finance & business news 26 December

FINANCE ...... 1 Japanese, Thai goods reach every corner of Vietnamese market 36 Reference exchange rate continues to go down 1 Ever upwards 36 Foreign exchange reserve sets a new record 1 Quang Ninh needs more luxury tourism products 39 Remittance to HCM City to top $5.2bn in 2017: cbank 2 Infrastructure lifts south HCM City property market 40 Cash payments targeted at below 10pct in 2020 2 Curiosity piqued 41 Bond market gets a promising start 3 Denmark and Vietnam sign energy development Is Bitcoin a game for desperadoes? 4 partnership for 2017-2020 43 Consumer credit: high interest rate is a 'double-edged sword' 5 BIZ NEWS...... 43 SBV urged to amend regulations to back real estate market 6 Business Briefs 26 December, 2017 43 Many banks complete whole year profit target early 7 VN Index gains lightly, signaling more volatility 44 Higher profits make it easier for banks to raise capital 8 Shares mixed, market cap hits 74.6pct GDP 45 E-banking in Vietnam is still treading water 8 VN shares up slightly on financial, energy stocks 46 Banks pursue sustainable growth 9 Stocks set to rise further in last week of 2017 46 SBV wants ATMs to run efficiently before Tet 10 Saigonres to debut on HOSE 47 Management of consumer finance companies to be tightened 10 Becamex IDC to auction leftover IPO shares 47 Pouring capital into 'king' stocks 11 PV Power to launch IPO in January 2018 48 Banking stocks to drive market higher, experts say 12 Song Da Corporation reports pathetic IPO 49 NAPAS collaborates with DFS in card switching 13 VNPT to auction shares in five companies 49 Agricultural insurance guarantees productivity 13 ThaiBev submits official report on Sabeco acquisition 50 SHB sells brokerage arm SHBS 14 Dung Quat IPO expected to bring in $176 million 51 Foreign funds flock to grab HDBank stocks 14 Certain fruits and vegetables at home still unsafe 52 New FDI approvals highest since 2009 15 VN bans dirty diesel cars starting January 1 52 Treasury reports strong fiscal year 16 Vietnam, China set up 'golden' logistics corridor 53 Seafood exports grow sharply 17 Biotechnological products seek markets 53 Rice exports beat low expectations in 2017 18 U.S is the most visited country by Vietnamese people in 2017 53 Garment-textile export earnings likely to hit 31 billion USD 19 Sabeco sale to fund infrastructure 54 Dong Nai to export more pepper to Europe in 2018 19 Fitting together 54 Pepper producers warned of difficult period ahead 19 More than $500mn in loans provided via Tima Financial 56 Vietnamese steel makers in battle against steep US import Japan's Mitsubishi Group invests in HCM City's green property 57 duties 20 Ninh Thuan: Work begins on hi-tech animal feed production plant 57 Hanoi's industry sector targets 8pct growth for 2018 21 Can Tho builds industrial park for Japanese investors 57 Switzerland imports over 50pct shrimp from VN 22 VinMart+ opens 15 stores in Vung Tau 58 Vietnamese-Korean trade celebrates quarter century milestone 22 Ninh Thuan: Feed processing factory construction kicks off 58 State divests capital from industrial parks 23 Vinacomin targets 36 million tonnes of coal consumption in 2018 59 ICT revenues exceed VND2,100 trillion 25 BSR targets over VND3.47 trillion profit next year 59 530 SOEs equitised in the last five years 26 Mobile World nears profit goal 60 National Strategy on Green Growth integrated into local VNPT wants to sell finance subsidiary for VND500b 60 development 26 Jeju Air to open route to Da Nang in early 2018 61 Forthcoming Labour Code amendments help cut business costs 27 FLC to invest 1.5 billion USD in hi-tech farm 61 MoIT announces next batch of hot M&A opportunities 27 Deloitte Vietnam again among Most Sustainable Businesses 62 Condotel oversupply due to massive investment 28 Uber threatens to take tax department to court 62 MA in real estate sector to increase in 2018 29 Vietnamese restaurateur makes 'pho'-nomenal comeback 63 A modest end to 2017 transactions sets up big for 2018 29 New PetroVietnam chair named 63 Foreign firms taking control of Vietnamese M&A market 31 Da Lat market hi-tech farming models, produce 64 Vietnam tourism lags behind other Asean nations 32 Products for smart city, 4IR win ICT awards 64 Shoe industry gears up to go hi-tech 33 International fashion fair kicks off in Hanoi 64 Vietnam instant noodle market controlled by three big brands 34 Vietnamese conglomerates fall into Thai hands 35 FINANCE FINANCE Reference exchange 26/DEC/2017 INTELLASIA| VNA rate continues to go The State Bank of Vietnam continued to adjust the daily reference exchange rate down for down the second day in a row on December 26, to 22,425 VND/USD, a reduction of 5 VND from Intellasia the previous day. Tel: +844 2213 2244 No. 21, lane 173/63/17, Ngoc Ha Ward, Ba Dinh Dist, Hanoi Fax: +844 3759 2034 © All Rights Reserved Email: [email protected] Websites: www.Intellasia.Net www.TriTueAChau.com Vietnam finance & business 26 December

With the current trading band of/-3 percent, the ceiling rate applied to commercial banks during the day is 23,088 VND and the floor rate 21,752 VND/USD. The opening hour rates at major commercial banks saw only slight changes. Vietinbank adjusted both rates down by 5 VND to 22,675 VND/USD (buying) and 22,745 VND/USD (selling). Meanwhile, the rates remained the same at Vietcombank and BIDV. Vietcombank listed the buying rate at 22,675 VND/USD and selling rate at 22,745 VND/USD, unchanged from December 25. The greenback is being bought at 22,680 VND and sold at 22,750 VND/USD, the same as on the previous day. https://en.vietnamplus.vn/reference-exchange-rate-continues-to-go-down/ 123895.vnp

Foreign exchange 26/DEC/2017 INTELLASIA| TIEN PHONG

FINANCE reserve sets a new On the evening of December 21, at the 26th anniversary of the establishment of Sai Gon record Thuong Tin Joint Stock Commercial Bank, Governor of the State Bank of Vietnam (SBV) Le Minh Hung said Vietnam's foreign exchange reserve reached nearly $48 bil- lion, the highest level ever. This is a very impressive figure that makes great contribution to the stabilisation of the macro economy, building trust for the community of investors, especially foreign in- vestors, in the economy as well as the policy of the government and the banking sys- tem. Reportedly, from the beginning of the year to the end of December 8, SBV bought an- other $7 billion. Also at the ceremony, Le Minh Hung added that the banking sector has carried out its mission of providing credit in a safe and healthy way to the economy to support growth. The governor asserted that in 2017, the banking sector adjusted monetary policy to achieve macro-control, keep inflation low, operate policy tools to maintain stable li- quidity, stabilise interest rates and reduce lending rates, bringing credit to the priority areas of production and business. Besides, the whole system including Sacombank made efforts to restructure, handle bad debt, and apply international standards in operation strongly.

Remittance to HCM 26/DEC/2017 INTELLASIA| VNA City to top $5.2bn in There has been a steady rise in inward remittances over the final months of 2017 2017: cbank HCM City is forecast to receive a total inward remittance of around $5.2 billion in 2017, according to reports by the local branch of the State Bank of Vietnam. This translates to an expected rise of 4.5 percent from 2016, said Nguyen Hoang Minh, deputy director of the central bank's HCM City branch. As 2017 approaches its end, the flow of inward remittances to the southern hub has surged roughly 1.5 times compared to the earlier months of the year, Minh said. Between January and September, the city received $375-400 million per month in re- mittances on average. This number spiked to $600 million in October and topped $650 million in November, Minh cited statistics acquired by the central bank. Over the January-November period of 2017, a total of $4.55 billion in inward remit- tance flowed into HCM City. If the trend is to persist, the city is expected to receive at least $650 million in remittanc- es in December, putting the end of the year total at around $5.2 billion. Over 60 percent of HCM City-bound remittances come from the US, while Europe is the second-largest source, at over 19 percent. According to reports by the local branch of the State Bank of Vietnam, 72 percent of the remittances were spent on production and ventures, while 22 percent were poured into real estate. The remaining six percent were used for personal purposes.

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As the State Bank of Vietnam continues to regulate zero-percent interest rates on US dollar savings for both individual and corporate clients as an anti-dollarisation effort, many recipients of remittances now exchange the dollar for the dong to deposit for bet- ter rates, Minh pointed out. https://tuoitrenews.vn/news/business/20171224/remittance-to-ho-chi-minh-city-to- top-52bn-in-2017-cbank/43295.html

Cash payments 26/DEC/2017 INTELLASIA| THE SAIGON TIMES targeted at below The proportion of cash payments in all transactions is to be brought down to below 10 10pct in 2020 percent as per the non-cash payment scheme towards 2020 announced by the govern- ment, Thanh Nien newspaper reports. The entire market will have at least 300,000 POS terminals with the number of transac- tions to reach 200 million a year. All supermarkets, shopping malls, modern distribu- tion facilities and State Treasury offices will be equipped with POS terminals.

FINANCE As shown in a report of the central bank, the ratio of cash to total means of payment dropped from 19.02 percent in 2005 to 14.02 percent in 2010 and 11.45 percent last Au- gust. Thus, the target to reduce it to less than 10 percent looks achievable. In addition, the use of bank cards is on the rise, with stable growth in card issues, vol- umes and transaction values. As of last September, the accumulated number of cards exceeded 127 million (up 5.5 million cards against last June), while there were 17,396 automated teller machines (ATM) and 260,187 POS terminals nationwide. The market has 76 suppliers of payment service via the Internet and 39 suppliers of mobile pay- ment. Some regulations to become effective in the near future require payments via bank ac- counts such as the central bank's draft document concerning capital disbursement at credit institutions. But in reality, some enterprises still shy themselves away from bank transfer due to transfer costs. As for restaurants and shops, they are not yet interested in having POS terminals due to the fact that they have to pay a fee of 1.5-2.5 percent. According to financial experts, there should be policies encouraging non-cash pay- ments, especially low card and POS fees for both users and those accepting cards. Bui Quang Tin, a financial expert, was cited by Thanh Nien newspaper as saying that the target of having cash payment below 10 percent of total payments in 2020 is attain- able thanks to increasing numbers of POS terminals and ATHowever, certain individ- uals and enterprises do not want to make payments via banks for fear of having their information known to management units. The use of cash out of total payments in Southeast Asian countries ranges between 11 percent and 17 percent. Meanwhile, a much lower proportion is recorded in European countries, such as below 1 percent in Sweden and Norway. http://english.thesaigontimes.vn/57695/Cash-payments-targeted-at-below-10-in- 2020.html

Bond market gets a 26/DEC/2017 INTELLASIA| VIR promising start More firms in Vietnam are turning to bonds for funding, but experts believe that the Vietnamese corporate bond market has a long way to go before it can attract foreign investors. Rising popularity As the year comes to an end, Vietnamese companies are issuing bonds left and right, signaling a busy season for the domestic bond market. Leading electronics retailer Mo- bile World Corporation recently raised VND1.135 trillion (US$51.6 million) from five- year bonds, with the annual interest rate fixed at 6.55 percent. The issuance was guar- anteed by Credit Guarantee and Investment Facility, a trust fund of the Asian Devel- opment Bank. Another major issuer is state-owned lender VietinBank, which issued 220,000 bonds in late November to raise VND2.2 trillion (US$97 million). Prior to this sale, the bank suc- cessfully collected VND2 trillion (US$88.2 million) from its first batch of bonds in late

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October. All of the bonds have a 10-year maturity term, and the annual rate will be 1.2 percent higher than the average interest rate at major banks. At the same time, fellow lender VPBank issued two-year bonds worth VND3 trillion (US$132.3 million), with interest rates fixed at 6.7 percent. Leading brokerage Ho Chi Minh Securities also went forward with a plan to collect VND800 billion (US$35.2 mil- lion) from one-year bonds, at 9 percent interest. Other major securities firms such as Saigon Securities Incorporation and Viet Capital Securities are also asking for shareholders' approval to release bonds. Both firms cite the need to fund end of the year business activities and restructure their debts to enjoy lower interest rates. In the international market, Cuu Long Pharmaceutical JSC raised $20 million of USD- denominated bonds for the Republic of Korea (RoK)-based Rhinos Asset Management. These bonds, charged at 1 percent of interest rates, are convertible to stocks after one year. Rhinos Asset Management previously bought similar bonds in major construc- tion firm Ho Chi Minh Infrastructure Investment JSC. FINANCE In response to the growing corporate bond market in Vietnam, the Ministry of Finance is making adjustments to Decree No. 90/2011/ND-CP regarding corporate bond issu- ance. The draft bill has garnered in-depth discussions from market participants, who focus on issues such as the profitability of issuers, repayment abilities, and information disclosure requirements. A long road ahead Industry experts welcome the increasing popularity of corporate bonds, stating that it opens a new funding source for companies in Vietnam besides bank loans and stocks. For investors, bonds also provide necessary diversification for their portfolio, together with consistent interest rates and lower risks than stocks. However, the reality is that 75 percent of corporate bond buyers in Vietnam these days are commercial banks, which makes these bonds no different from bank loans. Bui Quang Tin, professor at the Ho Chi Minh Banking University, noted that some compa- nies sell bonds to banks to restructure their existing loans rather than raise new capital, which defeats the original purpose of bond issuance. "Outside investors, especially individual investors, usually have no access to the firm's business activities. Vietnam doesn't have an independent credit rating agency, which makes bond investment here very risky, as investors don't know which issuer can pay back their bonds," said Tin. To attract more international investors, the professor suggested setting up a credit rat- ing agency similar to major international ones like Moody's or S&P, as well as diversi- fying bond offers to the market. Nguyen Thi Thai Thuan, general director of VinaWealth Fund Management JSC, told VIR in a recent interview that most investment funds in Vietnam hold government bonds and "just a few corporate bonds of major businesses," as there is still very little secondary trading for corporate bonds. "The stock market is growing very fast, making it attractive to investors for the time being. However, fixed income products like bonds provide safety and lower risks, which is why I hope the legal framework will soon be finished, to pave the way for more corporate bond issuers," said Thuan. In a guest article for VIR, Dr Christian Kamm from Kamm Investment Inc. also noted that foreign investors hardly consider buying corporate bonds in Vietnam because the options are too limited. However, they are likely to be more willing to do so if bonds are available on the mar- ket, supported by an up-to-date legal framework, strong accounting standards, and a transparent clearing process, Kamm said. He added that the Asian monetary crisis of 1997 was partially a result of large bank borrowings and the absence of a bond market. A vibrant bond market would ease pressure on Vietnam's commercial banks, which are still recovering from the bad debt nightmare. "A developed bond market provides a market-driven and market-determined interest

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rate, for which firms can determine a realistic cost of capital for their investment and expansion," Kamm said. He believed that Vietnam should collaborate with international partners to develop the bond market, starting with a credit rating agency. http://english.vov.vn/market/bond-market-gets-a-promising-start-365368.vov

Is Bitcoin a game for 26/DEC/2017 INTELLASIA| VIR desperadoes? Bitcoin, one of the most talked-about phenomena in the financial services sector, has been ceaselessly brought into the limelight due to its ambiguity regarding the face val- ue as well as the potential legal and regulatory risks challenging Bitcoin "whales." Over the course of 2017, the crypto-currency witnessed an escalation in price, reaching the shocking rate of $20,000 per bitcoin. Speaking at a recent Bitcoin-themed talk show, Truong Thanh Duc, chair of BASICO Law Firm, specified that, "No specific regulations or codes directly related to Bitcoin

FINANCE have been enacted. Therefore, Bitcoin cannot be regarded as an official payment meth- od or a type of asset or legal document to effect payment." "However, selecting Bitcoin as a payment method does not constitute a crime. If any- one were to be accused, it should be the credit institutions accepting Bitcoin and the creators of the virtual currency," he added. Despite the heated debate, Bitcoin remained one of the most engrossing topics in fi- nance throughout the year 2017, sparking up a brand new game of investment for hun- dreds of thousands of Bitcoin "miners" as well as growing into a market of hundreds of billions of dollars. Talking about the nature of the digital currency, Nguyen Duy Hung, chair of Saigon Securities Company (SSI) and president of the Bboard of directors (BOD) of PAN Group, asserted, "Bitcoin cannot be treated as an actual form of currency due to the lack of legal basis and exchange rate as well as the recognition as a legitimate currency by central and state banks. Besides, Bitcoin or any other form of crypto-currency based on the blockchain technology could barely replace the existing payment methods. Bit- coin is nothing more than an advanced technology which might be applied in the pay- ment transactions." Apart from the potential risks of a "speculative bubble" bursting, Bitcoin traders are completely unprotected by the legal system and have no access to guarantees in case of losing their investment. To add, the virtual currency is wholly outside the scope of traditional methods of determining value and is sufficient to unpredictable price fluc- tuations. Furthermore, Tran Huu Duc, director of FPT Ventures, noted that the virtual market has been heavily manipulated by the unrealistic price of Bitcoin and the short-run ben- efits for participants. The struggle between the anti-Bitcoin group (including several countries' governments) and the pro-Bitcoin group will likely decide the fate of Bit- coin, either rocketing to millions of dollars per unit or crashing completely. Dominik Weil, co-founder of Bitcoin Vietnam, shared his honest thoughts on the Bit- coin players: "The majority of Bitcoin players and subscribers, or crypto-market "bulls," are flocking to create their own Bitcoin accounts simply to gain profit, expect- ing another surge in price to resell their Bitcoin." http://english.vov.vn/market/is-bitcoin-a-game-for-desperadoes-365303.vov

Consumer credit: high 26/DEC/2017 INTELLASIA| PLO interest rate is a High consumer lending rates are said by credit suppliers to compensate for the risks 'double-edged sword' in this operation. However, according to financial and credit experts, if not being care- ful, the imposition of high consumer lending rates may be a "double-edged sword" that lead to the risk of bad debts. The outstanding consumer credit of Vietnam has risen sharply over the time and is forecasted to remain booming in the near future. Deputy director of the State Bank of Vietnam (SBV) Hochiminh city branch Nguyen Hoang Minh said that as of late 2017, the outstanding consumer loans of the city for

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the first time reached 2,000 trillion dong, accounting for 28 percent of the total out- standing loans of the country. Of which, 12.2 percent were outstanding loans. According to Minh, for many years, especially the 2012-2016 period, the average growth of the outstanding consumer loans of Hochiminh city has been 20-22 percent per year. If the proportion of consumer loans of the total outstanding loans of the city was 4 percent in 2012, this number may reach 12.2 percent this year. In addition, the report recently released by the National Financial Supervisory Com- mission (NFSC) also shows that as of late November 2017, the total credit into the econ- omy was estimated to rise by 2.8 percent compared to the previous month, and by 15.3 percent compared to the beginning of the year (it was 15.6 percent in the same period of 2016, compared to the beginning of the year). Notably, the total outstanding consumer loans were estimated to grow by about 59 percent compared to late 2016, in which the residential home loans, home rent or hire purchase, home construction and repair loans, assignment of land use rights to con- struct houses, etc. accounted for 52.9 percent (49.5 percent in late 2016); loans for pur- FINANCE chasing household appliances accounted for 15.3 percent; loans for purchasing means of transport accounted for 8.3 percent, etc. Currently, there are two separate segments in consumer lending between commercial banks and finance companies. Accordingly, customers of banks are standard custom- ers while those of finance companies are substandard ones (having high risk, medium or low income, no assets to secure loans, unable to access bank loans) Thus, finance companies must have specialised products and services to meet the needs of this segment, which lead to much higher interest rates. For some loans, the rates can reach up to 70-80 percent per annum. In this context, general director of Vietnam National Credit Information centre (CIC) Do Hoang Phong believed that the application of high consumer interest rates of fi- nance companies to offset potential risks is not really effective. Furthermore, if finance companies are not careful, it may be counterproductive and lead to greater risks. Specifically, if the lending rates are too high, customers may be insolvent and bad debts will thus increase. Phong also said that although the current bad debt situation of finance companies has become more positive than before, it is still worse than banks' operating in consumer finance segment. In addition, Ngovandan Hoang Hun, Senior Financial Officer of Market and Financial Sector Development Programme of IFC/ the World Bank also commented that once the consumer finance grows strong, lenders tend to be easier in approving loans. This is likely to lead to higher risk of bad debts. Notably, as the consumer loans are offered at high rates with the expectation of risk compensation, when the economy is in crisis, in- creasing interest rates also means higher pressure of debt repayment, and bad debts are unavoidable. Therefore, according to Hung, capital suppliers, especially finance companies need to show borrowers the prudence in high-interest rate consumer loans and the need to pri- oritise debt and interest rate repayment obligation, especially in the context when the credit history of many borrowers are not shown on the CIC. According to Le Anh Tuan, Head of Research and Development Department of the CIC, analysis of the World Bank's data, only 51 percent of Vietnam's adult population has credit profile. At CIC, in early 2017, there were only 31.5 million borrowers having credit information in the data warehouse, and this number has recently reached 34 mil- lion customers, including credit information of 33.4 million individual customers and over 700,000 corporate customers. CIC's leader believed that for consumer lending, the most concern is to keep lending rates at reasonable levels, because high interest rates also lead to the risk of bad debt increase for both borrowers and lenders when the repayment pressure is too high.

SBV urged to amend 26/DEC/2017 INTELLASIA| THE SAIGON TIMES regulations to back The HCM City Real Estate Association (HoREA) has written to the State Bank of Viet- real estate market nam proposing the issuance of new regulations and amending the current rules to sup-

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port real estate market growth, according to Dau Thau newspaper. HoREA petitioned SBV to amend Circular 36/2014/TT-NHNN and Circular 06/2016/ TT-NHNN in a way that allows credit institutions and branches of foreign banks to continue using parts of their short-term deposits to make long-term loans for home- buyers and developers. HoREA put forth two proposals. In the first proposal, the central bank is asked to continue allowing credit institutions and branches of foreign banks to use 50 percent of their short-term funds for making medium and long-term loans next year. The policy will help support the growth of the economy as well as the property market. As for the second proposal, HoREA agreed with a maximum ratio of 45 percent of short-term funds being used as medium and long-term loans between January 1 and December 31 next year stated in a draft circular amending and supplementing Circular 36/2014/TT-NHNN. Besides, HoREA made proposals relating to the implementation of supporting policies FINANCE for those purchasing affordable commercial and social housing. HoREA proposed SBV launch housing credit packages to support buyers of social and commercial houses valued at some VND1 billion each according to Resolution 46/NQ- CP of the government. The central bank should allocate VND1 trillion to four credit institutions, namely Vi- etcombank, Vietinbank, Agribank and BIDV, to offer preferential loans for customers in need of social houses. HoREA also proposed the National Assembly, the government and SBV annually offer credit lines totalling VND1-2 trillion until 2020 for buyers of social houses with an an- nual interest rate of 4.8 percent. The plan should be implemented by Vietnam Bank for Social Policies and four above- mentioned banks to effectively carry out social housing policies. In addition, incentives should be offered for investors of social housing projects in line with the Housing Law, especially social houses for rent, to reduce costs of such homes.

Many banks complete 26/DEC/2017 INTELLASIA| TRI THUC TRE whole year profit It is only several days till the end of 2017. However, there must wait until February target early next year to have financial statements of banks. However, some banks have recently, in many different ways, disclosed their business situation with profits figure to exceed and be much higher than in 2016. Sacombank is the first typical case. In this year's plan, the bank targets at earning about 585 billion dong pre-tax profit. However, the profit over the first nine months reached more than 1.025 trillion dong, nearly doubling the target and five times higher than the same period of 2016. A leader of this bank even estimated that the whole year profit will be 200 percent higher than the plan. Due to exceeding the plan, Sacombank share- holders agreed to deduct 20 percent of that profit to reward bank employees. In the first nine months of the year, HDBank attained the pre-tax profit of more than 1.9 trillion dong and the bank's leader estimated that the whole year profit will not be lower than 2.4 trillion dong. As such, in just nine months, the bank's profit surpassed the plan of 1.3 trillion dong assigned by shareholders, and 80 percent from the whole year plan. OCB is also the bank that has very good business result this year. According to Nguyen Dinh Tung, CEO of OCB, the bank estimates the pre-tax profit of 960 billion dong in the first 11 months, up 200 percent from the same period last year and surpassing the plan of 780 dong set for the entire year. Apart from good business result, OCB also im- pressed the market as the first bank to announce the completion of Basel II. At LienVietPostBank, according to Pham Doan Son, CEO of the bank, the whole year profit will reach at least 1.7 trillion dong, or at least exceeding 13 percent from the set plan. In 2016, LienVietPostBank's profit tripled compared to 2015, earning more than 1.3 trillion dong. Meanwhile, TPBank completed the plan since October. The bank's CEO said over 10

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months, the bank attained 950 billion dong pre-tax profit while shareholders approved the whole year plan of 780 billion dong. Another case was VIB. At the beginning of the year, the bank aimed at 750 billion dong pre-tax profit and in August, BVSC's analysts forecasted that the bank would approx- imately earn that level. However, over the 11 months of the year, VIB reported the pre- tax profit of 1.050 trillion dong, exceeding 41 percent from the set plan. Besides banks that completed the set target, some banks will also surely complete the set plan. In the group of three largest banks, Vietcombank earned nearly eight trillion dong af- ter nine months, and completed 81 percent of the 2017 plan. With strong growth mo- mentum in the last month along with the successful divestment of large profits from credit organisations including Saigonbank, Cement Finance and OCB, Vietcombank's profit is likely to reach less than 10 trillion dong this year. In the first nine months of this year, Vietinbank earned 7.232 trillion dong pre-tax prof- it. However, on December 21, the bank's leader disclosed that the bank has also ex- FINANCE ceeded the plan set for this year at 8.8 trillion dong at this time. At Military Bank (MB), the pre-tax profit in the first nine months reached more than four trillion dong, up 44 percent from the same period last year and higher than the figure in the entire year 2016. With the available growth momentum, the figure of more than 4.5 trillion dong for the whole year will surely within reach. Meanwhile, other banks such as ACB, Techcombank, and VPBank have not had the latest figures but with the recorded business situation in nine months, the plan that shareholders assigned for the entire year is also forecasted to achieve the plan. The banking system has just undergone a drastic structuring period. In 2012-2015 pe- riod, many banks had to sacrify profits to put for risk provisions in order to settle bad debt. But banks have successfully restructured, which means that they have generated a solid foundation for a breakthrough. According to the statistics of the National Financial Supervisory Commission (NFSC), after every storm, comes a rainbow, the profit of the entire system in the first nine months increased 39 percent from the same period last year. Experts say that the busi- ness results of the entire year 2017 will be much better and at the highest level since 2011. The golden age of banks is forecasted to return more clearly in the near future, said Nguyen Van Thang, Chair of Vietinbank who added that results from the bad debt set- tlement following the National Assembly's Resolution No.42 as well as the break- through in business operation, service of banks will be recorded more into 2018 profit.

Higher profits make it 26/DEC/2017 INTELLASIA| VNA easier for banks to The Housing Development Commercial Joint Stock Bank (HDBank) has been allowed raise capital to increase its chartered capital from more than VND8.828 trillion (US$392.3 million) to VND9.908 trillion. It was the second time HDBank has revised up its chartered capital in a year. Earlier, the Military Commercial Joint Stock Bank (MB), the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and the Asia Commercial Bank (ACB) raised their chartered capital to over VND18.1 trillion, VND15.7 trillion and VND11.2 trillion, re- spectively. The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) plans to raise its charter capital to VND14 trillion via selling shares to existing shareholders. According to the National Financial Supervisory Committee (NFSC), buoyant securi- ties market and growing profits make it easier for domestic banks to increase capital. Financial-banking expert Nguyen Tri Hieu attributed big profits to credit growth, say- ing that credit grew by 15.9 percent in October and is expected to reach 18 percent this year. Better risk management and lesser spending for risk provision fund led to higher prof- its, he said. Hieu commented that banks in general have fairly high capital than the past years.

