BUSINESS NEWS IN BRIEF 28/8 Conference seeks ways for investment promotion in Quang Binh An investment promotion conference in the central province of Quang Binh was convened on August 28, focusing on presentations of the province’s potential and investment opportunities. Present at the conference were Prime Minister Nguyen Xuan Phuc and more than 800 delegates from among the leaders of ministries and departments, along with representatives of embassies, Lao provinces, commercial banks, associations, international organizations and businesses. Participating domestic and foreign organizations and businesses, through the conference, discussed investment and trade opportunities with local authorities.  The event is expected to serve as a platform for the handing over of investment registration certificates and cooperation deals to 66 projects with a combined registered capital of US$7.34 billion. Earlier, the provincial People’s Committee held a series of sideline activities, including investment promotion conferences in the Philippines and Singapore and a meeting with potential investors in Hanoi. According to Tran Tien Dung, vice chairman of the provincial People’s Committee, many investors see Quang Binh as a potential destination for their investment projects and many of which have already been underway in the locality. A great deal of local effort has been taken to introduce incentive policies so as to draw greater numbers of investors, he noted. $60 million stainless steel plant is to be constructed in Quảng Trị The central province of Quảng Trị has licensed domestic firm Việt Quang Limited Company to build a stainless steel plant with total investment of US$60 million. Late last week, local authorities investigated a site in the province’s South East Industrial Park and granted the land plot to Việt Quang. The plant will occupy 31ha of land in the industrial park located in Hải Lăng District. Local authorities asked the company to finalise their plans to issue a report soon for the construction planned to commence in the first quarter of the year 2019. Local departments of environment and natural resources, and agriculture and rural development will work closely with the company to identify the total amount of agricultural and forest land that will be lost for the plant’s construction, as well as the project’s possible impacts on agriculture and nature. Quảng Trị formed the South East Industrial Park in 2015 on a total area of 23,792ha, occupying farming land and land in the coastal protected forest in the three districts of Gio Linh, Triệu Phong and Hải Lăng. The park has remained almost entirely empty.  Ghost Month no longer a real estate horror      Property transactions have not been beset by the usual gloom during this year’s “Ghost Month”, reflecting changing attitudes among both local developers and home buyers. The seventh month in the lunar calendar is known as the Ghost Month in Viet Nam and some other Asian countries. It is believed to be a period of bad luck. During this month, people often avoid making important decisions like home purchases while real estate investors are also afraid of launching their products. The housing market during the Ghost Month is usually bleaker than other months of the year. But this is starting to change. Some property firms in HCM City believed that the Ghost Month has seen the highest number of transactions. Nguyẽn Nam Hièn, a representative from a real estate company in HCM City, said the seventh month in the lunar calendar traditionally has been a difficult period for many businesses. For this reason, property firms have not offered their products for sale during this month. But the month has been an opportunity for those developers which have not hesitated to launch their projects. He said that his company has had the highest housing sales during the Ghost Month in recent years in both apartment and land segments. They are offering a land project for sale in southern Dòng Nai Province’s Long Thành District. The number of successful transactions at the project has been high so far, he added. Nguyẽn Thanh Huong, general director of a real estate company in the city, said her firm has offered special promotions to home buyers during the month. For that reason, the number of property transactions has been high at the company. Huong affirmed that the Ghost Month is only a psychological factor. If businesses have a willingness to bring valuable products to customers, they can have a profitable and successful month. Le Hoàng Chau, chairman of HCM City Real Estate Association agreed, saying that the customers’ psychology in buying real estate is more open than before. The seventh month of the lunar year no longer seems to weigh on people. “People who buy estate products for investment purposes often do not care about the psychology but about opportunities. Meanwhile, property developers often launch products with good prices during the month, pushing investors to pour money into buying estate products,” Chau said. Nguyen Van Dinh, vice chairman of the Viet Nam Association of Realtors (VARs), said the market in recent years has