Stock market

VN Index breaks through 730 points 12/Apr/2017 Intellasia| Vn Economic Times All indexes up on positive April 11. All main indexes on Vietnam's stock market closed higher on April 11. On HSX, the VN Index increased 1.46 points (0.2 per cent), the VN30-Index 1.21 points (0.17 per cent), the VNMid-Index 3.24 points (0.35 per cent), and the VNSml-Index 1.02 points (0.21 per cent). On HNX, the HNX-Index gained 0.2 points (0.22 per cent), the HNX30-Index 2.8 points (1.69 per cent), the UPCoM Index 0.39 points (0.69 per cent), and the VNALL-Index 2.57 points (0.24 per cent). Liquidity on HSX reached VND3.1 trillion ($136.8 million), 9 per cent lower than yesterday, and on HNX was VND735 billion ($32.4 million), 12 per cent higher. The VN Index opened at 729.87 points and reached 731.7 points early on then eased slightly before rising again to 732 points, where it remained for some time then closed the morning session at 731.1 points. At the beginning of the afternoon session it fell to 730.6 points then rose to 731.8 points before closing the day's trade at 731.3 points. In food and beverages, KDC and VNM increased 3.5 per cent and 0.6 per cent, respectively. Other large caps fell: BHN by 3 per cent, SBT 1.6 per cent, MSN 0.9 per cent, and SAB 0.7 per cent. In banking, MBB increased 2.3 per cent, CTG 1.1 per cent, and VCB 0.5 per cent. BID closed at its opening price while STB and EIB lost 1.2 per cent and 0.8 per cent, respectively. In energy, PGD and CNG rose 1.9 per cent and 1.1 per cent, respectively, while GAS fell 0.2 per cent. Large caps in real estate to increase included KBC, by 2 per cent, KDH 0.6 per cent, VIC 0.4 per cent, and NVL 0.3 per cent. FLC shed 2 per cent. Among other large caps, MWG increased 1.5 per cent and VJC and ROS 0.8 per cent. BVH and HPG fell 1 per cent and 0.2 per cent, respectively. ROS saw the highest liquidity on HSX, with VND539 billion ($23.7 million), followed by FLC with VND216 billion ($9.5 million), HPG with VND100 billion ($4.4 million), and the largest cap, VNM, with VND66 billion ($3 million). On HNX, SHB increased 7.9 per cent, VCG 1.9 per cent, PVS 1.8 per cent, and VCS 1.1 per cent. NTP and VNR closed at their opening price and ACB lost 2.9 per cent. Foreign investors net sold on HSX by VND312 billion ($13.7 million) and on HNX by VND3 billion ($132,420). http://vneconomictimes.com/article/banking-finance/vn-index-breaks-through-730-points

VN Index sets nine-year record 12/Apr/2017 Intellasia| VNS The VN Index closed at 731.3 points yesterday, up 0.2 per cent over Monday's level and a record high since February 20, 2008. Shares rose on both national exchanges, but a correction is looming as the benchmark index continued to set new peaks. The key index has expanded roughly 10 per cent this year. On the Ha Nội Stock Exchange, the HNX-Index also inched up 0.2 per cent to end at 90.6 points, the highest since December 17, 2014. The northern market index has climbed 14.3 per cent compared to the end of 2016. Money flows moved among steel, construction, real estate and securities stocks, and shifted back to large-cap banks and some blue chips. Vietcombank (VCB), Vietinbank (CTG), Military Bank (MBB), VinGroup (VIC), Vinamilk (VNM) and Vietjet Air (VJC) advanced, but PV Gas (GAS), insurer Bao Viet Holdings (BVH), Sacombank (STB), Asia Commercial Bank (ACB) and brewery Sabeco (SAB) declined and dragged down the market. Shares of Bao Viet Holdings and Asia Commercial Bank (ACB) were among noticeable losers, while these businesses reported high profits last year. Profit-taking activities increased in the afternoon trade on the back of rising investor worry over a possible correction. Liquidity increased over Monday with over 296 million shares worth a combined VND4.6 trillion (US$201.8 million) traded in the two markets, up 34.3 per cent in volume and 4.5 per cent in value compared to the previous session. "Although we keep positive market outlook, this is an unpredictable period when cash flows are volatile and differential among stock groups," analysts at Vietnam Investment Securities Joint Stock Company wrote in a report. The continuous breakthrough of the VN Index accompanied by slight increases in recent sessions might indicate a near-term correction, they said and reckoned the VN Index could retreat to 720 points when it touched 735. Foreign investors extended their net buys in the local stock markets, picking up shares worth a net value of VND314.3 billion on Tuesday on the two exchanges. According to the latest report by the National Financial Supervisory Commission, foreign investors have been net buyers on the local securities market since the beginning of this year, for a total of $554 million in the first three months, including bonds worth $418 million and stocks valued at $136 million. http://vietnamnews.vn/economy/374507/vn-index-sets-nine-year-record.html#4iOIk1kixrpvMDKs.97

Shares slow on investor caution 12/Apr/2017 Intellasia| VNA Shares grew at a slower pace on April 11 on the two stock exchanges as investors displayed caution ahead of the annual shareholder meetings of big companies this month. The benchmark VN Index on the HCM Stock Exchange edged up 0.3 percent to close at 729.9 points. The southern market index increased 0.7 percent on April 7 and has expanded 9.7 percent this year. On the Hanoi Stock Exchange, the HNX-Index also inched up 0.3 percent to end at 90.4 points. The northern market index has expanded nearly 13 percent this year. Liquidity decreased with a total of 220.7 million shares worth a combined 4.4 trillion VND (192 million USD) traded in the two markets, down 14.8 percent in volume and 10.2 percent in valued compared to the daily average volume and value recorded last week. According to analysts at Bao Viet Securities Co, the rally of indices was still supported by some large- cap stocks, while cash flows have yet to reach a necessary level, which could make the market volatile. Banks and other financial firms such as Vietcombank (VCB), BIDV (BID), Vietinbank (CTG), Military Bank (MBB), Asia Commercial Bank (ACB) and private equity firm Masan Group (MSN) all declined. On the other side of the fence, securities companies rose strongly, including Saigon Securities Inc (SSI), VNDirect Securities Co (VND), Saigon-Hanoi Securities Co (SHS) and BIDV Securities Inc (BSI) with gains of between 3 and 9 percent each. Some major shares, such as insurer Bao Viet Holdings (BVH), real estate giant VinGroup (VIC), Vietjet Air (VJC), steelmaker Hoa Phat Group (HPG) and brewery Habeco (BHN) also climbed and supported the market. "Investors should avoid aggressive buying when the index has surpassed peaks and wait for clearer signals," Tran Hai Yen, an analyst at Bao Viet Securities Co, wrote in a note. Major companies - Vinamilk, Vietcombank, BIDV, Saigon Securities Inc, VinGroup (VIC) and Vietjet (VJC) - will hold their annual meetings this month and information surrounding these meetings is likely to have an impact on investor psychology. BIDV Securities Co's analysts have warned the market could see a correction if the released earnings reports at these meetings fail to meet investor expectations. http://en.vietnamplus.vn/shares-slow-on-investor-caution/110038.vnp

Growth slows on mixed performance of large-cap stocks 12/Apr/2017 Intellasia| VNS Shares edged up on Tuesday morning, but the mixed performance of large-cap stocks restrained market growth. The benchmark VN Index on the HCM Stock Exchange inched up 0.2 per cent to 731.1 points. On the smaller Hanoi Stock Exchange, the HNX Index rose 0.6 per cent to end at 90.9 points. A total of 157 million shares worth a combined VND2.5 trillion (US$110 million) were traded in the two markets. Financial companies lost value in the morning, with the big losers being BIDV (BID), Vietinbank (CTG), Masan Group (MSN), Saigon Securities Inc (SSI) and Sacombank (STB). At the other end of the spectrum, several large-cap stocks such as Vinamilk (VNM), Kido Group (KDC), PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD), Hau Giang Pharmaceutical (DHG), FPT Corp and Hoa Sen Goup (HSG) buoyed up the market. The shares of budget airline Vietjet (VJC) advanced 0.8 per cent to VND131,800 a share, following the company's proposal to hike its foreign ownership limit to 49 per cent, and pay a 31.6 per cent cash dividend for 2016's earnings and an estimated 30 per cent dividend for 2017. The carrier will seek its stockholders' approval at the annual shareholders' meeting, which is scheduled on April 20. The afternoon session starts at 1pm. http://bizhub.vn/markets/growth-slows-on-mixed-performance-of-large-cap-stocks_285423.html

Brokerages: Selling pressure to build up this week 12/Apr/2017 Intellasia| The Saigon Times Securities enterprises have expressed concern over possible high selling pressure this week as the VN Index beat the strong resistance level at 725 points with unsustainable support last Friday. According to Bao Viet Securities Company, the market maintained positive rises last week but turnover declined sharply and falling stocks outnumbered rising ones, indicating there is weak support for a further index increase this week. In fact, the uptrend was chiefly driven by large caps while cash flow was not distributed evenly among sectors. BIDV Securities Company said the market may not maintain its positive momentum after breaking the 725-point level given unsustainable support last Friday. Investors are advised to raise the ratio of cash in their portfolios. They are also advised to be watchful for the news about the US military strike against Syria, it said. FPT Securities Company, meanwhile, expected the VN Index to approach the 730-735 point range this week. Currently, the index is well supported at 720 points after establishing a new price level, so a "sudden drop" is unlikely in the short term. However, investors should not be too optimistic as cash flow has yet to buoy an uptrend, it commented. Last Friday, the VN Index surged in the afternoon phase to close at the high of the day, up 0.65 percent to its highest level since February 2008. The total trading value in HCM City and Hanoi reached over VND5.9 trillion, the highest level since September 2014. The VN Index rose 0.8 percent for the week for a third consecutive week of gains, showed data of Viet Capital Securities Company. GAS posted its biggest one-day gain in four months despite its disappointing first-quarter business results after the Brent crude price continued to rally in Asian trading as the US missile strike against a Syrian air base stoked fears that Middle Eastern oil supplies could be crimped if violence spreads. STB soared to a 17-month high, extending a 28 percent rally over the last three weeks, after EIB said it plans to sell its entire 8.76 percent stake in the bank. Foreign investors net bought shares for three sessions in a row on the HCM City market before shifting to the selling side in the last session. Overall, they net purchased 179,000 shares with a combined value of nearly VND204 billion, way below VND829 billion in the previous week. http://english.thesaigontimes.vn/53379/Brokerages-Selling-pressure-to-build-up-this-week.html

Room loosening for foreign investors warms up 2017 AGM season 12/Apr/2017 Intellasia| NDH After the year 2016 with many businesses such as CII, DMC allowed to loosen foreign ownership rate, in the 2017 Annual general Meeting (AGM) season, many "big businesses" which had no more room for foreign investment are considering to bring this issue to discuss with shareholders. First is Coteccons Construction Joint Stock Company (HOSE: CTD), the favourite stock of both domestic and foreign investors because of extremely good basic factors (strong business results, desirable asset structure) and the price is always increasing, bringing many profits to investors. With these characteristics, in 2016, CTD was very successful in offering nearly 11.5 million shares to strategic investors for over 153,000 dong/share, thereby mobilising 1.744 trillion dong. In 2017, this share continues to be heated up when the company discloses that it will submit to shareholders at the 2017 AGM the modification of business lines, adjusting regulations and increasing the ownership ratio of foreign investors (room). At a recent press conference, explaining the postponement of the 2017 AGM, Tran Quang Tuan - deputy general director of the company said he planned to present to shareholders to approve the increase in foreign room from 49 percent to 60 percent following the onwership demand of foreign investors. Coincidentally, the "big boss" in the same field i.e. Hoa Binh Construction & Real Estate Corporation (HOSE: HBC) said that it will submit to shareholders the plan for increasing the ownership ratio of foreign investors (room) in line with the regulations of law. At the same time, the individual issuance plan for strategic investors with up to 35 million shares at the issuing price not lower than the average market price 20 days at the time of issuance is also a content to be submitted at the upcoming AGM. Receiving the same attention, Binh Minh Plastic Joint Stock Company (HOSE: BMP) has announced the documents for the 2017 AGM with two contents including leaving two business lines which are goods delivery by land and advertisement to carry out the procedures for increasing foreign room to 100 percent. The plastic industry is the one that has the big wave of M&A, with the top plastics corporations around the world trying to take over the domestic businesses in order to enter the market. The "giant" in the industry - BMP has long been "hunted" by Siam Cement Group (SCG) of Thailand. This group, through its subsidiary is The Nawaplastic Industries (Saraburi) Co, Ltd, has owned 20.4 percent stake of BMP since 2012 and put people in the BOD of the company. With the ambition of expanding in many areas in Vietnam, SCG certainly does not just want to stop at this rate for BMP. Up to now, BMP has no more room for foreign ownership with entity and individual ownership of 48.53 percent and 0.45 percent respectively. In the field of unlimited foreign room and there is foreign strategic shareholder i.e. Dragon Capital that has owned over 30 percent stake for a long time, HCM City Securities Company (HOSE: HCM) is also the name waiting to open foreign room. And as the investors' expectations, one of the contents discussed at the upcoming 2017 AGM is to increase the ownership ratio of foreign investors to 100 percent. According to the BOD's explanation, after increasing room there will have many restrictions for the business operation of the company but the room increase will bring good opportunities for HCM shares to increase the liquidity in transactions, improving the mobilising capacity when necessary and changing the shareholders' structure in the way with more foreign investors. Following DMC, Hau Giang Pharmaceutical Joint Stock Company (HOSE: DHG) is the next name in the sensitive business field (pharmaceutical) that wants to open foreign room to over 49 percent. This issue is raised in the context that the company's foreign room is full with foreign institutional shareholders holding 48.02 percent stake. In 2016, DHG welcomed a foreign shareholder i.e. Taisho Pharmaceutical Joint Stock Company - a Japanese pharmaceutical corporation that received the transer of 21,304,064 shares, equivalent to over 24.4 percent stake of DHG from other foreign organisations. SCIC is currently holding 43.31 percent stake of DHG and the SCIC's divestment list does not contain DHG. Besides, BOD of PVI Joint Stock Company (HNX:PVI) says that it will submit the plan to open more room for foreign investment to up to 100 percent in the upcoming AGM on 27th April. PVI's room for foreign investors is now 49 percent, in which HDI Global SE holds 37.63 percent of voting shares. After a long time fluctuating from 24,000 dong to 25,000 dong/stock, the price of PVI stock had increased sharply to 32,800 dong each in the session of 30th March 2017 due to the influence of expanding foreign room and it is now around 30,000 dong/stock. After a disappointing year, the stock of Thanh Cong Garment - Investment- Trading JSC has experienced a significant improvement in one recent month due to the fact that it has opened room for foreign investment in the recent AGM. Currently, TCM's room for foreign investors exceeded 49 percent, in which Eland Asia Holdings PTE.LTD holds 43.23 percent stake. The company's BOD says that the main purpose of opening room for foreign investors is to find strategic partners to carry out its plan of core business and value development. The opening is divided into two stages. The first one is increasing foreign ownership percentage to 70 percent in 2017. The second one is increasing it to 100 percent. However, not all proposals of opening room is approved. Another "golden egg laying chicken" in the divestment priority list of SCIC i.e. Sa Giang Import Export JSC had expected a divestment by withdrawing its capital from the printing field and adjusting its content of real estate business. However, the Company failed to get written consent of shareholders when the consent rate was just more than half. With this failure, in the upcoming 2017 AGM, BOD will not re-submit the matter.

March: Record new foreign investors granted trading codes 12/Apr/2017 Intellasia| VNS The Vietnam Securities Depository (VSD) in March granted a total of 228 securities trading codes to foreign investors, of which 188 were individuals and 40 were institutional investors. This is a monthly record for new foreign investors allowed to invest in the local securities market in recent years. In March, VSD also canceled two trading codes - one of an individual and another of an institution. In February, 200 transaction codes were granted to foreign investors, while this number in January was 113. By the end of March 2017, a total of 20,798 foreign investors were trading on Vietnam's securities market - 17,551 individuals and 3,247 institutions. According to the latest report by the National Financial Supervisory Commission, foreign investors were net buyers on the local stock market since the beginning of this year, picking up securities worth a total of $554 million in the first three months (bonds worth $418 million and stocks valued at $136 million). Ending March, total portfolio value of foreign traders was estimated at $23.4 billion, up 14.8 per cent over the end of 2016. Foreign ownership made up 19.2 per cent of the total stock market and 6.2 per cent of the total bond market. http://bizhub.vn/markets/march-record-new-foreign-investors-granted-trading-codes_285433.html

Bao Viet Group's revenue up 24pct in 2016 12/Apr/2017 Intellasia| VNS According to the group's audited financial results released on Monday, revenue from life insurance touched VND13.48 trillion, making up 52.4 per cent of the company's total revenue. Non-life insurance revenue reached VND7.19 trillion or 28 per cent, while revenue from financial services and other areas totalled around VND5 trillion or 19.6 per cent. The group's total assets last year was VND14.5 trillion, a significant 25 per cent increase compared to the same period in 2015, data revealed. Privatised in 2007, Bao Viet Group aims to become a leader in both life and non-life insurance markets by 2020, as well as in fund management. The group now has 170 branches nationwide. http://bizhub.vn/markets/bao-viet-groups-revenue-up-24-in-2016_285431.html

VinaCapital completely divests Dai Phuoc Lotus 12/Apr/2017 Intellasia| VIR Vietnam Opportunity Fund Limited under VinaCapital, the leading asset management and real estate development firm in Vietnam, announced on April 10 that it has divested its entire stake in the Dai Phuoc Lotus real estate project located in the southern province of Dong Nai, near HCM City. The site is a future residential township development with a total site area of 198.5 hectares and was acquired with VinaLand Limited in 2007. The project is currently undergoing its first phase in construction and sales. Vietnam Opportunity Fund Limited (VOF), alongside VinaLand Limited, disposed of its entire stake in Dai Phuoc Lotus to China Fortune Land Development at a total valuation of 20.4 per cent above the March 31, 2017 unaudited net asset value. This transaction will result in net cash proceeds of $16.5 million to VinaCapital. As a result of the sale, VOF's holding in direct real estate development projects has been reduced to 5.2 per cent of the total NAV. "This is a significant milestone in VinaCapital's on-going strategy to reduce direct real estate holdings, and enables VOF to remain opportunistic in market areas where we see significant upside, namely privately negotiated deals and OTC investments," Ho said. Dai Phuoc Lotus consists of 332 high-end semi-detached and detached villas. Around 200 villas of the first phase have been handed over to buyers. Located in Dong Nai, it takes only 30 minutes by river or 50 minutes by road to reach HCM City centre. Dai Phuoc is a perfect venue for vacations, meeting all demands of residents, such as large swimming pools and an open-door picnic area. The developer has decided to reserve a large area particularly for farming in the project. This farm will supply clean vegetables to residents at the same time as being an ideal picnic venue for visitors in the future. Dai Phuoc Island is considered a pearl in the east of HCM City, in the shape of a water drop, offering residents a very nice living environment. http://www.vir.com.vn/vinacapital-completely-divests-dai-phuoc-lotus.html