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E-banking in Vietnam 26/DEC/2017 INTELLASIA| VIR is still treading water E-banking, the latest trend in the Vietnamese banking system, has not completely been able to replace conventional banking customs although the majority of baby boomers (those born in 1945-1960) and generation X (1961-1980) show insignificant interest in modern banking services. A member of the Board of directors (BOD) at a Vietnam-based commercial financial institution (FI) asserted, "In recent times FIs in Vietnam have put a lot of effort into pro- viding online banking solutions in order to appeal to millennials (those born in 1980- 2000) and generation Z, (born after 2000)." However, "A large number of existing clients of Vietnam-based FIs are middle-aged and senior citizens. Specifically, savings worth $2-3 million with terms of up to 36 months were mainly deposited by customers born in 1945-1970," he added. To strengthen their relationship with regular customers, especially senior customers, a remarkable number of FIs launched various loyalty programmes, such as retro music

FINANCE shows, saxophone concerts, and scenic tours especially created for VIP customers. Besides, the implementation of digital banking in Vietnam has encountered plenty of barriers since the current legal framework does not accommodate the digitalisation of the banking system or incentive policies endorsing electronic banking services. Dang Duc Huy, deputy director of Retail Banking at Sai Gon Commercial Bank (SCB), said "FIs in Vietnam should think twice before restructuring the conventional banking model since such moves would be cost-ineffective and are unlikely to generate an in- stant stream of income." To date, a fair number of FIs in Vietnam have introduced a variety of online banking services, such as the Digital Lab of Vietcombank, Live Bank of TPBank, and the MyVIB application of VIB, aiming to enhance customer experience via electronic transaction channels. Exceptionally, VPBank promoted the distribution channel as a stand-alone digital- based branch, called Timo, whose products and services as well as sales policies are entirely independent of the parent bank. http://www.vir.com.vn/e-banking-in-vietnam-is-still-treading-water.html

Banks pursue 26/DEC/2017 INTELLASIA| VNS sustainable growth The current development and future strategies of many local commercial banks are creating confidence about a sustainable growth of the banking sector. Recent assessments by international organisations have shown a bright picture about the performance of the banking sector, of which, leading credit organisations such as Vietinbank, Techcombank, Vietcombank and BIDV have resumed their momentum and shown good health. The Asian Banker recently commented that the performance of Vietnam's banking sec- tor has continuously improved, thanks to the government's reform efforts and the pos- itive movement of the economy. The assessment is based on an analysis of operation and ranking of 16 Vietnamese banks, including state-owned banks and joint stock commercial ones. According to the Asian Banker, Vietnam's banking system has shown a positive per- formance, reflected in the country's highest asset growth rate in the Asia Pacific region. In terms of profits, domestic banks have reached an impressive net profit growth of 37.4 percent. Quite a number of recorded indicators have shown a positive development trend. For example, deposit/credit growth rate has boomed, reaching 1.5 times, compared to the same period, while credit growth has maintained at 18 percent. Though interest in- come still dominated, in the revenue structure of some banks, service fees increased significantly, to approximately 20 percent. Also thanks to good mobilisation and a pos- itive improvement in the operation of businesses, partners of banks, the liquidity of the system has improved very well. The Asian Banker appreciated bad debt settlement efforts, with the sub-prime debt ra- tio at just 2.5 percent at the end of 2016, the lowest level in recent years. The report also

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praised the increased risk management awareness of banks, which most clearly reflect- ed in the compliance with new regulations of the State Bank, as well as Basel II stand- ards. The Asian Banker has ranked 500 banks in the region with total assets of $224 billion, and a net profit of $1.6 billion. Notably, in terms of Strength Rank (the strongest banks following the asset balance sheet), the top 3 leading banks are Vietcombank (No. 48 out of 500 regional banks), Techcombank (No.101) and Vietinbank (No.124). As such, Techcombank was the only joint stock commercial bank among the Top 3 banks with the highest profitability, following the assessment of The Asian Banker. This achievement was thanks to the fact that the bank had implemented good risk management measures, while having a good asset quality. In September, the prestigious credit rating agency S&P also rated Vietcombank and Techcombank as equally as Vietnam's national rating, or "national credit rating ceil- ing." This is the highest rating that a Vietnamese bank can achieve (until S&P upgrades its credit rating for Vietnam). FINANCE According to S&P's assessment, Techcombank has "a balanced choice between profit increase and risk management." In 2017, Techcombank completed its bad debt pur- chase from the Vietnam Asset Management Company (VAMC) and started applying risk management framework under the Basel II international standard. Assessing the move on bad debt purchase of banks, Pham The Anh, economic expert at the National University, told Dan tri newspaper there were two noticeable points. First, the financial strength of banks allowed them to have abundant resources to ac- quire bad debt. Besides, the asset quality of loans had improved a lot (which may come from changes in the operation of businesses, in the bank's accompanying policy and positive movement of the economy). Expert Can Van Luc believed banks that really do business professionally and gain high credit scores from world prestigious rating institutions would maintain sustain- able development and see good business results, taking advantage of opportunities when the economy integrates deeply into the region and the world. http://bizhub.vn/banking/banks-pursue-sustainable-growth_290969.html

SBV wants ATMs to 26/DEC/2017 INTELLASIA| VNS run efficiently before The State Bank of Vietnam (SBV) has asked the relevant agencies to ensure all automat- Tet ic teller machines (ATM) are operational in the months approaching Tet (Lunar New Year) holiday, when there is high demand for cash transactions. Banks must check their ATM systems to ensure the security of card payment. Atten- tion must be paid to the upgradation of software, operation of cameras and mainte- nance to ensure the ATM systems are working efficiently. The amount of cash available for withdrawal must be closely monitored to prevent ATMs from running out of cash and ensure they meet the rising demand for cash transactions ahead of Tet. Banks must take measures to reduce the pressure from cash withdrawal at ATM booths, which have often faced the problem of overloading in the previous years dur- ing the same period. Claims of users must also be handled in a timely manner. The central bank has also asked the National Payment Corporation of Vietnam to check its technical system to prevent errors and ensure the smooth operation of ATM systems. Cash withdrawal demands have often increased strongly in the months ahead of Tet, being even three times higher. Experts have urged consumers to prioritise cashless payment methods, such as inter- net banking, mobile banking and POS payments to reduce the demand for cash with- drawals. The central bank's statistics showed that more than 121 million banking cards were is- sued, as of June 2017. Some 76 institutions provided internet payment and 36 provided mobile payment.

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Management of 26/DEC/2017 INTELLASIA| THE SAIGON TIMES consumer finance The State Bank of Vietnam (SBV) will closely monitor and inspect the operation of con- companies to be sumer finance companies to ensure a transparent and healthy consumer credit market. tightened Data of SBV shows consumer credit has grown strongly in Vietnam in recent years. The total amount of consumer credit has seen a six-fold increase since 2011 to VND960 trillion (about $42.3 billion), accounting for 15.7 percent of total outstanding loans, Thanh Nien newspaper reports. For finance companies alone, the total amount of consumer credit has increased 10 times since 2011 to VND74 trillion, making consumer credit the fastest growing seg- ment with average outstanding loan growth rate of 40 percent per annum in the last three years. According to a report of the National Financial Supervisory Commission, consumer loans will maintain the high growth momentum in the near future. The country's total outstanding consumer loans in the year to end-November had soared by an estimated

FINANCE 59 percent compared to end-2016. Loans for purchasing and repairing apartments, and transferring residential land ac- count for 52.9 percent of the total, up from 49.5 percent against late last year. Loans for buying home appliances make up 15.3 percent while car loans account for 8.3 percent. At present, there are 16 consumer finance companies in Vietnam, including dominant players such as FE Credit and Home Credit. Nguyen Tri Hieu, an economic specialist, said foreign investors have boosted invest- ment into consumer credit in Vietnam. Therefore, SBV has decided to closely monitor consumer finance companies to ensure that they operate properly and comply with law. http://english.thesaigontimes.vn/57677/Management-of-consumer-finance-compa- nies-to-be-tightened-.html

Pouring capital into 26/DEC/2017 INTELLASIA| BAO DAU TU 'king' stocks Since holding power at Saigon Commercial Joint Stock Bank (Sacombank, code: STB), Duong Cong Minh, Chair of the bank's Board of directors (BOD) has acquired STB shares of Sacombank for three times. Most recently, Minh has registered to buy an ad- dition of 1.2 million STB shares to invest in personal needs. Therefore, in the past two months, he has purchased a total of 21.2 million STB shares worth over 220 billion dong, raising his total shareholding to 62.57 million shares, equivalent to 3.47 percent of the total shares with voting rights. At Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank, code LPB), Pham Doan Son, vice Chair of the bank's BOD has continuously acquired LPB shares. Most recently, he has registered to buy 500,000 LPB shares to raise the total shareholding to nearly 12.3 million, equivalent to 1.9 percent, in the form of direct trading and buying according to individual needs. The State Securities Commission (SSC) has announced to receive the report on the pri- vate placement dated December 11th of Hochiminh city Development Commercial Joint Stock Bank (HDBank). The bank's shareholders committee has also approved the issuance of more than 38.5 million shares to existing shareholder and/or related per- sons to existing shareholder Sovico Joint Stock Company, and more than 17.6 million shares to Nguyen Thi Phuong Thai, vice Chair of HDBank's BOD, and other qualified investors. In the recent time, not only have banks leaders pouring money to buy in shares, but internal shareholders have also spent hundreds of billion dong to gather shares. Do Quynh Ngan, the wife of general director of Vietnam Prosperity Commercial Joint Stock Bank (VPBank, code: VPB) Nguyen Duc Vinh, has recently registered to buy 10 million VPB shares at a value of nearly 400 billion dong via order matching and put through. According to securities analysts, it is normal for bank leaders to spend money on buy- ing shares of their banks. This move does not only help them confirm their positions but it is also a practical need when the stock prices are low.

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However, it may include the reason that these leaders have seen the growth potential of the banking sector after a prolonged difficult period. Notably, there are signals of a rising wave of stock prices and many banks have prepared to list their stocks on the exchange in order to make their operations transparent and enhance the stock liquid- ity. The credit rating agency Moody's said that conducting Initial Public Offering (IPO) is a positive point for HDBank's credit rating as it will strengthen the bank's ability to cre- ate capital and a capital buffer for the provision fund in the context when credit is ris- ing sharply. With an estimated value of 300 million USD, HDBank's IPO will be the largest IPO in the banking sector of Vietnam, after Vietcombank's with a value of 463 million USD in 2007. According to Moody's, this deal will encourage other banks to make a move. At Sacombank one of the banks having the largest total bad debts after the merger with Southern Joint Stock Bank (SouthernBank), with the efforts to handle and sell bad debts to the Vietnam Asset Management Company (VAMC), the bank's operation has FINANCE been gradually improved with sharp profit increase in the first nine months of the year (1.1 trillion dong pre-tax profit). The bank aims to handle 20 trillion dong of bad debts this ear. It can be seen that the leader of the bank seems to have foreseen the bank's fu- ture and is willing to spend money on STB shares. In the recent situation of the stock market, bank stocks have gained much better devel- opment and they have sometimes played the leading role in the stock market. The trading volume of bank stocks has been fairly impressive, in which a few stocks were in the top list for liquidity. Moreover, not only have domestic investors acquire shares, but foreign investors have also boosted the share purchase. Thus, for being internal shareholders of banks, many bank leaders cannot stand apart of the market flow. Dr Bui Quang Tin, Lecturer of Business Administration Faculty at Hochiminh city Banking University said that since the positive credit growth in the first 11 months of the year (by 15.3 percent compared to 2016) and the stable liquidity of the banking sys- tem, etc., maintaining stable and low interest rates continues to be a tool to support the credit growth to achieve the 21 percent credit growth target set by the government and the State Bank of Vietnam (SBV). Dr Tin also added that compared to the previous time, banks have launched stricter control in lending, including real estate lending. It also means that bad debts are under control and risk provisions decrease. Banks' profit have increased and closing the first 11 months of the year, many banks have exceeded their annual profit goals. That will put positive impact on the prices of the stocks which used to be "king" in the past. Nevertheless, when pouring capital into bank shares at the present time, share- holders, especially small ones, should be cautious in considering the operation of each bank.

Banking stocks to 26/DEC/2017 INTELLASIA| THE SAIGON TIMES drive market higher, Most bank stocks are entering a short-term correction after their recent strong rallies, experts say but securities experts still expect such securities to continue advancing in the first months of 2018. Nguyen Hong Khanh, head of analysis at Sacombank Securities Company (SBS), said on tinnhanhchungkhoan.vn website that the market has resumed its uptrend. After the correction, the VN Index is poised to rise to new highs again. Notably, the market saw no negative impact from recent quarterly rebalancing by ex- change traded funds and the US Federal Reserve's interest rate hike. However, Tran Anh Tuan from Vietcombank Securities Company (VCBS) said the VN Index would miss the 1,000-point level in the last week of 2017. Though the main index still sees a positive outlook in the short term, the market will be obstructed by poor cash flow. Securities enterprises may fail to improve margin lending as large banks have met their credit growth targets. However, in the first quarter of 2018, the main index is ex- pected to beat new highs as listed firms will announce their 2017 financial reports and

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banks will continue boosting lending activities, Tuan said. The VN Index traded in the green for almost the entire session last Friday, closing up 0.66 percent. After starting on Monday with the best day of the year, up 2.5 percent, trading during the rest of the week was choppy, with the index up 1.9 percent for the week, breaking a two-week losing streak. Lender VCB jumped to a record high, extending a 15 percent surge over the last seven days amid investor speculation the bank will announce strong earnings in the last quarter. According to Khanh from SBS, the banking sector reports the biggest market capitali- sation on the stock market and causes significant impact on the economy. More banks are going to list on the market next year while their operations will be strengthened to meet higher standards and deal with bad debts. Besides, bank stocks are attractive to both foreign and domestic investors. Though many lenders have increased sharply, banks remain the key drivers in the upcoming index rises early next year, the expert said. FINANCE According to Tuan from VCBS, the banking sector has made positive contributions to the recent rallies. In 2018, bank stocks will be shining thanks to better credit growths, focusing on the retail segment. Furthermore, the bad debt handling process will go smoothly given supportive poli- cies from the government and the State Bank of Vietnam. The banking system is pro- jected to run healthy operations and make quality growth in the future, Tuan said. http://english.thesaigontimes.vn/57679/-Banking-stocks-to-drive-market-higher-ex- perts-say.html

NAPAS collaborates 26/DEC/2017 INTELLASIA| VNS with DFS in card The National Payment Corporation of Vietnam (NAPAS) and Discover Financial Serv- switching ices Inc (DFS), an American financial services company, signed an agreement on a card switching system on Wednesday in Hanoi. The two parties agreed to link the processing of card transactions between DFS and the Vietnamese market through NAPAS's electronic system. This will allow DFS's cardholders to trade and pay for goods and services through a network of more than 17,000 ATMs and over 270,000 Point of Sale (POS) machines in Vietnam. Established in 1986, DFS is the world's third-largest payment network in the world. DFS's acceptance network is available in 185 countries and territories worldwide with over 41 million card accepting units. In addition, DFS has more than 71 million card- holders globally. Joe Hurley, a representative of DFS, said working with NAPAS is an important step to ultilise all advantages available to the two sides to boost the growth of transactions and DFS cards in Vietnam. Through this collaboration, DFS hopes to support the global development of national switching systems like NAPAS, he added. Le Quoc Hung, a NAPAS representative, said they appreciate DFS's approach and product development strategies using switching systems with domestic card organi- sations and national payment organisations. This type of cooperation not only helps the parties optimise costs and resources to pro- vide products and services to banks and cardholders, but also ensures compliance with regulations and policies on market development of the central bank in the coun- tries they serve, he added. NAPAS currently manages an inter-bank connection system with more than 17,000 ATMs, 270,000 POS and more than 100 million cardholders of 46 domestic and inter- national commercial banks operating in Vietnam. http://bizhub.vn/tech/napas-collaborates-with-dfs-in-card-switching_290951.html

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Agricultural insurance 26/DEC/2017 INTELLASIA| VN ECONOMIC TIMES guarantees "Agricultural Insurance: Identifying Challenges, Promoting Growth" forum on De- productivity cember 21 hears of benefits insurance provides to farmers and the economy. Vietnam is an agricultural country that not only meets the needs of its 95 million peo- ple but also exports to over 180 countries, with export value in 2016 of $32.14 billion and an estimated $36 billion this year, the "Agricultural Insurance: Identifying Chal- lenges, Promoting Growth" forum organised by the Business Forum newspaper on December 21 heard. This is a remarkable achievement, reflecting the efforts of the en- tire agricultural sector and the Party and the State. However, agriculture constantly faces major risks from natural disasters and epidem- ics. Moreover, Vietnam's agriculture sector still features traditional agriculture and commodity agriculture, making it unable to promote its strengths. The agricultural insurance sector has been operating soundly since 2011, with mecha- nisms and policies issued, but still bears many difficulties and limitations.

FINANCE Therefore, in addition to policy efforts, the State, entrepreneurs, insurers, and farmers need to work together to make the agricultural industry become more and more pro- ductive and bring high value added. Speaking at the opening of the forum, Hoang Quang Phong, vice President of the Vi- etnam Chamber of Commerce and Industry (VCCI), said that agricultural insurance is a traditional insurance product among more than 500 current non-life products in the global insurance market, including more than 250 property insurance products, nearly 200 personal insurance products, and approximately 100 liability insurance products. "Vietnam is an agricultural country, but annually, natural disasters and epidemics rob its GDP of an estimated 1.5 per cent," he said. "Farmers need a guarantee for their la- bour and productivity, and agricultural insurance is the best hope." Although the government as well as the agricultural sector has a policy of inviting businesses to increase their investment, the proportion of investment in agriculture re- mains modest. One important reason is that investing in agriculture brings low profit but high risks. According to figures provided by the Ministry of Agriculture and Rural Development, the number of enterprises investing in agricultural production accounts for less than 1 per cent of all enterprises in Vietnam and most are of small size. Enterprises with cap- ital of less than VND5 billion ($220,068) account for 55 per cent of the total. In addition, very few businesses invest professionally in agriculture. Most rely on the exploitation of natural resources such as land and water and have not paid sufficient attention to in-depth investment, the application of science and technology, or invest- ments in modern equipment to increase production and export value. Meanwhile, links between enterprises and scientists and farmers in the production value chain have not been tight, leading to high costs, low competitiveness, and low efficiency. http://vneconomictimes.com/article/business/agricultural-insurance-guarantees-pro- ductivity

SHB sells brokerage 26/DEC/2017 INTELLASIA| VNS arm SHBS Sai Gon-Hanoi Joint Stock Commercial Bank (SHB) has sold 98.47 per cent of its shares in its brokerage arm SHB Securities JSC (SHBS), equal to 14.77 million shares. The shares were sold equally to three individuals for VND7,850 (35 US cents) per share, lower than the par value of VND10,000 per share. SHB estimated it would re- ceive nearly VND116 billion ($5.15 million) from the deal. SHBS was formerly known as Hanoi Building Joint Stock Commercial Bank (Habu- bank) Securities JSC (HabubankSc), which was owned by Habubank before 2012. The company was renamed SHBS after Habubank was acquired by SHB in 2012. In August 2016, SHB also offloaded its entire ownership in Sai Gon-Hanoi Securities JSC for VND6,600 per share. Though SHB is no longer a shareholder of SHS, the bank remains the main source of financial capital for the securities company. The total value of short-term loans that SHB lent to SHS increased to VND700 billion

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at the end of September from VND386 billion in late second quarter. At the company's annual shareholder meeting in April 2017, shareholders of SHS ap- proved the firm's proposal to acquire SHBS. However, it has remained unclear if the two brokerage firms would finalise their merger. http://bizhub.vn/markets/shb-sells-brokerage-arm-shbs_290967.html

Foreign funds flock to 26/DEC/2017 INTELLASIA| VNS grab HDBank stocks Up to 76 foreign investors were granted stock certificates by HCM City Development Bank (HDBank) at a ceremony held at the bank's head office on Thursday. The bank's new strategic partners invested a total of more than VND6.8 trillion (US$300 million) into the separate issuance of 14.26 million shares, equivalent to 20 per cent of the bank's total share ownership. Each investor could hold not more than a 3 per cent stake. Investors included foreign funds and international financial institutions (FIs) that are

FINANCE currently pouring into the Vietnamese stock market, such as Credit Saison and AOZO- RA Bank from Japan, Germany's Deutsche Bank AG, Macquarie Bank from Australia and JPMorgan Vietnam Opportunities Fund, RWC Frontier Markets Opportunity Master Fund, Chalemass and Dragon Capital from the United Kingdom. "We decided to invest in HDBank after three years of strategic partnership in the seg- ment of consumer finance," Akihiro Matsuda, general manager of the Overseas Man- agement Department at Credit Saison, said. "We highly appreciate the bank's performance, especially the stellar growth rate of its business operations, total assets, business network, and the exceptional profitability of a "rising star" in the banking field, as well as the bank's leadership and vision, indicat- ing HDBank's vision and prospects of business development in the next five years," he said. Le Thanh Trung, deputy general director of HDBank, said the fact that over 70 foreign investors, all exceedingly reputable FIs, purchased HDBank's shares, proved an appre- ciable interest from financial investment bodies, enabling the bank to achieve greater accomplishments over the following years. Earlier, HDBank launched the first share offering for existing shareholders, with each share for VND32,000 ($1.4). The bank also separately issued 98 million shares for its current active shareholders, gaining some VND3.2 trillion. Following the first offering, the bank was reported to have charter capital of VND9.8 trillion, with a surplus of VND2.1 trillion. HDBank expects to list its shares on HCM Stock Exchange in early 2018. http://english.vietnamnet.vn/fms/business/192601/foreign-funds-flock-to-grab-hd- bank-stocks.html

New FDI approvals 26/DEC/2017 INTELLASIA| THE SAIGON TIMES highest since 2009 Fresh foreign direct investment (FDI) approvals in Vietnam this year have hit $35.88 billion, a rise of 44.4 percent and the highest since 2009, according to the Ministry of Planning and Investment's Foreign Investment Agency. As of December 20, Vietnam had licensed 2,591 new projects whose combined capital is $21.27 billion, picking up 42.3 percent year-on-year. Besides, as many as 1,188 projects obtained approval to revise up their investment capital with an additional $8.41 billion, up 49.2 percent, and 5,002 deals of capital contribution including mergers and acquisitions with foreign investors' involvement with a total value of $6.19 billion, up 45.1 percent. Such figures are not the final ones, as certain deals might have not been updated. For example, the transfer of a huge stake of Sabeco to a company with Thailand's involve- ment worth $4.8 billion has not been included in the data provided by the Foreign In- vestment Agency. As the ministry estimated, FDI projects have disbursed $17.5 billion in the year, the highest ever. Of the 19 areas that foreign investors have invested in, the processing-manufacturing

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sector attracts the largest amount with $15.87 billion, accounting for 44.2 percent of to- tal registered capital. It is followed by electricity production and distribution with $8.37 billion (23.3 percent) and real estate with $3.05 billion (8.5 percent). Foreign investors in Vietnam come from 115 countries and territories. Japan has ranked first when registering $9.11 billion (25.4 percent), South Korea second with $8.49 billion (23.7 percent) and Singapore third with $5.3 billion (14.8 percent). FDI capital has been injected into 59 provinces and cities nationwide. However, HCM City has made up the highest proportion of registered capital, 18.1 percent and $6.5 bil- lion. Other localities with large FDI pledges are Bac Ninh with $3.4 billion (9.5 percent) and Thanh Hoa with $3.17 billion (8.8 percent). Among the major projects licensed this year is the Japan-invested BOT Nghi Son 2 thermal power plant worth $2.79 billion in Thanh Hoa Province. Other BOT thermal plants getting approved are Van Phong 1 in Khanh Hoa Province having registered capital of $2.58 billion and Nam Dinh 1 in Nam Dinh Province worth $2.07 billion. The two projects are invested by Japanese and Singaporean investors re- FINANCE spectively. In addition, Samsung Display Vietnam adjusted up its investment in Bac Ninh Prov- ince by $2.5 billion. http://english.thesaigontimes.vn/57692/New-FDI-approvals-highest-since-2009-.html

Treasury reports 26/DEC/2017 INTELLASIA| VNS strong fiscal year The Vietnam State Treasury (VNST) has fulfilled its assigned tasks of capital disburse- ment, monetary injection and strictly managing State Budget expenditures, says its deputy director general Nguyen Quang Vinh. At a press conference held in Hanoilate Thursday to announce results of a review of VNST's 2017 fiscal year, Vinh said that the agency has "fundamentally completed" tasks under the government's action plan. The agency established a solid development strategy, identified solutions and imple- mented them, he said. As of December 15, total State Budget revenue had reached VND1.22 quadrillion (US$54.3 billion), including VND865.7 trillion ($38.5 billion) from domestic sources, VND184.6 trillion ($8.2 billion) from export-import activities, VND43.5 trillion ($1.93 billion) from crude oil, and VND5.6 trillion ($249 million) from international aid, ac- counting for 90.71 per cent of the yearly estimate. Vinh also confirmed that the VNST has closely followed guidelines of the govern- ment's socio-economic development plan for the year as well as the State Budget esti- mations set by the Ministry of Finance (MoF). On State Budget collection, Nguyen Manh Cuong, head of the VNST's Administration Division, said that the agency has actively cooperated with local budget collection agencies to make sure the MoF's budget estimates were maintained. Cuong said that the agency prioritised daily information exchange between local units and the VNST central collecting division, helping create favourable conditions for tax- payers and make collections promptly and accurately. Throughout the year, the State Treasury continuously expanded its accounts receiva- ble at five State-owned commercial banks Vietcombank, Vietinbank, BIDV, Agribank and MBBank promoting budget collection via the banks' points of sale system, Vinh said. He also announced the Treasury's plan to cooperate with the traffic police and Viet- nam Post to co-ordinate fines collection for traffic law violations through the postal system. According to Vinh, such joint solutions would quickly and greatly contribute to con- centrating State revenues sources in a timely manner, assisting taxpayers in making payments, assuring safety and efficiency in State Budget management and minimising cash transactions in the system. On expenditure control, Cuong said that the VNST had deployed many effective solu- tions following the August Resolution No 70/NQ-CP on speeding up the public invest-

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ment capital disbursement process. The agency's 2017 controlled expenditure on capital construction was around VND245 trillion ($10.9 billion), equalling 72.1 per cent of the yearly plan, with VND221.7 trillion ($9.8 billion) coming State Budget disbursement alone. Vu Duc Hiep, director of the Expenditure Control Department under the State Treas- ury, said that the government was also directing investors to speed up the disburse- ment process for public investment and government bonds. The VNST has proactively reviewed the 2017 investment capital disbursement plan before the respective investors and project management units, especially for projects where no disbursement has happened by September 30, and others with low disburse- ment rates, he said. Throughout the year, the agency regularly submitted reports to the MoF and the gov- ernment Office (GO) on the public investment capital situation, clearly stating the rea- sons for disbursement delays, and proposing solutions. Cuong said that the GO and the VNST have worked closely together to develop and FINANCE put into operation the presenting of daily online reports on budget revenue, expendi- ture data and capital mobilisation. There has also been a surge in civil servant's responsibility level at the VNST, as they have been instructed and thoroughly supervised on expenditure control, so that no payment records are left untouched for any reason for longer than three working days at the most, he stated. In addition, Cuong said, administrative reforms were also given priority and positive results gained. According to the VNST report, these results include creating favourable conditions for investors and governmental units, implementing inter-bank payment at provincial level nationwide, ensuring safety of State Budget payments, closely co-ordinating with the general Department of Taxation, the general Department of Vietnam Customs and other commercial banks in reforming bilateral and inter-bank payment collection. http://vietnamnews.vn/economy/419953/treasury-reports-strong-fiscal-year.html

Seafood exports grow 26/DEC/2017 INTELLASIA| THE SAIGON TIMES sharply Vietnam had exported $7.6 billion worth of seafood in the year to end-November, up 18.9 percent over the same period last year, Nguoi Lao Dong newspaper quoted a re- port of the general Department of Vietnam Customs. Although the US market posted a mild decline of 1.7 percent, four other large markets, namely the EU, Japan, China and South Korea, registered growth of over 20 percent. Therefore, total export turnover of seafood may exceed $8 billion in all of this year. Last year, China spent $860 million importing seafood from Vietnam, but the number surged to more than $1 billion in January-November this year, making China one of Vietnam's seafood importers with turnover of over $1 billion. Among other major mar- kets were the US with $1.3 billion, the EU with $1.25 billion and Japan with $1.19 bil- lion. Tran Van Linh, chair of Thuan Phuoc Seafood and Trading JSC, said China's demand has surged, offering more opportunities for local exporters when Vietnamese tra fish exports to traditional markets such as the US and the EU have faced difficulties. Despite many obstacles in traditional markets, Vietnam can generate $1.8 billion from tra fish exports, and the robust growth is mainly attributed to more shipments to the Chinese market. Hang Van, deputy director of Truong Giang Seafood JSC, said China is Vietnam's big- gest tra fish buyer now with a market share of 23 percent. Tra fish price is forecast to remain high in the next three months as the neighbouring country has high demand for the product. According to the Export-Import Department under the Ministry of Industry and Trade, seafood shipments via Mong Cai border gate have increased significantly as ex- porters are shipping high-quality products to China to meet the demand of Chinese consumers at the end of the year.

