BUSINESS NEWS IN BRIEF 23/7 Can Tho City seeks investment for 54 projects worth $5.4 billion       Can Tho City will call for VND124 trillion (US$5.4 billion) investment to finance 54 projects at a conference to be held on August 9-10. The new list, reviewed at a meeting on Tuesday, exceeds the initial target of a combined VND110 trillion set in May. Of the 54 projects, 44 are in the form of direct investment with an estimated value of over VND112.9 trillion. Among them, 22 have found investors who are already prepared to deploy VND82 trillion. The Mekong Delta City is seeking investment to become a service and hi-tech agriculture centre as well as an information technology hub. Can Tho is expected to introduce its strengths and investment policies during the conference under the theme of Sharing Potential for Mutual Development on August 10. Prime Minister Nguyen Xuan Phuc, along with 550 domestic and foreign delegates, is expected to attend the event. Discussions will be held on services, hi-tech agriculture and information technology. Some investment projects are expected to be awarded licences at the event and ground-breaking ceremonies for key projects in the area will be held. Last year, Can Tho attracted 77 foreign direct investment projects worth $656 million.  Vinataba reports decreasing profit after giving up confectionery firms After earning plenty of money from divesting from Hai Ha Confectionery JSC and Huu Nghi Food JSC, Vietnam National Tobacco Corporation (Vinataba) reported a decrease in profit due to giving up these two confectionery firms. In March 2017, Vinataba registered to sell all of its 10,347,630 shares, equal to 51.74 per cent of the charter capital, in Huu Nghi Food. At the same time, the firm also registered to offload 8.4 million shares, or 51 per cent stake, of Hai Ha Confectionery. As a result, four individuals spent over VND824 billion ($35.9 million) to acquire the stake in these two confectionery firms. Notably, on March 17, Vu Hai spent VND155 billion ($6.75 million) on buying 3.9 million Hai Ha Confectionery shares and Nguyen Thi Duyen spent VND405 billion ($17.65 million) acquiring 8.37 million shares. On March 21, Nguyen Van Dung and Luu Thanh Tam bought a total of six million shares to own 20 and 10 per cent stakes in Huu Nghi Food, respectively. At the time, Huu Nghi Food’s shares were valued at VND44,000, thus, these two individual paid VND176 billion ($7.66 million) and VND88 billion ($3.83 million) for the sale. According to the forecast of the firm, in 2018 Vinataba's pre-tax profit may decrease by 27 per cent due to losing the profit from the two confectionery firms. The two share sales contributed a large part to Vinataba’s pre-tax profit of VND1.42 trillion ($61.87 million) in the first half of last year. However, the happiness only lasted for a short time because after completing the sales, Vinataba’s revenue fell. Notably, according to the company’s financial statement, in 2017 Vinataba reported VND25.68 trillion ($1.12 billion) in revenue, signifying a decrease of 3.91 per cent on-year. According to Vinataba, this excluded the business results of Hai Ha and Huu Nghi Confectionery. According to the forecast of the firm, in 2018 it may see a 27 per cent decrease in pre-tax profit due to losing the profit from the two confectionery firms. Vinataba was established in 1985. It is not only the largest cigarette producer in Vietnam, but one of the largest enterprises in the country. It is a state-owned holding group which, since June 2007, has been the only concern permitted to produce, import, and distribute cigarettes and cigars in Vietnam. In 2000, Vinataba cooperated with Japan Tobacco International (JTI) to produce the Mild Seven (Mevius) cigarette in Thanh Hoa Tobacco Factory (currently Thanh Hoa Tobacco Corporation). In 2001, the firm cooperated with British American Tobacco plc. to establish a $65 million joint venture company named British American Tobacco-Vinataba, to produce high quality tobacco fibre to stop fibre imports. The joint venture’s capacity is approximately 19,200 tonnes of fibre per year. The fibre factory officially came into operation at the end of 2004. Listed pharmaceutical firms told to withdraw drugs containing Valsartan      Four of the eight companies that have been asked to revoke drugs made using the China-produced component Valsartan by the Drug Administration of Viet Nam are listed on the stock exchange. The companies are Domesco Medical Impor-Export JSC (Domesco), Cuu Long Pharmaceutical JSC, Central Pharmaceutical JSC 2 (Dopharma) and Pymepharco JSC. Valsartan is a raw material produced by the China-based Zhejian Huahai Pharmaceutical Company. It has been reported to contain a compound known as NDMA that can cause cancer. The latest order follows decisions made by the European Union Medicines Agency (EMA), Canada and several other countries to revoke all drugs containing Valsartan from the market. Domesco (DMC), Cuu Long Pharmaceutical (DCL) and Pymepharco (PME) are listed on the HCM Stock Exchange, while Dopharma (DP2) is trading on the Unlisted Public Company Market (UPCoM). DMC and DP2 ended Tuesday flat at VND82,900 (US$3.68) and VND9,100, respectively, while DCL and PME fell 0.7 per cent each to close at VND13,900 and VND70,000.  