Market corrects on profit-taking 13/Apr/2017 Intellasia| VNS Shares fell on the two exchanges on Wednesday as investors booked short-term profits after the benchmark index set a nine-year new peak. On the HCM Stock Exchange, the benchmark VN Index retreated to 725.58 points, down 0.8 per cent. The key index has gained nearly 10 per cent this year. On the Hanoi Stock Exchange, the HNX Index also decreased 0.8 per cent to close at 89.91 points. The northern market index has expanded more than 14 per cent since 2016. Large-cap shares fell under selling pressure when 22 of the 30 largest stocks by market value and liquidity dropped. Losers include banks, insurers, steel and plastic manufacturers, consumer product companies, oil and gas firms and real estate developers. Realty shares were hit hard after discrepancies in earnings reports by some real estate companies decreased investor confidence. Net profits of Tan Tao Investment Industry Corp (ITA) shrank from VND54 billion (US$2.4 million) to VND39.2 billion in 2016, equivalent to a 28 per cent decrease after auditing. ITA shares suffered an eighth straight losing session on Wednesday, closing at about VND3,000 a share, a loss of 26.3 per cent. Hoang Quan Consulting Trading Service Real Estate Corp (HQC) also posted lower net profit in 2016 after auditing, falling from nearly VND112 billion to just VND19.6 billion. HQC shares sank 5 per cent in the morning trade but bounced back to the reference price of VND2,340 a share. Negative spillover spread to big property companies such as VinGroup (VIC), Kinh Bac City Development (KBC), Vinh Phuc Infrastructure Development (IDV) and Construction Joint Stock Company No 3 (VC3). On the other side of the fence, the recovery of Vinamilk (VNM), Vietjet Air (VJC) and software producer FPT Corp (FPT) cushioned the market. "Q1 earnings have gradually been reflected in stock prices and the market may see a temporary information gap," analysts at FPT Securities Co wrote in a report. They urged attention to movements of financial stocks as this group often reflected market trends. Liquidity rose slightly from Tuesday's figures with nearly 304 million shares worth a combined VND4.9 trillion (roughly $215 million) traded in the two markets. http://vietnamnews.vn/economy/374596/market-corrects-on-profit-taking.html#xAr5RE26buSb2H11.97

Foreign cap to be focused at annual shareholder meetings 13/Apr/2017 Intellasia| VNS A number of listed companies--especially those whose capital structures have run out of space for foreign investment--will discuss raising foreign ownership at their coming annual shareholder meetings. According to the HCM and Hanoi Stock Exchange, there are 30 companies that cannot receive additional foreign investment. Some of these companies are operating in the sectors involved in national security such as banking and property, while some can only lift the limit of foreign ownership on approval of their major shareholders. Additional foreign ownership has remained a big challenge for listed companies in Vietnamese stock market. Recently, the construction giant Coteccons postponed its annual shareholder meeting, which was scheduled on April 13, as the company wanted to ask its shareholders to approve the plan to raise the limit of foreign ownership in the company to 60 per cent from 49 per cent. The company's shares are an attractive target for both domestic and foreign investors, as the construction firm boasts a high growth rate and constant market growth. In addition, Hoa Binh Construction & Real Estate Corporation on April 26 will hold its annual shareholder meeting to discuss business strategies for 2017 and ask the shareholders to approve the lifting of foreign ownership in the firm. Other companies that will do the same include Binh Minh Plastic, HCM City Securities, DHG Pharmacy Company and insurance-finance firm PVI Holdings. Of the four companies, Binh Minh Plastic and HCM City Securities will be the two companies that attract the most attention when they bring the topic of foreign investment to their annual shareholder meeting. According to the management board of HCM City Securities, raising the limit of foreign ownership would help the company increase share trading liquidity, raise more capital and receive more support from foreign shareholders. In the case of Binh Minh Plastic, foreign investors hold 49 per cent of the firm's capital. The company has run out of space for more foreign investment and has drawn high attention from some foreign companies such as the Thailand-based Siam Cement Group (SCG) and the plastic sector itself often has big M&A deals with top plastic corporations trying to acquire local companies in order to enter the domestic markets. The issue of raising foreign investment has remained a difficult challenge for both listed companies and market regulators after the finance ministry in June 2015 decided to allow listed firms to lift the limit of foreign investment, depending on the sectors that the companies are operating in. Raising foreign ownership in listed companies is also one of the decisive factors that Vietnam needs to take into consideration if it wants to promote its stock market from the level of a frontier market to the level of an emerging market in order to attract higher foreign investment. http://vietnamnews.vn/economy/374595/foreign-cap-to-be-focused-at-annual-shareholder- meetings.html#op3LRizqbLjmh7Bl.99

FLC Faros offering attractive returns for foreign funds 13/Apr/2017 Intellasia| VN Economic Times Bloomberg data shows increasing interest in FLC Faros Construction Company among ETFs and offshore funds. Bloomberg data shows that FTSE Vietnam ETF holds some 3.12 million shares in the FLC Faros Construction Company (ROS) valued at over VND530 billion ($23.31 million), making it the fifth-largest investee company in the fund's portfolio. Almost all of the shares were purchased during the fund's first quarter review in 2017, which ended on March 17, at a price of VND160,100 ($7.03) apiece, totalling VND499 billion ($21.9 million). As a result, the investment in ROS has yielded more than $2 million in returns for FTSE Vietnam ETF, the second-largest exchange-traded fund (ETF) by net asset value (NAV) on Vietnam's stock market. Strong Buying from Foreign Players It's worth noting that FTSE Vietnam ETF saw poor performance during 2016, when its NAV per fund certificate ended the year at $22.28, down 2.4 per cent from a year earlier. The fund, however, has turned things around, with its NAV increasing 10.07 per cent since the start of this year, reaching $24.62 on April 10. With the inclusion of ROS since the second quarter, the fund's NAV is expected to perform well and this will be one of its best investments. Before FTSE Vietnam ETF, MSCI Frontier Markets Index ETF - a wider-reaching fund that covers global frontier markets with total assets worth $589 million - announced the addition of ROS to its portfolio from February 10. Based on the last trading day on February 28, the fund is calculated to have purchased a large amount of ROS shares at a price of VND148,000 ($6.7) each, translating into a return rate of 14.8 per cent for the fund to date. Besides these two ETFs, a number of offshore funds were also early birds in investing in ROS. Foreign players bought ROS shares as soon as it debuted on the Ho Chi Minh Stock Exchange with low market prices, according to exchange data. Together with Vietjet Air (VJC), Novaland (NVL), Mobile World (MWG), and Airports Corporation of Vietnam (ACV), ROS has become one of the cash cows for foreign funds since 2016. Notably, foreign-run funds acquired shares in VJC, MWG, and NVL before their listings at prices that were two-thirds or one-fifth of the present market price. Meanwhile, the appetite for ROS became strong after its share debut and purchasing demand emerged in early 2017, with prices having already risen sharply. Outlook for ROS Market perspectives remain unclear as the shareholders' meeting season comes to an end and short-term supportive news is thin on the ground. On such a backdrop, ROS is among the highlights, as its remains appealing to foreign traders, evidenced by stable trading volumes and uptrend. Positive factors lie behind this bright outlook. FLC Faros has announced that it has established subsidiaries in a bid to expand its involvement in real estate items in the golf-resort-villa complex at the Nhon Hoi Economic Zone in south-central Binh Dinh province. It has also purchased a stake and become the investor of an expansion to an eco-tourism compound in northern Vinh Phuc province. The company is also proceeding with a whopping golf-resort-villa-entertainment project on an area of 1,900 ha in central Quang Binh province with total investment of VND13.8 trillion ($606 million). It has also acquired a golf operator to improve capital usage. FLC Faros and FLC Group last month received in principle approval to invest in a high-end entertainment complex at the Van Don Special Economic Zone in northern Quang Ninh province, with an estimated investment of $2 billion. According to the preliminary plan, the project includes a wide range of properties, such as a resort complex, a five-star hotel, an international convention centre, a casino, a golf course, a safari park, a museum, a farm community, and a library. Meanwhile, Market Vectors Vietnam ETF (VNM ETF), run by Van Eck Global, will reshuffle its holdings in May as part of its second quarter review. It has $294 million worth of assets under management, making it the largest ETF on Vietnam's stock market. Based on previous reviews, it is highly likely that a ticker that has been included into FTSE ETF will be added to VNM ETF's portfolio. The most notable difference is that the candidate ticker needs to have at least six months of being listed before the review. This may have been the reason ROS was not included in the fund's portfolio in its latest review. Already meeting requirements for listing time, liquidity, and float ratio, ROS is likely to be added to VNM ETF's portfolio when the ETF is poised to collect data as at May 26 and announce the new portfolio on June 2. According to calculations, ROS could account for 5-8 per cent of the ETF's holdings, equivalent to $15-$24 million. The requirement on listing time has been the greatest obstacle in ROS becoming eligible for inclusion into the VN30-Index, which represents the 30 largest tickers on the Ho Chi Minh Stock Exchange. Consequently, it has not been included into funds that track the index, including South Korea's KINDEX Vietnam VN30 ETF, whose NAV stands over VND300 billion ($13.2 million). With its listing time exceeding six months, ROS is now entitled to join the VN30-Index given its liquidity and market capitalisation. Under relevant legislation, the VN30-Index is reviewed every six months and the next review will take place in July. With major shareholders holding nearly 80 per cent and the probability of being bought by foreign funds, ROS will likely experience an uptrend in the time to come. http://vneconomictimes.com/article/business/flc-faros-offering-attractive-returns-for-foreign-funds

VOF & VNL divest from Dai Phuoc Lotus project 13/Apr/2017 Intellasia| VN Economic Times Two exit from investments in residential - township development in Dong Nai province. The VinaCapital Vietnam Opportunity Fund Limited (VOF), a London Stock Exchange Main Market traded investment company established to target key growth segments in Vietnam, and VinaLand Limited (VNL), a closed-end fund trading on the London Stock Exchange's Alternative Investment Market (AIM), have announced their full divestment from the Dai Phuoc Lotus real estate project in southern Dong Nai province. The site is a future residential - township development with a total site area of 198.5 ha and was acquired in 2007. The project is currently undergoing its first phase of construction and sales. VOF and VNL disposed of their entire stake in the project to a company within the China Fortune Land Development Co., Ltd for net cash proceeds of approximately $48.8million, resulting of an IRR of -3.0 per cent. "With the closure of the divestment, VOF's exposure to direct real estate falls to approximately 5 per cent of total NAV," said VOF Managing director Andy Ho. "This is a significant milestone in the company's ongoing strategy to reduce direct real estate holdings and enables VOF to remain opportunistic in areas of the market where we see significant upside, namely privately negotiated deals and OTC investments." The project is a residential development and split into six zones. It is currently undergoing its first phase of construction and sales in one zone, with a further zone having received master plan approval for development. VinaLand Limited invests in key growth segments within Vietnam's emerging real estate market, including residential, office, retail, hospitality and township projects. Its objective is to provide shareholders with an attractive level of income as well as creating potential for capital growth. http://vneconomictimes.com/article/property/vof-vnl-divest-from-dai-phuoc-lotus-project

Shares bounce back on blue chip recovery 14/Apr/2017 Intellasia| VNS Shares bounced back on Thursday morning as selling pressure weakened. The VN Index on the HCM Stock Exchange inched up 0.24 per cent to 727.31 points. On the Hanoi Stock Exchange, the HNX-Index was up 0.13 per cent at 90.03 points. Both market indices decreased 0.8 per cent on Wednesday. Many large-cap shares recovered this morning and supported the market, including VinGroup (VIC), Vietcombank (VCB), Vietinbank (CTG) and Bao Viet Holdings (BVH), as well as Saigon Securities Inc (SSI), Sabeco (SAB) and Mobile World Group (MWG). Argibusimess Hoang Anh Gia Lai Co (HAG) and Hoang Anh Gia Lai Agricultural Investment Co (HNG) rose nearly one per cent on Thursday morning after witnessing a losing streak since last week. Speculative stocks are under heavy selling pressure as they are on the list of stocks using high margin lending of securities companies. Prices of these stocks have increased substantially this year which prompted profit taking. Liquidity, meanwhile, decreased slightly with over 111 million shares worth a combined VND2.1 trillion (US$92 million) traded on the two markets. Afternoon trade starts at 1pm. http://bizhub.vn/markets/shares-bounce-back-on-blue-chip-recovery_285492.html

Stock market capitalisation at 51pct of GDP 14/Apr/2017 Intellasia| VN Economic Times Capitalisation up 18 percent since end of 2016. Vietnam's securities market capitalisation has reached nearly VND2.2 trillion ($101 billion), an increase of 18 per cent compared to the end of 2016 and equivalent to 51 per cent of GDP, according to a report from the Ministry of Finance. On March 31 the VN Index stood at 722.31 points, up 8.6 per cent since the end of last year. Total trade in the first quarter was VND7.58 trillion ($333.6 million), 9.7 per cent higher than last year's quarterly average. Trade in government bonds reached VND4 trillion ($176.4 million) per session, up 0.4 per cent, while trade in stocks and fund certificates was VND3.57 trillion ($157.4 million) per session, up 22.4 per cent. As at March 31, the total amount of bonds issued was VND87.1 trillion ($3.84 billion), of which government bonds totalled VND56.5 trillion ($2.46 billion), representing 30.8 per cent of the plan, government bonds for Vietnam Social Insurance VND15 trillion ($661.5 million), and guaranteed government bonds VND15.6 trillion ($688 million). http://vneconomictimes.com/article/banking-finance/stock-market-capitalisation-at-51-of-gdp

VNPT to offload stake in two subsidiaries 14/Apr/2017 Intellasia| VNS The Vietnam Posts and Telecommunications Group (VNPT) will put up for sale their stake in two subsidiaries in May. The move adheres to the deputy prime minister's request to speed up the group's divestment from non- core business lines. The telecommunication group will offload its entire holding of 14 million shares, equivalent to 79.02 per cent of total stakes, in its real estate arm Vietnam Post and Telecommunication Land Joint Stock Company (VNPT Land). Foreign investors are allowed to buy a maximum of nearly 8.7 million shares. The starting price is set at VND9,700 per share. The auction is scheduled on May 12 on the Ha Nội Stock Exchange and the deadline for registration and depositing money is May 5. VNPT Land has charter capital of nearly VND177.2 billion (US$7.8 million). It posted a loss of over VND1.5 billion in the first nine months of 2016, a poor performance compared with the net profit of VND169.3 billion in 2015. Apart from VNPT, Vietnam Maritime Commercial Joint Stock Bank is the second largest stakeholder, with 14.11 per cent of capital. Post Equipment and Construction Joint Stock Company holds the remaining stake of 6.87 per cent. Also in May, VNPT will auction 2.45 million shares in Telecommunication Project Construction Development Joint Stock Company, equivalent to 49 per cent of the company's charter capital. Foreign investors can book the entire amount of shares offered. The auction, scheduled on May 8, will receive registrations until May 3. The company posted net profit of nearly VND344 billion in 2016, a surge of 250 per cent compared with the VND98 billion profit in 2015. Late in February, deputy prime minister Vuong Dinh Hue urged VNPT to speed up their divestment process. The group has to divest from 52 companies. http://vietnamnews.vn/economy/374526/vnpt-to-offload-stake-in-two- subsidiaries.html#z7gwfeQBjhWXLHmt.97

SSI regains lead in brokerage share on HNX 14/Apr/2017 Intellasia| VN Economic Times SSI and SHS exchange places since Q4 2016, with the former holding a market share of 9.87 percent in Q1. Hanoi Stock Exchange (HNX) recently announced securities brokerage market share in the first quarter of 2017. Accordingly, Saigon Securities Incorporated (SSI) regained leading in the top 10 securities brokerage firms with the largest brokerage market share on the HNX with 9.87 per cent of market share. Thus, in this quarter, SSI continues to lead the brokerage market share of both HSX (14.12 per cent) and HNX, affirming the position of Vietnam's No.1 securities company. Meanwhile, Saigon - Hanoi Securities (SHS) slipped to the second place with a market share of 8.51 per cent, sharply down from 10.6 per cent in fourth quarter of 2016. The third and fourth places have not changed compared to the fourth quarter of 2016, namely VNDirect (VNDS) and HCM City Securities Corporation (HSC) with market share of 8.28 per cent and 7.5 per cent respectively. MB Securities (MBS) and ACB Securities (ACBS) exchanged positions in the first quarter of 2017. In particular, MBS came in at fifth rank with 6.57 per cent and ACBS down one rank and placed at 6th with 5.68 per cent. FPT Securities (FPTS), from the 10th place, ranks at the 7th position with a market share of 4.41 per cent. The 8th and 9th places, unchanged from the previous quarter, were the Bank for Foreign Trade of Vietnam Securities (VCBS) and the Bank for Investment and Development of Vietnam Securities (BSC) with market share 3.98 per cent and 3.82 per cent respectively. Notably, Viet Capital Securities (VCSC) has fallen to 10th place with 3.58 per cent market share. It can be seen that the top 10 leading companies accounted for 62.2 per cent of brokerage market share of HNX in the first quarter of 2017, of which the top 3 securities companies with the largest market share were SSI, SHS, VNDS accounted for 26.66 per cent market share nationwide. On the UPCoM market, leading brokerage market share in the first quarter of 2017 is VCSC with a market share of 9.49 per cent. The second place belongs to HSC with 9.04 per cent. The next two positions are SHS and SSI with 8.45 per cent and 8.24 per cent respectively. Regarding the share of government bond brokerage on the HNX in the first quarter of 2017, four companies - BSC, VCBS, BVSC and HSC - led the market and all accounted the market share of over 10 per cent. http://vneconomictimes.com/article/banking-finance/ssi-regains-lead-in-brokerage-share-on-hnx