been less affected by the tradition of avoiding the Ghost Month than in previous years. The transactions therefore were quite stable while investors are still offering housing products for sale as scheduled. VN firms told to learn from Hong Kong      Vietnamese companies can learn from their Hong Kong counterparts about doing business on an international level at the “In Style Hong Kong” trade promotion next month and leverage that knowledge to expand globally, a media briefing on the event heard in HCM City on Thursday. Organised by the Hong Kong Trade Development Council (HKTDC), the fourth edition of Hong Kong’s biggest overseas trade promotion will be held in HCM City on September 20 and 21. It is the first time the event will be held in Viet Nam after earlier events in Indonesia, Thailand and Malaysia. According to Peter Wong, HKTDC regional director of Southeast Asia and South Asia, Hong Kong has many advantages such as being named the freest market in the world for 24 consecutive years by Washington DC-based think-tank Heritage Foundation, an international financial hub and located close to four key Asian markets. It is very easy to set up new businesses there and the tax system is simple without VAT and sales taxes, he said. Hong Kong has vast knowledge and experience of doing business in mainland China and other international markets, and can play the role of trade facilitator and offer the platforms for Vietnamese businesses to enter global markets. The two-day trade promotion will feature a wide range of activities including a full-day symposium on business services with a focus on cross-border logistics and creative branding and design. Tina Phan, Indochina director of HKTDC, said the symposium is expected to attract around 1,000 Vietnamese businesses. Besides, there will be an expo showcasing a wide array of branded and designer-led lifestyle products from Hong Kong companies, who will be hoping to tap into new business opportunities in Viet Nam and nearby countries. According to HKTDC, Viet Nam is Hong Kong’s largest export market among ASEAN member countries and sixth largest export market globally, with exports to the country amounting to US$10.2 billion last year. Viet Nam is Hong Kong’s 10th largest trading partner. Wong said trade between Hong Kong and Viet Nam is increasing and would expand further in future with the newly-signed Hong Kong-ASEAN Free Trade Agreement. It takes effect on January 1 next year, allowing both economies to enjoy freer trade in goods, services and investments. Wong told Viet Nam News that Viet Nam has a good record when it comes to stability compared to some of its neighbours and that is a great advantage in attracting foreign investors. The stability and commitment of a government are most important for investors, he said. “If [two] countries have the same opportunity, of course people will go to a more stable and more committed country because the risk will be lower.” But at the same time the Vietnamese Government should do more to convince investors their rights and interests would be protected, he added.  Experts discuss shrimp demand      Viet Nam’s supply capacity to 2025 to fulfill global shrimp demand is sufficient but the industry still faces challenges, speakers said at a conference held on Thursday in HCM City. Ho Quang Luc, former chairman of the Viet Nam Association of Seafood Exporters and Producers (VASEP), noted that Viet Nam has a large area of 700,000ha for shrimp farming. “Due to favourable weather, Vietnamese farmers can raise shrimp all year round,” he said, adding that local farmers’ skills exceed the global average. “Viet Nam also has great processing potential, with nearly 100 shrimp processing factories, generating about 500,000 tonnes of products every year,” he added. Despite its potential and support from the Government and Ministry of Agriculture and Rural Development (MARD), shrimp farmers still face poor infrastructure, low-quality shrimp breeders and high farming costs, among others. “It is necessary to have a detailed farming plan, adequate investment in infrastructure, a national parent-shrimp production programme, and strict control of the shrimp supply system,” Luc recommended. Hoang Tung, an expert at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in Australia, addressed issues surrounding the Government plan that targets all steps of the value chain and an export turnover target of US$10 billion in 2025. Tung said the Government should place emphasis on higher-quality inputs, improvement of farming and harvesting, and innovative business models. This would ensure higher productivity, lower production costs and increased domestic consumption, he said. Tung hoped that the Lower Mekong Initiative, which aims to transform the livelihoods of 10,000 households via more sustainable shrimp farming between 2019 and 2029, would be carried out efficiently. The initiative is a collaborative project between CSIRO, MARD and the Ministry of Science and Technology. Experts at the conference also spoke about the world shrimp market and the gap in supply and demand, consumption trends, competitiveness of Vietnamese shrimp in the EU market, and analysis of export competitors. This conference is part of the Viet Nam Fisheries International Exhibition 2018, being held in HCM City from Tuesday to today.  