HSBC launches app to track transactions      HSBC has launched a tracker on its app that allows customers to track the real-time status of trade transactions wherever they are in the world and at any time of day. The mobile tool, the first of its kind in Viet Nam, provides customers with access to an overview of their import and export documentary credits and collections and payments across markets with just one click. “As an innovative mobile tool that allows businesses to better manage their global trade flows, the HSBCnet trade transaction tracker is a game changer for our corporate clients and partners,” Winfield Wong, country head of wholesale banking, HSBC Viet Nam, said. “Today, entrepreneurs and managers use mobile phones to run international businesses, and we know how important it is for them to keep track of their transactions along the supply chain in a very convenient, quick and secure way … to maintain their competitiveness.” The service is available to all trade customers registered for Instant@dvice. Customers using iPhones or Android devices can download the latest version of the HSBCnet Mobile app. Last May HSBC became one of the first banks to utilise FaceID technology to allow corporate customers to access mobile banking. Seminar pushes digital transformation      The Viet Nam Information and Communication Technologies Outlook (VIO 2018) seminar to be held in HCM City on July 25 and 26 is expected to provide IT companies and businesses with an opportunity to connect and expand the market for Vietnamese ICT products. With the theme “Innovation in the digital era,” it will discuss digital transformation solutions designed for State agencies and micro-, small and medium-sized enterprises to operate effectively. Experts and businesses that have been successful in digital transformation will share their experience. Lam Nguyen Hai Long, chairman of the HCM City Computer Association (HCA), the event’s organiser, said VIO 2018 would also include a business-matching event for the first time to create opportunities for businesses to exchange information and explore possibilities for partnerships. “We will create a place for start-ups to introduce their products, and through this we want to promote products developed by micro and small enterprises as well as innovative businesses.” Vu Anh Tuan, HCA’s general secretary, said the event this year would be bigger and have many more activities than in previous years. Besides the main seminar, VIO 2018 would also feature a second conference titled “Smart City 360 Degrees”, a start-up talk-show on start-up trends and opportunities, support eco-system, investment funds and others, he said. Dr Doan Xuan Huy Minh of the Institute for Computational Science and Technology of HCM City said Smart City 360 Degrees, to be held by the HCA and his institute on July 26, would feature topics such as monitoring of water and air quality and warning systems, intelligent urban traffic control technologies and solutions, blockchain technology applications in smart city, and deep learning application for object detection and identification via real-time camera. VIO 2018 will also include the 2018 Top ICT Viet Nam awards ceremony on July 25 to honour outstanding IT and telecom companies, products, and services. The seminar, to be held at the White Palace Convention Centre in Phu Nhuan District, is expected to attract over 1,500 participants, including information and communications officials from HCM City and other cities and provinces, local and foreign ICT experts and business executives.  China consumes 98% of Vietnamese longan output Vietnamese longans have been shipped to many countries in the world, most of them to China which consumed 98% of the total output. According to the General Department of Vietnam Customs, fruit and vegetable exports hit US$1.99 billion in the first half of this year, up 19.3% against the same period last year. Particularly, longan exports rose by 8.9% to US$124.76 million mostly to China, the US and Taiwan. The Import-Export Department under the Ministry of Industry and Trade forecast a bumper longan crop this year. Son La and Hung Yen are two largest longan growing provinces in the north. This year, Son La grew 12,257ha of longan trees, 7,826ha of which began to be harvested, and Hung Yen province has 4,340ha under longan, 4,200ha of which have been harvested. In order to help longan growers get a higher profit, a promotion campaign will be held from late July to the end of August by the Agro Processing and