PV Power May Raise $600 Million From IPO, Key Investors 14/Apr/2017 Intellasia| Bloomberg PetroVietnam Power Corp., Vietnam's second-largest power producer, said the sale of a 49 percent stake to strategic investors and through an initial public offering could fetch about $600 million. PV Power, as it is better known, is open to selling as much as 60 percent of the company, contingent on government approval, according to a document posted on its website. The IPO and stake sale to one or two strategic investors are expected to occur simultaneously in late August, President and Chief Executive Officer Nguyen Xuan Hoa said at his Hanoi headquarters. PV Power, a wholly-owned unit of Vietnam Oil and Gas Group, may spread the sale of additional shares over three years, he said. The company has met with potential investors, including Singapore's Sembcorp Industries Ltd and GIC Pte, as well as Vietnamese investment funds Indochina Capital Corp., VinaCapital Investment Management Ltd and Dragon Capital, according to the document. BNP Paribas SA and Standard Chartered Plc are also representing undisclosed investors, the document said. Investment funds and power producers from Japan, South Korea, US and Middle East have also expressed interest, Hoa said. "Six months ago, we didn't actively approach the market," he said in the interview. "The market approached us with around 10 investors." PV Power, which expects to complete its corporate valuation this month, will hold more roadshows in April and May. He expects to have a short-list of potential strategic investors next month or June, and PV Power will choose one or two strategic investors, he added. Vietnam's electricity consumption is forecast to almost double to 271.4 terawatt-hours in 2026 from an estimated 144.4 terawatt-hours last year, according to BMI Research. "Vietnam is a clear outperformer in terms of power consumption growth when compared with the rest of Asia," said Georgina Hayden, BMI head of power and renewables. PV Power, which derives more than 90 percent of its revenue from power generation, is targeting to raise its power generation capacity by 153 percent through 2026 to 10,650 megawatts, mostly from gas-fired electricity, according to the website document. The company aims to produce 20 percent of Vietnam's power generation in 2026-27 from 15 percent now, Hoa said. "We are about to be a key player in gas-fired power plant production as liquefied natural gas is the future of energy for Vietnam," he said. "This is an exciting time for the country's power industry." The company hired Maybank Kim Eng Holdings and PetroVietnam Securities Inc. as consultants, according to the document. PV Power plans a listing on the HCM City or Hanoi stock exchanges this year after the IPO, Hoa said. https://www.bloomberg.com/news/articles/2017-04-13/pv-power-may-raise-600 million-from-ipo- strategic-investors

Finance

Reference exchange rate stays flat 12/Apr/2017 Intellasia| VNA The State Bank of Vietnam retained the reference VND/USD exchange rate at 22,321 VND/USD on April 12. With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,990 VND per USD and the floor rate is 21,652 VND per USD. In the opening hours, commercial banks made minor changes to their rates. Vietcombank listed the buying rate at 22,630 VND/USD and the selling rate at 22,700 VND/USD, down by 10 VND from the day ago. BIDV offered its buying and selling rates of 22,625 VND and 22,695 VND, per USD, up 5 VND. Vietinbank also raised its buying and selling rates by 5 VND to 22,630 VND and 22,700 VND, per USD.en.vietnamplus.vn/reference-exchange-rate-stays-flat/110101.vnp

Credit and GDP in reverse trend 12/Apr/2017 Intellasia| DTCK Although the credit growth in the first quarter saw the highest increase in comparison with same periods of the past six years, GDP growth reached only 5.1 percent, the lowest level since 2015. That left few concerns about effective destination of bank capital. Two years ago, although the credit growth in the first quarter was not high (in the first quarter of 2015, credit increased 1.91 percent; in the first quarter of 2016, credit improved 1.79 percent), GDP growth still reached 6.03 percent and 5.48 percent respectively. This changed in the first quarter of this year when according to the State Bank's report, as of March 23rd 2017, total bank credit provision to the economy had increased 3.14 percent in comparison with the end of 2016. Rising credit was forecasted from late last year as the economy stabilised and recovered. Credit is often associated with economic growth, because this is the main capital source for component I of the GDP formula (C+I+G+EX). I (investment) is the investment capital for the economy in which credit currently accounts for about 65 percent besides foreign investment capital, capital from budget and population. The problem is credit rises, but GDP reversed in comparison with the same period. Of course, according to the GDP formula mentioned above, credit is only a part of the economy growth decisions, besides consumption, government expenditures and the difference between import and export. However, in the face of unusual developments, there should have a more careful evaluation. According to many economists, the growth model of Vietnam has not been improved much and still relies mainly on investment capital, of which credit is a very important channel when a large number of businesses are living on credit. There is also opinion that the relationship between credit growth and economic growth has a 5-6 month lag. However, looking back to 2016, credit growth was pretty high at 18.71 percent and focused mainly at the end of the year. According to theory, this amount of credit must have had a positive impact on economic growth in the first quarter of this year. Therefore, the high credit but low economic growth caused many people to wonder about the destination as well as the effectiveness of the capital, although the State Bank affirmed that outstanding credit focused mainly on production and business sector with about 80 percent. According to a report of the National Financial Supervisory Commission (NFSC), investment and real estate business credit slowed down in 2016 with the increase of 12.5 percent only in comparison with the end of 2015, much lower than the growth of 28.3 percent in 2015. However, there was a "transformation" when consumption credit in 2016 was estimated to increase 39 percent in comparison with the end of 2015, accounting for 11.4 percent of the total credit (it was 9.8 percent in 2015). Of which, nearly 50 percent of consumption credit focused on loans for repairing house, buying house for living, in which the repayment source came from the borrower's salary. It is undeniable that bank credit capital helped the real estate market to "revive" after years of "clinical death". According to the Ministry of Construction, real estate transactions in March 2017 increased again after slowing down in Lunar New Year holiday. In Hanoi, in March, there were about 1,000 successful transactions, increasing 17 percent in comparison with February. In HCM City, there were about 1,100 successful transactions, up 22 percent in comparison with February. In general, the real estate market in the first three months of the year continued to grow, transactions were mainly taking place in the medium and high-end segments. CBRE' assessment said that with optimistic sentiment from 2016, the first quarter of 2017 saw an impressive increase, notably in Hanoi with the apartment and villa prices. In the condo apartment segment, there were a total of 9,398 apartments opened for sale from 35 projects in the city, showing a quarterly increase in both quantity and projects. In terms of offering prices, the projects located in prime locations, providing full amentities and utilities for residents tended to increase prices. All the apartment segments witnessed an annual rise in price. Of which, high and luxury segments grow the most at 8.4 percent and 12.3 percent. Specifically, in the secondary market, the average market price increased 0.5 percent by year. These numbers have created a question, does credit re-focus on real estate, in the form of consumption credit (!?) According to Dr Nguyen Tri Hieu, in order for credit to support economic growth, capital flows must actually go into manufacturing and business, if credit is pushed into real estate assets that are bought - sold, it will not contribute much to economic growth. "People borrow money from banks to buy houses then sell them to make profits, making the credit balance of the whole banking system increase. Meanwhile, the capital for real estate in this case does not support production so even if 3-4 percent credit is pushed into real estate, the economic growth still does not increase", Dr Hieu said. Therefore, in order to increase the efficiency of the capital flows to the economy as well as reduce risks, the destination of the capital flow must be tightly managed. The State Bank also said that the directions and solutions of credit management in the near future is to control credit scale in line with oriented indicators, while improving the quality of credit and creating favourable conditions for accessing credit capital; focusing on the fields of production, business and priority fields; carry out loans to encourage the development of hi-tech and clean agriculture, and study to amend and supplement to the Decree 55/2015/ND-CP on credit policies which supports agricultural and rural developments; direct credit institutions to continue implementing the policies to remove difficulties, creating favourable conditions for businesses and people to access the credit capital for production and business development. Specially, the State Bank emphasized that it will closely monitor the situation of credit granting to some potentially risky industries and sectors such as medium and long-term credit; credit for large groups of customers, BOT, BT transport projects; credit to real estate sector.

Vietnam lucrative for foreign banks 12/Apr/2017 Intellasia| VIR Last month, United Overseas Bank became the first Singaporean bank to receive an approval to open a wholly-owned subsidiary in Vietnam. The decision was announced by the State Bank of Vietnam (SBV) following Singaporean primeminister Lee Hsien Loong's visit to Vietnam on March 21-24. The bank will be the ninth fully foreign-owned bank in Vietnam. United Overseas Bank, one of Asia's leading financial institutions with 500 offices in 19 countries and territories, already had a branch in HCM City. Other foreign banks also opened local branches before becoming locally incorporated entities. Similarly, United Overseas Bank at one point held a 20 per cent stake in Phuong Nam (Southern) Bank, which has been merged into Sacombank in 2015. According to experts, foreign banks with experience from many other markets have quickly expanded to the domestic retail banking market. Despite having smaller market shares, their wide range of service offerings, such as card, credit, home loan, mobile banking or internet banking, might be their advantage. Here i's a look back at the progress of six out of the eight foreign banks in Vietnam: HSBC Vietnam and Standard Chartered Vietnam (from the United Kingdom), ANZ Bank (Australia), Shinhan Bank (South Korea), and Hong Leong Bank and Public Bank Berhad (Malaysia). The two banks not mentioned have just opened subsidiaries in Vietnam within the last six months. Malaysian' CIMB Bank was approved by the SBV in September 2016 with an authorised capital of VND3.203 trillion ($141 million). Two months later, Woori Bank made its debut and became the second South Korean bank in Vietnam. HSBC Vietnam HSBC's history in Vietnam dates back to 1870 when it opened an office in Saigon, now HCM City. The bank returned and opened a new branch in the city in 1995. In 2009, it became the first foreign bank to have a wholly-owned subsidiary in Vietnam. HSBC Vietnam is the largest foreign bank in Vietnam. HSBC also holds nearly 20 per cent in Hanoi- based Techcombank. Continuing the mother company's' international strategy to shed non-core businesses, in 2012 HSBC Vietnam sold its 18 per cent stake in leading state-run insurer Bao Viet for $340 million. In 2016, HSBC Vietnam's net income was VND1.44 trillion ($63.5 million), up 54 per cent on-year, according to the bank's latest financial statement. It made the lion's share of its revenue, VND754 billion ($33.27 million), by dealing in foreign currencies. ANZ Vietnam One of the first foreign banks to open a branch in Hanoi in 1993, ANZ Vietnam grew its original team of 28 employees to 550 now, who work in eight locations in Hanoi and HCM City, according to the bank's website. In 2008, ANZ won a licence to open a fully foreign-owned bank in Vietnam. ANZ Vietnam used to be the strategic investor in Sacombank and Saigon Securities Inc. before divesting its holdings in 2012 and 2014, respectively, according to DealStreetAsia. ANZ Vietnam has been working in accord with the Asia strategy of the parent bank, Australia and New Zealand Banking Group Ltd, Australia's third largest lender with over 180 years of history. In 2009, in one of its biggest overseas purchases, ANZ paid $550 million to buy several Asian units, including the Vietnamese one, from British lender Royal Bank of Scotland. However, in early 2016, ANZ closed its business lending to small and medium-sized enterprises in five Asian countries, including Vietnam. Later that year, ANZ announced selling its wealth and retail businesses in Hong Kong, Singapore, China, Taiwan, and Indonesia to Singaporean bank DBS, a departure from the previous "super-regional strategy," according to Reuters. The bank will look to exit its retail and wealth assets in the Philippines and Vietnam. This year, five banks have reportedly submitted bids for ANZ's Vietnamese retail unit. ANZ earned VND177 billion ($7.8 million) in net income in the first half of 2016, an increase of 30 per cent from the first half of 2015. Standard Chartered Standard Chartered was one of the first international banks to re-open a representative office in HCM City. Since August 2009, following the approval of the SBV, Standard Chartered became a locally- incorporated entity under the name Standard Chartered Bank (Vietnam) Limited, with the registered capital of $61 million, according to Reuters. Since then, the bank has solidified its position as a leading foreign bank in Vietnam. In 2011, Standard Chartered became the first international bank to join the Smartlink network, enabling its customers to use the bank's cards at over 5,000 ATMs and 20,000 points of sale nationwide, as reported by VIR. In 2012, the bank was the sole Sovereign Credit Ratings Advisor to the Vietnamese government'. The bank exclusively distributes Prudential's life insurance products via a bancassurance partnership that began in 2009 and was extended for another 15 years in 2014. Financial results were not available on the website of Standard Chartered Vietnam. However, in early 2016, its parent bank announced a 2015 net loss of $2.36 billion, blaming bad debts from falling oil prices. The parent bank was also planning to cut 15,000 jobs. Hong Leong Bank Hong Leong Bank, one of Malaysia's leading lenders, was the first Southeast Asian bank to be granted a licence to operate a wholly foreign-owned commercial bank in Vietnam in December 2008. The bank commenced operations in October 2009 with the opening of its head office and the first branch in HCM City. Its registered capital eventually went up to VND3 billion ($132.3 million). In 2011, Hong Leong opened its second branch in Hanoi. By 2015, Hong Leong had opened two more offices in Binh Duong Province and in Cho Lon area of HCM City. Shinhan Vietnam A leading South Korean lender', Shinhan Bank has a representative office in HCM City since 1993. In December 2008, the bank was licensed to establish a wholly foreign-owned bank in Vietnam, becoming one of the first five wholly foreign-owned banks in the country. In November 2011, Shinhan Bank merged with Shinhan Vina (a 50/50 joint venture between Shinhan Bank and Vietcombank) and changed its name into Shinhan Vietnam Company Limited. Currently, its network has one headquarter and 18 branches in HCM City, Hanoi, Binh Duong, Dong Nai, Thai Nguyen, Hai Phong, and Bac Ninh, according to the bank's website. Shinhan Bank is competing by offering digital services. The Korean bank launched its mobile banking service Sunny Bank in December 2015 and Sunny Bank My Car last June, the first service in Vietnam to allow car buyers can get car loans through their mobile devices. Over twelve months after its release, the Sunny Bank mobile service accumulated 44,000 users, with 90 per cent in their 20s and 30s, according to Korea Joongang Daily newspaper. The bank''s net after-tax profit in 2016 was VND1.03 trillion ($45.5 million), a 15 per cent increase over 2015, according to the financial statements on its website. Interest accounts for the majority of the bank's revenue. Public Bank Berhad In 2015, Public Bank Berhad became the sixth fully foreign-owned bank in Vietnam, after buying out BIDV's 50 percent stake in VID Public, their $62.6 million 50/50 joint venture. The bank's website said it had seven branches in Hanoi, HCM City (two branches), Da Nang, Binh Duong, Hai Phong, and Dong Nai. Public Bank Berhad's latest financial statement on its website showed a 2015 net income of $4.2 million, a slight increase from the $4.1 million in 2014, with interests making up the majority of its revenue. This income, however, was 16 per cent lower than the 2012 figure of $4.97 million. http://www.vir.com.vn/vietnam-lucrative-for-foreign-banks.html

Moody's assigns first-time ratings to OCB 12/Apr/2017 Intellasia| VNS Moody's Investors Service on Monday assigned first-time ratings and assessments to the Orient Commercial Joint Stock Bank (OCB). Under the ratings, Moody's assigned OCB's long-term local and foreign currency deposit and issuer ratings of B2 with stable outlook. The rating agency also assigned OCB's short-term local and foreign currency deposit and issuer ratings of Not prime; baseline credit assessment (BCA) and adjusted BCA of b3; Counterparty Risk Assessments of B2 (cr)/NP (cr). The outlook of the ratings is stable. According to Moody's, the B2 long-term ratings assigned to OCB reflects its BCA of b3, and a is one- notch uplift based on Moody's expectation of a moderate probability of support from the government of Vietnam (B1 stable). The b3 BCA assigned to OCB reflects its modest solvency and funding metrics. The BCA also takes into account Moody's expectation that the bank's asset quality and capital profile will weaken over time because of its aggressive loan growth strategy. OCB's asset risk is elevated, but largely in line with the average for other rated banks in Vietnam. Some 6 per cent of its adjusted gross loans were problematic at end-2016, an improvement from 11 per cent at end- 2015. The definition of adjusted problem loans includes special mention loans, non-performing loans, problem loans sold to the Vietnam Asset Management Company (VAMC), restructured loans classified as performing, and other problem assets. OCB's asset quality improved in 2016, because of the full cash recovery of assets due from the government-owned Vietnam Development Bank, and healthy cash recovery on VAMC bonds. However, Moody's expects that OCB's asset risk will remain elevated over the next 12-18 months because of the rapid loan growth of 39 per cent in 2016 and 30 per cent in 2015, which were much higher than for the overall banking sector in Vietnam. Moody's will consider upgrading the BCA if the bank's adjusted problem loans ratio falls below 4 per cent and its TCE ratio exceeds 10 per cent. Loan diversification away from real estate and construction loans - which Moody's considers as higher-risk in Vietnam - would also be positive for the BCA. An improvement in Vietnam's Macro Profile of Weak would also be BCA-positive. The B2 long-term ratings could be upgraded, if the bank's BCA is upgraded and Vietnam's sovereign rating is upgraded. On the other hand, OCB's long-term ratings could be downgraded if its problem loans ratio - as adjusted by Moody's - rises above 10 per cent of gross loans or if its TCE ratio drops significantly below 7 per cent. The ratings are also sensitive to a significant weakening in the bank's liquidity profile. OCB Bank is a small privately-owned commercial bank headquartered in HCM City. At end-2016, it held consolidated assets of VND64 trillion (some $2.8 billion), including gross loans of VND38.5 trillion (some $1.7 billion). It pursues a high-growth strategy centred on retail and corporate loans. http://vietnamnews.vn/economy/374491/moodys-assigns-first-time-ratings-to-ocb.html

VPBank plans to list shares on HOSE in Q3 12/Apr/2017 Intellasia| VNS Vietnam Prosperity Joint Stock Commercial Bank (VPBank) is expected to start trading on the HCM Stock Exchange in the third quarter of 2017. This information was revealed at the bank's annual shareholder meeting on Monday. VPBank's shareholders in late 2016 approved of the bank's share listing on the HCM City's bourse. VPBank had worked with the Vietnam Securities Depository on the procedures, however, it could take some time to complete all administrative procedures, said VPBank's chair Ngo Chi Dung, adding that the bank had contracted with a securities company on its share listing. Dung also said VPBank had been negotiating with potential foreign buyers to sell 49 per cent of its stake in financial arm FE Credit. The deal was aimed at increasing capital for the bank and improving the quality of corporate governance for FE Credit, he said. The details of the deal were not disclosed at the meeting. Capital to increase to $622 million in 2017 VPBank plans to issue nearly 329.4 million shares to raise its chartered capital to over VND14 trillion (US$622 million) in 2017 from the current level of VND10.76 trillion. The increase of chartered capital will ensure its business activities are well funded and the bank meets requirements on different ratios. After raising capital, VPBank will issue a maximum of 133.2 million shares, or 10 per cent of the total common shares, to less than 100 investors under private placements. Share price will be negotiated with each investor and will not be lower than the share's book value. The shares will be issued in 2017 and will be unavailable for trading for one year from the issuance date. Currently, VPBank is among 10 largest joint stock commercial banks by chartered capital. A successful capital increase this year will bring VPBank to the fourth position after Sacombank, MBBank and SCB. In 2017, VPBank has targeted pre-tax profit of VND6.8 trillion, a year-on-year increase of 38 per cent from 2016's figure, and total assets of VND280.6 trillion. Last year, it recorded pre-tax profit of VND4.92 trillion, an increase of 59 per cent from 2015. The bank also plans to pay dividend in shares for 2016's performance to increase mid and long-term capital, meet Basel II requirements, improve the bank's risk management system and meet requirements of international finance institutions and the central bank. http://bizhub.vn/markets/vpbank-plans-to-list-shares-on-hose-in-q3_285435.html