Thai property giant Sansiri to offer its products in Viet Nam      Thai real-estate developer Sansiri Public Company Ltd on Thursday announced an exclusive strategic partnership with Hong Kong-owned real estate agent Denzell Vietnam. Denzell opened its first Vietnamese office in HCM City on the same day. Through the tie-up Viet Nam-based clients can invest in Thailand, where Sansiri has prominent projects in resort hotspots like Hua Hin, Phuket, Pattaya and Chiang Mai and in the capital Bangkok. They would also provide after-sales services, the two said. Last year, Sansiri’s overseas revenues were worth VND6.5 trillion (US$285 million). This year, it has laid out an aggressive plan to launch 31 new projects worth VND44.2 trillion ($1.9 billion) and achieve sales of VND35 trillion ($1.5 billion). Sansiri said Viet Nam is one of the most attractive overseas markets for international businesses. HCM City is the sixth international market it has entered and offers comprehensive services. Apichart Chutrakul, its CEO, said: “With the rise of interest in Thai property in APAC and the strategic partnership with Denzell Vietnam, we want to further build on our success in HCM City as Thailand’s No1 developer. “Our partnership with Denzell Vietnam is our commitment to providing strong after-sales support to our clients through a dedicated team and to better understand our evolving customer needs. “In the long term Sansiri is well-placed to realise its vision of creating a leading portfolio and deliver next-generation living experiences to our customers.” Thailand is now considered a better option to invest due to lower taxes, average prices starting at VND3 billion ($131,000) and rental yields of 6 per cent in Bangkok city centre and 7-8 per cent in holiday resort areas. Kingston Lai, CEO of Denzell Vietnam, said the partnership gives his company exclusive access to Sansiri’s latest projects. Denzell has offices in Hong Kong, Thailand and Viet Nam.  Traceability of goods key to firms      The traceability of goods is crucial to firms’ production and trading activities, but public awareness of the importance of traceability remains low, said Deputy Minister of Industry and Trade Dang Hoang An during a seminar held by the Ministry of Industry and Trade (MoIT) on Friday in Ha Noi. In the traceability system, the origin-tracing stamp is regarded an important factor which identifies and tracks a product unit in the supply chain, the responsibilities of the parties involved in the production, packaging and distribution phases, An said. This helps to link data and access information throughout the supply chain, An said. In Viet Nam, product traceability is relatively new but has been implemented rapidly. The use of origin-tracing stamps is becoming more and more common, thereby enhancing consumers’ trust in products, he added. According to An, Vietnamese enterprises, especially small and medium-sized enterprises, are still unaware of the method and find it hard to develop the system of traceability for their products. Amy Guihot, an agricultural counselor from the Australian Embassy in Ha Noi, said product traceability is an important part of the Australian food management system for both domestically-consumed and export food. Therefore, for food processing enterprises, traceability must determine the origin of all inputs such as raw materials, additives, ingredients and packaging methods. Traceability also provides information such as the name and address of the suppliers, the date of delivery, shipment details, quantity of the product upon delivery, Guihot said. Dang Thi Phuong Ninh, general director of the Duyen Hai Economic Development Company (COFIDEC), said more and more agricultural products from Viet Nam were being exported to the world market. Traceability was thus an important foundation for creating a secure supply chain to gain the importers’ trust and loyalty. COFIDEC applies traceability technology for 100 per cent of its 5,000 tonnes of processed agricultural and aquatic products in 2018. Since then, COFIDEC has gradually gained trust and loyalty from the big customers in Japan and South Korea. Ninh said the fourth industrial revolution has fundamentally changed business and management models with many advanced technologies and practical applications such as cloud technology, blockchain and hardware devices and control chips. With that advantage, the application of the achievements in the 4.0 revolution in traceability will become a major trend. In the future, COFIDEC will implement an electronic traceability system for the whole supply chain to achieve sustainable development. HCM City opens 7th safe farm produce market      The HCM City Department of Agriculture and Rural Development opened a safe farm produce market at the District 2 Children’s Cultural House on Friday, the seventh in the city. Each market, held on Fridays, Saturdays or Sundays, has 20-30 co-operatives