Market Development Authority (AgroTrade) and Hung Yen and Son La provinces to increase their sales and exports. Son La will launch the Safe Longan and Farm Produce week, a longan festival, an export promotion conference and a longan week in Hanoi. Especially, the province will hold a longan trade promotion conference in Pingxiang, Guangxi, China. Meanwhile Hung Yen will organize five major events to accelerate the consumption of its products including a Hung Yen longan festival and a longan week in Hanoi. Vietnamese dong caught between rising dollar, falling yuan Vietnam’s central bank has to engage in a delicate balancing act as the US-China trade war exerts inflationary pressures on the dong. As the trade war of duties and counter duties escalates, China has weakened its currency to boost exports making its goods even cheaper in Vietnam. Local economists have noted that while the yuan has lost 4.18% against the US dollar over the last two weeks, the Vietnamese dong has only lost a little above 1%, making Chinese imports much cheaper. Vietnam has to balance between keeping the trade deficit control and being able to compete with cheaper Chinese goods in the market. In the past three months, the yuan has fallen 3% against the dollar while Vietnam only devalued dong around 1.1%. And Vietnam should take precautions because the yuan could fall even further, financial expert Nguyen Tri Hieu said. “China has set the yuan’s foreign exchange rate at 6.95 per dollar,” he said. “But around two years ago, that number was even lower at 6.69 per dollar. So there is a potential for the yuan to slip further.” Hieu said he believes that if the government decides to devalue the dollar, a three percent drop by the end of this year is reasonable. Economist Ngo Tri Long, former director of the Market Price Research Institute under the Ministry of Finance, cautioned that that the central bank should adjust the dong’s exchange rate based on the market and not the yuan. “In my opinion, adjusting the dong’s value at the moment is a risky move, especially, with a 3% drop. “It is going to be hard to achieve the nation’s target of keeping inflation below 4% by the end of this year. Not to mention other future-factors we should take into consideration other factors like higher oil prices and damage caused by natural disasters.” But if Vietnam decides to move forward with devaluing the dong decision, the adjustments should be based on market demand and not on the yuan’s value. Long felt that a two percent drop would better match current market. On the other hand, president of Vietnam Institute for Economic and Policy Research Nguyen Duc Thanh stated that Vietnam should reduce dong’s currency exchange rate against the dollar and the yuan. However, such a move it would greatly affect many businesses, Thanh said. “This is a risky step since it will have ripple effects on many sectors like stocks and real-estate.” Asked how businesses can protect themselves from future foreign exchange fluctuations, Hieu recommended that businesses follow set contracts with fixed exchange rate. ​Commercial, office space rents continue to soar in Vietnam Businesses in Vietnam are facing difficulty in finding suitable commercial or office space as the rental rates have skyrocketed, especially in big cities. Not a few enterprises had to discontinue renting space in urban zones in Hanoi and Ho Chi Minh City due to the inflated rents, driven by rising real estate prices. According to a big real estate agency in Ho Chi Minh City’s District 1, rents for space on the metropolitan streets of the southern hub saw a rise of up to 30% from 2017. D.A., owner of a store for lease on Le Thanh Ton Street in the same district, told Tuoi Tre (Youth) newspaper that he leased his premises for VND85 million (US$3,655) per month. Tuoi Tre reporter observed that the landlord hung a for-lease sign, which reads VND65 million (US$2,795), for the same store just one month before. Meanwhile, just three kilometers away from Le Thanh Ton Street, a space of 150 square meters on Cach Mang Thang Tam Street in District 3, the second busiest thoroughfare in Ho Chi Minh City, is available for lease at VND80 million (US$3,440) per month without value-added tax. Not only commercial space, rents for warehouses and workshops in the city’s outlying districts are now as high as VND170 million (US$7,310) per month for a 2,500 square meter premises, up VND30 million (US$1,290) from the beginning of 2018. With rents constantly soaring, many people are still racing to find places for lease at reasonable prices for their small and medium businesses. However, rents for office in Ho Chi Minh City are expected to rise until 2020, as supply of new space won’t increase, while existing offices for lease in the city have been fully booked, according to the U.S.