ACB to increase charter capital to over 11 trillion VND 12/Apr/2017 Intellasia| VNA The Asia Commercial Bank (ACB) plans to raise its charter capital to more than 11.25 trillion VND (495 million USD, it said at the annual shareholders meeting in HCM City on April 10. The bank projects to raise its yearly pre-tax profit by 32 percent to 2.2 trillion VND for 2017, and targets a 16-percent rise in the total assets, credit growth and capital mobilisation and a bad debt ratio of below 2 per cent. In the first quarter of 2017, it earned a pre-tax profit of 595 billion VND. ACB will pay a 10-percent dividend for last year's performance by shares. Besides, the bank plans to extract 100 billion VND from the 2017 projected profit to buy back shares. It also hopes to complete the handling of bad debts caused by six companies of former banking tycoon Nguyen Duc Kien by the end of this year. Kien, who was the former co-founder of the bank and one of the top bankers in Vietnam, was sentenced to 30 years in jail in 2014 for fraud, tax evasion, illegal trade and deliberate misdeeds resulting in serious consequences. The bad loans of some companies run by Kien totalled nearly 5.8 trillion VND (257.8 million USD) as of December 31, 2015. ACB plans to finish collecting all the bad debts from those six firms by 2018, according to the plan that was approved by the State Bank of Vietnam in 2015. Under the previous plan, ACB planned to collect the debts over four years, starting from 2015, at a rate of 814 billion VND, 2.2 trillion VND, 1.8 trillion VND and 1 trillion VND. But ACB general director Do Minh Toan said that the collection was ahead of schedule, with 3 trillion VND collected from those companies in 2016. With the current progress, Toan hoped that the bank will be able to complete handling all of the bad debts caused by the six companies this year. In 2016, ACB recorded a post-tax profit of 1.66 trillion VND, an increase of 27 percent from 2015. The bank also recorded returns on total assets (ROA) and returns on total equity (ROE) of 0.61 percent and 9.87 percent. On December 31, 2016, the bank recorded total assets of 234 trillion VND, a year-on-year increase of 16 percent, and a bad debt of 0.88 percent, down from 1.3 percent at the end of 2015. http://en.vietnamplus.vn/acb-to-increase-charter-capital-to-over-11 trillion-vnd/110035.vnp

HSBC Vietnam's 2016 profit before tax at 1.8tr dong 12/Apr/2017 Intellasia| Vnexpress HSBC Vietnam's 2016 audited financial report showed that the bank's 2016 profit before tax of 1.801 trillion dong, 46.5 percent higher than the 1.229 trillion dong profit of 2015. The bank's major growth momentum in 2016 was forex trading segment when it brought about the net interest of 754 billion dong, surging 66.1 percent, or 300 billion dong compared to 2015. Meanwhile, credit - investment remained the bank's pillar when earning 2.3 trillion dong net interest income, up 2.2 percent compared to 2015. Service segment attained 628 billion dong net interest income - 1.7 percent less than the previous year. Notably, in 2016, investment securities trading caused a net loss of 35.8 billion dong, while in 2015 this number was only 1.6 billion dong. The 2016 net interest from other activities was only 33.7 billion dong, much less optimistic than the number of 128.9 billion dong in 2015. As such, the total 2016 net income of HSBC Vietnam was 3.708 trillion dong, slightly increasing 5.7 percent compared to 2015. HSBC Vietnam's 2016 profit before tax was one and a half as much as 2015 while the total income increased only a mere 5.7 percent due to two main reasons: Firstly, operational cost dropped 10.8 percent, from 2.069 trillion dong in 2015 to 1.845 trillion dong in 2016 and secondly, credit provision cost slumped from 210 billion dong in 2015 to 61.5 billion dong in 2016. As of the end of December 31, 2016, the total assets of HSBC Vietnam were 71.138 trillion dong, 1.5 percent less than early 2016, while credit balance was 32.5 trillion dong, up 17.5 percent. Regarding the source of capital, by the end of December 31, 2016, equity of HSBC Vietnam reached 10.6 trillion dong, up 6.5 percent. Meanwhile, customers' deposits stood at 56.011 trillion dong, down 3.4 percent. In 2016, the bank's bad debts were 428.9 billion dong, equal to 0.84 percent of the total credit balance, drastically decreasing from 1.06 percent of 2015. The bank's liquidity reserve ratio was 50 percent, much higher than the 33 percent of the previous year. On the other hand, the minimum CAR was 16 percent, pour percentage points less than 2015. The loan to deposit ratio in 2016 was 58 percent, 10 percent more than 2015.

ANZ Vietnam bankers earn 820m dong annual income 12/Apr/2017 Intellasia| Vnexpress In 2016, the average monthly income of each banker increased one million dong compared to 2015, reaching 70 million dong, in which 67 million dong was salary, according to ANZ Vietnam Bank Limited. The number of employees at this bank in 2016 was 568 people. Hence, the average annual income was 836 million dong, which was quite high compared to local joint stock banks where the average monthly income was about 20 million dong. By the end of 2016, ANZ Vietnam's charter capital remained at three trillion dong, unchanged from 2015 while total assets were 39 trillion dong - 15 percent less than early this year. In 2016, bank's profit before tax reached 567 billion dong - up 47 percent compared to the previous year and the profit after tax was 452 billion dong. Hence, on average, each ANZ staff created 800 million dong profit for the bank. The bank's bad debts by the end of 2016 were 156 billion dong, accounting for 1.09 percent of the total outstanding loans, slightly decreasing from the 1.15 percent early this year. Regarding non-term deposit structure, 67 percent was in US dollar (about 6.755 trillion dong) compared to about 30 percent in dong. In terms of credit structure, ANZ Vietnam focused on lending the manufacturing and processing industry, which reckoned for about 34 percent of the total outstanding loans. ANZ is headquartered in Australia and opened the Hanoi branch in 1993.

'Confidence index' in Sacombank increases sharply 12/Apr/2017 Intellasia| Vneconomy In the information that Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) sends to VnEconomy this afternoon, the basic operational indicators in the first quarter of 2017 which can be seen as the "confidence index" of customers and partners, continue to increase as shown in the 2016 results. Despite the burdens of financial issues as VnEconomy mentioned in the previous article, the "confidence index" is a favourable thing in Sacombank's restructuring, although the bank is in a difficult period after the merger of Southern Bank. Specifically, as of March 31st 2017, Sacombank's total assets were estimated at 341.176 trillion dong, increasing 10.799 trillion dong (3.3 percent) in comparison with the beginning of the year. The increase of total assets reflects the bank's market share has been strengthened. Also as of the above mentioned time, mobilisation from economic organisations and people of Sacombank reached 303.686 trillion dong, increasing 14.229 trillion dong (4.9 percent higher than the average level of the whole industry) in comparison with the beginning of the year (more than twice the increase of the previous quarter), accounting for 97 percent of the total deposits. More specifically, mobilisation from economic organisations and people increased quite well thanks to the deposits of individual customers (an average increase of six trillion dong/month) with the number of depositors to swell nearly 170,000 (up 4.8 percent) in comparison with the beginning of the year. Since the beginning of this year, Sacombank has implemented loan packages with low interest rates, spending three trillion dong for bank - business connecting programme in HCM City; one trillion dong for loans to stabilise the market; 3.5 trillion dong for individual customers having the purpose of buying houses, cars, agricultural production. Overall, at the end of the first quarter of 2017, Sacombank's total credit reached 204.172 trillion dong, increasing 9.136 trillion dong (4.8 percent higher than the whole industry's average) in comparison with the beginning of the year, reaching 34.2 percent of the growth plan. It is estimated that in the first quarter of 2017, Sacombank's before-tax profits reached 221.5 billion dong, increasing 60 percent year-on-year.

HCM City supports VietinBank to pilot non-cash payment 12/Apr/2017 Intellasia| The Saigon Times The HCM City Department of Information and Communications has announced it would cooperate with Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) to connect the public administrative system of the city with the payment system of VietinBank to allow people to pay public administration fees online. The online payment of public fees and charges will be initially carried out at the city's Department of Health, Department of Planning and Investment, Department of Natural Resources and Environment, Department of Education and Training, Department of Customs and Department of Taxation. Later, this method will be applied at other units such as SatraMart and Co.opmart stores and wholesale markets Binh Dien, Thu Duc and Hoc Mon. The non-cash payment measure of HCM City goes in line with Decision No. 2454/QD-TTg issued on December 30, 2016 by the prime minister to promote non-cash payments in Vietnam in 2016-2020. The plan is aimed at boosting e-payments as Vietnam is still a cash dominant economy. Changing people's habit of using cash for paying for goods and services will reduce costs associated with cash payments. The proportion of cash in total payments is expected to dip to less than 10 percent in 2020. A survey by the E-commerce and Information Technology Agency under the Ministry of Industry and Trade shows that the percentage of online shoppers is still low while cash payments account for 64 percent of total transactions. Currently, few people choose to pay online using international credit cards such as Visa, MasterCard, JCB and AMEX, debit cards or e-wallets. http://english.thesaigontimes.vn/53366/HCM City-supports-VietinBank-to-pilot-non-cash-payment.html

Investors, bankers flee from BOT projects 12/Apr/2017 Intellasia| Vietnamnet Investors are fleeing from BOT (build-operate-transfer) projects in the transport sector after encountering many difficulties. BOT investors are now in a dilemma as toll collection is not big enough to pay bank debts. Tran Ngoc Le from Yen Khanh Production, Trade & Service Company, one of the major investors in the Hac Tri Bridge in Phu Tho province, said the monthly turnover from the project is VND5 billion, while the company has to pay VND10 billion in bank loan interest. The investor initially expected to take back the investment capital after 17 years, but it has realised that the time may be 50 years. SCIC (the State Capital Investment Corporation), one of the six investors of the VND12 trillion Bac Giang - Lang Son BOT project, decided to quit just one month after the groundbreaking ceremony. It kicked off in October 2015 and is expected to be completed prior to December 31, 2018. A short time later, the Phuong Thanh Transport Investment & Construction Company, also one of the investors, decided to reduce the capital contribution ratio from 25 percent to 5 percent. Most recently, in March 2017, the group of investors officially quit the project as they could not mobilise sufficient capital as required. Meanwhile, Geleximco, which is thought to take over the project, has not confirmed if it would become a major investor of the huge project. Tasco, known as the biggest BOT investor, has recently announced it will stop investment in BOT projects to gather strength in other fields. A representative of the company said Tasco has poured VND15 trillion into BOT projects in the last 10 years and obtained profitability rate of only 11.5 percent per annum. Analysts commented that investors were rushing to quit BOT projects after the State Audit discovered a lot of problems when examining key projects and proposed solutions to tighten control over the projects of this kind. Bui Danh Lien, chair of the Hanoi Transport Association, commented that the proposals, which aim to choose the most capable project developers, have made investors shrink back. Lien, while affirming that the state once slackened management over BOT projects, agreed that it is necessary to set stricter requirements on investors. Investors must have stockholder equity equal to at least 10 percent of projects' total investment capital to be eligible to register to develop projects. He went on to say that there was no need to build so many highways, when Vietnam has to save every dong for investment and development. http://english.vietnamnet.vn/fms/business/176088/investors--bankers-flee-from-bot-projects.html

Q1 G-bond sale plan 87pct complete 12/Apr/2017 Intellasia| The Saigon Times The State Treasury of Vietnam issued VND56.5 trillion of G-bonds in the first three months of the year, meeting 87 percent of the plan for the first quarter. The two best-selling types of debt were those with five and seven-year tenors, with total respective sales of VND13.55 trillion and VND12.6 trillion, but they were below expectations for the quarter. Meanwhile, bonds of 15 years or longer were greatly sought after but their volumes were small. This indicates G-bond sales on the primary market were lower than in 2016. Financial institutions, insurance companies and banks are eyeing long-term bonds given their high coupons. Interest rates for dong on the interbank market hovered around 5 percent a year for terms of less than a month, a mild increase driven by the start of a new round of setting aside cash for compulsory reserves, plus the pressure from debts falling due on open market operations (OMO). This led to a minor decline in liquidity on the primary monetary market. Although the State Treasury recently offered higher interest rates for five-year bonds, sales remained poor due to the interest rate difference between the secondary and primary markets. At a G-bond auction last Wednesday, the State Treasury offered VND5 trillion of bonds with four tenors: five years with VND1 trillion, seven years with VND1 trillion, 10 years with VND1.5 trillion and 30 years with VND1.5 trillion. Financial institutions bought VND550 billion of five-year debt, VND550 billion of seven-year debt, VND1.95 trillion of 10-year debt and VND1.95 trillion of 30-year debt. The respective coupons were 5.12 percent, 5.43 percent, 5.99 percent and 7.85 percent a year, five basis points lower than those at the March 29 auction. Overall, the State Treasury of Vietnam has in the year to date issued around VND61.5 trillion of debt. On the secondary bond market, foreigners remained net buyers. Since the beginning of the year, foreigners have net bought about VND11.92 trillion of G-bonds. Bond coupons on the secondary market tend to inch up for terms of two, three, five and seven years, reaching 4.792 percent, 4.982 percent, 5.216 percent and 5.56 percent respectively. Meanwhile, the annual rates for bonds with one-year, 10-year and 15-year terms have fallen by 3.4-9.8 basis points to 4.14 percent, 6.11 percent and 6.96 percent respectively. http://english.thesaigontimes.vn/53371/Q1-G-bond-sale-plan-87-complete.html

ADB: Financial sector remains vulnerable 13/Apr/2017 Intellasia| AFP Restructuring and bad debt resolution remain tardy, ADB notes in latest report. Progress on bank restructuring and non-performing loan (NPL) resolution has been slower than hoped, leaving banks exposed to large contingent liabilities, the Asian Development Bank (ADB) wrote in its latest report on Vietnam economic outlook. Although the official bad debt ratio in 2015 and 2016 remained low, at about 2.5 per cent of outstanding loans, this largely reflects the transfer of $12.7 billion in bad debts from banks to the State-owned Vietnam Asset Management Company (VAMC). As at the end of 2016, the debt bank had resolved only 18 per cent of NPLs purchased from banks. Real progress in reining in NPLs would thus depend on how fast it can resolve its impaired assets and at what cost. Moreover, progress in consolidating the banking system continues to languish, with no mergers or acquisitions completed in 2016, the report notes. As at December 31, the ratio of bad loans on balance sheets, those bought by VAMC from banks, and loans that may turn sour had reached 8.86 per cent of all outstanding loans, given the difficulties in dealing with assets used as collateral for bank loans and settling bad debts. The capital adequacy ratio was the regulatory minimum of 9 per cent, but it was not calculated according to international Basel II standards. "With the government planning to have all commercial banks meet Basel II capital standards by 2020, they will likely need capital injections from foreign investors," Aaron Batten, Country Economist for Vietnam, told the "Asian Development Outlook 2017: Transcending the Middle-income Challenge" conference on April 10. Vietnam may increase the limits on foreign ownership in banks as early as this year to quicken the overhaul of the country's banking sector and further attract overseas investments to boost economic growth, prime minister Nguyen Xuan Phuc told foreign media on January 13. "Right now, if there are any foreign investors interested in buying any of our under-performing banks, we will sell them entirely," he said. While the prime minister didn't specify the new ceiling to be introduced, with the cap currently standing at 30 per cent, he indicated that the government may completely sell the more troubled banks. No progress has been seen so far this year. As the State Bank of Vietnam (SBV) targets credit growth of 18 per cent in 2017, the rise of domestic lending at a faster rate than deposit growth also challenges the maintenance of bank liquidity. "This will require significant improvements to the legal framework, including the lifting of limits on foreign ownership of banks," Batten added. During the first quarter this year, the SBV continued to follow a stable inflation target in a cautious manner, contributing to reducing pressure on inflation. Overall liquidity increased 3.5 per cent year-on- year, slightly lower than in the same period last year. On the capital market, the modest decrease in mobilisation together with the sharp increase in credit caused slight disturbances to deposit rates in the first quarter. The exchange rate followed a stable trend in the last few weeks, significantly reducing the differences between commercial banks' exchange rate, the average inter-bank exchange rate, and the free rate. http://vneconomictimes.com/article/banking-finance/adb-financial-sector-remains-vulnerable

Reference exchange rate goes down 1 VND 13/Apr/2017 Intellasia| VNA The State Bank of Vietnam adjusted the reference VND/USD exchange rate down by 1 VND from the day ago to fix it at 22,320 VND/USD on April 13. With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,989 VND per USD and the floor rate is 21,651 VND per USD. Vietcombank and BIDV listed the buying rate at 22,630 VND/USD and the selling rate at 22,700 VND/USD, unchanged from the previous day. Meanwhile, Vietinbak raised its buying and selling rates up by 5 VND to 22,630 VND and 22,700 VND, per USD. http://en.vietnamplus.vn/reference-exchange-rate-goes-down-1-vnd/110157.vnp

The exchange rate remains unpredictable 13/Apr/2017 Intellasia| ThoiDai/BVSC The US dollar/dong exchange rate in the first quarter was generally relatively stable. In comparison with the end of 2016, the central rate announced by the State Bank at the end of March had an increase of about 0.5 percent while the exchange rate at commercial banks slightly increased by 0.02%. There were also some times that the exchange rate increased sharply (the last week of February and early March), but this increase only took place for a few days and quickly cooled down, Bao Viet Securities Company (BVSC) said in its report. According to BVSC, there were two main reasons which made the US dollar/dong exchange rate increase slightly in the last quarter. Firstly, in term of objective reason, the US dollar in the world market tended to sharply decrease in the first quarter. The Dollar Index decreased 2.3%, in which the strongest decline was against JPY (-5.2%), the next was against euro (-1.9%) and CNY (-1%). This was also a surprising movement in the context that FED was still in the process of raising interest rate (increased 0.25 percent at the policy meeting in March) while European and Japanese Central Banks were still maintaining easing monetary policy. As the dong "anchors" mainly to the USD, so when the US dollar depreciated, dong also depreciated against most of the remaining currencies in the central rate calculation basket. This led to a slight increase of the central rate in the first quarter. Secondly, in terms of subjective reason, the trade balance had shifted to trade deficit in the first three months of 2017 (-$1.9 billion) while in the same period of 2016, the trade surplus was $776 million. The trade deficit increased sharply in the first quarter mainly because the import growth (22.4%) was higher than the export growth (12.8%). The information related to trade deficit had put certain pressure, making the exchange rate fluctuate largely at some times. BVSC also supposes that this year exchange rate is still unpredictable and is potentially risky. Unpredictable trends of key currencies such as USD, euro, JPY and especially CNY will be the objective factors that will obstruct the operational decisions of the State Bank. In addition, the sharp increase of the trade deficit is a very noticeable risk. The overall balance of payments in 2017 is forecasted to hardly reach the surplus as high as in 2016. Thus, the US dollar/dong exchange rate is forecasted to fluctuate more sharply in the coming quarters with the depreciation of dong against the US dollar at around three percent.