and farms taking part and selling fruits and vegetables, poultry, pork and seafood. Around 500-700 people shop at each market every week, it said, adding that exhibitors also sign supply agreements with canteens and restaurants. According to the department, only products with food safety certificates such as VietGap and GlobalGap can take part. The fair organisers regularly check the quality of produce and randomly test fruit and vegetable samples for plant protection residues, it said. The department opened the first market in August 2016 at Dong Ho Restaurant in District 10. The other five markets are at Le Van Tam Park in District 1; Le Thi Rieng Cultural Park in District 10; Tan Binh District Sport and Cultural Centre; Quarter 6, Street No 19, in Binh Tan District’s Binh Tri Dong B Ward; and Binh Phu Park in District 6. According to the department, the markets are meant to help producers of safe farm products market and sell their products and enable consumers to buy safe products with clear origins.  Vinacomin aims to produce 41 tonnes of coal in 2019      The Viet Nam National Coal and Mineral Industries Group (Vinacomin) aims to produce and sell 41 tonnes of coal in 2019, posting a 10-15 per cent year-on-year increase. Vinacomin said the group this year planned to reach an output of 39 tonnes of coal. To reach the target, Vinacomin would review and rearrange the production ability of its member companies to make appropriate plans. This includes 34.2 million tonnes of clean coal by the year-end, up 1.32 million tonnes from last year. The group produced over 20 million tonnes of coal, including 19.3 million of clean coal, in the first seven months of the year. During that time, it has sold approximately 22 million tonnes of coal, 3.8 million tonnes more than the same period last year. It also fired or laid off around 3,000 labourers over the same period. Vinacomin said it would increase ownership rate at its four member companies including Cao Son, Coc Sau, Ha Tu and Mong Duong to prepare for consolidation of some pit coal mines in 2019-20. The group said it has implemented a restructuring project for the 2017-20 period. It completed consolidation of two mining construction companies 1 and 2 into the TKV Mining Construction Company, merging Hong Thai Coal Company into Uong Bi Coal Company and Hon Gai Logistics Company into Hon Gai Coal Company. The group has implemented the first step to restructure labour and assets to merge the Red River Delta Coal Management Project into the Institute of Mining Science and Technology. It would also privatise two member companies, divest capital at six other companies and sell shares at another six units. It submitted a plan to the Ministry of Industry and Trade for the parent company’s privatisation following a roadmap approved by the PM.  Trade Promotion Centre for Agriculture accused of overcharging A company in the northern province of Bac Giang has accused the Vietnam Trade Promotion Centre for Agriculture of overcharging exhibition stall rental and electricity fees for its stalls. Giang Son Joint Stock Company in Yen The District, Bac Giang Province, has sent a petition about the case to Prime Minister Nguyen Xuan Phuc and related ministries and agencies.  According to the company, the centre located in Hanoi applied the stall rental fee of VND100,000 (USD4.54) per square metre in the 2012 - 2016 period. During the time, the electricity fee was VND4,600/kWh. In 2017, these fees were suddenly increased sharply to VND200,000-240,000 (USD9.09-10.90) per square metre. The firm’s director Nguyen Thi Tam said the firm had to pay around VND7 million (USD318.18) for the stall and store rental per month in 2017. The fees have been continued this year, meaning that the company has to pay an additional fee of VND39 million (USD1,772) for the whole year compared to the level of 2017. Due to the high fees, the company’s fee payment has been late, so, the centre has cut electricity for its stalls and stores, spoiling products. Giang Son JS Company estimated losses of around VND100 million (USD4,545) due to the damaged products. Meanwhile, some rooms at the centre have been leased to services which are not related to the agricultural sector such as yoga. Speaking to DTiNews, Hoang Van Du, the centre deputy director denied what the company said in the petition. He added that over the past two years, Giang Son JS Company often failed to meet their contractual obligations signed with the centre. The firm also violated food safety regulations. The centre contacted Giang Son JS Company many times for payment, but the company ignored this. To date, the company still owed the centre VND28.4 million (USD1,272). Du highlighted that the centre used a vacant room for a yoga class which is for its staff members. Rice exporters told to meet Chinese quality requirements as shipments slump       Rice bags are loaded into a vessel at a port in HCM City for export.  