-owned realty consultant firm CBRE Vietnam. Availability rates of both grade-A and grade-B offices in Ho Chi Minh City are less than 5%, said Dang Phuong Hang, managing director of CBRE Vietnam. Likewise, data by real estate service provider Savills Vietnam showed that rental offices in the southern metropolis are being occupied at the rate of 96%. Savills Vietnam also anticipated that the rents for offices will continue to soar in the upcoming time. Industry insiders are concerned that the spike in space rents is a hint of a possible property bubble. Vietnam’s traditional retail confidence falls slightly in first quarter The retail confidence index (RCI) of traditional local retailers, such as grocery stores, slipped to 68 points in the first quarter of the year, down by one point year-on-year, according to Nielsen Vietnam. A report released by the market research company shows that the confidence of traditional grocery stores in the retail sector has remained low in the last two years, particularly in urban areas. Nguyen Anh Dung, executive director of the Retail Measurement Services at Nielsen Vietnam, explained that the average RCI is 100. An index exceeding 100 indicates optimism among retailers and vice versa. Therefore, the RCI of local retailers in the first quarter implies that they do not foresee a bright future for the domestic retail market. Retailers running traditional channels also voiced concerns over the spending habits of consumers and the number of consumers visiting their stores as well as the competitiveness of other retailers. In addition, they need help to win the support of consumers, noted Nielsen Vietnam. With more than 1.4 million stores throughout the country, the traditional trading channel in general has secured the top position in terms of the contribution to the revenue of the fast-moving consumer goods (FMCG) sector. This channel made up approximately 83% of the total revenue in urban areas, equivalent to nearly US$10 billion in the FMCG sector. The report on RCI is based on the results of direct interviews at more than 800 traditional grocery stores nationwide, which put a minimum of 30 product lines on sale, with the aim of gaining insight into the local retailers’ confidence, their primary concerns and their support for leading brands. Two foreign brands dominate personal hygiene market in Vietnam A Japanese and an American brand, Diana and Kotex, are enjoying the lion’s share of the fast-growing personal hygiene products market in Vietnam. Among the 10 most popular personal care brands in the country, Diana and Kotex hold a whopping 80% of the domestic market share. Unicharm, the Japanese company which owns the Diana brand, has been in Vietnam for 27 years.  Diana brand products earned revenues of VND5 trillion (US$218 million) in 2016, up 10.6% over 2015, for a net profit of VND819 billion (US$35.7 million), making it the market leader by far.  In second place is the Kotex brand, owned by the US based Kimberly-Clark Corporation, which reported revenues of VND4.9 trillion (US$214 million) in 2016, a year-on-year increase of 9%, for a net profit of VND485 billion (US$21 million). With a large proportion of young people in its population of 93 million, both brands expect the Vietnamese market for personal sanitation products to grow significantly in the coming years.  Sharp decline in crude oil exports Vietnam exported 1.88 million tons of crude oil worth US$1.05 billion during the first half of this year, down 50.9% in volume and 31.4% in value against the corresponding period of last year, according to the General Department of Vietnam Customs. China was the largest importer of Vietnam’s crude oil, making up 26% of Vietnam’s total exports with 489,802 tons or US$272.07 million, down 63.9% in volume and 50.5% in value compared to the same period last year. Thailand came second, consuming 375,016 tons worth US$213.1 million, down 30% in volume and 2% in value. They were trailed by Australia with 340,258 tons valued at US$191.02 million, up 13.7% in volume and 60.7% in value. In general, exports of crude oil to most markets declined in both volume and value compared to the same period last year. Exports to Singapore suffered the most, dropping 73% in volume and 63% in value. However, exports to the US saw a sudden spike in growth, jumping 294.2% in volume to 132,671 tons and 382% in value to US$68.42 million. Vietnam Foodexpo coming to HCM City this November An International Food Industry Exhibition (Vietnam Foodexpo 2018) being held in Ho Chi Minh City this November is expected to attract about 450 exhibitors. The Trade Promotion Agency (TPA) will coordinate with relevant agencies to organize a series of events such as an international conference on the Vietnamese food industry, a seminar on investment promotion in the food processing industry and a Saigon international cooking contest. The TPA will also work with ministries and departments including the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, trade