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However, some Chinese traders have bought poor quality seafood from Vietnam and supplied to their market with fake certificates, negatively affecting Vietnamese sea- food exporters' prestige. Therefore, authorities should take measures to tackle the problem, ensuring the sustainable development of the sector. Material tra fish price has hit a record high of VND28,500-29,000 a kilogram, resulting in a profit of VND5,000 per kilogram for farmers. Meanwhile, prices of tiger and white-legged shrimp in Ca Mau Province, which is the country's largest shrimp producer, have increased considerably since early September to VND210,000-215,000 (US$9.25-9.47) and VND104,000-105,000 per kilogram respec- tively. Besides, the shrimp farming area has also expanded, leading to high seafood output to supply processing plants and higher income for farmers. Ngo Thanh Linh, general secretary of the Ca Mau Association of Seafood Exporters and Producers (CASEP), said most shrimp processing plants in the province are in dire need of material as farmers could meet only 40-50 percent of the demand. Due to high prices, enterprises find it hard to import material shrimp from other countries. FINANCE As of November, Vietnam had exported nearly $3.5 billion worth of shrimp, up nearly 22 percent year-on-year. The figure may reach $3.8 billion this year, rising 20 percent over last year. Vietnamese shrimp exports to the EU have grown nearly 22 percent this year as shrimp of India, which ships a large volume of the product to the bloc, was found contaminat- ed with banned antibiotics, said Tran Van Linh. http://english.thesaigontimes.vn/57676/Seafood-exports-grow-sharply.html

Rice exports beat low 26/DEC/2017 INTELLASIA| VNA expectations in 2017 Contrary to pessimistic forecasts earlier in 2017, after a drop in 2016, the country's rice exports had a successful year in 2017, with some higher-than-expected figures. According to the Ministry of Industry and Trade, the level of rice exports in December was estimated at around 400,000 to 450,000 tonnes, bringing the total export volume for the entire year to 5.9 to 6 million tonnes, over 1 million tonnes higher than last year's figure. A recent update from the general Department of Customs showed that as of 15th De- cember, the level of rice exports reached 5.66 million tonnes, worth around $2.6 billion. This figure represents a rise of 20.9 per cent in volume and 23.8 per cent in value over the same period last year. In 2016, the level of rice exports was only 4.9 million tonnes, worth $2.2 billion. After disappointing results in 2016, the sector has set a modest target to export 5 mil- lion tonnes of rice in 2017, due to an anticipated decline in demand and changes to the rice import policies of destination markets. However, the demand for rice in many markets, such as China, Malaysia, the Philip- pines and South Korea, increased significantly in 2017, which, together with the efforts to penetrate new markets, such as Bangladesh and Iraq, have helped to improve the country's level of rice exports, experts have said. Rice import companies also saw a successful year. Nguyen Van Don, director of Viet Hung Company Limited, stated that the increase in rice exports was largely due to China, the largest market for Vietnam. Don added that rice exports to China is expected to help boost his company's value of exports by 20 per cent, compared to 2016. Rice exports to other markets, such as the Philippines, Malaysia, Iraq, South Korea and Saudi Arabia, also saw a significant increase. Dang Thi Lien, director of the Long An Foodstuff Limited Company, forecasted a pos- itive outlook for rice exports, as there are many orders from the Philippines and China. According to Nguyen Thanh Long, director of the Go Viet Limited Company, the level of rice exports will continue to improve in the first quarter of 2018, if supply is ensured. Many forecasts highlight an improved global rice market in 2018. According to a report by the United States (US) Department of Agriculture, global rice trade is projected to grow by 1 per cent in 2018, to reach 42.3 million tonnes. Vietnam's

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rice exports could increase by 400,000 tonnes in 2018, due to higher demand from Southeast Asian markets. Vietnamese rice is now exported to over 130 markets. However, experts are still calling for quality to be improved, to enhance competitiveness. In October, the Ministry of Industry and Trade announced its rice export strategy for the 2017 to 2020 period, which aims to decrease export volume but increase value. Accordingly, the country's average rice export volume was set at 4.5 to 5 million tonnes per year to 2020, at an average value of $2.2 to $2.3 billion. Between 2021 and 2030, Vietnam plans to export 4 million tonnes per year on average, worth around $2.3 to $2.5 billion. http://vietnamnews.vn/economy/419998/rice-exports-beat-low-expectations-in- 2017.html#dYs0akMJdcXxHUob.97

Garment-textile export 26/DEC/2017 INTELLASIA| VNA

FINANCE earnings likely to hit Vietnam's exports of textile and garment in the last two months of 2017 was estimated 31 billion USD at 5.27 billion USD, bringing the total export revenue this year to 31 billion USD, a year-on-year increase of 10.23 percent. According to the HCM City Association of Garment and Textile (AGTEK), producers are busy fulfilling remaining orders of the year; many of them have received orders for the first quarter of 2018. This year, the industry has made efforts to gain strong footholds in foreign markets, such as the US, EU, Japan and the Republic of Korea while significant growths have also been seen in others like China, Russia, Cambodia, and more. The AGTEK forecast that 2018 will be better for the industry than in 2017 and the in- dustry is likely to maintain a double-digit growth. https://en.vietnamplus.vn/garmenttextile-export-earnings-likely-to-hit-31 billion-usd/ 123872.vnp

Dong Nai to export 26/DEC/2017 INTELLASIA| VNS more pepper to Europe Lam San Agriculture Cooperative in Cam My District, Dong Nai Province, is negotiat- in 2018 ing with European partners to sign contracts to export some 1,500 tonnes of pepper to Holland and Germany in 2018, according to the cooperative. The cooperative exported 800 tonnes of clean pepper to these markets in 2017, higher than the export volume of 300 tonnes in 2016. Nguyen Ngoc Luan, director of the cooperative, said Lam San is the first business in Vietnam to export pepper to the European market. It started exporting pepper to the European markets in 2015. To sign long-term export contracts, the cooperative must have a large supply of pepper that meets standards on food safety through cooperation with 1,500 households producing pepper. The cooperative has provided farmers with agronomic knowledge about land, water, crops, new farming techniques and the use of pesticides and fertilisers in a scientific way, he said. Demand for pepper in the European market is huge, however, farmers need to pro- duce pepper according to the safety production process. This will help them improve the quality of pepper, expand the market and increase farmers' income, Nguyen Van Nam, a member of the cooperative, said. Dong Nai Province has some 15,000ha where pepper is grown, concentrated in Cam My, Xuan Loc and Thong Nhat districts. http://bizhub.vn/news/dong-nai-to-export-more-pepper-to-europe-in- 2018_290990.html

Pepper producers 26/DEC/2017 INTELLASIA| VIETNAMNET warned of difficult The pepper output and inventory level around the world is on the rise, while emerging period ahead export countries are trying to expand growing areas and increase exports at competi- tive prices, putting pressure on Vietnamese farmers. Nguyen Nam Hai, chair of the Vietnam Pepper Association, returned recently from

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the 45th conference of the International Pepper Community (IPC) held in early No- vember in Sri Lanka. Hai said that the output and inventory volume carried forward from previous crops in pepper production countries had been increasing rapidly. "In other words, supply is higher than demand," he said. An IPC report said that in 2016, total pepper output globally was 497,000 tonnes, while the figure rose to 547,000 tonnes in 2017. Meanwhile, the inventory volume carried forward from previous crops increased by 20,000 tonnes a year. It was 67,000 tonnes in 2016 and 87,000 tonnes in 2017, and is ex- pected to reach 104,000 tonnes in 2018. Cambodia, China and Thailand are not members of IPC, but they have rapidly in- creased pepper output, thus becoming rivals to Vietnam, the biggest producer and ex- porter in the world. The pepper output of the three countries is estimated at 40,000 tonnes in 2017, while the total output of six non-IPC countries is 50,000 tonnes. FINANCE As for Vietnam, the output in 2017 has been 180,000 tonnes. Around 21,000 tonnes were carried forward from the 2016 crop. Analysts said the pepper price in the world market prompted farmers to develop pep- per growing areas. In 2015, when the price hit the $10,000 per tonne threshold, farmers rushed to grow pepper. In Vietnam, the pepper growing area soared from 51,000 hectares in 2013-2014 to 126,000 hectares in 2016. Brazil, Cambodia and China have seen pepper growing areas increase sharply. In 2016, Brazil exported 30,000 tonnes of pepper, but in 2018 the figure may soar to 65,000 tonnes. While the pepper growing area and output have been increasing, the export price has been gradually decreasing, now hovering around $3,300-3,500 per tonne. In Vietnam, the material price has also dropped dramatically from VND130,000 per kilo in early 2017 to VND77,000, or $3,400 per tonne. The figures about oversupply show it is now a buyers' market. Vietnam plans to export 200,000 tonnes of pepper this year. However, Hai said he was not sure if the plan would be fulfilled. Being the biggest producer and exporter, Vietnam is facing many technical barriers in- cluding increasingly strict requirements on plant protection residues and product quality. Meanwhile, the domestic market is becoming saturated, with the consumption level of no more than 8,000 tonnes per annum. http://english.vietnamnet.vn/fms/business/192273/pepper-producers-warned-of-dif- ficult-period-ahead.html

Vietnamese steel 26/DEC/2017 INTELLASIA| VNEXPRESS makers in battle The US claims Chinese steel is being processed or shipped through Vietnam to avoid against steep US heavy taxes. import duties The Vietnam Steel Association (VSA) is working with the Ministry of Industry and Trade to protect what Vietnamese authorities call the legitimate rights and interest of local steel producers who have been accused of tax evasion by the US Department of Commerce (DOC). The DOC said it will apply the same anti-dumping and anti-subsidy rates on corro- sion-resistant and cold-rolled steel from Vietnam that it does on the Chinese equiva- lents if they are produced using Chinese hot-rolled steel. Although the products receive their corrosion resistant treatment or are cold-rolled in Vietnam, the DOC agreed with claims by American producers that as much as 90 per- cent of the products' value originates from China, according to Reuters. Vietnamese cold-rolled steel will face combined preliminary US anti-subsidy and anti- dumping duties of 531 percent, while corrosion-resistant steel will face combined du- ties of 238 percent. The final duties are expected to be announced on February 16.

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The DOC said that after anti-dumping duties were imposed on Chinese steel products in 2015, shipments of cold-rolled steel from Vietnam to the US shot up to $295 million annually from $11 million. Dismissing the claim, the VSA said the processing of cold-rolled steel and corrosion- resistant steel from hot-rolled steel is a substantial transformation. The process in- volves many stages, which creates an added value equal to 30-40 percent of the prod- ucts' value, it said. Thus, the US claim is groundless, the VSA stressed. Nguyen Thanh Trung, CEO of Ton Dong A Corporation, argued against the decision, saying that the company mainly uses materials imported from Japan to produce steel to export to the US His company is one of four Vietnamese steel makers that have been accused of import- ing Chinese steel for minor processing before shipping it to the US Vietnam imported 100,000 tonnes of hot-rolled steel from China in the first 11 months of this year, which accounted for just 2 percent of the country's total imports of the FINANCE product during that time, according to the general Department of Customs. Commenting on the issue, the Ministry of Industry and Trade said cold-rolled steel and corrosion-resistant steel produced in Vietnam from imported steel should be con- sidered Vietnamese products. According to the World Trade Organisation's rules of origin, a country is considered the origin of goods if it is where a substantial transformation to create the goods is car- ried out, it said. Vietnam affirms that the production of cold-rolled steel and corrosion-resistant steel from imported hot-rolled steel is a substantial transformation, the ministry added. "Thus, there is no tax evasion as claimed by the DOC." Diversify markets The US decision is expected to have negative impacts on Vietnam's steel industry, said economist Le Dang Doanh. "This is a regrettable decision for Vietnam. The country should make efforts to clarify any doubts held by the US, and demonstrate that the steel products it exports to the US do not originate from China." He said local steel makers should upgrade their technology and cut production costs to make their products more competitive, while diversifying export markets. Predicting risks in the US market, some local steel makers have expanded their exports to other markets and sought alternative sources of input material. Pham Manh Hung, CEO of steel producer Nam Kim, said his company stopped using hot-rolled steel from China after the US launched a formal investigation into whether Chinese companies were shipping steel through Vietnam to avoid import tariffs late last year. The company has increased its use of products imported from other markets such as India, South Korea and Japan, or those locally produced to avoid risks. Vietnamese steel products are exported to more than 50 countries and territories, in- cluding Asean, the E.U., South Korea, India and Taiwan. The country's steel shipment to the US accounted for 13 percent of its total steel export in the first eight months of this year, lower than the ratio of 27 percent in the same period last year, said the VSA. Vietnam earned over $2.7 billion from iron and steel exports in the first 11 months, surging 52.8 percent over the same period last year, according to the General Statistical Office. https://e.vnexpress.net/news/business/vietnamese-steel-makers-in-battle-against- steep-us-import-duties-3688562.html

Hanoi's industry 26/DEC/2017 INTELLASIA| VNA sector targets 8pct Hanoi's Department of Industry and Trade eyes a pickup of 7.7-8.1 percent in export growth for 2018 revenue, 8.2 percent increase in Index of Industrial Production (IIP) and 11 percent surge in total retail sales. The information was announced by the department's director Le Hong Thang on De- cember 22.

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In a bid to realise the set target, the department will enhance trade promotion, seek ways to expand domestic markets and diversify export markets, and provide informa- tion on markets, export products and free trade agreements that Vietnam has joined in. Developing support industries and attending international fairs to seek partners will be prioritised as well. Along with efforts to promote "Vietnamese people prioritise using Vietnamese goods" campaign, the department will work to develop production, address difficulties for lo- cal enterprises, and speed up construction of shopping malls, supermarkets and mar- kets. Meanwhile, the city will pay due attention to curbing inflation rate and stabilising sup- ply-demand. The city's industrial production in 2017 reached nearly VND500 trillion (US$22 bil- lion), 7.3 percent higher than the figure in 2016. Export revenue rose 10.3 percent year- on-year to $11.77 billion. http://english.vov.vn/economy/hanois-industry-sector-targets-8-growth-for-2018- FINANCE 365257.vov

Switzerland imports 26/DEC/2017 INTELLASIA| VNS over 50pct shrimp During the 10-year period (2007-2016), Vietnam has consistently been the largest from VN shrimp supplier for Switzerland, accounting for over 50 per cent of total Swiss shrimp imports. This was stated by the Vietnam Association of Seafood Exporters and Producers (VASEP). Switzerland accounts for 0.5 per cent of total shrimp import value in the world, mainly importing shrimp for domestic consumption. Each year, this country imports some 8,500 tonnes of shrimp. Shrimp import in Switzerland was not stable during the 10 years (2007-2016), with the lowest import value in 2007 at $81.4 million and the highest in 2014 at $144.6 million. In 2014, the value of shrimp imports in this country reached the highest level because the price of shrimp worldwide increased significantly. From 2014 to 2016, the value of shrimp imports into the country showed a tendency to decline. In the Swiss market, Vietnam has to compete with Ecuador and other Asian suppliers such as Bangladesh, Thailand and India, although Vietnamese shrimp is more afford- able than European suppliers such as Germany, Denmark and France. Frozen shrimp and sealed bags with processed shrimp are the two main products im- ported into Switzerland, of which Vietnam is the largest supplier of these two prod- ucts. VASEP said Switzerland offers free import duty on frozen shrimp for all five major sources -- Vietnam, Germany, Denmark, Ecuador and Bangladesh. In the first three quarters of this year, shrimp imports to Switzerland totalled $87.6 mil- lion, a year-on-year increase of 17 per cent. Vietnam remains the largest supplier, ac- counting for 59 per cent of total Swiss shrimp imports, followed by Germany, Denmark, France and the Netherlands. Switzerland ranks 10th among Vietnam's main shrimp import markets, accounting for 1.03 per cent of the Southeast Asian country's total shrimp exports to all the markets. As of November 15, 2017, Vietnam's shrimp exports to Switzerland reached $34.3 mil- lion, up 17.3 per cent over the same period last year. VASEP suggested that in light of the current situation, Vietnam should take advantage of being the largest supplier of shrimp and the zero per cent tariff on exporting shrimp to Switzerland to maintain and promote exports to this market. http://bizhub.vn/news/switzerland-imports-over-50-shrimp-from-vn_290946.html

Vietnamese-Korean 26/DEC/2017 INTELLASIA| VIR trade celebrates After 25 years, Vietnamese-Korean two-way trade turnover hit $60 billion and is ex- quarter century pected to reach $100 billion by 2020. milestone 25 years cooperation

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2017 marked the 25th anniversary of bilateral relations between Vietnam and Korea (December 22, 1992-2017), with numerous outstanding achievements in the fields of economy, trade, investment, and social and cultural cooperation. In a quarter of a century, the two-way trade turnover increased by 86 times, from $0.5 billion in 1992 to $43.4 billion in 2016. It was $58.5 billion in the first 11 months of 2017 and is expected to be $60 billion by the end of 2017. Currently, Vietnam ranks fourth among South Korea's trading partners. According to data of the Ministry of Industry and Trade, in the first 11 months of this year, Vietnam's import turnover from Korea was $42.52 billion, focusing on semicon- ductors, monitors, wireless communication devices, and electronic components. The export turnover of Vietnam to Korea was $13.52 billion, focusing on wireless commu- nication devices, clothes, and usual essential goods. Korea ranks second among Viet- nam's trading partners, only behind China. Korea has been consistently among the top three foreign investors in Vietnam. By De- cember 20, 2017, Korea ranks first with a total of 5,700 projects and total accumulated FINANCE registered capital of $57.66 billion, accounting for 18.1 per cent of total investment cap- ital reaching the country. Many big Korean corporations have invested in Vietnam, such as Samsung, LG (man- ufacturing), Kumho, Doosan, Huyndai, Posco, GS (heavy industry and shipbuilding), CJ, Lotte, Shinsegae (retail, distribution and logistics) and thousands of Korean small- and medium-sized enterprises have been contributing to Vietnam's socioeconomic de- velopment. During the past 25 years, the export goods structure of Vietnam to Korea has shifted from raw materials, primary agricultural and forestry products, and low value-added products to electronic goods, mechanical processing, processing agro-forestry prod- ucts, and high-value-added consumer goods. The tag "Made in Vietnam" has become familiar in every electronic products of Samsung. In machinery, over 90 per cent of raw materials and semi-finished products for domes- tic investment and foreign direct investment (FDI) enterprises for production and processing for export has been imported from Korea. This cooperation structure has been strengthening the competitiveness of Vietnamese goods and services in the re- gion and around the world. Towards the $100 billion mark The 25 years of bilateral relations, with solid achievements and international integra- tion, is an important premise to raise the two-way trade turnover by 2020 from the ex- pected $70 billion (at the Vietnam-Korea Joint Statement in 2013) to $100 billion. This figure was set at the meeting between State President Tran Dai Quang and Korean President Moon Jae In last month on the side-lines of the Apec Summit 2017 in the cen- tral city of Danang. Nguyen Phu Binh, the first ambassador of Vietnam to Korea and former deputy min- ister of the Ministry of Foreign Affairs, said that besides economic achievements, the two countries could expand cooperation in culture, tourism, and education. In 2017, there are estimated at two million Korean visitors to Vietnam, 0.7 million Vi- etnamese visitors to Korea, 0.2 million Vietnamese students and people living in Ko- rea. Ryu Hang Ha, chair of the Korean Chamber of Commerce and Industry (KoCham), confirmed that investment and trade relations between the two countries have become increasingly important for both sides. Vietnam is an attractive destination, a founda- tion for Korean investors to enter Asean markets and export to the EU and the US. Nguyen Van Toan, vice chair of the Vietnam Association of Foreign Investment Enter- prises (VAFIE), said that the trade balance has not been equal. Vietnam has been run- ning a trade deficit, despite the Vietnam-Korea Free Trade Agreement bringing opportunities for both sides. It shows that the exploration capacity of Vietnamese enterprises in Korea remains weak. However, he believed that a Korean investment huge wave into Vietnam is ab- solutely possible with the emergence of new sectors, new technology, and skills.

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"To evolve sustainable trade and investment relations, Korean investors should invest into sectors Vietnam is promoting in the near future, such as high-tech agriculture, processing agri-fishery products for export, boosting technical transfer for Vietnamese firms and focusing on environmentally friendly projects," Toan said. http://www.vir.com.vn/vietnamese-korean-trade-celebrates-quarter-century-mile- stone.html

State divests capital 26/DEC/2017 INTELLASIA| NHIP CAU DAU TU from industrial parks In 2017, there were three large state capital sales by leading industrial park developers including successful auctions at higher price than the starting price but some cases were unsalable. What is the main cause? And how will the market be in the following year? In May 2017, Viglacera Corporation (VGC) started a bumper year for sale of state cap- ital at large industrial park development companies with the registered volume to be

FINANCE three times higher than the volume offered for sale. The strong demand pushed the av- erage winning price to nearly 16,200 dong per share, up more than 30 percent from the starting price. With the total successful sales volume of 120 million shares through the auction, the State earned more than 1.9 trillion dong from the reduction of ownership rate at VGC. This is considered as the most successful capital sale at VGC because pre- viously, in 2014, the company only sod 25 percent out of the total of 76 million shares offered for sale. Following VGC was the successful equitisation of the Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO IDC) through the initial public offering (IPO) in October 2017. IDICO also attracted the attention of investors when the bid volume was five times higher than the volume offered for sale, bringing about average winning price to be 33 percent higher than the starting price, to nearly 24,000 dong per share. Only in this IPO, the State earned 1.320 trillion dong after successfully selling 55 million shares. Analysing the success of the divestments at VGC and IDICO, Doan Thi Thanh Truc, Analysis director at Dragon Capital Securities Company mentioned six most influenc- ing factors divided into two groups: internal and external. The inner group consists of (1) the small scale of the offering; (2) fair valuation of stocks; (3) core business entering growth cycle i.e. construction material industry and industrial park property; (4) the openness of information such as organisation of roadshow, promotion; (5) a rather im- portant thing is that the State has a clear roadmap of capital divestment below the gov- erning level, which will obviously increase the attractiveness of the stock. Meanwhile, external factor is the choice of time when the source of capital in the stock market is abundant. To see the impact of these factors, Truc analysed the case of VGC. At the first IPO in 2014, VGC offered for sale 76 million shares in the IPO but only successfully sold 25 percent, mobilising 200 billion dong in the absence of a vibrant stock market. However, with the openness of information and the vibrant development of the stock market in 2016 and 2017, VGC succeeded in the two following issuances, earning 418 billion dong in the second phase with the winning price of 14,000 dong per share and the third phase with higher winning price of 16,000 dong, earning over 1.9 trillion dong. VGC has been very open in creating opportunities for potential investors to study via roadshow, factory visits as well as provision of information. In addition, the stock left more price increase room for investors when the valuation via P/E and P/B is not too high, with an average of 10 times and 1.3 times, Tonly. While VGC and IDICO successfully offered for sale, the situation at Investment and In- dustrial Development Corporation (Becamex IDC) was unfavourable. In November 2017, when the industrial park tycoon carried out equitisation, this was considered as a bomb because Becamex IDC is the company that holds the largest industrial park area in the country. However, Becamex IDC only sold six percent out of the total of 311 shares offered for sale, earning 587 billion dong from this auction. Explaining the too low subscription level at Becamex IDC, Truc said that is because of

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the imbalance in information along with rather high valuation here. Becamex IDC was priced at 30 times and the P/B was three times higher compared to the industry's aver- age at just eight times and about one times respectively. Besides, the fact that the State still holds high level of dominance in these units also limits the attractiveness for in- vestors, especially financial investors. State shareholder at businesses is also a factor influencing the success of the capital di- vestment, according to a real estate analyst at a leading Vietnamese investment fund. VGC and IDICO have common characteristics i.e. they are owned by the central au- thority Ministry of Construction. Therefore, it has momentum to divest capital in the most effective way and get information transparency. In addition, Becamex IDC is owned by the local authority, lacking the above mentioned motive. Whatever it is, it is impossible to deny that industrial park property will still be a fertile ground in the context of Vietnam's continued attraction of Foreign Direct Investment (FDI) in the long term. Given higher entry barrier and long development period, KIS Securities Company (KIS) supposes that this will be the competitive advantage in the FINANCE medium term for businesses that still have land budget for rent in the near future. In addition, thanks to lower cost and site clearance compared to the North, industrial parks in the South have more advantages than the North. Opportunities still remain for investors interested in industrial park property segment when two large companies among five leading companies including Sonadezi Indus- trial Park Development Corporation (SNZ) and Vietnam Rubber Group (VRG) are likely to continue divesting in 2018. SNZ is held by the local government while VRG is managed by the central government. Currently, the state shareholder is holding more than 99 percent in SNZ. Having failed to mobilise capital in 2015 as the market was less volatile, it is more likely that the State will continue divesting the remaining 34 percent stake, equal to 130 million shares from the previous stage to take advantage of bustling atmosphere in the stock market. Holding a large amount of land whose growth potential sometimes reaches nearly 3,000 hectares of leasable land, SNZ is quite attractive in the current valuation with the respective P/E and P/B of 14 times and 1.2 times. VRG is a quite special case when ranking the second only in industrial park area but is holding in its hand 475,000 hectares including land that can be converted into indus- trial park. VRG may soon organise the IPO which was cancelled at the end of this year. The attractiveness of land fund was so large but VRG is also a challenge for investors because there needs to mobilise a very large amount of money to own significant div- idend at the business having chartered capital of 40 trillion dong. However, regardless of the scale or state shareholder, the general formula for a suc- cessful capital divestment of the state, especially large scale companies, is there needs to pay attention to four factors including (1) valuation; (2) capital divestment roadmap; (3) specific business plan; (4) information sharing. These will be important factors to increase the attractiveness of SOE divestments.

ICT revenues exceed 26/DEC/2017 INTELLASIA| THE SAIGON TIMES VND2,100 trillion Vietnam's total information and communications technology (ICT) revenues in the year to date have exceeded VND2,136 trillion (US$94 billion), up 9.34 percent com- pared to the same period last year, heard a conference held by the Ministry of Informa- tion and Communications (MIC) on Friday. ICT total revenues include VND13.9 trillion from the media, VND18.9 trillion from publications, VND7.5 trillion from television services and VND20.14 trillion from postal services. The communications sector makes up about 15 percent, or VND352.2 trillion, but the information technology sector accounts for nearly 85 percent, or VND1,723 trillion, of the total. ICT contribution to the State budget is estimated at nearly VND95 trillion, meeting 104.3 percent of the annual plan. The country has 116 mobile cellular subscriptions per 100 people, 12 internet subscrip- tions, 52.8 mobile broadband subscriptions and 5 fixed telephone subscriptions.

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Some 9.3 percent of Vietnamese households use fixed telephone service and 28.35 per- cent have access to the internet. Mobile network and television service has covered 95 percent and 90 percent of the country respectively. According to MIC, major ICT firms have met their full-year plans and achieved en- couraging growth despite a tough ICT market. Revenues of Viettel, VNPost, VNPT and MobiFone have exceeded the full-year plans by 3 percent, 6 percent, 6.5 percent and 0.1 percent respectively. Deputy general director of Viettel Group said at the conference that revenues from ba- sic telecommunication services like phone calls and SMS have declined. With more than 98 million subscriptions, including 32 million overseas subscriptions, Viettel's revenues have totalled VND249.3 trillion, bringing in a total pre-tax profit of nearly VND44 trillion. The military-run telecom giant has invested in 10 foreign countries. According to VNPT Chair Tran Manh Hung, the group's total revenues have reached nearly VND144.8 trillion this year, up 7 percent year-on-year, with total profits esti- mated at more than VND5 trillion, up 20 percent. VNPT now has more than 34 million FINANCE phone and 4.6 million internet subscribers. Data of MIC shows MobiFone's total revenues and pre-tax profits this year would hit more than VND44 trillion and VND5.6 trillion respectively. http://english.thesaigontimes.vn/57694/ICT-revenues-exceed-VND2100 trillion-.html

530 SOEs equitised in 26/DEC/2017 INTELLASIA| VIETNAMNET the last five years The list of SOEs (state owned enterprises ) subject to equitisation is long with many well-known names. Deputy prime minister Vuong Dinh Hue recently signed a decision approving the eq- uitisation plan of a number of PetroVietnam's subsidiaries, including PV Power. PV Power is the second largest electricity supplier in Vietnam with charter capital of VND21.774 trillion and stockholder equity of VND33.55 trillion. Under the approved equitisation plan, PetroVietnam, after divestment, will hold 51 percent of charter capital in PV Power, while 29 percent of shares will be sold to stra- tegic investors. The plan has new changes compared with the plan made public in April 2017, under which PV Power would sell a 4 percent stake to the public and workers and 45 percent to strategic investors. It was expected to collect $600-700 million. The long-awaited sale of stake of Sabeco, the largest Vietnamese brewer, is slated for December 18. The number of shares for sale is high, 343 million, and if they are sold, the State will be able to collect VND110 trillion. "The annual profit made by Sabeco is VND4 trillion. The amount of money investors have to pay to acquire a Sabeco stake will be very large, so they will have to think care- fully about the deal," said Truong Thanh Hoai, head of the Industry Department. Government urged to amend Decree 91 Tony Foster from Freshfields Bruckhaus Deringer said at a workshop on SOE equiti- sation held by the NA's Economics Committee recently that it is necessary to fix exist- ing problems to be able to speed up equitisation. He said many big brands such as MobiFone, PV Oil, Vinachem, Binh Son Petrochemi- cal, Vietcombank, Habeco and VInamilk had to struggle to sell a stake in their compa- nies. Foster said the problem lies in the differences in governance. He said in most cases, strategic investors hope they can acquire a large stake to have a decisive voice in enterprises in which they invest. However, Decree 91 sets provisions on restrictions on stake transfers. Tran Dinh Thien from the Vietnam Economics Institute said that the number of 530 eq- uitised enterprises in the last five years does not fully reflect the impact of economic restructuring. "With the holding rate of 8 percent of equitised enterprises, private investors won't have the right to join the enterprises' management board. This explains why few pri- vate businesses are interested in an equitised stake," Thien commented.