To sustain their rice exports to China, a large buyer, Vietnamese firms need to focus on meeting food safety and traceability requirements and carry on official instead of border trade, according to experts. According to the Department of Agro-product Processing and Market Development, Viet Nam’s rice exports were estimated at 3.9 million tonnes worth nearly US$2 billion over the first seven months of the year, a year-on-year increase of 12.2 per cent and 29.2 per cent. China continued to be the biggest importer of Vietnamese rice, accounting for 26.8 per cent, followed by Indonesia (18.2 per cent) and the Philippines (10.4 per cent). But exports to China were down 27.7 per cent in volume and 14.6 per cent in value from the same period last year. A total of 891,000 tonnes were shipped, with sticky rice accounting for a large share. In July China raised import tariffs on rice from ASEAN member countries, including to 50 per cent on sticky rice from the earlier 5 per cent. As a result Viet Nam’s exports dropped sharply. Another reason was stricter control by Chinese agencies, which raised the plant quarantine standards for exporters. Nguyen Thi Mai Linh of the Ministry of Industry and Trade’s import-export department said exporters met with certain difficulties after China adjusted tariffs on ASEAN rice. Enterprises said they do not have many new contracts for sticky rice and are mainly fulfilling earlier contracts. They have called on farmers to reduce the cultivation of sticky rice and switch to other varieties to avoid too much dependence on China. Currently, more than 80 per cent of sticky rice goes to China. A spokesperson for a rice export firm said Viet Nam and China share a long-border and so for a long time rice was largely exported through the border. But the Chinese side now wants to control border trade to better manage quality and avoid tax losses and has instructed importers to do official imports, he said. Therefore, to keep this market, Vietnamese firms need to ensure compliance with China’s food safety and traceability requirements, he said. But they should diversify their markets to avoid too much reliance on that market, he said. To help promote exports to China, the Ministry of Industry and Trade has invited 15 rice importers from China to discuss direct exports.  Start-up funding mechanism discussed A workshop under the Vietnam-Finland Innovation Partnership Programme Phase 2 (IPP2) was held in Hanoi on August 24 to discuss funding and finance for creative start-ups. Sharing experiences from Finland, Marko Saarinen, a representative from the Finnish Embassy, said that Finland has created platforms for open and transparent exchanges to promote partnerships with stakeholders. Accordingly, the IPP programme has contributed to supporting policies for small and medium-sized businesses and start-up ecosystems. IPP currently focuses on building resources for programmes, universities, businesses and entrepreneurs in the field of start-up development. Jouko Ahvenainen, an international expert in the IPP2 programme, said that there are many business models and it is difficult to call for initial capital and gain profit immediately. There are many new funding models and technology to support innovative start-ups, and Vietnam had good opportunities to use new technology and models, he said. There are also various financial support sources such as personal sponsors, venture capital funds and fund management companies, he added. However, the financial aid agencies still lack information, which made it difficult to assess the disbursement, he said. Moreover, it is difficult for banks to decide on a loan because they do not have enough information about the businesses. “Therefore, the market needs transparent data sets to reduce risks for investors as risk assessment was important in the decision-making process," said Ahvenainen. Phan Hoang Lan, leader of the IPP2 research group, said that the most important characteristics for investment in start-ups are the risk factor and the unpredictability of investment. Among 10 investment businesses, nine might ‘die’ and nobody is able to predict which businesses will succeed, she said. “Therefore, those who invest in start-ups must be very understanding about starting a business and having money to invest,” said Lan. Therefore, it was necessary to have policies to support and share risks for investors including tax and reciprocal investment policies, Lan said. Lan also said start-up supporting organisations should support businesses at the initial stages and take risks. Secondly, administrative procedures should be minimised for start-ups. The IPP2 programme is a development cooperation programme between the two governments of Vietnam and Finland, implemented by the Vietnamese Ministry of Science and Technology and the Finnish Ministry of Foreign Affairs in the 2014-18 period with a total budget of 11 million EUR (12.7 million USD). Seminar discusses agricultural development alongside renewable energy A seminar discussing the potential of solar power development in tandem with sustainable agriculture production took place in the Mekong Delta city of Can Tho on August 24.  Co-hosted by the Vietnam Sustainable Energy Alliance, the Climate Change Working Group (CCWG), the Green Innovation and Development Centre (GreenID), and Can Tho University (CTU), the event aimed to work out solutions in promoting the development of renewable energy in Vietnam.  