offices and trade promotion agencies overseas, foreign embassies in Vietnam and world trade promotion organizations such as CBI, Business France, ITA, KOTRA, JETRO, AKC, ATPF, TAITRA, ITC and craft associations to invite trade partners and visitors to participate in the Expo. Thousands of direct trade connection activities will take place at the Expo’s pavilions, helping participating businesses to directly meet partners at the event. The Vietnam International Food Technologies Exhibition (Foodtech 2018) will coincide with the hosting of Foodexpo 2018. Both events aim to accelerate technology transfer and improve productivity and added value in Vietnam’s food processing industry by increasing the efficiency of trade promotion in the food industry. Vietnam Foodexpo 2017 drew more than 450 domestic and foreign exhibitors, showcasing their products across more than 600 pavilions. The four-day event lured around 15,000 commercial visitors, including approximately 3,000 foreigners from nearly 50 countries and territories and more than 9,500 domestic visitors. Over 3,000 contracts and investment and trade deals were reached at the expo. China’s BRI brings firms from Hong Kong to Vietnam Hong Kong companies are moving to Vietnam for investment and business purposes, capitalising on opportunities arising from China’s Belt and Road Initiative. Margaret Fong, executive director of the Hong Kong Trade and Development Council (HKTDC), said, “Hong Kong could be Vietnam’s partner in exploring new business opportunities arising from the Belt and Road Initiative (BRI). We believe that there are many things we can do together with Vietnam as Hong Kong is now focused on going international.” According to Fong, the HKTDC will host the In Style Hong Kong Expo in Ho Chi Minh City this September. The expo is a two-day B2B trade exposition, showcasing a wide variety of quality branded and designer-led lifestyle products from Hong Kong companies. In March, a delegation of 60 Hong Kong companies in the finance, legal, accounting, and infrastructure sectors also paid a working visit to Vietnam to seek business and investment opportunities. Hong Kong is looking to enhance investment and business collaboration with Vietnam under the BRI. “Hong Kong could be Vietnam’s partner in exploring new business opportunities arising from the Belt and Road Initiative (BRI). We believe that there are many things we can do together with Vietnam as Hong Kong is now focused on going international.” - Margaret Fong Hong Kong has recently hosted the third Belt and Road Summit which welcomed some 5,000 participants from 55 countries and regions. On the framework of the summit, Vincent HS Lo, chairman of the HKTDC, told VIR that there are many investment opportunities in Vietnam under the BRI. When starting to invest in the market, infrastructure such as power, railways, and highways, is the primary requirement. From infrastructure development, investment in other fields such as manufacturing, trading, tourism, and real estate will follow. Lo further noted that Vietnam needs to prepare and make certain changes to accommodate the new wave of foreign investment. It is important to have the trust that this investment will benefit the country. At the same time, Vietnam should provide some form of guarantee for the investment so that investors can see a return. As the sixth-largest economy of ASEAN, Vietnam is set to become a close economic partner of Hong Kong. In the near future, business ties between Hong Kong and Vietnam will strengthen thanks to the ASEAN-Hong Kong Free Trade Agreement, and the Investment Agreement signed late last year. From as early as January 1, 2019, Hong Kong and Vietnam will enjoy a freer flow of goods, services, and investments. “With the signing of the FTA and the BRI, there would be more room for Hong Kong investment in Vietnam and also the other way around,” said Edward Yau, secretary for commerce and economic development of the Hong Kong Special Administrative Region Government. “We also believe that Hong Kong can serve as a gateway for strong businesses between Vietnam and China. This would create more demand for professional services such as banking, insurance, construction, architecture, arbitration, and city development.” Indeed, Hong Kong has long been a conduit for trade and commerce between the Chinese mainland and the rest of the world, and this role is further strengthened under the BRI. As the commercial and investment hub of BRI, Hong Kong enjoys unique advantages to tap these opportunities. Given the territory’s many qualities, such as a common law system, independent judiciary, low and simple tax regime, advanced financial and investment infrastructure, extensive international networks with free flow of information, capital, and goods, Hong Kong can serve as an ideal platform for capital formation and financing for global investors. Nghi Son Refinery and Petrochemicals heading for insolvency Unless PetroVietnam contributes sufficient capital to its joint venture project, lenders will not disburse and Nghi Son Refinery and Petrochemicals LLC (NSRP) will default.   