Banks aim for high profit in 2017 13/Apr/2017 Intellasia| VIR Starting the annual general meeting (AGM) season, several banks have revealed ambitious plans for 2017. Aiming for big increase in profit At the AGM on March 25, LienVietPostBank's shareholders agreed on this year's development plan, aiming to reach $66.2 million in pre-tax profit, 10 per cent higher than that of 2016 ($59.5 million). Furthermore, the expected dividend rate was raised to 12 per cent. LienVietPostBank also planned to raise capital from $285.1 million to $309.0 million by issuing 54 million shares. On April 10, VPBank organised its AGM. According to the AGM's documents, VPBank's pre-tax profit goal for this year is $300.2 million, 38 per cent higher than that of 2016. Its total assets are expected to reach $12.4 million and total outstanding loans and corporate bonds $8.9 million. With this expected total outstanding loan volume, to ensure the capital adequacy ratio (CAR) of 9 per cent stipulated the State Bank of Vietnam (SBV), VPBank's total capital must reach at least $794.5 million. With its current owner's equity of VND15.4 trillion ($679.8 million), VPBank must increase capital by $132.4-176.6 million. Techcombank's documents for its AGM on April 15 showed that the bank is aming to increase consolidated pre-tax profit by 26 per cent over 2016's $221.6 million. This year, Techcombank planned to increase its chartered capital by $220.7 million (from $391.9 million to $612.6 million), and raise its total assets to $12.4 billion. Other banks also expect great increases in profit. For instance, at its AGM on April 21, HDBank plans to get shareholders' approval on the $72.5 million pre-tax profit target, 28 per cent higher than that of 2016. Meanwhile, OCB is planning to aim for $34.4 million at its AGM, 60 per cent higher than the previous year. Also, Vietcombank's board of directors has set a goal to reach $406.1 million in pre-tax profit, a 12 per cent increase on-year. Well-founded optimism These ambitious figures in expected profit correspond with the results of the survey on business trends in the second quarter of 2017 for credit institutions and foreign bank branches in Vietnam, which was conducted by the Monetary Forecasting and Statistics Department of the SBV. According to the results, 89.5 per cent of the credit institutions reported improvements in the first quarter of 2017. 90.4 per cent of the institutions expected great increases in pre-tax profit compared to 2016. The expected average increase for the whole system is much higher than that showed in the survey in December 2016 (+ 13.4 per cent). The banks' optimism is due to domestic economic circumstances and good forecasts for the industry. According to the report on the economic situation in the first quarter of 2017 and forecasts on the fiscal year conducted by National Financial Supervisory Commission (NFSC), aggregate demand will improve in the upcoming time since directions from the government have initiated major increase in public investments in several key projects and capital disbursement in the application of high-tech agriculture projects. This positive attitude is also due to the fact that, despite the recent wake of US protectionism, based on the economic optimistic potential of the US and the globe at large, the International Monetary Fund (IMF) has forecasted the trade growth of Emerging Markets and Developing Economies at 4 per cent in 2017, higher than the estimated 1.9 per cent for 2016. A senior leader of the SBV shared with VIR that the bank would adjust the interest rates flexibly, in correspondence to macroeconomic indicators, inflation, and the currency market. Also, SBV would continue directing credit institutions to balance their capital and interest rates, economise operating costs, and increase business efficiency to lower interest rates. SBV continues its policy on operating currency rates flexibly, closely following the interbank foreign exchange market, the currency rate on the global market, economic and currency balances, and the monetary policy. It would also introduce measures to improve credit quality, focus lending on manufacturing and prioritised areas. "We would closely inspect the credit granting situation in some industries and fields that have high chances of risk, such as medium-long term credit, credit for large customers, credit for real estate, as well as BOT and BT transportation projects,", the senior leader shared. http://www.vir.com.vn/banks-aim-for-high-profit-in-2017.html

Big changes expected in banks' key personnel 13/Apr/2017 Intellasia| Vietnamnet The race of candidates for 'hot seats' at commercial banks is heating up as the shareholders' meeting season has begun. A series of joint stock banks will hold shareholders' meetings in April, while large banks such as Sacombank, Eximbank, Vietcombank, BIDV and SHB have announced plans to strengthen the banks' management boards. BIDV's shareholders' meeting is scheduled to take place on April 22. Since Tran Bac Ha retired in September 2016, the post of the chair of the bank remains vacant. The bank has been put under management by Tran Anh Tuan, a member of the board of directors. Unlike other banks, the state's ownership ratio in the bank is high, at 95.28 percent. Therefore, in order to take the post as chair of the bank, one must get approval from the State Bank as the representative of the state's capital. The bank on March 28 released a notice that shareholders with 10 percent of charter capital or more for the last six consecutive months can run for the posts Vietcombank now has two large shareholders holding more than 10 percent of charter capital - Mizuho Bank (15 percent) and the State Bank 77.11 percent. The struggle for 'hot seats' at Eximbank, which has been always tense in the last few years, may come to an end after the 2017 shareholders' meeting, slated for April 21. As groups of large shareholders cannot not find a common voice and prolonged conflicts cannot be settled, the bank had to organise shareholders' meetings twice last year, and both of them failed. The plan to organise another meeting was delayed as the bank had to wait for the State Bank's approval for its restructuring project. Eximbank now has eight members of the board of directors and it plans to select three more members. Sources said that besides Vietcombank and Sumitomo, the two large shareholders, Au Lac Group also attempted to send its staff to the board of directors. In late 2015, Le Minh Quoc and Ngo Thanh Tung from Au Lac Group were appointed as the members of the board of directors. Quoc has been holding the post of the chair of board of directors since then. Meanwhile, bankers have guessed that Dang Van Thanh, the founder of Sacombank, may return to the bank. To date, two groups of investors have sent word to the State Bank intimating that they are ready to join the process of restructuring Sacombank. These include Novaland and a group of investors from Everscore Group, Redsun Capital Ltd and Dang Van Thanh, who is now chair of Thanh Thanh Cong Group. http://english.vietnamnet.vn/fms/business/176085/big-changes-expected-in-banks--key-personnel.html

Behind the chorus of bank dividend payment in stock 13/Apr/2017 Intellasia| VnEconomy Joint Stock Commercial banks are entering the Annual general Meeting (AGM) season. Most of the approved and expected-to-be-submitted dividend payment plans continue to take advantage of shareholders' resources, by paying in stock. Each bank has its specific explanation, mostly to increase financial resources and chartered capital to meet business requirements, ensuring operational safety. So how are those requirements? On a system-wide scale, increasing chartered capital is a compulsory requirement for members. The legs become smaller, are not properly strengthened to support the body which is growing up at a much faster speed. Compilation of data of the whole system in the past five years shows that on one hand, commercial banks had struggled to increase the chartered capital and had to take advantage of shareholders' resources; on the other hand, the requirements for competition and development, whose objective elements come from the demand characteristics of the economy, made the capacity of the chartered capital out of breath quickly. Looking back the whole process, in the past five years (2012 - 2016), the total assets scale of the system expanded rapidly from 5,085 trillion dong at the end of 2012 to 8,503 trillion dong at the end of 2016, equivalent to the growth rate of 67.2%. Meanwhile, with the same benchmark, the total chartered capital only increased from 392.152 trillion dong to 488.424 trillion dong, up 24.52 percent only. The growth speed of the chartered capital scale in the whole system was out of breath too much in comparison with the total asset increasing scale. The above shortness of breath leads to the fact that, even the local warnings at some commercial banks: the Capital Adequacy Ratio (CAR) is declining, and is alarming at state-owned commercial banks. Specifically, at the end of 2012, the average CAR of the whole system was 13.75%, and decreased to 12.84 percent at the end of 2016. The decrease was not strong, however, by sector, it shows the level of impact of the above breath shortage: with the same benchmark, the state-owned commercial bank group decreased from 10.28 percent to 9.92%, part of which came from borrowing a large amount of long-term bonds; the joint stock commercial bank group decreased from 14.01 percent to 11.08%. These aforementioned comparisons and data are relative, as statistics differ somewhat with the emergence of "zero-dong bank", or excluding the cases with negative chartered capital in recent years. On the other hand, some current references for CAR calculation have certain changes following new frameworks and norms, or over periods. However, the breath shortage of chartered capital in comparison with operational scale, the total asset of the whole system has been the main pressure, contributing to the chorus of bank dividend payment in stock in the past years and now. In which, there is an objective factor. The capital characteristics for Vietnam's economic development rely heavily on the credit institutions system. And the credit scale is also expanding much faster than the capital increase scale of banks in the past five years. Specifically, from 2012 to 2016, outstanding credit to the economy expanded from 3,090 trillion dong to 5,500 trillion dong which means the growth of 78.11%, exceeding the growth of 24.54 percent of the chartered capital in the past five years. Accordingly, the pressure of raising capital and the chorus of taking advantage shareholders' sources through dividend payment in stock are not expected to stop. And this year alone, that pressure is even more prominent in the group of Joint Stock Commercial banks with high state ownership percentage such as Vietcombank, BIDV and VietinBank. But, whether the state shareholders accept to receive dividends in stocks to help banks increase capital or not? The answer is currently awaiting the result of the meeting scheduled to take place at the end of this month.

Vietcombank continues to be granted with room to issue bonds 13/Apr/2017 Intellasia| NDH The State Bank of Vietnam (SBV) has approved the 2017 bond issuance of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) with the maximum par value of eight trillion dong. Accordingly, the bond interest rates are decided by Vietcombank in accordance with market interest rates and the State Bank's regulations on interest rates in each period. Buyers of bonds are Vietnamese and foreign organisations and individuals. Buyers of bonds issued by Vietcombank for the first time on the primary market do not include credit organisations, branches of foreign banks and subsidiaries of credit organisations. Vietcombank's issuance plan in 2017 includes the plan to buy back bonds. The State Bank requires Vietcombank, when redeeming the bonds, to ensure the compliance with safety ratios. In the event that bonds are calculated into tier 2 capital, the repurchase of bonds must comply with current regulations in relevant legal documents. Earlier, in 2016, Vietcombank was also approved by the State Bank to issue bonds in dong with the maximum par value of eight trillion dong. The entire "room" for bond issuance was used up by Vietcombank. As per the report at 2016 Business Review Conference, Vietcombank said it had successfully issued eight trillion dong bonds to the public and financial institutions, including six trillion dong bond to increase Tier 2 capital. Out of eight trillion dong issued in 2016, Vietcombank issued non-convertible bonds and unsecured bonds to the public with the issuance value of two trillion dong for 10 years. Interest rate was calculated by reference rates plus one percent, and the interest rate applicable for the first year was 7.57%.

Does Techcombank appropriate shareholders' capital? 13/Apr/2017 Intellasia| BizLive Under the plan, the AGM of Vietnam Technology and Commercial Joint Stock Bank (Techcombank) will be held on April 15th in Hanoi. However, the information that Techcombank continues not to pay dividends makes many shareholders very angry, especially in the context that this bank has just recorded pretty positive business results in 2016. According to the documents prepared for the 2016 AGM which have just been released by Techcombank, at the end of 2016, total assets of the bank reached 235.363 trillion dong (up 22.6 percent and reaching 106 percent of the plan), the before-tax profits touched 3.997 trillion dong (up 96.2 percent and reaching 113 percent of the plan). Credit activities in 2016 also recorded positive results with the total mobilisation of 173.449 trillion dong (up 21.9 percent and reaching 101 percent of the plan), total outstanding credit at the end of 2016 was 159.010 trillion dong (up 24.8 percent and reaching 100 percent of the plan), the capital adequacy ratio at the end of 2016 was 13.12%, higher than the nine percent required by the State Bank. The submission plan on 2017 business plans is also announced by this bank with impressive growth such as: the total assets increases to nearly 280 trillion dong; the capital mobilisation grows 31 percent and outstanding credit swells 16%, bad debt is less than two percent of total outstanding loans. It is expected that the consolidated before-tax profits will be 5.020 trillion dong, equivalent to the growth of 26%. Techcombank's revenue structure in 2017 will go upwards, including the contribution from service fees out of the total revenue to minimise credit risks and reliance on outstanding loans due to the effective usage of banking trading system. The bank also plans to strongly increase its chartered capital by five trillion dong to 13.878 trillion dong. One of the most concerned reports is the plan to list shares in the stock market with the code TCB. Accordingly, the offer time is expected to be in the second quarter or the third quarter. The specific time will be decided by the BOD of the bank in accordance with the approval of competent state management agency and market conditions. The specific offer price will be decided by the BOD but not lower than the nominal value (10,000 dong/share) According to the report of the AGM, Techcombank plans to use increased capital in 2017 to expand its network, including: architectural and other fixed assets (expected at 916 billion dong), technology investment and other equipment (expected at 1.617 trillion dong) and the rest will be to increase capital for credit activities and investment in government bonds (expected at 2.467 billion dong). However, this plan does not mention about the dividend payment to shareholders, an action that the bank has not done since 2011. At the AGM last year, this issue was questioned roughly by shareholders. Specifically, the shareholders asked a series of difficult questions such as: why did leaders pay each other up to 4 - 5 billion dong (total remuneration in 2015 of the BOD was over 28 billion dong), while shareholders did not receive any dividends? There was even an idea suggesting the State Bank's representative inspect Techcombank for not paying dividends for many years. To the shareholders' inquiries, Ho Hung Anh, Techcombank Chair, said that Techcombank did not pay dividends because it started to apply international standards on Basel II. In order to achieve the expected revenue and profit, the top priority is to ensure sufficient equity to meet requirements on capital adequacy. In case the development is not necessary, then the company will pay dividends to shareholders, the indicators show the need to issue shares to increase capital for development. "In every case, paying or not paying dividends are included in the stock value of shareholders. No one expects the stock to be traded at low value, but wants TCB up to 40,000-50,000 dong/share. When listing, we need to have a programme to make investors understand the real value of Techcombank and spend money buying shares with the most reasonable price" - Ho Hung Anh said. The above reasons will definitely be brought again by Techcombank's BOD to explain in front of shareholders this year regarding the dividend payment. However, the above submission plans will hardly be approved by shareholders, because this is the time when TCB is listed on stock exchange. The question is whether a newly listed stock with the "history" of no dividend payment for five years can attract the investors' attention? That is not to mention a series of issues will be brought by shareholders to question the bank's BOD. For example, the reason for not paying dividends to re-invest to increase the competitiveness, but since 2011, where Techcombank has been in comparison with other non-state-owned joint stock commercial banks? According to statistics, in 2011, Techcombank was among the top five biggest joint stock commercial banks along with Military Commercial Joint Stock Bank (MBB), Saigon Thuong Tin Commercial Joint Stock Bank (STB), Vietnam Export Import Bank (EIB), and Asia Commercial Bank (ACB). However, this four banks has listed for a long time to attract capital in the stock market as well as to clarify the activities, while at this time, Techcombank is still trying to list its share in the stock market. Until now, Techcombank is no longer in top Five Commercial Joint Stock banks that have the largest chartered capital, but it is the bank that pays the highest salary to employees (an average of 23 million dong/month). This salary is much higher than the average salary which is 14.83 million dong/month of Vietnam Prosperity Joint Stock Commercial Bank (VPBank). However, VPBank is leading in profits in the group of private joint stock commercial banks. It is known that before 2011, VPBank was out of the above mentioned top Five, but now it has caught up with Techcombank in terms of total assets, chartered capital, even in terms of profits. Specifically, since 2011, VPBank has always maintained the policy of paying dividends to shareholders with the rate not under 10%/year. Another case is MBB now outstrips Techcombank in terms of assets scale and chartered capital. Although it has lower profit than Techcombank, it still maintains the policy of paying dividends to shareholders.