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National Strategy on 26/DEC/2017 INTELLASIA| VOV5 Green Growth The National Strategy on Green Growth, adopted by the prime minister in 2012, iden- integrated into local tifies green growth as the most appropriate way to reform Vietnam's growth model development and restructure the national economy. Green growth also defined as a key factor in ensuring sustainable growth and rapid, effective and sustainable economic development. The prime minister adopted a green growth action plan until 2020 detailing activities needed to realise the strategy. The plan focuses on restructuring energy, industry, agro-forestry, transportation, construction, the environment, science, and technology sectors. 40 cities and provinces nationwide have developed their own green growth plans. Tran Trung Hieu from the Central Institute for Economic Management (CIEM) said "Provinces have issued plans to promote green growth, but have not integrated green growth into their socio-economic development plans. They need guidance from the

FINANCE Ministry of Planning and Investment to identify goals, targets, and a budget for this work." Localities have promoted links between sectors and regions, involved the community, and identified resources to carry out the Green Growth Strategy. Doctor Tran Thi Hanh of the Central Institute for Economic Management said "The Ministry of Planning and Investment needs to set out green growth criteria when eval- uating investment priorities and identifying investment resources for local socio-eco- nomic development plans. Green growth criteria should also be included in appraising public investment projects." Promoting green growth will help Vietnam improve its people's lives and local growth, increase national economic competitiveness, boost economic restructuring, and reduce poverty. http://english.vov.vn/economy/national-strategy-on-green-growth-integrated-into- local-development-364308.vov

Forthcoming Labour 26/DEC/2017 INTELLASIA| THE SAIGON TIMES Code amendments Forthcoming amendments to the Labour Code will help reduce business costs but still help cut business costs guarantee the rights of employees, heard a conference in Hanoi City on December 21. Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI), was cited by An Ninh Thu Do news website (anninhthudo.vn) as saying that creating new jobs is a decisive factor behind economic growth. Micro, small and medium enterprises play a crucial role in job creations, he noted. Vi- etnam has around 120,000 startups a year, with each hiring 10 people, and this means they generate 1.2 million new jobs. That is not to mention the companies that expand operations also increase employment. A survey by VCCI shows around 70 percent of local enterprises intend to expand pro- duction in the near future. Therefore, the annual target for 1.8 million new jobs is at- tainable. Tran Thi Lan Anh, director of VCCI's Bureau of Employer Activities, said the upcom- ing amendments to the Labour Code aim to protect the fundamental rights and re- sponsibilities of citizens in the fields of labour, labour relations and labour markets by institutionalising the provisions of the 2013 Constitution. Labour Code revisions, if any, should allow employers to terminate labour contracts unilaterally if their employees are absent from work for more than five days without proper reasons. The code should also recognise the textile and apparel industry as a labour sub-leasing one, according to a representative of the Vietnam Textile and Ap- parel Association. The association proposed increasing overtime hours to no more than four hours a day, and no more than 400 hours a year. Mai Duc Thien, deputy head of the Department of Legal Affairs, said the Ministry of Labour, Invalid and Social Affairs would submit draft Labour Code revisions to the National Assembly in 2019.

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MoIT announces next 26/DEC/2017 INTELLASIA| VIR batch of hot M&A On the heels of the billion-dollar auction of Sabeco, the Ministry of Industry and Trade opportunities (MoIT) has just released a list of 10 large enterprises in the industry and trade sectors to conduct state divestment in 2018, attracting the attention of foreign and domestic in- vestors. Tran Kim Oanh, director of Vietrade's Centre for Industry and Trade Investment Pro- motion at MoIT, said that the list of the 10 enterprises to be divested by MoIT in 2018 contains many big names. Specifically, MoIT is expected to divest at least 24.86 per cent from Petrolimex, 46.75 per cent from Vietnam Electricity Construction Joint Stock Corporation (VNE), 63.54 per cent from Machines and Industrial Equipment Corporation (MIE), 53.48 per cent from Vietnam National Textile and Garment Group (Vinatex), and 57.92 per cent from Vietnam Steel Corporation (coded TVN). The list contains firms from various sectors, such as Foreign Trade Freight Forwarding

FINANCE and Warehousing JSC (Vietrans), general Import-Export and Construction JSC, Viet- nam Plastic Corporation (Vinaplast). Of these, investors are mostly interested in sector-leading enterprises like Petrolimex, Vinatex, TVN, and bigger corporations. However, the representatives of MoIT said that the remaining firms on the list are all operating in highly potential sectors, includ- ing processing and manufacturing, construction, agricultural and fisheries produc- tion, as well as warehousing and logistics. Regarding the 2018 M&A market, Nguyen Quoc Viet, deputy general director of AVM Vietnam which provides professional services on investment and business, pegs high hopes on the M&A trend in the industrial sector and said that M&A activities are abuzz, posting significant figures. Viet said that the industrial sector ranks second among the top five sectors leading the Vietnamese M&A market in 2016 and 2017. Notably, there were 269 M&A deals with a total value of $1.1 billion in this sector in 2016, the brunt of which (118 deals) took place in the consumer goods and retail sector. "Loosening the ownership limit for foreign investors at public companies will enable the M&A market, especially in the industrial sector," assessed Viet. Vu Ba Phu, director general of Vietrade under MoIT, assessed that there are shortcom- ings in the quantity and nationality of investors taking part in the M&A market as al- most all foreign investors come from Asia (mainly Japan, South Korea, and Thailand), keen on taking a slice from the growing consumer goods, financial services, distribu- tion, retail, construction material, and chemicals sectors. However, North American and European investors have only taken part in such fields as oil and gas as well as consumer goods. Thereby, it is necessary to spur promotion activities and attract investment from these regions. http://www.vir.com.vn/moit-announces-next-batch-of-hot-ma-opportunities.html

Condotel oversupply 26/DEC/2017 INTELLASIA| VIETNAMNET due to massive While investors remain optimistic about condotels, seeing promising profits, experts investment are concerned about the rapid development of the real estate product. Stephen Wyatt, general director of JLL Vietnam, in an interview to the Vietnam Eco- nomic Times, said condotels have become an increasingly popular asset type. Many condotel projects have reportedly achieved positive sales rates of up to 70-80 percent within just six months of launching. Nguyen Tri Hieu, a renowned banking expert, said there are many latent risks in the market segment because of unclear legal mechanisms and the sharp increase in supply just after two years. "The supply of condotels increased too sharply in 2016-2017, while the demand is not high enough," Hieu said. "This will lead to a demand-supply imbalance and make it difficult for investors to sell products." Also, it is difficult to classify the product, so there is no legal framework for the trading of condotels.

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Some investors have committed to give land use right certificates (red book) to condo- tel buyers on delivery. However, if buyers resell condotels, their sales contracts may not be notarised. Duong Thuy Dung from CBRE Vietnam said that besides the legal risks, the oversup- ply is worrying. Most condotels are bought by investors to lease. They rush to buy be- cause of the profits, while ignoring legal risks. However, Dung warned that the number of tenants will not increase indefinitely, and the number of condotels has risen too quickly. In the sea city of Nha Trang, for example, the number of travellers has been increasing rapidly, which means high demand for rooms. However, the number of condotels has risen even more quickly. "Will condotels continue bringing the expected profit to investors if the gap between demand and supply becomes wider? This is a matter of concern," she said. According to Dung, there are four popular real estate products for investments villas, condotels, shophouses and streetfront houses. FINANCE Shophouses and streetfront houses in central areas of cities promise high profits with prices increasing rapidly. However, the demand for leasing shophouses and streetfronts in coastal areas is very low, while it is not easy to sell the products. The great advantage for investors is that condotels don't require a high investment rate. However, the risks lie in the lack of legal framework and the stiff competition be- cause of oversupply. Hieu said condotel owners say they have attractive profit of 8-10 percent per annum. However, that has not been independently confirmed. http://english.vietnamnet.vn/fms/business/192269/condotel-oversupply-due-to-mas- sive-investment.html

MA in real estate 26/DEC/2017 INTELLASIA| VNS sector to increase in Merger and acquisition (M&A) deals in Vietnam's real estate sector are forecast to in- 2018 crease in 2018, driven by the market's significant potential, experts said. Dang Xuan Minh, general director of AVM Vietnam & Vietnam M&A Forum, said the domestic property market was embarking on a second wave of M&A, after 2015, which would be fuelled by the hastened privatisation of State-owned enterprises and the increasing interests of foreign investors. The M&A market was expected to touch $8 billion this year, of which the value of property deals accounted for the largest part, Minh said, adding average value was some $50-60 million per deal. M&A deals in the real estate sector were estimated at some $2 billion this year. According to Phan Xuan Can, chair of property consultancy firm Sohovietnam, the an- nounced M&A deals in the real estate sector were just the tip of the iceberg, and many deals were not disclosed. Can estimated that the value of M&A deals in the real estate sector which were an- nounced accounted for just 20-30 per cent of the real value. In 2018, many mega deals were expected to take place, mainly in the segments of apart- ment, office, tourism property and urban land, Can said. According to Pham Thanh Hung, the rapid international integration of Vietnam will have significant impact on the real estate market. Hung said the property market is attracting foreign investors, adding that there was an increasing wave of investment in Vietnam's property market from Japan, Korea, Singapore and China, as well as Germany and the United Kingdom, especially in the high-end segments. Duong Thuy Dung, director of Research and Consulting, CBRE Vietnam, said M&A in the real estate market was also fuelled by the improvement in market transparency and simplification of procedures. The M&A trend would continue in the future and this would infuse fresh capital into the market, Dung said. Statistics of batdongsan.com.vn which had an average 50 million page views per

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month, showed there were a large number of online searches related to Vietnam's property market in the apartment and villa segments in Hanoi and HCM City from Singapore, the United States, Japan, South Korea and Australia. http://bizhub.vn/property/ma-in-real-estate-sector-to-increase-in-2018_290961.html

A modest end to 2017 26/DEC/2017 INTELLASIA| VIR transactions sets up This year's merger-and-acquisition movement is coming to a somewhat quiet close in big for 2018 terms the fourth quarter of completions, but deals that have been stuck in due dili- gence or with approvals are finally moving forward. This year's merger-and-acquisition movement is coming to a somewhat quiet close in terms the fourth quarter of completions, but deals that have been stuck in due dili- gence or with approvals are finally moving forward. Activity was led by Chinese, Sin- gaporean, Korean, and Japanese investors, and despite a limited supply of opportunities investor appetite has not receded for income-producing, standing assets

FINANCE across all real estate sectors. Even with few opportunities, prices are holding firm and the amount of cheap offshore capital has not compressed cap rates more than 10-25 basis points over deals agreed to in 2015, keeping valuations sensible. In 2018, we will see local entities continuing to feel the credit restrictions as banks con- sider their risk-weighting and exposure to real estate, leaving the private sector to pick up the shortfall. Investors should look to capitalise on this new lending sensibility and target groups having to re-work their capital supply and find sources of finance. Inves- tors will need to move fast as the current rates will naturally compress when the chequebooks from the region start to open up. An opportunity arising out of this more moderate lending atmosphere is that the standing assets held by local groups and international players will become candidates for monetisation. With the lack of transparent opportunities for fully-owned assets, in- vestors should look for opportunities to take controlling positions in local holding companies, as well as considering smaller equity opportunities in well-managed and structured businesses. Investors taking out a large shareholder will do well to enshrine drag-along rights; or with smaller equity deals, they should ensure well-drafted put options are agreed upon. As always, those that do the basics well holding each deal to the same standard they would in their core markets will do well in Vietnam and see real sustainable value generated. Investor confidence is founded on good demand in critical segments of the market; in 2018 the office sector will continue to perform well and a burgeoning industrial seg- ment is maturing and has seen unprecedented levels of interest from investors in 2017. The office sector in HCM City will fall to extremely low vacancy, pushing rents to heights not seen since 2009, and Cushman & Wakefield estimate in the extreme this could spell an increase of 20 per cent for for some grade A properties in 2018. This will have a dampening effect on leasing transactions as limited space is available. The mar- ket will therefore see re-gears and mid-term rent reviews becoming commonplace in the market for the first time ever. Hanoi's transaction volumes will continue to strengthen but rents will not necessarily rise as much, with an estimated 3-5 per cent rise above 2017, essentially in line once standard escalations are taken into account on existing and new leases. Savings on ex- isting rents are still likely for many occupiers and the west and midtown areas of Ha- noi will still be competitive from landlords keeping the market average down. Hanoi's central business district (CBD), which is now frozen in terms of new development, will see faster rent growth and low vacancy, which will also push some occupiers out of town. Evolving technology, infrastructure, and non-designated workspace concepts for mul- tinational corporations (MNCs) in Vietnam may just push some occupiers from more expensive HCM City to Hanoi, and perhaps further to Danang or Binh Duong. The workforce wants to be in HCM City, but the city is now less competitive on a national or regional basis and MNCs will look to leverage cheaper space in alternative cities in-

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side and outside of Vietnam. This large rent increase in HCM City is a result of high land prices restricting good commercial development levels over the last few years meaning there will be an undersupply through 2018 and some of 2019. The pressure will however diminish in 2019 and 2020, when a glut of supply will come online, both in the CBD and in previously less considered areas like Thu Duc, District 9, and Dis- trict 2's Thu Thiem area. The industrial and logistics sector was among the top performers across the Vietnam- ese property market in 2017, and this trend is expected to have more growth in the 2018-2019 period. Do not forget, this is despite the unconcluded Trans-Pacific Partner- ship. According to our statistics, land prices and warehouse rents in HCM City gained a growth of 2.5 per cent in 2017 compared to a marginal increase in Hanoi. However, most of the well-established industrial parks (IPs) gained 5 per cent growth. The larg- est growth experienced across a region in the north was Hai Phong, averaging 4 per cent on-year, and in the south, it was Dong Nai at 5.9 per cent. FINANCE In the extreme, Cushman & Wakefield have experienced some asking rents increase by as much as 10 per cent for the best IPs. Quality will continue to outperform and there is willingness from occupiers to pay higher prices, but only if they can see genuine im- provement in park infrastructure, management standards, and construction quality. Investors and occupiers still have a challenge in finding clean sites and opportunities, and therefore some restrictions will remain on the volumes of transactions in 2018. If the quality of supply and willingness to transact in more sophisticated transactions continues, 2018 will be a record year in industrial land and building take-up nation- wide. Overall, we have a positive outlook across the commercial sectors in 2018 with quality assets in high demand. Occupiers and investors need to be prepared to battle for the best opportunities. http://www.vir.com.vn/a-modest-end-to-2017-transactions-sets-up-big-for-2018.html

Foreign firms taking 26/DEC/2017 INTELLASIA| VIR control of Vietnamese Out of 19 sectors invested in by foreign firms, processing and manufacturing made up M&A market the highest proportion, with $186.1 billion of registered capital, equivalent to 58.4 per cent of $318.72 billion of total investment capital accumulated until the end of 2017. In- dustrial production is evaluated as an attractive investment channel so far. A report from the Ministry of Industry and Trade (MoIT) shows significant move- ments in the industrial sector. The index of industrial production (IIP) increased by an annual average of 7 per cent since 2012. It raised by 9.3 per cent in the first 11 months of this year against the 7.4 per cent in the same period last year. Accumulated until December 2017, as many as 19 out of 21 sectors received investment from foreign partners. Of these, as much as $186.1 billion flowed into processing and manufacturing industry, accouting for 58.4 per cent of $318.72 billion of the total reg- istered foreign direct investment capital. Additionally, in 2017, the Vietnamese M&A market saw many deals in the industrial sector, such as those ones between SCG (Thailand) and Vietnam Construction Materi- als Corporation (VCM), CJ Group (South Korea) and Cau Tre Export Goods Processing JSC, Earth Chemical and A My Gia JSC, Daesang Corporation (South Korea) and Duc Viet Food JSC, and ThaiBev (Thailand) and Sabeco. SCG fully acquires VCM In March 2017, Siam Cement Group (SCG) acquired 100 per cent of the shareholdings (equivalent to $156 million) from the shareholders of VCM. Thereby, the enterprise value of this transaction was about $440 million, including net debts and additional in- vestment to improve the efficiency of the acquired assets. VCM was established in 2008, producing cement bearing the brand Starcemt, Starmax, and Starpro, and exports clinkers to Bangladesh, Malaysia, and the Philippines. As of July 2016, it was employing over 300 workers. VCM has a capacity of 3.1 million tonnes a year. According to SCG, the plant has the

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potential to be more efficient. After the transaction, the total cement production capac- ity of SCG in the Asean would be 33.5 million tonnes a year, with its Thai-based pro- duction capacity at 23 million tonnes. Earlier, on February 28, SCG's compatriot Siam City Cement finished the purchase of LafargeHolcim's 65 per cent stake in cement producer LafargeHolcim Vietnam, be- coming the new strategic foreign shareholder in the company, while state-owned Vi- etnam Cement Industry Corporation (Vicem) holds the other 35 per cent. CJ Group dominating Vietnamese food sector In May 2017, the shareholders of Cau Tre Export Goods Processing JSC ratified the de- cision to change the company's name to CJ Cau Tre. Earlier, then second-biggest shareholder of the company, Saigon Trading Group (SAT- RA), announced the public auction of a 20 per cent stake in the company. Two subsid- iaries of CJ -- CJ Foods Vietnam Ltd, and CJ CheilJedang Corporation -- bought the stake and raised CJ's total holding in Cau Tre to 71 per cent. CJ Cau Tre produces ready meals and frozen food, such as spring rolls, tea, raw meat, FINANCE and sausages. As its products, such as BBQ sauce, started appearing more aggressively on supermarket shelves in Vietnam, CJ has also been on a roll with its M&As. In early 2016, it bought the Ong Kim kimchi brand. Recently, another Vietnamese company also changed its name to bear the CJ mark. At the end of April, CJ finished the transaction of $13.4 million to acquire 64.9 per cent of food processing company Minh Dat and changing its name to Minh Dat CJ. Minh Dat has been holding the largest market share for meatballs and fishballs in Vietnam. $0.66 million A My Gia JSC acquired for $80 million In March 2017, Earth Chemical -- a multi-sector company from Japan -- announced spending $80 million to acquire a 100-per-cent shareholding in A My Gia JSC, which focuses on household chemicals. A My Gia JSC was established in July 2006 with $0.66 million of registered charter capital. In 2014 and 2015, the revenue of A My Gia was $14.5 million and $15.43 million, re- spectively, while net profit was $1.38 million and $1.62 million. Thai Beverage spends $4.8 billion acquiring Sabeco In an auction on December 18, 2017, Vietnam Beverage Co., Ltd, a Vietnam-incorpo- rated unit of Thai Beverage, bought 343 million Sabeco shares, equivalent to 53.58 per cent, at VND320,000 ($14.09) apiece. This means that Vietnam Beverage spent VND109 trillion ($4.8 billion) for a controlling stake. The second buyer in the auction is a Vietnamese individual from Hanoi. He owns 0.003 per cent of Sabeco, after spending VND6.4 billion ($281,600) for 20,000 shares. MoIT still holds 36 per cent of the stakes after the sale. In a note prior to the auction, analyst Soh Lin Sin from Phillip Securities (Singapore) said that the purchase is in line with Thai Beverage's goal to boost its presence in the Asean. The Thai beer giant recently forked out $742 million to take over two leading beer brands in Myanmar. http://www.vir.com.vn/foreign-firms-taking-control-of-vietnamese-ma-market.html

Vietnam tourism lags 26/DEC/2017 INTELLASIA| THE SAIGON TIMES behind other Asean Despite high growth in the past few years, Vietnam's tourism still lags behind other nations Asean countries, especially in terms of competitiveness, due to poor products and strict visa requirements, heard a seminar in Hanoi City last Friday. According to the Vietnam National Administration of Tourism, the country welcomed 10 million international tourists and generated revenue of VND400 trillion (US$17.62 billion) last year. The respective figures are expected to rise to 13 million and VND500 trillion this year. Luong Hoai Nam, deputy general director of Vietstar Airlines, told the seminar that some key indicators of Vietnam's tourism were positive but the overall ranking re- mained poor. Particularly, the World Economic Forum (WEF)'s Travel and Tourism Competitive- ness Index put Vietnam at 34th in natural resources, 30th in cultural resources and 37th

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in tourism workforce. However, regarding the overall hospitality industry, WEF put Vietnam at 67th among 136 countries in tourism competitiveness. With 10 million international arrivals last year, Vietnam was still inferior to Thailand with 32.6 million foreign tourist arrivals, Malaysia with 26.8 million and Singapore with 16.4 million. Nam attributed the tourism underdevelopment to a lack of qualified products, saying there should be theme parks, for example, which could retain tourists for an additional half to a day and increase their spending by 10 percent excluding accommodation ex- penses. Nguyen Quoc Ky, chair and general director of Vietravel, pointed out shortcomings of local tourism products such as inconsiderable number of products, overlapping prod- ucts in different localities and lack of shopping centers and amusement parks to in- crease visitors' spending. Despite an increase in the number of international guests, their average spending tends to fall over the past years. FINANCE According to a survey of the Vietnam National Administration of Tourism in 2014, spending of a foreign visitor to Vietnam totalled some $1,100, below $1,300 ten years earlier. In 2014, an international tourist to Vietnam spent $125 a day on average, below some other Asean countries such as Thailand (US$150) and Singapore (US$153). Visa policy a stumbling block In addition, policy shortcomings on visa application and immigration procedures are other obstacles to tourism sector growth. Only visitors from 23 countries to Vietnam are exempted from visa application and they enjoy a shorter visa-free stay than in other countries, reducing the competitive- ness of local tourism and the added value of the sector. Meanwhile, Thailand has offered visa exemptions for tourists from 61 countries, Ma- laysia 55 countries and Singapore 157 countries. Moreover, Vietnam's online visa and visa on arrival services are as not as good as in other countries. As for solutions to develop the sector, Nguyen Dinh Cung, president of the Central In- stitute for Economic Management, said the country should offer visa exemptions for more countries. Tourists from developed countries do not care about visa application fees, but lament complex visa issuance procedures, said Nam. Therefore, Vietnam should relax visa requirements, exempt visas for tourists from more countries, develop online visa service and simplify visa on arrival procedures. http://english.thesaigontimes.vn/57689/Vietnam-tourism-lags-behind-other-Asean- nations.html

Shoe industry gears 26/DEC/2017 INTELLASIA| VNS up to go hi-tech A dramatic change in market trends and the "fourth" industrial revolution are forcing Vietnamese enterprises to gradually apply new technologies to production. Using the technology, businesses can increase their value. Many Vietnamese compa- nies have started to invest in machines with modern technology to automate many production stages to increase productivity, improve quality and save time and money. According to the Vietnam Leather, Footwear and Handbag Association (LEFASO), leather footwear has been a key industry in Vietnam for many years, creating jobs for more than one million workers nationwide. The export turnover of leather and footwear reached more than $16 billion last year. Turnover is expected to reach $17 billion this year, a year-on-year increase of more than 10 per cent. The world trend is changing and the new industrial revolution has made a dramatic change in terms of labour productivity and science and technology. Low labour cost is no longer an advantage, it is gradually moving to knowledge econ- omy. According to leather workers, many big companies in Vietnam have invested in ma- chines, moving to automation.

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Viet A Chau Investment Development Corporation in HCM City is investing in tech- nology to meet development requirements. The corporation has invested in scanners and 3D printers to serve moulding. The in- vestment has helped businesses reduce time to 10 days for moulding -and to signifi- cantly reduce delivery time. Thai Binh Shoes has been equipped with a large amount of new machinery for sample development and production. They include programmable sewing machines, compu- terised embroidery machines and laser cutting machines to automate production stag- es. This helps the company reduce costs, increase labour productivity and reduce worker risks in several production stages. According to experts, while the labour productivity of domestic enterprises is only four to six pairs of shoes per person per day, those of foreign-invested enterprises has reached 16-18 pairs a day and is expected to increase to 20 pairs next year. This difference has cost domestic enterprises big losses compared to foreign enterpris- FINANCE es in terms of export turnover and added value.Bnews.vn quoted Phan Thi Thanh Xu- an, the footwear association's secretary, as saying that modern management methods and technology would solve the problem of labour productivity and the growth of the footwear industry. This investment required a lot of capital, but it would improve productivity and im- prove product quality, she said. Nguyen Duc Thuan, association chair, said that it was important to improve the qual- ity of human resources as well as strengthening the application of science and technol- ogy in production. Despite the high export turnover, the value of the footwear industry is still low, ac- counting for only 20-25 per cent of the value chain. Limitation on research and development has been a difficult problem for Vietnamese enterprises. Only by taking the initiative in research and development, Vietnamese en- terprises can increase their value over the whole value chain. Recently, the Italian Trade Agency and the shoemakers' association inaugurated the It- aly-Vietnam Footwear Technology Centre at the Lefaso Centre in the southern prov- ince of Binh Duong. Italy will assist Vietnamese companies improve product quality through technology transfer, consultancy and training of human resource. The centre is equipped with modern machinery and equipment imported directly from Italy and other European countries, allowing small and medium-sized enterpris- es in the leather-footwear industry to approach, research and develop new products. http://bizhub.vn/news/shoe-industry-gears-up-to-go-hi-tech_290968.html

Vietnam instant 26/DEC/2017 INTELLASIA| VIETNAMNET noodle market Fifty instant noodle manufacturers exist in Vietnam, but the market is controlled by controlled by three big three big players, namely Acecook, Asia and Masan. brands A survey by Kantar Worldpanel showed that instant noodles are one of the most reg- ularly bought fast-moving consumer goods, about 18 times a year on average. This means that consumers buy instant noodle products more than one time each month. The market has grown by 8 percent in value and 3 percent in quantity in urban areas, higher growth rates than 2016. However, the rural market saw decreases in both value and quantity. Nguyen Huy Hoang from Kantar Worldpanel said that the Vietnamese instant noodle market can grow further, so it is attracting foreign investors who sell in urban areas and want to expand in rural areas. In urban areas, foreign brands are holding market share of 60 percent. Acecook alone holds 50 percent of market share. Domestic brands are dominating the rural market with 60 percent of market share. Joining the Vietnamese market in 1993, the Japanese manufacturer provides 3 billion

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packages of noodles each year. Acecook Vietnam became well known among Vietnamese consumers in 2000 with the launch of Hao Hao brand. For many years, Hao Hao has been seen as the 'instant noodle King' in the mid-end market segment. The brand has a high recognition level in Vietnam, known to 100 per- cent of consumers. Hao Hao products have been the best-sellers of Acecook, bringing 60 percent of reve- nue for the company. Acecook reported 5 percent growth rate in revenue in the first half of 2017 in compar- ison with the same period last year. Besides Hao Hao, the manufacturer also has many other brands, including Mien Phu Huong (for vermicelli), Pho De Nhat (pho noodle soup), Bun Hang Nga (soft noodles) and Hu Tieu Nhip Song (noodle with beef), which witnessed 7-12 percent growth rates. Joining the market after Acecook, Masan Consumer has made a big leap. It is called a FINANCE 'rising star' with market share increasing from zero percent to 21 percent in 2012, to 25 percent in 2015 and 24 percent in 2016. With Omachi brand targeting the high-end market segment and Kokomi and Sagami targeting the lower end, Masan's products are diverse which has helped it stay firmly in the second position in the market. Asia Foods with Gau Do (red bear) and Trung Vang (golden egg) brands hold 10 per- cent of the domestic market. Unable to compete with Acecook and Masan in the high-end market, Asia Foods tar- gets most low and mid-end consumers. The reasonable strategy plus the high budget for advertisements (VND150 billion) have helped Asia Foods gain the third position in the market. http://english.vietnamnet.vn/fms/business/192272/vietnam-instant-noodle-market- controlled-by-three-big-brands.html