Antoine Vander Elst from the European Union (EU) delegation to Vietnam said renewable energy is now more reliable and cheaper than fossil fuel power, contributing to strengthening energy security and creating more jobs.  According to him, there are 2.2 million people working in the field of renewable energy in the EU, spanning 90,000 businesses across 28 countries. He said with a tropical climate, Vietnam has advantages in developing solar and wind power which will improve the competitiveness of agriculture.  Dr. Nguyen Quoc Khanh from GreenID said the use of solar power in food production on a land site will help double revenue, citing that it is similar to the glasshouse model with roofs used for collecting solar power and the land for cultivation and farming, thus saving energy. When the energy collected reaches the point of excess, it could be sold to the national grid to generate a stable income, he said. Assoc. Prof Dr. Le Anh Tuan, Deputy Director of the CTU’s Research Institute for Climate Change, mentioned several sustainable agriculture models using renewable energy which are underway in the Mekong Delta, including the collection and use of solar power for irrigation and automatic pesticide spraying.  In the southernmost province of Ca Mau, farmers are able to treat waste in shrimp ponds through a biogas process, which protects the local water environment and creates gas for daily use.  In the Mekong Delta province of Dong Thap, the rice-lotus-fish-tourism model uses lighting from solar power to cut costs.  Tuan suggested issuing policies and mechanisms conducive to researchers and pioneering models in order to fully tap into the benefits of renewable energy. Quang Ninh strives to remain top position in PCI ranking The northeastern province of Quang Ninh is sparing no efforts to maintain its top position in the provincial competitiveness index (PCI), said Chairman of the provincial People’s Committee Nguyen Duc Long. Last year, Quang Ninh, for the first time ever, became the most competitive province in the country, topping Vietnam’s PCI 2017, with 70.7 out of 100 points. Long asked provincial departments, sectors, and localities to avoid idleness just because of the results achieved, and instead continue with reforms. He urged that they stay vigilant, finding innovative solutions to achieve the targets set by the Government’s resolution on continuing the implementation of main tasks and measures to improve the business environment and the provincial People’s Committee’s plan issued on April 17. Related agencies and Vice Chairpersons of the provincial People’s Committee should find measures to improve indexes, particularly in terms of transparency, informal expenses, legal institutions, and land access. He urged public centres at all levels to solve administrative procedures as soon as possible. Localities, departments, and sectors were also requested to make information connections to the provincial e-portal to raise publicity and transparency. The leader asked the provincial Business Association to coordinate well with departments, sectors, and localities in implementing measures to improve the business and investment environment and competitiveness, and in supporting startup enterprises and forming industrial clusters. Taking ideas from the PCI, the province launched the Department and District Competitiveness Index (DDCI) in 2015. The index measures the efficiency of economic management of the local government through eight criteria, including transparency, proactivity of leadership, time costs of regulatory compliance, informal charges, policy bias, legal institutions, business support and accountability of leaders. The DDCI was officially implemented in 21 departments and 14 localities across the province in 2016, according to deputy head of the provincial board for investment promotion and support Vu Thi Kim Chi. The programme helps the province identify shortcomings and improve the quality of economic governance of local authorities and departments, Chi said, adding that this creates competition on management quality and aids administrative reform. Furthermore, the DDCI creates a widespread, transparent and reliable channel for businesses and investors to give feedback to local authorities and increases the role and responsibility of the business community in building a local management apparatus. After two years of implementation, the programme has brought positive outcomes. Businesses are required to build annual action programmes on improving investment environment, the PCI and DDCI. The province only attracted 3.39 billion USD in the 15 years from 1986 to 2011. However, foreign direct investment (FDI) poured into Quang Ninh in 2012-2017 exceeded 3 billion USD, raising total foreign investment to the locality to more than 6 billion USD, Chi said. The presence of major investors at home and abroad such as the US, Japan, Singapore and Thailand has created strong momentum for the local economy, she added. The province has