VIB plans dividend and bonus share at 44.6 per cent, to issue bonus shares for its employees 13/Apr/2017 Intellasia| VIR On April 12, Vietnam International Bank (VIB) published materials for its general shareholders meeting (GSM), which is scheduled to take place on April 27 in Hanoi. In 2016, VIB recorded significant achievements thanks to its efficient, safe and sustainable development, and focus on sustainable source of revenue, cost optimisation, and efficient risk management. In particular, VIB achieved VND702 billion ($31 million) of profit before tax, equivalent to 104 per cent of the target set by GSM. Total assets amounted to VND104.5 trillion ($4.6 billion), equivalent to 116 per cent of the target set by GSM. Credit growth reached approximately VND70 trillion ($3.1 billion), up 25 per cent for two consecutive years. Also in the year, VIB re-purchased 30 per cent of the debts sold to VAMC while controlling its NPL under 3 per cent. Thanks to good deposit growth, the bank's loan-to-deposit and short-term deposit to medium- and long-term loan ratio reached 65.6 per cent and 47.1 per cent respectively, which both well comply with the ratios required by SBV. The bank's capital adequacy ratio (CAR) was 13.5 per cent. Besides, in 2016 VIB continued to be well recognised by international institutions and government authorities. VIB was rated by Moody's to be in the group of banks with the highest financial strength for three consecutive years (2014, 2015, 2016); VIB won "Bank of the Year Vietnam" award for two consecutive years (2015, 2016) given by The Banker, UK. Also in 2016, VIB successfully organised its annual GSM and elected the board of directors (eight members) and supervisory board (three members) for Term VII (2016-2019). The bank's board of directors had six meetings and issued 84 resolutions in different areas of operation. Distribute dividend and bonus share, increase charter capital, and plan for 2017 Adhering to VIB's policy of paying dividend and bonus share at a high rate in 2014 and 2015 (23 per cent and 25 per cent respectively), in 2016 the bank's board of directors proposed to its annual GSM a plan of distributing dividend and bonus share at a maximum rate of 44.6 per cent of the charter capital, including 5 per cent in cash (estimated depending on SBV's approval) and 39.6 per cent by bonus share (including 3.5 per cent accumulated profit, 20.5 per cent capital surplus and 15.6 per cent reserve fund for charter capital supplement). In another plan, which is also proposed to the GSM, VIB will not distribute dividend in cash but apply a 44.6 per cent rate by bonus share only (including 8.5 per cent accumulated profit, 20.5 per cent capital surplus and 15.6 per cent reserve fund for charter capital supplement). In addition, the board of directors will also submit to the GSM a plan of paying bonus share to the bank's employees at a 0.4 per cent rate of the charter capital, equivalent to VND23 billion ($1.01 million). The plans of increasing charter capital mentioned above aim to strengthen VIB and its charter capital size so that the bank can get ready to meet liquidity and capital adequacy ratios in its business and operation. According to VIB, 2017 will be a promising year when the bank focuses on its targets of sustainable growth and size expansion. Apart from the plans of distributing dividend and increasing charter capital, VIB also pays due attention to its business plan for 2017, including a credit growth plan with 2 options: i) 16 per cent credit growth approved by SBV before; ii) 32 per cent credit growth estimated by the Board of Management based on its risk management capability and the economy's priority direction, depending on approval of SBV; Profit before tax estimated at VND750 billion ($33.1 billion); Deposit on market 1: over VND80 trillion ($3.53 billion); Total assets: VND120 trillion ($5.3 billion); Minimal decrease in credit balance with VAMC and NPLs controlled below 3 per cent. Besides, the Board of directors propose a plan to mobilise funds (maximum VND7 trillion ($310 million) on the secondary market for up to 10 years in order to strengthen its CAR and other financial indicators to serve the bank's business. The bank's annual GSM is scheduled to take place at Sheraton Hotel, Hanoi on April 27, 2017. http://www.vir.com.vn/vib-plans-dividend-and-bonus-share-at-446-per-cent-to-issue-bonus-shares-for- its-employees.html

Bao Viet Insurance leads non-life insurance market 13/Apr/2017 Intellasia| DTCK Bao Viet Holdings (BVH) has released 2016 audited business results with the total consolidated revenue of 25.675 trillion dong, increasing 23.5 percent from the previous year and exceeding 14.1 percent of the full-year target. Especially, in 2016, Bao Viet's non-life insurance sector grew strongly, leading Vietnam's non-life insurance market. Specifically, Bao Viet Insurance (BVH's subsidiary of operating in the non-life insurance sector) rose to No.1 position with original insurance premium of 6.565 trillion dong and after-tax profit of 301 billion dong. PVI Insurance stepped back to No.2 position with the original insurance premium of 6.527 trillion dong, according to 2016 audited financial statement of PVI JSC - the mother company of PVI Insurance. In the preceding year, PVI was the market leader in original premium revenue with 6.675 trillion dong, up 16.66 percent year-on-year, reckoning for 20.84 percent of the market share. Bao Viet followed with the estimated revenue of 5.934 trillion dong, up 4.97 percent from 2014, making up 8.88 percent of the market share. Bao Minh ranked the third with the estimated revenue of 2.845 trillion dong, up 9.46 percent from 2014 or 8.88 percent of the market share. In the life insurance sector, Bao Viet continued to grow strongly in terms of total premium and newly operating revenues with 17.117 trillion dong, up 30.9 percent and 3.056 trillion dong, up 32.3 percent respectively compared to 2015. Regarding structure, life insurance revenue reached 13.458 trillion dong in 2016, representing 52.4 percent of the total consolidated revenue; the non-life insurance revenue was 7.192 trillion dong, contributing 28 percent to the total consolidated revenue; the financial service and other sectors added 19.6 percent to the total consolidated revenue with 5.025 trillion dong.

PM calls for urgent bad debt settlement 13/Apr/2017 Intellasia| Vneconomic Times Draft resolution and law on the issue to be submitted to the NA. A draft National Assembly (NA) resolution on bad debt settlement and a draft law on revising the Law on Credit Institutions, together with other relevant laws, will be submitted to the legislature by the government at the same time. The direction was given by prime minister Nguyen Xuan Phuc during a government meeting on April 11. "Streamlining legal regulations and making a specific law on the restructuring of credit institutions and settling bad debts are necessary and must be done urgently," he said. "Delaying this would negatively affect the State's socioeconomic management." Ailing banks have been named and restructured while the safety of the banking system and assets of the State have been ensured after four years of implementing a project on restructuring the credit institution system in the 2011-2015 period, State Bank of Vietnam (SBV) Governor Le Minh Hung reported. Still, there remain obstacles to speeding up the restructuring of ailing banks and the settlement of bad debts because of inadequate legal regulations. In particular, there is no legal basis for applying solutions suitable to the situation nor effective financial support to help weak credit institutions recover. The law on the handling of mortgaged assets to recover debts still has many inadequacies relating to the confiscation of such assets, especially land, which limits the progress and effectiveness of debt settlement. "Most of the obstacles come from existing laws, so to thoroughly deal with these shortcomings it is necessary to issue specific laws that will ease the difficulties and facilitate the restructuring of weak credit institutions and bad debt settlement," SBV Governor Hung added. On a related note, Vietnam is planning to introduce a law that requires large shareholders in privately- owned banks disclose their assets and incomes to prove they are in a financial position to own stock, a sign that the government is seeking ways to clean up a banking system saddled with Southeast Asia's highest ratio of non-performing loans (NPLs). Bad debts have been a burden on Vietnam's economic growth since 2012 when total NPLs, mostly in the real estate sector, reached VND280 trillion ($12.5 billion), equivalent to 11 per cent of GDP. Although the official bad debt ratio in 2015 and 2016 remained low, at about 2.5 per cent of outstanding loans, this largely reflects the transfer of $12.7 billion in bad debts from banks to the State-owned Vietnam Asset Management Company (VAMC). As at the end of 2016, the debt bank had resolved only 18 per cent of NPLs purchased from banks. Real progress in reining in NPLs would thus depend on how fast it can resolve its impaired assets and at what cost. Moreover, progress in consolidating the banking system continues to languish, with no mergers or acquisitions completed in 2016, the report notes. As at December 31, the ratio of bad loans on balance sheets, those bought by VAMC from banks, and loans that may turn sour had reached 8.86 per cent of all outstanding loans, given the difficulties in dealing with assets used as collateral for bank loans and settling bad debts. http://vneconomictimes.com/article/banking-finance/pm-calls-for-urgent-bad-debt-settlement

Reference exchange rate stays unchanged 14/Apr/2017 Intellasia| VNA The State Bank of Vietnam kept the reference VND/USD exchange rate unchanged at 22,320 VND/USD on April 14. With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,989 VND per USD and the floor rate is 21,651 VND per USD. In the opening hours, commercial banks made slight changes to their rates. Vietcombank listed the buying rate at 22,635 VND/USD and the selling rate at 22,705 VND/USD, up by 5 VND from the day ago. Vietinbank also maintained its buying and selling rates at 22,630 VND and 22,700 VND, per USD. BIDV offered its buying and selling rates of 22,640 VND and 22,710 VND, per USD, up 10 VND. http://en.vietnamplus.vn/reference-exchange-rate-stays-unchanged/110230.vnp

Central bank again blocks the fall of exchange rate 14/Apr/2017 Intellasia| Vneconomy With the deep fall of the US dollar/dong exchange rate in markets, the State Bank once again raised the buying price to stop the fall. Specifically, on April 11th, the State Bank Operations Centre strongly increased the buying price of the US dollar on the list. The buying price at 22,575 dong which had been fixed for the last three months has changed, increasing as much as 100 dong, to 22,675 dong. The buying price of the State Bank Operations Centre continued maintaining at 22,675 dong on April 12th, creating a block to the deep fall of the US dollar/dong exchange rate since the end of March. Thus, this has been the second time since the beginning of the year that the State Bank must directly stop the falling of the US dollar/dong exchange rate. Previously, on January 9th 2017, the operator also had to improve the buying price from 22,300 dong to 22,575 dong. With the above intervention, the US dollar/dong exchange rate has reduced in the last two days on the list of commercial banks, popularising the 22,700 dong of selling price. In the interbank market, after the deep falls, then yesterday April 11th, there was a slight increase of eight US dollar, at 22,670 dong. The aforementioned developments pose the possibility that after the interruption since the end of February 2017, the State Bank may return to buy foreign currency, increasing foreign exchange reserves.

Exchange rate, not gold, is the existing concern 14/Apr/2017 Intellasia| Bao Dau Tu Last week, the world's gold market boomed as the United States launched missiles in Syria while sending aircraft carriers close to the Korean peninsula. The warming hostilities have led the investors to take refuge in gold. However, as the investors have been expecting, then at the beginning of this week, the world gold price declines, in which the main reason is the hostilities are difficult to escalate. The movement of the world gold market shows that the psychological factor is still predominant and unpredictable. However, since the beginning of the year, gold price has increased sharply. According to Dr Nguyen Tri Hieu, finance and banking expert, most likely, the gold price will continue increasing in this year due to the world's unstable geopolitical situation. Although the gold wave in the world market was quite clear in the first quarter of 2017, experts warn that domestic gold investment is difficult to make profit, because there is almost no wave in the domestic gold market and it is doesn't follow the world gold situation. According to Nguyen Duc Thanh, Head of the Vietnam Institute for Economic and Policy Research (VEPR), since the beginning of this year, when the world's gold price has continued increasing, the domestic gold price almost stands still and only increased strongly for a short period after the Traditional Lunar New Year holiday. The fluctuation of domestic gold price is just around two percent while the fluctuation of the world's gold price is four percent. As of the end of March 2017, the domestic gold price swelled only 0.25 percent in comparison with the end of 2016, while the world's gold price hiked 7.5%. "Because of the reversal developments between domestic gold price and the world's gold price, the difference between the gold prices decreased to 2.1 million dong/tael in comparison with five million dong/tael at the end of last year. This was a special feature of the gold market in the context of transitional period and we have not found a new model to escape from the current market control model", Dr Thanh said. While the domestic gold market is almost "immune" to the global market impacts, the US dollar is warned to have many potential risks to the economy. Since the beginning of the year, the domestic exchange rate has been very stable. Dr Nguyen Duc Thanh said, in the first quarter of 2017, the domestic exchange rate only fluctuated with the amplitude of +/-3%, in comparison with 2016, an increase of 0.5 percent only. This is a success of the new exchange rate management mechanism. However, the pressure on exchange rate is rising, while the greenback continues the increasing trend in the world market, along with the Federal Reserve System's (Fed) quite certain roadmap of raising interest rate and the relatively sustainable of the US's economy. As of the beginning of this week, the central rate has been adjusted by the State Bank to increase for seven consecutive sessions. Truong Dinh Tuyen, a member of the National Financial and Monetary Policy Advisory Council, warned that in the past months, although the State Bank of Vietnam adjusted the exchange rate reasonably but the pressure on exchange rate is still rising. "The USD is likely to be stronger when Fed continues increasing interest rate in the future. Many countries will devaluate the local currency to support export, so creating more pressures to Vietnam", Tuyen said. Le Dang Doanh, an economic expert, said in recent years, Malaysia has devaluated its local currency by 20%, Indonesia has devaluated its currency by 18%, China has devaluated around 10%. As per this economic expert, because of the large pressure on public debt repayment, Vietnam still has to keep the exchange rate, leading export to face difficulties. For example, fishery is struggling to compete with rivals from Malaysia, Indonesia, and the shrimp "king" Minh Phu or catfish "king" Hung Vuong are the typical examples. The difficult export is the consequence of exchange rate impact, but in the long run, this will be the cause that makes the exchange rate unstable if export makes "loss".

Exchange rate suffers more pressure from trade deficit 14/Apr/2017 Intellasia| DTCK The exchange rate movement in the first few months of the year has somewhat approved that concerns of experts that exchange rate will suffer from many pressures are well-grounded especially when trade deficit starts to return. Despite some quiet periods, in general, the exchange rate in the first months of the year tends to increase remarkably. In the recently released Q1/2017 economic report, the National Financial Supervision Commission said that the dong/US dollar exchange rate at commercial banks tended to decrease in January 2017, but then it has continuously increased since the first half of February and has always been close to the ceiling level announced by the State Bank of Vietnam (SBV). The exchange rate on free market in the first half of February had a sharp rise to above 23,000 dong/US dollar, but quickly "cooled down" afterwards and it is now very close to the exchange rate of commercial banks. This trend still continues on the first days of April. Specifically, on April 10th 2017, the State Bank continued to raise the central rate by five dong, to 2,316 dong/US dollar, commercial banks list the selling price of US dollars at about 22,710 - 22,720 dong/US dollar. In comparison with 2016, the central rate has increased 157 dong (equivalent to about 0.7%). One of the main reasons for the increase of the exchange rate was the monetary tightening movement of Fed, when on March 15th, this agency officially raised the US dollar interest rate by 25 points, to about 0.75-1%. This was the second increase in interest rate of Fed in the past three months. This agency also announced to increase for two more times this year and three more times in 2018. This has strongly increased the US dollar price in the world market. Before this fact, many economists agreed with the forecast that the US dollar will get stronger thanks to the expectation that Fed will increase interest rates, thereby putting pressure on the domestic exchange rate. However, according to the National Financial Supervision Commission, the action from Fed is only a part, the main pressure on the exchange rate this year is the supply of foreign currency may be less favourable than the previous year as the trade balance may reverse from the surplus in 2016 to a high deficit. "In the first quarter of 2017, the exchange rate sharply fluctuated mainly because of strong imports. In the first three months of the year, the trade deficit was estimated at $1.9 billion, equivalent to 4.4 percent of export turnover", said the National Financial Supervision Commission. In addition, the reason also comes the capital balance that can be affected when the ODA has been limited since July 2017. As per the Central Economic Committee, the low dong interest rate in the interbank market also caused the exchange rate to suffer from many pressures. Vietnam economy annual economic report 2017 of the Central Economic Committee showed that the increase of exchange rate for 2016 was 1.18%, but the exchange rate increase of 2.5 percent in comparison with the end of 2015 within nearly two weeks at the end of November 2016 was a noticeable matter. The reason of this matter, as pointed out in the report, was the amount of money available for buying foreign currency in the period from May to October was almost not neutralised, causing the interbank dong interest rate to fall to the record low (the overnight rate decreased to less than one percent, the swap point was approximately zero at many times) which encouraged credit institutions to hoard foreign currency (shown in the high positive foreign currency status) and manipulate prices, making exchange rate to soar as soon as adverse factors appear. The Central Economic Committee said that the low dong interest rate on the interbank rate in recent time made dong interest rate lose its role of orientating targeted exchange rate range in the interbank market. According to the agency, the interbank interest rate should be kept at a more reasonable level. If the dong interbank rate cannot play its role of orientation in the interbank market, and the central rate cannot play its role as indicator then the hoarding psychology which has initially been eliminated after the central rate was applied) may gradually appear again in the market. Accordingly, whenever there is expectation of Fed's interest rate adjustment, the US dollar index in the world market increases rapidly, then the interbank exchange rate will have "waves", the forex market will be difficult to control, the exchange rate fluctuations like in the last two months of 2016 will continue to happen, especially in the context that Fed plans to increase the interest rate two more times this year. And yet, the fact that the domestic inflation tends to increase again also puts great pressure on the exchange rate and erodes the confidence in the local currency. Besides the fluctuation of the US dollar, the National Financial Supervision Commission also recommends to pay attention to the developments of the CNY. "The sharp depreciation of the CNY will have a big impact on Vietnam's economy, because Vietnam's trade deficit with China is on upward trend, from $23.7 billion in 2013 to $28 billion in 2016. Compared to GDP, Vietnam's trade deficit with China is 14%, much higher than the two percent of the US's trade deficit with China", a senior leader of the National Financial Supervision Commission said.

Will banks be pickier with loans? 14/Apr/2017 Intellasia| Vneconomy Late on April 12, leaving the leaders' meeting, the chair of a commercial bank called VnEconomy's correspondent after a missed call. Credit is currently the focus of monetary policy management and increased sharply in Q1. Last week, a senior leader of the State Bank talked on the sideline with VnEconomy about the aforementioned development "It is hard to say. In previous years, when credit growth was low or negative at the beginning of the year, there was much information saying capital was getting stuck and the banking sector did not fulfill the responsibility of promoting capital for businesses. This year, when credit growth was good and increased steadily since the beginning of the year, there were concerns that it would cause inflation pressure and hot growth". At the end of Q1/2017, credit growth reached 4.06%, the record high in six recent years. That was the average so there should have many specific cases with higher growth rate. As in the update sent to VnEconomy at the end of last week, Saigon Thuong Tin (Sacombank) said despite the difficulties, the market share of mobilising and lending continues to rise in which the credit growth in Q1/2017 reached 4.8%. The bank chair said credit growth must be re-balanced. The credit growth rate in the past Q1 was revealed to be over eight percent. At the annual general meeting (AGM) scheduled to take place on April 28, the leader expects that this will need to be explained carefully to shareholders. Firstly, it is because the credit growth was outstanding just in the first quarter of the year (including long holidays). At this bank alone, in the past decade, there has never had such a strong credit start. Secondly, there may have concerns from shareholders about whether there are signs of hot growth, easy loans; whether the total credit growth target of 16 percent as assigned by the state bank can be broken or not. If the State Bank does not provide quotas, it will be difficult for the bank to "break" because at the end of 2016, the Banking Inspection and Supervision Agency under the State Bank called each member exceeding the assigned quota to warn that if they did not adhere to, they would be subject to sanctions. The mechanism of assigning credit growth room to each member is also the basis for the State Bank to stand firm against concerns that such a sharp credit increase may put pressure on inflation, generate hot growth, etc. because finally, the credit growth limit of the whole sector is still controlled by the aforementioned mechanism. More noticeably, the bank's capital flow is showing signs of changing following that high credit growth rate. In other words, the period of more demanding bank capital seems to be starting. At the meeting ended late April 12, the aforementioned bank Chair said he and other leaders of areas, branches agreed with the plan i.e. restructuring customers' structure and capital use efficiency. "Lending activity was very favourable right from the beginning of the year. With such high credit growth rate while the State Bank only allows the whole year credit growth at 16%, we will have to be more demanding with projects and borrowing demands. When the quantity is controlled, we will invest more in quality", said the bank chair. Accordingly, the bank will screen to lend more secure projects, capital demands with better capital use quality and collaterals. This further enhances credit quality. "Since the second half of 2016, we noticed this point so we tightened. We no longer compete by lending at much lower interest rates than deposit rates but focused more on customers with higher capital use efficiency. We also excluded customers having signs of borrowing from our bank with lower interest rates to deposit in other banks with higher interest rates. With the current good credit growth prospect, I believe that this screening will expand in many banks", said the insider. He also noted that high credit growth at the beginning of the year in some banks is a good sign of the economy's demand and is an opportunity to screen customers but will not lead to a 2017 with hot credit growth because besides the strict control of credit growth room for each member that the State Bank is doing, the capacity of banks is also limited. As VnEconomy mentioned in the previous article, after many years, as in 2012-2016, the credit scale of the entire system grew 78.11 percent to meet the demand of the economy while the charter capital scale of the entire system increased 24.54 percent only. At the same time, the slow capital growth also had to bear the total asset growth that amounted to 67.2 percent and the specific impact was the decline in the capital adequacy ratio. The strength of each leg is limited except to be further enforced by successful plans for charter capital increase. The exception is now looking to the state budget when the group of state-owned commercial banks is accounting for more than 50 percent of the credit market share but is very difficult to increase capital in recent years.