Vietnamese 26/DEC/2017 INTELLASIA| VIETNAMNET conglomerates fall Besides Sabeco, a number of other leading Vietnamese enterprises in key business into Thai hands fields have been put under Thai control. With strong investments in Vietnam in the last five years, Thai investors have acquired many Vietnamese enterprises operating in promising business fields with high growth rates such as retail, agriculture, building materials and beer. ThaiBev, owned by one of the richest Thai billionairesCharoen Sirivadhanabhakdi is the most promising candidate capable of acquiring a 51 percent stake in Sabeco. If this happens, ThaiBev will have the right to control Sabeco. If Sabeco belongs to the Thais as predicted after the $5 billion deal, the number of Vi- etnamese enterprises bought by Thai investors in recent years will increase. Before Sabeco, TCC Holdings of the Thai billionaire took over Metro Cash & Carry Vi- etnam and the Phu Thai Group. Singaporean beverage conglomerates Fraser & Neave, after being put under control of TCC Holdings, spent hundreds of millions of dollars to increase its ownership ratio in Vinamilk, the leading Vietnamese dairy producer, from 11 percent to 19 percent. Central Group, another Thai giant conglomerate, spent $1 billion to acquire Big C Vi- etnam supermarket chain and take over Nguyen Kim home appliance chain, Lan Chi Supermarket, and Lazora, an e-commerce website. To date, Thai investors have had a 'colossal collection' of Vietnamese enterprises. In general, retail and consumer goods are the business fields that Thai investors target. However, they have also been eyeing other promising industries. SCG Group tends to focus on enterprises in the building material industry. In 2011, SCG spent $240 million to acquire prime Group, the largest Vietnamese tile manufacturer. In 2016, SCG spent $160 million to buy StarCemt, a cement manufactur- er, from Kusto Group. SCG is also the most promising candidate to hold a controlling stake in Binh Minh

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Plastics as the company has decided to lift the foreign ownership ratio ceiling to 100 percent. In the face of strong investment moves taken by SCG, Siam City Cement, a rival of SCG in cement manufacturer, has acquired a 65 percent stake of Lafarge Holcim, one of the largest cement manufacturers. Thai firms have also poured money into foreign direct investment projects. The Thai CP Group, for example, has set up CP Vietnam which is now the largest com- pany in the agricultural sector. It is leading in the animal feed and livestock markets with annual revenue of over $2 billion. After a series of M&A deals in the packaging and building material industries, SCG plans to develop Long Son petrochemistry complex at a cost of $5.4 billion in Ba Ria Vung Tau. http://english.vietnamnet.vn/fms/business/192388/vietnamese-conglomerates-fall- into-thai-hands.html FINANCE Japanese, Thai goods 26/DEC/2017 INTELLASIA| VIETNAMNET reach every corner of Several years ago, fans of Thai and Japanese goods had only several choices either buy- Vietnamese market ing the products carried across border gates, or going to a few select shops. But now, they can freely choose products at many specialised stores. A report from MOIT (Ministry of Industry and Trade) shows that the deficit in trade with Thailand in the first eight months of the year reached $3.5 billion. Thai products are available at 9,000 traditional markets, supermarkets and home ap- pliance distribution centers. In large cities, Thai goods account for 30-50 percent of the market share. There are about 100 retail points belonging to foreign invested supermarkets in Viet- nam, half of which belong to Thai investors. The others are run by world giants such as Lotte, Aeon and Emart. Metro alone has 19 retail points, while Big C has 32. Meanwhile, Japanese have been penetrating deep into Vietnam through big retail chains such as Aeon, Ministop, Family Mart, Tokyo Deli, Gyu Kaku, Oshaka Ohsho and 7-Eleven. The Sakura chain has opened 10 shops after six years in Vietnam, while Tokyo Life has 18 shops in Hanoi, two in HCM City and 35 in other provinces. Pham Chi Lan, a renowned economist, said Thai firms had been following a strategy to enter the Vietnamese market for a long time. Thai businesses understand that Vietnam, with high economic growth rate, young population and increasingly high consumption, will be a vast market once tariff barri- ers are removed. They have spent time studying Vietnamese consumer psychology and followed pro- fessional methods to win over customers. Vietnam imports a wide range of products from Thailand, from household electrical appliances to vegetable and fruits, and CBU cars and cosmetics. Vietnam also imports products which are locally made, such as household-use prod- ucts, computers and plastics. Minister of Industry and Trade Tran Tuan Anh once asked why Thais could bring their products to the Vietnamese market but do not do this with other Asean countries, in- cluding Indonesia and the Philippines. Analysts believe the most important reason is the large distribution networks that Thais have set up in Vietnam. Thai corporations like Central Group and TCC Group have spent big money to take over the largest distribution chains in Vietnam, paving the way for Thai products to enter Vietnam. Meanwhile, a branding expert commented that Thai and Japanese goods can thrive in Vietnam because manufacturers receive support from their government agencies. "Japanese agencies have set up dedicated divisions to support small and medium en- terprises in their country," he said.

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Ever upwards 26/DEC/2017 INTELLASIA| VN ECONOMIC TIMES There appears to be no end to the rise of convenience stores in Vietnam's retail market. South Korean conglomerate the GS Group, through its subsidiary GS Retail, has re- cently partnered with Vietnam's Son Kim Group to open the first GS25 convenience store, in HCM City in January, with Vietnam being its initial step into overseas mar- kets. This follows a wave of Korean culture finding popularity in Vietnam over recent years and rapid growth in its retail market. GS25's entry also makes it the first South Korean convenience store brand to jump into the increasingly fierce competition seen in the domestic retail environment, which represents a "boom time" for chains. Successive arrivals Convenience stores have taken off around Vietnam this year, with aggressive expan- sions by some foreign brands resulting in them now holding a combined market share of 70 per cent, according to the Ministry of Industry and Trade. Prior to GS25, Viet- nam's retail market was swayed by the lively arrival of the world's largest convenience

FINANCE store chain 7-Eleven, which launched its first outlet in HCM City in mid-June. Through a master franchise agreement with Seven System Vietnam, the chain aims to expand its network to 100 stores in major cities within the next three years and 1,000 nation- wide over the following decade. By establishing a joint venture, where the Son Kim Group holds 70 per cent and GS Re- tail 30 per cent, they will together be in charge of GS25 franchises in Vietnam. The joint venture targets opening more than 2,500 stores in the next ten years. The partnership follows the one between Son Kim and GS Home Shopping, another subsidiary of the GS Group, which began in 2012. GS25 is renowned as one South Korea's largest convenience store chains, accounting for around 30 per cent of the country's retail market. It's not difficult to see that GS25's arrival in Vietnam comes on the back of greater South Korean investment, with the country emerging as Vietnam's largest foreign investor, in addition to the rising number of South Koreans living and working in the country and its culture having an increasing influence on young Vietnamese. Convenience stores are the newest among the different types of retail channels, bol- stered by fast-moving and trendy products, according to Yun Ju-Young, COO of GS Retail. "GS25 uses the concept 'Your Way to Korea' as its main strategy in bringing a Korean atmosphere to Vietnam," Nguyen Hong Trang, COO of GS25 Vietnam, told VET. "We offer freshly-cooked Korean food prepared by our in-store staff as well as provide our range of private-brand (PB) products that can only be purchased at our stores." Cream of the crop In addition to the two newcomers, Vietnam has also witnessed robust expansion by lo- cal and foreign convenience store brands such as Japan's FamilyMart and Ministop, the US's Circle K, Singapore's Shop&Go, and Vietnam's Vinmart+ and Satra Foods. The attractiveness of Vietnam's retail market is expected to continue well into the future and is tipped to be the fastest-growing convenience store market in Asia by 2021, ac- cording to the latest data from international grocery research organisation IGD, fol- lowed by the Philippines and Indonesia. Asia's grocery market is the largest in the world, with a predicted 6.3 per cent com- pound annual growth rate (CAGR) to 2021. Its size is forecast to reach $4.8 trillion by that time, equivalent to Europe and North America's combined. In the convenience channel, IGD is predicting a high double-digit CAGR over the next four years in Viet- nam, of 37.4 per cent, the Philippines 24.2 per cent, and Indonesia 15.8 per cent, based on the performance of the leading convenience store operators in each market. On the particularly strong growth tipped for Vietnam, Nick Miles, Head of IGD Asia- Pacific, said "convenience stores in Vietnam have become popular destinations for young consumers to shop and hang out, as the stores provide them with an air-condi- tioned environment, well-organised shelves and seating areas, and high-quality prod- ucts. It is also easier to obtain licenses for stores under 500 sq m, which is why retailers have been expanding to gain market share."

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The number of convenience stores and mini-marts in Vietnam now stands at nearly 1,600, with an annual growth rate of around 200 per cent, according to a recent report from Nielsen Vietnam, in which the number of traditional grocery stores has fallen from 62 per cent to 52 per cent of total stores. To put the potential into perspective, there was approximately one convenience store per 69,000 Vietnamese citizens as at the end of 2016, compared to one per 21,000 in China and one per 1,800 in both Taiwan and South Korea. Moreover, Vietnam's retail market has recently reached sixth place after being among the Top 30 most attractive retail markets in the world since 2008, in the latest Global Retail Development Index (GRDI) released by US consulting firm A.T. Kearney. Con- venience stores and mini-marts are increasing in popularity in Vietnam, it found, and are now the fastest-growing segment of the retail industry. Sixty-five per cent of Viet- namese shoppers now choose hyper or supermarkets, and 22 per cent are frequent cus- tomers at convenience stores and mini-marts. FamilyMart now has 161 convenience stores nationwide and is expected to have 220 FINANCE by the end of 2018. "The number of customers coming to each store is also growing, at more than 120 per cent every year, in parallel with revenue," Hirohisa Yamanouchi, general manager of the Merchandise and Marketing Department at FamilyMart Viet- nam, told VET. Its compatriot, Ministop, now has around 100 stores. Vinmart+, which began opening stores in 2014, has topped 1,500. The growth in convenience stores and minimarts over recent years has been particu- larly impressive because both local and foreign retailers are racing to expand their net- works as much as possible for further brand identification. "There have been a vast number of retailers entering this energetic market and providing a wide range of serv- ices and distribution channels," said Trang from GS25. "Convenience stores are now considered the best distribution channel, satisfying the increasingly diverse demands of Vietnamese consumers by offering optimal convenience and good services." "Strong personal consumption power is very helpful for the convenience store business and its expansion capacity in Vietnam is greater than in any other Asian market," Kaji Nobuy- uki, Merchandise director at Ministop Vietnam, told VET. Fighting for locations Location is now regarded as the most pressing problem for all retail models, especially in the context of increasing competitiveness among massive convenience store chains. "This lucrative market pie will be scrambled by many big brands in the local retail mar- ket compared to other markets in the region," said Yamanouchi. "The development of retail stores will lead to retailers competing for leases." Location is key for all retailers. "The problem of higher rents is an issue facing other retail chains, which will gradually affect store development," said Nobuyuki. "Even under such circumstances, I think that other than having a prime location, it is impor- tant to provide a good store for customers. It is necessary to thoroughly understand the leased space, so that the development of the store network is optimised effectively, opening the best stores with the higher revenue." According to Pham Thai Binh, Head of Retail Department at Savills Vietnam, loca- tions for convenience store chains and their high standards often lead to unsuitable rentals for retailers, which is seen as a thorny issue. "The convenience store business, where profit is not high, depends on the quantity of locations available, to multiply to- tal revenue, so network expansion is a core strategy that all major retailers aim at," he said. Savills' latest research shows that retail rentals have risen endlessly, to $98-99 per sq m per month on average in good locations. The highest rentals, in CBDs, may reach $250 per sq m. The basic area for a convenience store ranges from 80 to 150 sq m. According to one convenience store chain owner, the company took months to open its first be- cause it was hunting down good locations. Furthermore, in order to earn profits, according to industry insiders, convenience store chains must be sufficiently extensive, in the range of 150-200 outlets. Akihiko Maeda, general director of Ministop Vietnam, calculated that it usually takes five or six years

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to recover the initial outlay in a convenience store, and each chain must have at least 300 outlets to guarantee stable profits. The search for enough space to cover investment, management, and operating costs re- quires businesses be financially strong and have good management. With their expe- rience in other markets, foreign retailers believe convenience stores will continue to grow in Vietnam in the years ahead, gradually replacing traditional grocery stores. http://vneconomictimes.com/article/business/r3vqjpyv-ever-upwards

Quang Ninh needs 26/DEC/2017 INTELLASIA| VNS more luxury tourism The northern province of Quang Ninh needs to call on investment in developing lux- products ury tourism and real estate products to meet the high demand of tourists, according to experts. Vu Van Dien, vice chair of the People's Committee of Quang Ninh, said at a seminar on real estate investment and tourism development strategy in Quang Ninh on Thurs-

FINANCE day that over past years, the province has focused on implementing strategic plans in three key fields, including infrastructure, technology and human resources. As a result, the province has attracted many domestic and foreign businesses investing in large residential areas, urban areas, and service areas for residents and tourists. However, at present, Quang Ninh still lacks high-end real estate tourism products, Dien said. Lao dong (Labour) newspaper quoted Nguyen Tuan Thanh, director of a Hanoi-based travel company, saying at the seminar that "Quang Ninh still lacks 5-star hotels and high-end resorts, though the province has many advantages to develop this kind of property, including hundreds of beautiful small islands in Ha Long Bay and Bai Tu Long. Meanwhile, the number of low-end hotels in Ha Long City is excessive." The lack of high-end products and onshore services also means there is little seasonal difference in the number of tourists to Quang Ninh, although in recent years, the number of visitors in the winter has increased slightly. Now, Quang Ninh has stopped licensing the construction of low-end hotels in Ha Long, Van Don and Co To, to provide land for developing large hotel and resort projects, Dien said. According to the Management Board of Quang Ninh Economic Zone, the Van Don Economic Zone (EZ) has attracted a number of big investors studying the potential of property projects, including FLC Group, Sun Group, MBLand, Crystal Bay and CEO Group. Quang Ninh has been also calling in investment of around with VND5.5 trillion in the Phuong Hoang Island eco-tourism region. The ecological tourist area would cover a to- tal area of 452ha, including a golf course, 3-5 star hotels and entertainment areas, cost- ing around VND3.5 trillion. Solutions Nguyen Tran Nam, chair of the Vietnam Real Estate Association, said to carry out the tourism strategy associated with real estate, the most important thing is policy. Quang Ninh is one of the few provinces with high budget revenues, especially from tourism, Nam said. Therefore, provincial authorities need to actively call on invest- ment in the tourism sector, including tourism property products, and create favoura- ble conditions for developing those products. The province should develop clear plans on construction and architectural space to avoid speculation, affecting the plans and clearance site for the projects, he said. One more issue is infrastructure. The province needs more technical and social infra- structure to attract investment into the tourism sector and other fields, including the development of tourism property products. Travel is usually associated with shopping, Nam said, but Quang Ninh does not have a plan to develop a commercial network and the development of stores has been spo- radic. Therefore, the province should create more trading centres to stimulate shop- ping and meet the demand of visitors. The province should also pay attention to the environment during the developing of

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tourism and associated products, Nam said. Nguyen Manh Tuan, deputy director of Quang Ninh Department of Construction, said over the past years, Quang Ninh has implemented strategic plans on the develop- ment of regions and infrastructure, and set plans on construction in coastal zones. Those plans have focused on the advantages of Ha Long Bay, Cua Luc and Bai Tu Long for development. Regarding the environment, a representative of Quang Ninh's Department of Natural Resources and Environment, said the province has invested in an automatic monitor- ing system to monitor the environment in many areas, especially around cement plants, coal production plants and urban areas. It has also invested in developing en- vironmental protection areas to attract tourists. Dang Tat Thang, deputy general director of FLC Group, said Quang Ninh has a lot of potential. FLC, a large property development firm, began investing in the province in 2015. The group has received support from the state offices of Quang Ninh in develop- ing its projects. FINANCE Therefore, in the future, the group plans to invest in Ngoc Vung Island in Van Don, to develop golf courses, resort complexes and casinos with total investment of $2 billion, Thang said. Truong Manh Hung, from the Investment Promotion Department of Quang Ninh, said the province has many preferential policies and improved the investment environ- ment to attract more firms. Especially, in administrative reform, the province has cut the time for administrative procedures and reduced licensing time. Because of this, Quang Ninh was ranked second in terms of competitiveness at the provincial level. Meanwhile, Nguyen Nhu Y, general director of Real Estate Services JSC, said business- es need transparent information about the property market and the provincial author- ities' directions on property market development. The company has seen strong development in the property market of Van Don EZ. Transparent information will contribute to creating sustainability in the property mar- ket, she said. The number of visitors to Quang Ninh has increased annually by 20-25 per cent. The province expects to receive 9.8 million tourists, including 4.2 million foreign visitors, in 2017. Quang Ninh has seen remarkable changes in its socio-economic development over the past five years, attracting significant local and foreign investment. As a result, the province has been developing tourist and high quality real estate regions. The province has policies on calling investors to upgrade and build a series of high- ways, airports and seaports quickly connecting Quang Ninh to other provinces and cities. In addition, Quang Ninh is building the Van Don Special EconomicAdministrative Zone, so the province has more opportunities to develop tourism and real estate for investors. http://bizhub.vn/property/quang-ninh-needs-more-luxury-tourism- products_290954.html

Infrastructure lifts 26/DEC/2017 INTELLASIA| VNS south HCM City Southern HCM City is becoming very popular with property developers thanks to the property market many infrastructure works planned for the area. The Vietnam Highway Investment Corporation is now speeding up the last three con- tract packages for the Ben Luc Long Thanh Highway so that it can open to traffic in 2020. It will link up with the national highway system and Long Thanh International Air- port. Many other projects have been approved, including the Nguyen Van Linh-Nguyen Huu Tho interchange and widening of Nguyen Tat Thanh Street in District 4. Construction of the Rach Dia and Long Kieng bridges will be completed early next year.

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Le Van Luong Road, a key link between HCM City and Long An Province, will also be widened. Metro line No 4 will run completely in the south. Many analysts said this part of the city has seen the best urban development. Le Hoang Chau, chair of the HCM City Real Estate Associations, said infrastructure has played a key role in this development. He told Sai Gon Giai Phong (The Liberated Sai Gon) newspaper that since the south of the city is under pressure from people flocking here, authorities have no choice but to pour money into developing infrastructure. Property investors make beeline The rapid infrastructure development has attracted many housing projects, hospitals, schools and malls. Duong Tuan Tu, chair of Tuan Long Company, told Sai Gon Giai Phong that his com- pany plans to develop a few projects in the area since it has a lot of potential. At the end of this month, the company would continue to sell apartments in its Green FINANCE Life project, he said. Hung Loc Phat Real-estate Development Company said to take advantage of all the new infrastructure, at the beginning of next year the company would sell units in its Green Star project on Pham Huu Lau Street. The project will have 100 villas and houses and 1,000 apartments. Another developer announced plans to sell 4,000 luxury apartments on Dao Tri Street in Nha Be District. According to Le Tan Trung, general director of Bao Khang Real Estate, since there are many foreign schools in the south, foreigners choose to live there. Dinh The Hien, an economist, said that most of the housing projects in the south are co-ordinated with the overall urban plan. Thus, along with infrastructure, these projects have created a new face for the south. Besides existing projects, there are also many investors seeking the right to develop new ones, he added. http://bizhub.vn/property/infrastructure-lifts-south-hcmc-property- market_290956.html

Curiosity piqued 26/DEC/2017 INTELLASIA| VN ECONOMIC TIMES Interest in Vietnam's startups is clearly increasing among South Korean investors. In the eight months since it successfully secured Series C funding from two South Ko- rean venture investment funds, the Vietnam-based mobile content platform Appota has launched several campaigns to diversify its products and services, in particular fo- cusing on advertising and FinTech. This third call by Appota was also the first time a tech startup in Vietnam received funding from South Korean investment funds. The two investment funds were Korea Investment Partners (KIP) and Mirae Asset Venture Investment. KIP led the undisclosed Series C funding round, under which Sang-Ho Park, director of Investment at the Seoul-headquartered fund, will join Ap- pota's Board of directors. Mirae Asset Venture Investment, meanwhile, is a venture capital and buyout firm. The joint investment valued Appota at about $50 million and was KIP's maiden financing of a Vietnamese company and Mirae's first tech invest- ment in Vietnam. Eye-catching startup ecosystem Appota, which distributes digital content, primarily games, has become one of Goog- le's four partners in Asia deploying the giant's Mobile Ad Exchange platform and is also developing a payment system. Founded in 2011, it graduated from the Topica Founder Institute and secured Series A funding from Vietnamese e-commerce compa- ny VNP Group in 2012, followed by Series B funding from Golden Gate Ventures and Japan's GMO Global Payment Fund in 2014. Many other investors from South Korea are keen on Vietnam's startup market. Accord- ing to experts, following in the footsteps of venture capital firms and investors from Singapore and the US, South Korean players are now making their presence felt in Vi-

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etnam's startup space. South Korea's Lotte Accelerator recently committed to investing at least $1 million in Vietnamese startups through an alliance with Vietnam Silicon Valley Accelerator (VS- VA). The alliance launched an early stage venture capital fund at the end of October, as the two signed a strategic cooperation to catalyse investment into Vietnamese tech companies. "Vietnam is one of the fastest yet stably growing economies in the world, where the Lotte Group has established a strong footprint in various sectors, from real estate, re- tail, and distribution to commerce and IT," said Jin Sung Rhee, CEO of Lotte Acceler- ator. "It is a big market and its startups have potential. This is why we want to invest. The foray into venture capital will transform the group towards innovation. Mean- while, we have strong commerce infrastructure to facilitate startups in enhancing products and making them the products we will use." Lotte Accelerator has pledged to help Vietnamese startups commercialise and expand, by leveraging its network in both Vietnam and South Korea. The accelerator, he said, FINANCE will reach other countries where Lotte is present to synergise its non-financial support for young tech firms. "In Vietnam, VSVA and its local expertise will help us screen qualified startups," he added. South Korean accelerators are fostering Vietnam-based startups by forming alliances with local incubators. HATCH!, a Hanoi-based startup supporter, recently reached a partnership agreement with South Korea's Rehoboth Business Incubator. Exchange programmes at universities and business associations, as well as linking startups with investment opportunities, will be part of the collaboration. Similarly, South Korea's ninth-largest "chaebol", the Hanwha Group, has taken its accelerator programme, Dreamplus, to HCM City and earlier struck an alliance with the Vietnam-based accel- erator the Egg Group. The enthusiasm among South Korean investors for Vietnam's entrepreneurial ecosys- tem is considered to be in line with the Vietnamese government's objectives. Early this year, prime minister Nguyen Xuan Phuc welcomed KB Kookmin Group Chair Yoon Jong-Kyoo to mark the 25th anniversary of the establishment of diplomatic relations between the countries. The prime minister called on KB Kookmin Bank to expand its financial operations in Vietnam and praised the South Korean financial group for shar- ing its experience in social housing development and for supporting startups in Viet- nam. He also invited the financial group to join his government's efforts in restructuring commercial banks, including equitisations. Entrepreneurship incubators have, in fact, been a focus of the two countries for some time. In 2015, the Korea-Vietnam Incubator Park (KVIP) in the Mekong Delta's Can Tho city, which has committed to supporting creative ideas of startups to develop into high added value products in the Delta region, was opened with total investment of $21.13 million. Businesses and organisations established in Vietnam and other relevant individuals involved in incubator projects and applying manufacturing technology at incubators can access the incentives on offer. Difficulties in access Despite the clear interest from South Korean investors, the attraction of Vietnam's star- tup ecosystem remains limited compared to elsewhere in the region. Thach Le Anh, Project manager at Silicon Valley Vietnam Accelerator, pointed out that investors are reluctant to invest in Vietnam's startups because of the risks and an unwillingness to be first in the game. Vietnam's startups also face issues accessing bank capital, as banks' lending principles require the meeting of certain conditions regarding revenue, profitability, and asset se- curity. "Vietnam lacks capital investment in the range of $10,000-$500,000, which is where most startups in Vietnam are at," Le Anh stressed. Despite their experience and financial resources, foreign investors face their own dif- ficulties in Vietnam due to overly-complex administrative procedures. According to Nguyen Manh Dung, CEO of the CyberAgent Venture Capital Fund in Vietnam, while in some regional countries it only takes between a week and a month to complete dis-