In a document sent to the Ministry of Industry and Trade (MoIT), Vietnam National Oil and Gas Group (PetroVietnam) said that the group is facing many obstacles in the process of adjusting total investment and state capital contribution at Nghi Son Refinery and Petrochemicals project. “All the contribution capital parties are pushing PetroVietnam to complete its state capital contribution this July, as following this lenders will disburse the loans as commitments. Without the disbursement of the loans, the project will default,” vnexpress.net quoted a paragraph of the document. The Nghi Son Refinery and Petrochemicals project was approved on April 5, 2008 with a design capacity of 8.4 million tonnes of crude oil per year, and the total registered investment capital of $6.15 billion. In 2013, the project was issued a fourth amended investment certificate, raising total investment to $9 billion and charter capital to $2.4 billion, while total costs were identified at $9.2 billion, including $4.2 billion from owners’ capital contribution and $5 billion from loans. Being a wholly-state-capital group, PetroVietnam must comply with current regulations on management of investment and construction expenses. PetroVietnam asked NSRP to check and create amended total investment, however, several challenges exist related to differences between the old and new laws. The next challenge is how to disburse the remaining contribution capital from the state in the project. PetroVietnam has asked MoIT to guide this implementation. At the online summary meeting for the first half of the year, MoIT Deputy Minister Dang Hoang An said that the disbursement problem is complicated and MoIT will collect comments from ministries and agencies and report to higher levels. Nghi Son Refinery and Petrochemicals is situated in Nghi Son Economic Zone, Tinh Gia District in the central province of Thanh Hoa. Its capacity for the first phase is 200,000 barrels of crude oil per day, equivalent to 10 million tonnes per year - nearly double that of Dung Quat Oil Refinery (BSR) in the central province of Quang Ngai. It is invested by a consortium of Kuwait International Petrochemical Company (KPI, 35.1 per cent), Idemitsui Kosan (IKC, 35.1 per cent), and Mitsui Chemicals (MCI, 4.7 per cent). The rest is contributed by state-run PetroVietnam. The plant will produce LPG, gasoline (RON 92, 95), diesel (high grade, conventional), kerosene/jet fuel, polypropylene, paraxylene, benzene, and sulfur products. The project has enjoyed numerous incentives, including corporate income tax at 10 per cent for up to 70 years. It will be compensated from PetroVietnam’s budget between 2017 and 2027 if the market tax rate is lower than the preferential tax rate of the project. NSRP is exempt from corporate income tax for four years and has to pay an average tax rate of 10 per cent for the next 70 years. PetroVietnam will consume all NSRP’s products within 15 years at the wholesale price equivalent to the import price with 3-7 per cent added for preferential tax. In May, NSRP’s factory produced the first batch of RON A92 petrol with capacity of 5,000cu.m, and expects to officially begin operating commercially in August or September. Sabeco 2018 profits set to be lower than last year The backing of ThaiBev has not helped Saigon Beer, Alcohol and Beverage Corporation (Sabeco) to overcome fierce competition from foreign breweries, forcing Sabeco to decrease its profit target for 2018 to VND4 trillion ($173.5 million) - VND1 trillion ($43.38 million) less than 2017’s profits. Sabeco recently published its business targets for 2018, showing the company targets to earn VND36.092 trillion ($1.56 billion) this year, up 2.4 per cent compared to 2017. Beer sales only saw a light increase to 1.8 billion litres compared to the 1.79 billion litres of 2017. This is the first year that ThaiBev has joined the Sabeco Board of Directors after completing the purchase of 53 per cent of the stakes in December 2017. However, Sabeco has lowered its profit target by 20 per cent year-on-year. In early May, Sabeco released its consolidated financial statement for the first quarter of this year, reporting an increase in revenue but a decrease in profit. Notably, its consolidated net revenue was VND7.81 trillion ($343.1 million), up 4.6 per cent year-on-year, and after-tax profit decreased by 2.7 per cent to VND1.16 trillion ($50.96 million). As of March 31, the firm’s asset value reached VND20.76 trillion ($912.09 million), down 6 per cent against the beginning of the year. Meanwhile, sales expenses decreased by 13 per cent to VND594 billion ($26.18 million) due to decreases in expenditures for administrative