State Treasury mobilises VND6.8 trillion through government bonds 14/Apr/2017 Intellasia| VNS The Vietnam State Treasury raised around VND6.8 trillion (US$300 million) for the state budget through an auction of bonds on the Hanoi Stock Exchange (HNX) on Wednesday. The bonds were offered for five tenures - five years, seven years, 15 years and 20 years - with VND1 trillion in each term, and the 30-year term valued at VND2 trillion. Bonds worth a total of VND3 trillion for five, 15 and 20 years got sold out at lower interest rates compared to the previous sessions, with winning yields of between 5.1 per cent and 7.36 per cent per year. For seven-year bonds, only VND610 billion of VND1 trillion was raised, with a winning yield of 5.43 per cent, a similar rate to the previous sale on April 5. The 30-year bonds did well, collecting VND2 trillion at 7.79 per cent interest per year, six basic points lower compared to the session held on April 5. A total of VND1.2 trillion was raised in the sub-session sales for the three terms of 15, 20 and 30 years. The state treasury has mobilised around VND68.3 trillion since the beginning of this year. In 2017, it plans to issue government bonds of VND 183.3 trillion. http://bizhub.vn/banking/state-treasury-mobilises-vnd68 trillion-through-government- bonds_285499.html

Banks want secured transaction papers quickly handled 14/Apr/2017 Intellasia| The Saigon Times Representatives of some banks have petitioned HCM City to tell district authorities to speed up the processing and return of applications for secured transactions between credit institutions and enterprises. At a seminar held in the city on April 12 to discuss ways to solve the difficulties faced by credit institutions, banks said it often took more time than expected to handle economic cases related to businesses. District-level land registration offices are slow in dealing with secured transaction applications for credit institutions and enterprises. Current rules specify that the time for registration of secured transactions is three working days. Some districts like Binh Thanh, District 7 and District 11 perform this job very well, with results coming out within one day. However, the process remains sluggish elsewhere, so banks have petitioned districts, especially outlying ones, to shorten the time needed for return of secured transaction applications to one day. With this, it would be easier for citizens and banks to carry out contracts and transactions related to land papers. "The time for dealing with secured transaction applications is very important. A delay of one day could lead to big financial consequences," said HCM City vice chair Tran Vinh Tuyen. Pham Ngoc Lien, director of the Land Registration Office under the HCM City Department of Natural Resources and Environment, said Binh Thanh District, District 7, and District 11 could handle and return the applications in one day because the workload in these districts is light, plus better machinery, equipment and software than others. Meanwhile, "the equipment at many land registration offices (in other districts) is outdated! They are using machines that process secured transaction applications with computers dating back to 1986." "We are currently disposing of these computers to apply for a project of renting management technology from Quang Trung Software City to connect the land registration offices of all districts in the city," Lien said. A leader of the HCM City Department of Information and Communications estimated the cost of investment in servers, equipment and software in such a connecting project would be about VND20 billion. Nguyen Dinh Tung, general director of Orient Commercial Joint Stock Bank (OCB), suggested the municipal government banks to invest VND20 billion in equipment required for speeding up the processing of secured transaction applications and in return collect a service fee from the parties concerned. Attention to credit growth The HCM City branch of the State Bank of Vietnam (SBV) asked banks in the city to pay proper attention to credit growth. The lesson of overheated credit growth remains bitter, especially with credit growth in potentially risky areas. Tran Dinh Cuong, deputy director of SBV's HCM City branch, said capital raising by banks in the city as of March 31 had amounted to over VND1.79 trillion, up 1 percent from end-2016 and 11.1 percent over the same period last year. Deposits in the dong grew 14.13 percent year-on-year, accounting for nearly 85 percent of the total figure, while those in foreign currency declined nearly 6.3%. http://english.thesaigontimes.vn/53449/Banks-want-secured-transaction-papers-quickly-handled.html

VietinBank receives green light to sell VietinBank Aviva holding 14/Apr/2017 Intellasia| VN Economic Times Bank a 50/50 partner in VietinBank Aviva Life Insurance Company. The government has given permission to the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank, HSX stock code CTG) to transfer its holding in the VietinBank Aviva Life Insurance Company to Aviva International Holdings Ltd (AIH). The share price is yet to be announced. VietinBank contributed VND400 billion ($17.64 million) when the company was set up but by the end of 2016 the net value of its investment, by the equity method, was only VND183.8 billion ($8.1 million), while the value at the end of 2015 was approximately VND318 billion ($14 million). The equity method reflects the ownership of the investor in the business result of the investee. It was not exceptional for VietinBank Aviva to report losses last year. VietinBank Aviva has charter capital of VND800 billion ($35.3 million) and was set up in 2011 with a 50-year lifespan. It is a joint venture between VietinBank and Avia International Holdings Ltd (established in the UK), with each side holding 50 per cent. The company is a major player in the life insurance field. According to estimates by the National Insurance Supervision Bureau, it ranks tenth in premium revenue and has a market share of 1.52 per cent. Shareholder structures in life insurance companies have seen many fluctuations in recent years. In the PVI Sunlife Company, a Sunlife Group partner completed the acquisition of the entire capital from PVI after two transfers. The deal helped PVI record a large profit and led it to withdraw from the life insurance business after three years of involvement. http://vneconomictimes.com/article/banking-finance/vietinbank-receives-green-light-to-sell-vietinbank- aviva-holding

Domestic gold price surges 14/Apr/2017 Intellasia| VNS Local gold prices hit one-week high on Thursday in line with the robust growth of global gold prices. On Thursday afternoon, Sai Gon Jewellery Joint Stock Company (SJC) quoted buying and selling prices of its gold in HCM City at VND36.67 million (US$1,615) and VND36.87 million per tael, an increase of some VND130,000-150,000 per tael compared with Wednesday. DOJI Group also increased its buying/selling prices by some VND240,000 per tael, quoting its gold price at VND36.72-36.80 VND36.72 million-VND36.80 million per tael. At 3.30pm, Phu Nhuan Jewellery Joint Stock Company sold bought SJC gold at VND36.67 million per tael and bought sold it at VND36.85 million, a rise of VND90,000-160,000 per tael against the previous day. Gold was being traded at some $1,286 per ounce, a five-month high, on the New York Gold Exchange on Wednesday. (One tael is equivalent to 1.2 ounce). Gold prices have increased nearly 12 per cent this year globally, but are still VND1.2 million lower per tael in comparison with the domestic price. Robust growth in the global gold market is attributed to prolonged geopolitical tensions between the United States and Russia and North Korea. "Issues over US President Donald Trump's policies, the escalating conflicts in Syria and the challenge from North Korea seem to be the launch pad for increasing world gold prices," a DOJI representative was quoted as saying on vnexpress.net. http://bizhub.vn/markets/domestic-gold-price-surges_285501.html

Corporate

EU investors pump more than $21.56 billion in Vietnam 12/Apr/2017 Intellasia| VNS As of March, investors from the European Union had injected more than $21.56 billion into 1,959 projects in Vietnam, accounting for 7.2 per cent of total foreign direct investment and 8.5 per cent of projects registered in the country. The latest report from the Foreign Investment Agency (FIA) reveals that EU investors are interested in 19 Vietnamese sectors, with processing and manufacturing, eclectricity production and distribution, and real estate being the most attractive industries. During the review period, the processing and manufacturing sector lured $8 billion, making up 35 per cent of the total EU investment pledged in the country. Electricity production and distribution attracted $3.2 billion, or 15 per cent, while property obsorbed $2.5 billion, or 12 per cent. EU investors have funded projects in 54 provinces and cities in the period, focusing on HCM City, Ha Nội, Ba Rịa-Vũng Tau, Quang Ninh and Dồng Nai, according to the data. The Netherlands topped the list with $7.2 billion, totalling 26 per cent of EU investment in the country. The UK and Gemany followed with $3.7 billion, or 17.6 per cent, and $2.7 billion, or 13 per cent, respectively. http://vietnamnews.vn/economy/374402/eu-investors-pump-more-than-2156 billion-in-viet- nam.html#AOR11zW9I0KGya75.99

Vietnam, Cambodia strive for 5 billion USD in trade turnover 12/Apr/2017 Intellasia| VNA Vietnam and Cambodia have recorded encouraging outcomes in bilateral trade since diplomatic ties were set up five decades ago, and they are on the way to turnover of five billion USD in the near future. Vietnam is the third biggest trade partner and the fifth largest foreign investor in Cambodia. In late October 2016, Vietnamese minister of Industry and Trade Tran Tuan Anh and Cambodian minister of Commerce Pan Sorasak signed an agreement on trade promotion to raise bilateral trade to five billion USD. Statistics show that trade soared from 184 million USD in 2001 to 3.05 billion USD in 2015. It hit 2.4 billion USD from January to October last year, including nearly 1.8 billion USD of Vietnam's exports. Vietnam's main exports to Cambodia include steel products, fertilisers, textile-garments, machinery, spare parts and plastics. Shortly after signing the cooperation deal, the two sides provided tax incentives for each other's commodities. In particular, 29 Vietnamese goods will benefit from zero-percent import tariffs when they are shipped to Cambodia, including milk and cream, cassava starch, meat and rice products, confectionary, paint, plastic products, paper, ceramics and steel products. This is special treatment for Vietnam and better than Cambodia's promised incentives for other Asean nations. Meanwhile, Vietnam offered a zero-percent import tariff on 39 commodities from Cambodia, mostly agricultural products, plastic products, books and notebooks, fabric and bicycles. This incentive is believed to help Vietnamese businesses increase raw material supply for production. Although Cambodia is a Southeast Asian trade partner that has won the interest of many Vietnamese investors, its legal system remains inconsistent between central and local levels. That fact has impacted Vietnam's investment in Cambodia. To step up trade relations, the two countries agreed to remove obstacles for businesses, effectively carry out licensed projects and soon ink new cooperation agreements to raise trade to five billion USD. Many experts said the two countries should issue support policies for enterprises which invest in or trade with Cambodia. Vietnam needs optimal mechanisms for import-export activities, customs procedures, tourism and labour cooperation. According to Vietnamese and Cambodian leaders, the countries will enhance the implementation of the agreement on investment promotion and protection and soon sign an agreement on double taxation avoidance and a cross-border trade agreement which will replace the existing deal on goods and services buying, selling and exchange in border areas. They will also sign a labour cooperation agreement and a memorandum of understanding on transport cooperation strategy for 2017-2025. en.vietnamplus.vn/vietnam-cambodia-strive-for-5 billion-usd-in-trade-turnover/110057.vnp

Italian businesses pivot from China to Vietnam 12/Apr/2017 Intellasia| VIR Following the trend of many international groups that are leaving China, a number of Italian firms are shifting investments from China to Vietnam to benefit from cheap labour costs and the EU-Vietnam Free Trade Agreement. "Vietnam has become a more attractive destination for Italian small-and medium-sized enterprises as labour costs in the country are 3.5-4 times lower than they are in China. The legal policies are also more flexible," Pham Hoang Hai, executive director of the Italian Chamber of Commerce in Vietnam (ICHAM), told VIR. "Another important thing is that intellectual property rights protection in Vietnam is better than it is in the neighbouring nation to the north," he added at last week's annual area meeting of the Italian chambers of commerce in Asia and South Africa." Another important motivation is the landmark EU-Vietnam Free Trade Agreement (EVFTA), which is expected to take effect in early 2018 and reduce tariffs bilaterally on select imports and exports. "EVFTA will provide tremendous growth and innovation opportunities for European firms, including those from Italy. Thus, they are preparing to benefit from it. And this area meeting is one among many preparation activities to help them", Michele D'Ercole, president of ICHAM, told VIR. "I see good growth by the end of this year and next year". "Italian enterprises coming to explore Vietnam focus on trade. Bilateral trade increased by tenfold in 10 years to $4.6 billion in 2016, with the majority coming from Vietnamese exports to Italy. Italy is Vietnam's eighth commercial partner and fourth among the European Union," he added. According to statistics from Vietnam's Ministry of Planning and Investment, Italian investment in Vietnam increased from $340 million in 2015 to over $360 million a year later, with 78 projects in 2016. Manufacturing, transport, agricultural processing, and green energy are gaining the most attention among Italian firms in Vietnam. Successful Italian investors in Vietnam include reputable manufacturers such as Piaggio, Datalogic, and Ariston. The move away from China by international groups has increased in recent years, mainly due to legal barriers, rising taxes, labour costs, and fierce competition from Chinese firms. US-based Seagate, the world's largest hard disk producer, has shut down its plant in Suzhou China, laying off more than 2,000 employees. Other firms that have shifted operations away from China include Metro, Home Depot, Best Buy, Revlon, L'Oreal, Microsoft, Sharp, Panasonic, Sony, and Marks & Spencer. Experts forecast that the list will be longer in the coming months. China has imposed restrictions on the Korean companies in the tourism and distribution sectors because of its deployment of the Terminal High Altitude Area Defence system (THAAD). It is believed that this may prompt more Korean firms to leave China. Recently, US President Donald Trump called on US firms to bring operations back to the US, as China is the manufacturing base for many US companies. Apple has been studying the possibility of moving Iphone production from China to the US. A key Apple assembler, Hon Hai Precision Industry (also known as Foxconn Technology Group), has been toying with the idea of moving their production stateside. The corporate exodus from China provides Vietnam with a major opportunity to attract more foreign investment. However, not all groups leaving China are choosing Vietnam. For example, some Japanese firms sought investment opportunities in Vietnam after exiting China, but many have instead chosen Singapore and Indonesia as their targeted investment destinations. Economists say that Vietnam should further improve its business climate by solving problems related to legal policies, its workforce, and supporting industries. http://english.vov.vn/economy/italian-businesses-pivot-from-china-to-vietnam-347376.vov

Vietnam fails to score big in Egyptian fish market 12/Apr/2017 Intellasia| VOV Consumption of fish is a traditional and vital component of the Egyptian diet, and a primary source of inexpensive animal protein for the growing population, said Vietnam Trade Counsellor Pham The Cuong recently. Fish and fisheries in Egypt are expected to produce 1.4 million metric tonnes of product in 2017, principally seabass, tilapia and catfish, said Cuong, adding that 40 percent of it is allocated for domestic consumption and 60 percent for export to EU countries and Gulf states. Cuong noted fish and fishery imports of Egypt for the year are estimated at 215 thousand metric tonnes and consist primarily of mackerel, sardines and other. Most imports are made around the major holidays, such as Ranja. Imports of frozen basa and salmon are also made on a more regular year-round basis to feed the poverty- stricken people in the country. Cuong pointed out that fish consumption in the country linking northeast Africa with the Middle East has long been characterised by a traditional preference for wild caught fresh fish. The per capita consumption of fish in Egypt is 20.5kg compared to a global per capita of 19.3kg. However, with the development in cold storage facilities over the past decade, and improved distribution channels, frozen fish is becoming a more acceptable alternative for a limited number of Egyptian consumers. Another important influence in the fish and seafood market in Egypt is price, said Cuong. As an example, he said tilapia is indigenous to the Nile and has been a popular feature of Egyptian cuisine since the Pharaonic times. However, nowadays with the prices of wild caught fish and alternative sources of meat and poultry soaring - cooks throughout the country are becoming more amenable to farm raised seafood alternatives. Particularly high quality farm raised tilapia, which because of its health benefits and place in Egyptian culture can be found street side and in high end restaurants as well as households throughout the country. Fish and fishery exports of Vietnam to Egypt have been inconsequential over past years, Cuong underscored. According to official statistics they went from $20 million in 2007 to $64.2 million in 2015 and then dipped to $46 million last year. The Trade Counsellor said pangasius catfish and Nile perch are two species which could potentially compete directly with tilapia in the Egyptian (and international market) if Vietnamese farmers would focus on food safety and produce quality fish. Vietnamese farmers and exporters should also take note that most fish in Egypt is not sold in supermarkets or live markets like it is in Vietnam. The overwhelming majority is sold in specialised fish retail markets owned and operated by individuals or businesses that exclusively sell fish products. Most but not all retailers appear to be men, with perhaps around 10-15 percent being women. Many of them operate in specific market areas dedicated for groups of retailers. For example, in Cairo there are several specific retail fish markets such as Moneab, Zaytoun and Embaba and Sayeda Zaneb, Waely, Faisal and Maadi. Most of these retailers sell a variety of distinct species including tilapia, mullet and catfish, and virtually all sales of domestic fish (wild and farmed) are in whole fresh form. So, if Vietnamese want to score big in the Egyptian market they need to get their foot in the door of these specialised fish markets and not focus solely on supermarkets, Cuong concluded. http://english.vov.vn/economy/vietnam-fails-to-score-big-in-egyptian-fish-market-347357.vov

