Canada, the minister added. Over the past two decades, Canada has been one of the leading providers of development assistance for Vietnam. Canada considers Vietnam a priority partner in Asia in its global market action plan, international education strategy, and development assistance policy. The two countries have also closely work at multilateral mechanisms such as the United Nations, the Asia-Pacific Economic Cooperation (APEC) Forum, and the International Organization of Francophone (IOF). FTAs drive Vietnam-Australia trade ties to new heights Vietnam and Australia have signed free trade agreements (FTAs) committing to tax rate cuts, which will help to stimulate import-export activities between the two nations. According to the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) roadmap, Australia cuts 90% of import taxes this yearand 100% of tax lines will drop to zero as from 2020. Meanwhile, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will promisingly facilitate trade ties between Vietnam and Australia. Vo Tan Thanh, vice President of the Vietnam Chamber of Commerce and Industry (VCCI) and General Director of VCCI HCM City branch, told a conference on Vietnam and Australia trade connection held in the City on June 4 . Mr Thanh said Vietnam-Australia bilateral ties have seen strong development over the past 45 years, especially in trade, investment and tourism. Bilateral trade hit US$6.5 billion last year, including US$3.3 billion from Vietnam’s exports to Australia and nearly US$3.2 billion from its imports. Australia is currently Vietnam’s eighth largest trading partner while Vietnam is the 15th biggest trading partner of the Oceanic nation. By the end of last year, Australia had injected US$1.8 billion in about 400 projects in Vietnam, ranking 19th out of 126 countries and territories investing in the country. The Australian Government has been encouraging its businesses to land more investments in Vietnam, which has also run numerous projects in Australia. Thanh said he believed that with the current growth rate, Australia's investment ranking in Vietnam would be remarkably improved towards becoming one of the top ten foreign investors in Vietnam. Australia is also among the biggest official development assistance (ODA) donor countries to Vietnam. Every year, it provides around US$150 million worth of ODA for Vietnam. Nearly 300,000 Vietnamese people are living in the country, which serves as a bridge to boost bilateral trade ties. Tien Thinh International director Le Thanh Tung, said Vietnam’s exports to Australia make up 1.7% of the country’s total imports only, although Vietnam is its 15th biggest exporter. Australia is considered a potential market for Vietnamese businesses. However, to expand trade and investment activities in Australia, domestic businesses should make further research on the market as well as its investment policies and other regulations, said Mr Tung. Gary Dawes, senior international trade adviser from the New South Wales Business Chamber, said Australia is the fifth biggest economy in the Asia-Pacific region and the Australia Government has long-term and consistent investment and trade policies. Vietnamese businesses should define their target market and ability to approach if they want to invest or do business in the country. As a gateway of many economies, Vietnam will have an opportunity to penetrate other markets after its products enter Australia, said Mr Dawes. Businesses at the conference also put questions concerning exports to Australia, investment attraction policies of New South Wales, information on consumer trends in furniture, plastic packaging, real estate investment opportunities, and real estate trend in the next five years. Bac Giang rejects information about litchi glut The provincial government of Bac Giang has rejected rumors that litchi faced a glut that has prompted certain farmers to dump the unsold fruit, asserting that litchi production and consumption in the province is normal now, news website VnEconomy reports. The authorities of Bac Giang Province insisted that some 60 domestic and foreign traders had come to purchase litchi at over 40 farms in early harvest season. “The information litchi prices went down at a record low of VND10,000 per three-kilo bunch does not reflect the litchi production and consumption in the province, causing worries to farmers,” the provincial authority stressed. Litchi prices in the early season reached a peak between VND30,000 and VND45,000 per kilo. Litchi cultivated according to VietGap standard cost VND22,000 a kilo on June 1 in Tan Yen District. However, the provincial government admitted that litchi priced at VND10,000 a kilo was of poor quality with small sizes. “Bac Giang litchi consumption at the time averages out at 1,200 tons a day, with 9,000 tons having been sold, generating estimated revenue of VND170 billion,” VnEconomy cited the authority as saying. VNN