and marketing programmes. Along with the decline in profit, Sabeco’s shares plunged after hitting a record VND334,500 ($14.69) in late November 2017. Notably, on July 13, Sabeco’s shares were at VND218,000 ($9.6). With the existing share value, it is evident that ThaiBev is suffering a massive loss from the purchase of Sabeco. Earlier on December 18, Vietnam Beverage (49 per cent controlled by ThaiBev), won an auction to acquire 343.6 million shares, equivalent to 53.5 per cent of Sabeco at VND320,000 ($14.09) per share. This is the largest share sale in Vietnam to date, and was possibly the largest in Asia last year. According to ThaiBev, the entirety of the funds used for the deal came from loans. The company borrowed $3.05 billion from local banks, including Bangkok Bank, Kasikornbank Public, Krung Thai Bank, Bank of Ayudhya, and Siam Commercial Bank, with two-year terms. In addition, its wholly-owned subsidiary Beer Co. borrowed another $1.95 billion from Mizuho Bank and Standard Chartered Bank’s Singapore branch. In total ThaiBev has accumulated losses of VND35.01 trillion ($1.52 billion) from the deal. Vinapaco seeks extended discount incentives for Phuong Nam pulp mill Vietnam Paper Corporation (Vinapaco) is seeking approval to apply a 10 per cent discount at any of a number of auctions of Phuong Nam pulp mill to increase the chance of a sale. According to tienphong.vn, the Management Board of Phuong Nam Pulp Mill recently organised an extraordinary general meeting hosted by general director Nguyen Viet Duc to discuss plans to deal with difficulties encountered during the sales process. At the meeting, Duc stated that further auctions may fail if the government does not approve specific mechanisms for the sale. Thus, Vinapaco will continue to publicise information about the auction according to the approved plan, with the starting price of VND1.885 trillion ($81.78 million). In the case of there being no interested investors, Vinapaco proposed the Ministry of Industry and Trade (MoIT) to ask the government to approve specific incentives for the projects. Notably, if the first auction fails, the firm will be permitted to reduce the asking price by 10 per cent for the following auctions. The discount will be applied as many times as necessary. Vinapaco’s proposal only differs from MoIT’s in the number of times this discount can be applied (MoIT proposed that this discount cannot be applied more than twice). Vinapaco also stated that in case a buyer is not found even with the discounted price, the firm will appraise its financial capacity as well as its ability to repay debts and then report to MoIT to set the price discount for the next auction. In addition, Vinapaco proposed that MoIT assign Vietnam Auditing and Evaluation Co., Ltd. to continue implementing the evaluation consultancy contract at the offered price of no less than VND500 million ($21,692). The mill’s construction was kicked off in March 2006 with initial investment capital of VND1.487 trillion ($66.3 million) from Transport and Communication Development Investment Company (Tradico). The mill was expected to produce the highest quality pulp in Vietnam, reaching European standards. In 2007 the mill entered its test run and in November Tradico decided to increase the total investment capital to VND2.286 trillion ($102.5 million). However, the test run was suspended due to machinery breakdowns. In 2009, Tradico was licensed to transfer the pulp mill to Vinapaco. The expected cost of the project increased to VND3.4 trillion ($148.9 million). However, after Vinapaco took over the mill, it was upgraded and began operating again, however the malfunctions remained. According to Vinapaco’s report, as of December 31, 2015, the total disbursed capital of the project was VND2.636 trillion ($114.36 million), and as of the end of 2016, the mill had to bear a total debt of VND2.695 trillion ($116.9 million), including interest. MBLand Holdings comes under fire for sub-par premium apartments MBLand Holdings has promised to apply automatic parking technology in the basement floors of the Golden Field My Dinh project to increase parking slots, but has not followed up on its commitments, while the walls of several apartments were cracked a couple of months after being finished.  