taken measures to reform administrative procedures, reduce production costs for businesses and create an environment for them to enhance competitiveness. Every three months, local authorities meet with enterprises to note their opinions and remove bottlenecks. In 2017, the province piloted the implementation of social network analysis in 16 agencies, expanding interaction with the business community, according to Chi. Speaking at a recent conference on evaluating the local Public Administrative Reform (PAR Index), Satisfaction Index of Public Administration Services (SIPAS), and Public Administration Performance Index (PAPI) in 2017, Secretary of the provincial Party Committee Nguyen Van Doc said the province will further its efforts to hasten administrative reform in 2018. “Quang Ninh will continuously work to maintain its position among the top performers of those indexes,” he said. He instructed sectors and branches to press ahead with administrative procedure reforms, enhance the efficiency of public administrative centres, cut unnecessary administrative procedures, complete e-Government apparatus and pay provide training for public servants. The PCI report has been produced annually since 2005 to assess the ease of doing business, economic governance and administrative reform efforts by provinces and cities in Vietnam. The 2017 PCI Report is the 13th iteration and is based on responses from 12,000 enterprises, including more than 10,200 domestic private enterprises from 63 cities and provinces and nearly 1,800 foreign invested enterprises in 21 provinces nationwide. According to the report, Quang Ninh was followed closely by central Da Nang city (70.1 points). The Mekong Delta province of Dong Thap ranked third with 68.8 points. VN’s trade with India sees strong growth      Two way trade between Viet Nam and India experienced a significant yearly increase of 50 per cent to US$6.36 billion over the past seven months of this year, statistics from the General Department of Customs revealed. The positive bilateral trade was mainly due to Vietnamese exports at $3.92 billion, a year-on-year increase of 96 per cent, according to the data. Among major staples, machinery, equipment and parts recorded the strongest turnover with $1.23 billion, up 590 per cent year-on-year and contributing 32 per cent of Viet Nam’s total exports to India. Handsets and components came next at $470 million, up 72 per cent, followed by computers, electronics and parts at $380 million, up 26 per cent, and metal and metal-made products at $353 million, up 40 per cent. Others recording impressive export growth were bamboo-made goods at 1,470 per cent; iron and steel products at 270 per cent; means of transport and components at 170 per cent and products from plastic and rubber at 150 per cent and 100 per cent, respectively. From January to June, Viet Nam imported $2.44 billion worth of goods from India, surging 9.2 per cent over the same period last year, with cotton taking the lead at $320 million, up 44 per cent. Viet Nam resumed its import of maize from India, worth $23 million, a hike of 1,800 per cent while spending $145 million on importing animal feed and raw materials from the market, an increase of 29 per cent. In the period, the Southeast Asian nation also upped its imports of several other goods from India such as metal (up 180 per cent); automobile components (130 per cent); plastic materials (up 110 per cent) and ore and other minerals (75 per cent). Most notably, Viet Nam posted a trade surplus of $1.48 billion with India in the seven-month period. The two countries will explore substantive and practical measures to achieve the bilateral trade target of $15 billion by 2020, according to a joint statement issued during the official trip by Vietnamese President Tran Dai Quang to India in May. “In order to realise potential to both increase the volume of trade and diversify its composition, the two countries’ leaders requested the relevant ministries and agencies on both sides to explore substantive and practical measures to achieve the target including but not limited to utilising established mechanisms, strengthening exchanges of trade delegations, business-to-business contacts, regular organisation of trade fairs and events,” the joint statement said. As per the statement, both sides urged leaders of businesses and industries to explore new trade and investment opportunities in identified priority areas of co-operation.  