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Service Tele-communication Utility Public telecom segment was dragged by provisions gy-development-partnersh http://english.vietnamnet.vn/fms/busine the Department ofEnergy laboration with The thirdcomponentistodevelop low-carbon tricitysystem incollaborationwith Elec theinte promote The secondis to component http://vneconomictimes.com/arti toconvinceforeign it difficult , and Meanwhile,the segments. the andretail trading ip-for-2017-2020.html investors toinvest,Dung added. nam it can take up to a year. The completion ofinvest- Thecompletion uptoayear. take nam it can r and Renewable EnergyAgency.r and cle/business/curiosity-piqued ale and shift tolow-carbon solutions nation- tricityRegulatory Authority ofVietnam. ss/192697/denmark-and-vietnam-sign-ener- en sustainable development of the Vietnam- of the en sustainabledevelopment ursen, DanishAmbassadorinVietnam, mme in 2017-2020 using non-refundable using mme in2017-2020 mpany (AAA) will spend VND125.4 billion billion VND125.4 spend will (AAA) mpany Efficiency and SustainableDevelopment. months. Moreover, other programme consists ofthree components. prove economic efficiency. It will also help efficiency. Itwill prove economic in theframework oftheVietnam-Denmark Trade Anhon and Tran Tuan behalf ofthe quivalent to $31.5million)by2020. ion, such as the ofthelegal passport on-year. According to Viet CapitalSecuri- According toViet on-year. gration ofrenewable energyintotheelec- made for a contribution to theVietnam made foracontribution ce inMoIT's overal energydevelopment Vietnam are often qu are often Vietnam the software outsourcing segment, espe- outsourcing thesoftware even though they may be in a differentthough theymaybeina even gnatures, so collecting the signaturesgnatures, of socollecting ng opportunitiesng andreducecosts in en- rtificate, which must from which be translated must rtificate, ofthe long-term energy sector strategy ergy, as en- well as renewable integrate solutions for the industrial incol- sector fortheindustrial solutions started in 2017 and will provide a total total a and willprovide in2017 started official developmen 2017 on the record date oflanuary 18, gy sectorbyspecifyingcontents of the analysis of long-term energy develop- energy long-term of analysis 26 December 2017 43 /65 ite passive, making making passive, ite t assistance (ODA) licenses also slow 26 December 26 BUSINESS Vietnam finance& business Vietnam volatility lightly,more signaling VN Indexgains Intellasia 2018. outstanding shares. The company will ma on recorddateofIanuar share for2017 the (S * Sa GiangImportExportCorporation within thismonth. made Transaction willbe shares ofNgoiSao An BinhJoint Stock Co general* HanoiInvestment Corporation each. starting priceofVNDll,520 shares ofKien HungUrbanInvestment and * HUD3 Construction& Investment JointStoc subsidiaries. and ofDCL capital working supplement and ity er in DCL. DCL plans to usethe proceeds toexpand the company's productioncapac- percentstake wouldowna24 each andRAM verted into shares, DCL would issue about intosharesatVND25,000 will beconverted 5-year noteswillcarry curities Company,the of convertiblebondsinaprivateplacement to havesigned acooper ment Co (RAM) Ltd (DCL) * CuuLongPharmaceutical Company percentto47 percent. firm from 85 at the its holding cutting DragonCapital, and Capital after percenttoVina selling 30 perc 8 an sold FPT month, this Earlier tively. ership in FPT Retail and FPT Trading (FTG) will be 47 percent and 48 percent respec- Starting 50 percent. than less Trading to has successfullyre (FPT) * FPTCorporation each. shares atnohigherthanVND8,000 Joint after U&IConstruction holder ofTTF second biggestshare- the to becomeownership percentand frompercent 4.7 to14.4 Thanh Furniture Corporation (TTF)fromnow * SAM Holdings Company(SAM) has register company willmake the divide record date of December 28.Currently, V divi interim paying an billion VND353 * Vietnam andImport-Export Construction Co lion, down percentandup18 8.18 it earned aconsolidated netprofitofVND2 JSC had total registered capitalofVND 10.14. will betradedat a starting price ofVND1 change millionsharesunde to launch 107 * Kien Hung Joint Stock hasreceived approvalfrom Company the Hanoi StockEx- billion. profit pre-tax bank sawits the September, Vietnam International Bank, Kien LongBank fourth BABis each. the price ofVND20,000 ber 28 under thecode of BAB. The lender wi * BacABankwilldebutonthe percent and 33 percent annuallyinthenext three years. firm pharmaceutical 2017. The lastyear 6percent against 2017, increasing to has estimated Company (TRA) * Traphaco 20,2018. the dividend on March payment The benchmark VN VN Index inched 0.16per The benchmark up ce weak investor sentiment signaledthe market Shares ended Friday morning in positive 26/DEC/2017 INTELLASIA|VNS market for unlisted public firms, or UPCoM, on Decem- on UPCoM, or firms, public unlisted for market nd payment on January 31,2018. also predicts itsrevenue will increase bybetween 20 percent year-on-year respectively. year-on-year percent dend ofVND800 per sharefor2017 on the dend ofVND800 from December 18, 2017, the company'sown- the from December18,2017, CG has 441.7 million outstanding CG has millionoutstanding shares. 441.7 The GC) will pay adividend pay GC) will 4,500 each. Established territory onthe HCM Stock Exchange, but (SHN)has decidedthree million tobuy r the code KHS on December 26. The shares December 26.The on code KHS r the mpany at no higher than VND130,000 mpany each. nohigher VND130,000 at than up 25 percent year-on-year to over VND482 overVND482 percentyear-on-yearto 25 up ation agreement to issue $20 million worth agreementtoissue$20millionworth ation ke the dividend payment on January 19, 5.5 billionfromitsrevenue ofVND789.9bil- . TRA's revenue mayhitVND2trillion in y 5,2018. SGChas7.15million y 5,2018. Currently, Development JSC viapu JSC Development UFCoM thisafter the year, bank listedon Stock Company. SAM willStock Company. purchase TTF each. After one year, if allbondsare con- 18 million shares to RAM at VND25,000 atVND25,000 to 18 million shares RAM ent stake in FPT Trading to investors retail inFPT Trading ent stake duced its stakesduced its inFPTRetailand FPT billion. In the January-SeptemberIn the period, billion. ll offer million starting 500 shares at the a of1 fixed coupon peryear percent and and SouthKorea's RhinosAssetManage- and LienVietPostBank. and to FromJanuary couldsuffer more inthe second half. in DCL, becoming the largest sharehold- largest the becoming in DCL, earn anetprofit of VND242 billion in rporation VCG) will spendanestimated the latter. According to Viet Capital Se- According toVietCapital latter. the k Company will sell itsentire 500,000 ed tobuy14million shares of Truong nt to close at 947.62 points aftergaining points nt to closeat947.62 to January 23,2018, seekingtoraise its 23,2018, to January 26 December 2017 44 /65 in 2000, Kien Hung KienHung 2000, in ofVND2,000 per blic auction atthe 26 December 26 BUSINESS Vietnam finance& business Vietnam cap hits 74.6pctGDP cap Shares mixed,market Intellasia tio) set tio) set for 2020. ra- GDP to cap (market target the surpassed number has This (GDP). product domestic percentfromthe andequiva 73 up end of2016, market capitalisation Vietnam's stock hit VN 74.6percentGDP reaches capitalisation Market on December4. corded the 935 points Friday adecrea since last but around 950points The VNIndexhasmoved sults in of2017," BSC' the fourth quarter can spend time looking for opportunities in "We forecast the market will continue to accumulate around 950 points, so investors exchange. cent oftotaltradingon HCMCity's 75 per value Trade focused onlarge caps, with thetradin to analystsatBIDVSecuritiesCompany (BSC). recent decreasedtradingvolumehasledto stocks (com declining The highernumberof a rise million), (US$381.6 trillion VND8.7 ing Thursday's changes, down12.3percentfrom re drop, to continued volume trading Total 0.8-2.3 percent. ings (BVH), brewer Sabeco (SAB) and Mobile World Group(MWG) with growth of Other supporters included PVGas (GAS), IT creased 3.6per cent. They are twoofthe to rally to market's yesterda contributed the Vietcombank (VCB) and VinGroup (VIC)were value and liquidity on HCMCity's bourse (VN30) gaining value while 11fell. Large-cap stockscontinued todivergewith18 0.8 per cent inthelasttwosessions. straight day, down 0.47percenttoendat Meanwhile, the HNX-Index onthe HanoiStock Exchange declined for asecond points. The southern market index decreased 0.8per cent onThursday. On the HCM Stock Exchange, the VN Index ad day as investorconfidence weaken Shares concluded the week in opposite di 26/DEC/2017 INTELLASIA|VNS volatility_290944.html http://bizhub.vn/markets/vn-inde The afternoon trading session starts at1pm. billion. millionshares than32.2 were More tr cent. 0.33 per Thursday'sextending itsdeclinefrom dropof fe Index HNX Exchange,the Stock On theHanoi Petro- (SAB), (HPG). Group Phat Hoa producer steel and (PVD) Services Well and Sabeco Drilling Vietnam brewer included gains good witnessed also that chips blue Other (MBB). and MBBank (BVH) Holdings Viet insurer Bao (STB), Sacombank (VIC), Among thegainingshares were Vietcomban italisation. VN30 Index, which tracks theperformanceof The southern exchange was lifted by financ changed. outperformed Declining stocks trillion (US$250 million). million sharesweretrad than112.5 More The southern marketindex lost0.78 per cent on Thursday. morning. inthe cent per as 0.64 much as gainers by 152 to 98, while 54 gainers while54 others remained un- by 152to98, x-gains-lightly-signaling-more- ed on an unstable marketoutlook. aded on the northern market, on northernmarket, worth VND610.7 the aded s analysts wrote in areport yesterday. 113.03 points. The points. index northern market lost 113.03 ed onthe southern bourse, worth VND5.62 y. VCB rallied4.74per y. cent andVICin- VCB rections on the twostockexchanges yester- p 10biggest listed stocks by market value. aching 249 million shares on thetwoex- rising cautionamonginvestors,according ial-banking and real estate stocks on the stocks realestate and ial-banking se from the 10-year highof970 points re- pared to gaining stocks), accompanied by accompanied stocks), pared to gaining good fundamental stoc over for the VN30accounting on g value throughout this week, a rise compared to to compared this week,arise throughout D3.36 quadrillion ($147.4 billion) in 2017, billion)in2017, D3.36 quadrillion ($147.4 k (VCB), property developer Vingroup propertydeveloper (VCB), k of 22.5 per centover theprevioussession. group FPT (FPT), insurer Bo Viet Hold- level, but value oftradesshot touch- up, the 30 largest companies marketcap- largestcompanies by the30 lent to 74.6 per cent of the nation's gross gross nation's the of cent per 74.6 to lent of the top30 largest shares bymarket the two biggest gainers which largely which the twobiggestgainers vanced 0.66 per cent to close at 952.32 vanced 0.66percenttoclose at 952.32 ll 0.66 per cent to end at 112.81 points, 112.81 endat percentto ll 0.66 26 December 2017 45 /65 ks with strong re- 26 December 26 BUSINESS Vietnam finance& business Vietnam 2017 weekof in last further rise Stocks setto stocks on financial, energy shares upslightly VN Intellasia and bank stocks. In thestockmarket, large-capstockscontin 2018) are expected tocontinue suppor percentin 18 (about expansion credit high as aswell inflows foreign capital Strong incl for2018, target will retain the after recording a sharp increase Vietnam's GDP is forecastto itsannualta meet dium term. in theme- markets stock thelocal for factor majorsupporting tobea continue will 2018 division, Vietnam's upbeat ec division, Vietnam'supbeat Accordingdirector to LeDucKhanh,deputy sion on the twoexchanges. trillion (US$237 worth VND5.4 Liquidity declined slightly from the previous session, averaging 242.3 million shares sions last week, ending On the increased1.28 per HanoiStock Exchange, theHNX-Index cent after five ses- weeks, gaining1.83 per cent last week The benchmark VN Index on the HCMStockExchange recovered fromtwodeclining boosted by positive development macroeconomic and foreign traders. Stocks on thenational exchanges are expected 26/DEC/2017 INTELLASIA|VNS http://www.vir.com.vn/vn-shares-up-slig The afternoon session starts at 1pm. Construction (CTD)was Corp up 2.2 cent.per br the large-capstocks, Among 30 largest companies by market capitalisa Large-cap stocksalsohad a goodmorningse PetroVietnam Coating(PVB). Gas (GAS),Pe performance ofPetroVietnam The energy sector made the biggestcontribu and SaiGon-HanoiSecurities (SHS). insurerof BaoViet Holdings (BVH),Securities BIDV (BSI), VNDirect Securities (VND) Insurance andbrokerage sectorindices gained Financial-banking andenergy sectors boos million). trillion (US$117.26 millionsharesweretraded than 126.3 More points,adding toits we last Stock Exchange inch The HNXIndexontheHanoi week. last intotal cent per 1.83 gained It points. 954.69 The benchmark VNIndex on theHCMStock Exchange rose 0.25 per cent to close at nancial andenergy stocks. Shares advanced slightly on thetwo local 26/DEC/2017 INTELLASIA|VNA http://vietnamnews.vn/econom increase atwo-fold accounts, trading tradingvolume total with tracted investors whichof The derivativemarket, per sess trillion VND8.9 value was ing andequa centover2016-end trillion, up8per The bondmarket has becomemoreactivewi trillion per session, a yearly increase of63per cent. aver with sharply improved has Liquidity mission attheyearlyre This result wasannounced by the Phm HngSn view meeting on Thursday. Friday at 113.03 points. Friday at113.03 ek growth of1.28per cent. onomic results in 2017 as well ewer Sabeco (SAB) jumped 3.7 per centper andCoteccons ewer Sabeco(SAB)jumped3.7 million) being traded through order matchingthrough order perses- traded million) being y/419982/shares-mixed-mark of7.4per centinthethird quarter. governmentThe ficially cameintooperation uding inflation ofbelow4per cent. uding inflation compared to the end of August. ting market expansion, Khanh said. expansion, Khanh ting market on points to close at952.32 Friday. ion, up38 per cent year-on-year. htly-on-financial-energy-stocks.html tion points. gained 0.13per cent to947.15 markets on Monday morning, lifted by fi- age tradingvalue age reaching almost VND5 ted thestockmarket on Monday morning. ued to drive the market, mostly oil and mostly oil gas todrivethemarket, ued on boththelocalbourses, worth VND2.64 reaching over 946,300 contracts and 15,800 contractsand15,800 reaching over946,300 th total listingvaluetouchingoverVND1 troVietnam Technical Services (PVS) and TechnicaltroVietnam Services(PVS) tion to the market's growth positive tion tothemarket'sgrowth with l to 23 per cent of GDP. The average trad- ofGDP.Theaverage 23percent l to ssion, as Index tracksthe the VN30 that at PetroVietnam Securities Inc's analysis Inc's Securities PetroVietnam at rget of 6.7 per cent by the end of the year cent6.7end ofthe bythe per of rget 1.6 percentand0.6 percentonthe back to rise further in the last week of 2017, inthelastweekof2017, to rise further , vice chair of the of , vicechair ed up 0.04 per cent to end at 113.08 toendat113.08 cent per 0.04 ed up in Augustthis year,at- has as brightprospectsfor et-cap-hits-746-gdp.html 26 December 2017 46 /65 State Securities Com- State Securities 26 December 26 BUSINESS Vietnam finance& business Vietnam HOSE Saigonres to debut on Intellasia 2017.html http://vietnamnews.vn/economy/419997/stock 20-31,except in ers fromDecember 2011. of theyear. In six of the last seven years Statistics showthatforeigninvestorshave te sellin net five consecutive shares, with On the southern bourse, their purchase we garnering City changes, with HCM valu purchased atotal net traders Foreign Strong foreign buys on securitieswebsit ing be animportant sector leading themarket up still will shares bank I think and substantially, have gained shares bank number of "A supportive policies andbanks' ef look forthe banking sector remains positive ne According to Tran Anh Tuan, head of analysis at Vietcombank Securities Co, the out- climbing 4-10per cent each. lenders suchasVietcombank(VCB),BIDV hose.html#M6OItTqSLyVSy1qG.97 http://vietnamnews.vn/bizhub crease of17 per cent year-on-year, an In the first nine months of 2017, Saigonres capital to VND396 billi out for current shareholders. The shareissu On June 26, Saigonres issued nearly 19.8 mill rise million)anda14-time in ($48 Saigonres posted In 2016, an ei CoM toHOSE. On July 18, Saigonres got shareholders' share. betweenOctober9and shares on UPCoM base price is The expected calculated level per share. VND30,000 Friday at shar 39.6 million nearly is trading Saigonres gonres stilldocumentssomerequired lacked tofulfill its filing. The debut date remainsunknown.TheHCM pany Market (UPCoM). pershare, (US$1.29) VND29,000 Saigon Real EstateJSC (Saigonres) plans pany Market (UPCoM). pershare, (US$1.29) VND29,000 Saigon Real EstateJSC (Saigonres) plans 26/DEC/2017 INTELLASIA|VNA With positive earning prospe barrel. per while rise, tradingat$58.47 barrel the On theNewYorkMercantileExchange,US jumped Drilling Mud (PVC), over 13pe Other smaller firms, like PetroVietnam Technical Services (PVS) andPetroVietnam 4percent. gained over (PVD) ices 6 per cent, over increased (PLX) Petrolimex The biggest listed stock, PV Gas (GAS), rallied nearly 7 per cent last week, while of over 700 listingsin the twomarkets. were notamongthetop10gainers, mostof Gains in global oil prices helped push up on from VND198 billion. on from e tinnhanhchungkhoan.vn. Photo baodauthau.vn cts, bank stocks alsopost /420019/saigonres-to-debut-on- ght-fold increase in its net revenue to VND1.08 ght-fold increaseinits trillion net revenue to VND1.08 ending two yearstrading on theUnlisted Public Com- ending two yearstrading on theUnlisted Public Com- forts in dealing with bad debts. bad with indealing forts its profittoVND273billion. post-tax the lion's share at VND1.07 trillion. VND1.07 at share lion's the d VND107.5 billion in post-tax profit. inpost-tax billion d VND107.5 g sessions worth a total of VND524 billion. g sessions ofVND524 worth atotal (2010-2016), foreigntrad (2010-2016), approval on the company's move from UP- from move the company's approval on r cent and12per cent, respectively. to debut on the HCM onthe Exchangeat Stock to debut HCM onthe Exchangeat Stock to debut HCM local oiland gas shares. ThoughP-shares e ofover VND1.1trillion on the two ex- d on the 30-day average price ofSaigonres re focused on steelmaker Hoa Phat Group's on steelmakerHoa Phat re focused Brent crude gained 3.2 per cent to $65.25 a $65.25 to cent per 3.2 gained crude Brent November 29, which was VND28,942 per whichwas 29, VND28,942 November ance almost doubled thecompany'scharter posted VND545 billionposted VND545 inrevenue,anin- (BID) andVietnamProsperity Bank (VPB) them were among top 30rising stocksout among them were and PetroVietnam Drilling and Well Serv- Well and Drilling PetroVietnam and nded to pour more money in the last week week last the in money more pour to nded es on UPCoM. The firm's shares finished The firm'sshares UPCoM. es on ion shares at the 1:1 ratio asdividendpay- ion sharesatthe ratio 1:1 trend next year," wasquoted as say- Tuan Stock Exchange on November 1 said Sai- 1said on November Exchange Stock xt year thanks to positive credit growth, credit topositive thanks xt year s-set-to-rise-furthe lightcrudeposted a2per centweekly ed a winning weekwith big ers have been net buy- haveers beennet 26 December 2017 47 /65 r-in-last-week-of- 26 December 26 BUSINESS shares IPO auction leftover Becamex IDCto finance& business Vietnam IPOJanuary in 2018 launch PV Powerto Intellasia VND1.66 trillion in net re trillion innet VND1.66 In the first ninemonths,HSC estimate trillion. to VND1.9 percentyear-on-year increase 25 crease of12 per cent, according to HSC. Th PV Power is forecast torecord VND31.5 tr to 10per poweroutput. cent of the country's total produc plants. Theannual three hydropower erates one coal-basedthermalpowerplant, and PV Power in2007 it was established restructureis itsloansan to ablecompany ownership inPVPowermaylesseThe State company. a joint-stock of thego Power's onbehalf capital PV of and GasGroup(PetroOil The VietnamNational shares foratleastfiveyears. make profits inthe last twohave years, noaccumulated loss,onto andhold PVPower investors, whichhavenotyetbeen addresse 676 mil PV Powerwillalsosell riod 2016-20. Southeast Asia region withannu is which electricity market, role inVietnam's leading its and prospects growth thefirm's to due beattractive still would IPO Power The HCM City-based brokerage firmsaid th gion's average price-to-ear to-earnings per share (P/E)ofPVPowerfor 201 According toHCMCitySecuritiesCorp (HSC the equitisation process is completed. $1.48 billionwhile its chartercapitalis projec The market capitalisation of PV Power at th according toHNX. IPO, to expects PVPower share. per cents) US Power's20 priceforPV auction The initial ulator saidinitsWednesdayannouncement. The shares willbelistedonthe HanoiStoc of its charter capital for sale in its initial public offering (IPO) on January 31, 2018. PetroVietnam Power Corporation(PVPower) 26/DEC/2017 INTELLASIA|VNS http://bizhub.vn/markets/becamex-idc-t projects. ny had notperformed convincingly with its expensive comparedtoo tothemarket's According toinvestors, thestarting aucti in 2017andbe thebiggestIPO thesecond-b share,perVND31,000 of company IPOhadbeenexpectedto thelevel IPO price At the able to sell only 6.1per centoftotal The BecamexIDCIPOonDecember 1 was considered a failure as the companywas Investors cansign up to participate in share sale, which will be held intheco tookpart Only theinvestorsthat at the firm's IPO. per (US$1.38) priceofVND31,000 ing auction milli 296.4 than Becamex IDCwilloffermore the shares left over from the firm'sinitia IndustrialThe Investment and 26/DEC/2017 INTELLASIA|VNS venue and pre-taxprofit. nings (P/E) ra (P/E) nings at the HCM StockExchange. attheHCM lion shares or 29 percentof lion sharesor29 Development Corporation (BecamexIDC)planstosell al power growthrateof7.1percentinthe usage pe- 311.2 million shares offered forauction. shares311.2 million the auction between December 26and 29. betweenDecember theauction s PV Power posted VND23.1 trillion and trillion VND23.1 and s PVPowerposted o-auction-leftover-ipo-shares_290964.html vernment afterthe powergeneratorbecomes l public offering (IPO) inearly December. tio of15.46. on price that BecamexIDCsetfor itsIPOwas average while the Binh Duong-based compa- the Binh average while mpany IPO are mpany thecoming toattend allowed was fully-owned by PVN. Thecompany op- k Exchange (HNX),thenorthern market reg- receive at least VND6.74 trillion from the trillion VND6.74 least receive at d complete negotiations withdebt holders. illion in net revenue for 2017, for 2017, a yearly illion innetrevenue in- per cent ownership is set at VND14,400 (64 (64 VND14,400 at per centownershipisset e company's post-tax profitis projected to three gas-used thermal powerplants,and e share price of VND14,400 is estimated e share isestimated at price of VND14,400 iggest since Vietcombank IPO in late 2007. IPOinlate sinceVietcombank iggest n in 2019onwards dependingonhowthe n ted at VND23.4 trillion ted atVND23.4 on shares for sale on January 3 at the start- on sharesforsaleJanuary3at d. The strategic investors are required to at despite the concern, theupcomingPV massive loans and low-profit real estate realestate low-profit and massive loans forecast to be the fastest-growing in the the in the fastest-growing be to forecast tion is more than 4,208 megawatts equal equal megawatts 4,208 tion ismorethan ), the IPO price is not cheapas the price- share equaltothe starting selling price will put more than 468.3 millionshares 468.3 than more will put 7 is estimated at 21 compared tothere- 7 is at21 compared estimated Vietnam orcent PVN)willhold51perVietnam its charter capital to strategic tostrategic its chartercapital 26 December 2017 48 /65 ($1.04 billion) after billion)after ($1.04 26 December 26 BUSINESS Vietnam finance& business Vietnam reports patheticIPO Corporation Song Da Intellasia http://www.vir.com.vn/song-da-corporation-reports-pathetic-ipo.html construction materials. plants, roads,industrialfact Established in1961, Song DaCorporation is the 76 debt per cent is triple and thetotal company's equity. Asofume. the end of the second quarter of Along with the modestAlong businessresults, with S declines of nifying year-on-year VND118 revenueand ($194.3 million)innet In the first six ofthisyear,months Song per by 42 decreased itsrevenue 2016, In turn on Assets (ROA) was 1.84 percent, and million) in revenue andVND452 theco in2015, Notably, yetto improve. has Song Da conducte Corporation shares, thendecrease and 229.5 million 51 wastohold state the equitisation, After the ployees. and tostrategic investors capital, charter its Besides, Song Daplannedtooffer another individuals completed the purchase atthe enterprises domestic and foreign no Notably, tion published by the HanoiStock Exchange. million shares, weresoldattheauction or shares, ered alarge-scaledeal, only 790,900 eq Despite the fact thatSong Da Corporation' 26/DEC/2017 INTELLASIA|VIR sh million 462 than more sell also will Oil PV IPO. the 90 daysfrom HanoiStock Exchangewithin under the on the trade itsshares will The company capita charter post-equitisation its while trillion is VND13.86 capitalisation thatpricelevel,the market At company's share. per VND13,400 of price starting a at millionshares 207 nearly The companywilloffer IPO will takeplace intheHCM PetroVietnama Corporation (PVOil), Oil Earlier IPOs forPV Oil ceeds and itscharter increase capita the sale, the corporation expected to acquir the million sharesat Da offered219.68 Song billion inproceeds. quired VND8.8 ($378,666) the stakewasun of cent per 99.64 ing that 2018.html http://vietnamnews.vn/economy/419950/ profit, respectively. revenue and VND520 billion,ou VND55.5 is estimatedat itsrevenue 2017, In inpre-tax profit. billion VND530 per cent marketshare. the In 2016, comp the second-largestseen as petrolis PV Oil investors. potential to portfolio its It willorganise two roadshowsinHCM Ci sationcompleted. is equiti- the petrolafter thedealer in cent ownership PVN willholda35.1 per vestors. tstripping the full-year forecast forecast full-year the tstripping ories, andreal estate projects, as well as manufacturing d its equitisation as thecompany's business efficiency l is trillion. set atVND10.34 Stock Exchange on January 25, 2018. Exchangeon 25, Stock January 24 and respectively. 24 cent, 48 per billion ($18.7 million) in af l to VND4.5 million). ($198.2 trillion l toVND4.5 it tounder50 per cent by 2020. Da Corporation reco DaCorporation cent to VND9.9 tril cent toVND9.9 any posted VND34 trillion in revenue and revenueand in trillion VND34 posted any pv-power-to-launch- Unlisted Public Company Market(UPCoM) Unlisted Public nother member ofPVN,has announced its dealer in Vietnam afte Vietnam in dealer ganised this morning, according toinforma- marketable. After the deal, the state only ac- the state Afterthedeal, marketable. ong DaCorporation be ty and Hanoion January 11-12 tointroduce s initial public offering (IPO) was consid- was (IPO) offering public initial s 135 million shares, equalling 30 per cent 30percent of millionshares,equalling 135 rporation earned VND17.03 trillion ($762.1 trillion($762.1 earnedVND17.03 rporation average priceofVND e VND2.4 trillion($105.68e million)inpro- sell 822,000 shares (0.18 per cent) to its em- percent)toits shares(0.18 sell 822,000 specialised in developing thermal power billion ($5.19 million) in pre-tax sig- inpre-tax profit, million) billion ($5.19 this year, the total debt-to-capital ratio is is ratio year, debt-to-capital this the total the cent. ofEquity (ROE)7.49per Return initial price of VND11,000($0.48). After trillion and pre-tax profit is forecast forecast is at profit pre-tax and trillion ares (44.72 per cent percent st ares (44.72 ualling 0.36per ualling cent ofthe offered 219.68 per cent of the chartercapital,equalling of percent or organisations joined the auction.229 or organisationsjoined or a fifth of its charter capitalforsale fifth ofits ora by 63per cent and36perin ter-tax profit, while the Re- the while profit, ter-tax lion ($436.1 million). lion ($436.1 rded VND4.41 trillion trillion VND4.41 rded ipo-in-january- r Petrolimexwitha22 26 December 2017 49 /65 11,959 apiece, show- apiece, 11,959 ars a large debt vol- debt large ars a ake) to strategic in- 26 December 26 BUSINESS companies shares in five VNPT toauction finance& business Vietnam Sabeco acquisition official report on ThaiBev submits Intellasia nies http://vneconomictimes.com/article/busine million), up9.3percentagainst2016. budg whileState cent comparedwith 2016, turnover has grownover20percent.Total It crease of21 per cent to2016. compared The group's consolidated profits in2017was design. tre, and industrialparks construction, ness linesarereal estate, housing,hotels,of ofVND177.2 hascharter capital The company lion shares. shares The ar shares. remaining in 5million uary 19. The starting price in the first two first in the19. Thestarting price uary Telecommunications LandJSC, Finally, VNPTwillauction79 up for auction accounting VND11. of Bankhaschartercapital Maritime 18. will beheld onJanuary at 9.15am totallingVND ($0.5) share, VND11,900 per million shares 71.6 willalsoauction VNPT struction of civilengineering projects. of shares held by VNPTaccounts for 15 pe ofnearly hascharter capital The company billion ($145,374). VND3.3 than pershare.The ($0.98) minimum VND22,313 nam PostandTelecommunications Constr au willalso VNPT 22, January on 10.15am At ter capital. shares The numberof ecommunication works. formulating investment pr surveying and in The company has charter capitalofVND3 bill will Theauction ($101,321). billion VND2.3 per sh ($4.4) ofVND100,000 (par value share velopment Investment Consultant JSC, with Consultant JSC, Investmentvelopment shares 12,000 in thenwillauction VNPT capital. cent ofcharter 30 per installs post and telecommunication works. of charter capital currently has The company will beheld at 9.15 amon January for pershare), a total ($4.4) of VND100,000 ment JSCwithastartingprice of more than inthe Ca shares 15,000 It willauction million). lion ($44.05 with its companies, shares infiveof tion of The Vietnam Posts andTelecommunications Group expects to collect $44 million fromauctions. 