Residents could move in to the thirty-storey Golden Field My Dinh building with 389 premium apartments on the corner of Nguyen Co Thach-Ham Nghi streets, South Tu Liem district, Hanoi from the first quarter of 2018. However, the local authorities have pointed out a number of violations of the fire code. Additionally, residents of the building complained about the quality of building, service fees, and compliance with the project design. According to a complaint letter of Golden Field My Dinh residents, the developer of this building has violated regulations of Decision No.1969/QD-UBND dated April 22, 2016. In essence, the communal area—including 6,775 square metres of parking area in the three basement floors, 315sq.m of community living room at the fourth floor, and 14,655sq.m of traffic and technical support for the whole building—should be under joint ownership. However, in the purchase contract between the developer and residents, all of these areas have been determined to belong to MBLand. Also according to Decision 1969, MBLand has to develop resolutions of automatic parking to increase parking space. However, the developer has yet to do so, while the building has already been put into operation, and the number of residents has been increasing. This makes residents worry about a potential overload at the basement parking lot. There are only 200 parking slots now, while the number of apartments is 389. Pham Viet Cong, a resident of Golden Field My Dinh, told infonet.vn: “If the building does not apply automatic parking, there will not be enough parking slots for all, and the building cannot guarantee a slot for each apartment. We do not know why the developer has not complied with the decision of the Hanoi’s People’s Committee yet.” In last April, the fire department checked the building and detected numerous issues related to fire safety. The building did not pass the pre-acceptance test. Thereby, the agency has fined the developer and recommended all organisations, individuals, and households not to move into this unsafe building. Additionally, residents of Golden Field My Dinh also raised various problems in building quality. The walls of several apartments numbered XX12, XX18, and XX19 have been cracked, and the plaster is starting to break. Moreover, air from the ventilation system is directly discharged onto balconies and the corridor on every floor, instead of the designated discharge method. Corridors on all floors and basement floors lack fresh air, giving residents a feeling of suffocation. The quality of this building’s services is too bad. Corridors and elevators are always busy, the smell of garbage permeates residential areas as waste is not moved out regularly, and basement B1 still has construction waste. All these problems have been noted and sent to the developer and the local authorities via documents, but residents have not receive a response yet. The representative of residents said that if MBLand Holdings does not deign to issue feedback or resolve the issues after receiving the third complaint letter, they will resort to stronger action to claim their legitimate rights after they have spent billions of Vietnamese dongs for these “premium apartments.” Earlier, on May 9, another project of MBLand Holdings JSC, MB Grand Tower on Le Van Luong street caught fire. The fire started at the technical room and eight fire engines were sent to the scene. Fortunately, the tower had yet to be put into operation and the fire did not have any casualties. First ’Sơn La Longan and Safe Farm Produce Week’ kicks off at Big C Hà Nội Customers buy Sơn La longan at Big C Thăng Long Hà Nội.  The ‘Sơn La Longan and Safe Farm Produce Week 2018’ officially kicked off at Big C Thăng Long (Hà Nội) on July 21, hosted by the Sơn La People’s Committee. This is the first time the provincial authority in cooperation with Big C and Central Group Vietnam have organised such an event to introduce and promote the consumption of safe agricultural products, especially longan, from Sơn La Province. Twenty kiosks are divided into three groups including Sơn La-brand produce, vegetables and fruits, and processed food products. Among them are many products certified VietGap and GlobalGAP such as longan, mango, avocado, Mộc Châu banana, green gourd, red dragon fruit, cabbage, tomatoes, garlic and green peas. Vũ Đức Thuận, deputy director of the provincial Department of Planning and Investment and Investment Promotion Centre, said that Sơn La Province has maintained 15 safe longan production areas, with 5,000 tonnes of products certified by VietGap, of which 1,500 tonnes are granted exportation codes to the United States, Australia, Japan, South Korea and ASEAN members. In 2017, the province had nine products granted Trademark Registration Certificates. This year, it will continue to build and develop brands for 12 products. “Sơn La Province hopes through Big C outlets, safe farm produce of Sơn La Province in general and its brand products in particular will be widely known in the country and abroad. The increases in production and consumption will help improve incomes and livelihoods for ethnic minority people in the locality,” Thuận said. The organiser set up a special stall to introduce off-season vegetables from Vân Hồ District in the framework of the community livelihood programme ‘Support Farmers in Vân Hồ District, Sơn La Province’ funded by the Australian Centre for International Agricultural Research (ACIAR) and Central Group Vietnam. The event will last until July 27.  VNN