Finland, VN discuss start-up funding      Viet Nam is becoming an attractive destination for foreign investors in innovative and creative start-ups, attendees said at a workshop in Ha Noi on Friday. The workshop, under the Viet Nam-Finland Innovation Partnership Programme Phase 2 (IPP2), discussed funding and finance for start-ups. Sharing experiences from Finland, Marko Saarinen, a representative from the Embassy of Finland, said that Finland had created platforms for open and transparent exchanges to promote partnerships with stakeholders. Accordingly, the IPP programme has contributed to supporting policies for small and medium-sized businesses and start-up ecosystems. IPP currently focuses on building resources for programmes, universities, businesses and entrepreneurs in the field of start-up development. Jouko Ahvenainen, an international expert in the IPP2 programme, said that there were many business models and it was difficult to call for initial capital and gain profit immediately. There were many new funding models and technology to support innovative start-ups, and Viet Nam had good opportunities to use new technology and models, he said. There were also various financial support sources such as personal sponsors, venture capital funds and fund management companies, he added. However, the financial aid agencies still lack information, which made it difficult to assess the disbursement, he said. Moreover, it was difficult for banks to decide on a loan because they do not have enough information about the businesses. “Therefore, the market needs transparent data sets to reduce risks for investors as risk assessment was important in the decision-making process," said Ahvenainen. Phan Hoang Lan, leader of the IPP2 research group, said that the most important characteristics for investment in start-ups was the risk factor and the unpredictability of investment. Among 10 investment businesses, nine might ‘die’ and nobody is able to predict which businesses will succeed, she said. “Therefore, those who invest in start-ups must be very understanding about starting a business and having money to invest,” said Lan. Therefore, it was necessary to have policies to support and share risks for investors including tax and reciprocal investment policies, Lan said. Lan also said start-up supporting organisations should support businesses at the initial stages and take risks. Secondly, administrative procedures should be minimised for start-ups. Te IPP2 programme is a development co-operation programme between the two governments of Viet Nam and Finland, implemented by the Vietnamese Ministry of Science and Technology and Finnish Ministry of Foreign Affairs in the 2014-18 period with a total budget of 11 million euros (US$12.8 million). Forum calls on VN supporting industries to get a move on      Businesses in supporting industries need to further improve their functioning and establish close ties with each other and official agencies to enter multinational supply chains, delegates told a forum in HCM City on Thursday. Dinh Thi Bao Linh, deputy director of the Viet Nam Industry and Trade Information Centre, said supporting industry, which refers to making accessories, components and others used in manufacturing, has received special attention from the Government since it is the foundation for development of many other industries. Yet the rate of locally sourced parts remains modest, she said. Do Thi Thuy Huong, a member of the executive board of the Viet Nam Electronic Industries Association (VEIA), said the electronics industry has developed strongly in recent years with exports rising every year. The development of the sector is mainly thanks to the large investments made by multinational companies, especially from Korea and Japan, in the production of both final products and components, she said. Local firms have a small market share, she said. Le Nguyen Duy Oanh, deputy director of the HCM City Centre for Supporting Industries Development, spoke about the city’s efforts to back supporting industries, including programmes to connect local suppliers with foreign-owned and local manufacturers and foreign partners. “Samsung hopes to have 50 Vietnamese suppliers by 2020, so local firms should link up and standardise their production process to participate as the Korean company’s vendors,” she said. Nguyen Duc Minh, director of Viettronics Phu Tho Hoa, spoke about his company’s experience in seeking businesses partners as well as its process of becoming a Samsung supplier. Suttisak Wilanan of Thailand-based Reed Tradex Company, one of the forum’s organisers, said: “The global industry is changing to a new era of manufacturing capabilities, the direction of markets will not be the same since the digital technologies are taking over the way we produce and consume a variety of goods.” The rising demand for integrated and advanced technologies is driving supporting industries to overhaul their manufacturing processes to catch up with the global supply chain, he said. “We see huge potential in Viet Nam, where a number of major manufacturing bases are located and where skilled engineers, technicians and workers have gathered. “What’s more, Vietnamese are precise and highly skilled, and, most importantly, perseverance is deep-rooted in their work philosophy. That is the reason I believe Viet Nam will become one of Asian’s manufacturing hubs in years to come.” The forum was held as part of pre-activities for NEPCON Vietnam, an exhibition on SMT, testing technologies, equipment, and supporting industries for electronics manufacturing to be organised next October. Held by Reed Tradex and VEIA, the forum was titled “Development of supporting industries – the foundation for the sustainable growth of Viet Nam’s electricity and electronics industry.” VNN