26/DEC/2017 INTELLASIA| In a report to the SingaporeExchange,Thai In areportto the 26/DEC/2017 INTELLASIA|VIR Beverage spent approximately VND110 trilli VND110 spentapproximately Beverage VND320,000 cent,at per to53.58 equivalent On December 18, 2017, Vietnam Beverage Co ment tothe Vietnamese Mi Vietnam said and ofSabeco deal quisition VN ECONOMIC TIMES for about 6.1 per cent. nistry of Industry and Trade on December 28,2017. nistry ofIndustry Trade and on December .02 per cent of charter capital in the Vietnam Postand intheVietnam .02 percentofcharter capital or 14 million shares, divided into three batches, on Jan- into threeor 14millionshares,divided batches,on 22 at the Hanoi Stock Exchange (HNX). Exchange Stock 22 at the Hanoi n Tho TelecommunicationConstruction Invest- service management, andconsultancy and the HanoiPost andTelecommunication De- batches totals totals VND48.5 batches was the fourth consecutive year that profit was the profit year that fourth consecutive VND10 billion ($440,528) andthe number billion ($440,528) VND10 earnings estimated at more than VND1 tril- VND1 morethan at estimated earnings r cent. It is primarily involved inthecon- primarily involved Itis r cent. uction JSC at aprice starting from in Maritime Bank. The starting price price is Bank.Thestarting inMaritime Beverage is expected tocompletethepay- expected is Beverage was VND144 trillion up7per VND144 ($6.3 billion), was fices, trade centre,su fices, land Beverage (ThaiB 851.8 million). billion ($37.5 The auction 851.8 ss/vnpt-to-auction-sh of VND18.1 billion( VND1.2 million ($52) pershare million($52) (par value VND1.2 take place at 2.15pm on January 22 at HNX. at 22 January on 2.15pm placeat take et contributions of VND4 ofVND4 ($176.2 trillion et contributions ($14.09) apiece. This means that Vietnam Vietnam that means apiece. This ($14.09) e VND38.8 billion ($1.7 million), e VND38.8 or 4mil- The volume of shares for sale representsvolume ofsharesforsale The ojects on the construction of post andtel- a starting price of 7 trillion ($515.4 million),withtheshares 7 trillion($515.4 on ($4.9 billion) for a controlling stake.($4.9 billion)foracontrolling on Group (VNPT) has announced theauc- (VNPT)has Group amount investors mustoutlayis more are). The sharesare expected to bring in VND5 billion ($220,264) and builds and and billion ($220,264) VND5 ction 150,000 shares in the Central Viet- sharesinthe ction 150,000 over VND5 trillion ($220 million), an in- ., Ltd bought343 million Sabeco shares, ion ($132,158) and is primarily involved and is primarily ion ($132,158) on offer accounts for40per cent ofchar- billion ($7.8 million) and its main busi- main its and million) ($7.8 billion VND188,103 ($8.3) per VND188,103 $797,356). The auction Theauction $797,356). permarket, urban cen- permarket, urban ev) mentionedtheac- 26 December 2017 50 /65 ares-in-five-compa- billion ($2.1million), 26 December 26 BUSINESS Vietnam finance& business Vietnam $176 million in expected tobring Dung Quat IPO Intellasia its price may reach about VND57,000 ($2.51) asset appr IPOwaspricedbased onthe The BSR tion. plans toputup20percent of LPG, andotherpetrochemicalprod the petrol, tion andcompletes itsIPO. Besides, Petrolimex tothe will buyBSR's According Petrolimex equitisa- deal, shares after conducts it the ment. finery. In August, representatives ofPetr to alarge stake plans volume buy (Petrolimex) investors, state- domestic Regarding Refinery. Quat DungBoard ofdirectors of EnergyBesides, RepsolGroupfromSpainwa offer. and MacronPetrowhole sharevolumeon Petroleumto buythe eagerarefrom Africa Compan Petroleum National Kuwait and PTT, tor, including RepsolEnergy Group, PEtrol fundsandfivepartners with 17investment Nguyen added that to date, BSR received applications and joined face-to-face meetings employees. company's the within three monthsaftertheIPO. About0.21 BSR's charter capital,maximum while49 percent of a will be sold tostrategic investors group the Pe After gas IPO, and Vietnam's oil capital ofVND31 tril approved BSR's equitisation plan. Accordin According to Tran Ngoc Nguyen, on December 8, primeminister Nguyen Xuan Phuc ber 20. mo the participationof vestors, attracting This was publishedatthe BRS road show to lion) fromthedeal. apiece,wi ($0.64) VND14,600 percentof 7.79 equalling shares, million operator ofDung QuatRefinery, will conduct On January17 of next year, BinhSonRefini 26/DEC/2017 INTELLASIA|VIR a andacquire markets graphic geo- its enabletheThaigiant diversify to will acquisition This Japan. ter Chinaand ThaiBev found that the Vietnamese beersect ket, isone of the leadingbeer companiesintheAsean. forthelargest whichaccounts 333. Sabeco, with beer Sabeco is a140-year-old company, the growthpotential of the Vietnamese beverage market. the profithistory, financialsi th before theauction, saidthat ThaiBev owned by ThaiBev. BeerCo., owned by in turn indirectly is wholly-owned byVietVietnam Beverageis http://www.vir.com.vn/thaibev-submits-off the goalofobtainingover 50per cent of idate its brandsinSoutheastAsia, ThaiBev expanding is tooverseas markets, towards revenu cent ofThaiBev's per Currently, 97 world. over the and shareholders in order toshare experiences and sharply develop in the region and ThaiBev also wants toevolvelong-term rela to ThaiBev's vision to2020. lion ($1.36billion). tuation, andmanagement experi its stakes for sale to mobilise capital for the BSR acquisi- fortheBSR capital tomobilise sale for stakes its th the expectation to acquire VND4 mil- VND4 trillion ($176.1 toacquire th theexpectation large distributionnetwork in run Vietnam National Petroleum Group Petroleum run VietnamNational e company andVietnam Beverageresearched Ltd,aHong Kong-based company wholly- its total revenue from these markets by 2020. markets from these its total revenue re than 200 investors in HCM City on Decem- on City inHCM investors than 200 re olimex and BSR signed a cooperation agree- signed acooperation and BSR olimex its charter capital at the initial priceof attheinitial charter its capital e comesfromThailand'smarket. To consol- market share intheVietnamesebeer mar- eumBrunei, Pertamina,SRC,Rosneft, SK, ng and Petrochemical Co., Ltd(BSR), the interested in becoming thestrategicinves- inbecoming interested nam F&BAlliance Inve icial-report-on-sabeco-acquisition.html gly, the company currently has currently the has gly, a charter company introduce investmentopportunities toin- tions with the Sabeco board of directors of tions withtheSabecoboard such famous beer brands as Saigon and or holds great potential, ranking third af- a share based on the Price/Earnings ratio. its initial public offering (IPO) to sell 242 nts toholdstakes inBRSandjoin the troVietnam willretain 43 per cent of ucts ofDungQuat confirmed giving top priority to selling toselling toppriority giving confirmed will beofferedper to centoftheshares y. Especially,WorldPetro from theUS to become a strategic partner of the re- partner ofthe to become astrategic oach (totalassets ov Vietnam. Italsoconforms ence of Sabeco as ence ofSabeco well as 26 December 2017 51 /65 Refinery. Petrolimex stment JSC, stment JSC, which er book value)but 26 December 26 BUSINESS Vietnam finance& business Vietnam cars startingJanuary 1 bans dirtydiesel VN still unsafe vegetables athome Certain fruitsand Intellasia the meeting that fruit and vegetable exports exports andvegetable fruit the meeting that Pham Khanh Phong Lan, head ofthe HCM Ci heard a review meeting on foodsafetyand hygiene onDecember 21. domestic consumers are worried about the Though fruitandvegetable exports are estima 26/DEC/2017 INTELLASIA| THE SAIGON TIMES http://www.vir.com.vn/dun a returnon equity (ROE) rati trillion profitisexpectedtotopVND8 BSR's entire year. tributed VND9.06 trillion tothestate budget lion) inthefirst 11 months ofthisyear, up Dung Quat Refinery's operator reported to meeting 30per cent ofthedomestic demand. BSR manufa months ofthisyear, the 11 In ness plans due to the decision. nearlythat 50auto VR shows A surveybythe fail to meet thestandards outofVietnam. by atthelatest. Otherwise, December 2017 31, istrative procedures, for customsor car safe Car providersthat produce or import diesel certificates. receive and meet4 standards theeuromust before etnam According tothe VR, all dieselcarsmanufa ards, whichwas issued in2011. The move wasmade in line withthena ment announced. to meetEuropean emission standard 4 or Register(VR)will The Vietnam 26/DEC/2017 INTELLASIA|VNS Vietnam's fruits andvegetabl age. crease. Major import markets were China wi wereChina markets import Major crease. vegetabl and exports offruits Data of the generalDepartmentofVietna costs, reduceexportrisks an international organisations. This solutionhe Therefore, theassociation has signedagreem and export. sale local for and certifying products ing namese Goods Producers, authorities and the According toVu Thi KimHanh,chairwoman product quality. to associations industry and enterprises as Participants atthemeeting underscored the HCM Cityhasbeen tightening controlson the supplychain. In abidtoincrease cleanfarm produce su Many local consumerscare more abou loose Stat tic salegiven Farmersmay exportthebestoftheir prod safe andsubstandardproductscanbefoundonthedomesticmarket, according toLan. they nowme that indicates which and the US, unsafe.html http://english.thesaigontimes.vn/57664/Cert th percent) million(up 70 and $117 with e management,Lan said. g-quat-ipo-expected-to-b d promoteproductidentification. o reaching 25-26 per cent. es have made theirwayto es totalledbillion, $3.18 a stop granting safety certificates to diesel cars cars that fail to diesel certificates safety granting stop t shenoted. t prices thanquality, tional roadmapon vehicles' emissionstand- e US e US with $93 milli m Customs showed that January-November January-November showed that m Customs ucts and keepdomes-substandard itemsforucts higher beginningon Ja pplies for thedomestic market andexport, ctured 5.57 million tonnes of petroleum, 15.8per plan. cent over annual It con- the tal revenues ofVND71. get involved in the process of controlling controlling of process the in involved get ctured, assembled in or imported into Vi- safety and hyginene safety and ty checks,and thecars onthe put market ain-fruits-and-veget , 26.3per cent higher than planned for the cars mustcompleteallnecessary admin- ($351 million) by the end of the year, with million)bytheendofyear, with ($351 lps enterprises cut downon certification ents onco-certifyingwithauthorities and needfarmersas well forauthoritiesand are surging atatime th $2.4 billion (up (up billion $2.4 th companies will have toadjustbusi- their they are allowed to complete safety tests tests safety to complete allowed are they et international standards.However, un- et association shouldplayaroleinpromot- they willhave to expo ty FoodSafety Management Board, told of theAssociation ted to amount to$3.5billionthisyear, ted to amount ring-in-176 million.html 44 44 in- percent year-on-year choosy markets such as Japan choosysuch as markets on (up 21.2percent). on (up 54.9 percent),Japan ables-at-home-still- of these products, 26 December 2017 52 /65 nuary 1, depart- nuary the of farmland shrink- High-Quality Viet- 9 trillion ($3.15 bil- trillion ($3.15 9 rt the vehicles that rt 26 December 26 BUSINESS corridor 'golden' logistics Vietnam,up Chinaset finance& business Vietnam 2017 Vietnamese peoplein country by theU.S is mostvisited products seekmarkets Biotechnological Intellasia https://en.vietnamplus.vn/biotechnolog ucts. She added that scientists and businesses should shake hands tocommercialise prod- ofrevenue. sources create to important is results search universities aremovingtowardsautonomy, Director oftheHueUniversity's Institute search outcomescannotfind their way toreality. tween scientists and businesses remains limited.a result, As useful many scientific re- Forexample, highly somestudies sp focuson is facing a number ofdifficulties. Howeve and research institutes. activiti research scientific said Participants of biotechnological advances inthefiel More than30scientific reportswere presente products, especially biotechnological ones. province ofThua Thien-Hue on December 21 busi joined scientists and foreign Domestic 26/DEC/2017 INTELLASIA|VNA 123839.vnp https://en.vietnamplus.vn/vietnam-ch nam border, facilitating connect thr have province will Guangxi completed, The Fangchenggang-Dongxing railway proj corridor. logistics bilateral of1,880tonnes,ume demonstrating thetwo train hasconductedfourtrip rope container theChina-Eu- launch, its since days 20 only within said Bureau Railway The Nanning transportationway forcargo betweenthe twocountries. Vietnamese goodsback to China's Pingxiang 20 hours. forthe in about Hanoi time first On November 28, the China-Europecontai was included inthenew protocol. ber, thenormalisation ofcross-border c The bureausaidatthe41stVietnam-China train. tainer con- China-Europe on the and viceversa via China country third tween Vietnamtoa The two countries are joiningefforts uptheconnection tospeed of freight trainsbe- at theGuangxi Zhuang Autonomou reau are strengtheningrailwa and China Vietnam 26/DEC/2017 INTELLASIA|VNA This is aninteresting statistic based onUb Malaysia. and Singapore, Thailand, is is the that chosen most. country the Besi pe chosen byVietnamese countries 80 Among 26/DEC/2017 INTELLASIA|TIN TUC However, Saturday isreally paring foranight shift. to go home after atired working day,droppi shows manytant timeandmeanings different 5 p.m.is thetimewhenpeopleoftenb three includin about Statistics major cities weekend. ple suchas where Vietnamese people often go by, people can see a lot ofthingsaboutacity the most exciting the day in most ivity between thetwocountries. r, the application of scientific outcomes to r, the applicationofscientificoutcomes production ina-set-up-golden-logistics-corridor/ ds ofagriculture, medicineand food. ontainer trainsbetween Nanning and Hanoi ical-products-seek-markets/123778.vnp s Regionon December23. affirmed g Hanoi, HCMCity, and DaNang show that of Biotechnology Truong ThiHongHaisaid ook vehiclesthemost. Thisis a very impor- er applicationofViet Later on December transported 1, thetrain des, there are such countries as Australia, es aretaking place wi ee border railway routes ee border ner train carried goods from Nanning to goods fromNanning train carriedner ness owners ataworkshop in the central border railway conference inmid-Decem- s from Hanoi to Pingxiang with a total vol- a total with from HanoitoPingxiang s oracountry throughthetravelof the peo- ect was launched on December18.Once and the commercialisation of scientific re- d at the event, focusing on theapplication countries' efforts to set up a"golden" y cooperation, the ecialised fields while the connectivity be- ng at school topick upchildrenor pre- to seek marketsforscientificresearch , whattime and what they do during the border railway station, thuspaving the . That can be the time when people rush time whenpeople can bethe That . ople to travel in 2017, the United States the UnitedStates 2017, in ople totravel the week. Indeed,the week. Vietnamese namese people.There-namese Nanning RailwayBu- dely at universitiesdely at 26 December 2017 53 /65 tothe China-Viet- 26 December 26 BUSINESS Vietnam finance& business Vietnam Fitting together infrastructure Sabeco saleto fund Intellasia ture http://vneconomictimes.com/article/vietna hold any stake inSabeco," Tien said. divest fromthe brewer at a suitable time. lion) onacquiring nearly 54 per cent of Last week,aunitofThai Beverage (ThaiB to thegovernment. MW 13,200 of capacity total with plants to 2020fo billion needs about$480 Vietnam networks, boost power supplies, andup mu as invest to need will region the in mies diabut stillfallsshortofChina's 6.8 per cent ofitsGDPoninfrastructurethe highest DevelopmentBank tothe According Asian lower middle-income country. eligibleno longermany of for status andis hugedemand ofinfrastr partly fundits to This isconfirmation that dive size." intoincrease its be added will idle the generated interest "All becomes he said. (SBV)," when Vietnam fund ment and be audited by StateAudit of Viet re Assembly's National the following used State budget,ensures themoney The fund, attheState Treasury inanopenaccount belongstothe which is put that sale toaState-owned enterprise (SOE) eq conference onDecember 25that Vietnam willtransfer allthe gains fromtheSabeco DangQuyetTien, Head ofthe Enterprise (MoF). an according to spendinginstead, velopment Beer Beverage Corp. (Sabeco)thismonthfordebt repayment but investment and de- Vietnam willnotuse the $5billiongained fr repayments. in proceeds into decides toput Government 26/DEC/2017 INTELLASIA| while Hanoians havediscover Records showthattheSaigones way. when moving in foreign countries isconsidered as the convenientandsafest most flowing intheheartof each Vietnamesepe mostly countries in the AsiaPacificregion. number are the world inthe Eighty countries Autumn Festival. out for atrip. Andthe time that thepeople bookvehicles themost ina year is the Mid- people really want totakeadvantageofthes leagues at the company and also by its South Korean management at the company The alsoby leagues Koreanmanagement team. and is just its South culty adapting tohisnew surroundings. He province's the at worker office year-old When movingtonorthern Thai Nguyen provincetowork, Nguyen Van a28- The, thelatter. for inanissue workers the skilled but of lack companies Korean employeesVietnamese arepresented withg 26/DEC/2017 INTELLASIA| The State, with a 36 per cent out of theauction. stayed for a institutional buyer the only emerged as VN ECONOMIC TIMES VN ECONOMIC TIMES holding inSabecoenough toreta stment from SOEs in recent in stment fromSOEs ed more than 490 cities. ed morethan490 es have arrived in 544 cities arrivedin544 es have will beusedforthe rightpurpose. "Thefundswillbe cent. The bank estimates thatemerging econo- Vietnam's largest brew largestVietnam's Samsung ElectronicVietnam, hadalittlediffi- , and about 1,380 1,380 km ofhighways, about , according and grade water and sanitation facilities. andsanitation grade water uitisation fund manage uitisation fund ev) outlaid nearly VND110 trillion ($4.8 bil- "The government has declared it will not ucture after it graduated tomiddle-income it after graduated ucture ople, andusingvehiclebooking application Finance Departmentat MoF, toldapress m-today/sabeco-sale-to-fund-infrastruc- solutionson infrastructuredevelop- and This shows thattheexplorationpassionis the low-cost loans it once qualified for as a as for qualified once it loans the low-cost nam andsupervised by the StateBankof ch as $26 tobuild transport ch as$26 trillion to2030 ood opportunities when working at South atSouth when working opportunities ood r infrastructure, includingeleven power already (ADB), Vietnam spends 5.7per was helped, though, by many ofhiscol- om om selling 54 per centof SaigonAlcohol frastructure investmentrather than debt e holidays to play with their family or go orwith their family play e holidaysto figure in Southeast Asia and ahead ofIn- and Asia Southeast figure in that Vietnamese people discover in 2017, discover in2017, Vietnamesepeople that majority stake asglobal brewinggroups official from theMinistry of Finance times is a way for Vietnam Vietnam for away is times of countries in the world, in theworld, ofcountries in vetorightswill entirely er. Vietnam Beverage Beverage Vietnam er. 26 December 2017 54 /65 d by the ministry. d by the 26 December 26 BUSINESS Vietnam finance& business Vietnam Intellasia In the opinion ofSouth Korean enterprises, employment opportunities toVietnamese workers. recrui intoVietnam, to flow and havecreatednearly proven effective such as Samsung, Lotte, LG, Doosan, Kumho, Posco, Lotte, GS, andHyosunghave their projects on schedule. Manyprojects South Korean investors, in general, comply attheMini (FIA) Agency vestment cent ofallforeign direct in months of2017,SouthKorean investment in billiontodate, for18.1 of $54.7 accounting Japan tobecome thelargest foreign investor at forinterpreters andassistants. cially As ployees, withthegreatestdemand seen in In Vietnam, most sectors with SouthKore quality Seeking Vietnamese people are the opposite, sodiff that realisewith herboss. now "I her job said work isdoneefficiently." Lan that the characterstyle oftheirtry tounderstand and bosses,also so employees while the holidays inVietnam,thesendsits company and culture inbothlife other'sstand each Working together does, however, involve some effort. "My boss and Itrytounder- nus," Le said. benefits($440) amonth,thecompany su offers knowledge ofthe Korean lang they are familiar withthe country'scultureandworking environmentand have some enterprisesMany havelookedworkers toVietnamese returning fromSouth Korea,as paid agoodsalary." am homeland,thereforesaid.company and decided inmy "I toworkataSouthKorean have factoriesin the provinces, whichhavelower production and labour costs," she in bigcities like Hanoi orHCM City, wh wo Korean-speaking South skilled "Most tage. offers. She studied for three years in SouthKorea, which shesaidgivesher an advan- northernof NamDinhprovince,said she is Hoang ThanhLe, who works atSouthKorea's TCE Vina DenimCo. in her homeland chance to herpractice Korean and better an provides each day her and for opportunity report," she way towritea straightforward and often shareshisknowledg things, lot of a knows boss "My bus. by day every back and Ninh Bac to commutes but Lan hasalso Nguyen ThiNgoc After being transferred to Samsung SDIV innorthern BacNinh province last year, expectat mixing high tomed to the job, thankstohishelp." Indeed, South Korean managers are known for his if Ididn'tmeet served mywork,and my thr "During hesaid. fastidious," quite from hismanager. "Ihavebeen impressedby said. He has adapted tohisnew jobmuchmo ager can communicate with staff andpartne few problems duringworking hours. "Every faced werewithhisnewlivi The problems Leaving the hustle and bustle of Hanoi to wo Hanoi to and bustleof hustle Leaving the Korean bosses South business inVietnam. one of peoplewith many an interesting tale to tell aboutworking foraSouth Korean ions with fairness. vestment totheForeign vestment the (FDI) according In- in country, tment demand hasincreasedsignificantly, bringingmore uage. "Inadditiontoastarti e with his staff, for example about the most and themost succinct about forexample hisstaff, e with been impressedby hermanager.She still lives inHanoi stry ofPlanningandInvestment. that shehas that about sometimes debated issues requirements he corrected me. I'm nowaccus- I'm hecorrectedme. requirements ile manySouthKorean-invested companies South Koreans often speak concisely, while South Koreansoftenspeakconcisely, 700,000 jobs. As South Korean FDI continues FDI Korean South jobs. As 700,000 understand the SouthKorean workingstyle. ee-month probation period, he directly ob- period, he ee-month probation theend of June, SouthKoreahadsurpassed from leading SouthKorean corporations an investment needKorean-speaking an investment em- work," The said. "For example, on national on "For example, Thesaid.work," besidesemploying ordinary workers, they the electronicsmanufa ng environment, whileoverall he had very per cent of the total. Inthefirsteleven of the per cent erences inopinioncanbemisunderstood." very satisfied with the salary the company the thesalary with very satisfied with the laws of said. Workinga good atSamsungSDIVis Vietnam reached $8.18 billion, or24.7per one speaks inVietnamese,one speaks while myman- best wishes and gives giftstoemployees, rs in both Vietnamese and English," he in Vietnam, total in Vietnam, with registered capital rk in Thai Nguyen pr rk inThaiNguyen interesting experience. Shealsohasthe re quickly thanhe expected, with help my manager, as he is very nice but also butalso nice very is he as manager, my rkers onlywanttodevelop their careers ch as overtime and a end of the yearbo- end anda overtime as ch ng salaryofVND10million Vietnam andcarry out 26 December 2017 55 /65 cturing sector, espe- cturing sector, ovince in 2015, the the in 2015, ovince 26 December 26 BUSINESS Vietnam finance& business Vietnam Tima Financial via loans provided More than $500mn in Intellasia conducted online. Itsgoal is tobecomethe now are loans Tima All risk. manage and approveloans toquickly lenders enables that Tima uses automated credit scoring tech transactionsstandat more Successful Fina Tima via lending in are involved wide 10,000 handle to able be to capacity ing Every dayithandles more than 1,000 new loans on anationwide scale andis improv- ceived millions of USdollars fr those seeking loans withlenders.Ithas b Tima is afinancial technolog Tima nancial floor, itsofficial launch million than$500 in More loans been have http://vneconomictimes.com/arti ment." and attract more skilled workers, to demand meet for our expansion anddevelop- next two years, we will alsooffer more attrac easier JeonWooik, communications," of CEO expansionpart oftheir plans."Ourcompany has implemented anumberoftraining pr phone accessories,mobileblankets andCo., LCD whichspecialisesnam inproducing Recognising the importance of traininghuma skills that meet the requ of automationreplacing people, the latter repl jobs willdisappear, Many 4.0. be from Industry atrisk put will workers unskilled of largely The employment Asean countries. while qualifications, technical as low such re many challenges continue toface will of thecountries most influenced by the four Orga Labour theInternational to According Dao Quang Vinh,director of the Institut and the of target a sustainable workforce in cent ofwhom have diplomasor certificates. qu relates cern, however, to thegenerallow slightly inthesecondquarterof this year, been stable rate has etnam's unemployment According to arecent report from its Institute of Labour Science andSocial Affairs, Vi- of La Ministry from the infigures reflected Korean investorsabou among South Concerns on,"hesaid. foryou later tage multin experience at of years five or four withexperience workingat human resources Kim Ta Vietnam Co., gineerat HuvisWater the southand bringing successfulcandidates nies in the north ofVietnam facealack of mains limited, making recruitment adifficul number ofworkersmeetingThe conditi the technology transfers. lack professional skills and workers only finishedhighschool, while en similar tosalariesin is which per month, They language. Korean knowledge ofthe ing now need alargenumber ofhigh-qualityem Fintech startup Fintech startup holdsoffici 26/DEC/2017 INTELLASIA| VN ECONOMIC TIMES irements ofthe new age. al launchon December 20. practical knowledge and and from toacquire fail knowledge knowledge practical y (fintech)startupthatquic aced bynew jobs that requir inHanoionDecember 20 heard. om Singaporeaninvestmentfunds. cle/business/fi than VND15 trillion ($700 million). ($700 trillion VND15 than applications a day. Nearly 5,000 units nation- 5,000 day. Nearly a applications garding the quality of its human resources, e ofLabour Science andSocialAffairs. nology basedona learning and data model their home country. But most Vietnamese country. Butmost theirhome ational companies, it is a competitive advan- Korean interpreters, withmany recruiting in een testing hasre- een operations since2015 and testing ogrammes for theirVietnamese workersas mustbe equipped with knowledge and bour, Invalids, and Social Affairs (MoLISA). (MoLISA). Affairs Social and Invalids, bour, from 1.96per The cent to2.26 per cent. con- largest peer-to-peer(P2P) lending platform successfullyagreed productivity islower than inmany other ncial, with more than 800,000 customers. ncial, than800,000 with more the country faces many obstacles," said nisation (ILO), Vietnam is and will be one is andwill nisation (ILO),Vietnam ons set by SouthKorean enterprises re- ality ofVietnameseworkers, only 23 per gineers and other university graduates th industrial revolution (Industry 4.0).It (Industry th industrialrevolution ployees with workplaceskillsandawork- ployees with t task. In particular, Koreancompa- t task.In South particular, "Vietnam's labourmarketis still lacking, offers Koreanlanguagetrainingtoenable e Hyeong, there is aserious shortage of for the last five years and only increased increased and only years five last for the tive employment polici tive employment multinational companies. "If you have you "If companies. multinational n resources, South Korea's SJ Tech Viet- Tech SJ Korea's n resources,South to the north. Accordingto to thenorth. the En- Chief SJTech Vietnam, told VET. "Over the are willingtopay are from to$2,500 $1,000 t the quality ofViet t the tting-together kly and conveniently links kly e certain skills. In the face the face In skills. e certain upon via theTima Fi- 26 December 2017 56 /65 namese workers are es to retain talent talent es toretain 26 December 26 BUSINESS Vietnam finance& business Vietnam Japanese investors industrial park for Can Tho builds production plant animal feed hi-tech begins on WorkNinh Thuan: City's green property Group invests in HCM Japan's Mitsubishi Intellasia citys-green-property/123861.vnp https://en.vietnamplus.vn/japans-mitsubish tripling the figure the January-November, same period year. last directinvestme tracted thelargestforeign According Peop themunicipal to reportsfrom districts. more propertyinvestmentsinDistri velop project, Riverside th Lotus theDiamond After signGreen Building (LEED)Council.the US standardsdevised by The complexwill bedeveloped under theLeadership inEnergyDe- andEnvironment city. cooperation inked astrategic through Ph bemade will The investment Japanese MitsubishiGroup. tion-plant/123834.vnp https://en.vietnamplus.vn/ninh-thuan-wo inthelocality. activities business conditions for thefirm during theconstructi Meanwhile, provincial departments, branches and authorities must create favourable sponsibility. He also ordered the companytoset up recr hygiene. theconstruction's toensure resources bilise provincialCommittee Chair ofthe People's trialisation aswell ascreating jobs for local people. The project will play a significant role in promoting local mordernisation and indus- day. tonnes per first inits USD) VND (661,500 at 15 billion The plant,investedbyth trict, thesouthern central coastal province of Ninh Thuan. 24 at December Phuoc TienIndustrialCo of started construction Work 26/DEC/2017 INTELLASIA|VNA ance withgreenconstruction LotusThe Diamond RiversideComplex inDistri 26/DEC/2017 INTELLASIA|VNA via-tima-financial http://vneconomictimes.com/article/busine advice financial reliable consultancy andconnectionservices financial of first provideras the market in2015 tech With initial investment capital of VND150bi rea. Vietnamin andbesimilar topopularmodelsin US, the Europe, China,andSouthKo- to Japaneseexperts. th from kilometers some four apartments has The developer completed construction of Can ThoCity'sDevelopment InvestmentFund (Cadif). by developed centre.Itis from kilometers thecity six Rang District inCai Park trial The industrialpark is infa of CanThotoserve Japanese en city Delta Mekong inthe built being is Park Industrial Friendship The Vietnam-Japan 26/DEC/2017 INTELLASIA| THE SAIGON TIMES tocustomersnationwide. e HighTechnology Agritech Limited Ninh Company Thuan ct asection covering 43 hectar a11.7hectare feed planton production hi-tech animal agreement to branch out green housingprojects inthe standards with 30 million US terprises operatingin the city. e industrial parktoprovide accommodation uc Khang afterCorporation thetwosides mplex in PhuocTiencommune, Bac Aidis- P2P technologyinVietnam. It began tooffer rk-begins-on-hitech-a nt amount with 984.4 cts 1, 2, 8 and 10 and Tan Binh and Tan Phu Phu BinhandTan Tan and 10 cts 1,2,8 phase, has designed capacity of 3,000-5,000 of3,000-5,000 designed phase, has capacity ss/more-than-500mn-in-loans-provided- uitment plan and carry out planandcarryout its uitment re- social quality, labour safety and environmental environmental and safety labour quality, i-group-invests-30 million-usd-in-hcm- i-group-invests-30 Luu Xuan Vinh asked the investor tomo- on as well as facilitate itsoperation and llion ($6.6 million), llion ($6.6 Cadif-Hung Phu 1tenementwith170 in June 2016,providingsimple, fast,and e two partners will work together to de- to together work will partners two e le's Committee, the real estate sectorat- ct 8, HCM City will be built inaccord-8, HCMCitywillbe ct es inside HungPhu1Indus- D ininvestment fromthe D millionUSD during nimal-feed-produc- Tima joined thefin- 26 December 2017 57 /65 26 December 26 BUSINESS Vietnam finance& business Vietnam construction kicksoff processing factory Feed Ninh Thuan: stores inVung Tau VinMart+ opens15 Intellasia http://bizhub.vn/corporate-news/vinmar name. retailtigious and BrandFinance's brands This year, VinMart andVinMart+washonoure markets and convenience stores inmany system istheretail andVinMart+ VinMart system in Vietnam. number of3,000stores nationw VinMart+ is expected to continue toexpand its scale to more cities withanexpected sumers in Vietnam," Nguyen thedesire products,with quality with safe and fo model retail aconvenient is "VinMart+ nus points. count, while customers who own VinID cards havethe chance toearn 10 per centbo- wi event,VinMart+ special this To celebrate three brands of VinMart+, whichare VinEco, VinMart Home and VinMart Cook. customers pr time, in For thefirst the coastal quality and freshness, meeting thedive availabl products all toVinMart+, According essed foods, fresh vegetables, fruitsand meat. Each store hasthousandsofdaily-need item Do Chieu,Tran Phu, LeLoiand Vo Thi Sau. which are located on streets withhigh density Each VinMart+ stores inVungTauhas an VinMart+retailing system inthesouthern market. ern coastal cityofVung Tau on Sunday, 15VinMart+ Some convenience storeswere 26/DEC/2017 INTELLASIA|VNS tural Information Centre Can ThoChairVoThanhThongandAbeMasa 3,000-5,000 tonnesper day, the needs company Ninh AgritechThuan general director Le Va market demand. depending on phases inthefollowing billion to VND108 capital investment to raise billion (US$666,60 atacostofVND15 11.7ha Invested by the Ninh Agritech Hi-techThuan Co Province. Ninh Thuan Phuoc TienIndustrialComplexinBac Ai Construction of ahigh-tech cattle feed proc 26/DEC/2017 INTELLASIA|VNS http://english.thesaigontime Japanese investors. the city, so the city has launched JapanDesk, aservice to assist currentand potential in opportunities out Tho. However, moreJapaneseto sound Can have investors come vestment (FDI) butonlysixprojects projects, Investment,Delta hasat the Mekongning and According to statistics of the Foreign Inve pa industrial toput the facilities ture Can ThoChairThong asked Cadiftoquickly model factories toserve the immediat the diverse sc to smaller lotscorresponding and electronicengineering,He prop projects. Abe Masayukithe said industrial parksu is investors.html (VAIO), lastweekend visi s.vn/57696/Can-Tho-builds-ind Thi Hong, VinMart+ CEO, said. ide next year, affirming its position as the largest retail rk into operation in Aprilnext year. e operations of someenterprises. e operations rse requirementsrseconsumers. ofthe marking the development of VinMart and ofVinMart thedevelopment marking r thecommunity, whichprovides consumers t-opens-15-stores-in- provinces andcitiesacrossthecountry. provinces top 50 most valuable Vietnamese brand District's Phuoc Tien southernCommune, area ranging from 100sq.m to 300sq.m, arearangingfrom100sq.m stment Agency under th of Vingroup,whichownssome1,000 super- itable to mechanical engineering, precision precision engineering, to mechanical itable essing factory kicked off onSundayat the ll offer promotions of up to 35 percentdis- offer promotions ofupto ll simultaneously inaugurated inthesouth- inaugurated simultaneously ales ofJapanesefi s, includinghouseholditems, spices, proc- ovince will have the opportunity to access toaccess opportunity have the ovince will 0) in the first phase. The company 0) in expects firstphase.Thecompany the n Thanh said with designed capacity of with designed n Thanhsaid worth $12 millionhavebeenlicensed in e in the stores have guaranteed origin, have e inthestores osed theinvestor divide the land into complete the construction ofinfrastruc- complete the of residents, such as Truong CongDinh, such as of residents, toimprovethequalityof life of the con- tracted more than 170 foreign direct in- foreign direct 170 tracted morethan to have acorn and herd farm covering yuki, directorof d astheVietnamReport's top10pres- Ltd, the factory is built on an area of of area an on built is factory the Ltd, ted the industrial park. ted the ustrial-park-for-Japanese- rms, and some build vung-tau_290989.html the Vietnam Agricul- the Vietnam 26 December 2017 58 /65 e Ministry of Plan- 26 December 26 BUSINESS Vietnam finance& business Vietnam profit nextyear VND3.47 trillion BSR targets over consumption2018 in coal million tonnesof Vinacomin targets36 Intellasia Tran Ngoc Nguyen, BSR'sgeneralTran Ngoc director, sa 2018_290986.html http://bizhub.vn/news/vinacomin-targets-36 holds 100 per cent ofchartercapital and fi Following its organisation restructure, Vina It alsotransferred 10 one-member ing capital withdrawal was VND2 trillion. ated companies and transferred two foreign invested projects. The totalvaluefollow- The group,this year,also completeddivestme VND13.4 contributed 2016. It year-on-year increase. Itsprofit wasestimate tril reachedVND107 in2017 revenue Its total bour safetyand environmental protection. Vinacomin willalsoenhance management of inven- high with tories based on demand. market coal reduce and demand high in is that coal on focus will member Its exploitation and production. group signed set targets, the meet the To million tonnes.rent 10 It isalsotryingtoreduce coalinventorie 2018. in tonnes ofcoal Vinacomin plans to producesome35.36 mi nificantly dependingon tr addition, Vinacomin has been activeindive thermo-power plantsare scheduled tobecome "Coal exploitation andtradingnext year wo million tonnes, up 400,000 from2017. Hai toldaconference onMondaythatofthistotal,coal exportsareexpected tobe 1.9 said. director,Vinacomin's general Hai, Dang Thanh tion of some36milliontonnesin CoalandMi Vietnam National 26/DEC/2017 INTELLASIA|VNS off_290987.html http://bizhub.vn/news/ninh-thuan-feed-p the locality. the firmduringconstructionas Meanwhile, local departments andauthorities ployment andfulfilling He alsoordered a re companytosetup the ty and environmental hygiene. resources tomobilise the investor asked He income forlocalfarmers. increasing jobs and process, creating prov the contributes toboosting task that significant a is this said Vinh Xuan Luu Committee People's provincial the of Chair fertiliser and farming technology, thecompany while lots, land farming tribute The companywilllinkitsproductionwith an areaof4,000-6,000ha. and assigntasks for2018heldin It was oneofthe contents at BSR's conferen some VND8.33trillionandprofit-after of tion tr totalrevenue of nearlyVND78.4 targeted Binh SonRefiningand Petrochemical Co Ltd(B 26/DEC/2017 INTELLASIA|VNS social responsibility. social aditional ones," he added. trillion to the State budget. State the to trillion nerals Group (Vinacomin) has targeted coal consump- targeted coal has nerals (Vinacomin) Group the southern centra southern the well asfacilitate its operat 2018, anincrease of 2.5million tonnes fromthisyear, and seek markets, Thanh said. companies limited to its branches. toits companies limited ce toreview the comp s in2018toeightmilliontonnesfromthecur- contracts with its members undertaking coal membersundertaking its with contracts ince's modernisation and industrialisation rocessing-factory-construction-kicks- illion (US$3.44 billion), State budget contribu- billion),State budget (US$3.44 illion ve units, out of its total 47subsidiaries. total ofits out ve units, households'Households willcon- farming. cruitment plan with priority on local em- llion tonnesofcoal to ensure construction quality, labour safe- -tax ofmore than VND3.47 2018.trillion in comin has four subsidiaries in which it it inwhich subsidiaries comin has four rsifying itsconsumpt uld see favourable c d at VND2 trillion, up VND1 trillion from trillion VND1 up trillion, VND2 at d million-tonnes-of-coal-consumption-in- will payforfarmers toworkonthatland, lion (US$4.7 billion), posting6.1percent billion), lion (US$4.7 id in 2017,id BSRexceeded targets planned SR), operatorSR), ofDungQuatRefinery, has natural resources, products' quality, la- operational,increasingcoaldemand.In nt from five subsidiaries and six associ- must create favourable conditionsfor l province ofQuan l ion andbusiness activities in any's performancein2017 and import 500,000 and import onditions as many 26 December 2017 59 /65 ion markets,notsig- g Ngailastweek. 26 December 26 BUSINESS Vietnam finance& business Vietnam VND500b for finance subsidiary VNPT wants to sell profit goal Mobile World nears Intellasia http://bizhub.vn/markets/mobile-wo VND2.6 trillion in post-taxprofit. to record plans World Mobile 2018, In and electronicsstores. stores 607 1,068 phone stores total numberofMobileWorld's The tronics stores, 200Bach hoa xanhstores In 11months, Mobile World opened 668 ne trillion. toVND5.1 basis percentonayearly 74 rose sales fruits, contributed VND1.19trillion to The company's Bach hoaxanh(Green store) mobile phone retailsectors hitting 124 per centand 14 per cent. electronics and inits rates income growth with annual trillion, VND59 to nearly year The companyannouncedthatitsrevenuein cent. per increase of38 nearlytrillion post-tax profit was VND2 Its reached91 per profits post-tax 11-month Investment World Mobile retailer The digital 26/DEC/2017 INTELLASIA|VNS year_290983.html to7.79 pershare,equivalent price ofVND14,600 initial an at shares million 242 to sell plans Thecompany billion. $3.2 some of value a bethe BSR will regard toequitisation, With PVN. In addition, BSRcontributed 33 contribution tothe PVN's totalrevenue.Its has contributed significantly in PVN.The re Vietnam NationalOil and GasGroup (PVN)'s billion (surpa timated atVND932.82 company. In for the per year million $1.45 This year, BSR planned tocarryout 19 en the targetsset. main equipment categories ofthe plantin JuneandJuly were completed and exceeded per cent pacity of105 Quat Oil Refineryoperated In 2017, Dung was trillion andprofit budget VND10.34 Turnover wasestimatedatnearlyVN tonnes. tonnes, 6.1 million of with productionoutput VND19 trillion in2016. VND19 reported profitsofThe company VND19 bi until end billion. toVND384 the of wereonlyequal the June 2016 assets Its billion. VND2.79 of profit modest reported year, PFT this of half the first In with chartercapitalbillion. ofVND500 PTF Founded in1998, is Vietnam's first VNPT's ofthe from PTFispart Withdrawal billion. VND50 adeposit of pay must The publicauctionforPTFwillbe held on million). (US$21.9 billion VND500 for atleast its financesubsidiaryPostand Telecomm Vietnam Postsand GroupTelecommunications 26/DEC/2017 INTELLASIA|VNS http://bizhub.vn/markets/bsr-targe nearly $1billion for State. the next phase, BSR will sell 49per cent of char BSR has targeted collectingsomeVND4 tril publicoffering(IPO) StockExchange. attheHCM on January 17, itial 2018, designed capacity. The third maintenance activity for the 7,000 forthe7,000 The activity designed third maintenance capacity. ts-over-vnd347 trillion-profit-next- ts-over-vnd347 ssing 97.2percentoftheplan). rld-nears-profit-goal_290963.html per centofPVN'stotalprofit. the company's11-monthrevenue andonline VND86.4 trillion in full-year revenue trillioninfull-year and VND86.4 and mobile stores. 117 retail phone finance company, wholly ownedbyVNPT, -after-tax was some VND8.04 trillion. someVND8.04 -after-tax was cent of the full-year profitcent forecast.full-year ofthe ergy optimisationergy solutions,some saving unication FinanceCompanyLimited (PTF) reached 1,923 1,923 after 11months,including reached continuously, stabilising atanaverage stabilising continuously, ca- addition, BSR's cost was addition, cost saving in2017 es- BSR's largest enterpriselargest tobeequitised ever,with February 1, 2018. Participating investors Participating February 1,2018. ter capital to strategic investors, collecting tostrategicinvestors,collecting capital ter w stores nationwide, including 351elec- llion in 2014, VND21 trillion in 2015 and in2015 VND21 trillion llion in2014, State budget accounted for 10 percentof lion forStatecoffers via thisIPO. Inthe plantodivestfromnon-core businesses. (US$88.5 million) in 11 months, a yearly a months,(US$88.5 million)in11 venue of BSR accounted for 16 per cent of per cent venue16 ofBSRaccountedfor consumption output of nearly6.1 million retail chain, which sells vegetables and 11 monthsincreased 49 per centyear-on- JSC (Mobile World) hasreported that its D80.52 trillion, contribution to the StateD80.52 trillion,contributionto general director emphasized that BSR thatBSR general director emphasized per cent ofits charte (VNPT)wants to sell all theassets of 26 December 2017 60 /65 r capital, at its in- its at r capital, 26 December 26 BUSINESS Vietnam finance& business Vietnam farm billion USDinhi-tech FLC to invest1.5 2018 to DaNang in early Jeju Airto open route Intellasia earliest. sendsFLC He itsemployeesproposed to Ja said. Masayuki FLC's projects," atall applied be quickly betweenth characteristics manysimilar With "This model is suitable with FLC's green and sustainable development orientation. he added. active inexpanding ment. Farmdohasbeen culture model combiningsolar energy hasrece Speaking atthe signing ceremony, FarmdoChairsaidIwai Masayuki thehi-tech agri- FLC. In addition,Farmdowi electr cheap while takingadvantageofthe thesyst that showed Studies stable. remains machinery tural sunshine andagricul- most ofthe continue toreceive crops energy,newableeven as This model uses double-sided solar panels to cover agricultural land, allowing for re- sector. models inthe solar farmcombining agricultural hi-tech tw week, the last central cityofThanhHoa Under an agreement was signed between FLC and Japan'sFarmdo Company in the period. 2018-20 USD billion 1.5 invest plansto Group FLC 26/DEC/2017 INTELLASIA|VNA In order to increasingmeet traveldemand and 2017 February 2018. December Viet Asian destinations,including Southeast The Republic ofKorea's Jeju Air announced itwould open somenew routes to several 26/DEC/2017 INTELLASIA|VNA vnd500b_290985.html http://bizhub.vn/tech/vnpt-wants end of2017. the until It has34.1million mobile subscribersand cent. 9.3 per by up VNPT paid an estimated sum of more than cent. per 21 pr year. Its the previous per centover by 7 It reportrevealed that the group earnedre tiveness. towa itsgrowthmodel renovating at aimed Hung said developmentstrategyinthe its proval early, whichwasthebase stra and development plan restructuring its At aconference onFriday,TranManh Hung, Prepare forequitisation 123881.vnp https://en.vietnamplus.vn/ thequality of to improve flights fromJe rent 31 to39by the endof next year. It According toaJejuAirrepresentative, theairl 25,2018. 4toFebruary uary Airport toBangkok(Thailand),Taiwan (C The carrier added that itplans to openmore flights from the CheongjuInternational ang MaiofThailandduri from theJejuInternationalAi launch flights ll also transfer advanced farmin also transfer advanced ll ng the period, it said. period, it ng the jeju-air-to-open-route-to-da-nang-in-early-2018/ em canincreaseproductivity andreduce CO2 emissions, for equitising for equitising in2019. the group -to-sell-finance-subsidiary-for- will hire more 189-seat Boeing 737-800 planes planes Boeing737-800 will hire more 189-seat ju IslandtoSouthe hina) and Ulaanbaatar Ulaanbaatar and hina) energy one of the world's most advanced most the world's energy one of 4.6 million Internet broadband subscribers 4.6 Internetbroadband million subscribers venue of VND144.7 trillionin20017,rising icity resource for agricultural production. agricultural icity resourcefor e-tax profit reached VND5.1 trillion, upby o sides will cooperate to o sideswillcooperate develop a4,000ha 2018-2025 period withavision is to 2030 2018-2025 in hi-tech agriculture inVietnamthe during this winter, th rport to Manila of the Philippines and Chi- pan tolearn about the technology atthe rds improvingproductivityand competi- VND4 trillion to the State budget in 2017, 2017, budgetin to theState trillion VND4 tegy would get the prime minister's ap- minister's the prime get would tegy the model both insidethe model both and outside Japan, nam's central city of Da Nang, between central cityofDaNang, nam's e two countries, we believe the model can themodel e two webelieve countries, ine aimstoincrease its fleet fromthecur- chair ofVNPT,saidthegroup expected ived support from theJapanesegovern- ived support g technologiesusedinJapanto ast Asian ast Asian countries. 26 December 2017 61 /65 e airlinewillalso (Mongolia) fromJan- 26 December 26 BUSINESS Vietnam finance& business Vietnam court to tax department take Uber threatensto Businesses Sustainable again among Most Deloitte Vietnam Intellasia sustainable-businesses http://vneconomictimes.com/article/busi years." 180 almost professionallargest se position astheworld's deve of years thecountry'smorethan26 with th is as this seriously, very take this "We Thu saidHa society," of member as a and business community, includingourclients an however, whichthe Ministry ofFinance rejected. about the sentUber anofficialcomplaint balance. evenits to ($215,412) billion VND4.9 havetopay will the and company tax declaration false pany's afine issued authority Besides, taxation the income tax. personal million) ofVAT as VND26.3 billion ($1.16 bill VND10.5 pay to have will Uber Notably, tax arrears. Department City HCM 2017, the toJune 2014 Previously, afterinspectingUber's taxrecord rights. its within City totaketheHCM decision Uber's and tions The taxdepartment's opinion is clear that newswire Vneconomy thatUberannounced pa Le Thi Thu Huong, deputy directorofth tion tocourtnecessary. if the ofTaxa- about isDepartment even charge the plain City to and willing take HCM million)intax arrears ($2.94 to local tax au Netherlands-based Uber International Holding BV agreed to payVND66.68billion 26/DEC/2017 INTELLASIA|VIR su and buildingmore growth targets nomic "In the time tomoretowards Vietnam's eco- come, weare tocontributing committed methodical operationsand most with the process,the Ra evaluation athorough After sibilities. process, itspotential forfu credibility, business's the reflects deeply CSI which isderived fromeconomic, social,and Evaluations and rankingswere based on th ceive the notable award. Deloitte Vietnam wastheonly organisation in of Labour, and the Stat MinistryEnvirNatural Resources and of Labour, Invalidsan Ministry of the Vietnam Business Councilfor Sustaina the trade-servicesectorfor second consec Deloitte Vietnamwasamongthe "Top10Most sion. succes- in year for second in Vietnam businesses sustainable most Top10 in Company 26/DEC/2017 INTELLASIA| https://en.vietnamplus.vn/ ing tobuildinggreen, clean high-q It wouldalsooffer production. tional im to step anecessary is asFarmdo such FLC Chair TrinhQuyet Van signing saidthe VN ECONOMIC TIMES e Securities Commission. ture development, and itssocialture development,and environmental respon- flc-to-invest-15 billion-us and sustainable agriculture. and sustainable d Social Affairs,the Ministry and Trade,Industry of the e core valueof Deloitte prove productivity incomparison tradi- with productivity prove ness/deloitte-vietna e HCM City Department of Taxationtold onment, the Vietnam general Confederation decision tothe US-Asean Business Council, sustainable development strategies in sustainable developmentstrategies 2017. Thanh, Chairwoman ofDeloitteVietnam. Thanh, Chairwoman the tax arrears are compliant with regula- with compliant are arrears the tax and more than VND14.6 billion ($641,841) and ($641,841) more thanVND14.6 billion ble Development in cooperation with the with incooperation ble Development thorities, however, itwillcontinue to com- tings Board selected the Top 100 businesses 100 the Top tings Boardselected of VND10.3 billion ($452,805) for com- the billion($452,805) ofVND10.3 e Corporate SustainabilityIndex(CSI), stainable valuesin its ability to attract talent, its operational operational its talent, to attract ability its uality products to contribut- the market, to products uality utive year atarecent ceremony hostedby environmental activities and efforts.environmental The activities and s since itstartedoper ion ($461,589) in taxes withheld, as well as taxes withheld, in ion ($461,589) of Taxation requested Uber BVtothe Uber pay requested of Taxation lopment, and also Deloitte globally, in its inits globally, Deloitte also and lopment, with a reputable Japanese hi-tech firm firm with areputableJapanesehi-tech rvicesnetwork with a history that spans d partners andthenaturalenvironment, d partners the professional servicesindustrytore- Department ofTaxation to court iswell Sustainable Businesses in Vietnam"in ying thetaxarrearswithinone week. d-in-hitech-farm/123866.vnp m-again-among-most- Vietnam withinthe Vietnam thataligns 26 December 2017 62 /65 ations in Vietnam in ations in 26 December 26 BUSINESS Vietnam finance& business Vietnam chair named New PetroVietnam comeback 'pho'-nomenal restaurateur makes Vietnamese Intellasia back.html http://www.vir.com.vn/vietnamese-restaurateur-makes-pho-nomenal-come- phoshopunder (another Vietnam House at Bush W. George President US former of visit the as well as Vietnam in visit official daughter his and President BillClinton US the early years of business, thephochain wa thebrandnamePho2000 theendof 1999, At inthe2000s. it did as popularity thesame witnessed In spiteofthe thriving busi City. HCM Lien hasonlybeenoperating fore, untilnow, sistent quality when simultan to ti due bad restaurants new four launching Before going off theradar, thechef and her husband had failed in their attempts of tral region ofVietnam. gr 400 weighingingredient, awholelobster groundchef blackpepper. TheVietnamese mushrooms, seafood stock with atouchofgarn tofu, silken as such ingredients typical features pho lobster of bowl a Additionally, lion dong, aimingtodrawtheat end gastronomic outletowned by Lien andhe The pho dish (Vietnamese noodle soup) topped The phodish(Vietnamesenoodlesoup) and even foreign local customers. own herVietnam, shecameupwith across culinary concept. Afterconducting atast ster noodle dishserved atarestaurant in States before returningtoVietnam to laun The Vietnamese chef, who spent years working inthe culinary areaintheUnited press reported. back withasignature lobsterpho dish pric welcomed two former US presidents, George TrucLi My thegrid, years Huynh After off 26/DEC/2017 INTELLASIA|VIR http://www.vir.com.vn/uber-threatens-to-take-tax-department-to-court.html lands Double Taxation AvoidanceAgreemen foreign contractortaxpursuant to Vietna ments,a periodof6to12c inVietnamfor Uber's revenueearned through itsdriver from fares. ing taxi rides, makesdecisions on rates and a network of local driver partners. Itmatche ified that thefirm has generated incomein inspectingthetaxpaymentsofUber After Netherlands canbe applied inthecase. tion and how the Double TaxationAvoidance Agreement between Vietnam and the Ub and council with representativesfromthe Busine bytheUS-Asean arequest Following He was born on March 16, 1971 He wasbornon March 16,1971 in Thanh Ch Son Party Committee. the Centra member of is currently a Thanh Commission, startingDecember24. Economic tee's Gas Group(PetroVietnam) and al Oiland TranSy Politburo hasappointed Vietnam's 26/DEC/2017 INTELLASIA|VNS ness of the City,Pho2000hasnot pho "industry" inHCM eously runningalarge chain tention ofdiscerning customers. LasVegaswasthe inspirationbehindthenew e-test at various p mese regulations and theVietnam-Nether- regulations mese onsecutive months. Therefore, itissubjectto partners, who count as permanent establish-partners, whocountaspermanent , theHCMCityDepartmentof Taxation ver- l Party Committee and Secretary of the Lang the management ofPho 2000) in 1995. management the ch the Pho 2000 brand, unveiled thatalob- ch brand,unveiled the Pho2000 deputy Chair ofthe Central Party Commit- Vietnam fromits ride-hailing serviceswith added seafood like clams and the signature like clams andthesignature seafood added had amealat during Pho 2000 Saigon his ed at VND499,000 ($22), newswire Vnex- ($22), VND499,000 ed at promotionaland receivespayments offers, en, aVietnamese chefwhoserestaurants Thanh asthenewchairofVietnam Nation- ammes that she hand-pickedfromthecen- recipe whichcouldbemore palatablefor s driversprivate of ve wasborn withitssignaturepho. During ss Council, the ministry held a meeting uong District, Nghe AnProvince. Previ- s the place to go, especially after former especiallyplace togo,s the after ming and their inability to maintain con- to maintain inability their and ming er on October 18 to discuss the collec- tax er onOctober18todiscuss t, the ministryt, statement. saidinthe two restaurants situatedinthecentreof W. Bush and Bill Clinton,W. Bushand a come- made r husband, with the price ofhalfamil- with lobster was in was withlobster ish, like parsley, sliced red chili, and and chili, red sliced parsley, like ish, ho-serving restaurants ho-serving of culinary outlets.There- of 26 December 2017 63 /65 hicles to thoseseek- hicles troduced atahigh- 26 December 26 BUSINESS Vietnam finance& business Vietnam fair kicksoffinHanoi fair International fashion 4IR winICTawards Products for smartcity, produce farming models, Da Latmarket hi-tech Intellasia http://bizhub.vn/news/da-lat-market-hi The event willcloseon Friday. products. experiences intechnicalapplicationtowa topating firms explore newbusiness opport Committee viceChair, Phan Van Da,describe In his speech at the market's openingcere farming. localities like Lam Dong, HCMCityandDong some ofwhich are displaying awards.html http://english.thesaigontimes.vn/57665/ government. the local plan of may and iOS platforms on Android bile apps applications suchas products and Some awards,according tothepanel ofjudges. and servicesaremorecommercThese products lutions, and value-added services. 67entries, with mo lured year's This contest dents. and services anindividual, by and 11teams, The ICTAwards acknowledgedachievem 2017 tion. informa- flood providing and networks, via CCTV security improving information, ernment has introduced ahost of smart city said attheawardCommunications, ceremony the of deputy director Le QuocCuong, experts. said lution, urban forsmart useful maybe 2017 Awards Many winning productsintheICT(Inf 26/DEC/2017 INTELLASIA| THE SAIGON TIMES The market,held as part of the seventh Da ama at customers and domestic international arepresenting fr enterprises than100 More 26/DEC/2017 INTELLASIA|VNS http://bizhub.vn/news/new-petr tions oneconomic management. havebeenarrested andunde Dinh LaThang, some ofitsformer as seat" "hot sidered a asPetroVietnam's The position ofthe Ministry ury Department and Lak depu People's Committeein2010-2012; the DakLak Commission; viceSecretaryof of Chair deputy and mittee in2012-2015 such positions worked invarious ously, he International Centre ofExhibition in thecapi The 21st Vietnam International Fashion Fair 26/DEC/2017 INTELLASIA|VNS garment, leather footwear,cosmetics,jewellery garment, booths featur 200 houses over fair The annual enterprises. garment sector. Italsoincludes booths area of4,000sq.m. hi-techagriculturemodelsbeingimplementedinsome chair has been vacant since March this year. It is con- March thisyear.Itis sincevacantbeen chair has ovietnam-chair-named_290988.html Finance during the 2007-2008 period. 2007-2008 Finance during the ormation andCommunicationsTechnology) HCM DepartmentCity ofInformationand -tech-farming-models-produce_290966.html Products-for-smart the Central Party Committee'sInspection technology apps on socialnetworks, and mo- chairmen, including former Politburo leader leader Politburo former including chairmen, showcasing raw materials for the textile and rds turning agricultural out competitive mony on Saturday, theprovincialPeople's Party Committee and vice Chair of the Dak of the Party CommitteeandviceChair Lat Flower Festival, ha Festival, Lat Flower uits, vegetables and otherfarm produceto as Secretary ofth st of thembeing software products and so- unities, make trade connectionsand share (VIFF) 2017 opened on December 21 the 21 at opened onDecember (VIFF) 2017 applications such applications as providingplanning together with eight outstanding ICTstu- eightoutstanding with together development, and fourth industrial revo- tal, with the particip r investigation for violating State regula- be useful for the smart city development the smartcity for be useful ing leadingfashionbrands intextile and rket in Da Lat City, Lam DongProvince. City, Lam Da Lat rket in d theevent as agood chanceforpartici- on December 20 that the HCM City gov- City the HCM that December 20 on Thap,as inhi-tech well asequipment as well as beauty care as wellbeauty ents in the development of products of ents inthedevelopment ially viable than thosein the previous ty director general of the State Treas- ty directorgeneraloftheState -city-4IR-win-ICT- e Bac GiangParty Com- 26 December 2017 64 /65 ation ofnearly150 s nearly 180 booths, booths, 180 s nearly services in a total services atotal in 26 December 26 BUSINESS Vietnam finance& business Vietnam Intellasia End http://bizhub.vn/news/international-fash Association, the event will nam Leather, Footwear and Handbag Associ Co-organised by Vietnam ExhibitionFairAs productstocustomers. their seek partners while providing aplatform for enterprises and designers to introduce opportunit a goodThe eventisdescribed as export and trade inthedomestic market. uted tothesector'sdevelopmentandsupport The VIFF,which is a traditional activity of ucts' quality and designs, he said. have been recognisedbylocalconsumers th vals in the domestic market by building Vietnamese garmententerprises are determin market. intotheworld integrated fashion brands have made their presence in in said (Vinatex), Group Garment and tile at Speaking the opening ceremony, LeTien wrapupon December 26. and positioning their and positioning ion-fair-kicks-off-i thedomestic fashion industry, hascontrib- recent years, more and moreinternational years,recent more Truong, general director ofVietnamTex- Vietnam as thecountry has been deeply y for local fashion businesses to meet and to meetand businesses fashion local for y anks to their efforts in improving prod- inimproving totheirefforts anks sociation Centre (VEFAC), Vinatex, Viet-(VEFAC), Vinatex,sociation Centre ation,and Vietnam Textileand Apparel ed businesses overtheyears inboosting ed tocompeteequally withforeignri- n-ha-noi_290945.html brands. Manyofthem 26 December 2017 65 /65 26 December 26