Vietnam hopes to attract more Japanese investment in big, influential projects 12/Apr/2017 Intellasia| VIR On the occasion of his visit to Japan from April 8 to April 15, minister of Planning and Investment Nguyen Chi Dung talked to VIR's Nguyen Duc about the Vietnamese government's hopes to increase trade and investment cooperation between the two countries. What is the purpose of your visit? This is the first time I visit Japan as the minister of Planning and Investment. This visit aims to strengthen the comprehensive strategic partnership between Vietnam and Japan and to prepare for prime minister Nguyen Xuan Phuc's upcoming visit to Japan in June, after the recent visit to Vietnam by the Emperor and Empress of Japan. Since the establishment of diplomatic relations between the two countries in 1973, the relationship has been growing fast in many areas and has now stepped into a new era, deepening in terms of quality, not just size. Japan is now the biggest sponsor of Vietnam, with the total committed ODA of $30 billion, and the second biggest investor, the third biggest trade partner, and the fourth biggest tourism partner. My visit was meant to enhance this cooperation and we hope that in the next period there will be breakthroughs that will increase the effectiveness of the cooperation in all these areas. Like you just said, Japan is the second biggest investor in Vietnam. During your trip, you will meet many big Japanese companies. To which fields and sectors do you hope to attract investment from Japan? We are looking to attract investment in high-technology, clean technology, source technology, manufacturing, supporting industry, and high-tech agriculture. Besides the traditional channel of direct investment, we would like to attract investment in the form of public-private partnerships (PPP) and mergers and acquisitions. With PPP, we want to enlist Japanese investors to important infrastructure projects. For mergers and acquisitions, we hope Japanese investors will join in the process of equitising Vietnamese state-owned companies by becoming strategic partners. By signing with Japanese investors, we hope not only for capital but also for technology and modern corporate governance experience. It is too soon to talk details but I can disclose this: in this trip, we are going to talk with some big Japanese corporations about large-scale projects that would help create an industry that is going to be a driver of growth for Vietnam and a basis to attract further investment from small and medium-sized companies that would develop the support industry in Vietnam. PPP is an important investment format that Vietnam is hoping to develop. Which projects do you hope Japanese investors will be interested in? The projects of priority are the North-South Expressway, Long Thanh International Airport, and urban transport projects, such as the Hanoi and HCM City Metro, and in the future, the North-South Railway. These are all big projects that will have a resounding impact on Vietnam's socioeconomic development. The legal framework for investment in the PPP format already exists, but we are currently reviewing it to make it more transparent and easier for investors to join PPP projects. A few days ago, the prime minister announced some important changes regarding the North-South Expressway project. Now, instead of carrying it out in separate sections, we will clear the whole site at once to carry out the project in one go. Additionally, instead of four to six lanes, the project is going to have six to ten lanes. The changes are meant to meet the demand of the country's development in 30-50 years. But that is only a vision. We cannot have eight to ten lanes at once, so at first it is still going to be four to six lanes. Maybe we will not have a big road immediately, but we will clear the whole site so that when we want to expand the road we will be able to do it faster and cheaper. The government also decided to set aside VND55 trillion ($2.43 billion) as reciprocal capital for PPP projects. These are important bases from which investors, including Japanese investors, can consider investing. The Vietnamese-Japanese relations have been good but there is still room for growth. What would be the most important factor that would push the relations to the next level? Without a doubt, the most important factor is trust. The two countries have to maintain strategic trust, and agree in views and cooperation plans. Only then will the relationship be able to reach the next level. I hope that after my visit the cooperation will be enhanced. In terms of investment, just as I said above, we hope that Japan can simplify ODA procedures, remove some criteria on the origin of goods, and decrease the cost of borrowing so that ODA projects can move fast and bring socioeconomic benefits to Vietnam sooner. This will, in turn, also increase the effectiveness of the ODA that Japan lends to Vietnam. On this occasion, I want to emphasize this: the Trump administration's announcement of withdrawal from the Trans-Pacific Partnership has fundamentally changed our outlook on the global economy. The world is rearranging into a new order, with the forming of some new supply and production chains. In this context, we want to be on the same page with Japan in terms of where we are in this new order and the global value chain. We want to cooperate with Japan to push the development of the Vietnamese economy so that it can grow faster, more stable, with more independence, and can connect to the whole world. http://www.vir.com.vn/vietnam-hopes-to-attract-more-japanese-investment-in-big-influential- projects.html

VN catfish exporters gear up for US inspections 12/Apr/2017 Intellasia| VNS Vietnam catfish processors must prepare for the inspection programme of the US Department of Agriculture (USDA) in order to boost exports into this market. "If Vietnamese producers can meet USDA's requirement, a huge market in the US awaits them," according to a recent article on seafoodsource.com. All catfish will be subject to the scrutiny of the USDA from September 1, including pangasius. USDA inspectors will check on all stages of the production chain in Vietnam. Catfish regulation will shift from the US Food and Drug Agency (FDA) to the USDA from the beginning of September, according to a law passed in 2014. The rules, pushed by the US catfish industry, will come into full force on September 1 after a 18-month transition period. Regulations under the USDA are considered more stringent, challenging Vietnam's struggling pangasius industry, which supplies about 90 per cent of the pangasius sold in the US. The sales of pangasius to the US would soar if Vietnamese exporters would use the American term for them - "catfish", according to the story. In 2002, a law was passed restricting the use of the word to American varieties. However, pangasius is now officially recognised by US authorities as being a catfish species, whether they produced domestically or imported, according to the story. One month ago, the National Agro-Forestry-Fisheries Quality Assurance Department sent a request to the US Department of Agriculture's Food Safety and Inspection Service asking for an equivalency determination on siluriformes fish of Vietnam, according to the Vietnam Seafood Exporters and Producers (Vasep). From March 1, 2016 when the transition period started, 62 Vietnamese processors were found eligible for exporting siluriformers to the US. Other exporters will have to await the equivalency determination, expected some time this summer. Duong Ngoc Minh, chair of the Hung Vuong Corporation, said at the company's annual shareholders meeting last week that exports of pangasius fish to the US would face many difficulties in 2018 due to the impacts of the USDA's increased inspection. He added the tra fish industry of Vietnam was facing a severe shortage of raw materials, which would last to February 2018 at least, due to unfavourable weather. In 2016, tra fish exports totalled $1.7 billion with total raw material processed for exports reaching 1.5 million tones. This year, raw materials for export was estimated at 800,000 tonnes only, Minh said. As of the end of March, China surpassed the US to become the biggest tra fish importer from Vietnam. http://bizhub.vn/news/vn-catfish-exporters-gear-up-for-us-inspections_285415.html

Vietnam's March rice exports hit one-yr high as top buyers grow hungry 12/Apr/2017 Intellasia| Vnexpress In the long run, top buyer China's imports are forecast to fall to 4.5 million tonnes in the marketing year to June 2018. Vietnam exported 550,700 tonnes of rice in March, the highest monthly figure in a year, with demand from China and several key buyers including Singapore and the Ivory Coast rising, Vietnam Customs data shows. The actual loading volume last month is the highest since March 2016 and also marks the first time in the past year when the monthly export volume from the Southeast Asian nation rose beyond 500,000 tonnes, based on data released on Monday by the finance ministry's customs agency. Vietnam is the world's third-largest rice exporter after India and Thailand. China, its biggest buyer since 2012, imported 286,100 tonnes in March, nearly double the amount from the previous month, while Vietnam's shipments to Singapore soared about 10-fold to 50,300 tonnes in the same period, Vietnam Customs said in a monthly report. The Ivory Coast took delivery of 6,700 tonnes last month, also nearly ten times the amount it bought in February and the meager 397 tonnes it imported the same month last year, the report said. Traders said Singapore-based trading firms use their location for shipping documents, while most of the Vietnamese rice destined for Singapore has in fact been going to other regional markets and Africa. Overall, Vietnam shipped 1.29 million tonnes in the January-March period, down 17.5 percent from a year ago, extending a decline seen since May 2016, based on customs data. The fall so far in 2017 is due in part to a lack of demand from the Philippines and Indonesia, traders said. China is forecast to import 5 million tonnes of rice in the 2016/2017 marketing year ending this June, up from 4.8 million tonnes a year ago, the US Department of Agriculture has said. But China's rice imports in the next year starting this July are forecast to drop to 4.5 million tonnes due to "diminished price competitiveness of imported supplies as well as restrictive measures for export sales to China," a USDA attache said in a report released last week. "As China's foreign exchange reserves dwindle and prospects for foreign exchange rate adjustments rise, arbitrage opportunity for imports has narrowed," said the report, dated April 4. Besides, China had granted rice export licenses for only 22 Vietnamese firms as of January 1, 2017. Last year, Vietnam's overall rice exports fell to 4.8 million tonnes, the lowest since 2008, due to better production in key markets such as the Philippines, Indonesia and Malaysia, as well as rising competition from India, Pakistan, China, Thailand, Myanmar and Cambodia. Prime minister Nguyen Xuan Phuc has called for another "revolution" to raise the quality of rice production and boost export value. The first revolution started in the late 1980s when rapid reforms in agricultural production helped turn Vietnam into a rice exporter after having to import the grain for several years. The Vietnam Food Association has targeted annual rice exports this year to edge up slightly to around 5 million tonnes. This week, Vietnam's benchmark 5-percent broken rice prices eased to $347-$350 a tonne, free-on-board Saigon Port, from $352-$355 last week, traders said. But the current prices are still above the average price of $344 in the first quarter, as estimated by the UN Food and Agriculture Organisation. http://e.vnexpress.net/news/business/vietnam-s-march-rice-exports-hit-one-yr-high-as-top-buyers-grow- hungry-3568624.html

Philippine ban worries VN rice firms 12/Apr/2017 Intellasia| VNS The recent suspension of rice importation by the Philippines, a major import market of Vietnam's rice, has sparked concern among local rice exporters. Last week, Philippine Agriculture Secretary Emmanuel Pinol said President Rodrigo Duterte had ordered a temporary halt to imports since local farmers had achieved a large rice harvest. Duterte had said that while there was a need to import rice for buffer stocks, the importation must not be done during the peak harvest season since this would affect local farmers. The Philippines was the second largest buyer of Vietnamese rice in the first two months of the year. Tran Thi Kim Nhung, director of the Dong Nai-based Kim Dong Thuan Co Ltd, which supplies rice to companies to export to the Philippines, told Nguoi Lao Dong (Labourers) newspaper her company was preparing for an export order of around 20,000 tonnes from the Philippines, and did not know what to do if that country stopped importing. "Vietnam lacks high-quality rice but has an abundance of cheap, low-grade rice, the kind that the Philippines usually imports. "If the market stops imports, finding a substitute market will be extremely difficult." Lam Anh Tuan, director of Thinh Phat Food Co Ltd of Ben Tre Province, said the Philippines had changed its rice import management mechanism, switching from government import to the private sector bidding for import quotas and increasing domestic supply. Global rice prices were falling, but paradoxically prices had increased in the Vietnamese market, making its rice less competitive. If businesses did not export, rice prices would definitely drop after the next crop, hurting farmers, he said. Dang Thi Lien, director of Long An Foodstuff Co Ltd, said she was in close contact with importers in the Philippines, and knew that the country had been hit by natural disasters and suffered from a rice shortage. Duterte's order to suspend rice imports from Vietnam would undoubtedly have a huge impact on Vietnam's rice exports, she said. According to the Vietnam Food Association (VFA), rice exports to that country have fallen significantly in recent years. The Philippines bought nearly 1.13 million tonnes of rice from Vietnam in 2015, accounting for 17.2 per cent of Vietnam's exports. Last year, it fell to just 400,000 tonnes, or 8.18 per cent of exports. VFA said businesses and official agencies should keep a close eye on the Philippines market to map out a suitable strategy as there was some contradictory information from the market. The Philippines' National Food Authority said last month the country needed to import 250,000 tonnes of rice as soon as possible. The VFA also forecast that the Philippines could resume imports in the period between rice crops (May- July). Vietnam exported 1.28 million tonnes of rice for $566 million in the first quarter of the year, a year-on- year decrease of 18.1 per cent in volume and 17.3 per cent in value. http://bizhub.vn/news/philippine-ban-worries-vn-rice-firms_285414.html

Can Tho city seeks French investment in agriculture 12/Apr/2017 Intellasia| VNS Officials of the Mekong Delta city of Can Tho introduced the local potential and advantages to French companies and called for investment, especially in agriculture, during a meeting on Monday. They highlighted Can Tho's potential of agricultural production such as rice, fisheries and fruit, along with hi-tech agricultural projects that need investment. They expressed their hope that French businesses would come to seek investment opportunities here. Chair of the Can Tho municipal People's Committee Vo Thanh Thong said agriculture was a strength of his city as well as other Mekong Delta localities. Many products made in Can Tho such as agricultural and aquatic products, apparel and handicrafts had been imported by France and other European countries. French firms should come to the city to invest in those areas in order to increase trade between Vietnam and France, he noted. There are six French-invested projects worth nearly $6 million in Can Tho. Meanwhile, bilateral trade has been on an upward trend. The city earned about $31 million from exports, mostly aquatic products, garments and handicrafts, to France in 2016. Its imports from the EU nations include pharmaceuticals, fertilisers, and agricultural medicine, Thong added. Can Tho had also carried out numerous cooperation activities in culture, education and healthcare with France. It expected bilateral relations to be intensified in the future, the official said. Martine Fumey, vice chairwoman of the World's No 1 Club, said the club gathered exporting companies in various industries of France, and they wanted to bolster the partnership with Vietnamese businesses. Their visit to Can Tho this time was aimed at enhancing connections with local firms and seek investment opportunities, thereby gradually turning French enterprises into a key trade partner of the city, said Fumey, chairwoman of the Ares company, which specialises in security device production. Jacques Aurin, secretary general of the club and president of the Baron de Madaillan AE company, said they were also interested in educational cooperation with Can Tho-based universities since education was the basis for economic development. After the working session, the French delegation visited some rice, fishery and fruit processing companies in Can Tho. vietnamnews.vn/economy/374444/can-tho-city-seeks-french-investment-in- agriculture.html#mikxPlpQOSRdX4TQ.99

Beneath pharma growth, a problem 12/Apr/2017 Intellasia| VIR Vietnam's pharmaceutical market has blossomed in recent years. But while providers are making great profits, patients are suffering due to the increasingly high prices of medicine. Avastin is a medicine used to treat certain types of brain tumour, and cancers of the kidneys, lungs, colon, rectum, cervix, ovaries, and Fallopian tubes. The pharmaceutical firm that distributes the drug, Vimedimex 2, has some levels of pricing for the same 100mg/4ml bottle, though all have be-vacizumab as their active ingredient. A vial of Avastin 100mg/4ml, with a registration number of VN1-131-09 and manufactured by F.Hoffmann-La Roche Ltd, can cost VND8,285,865 (US$376,63), VND7,762,545 (US$352,483), and VND7,173,810 (US$326,082). Avastin's price differences are not the only ones in the Vietnamese market, especially among speciality medicines for cancer treatment. For a 440mg vial of the medicine Herceptin IV, used to treat certain types of breast cancer and stomach cancer, one can pay VND46.597 million (US$2,118) per bottle at a drugstore in HCM City's Tan Binh district. At another drugstore in the city's Tan Phu district, the price is even higher, VND49 million (US$2,227). However, when reported to the Ministry of Health (MoH), the price is VND45,596,775 (US$2,072). Thus, the price difference can reach over VND3.4 million (US$154.50) per bottle. In another case, the price of Metalyse Inj. 50mg/10ml, used to treat adults suspected of having an acute myocardial infarction and made by Boehringer Ingelheim, is reported to MoH at VND25,748,100 (US$1,170). However, in fact, the product's price on the market is VND1-2 million (US$45.45-90-90) higher on average. In the context of confused pharmaceutical pricings in the local market, and in response to a recent press query about the medicine pricing situation in 2016, MoH minister Nguyen Thi Kim Tien said that 'As compared to the previous years, in 2016, the local pharmaceutical market was stable, with medicines sufficiently provided for the public." According to Tien, over the past months, in order to carry out the Law on Pharmacy, the ministries of Health, Finance, and Industry and Trade have had close control over the domestic pharmaceutical market. MoH has focused on managing medicine prices for state-run hospitals through transparent and competitive bidding. And medicine prices in the market are supposedly strictly supervised via forcing drugstores to declare product prices. Burden on the poor The uncontrolled medicine pricing situation is not only seen in speciality medicines, but also in other types of pharmaceutical products. Product prices vary in every hospital due to different bids, and also in drugstores due to different distribution networks with variable costs. However, end-users are the ones who suffer. For instance, 72-year-old farmer Tran Van Ve in the southern province of Tien Giang's Cai Lay district was recently hospitalised in HCM City due to his failing health. After examination, he was found to suffer from final-stage leukocyte cancer. For treatment, Ve needed Glivec, a medicine used for blood cancer treatment, and manufactured by Novartis Pharma. The medicine's price is very high, with a treatment cost of VND48.5 million (US$2,204) per month. "We cannot afford it, though we have sold off our house, land, and assets," Ve said. In another case, Nguyen Thi Be, 40, from the southern province of Dong Nai's Dinh Quan district, said her father, who is suffering from lung cancer, will need VND150-200 million (US$6,818-9,090) per year for the treatment. "The medicine's price is bloody expensive. We are very poor and are exhausted," Be said. According to tong Thi Song Huong, head of MoH's Health Insurance Department, it is very costly to treat cancer, at VND500 million (US$22,727) per year for Glivec, VND40 million (US$1,818) per month for Erlotinib (used to treat non-small cell lung cancers), VND118 million (US$5,363) per month for Sorafenib (used to treat advanced renal cell cancer), and VND85 million (US$3,863) per month for Tasigna (used to treat a type of blood cancer called Philadelphia chromosome positive chronic myeloid leukaemia). Price inflation Vietnam currently has more than 2,000 pharmaceutical product distributors, over 100 medicine importers, and over 40,000 drugstores. Medications are routinely traded via many intermediaries, with prices increasing dramatically. Pham Khanh Phong Lan, vice director of the HCM City Department of Health (DoH), ascribed the high prices to collusion between drug manufacturers and distributors. Furthermore, she said, medicines are also circulated through dozens of intermediary channels. Nguyen Sy Cuong, member of the National Assembly's Committee for External Affairs, also attributed the high prices to monopolies in drug import, which are traded via many intermediary firms. Dr Le Tuan Thanh from the National Cardiovascular Institute said that speciality medicines are quite expensive because Vietnam is still unable to produce originators, and have to import them. For this it depends on international pharmaceutical firms, which have spent vast sums researching the medicines. However, the main reason, Thanh said, is the harsh competition of interest groups established by monopolistic manufacturers and secondary-level distributors. All of them want to pay doctors and medicine vendors high commissions. But finally, it is the patients and local health insurance agencies that have to pay for the high prices. Consequently, Vietnam's health insurance system has been heavily affected. When patients cannot afford speciality medicines, they rely on health insurance. But the country's health insurance system is facing a very high payment rate of 10-20 percent per year, especially amid a limited state budget. The HCM City DoH's Lan claimed that the government has appropriate policies in place for dealing with such problems. "Speciality medicines should only be used for serious treatments. In other cases, generic medicines can be used, as they produce the same treatment results," Lan said. It is estimated that Vietnam's pharmaceutical market is valued at about $4.5 billion, of which $2.56 billion is spent on imported medicine. In search of a cure It has been suggested that the government closely control pharmaceutical bidding in the local market, and seek measures to replace speciality medicines with bio-equivalent ones. Vu Thi Thuan, chairwoman of Traphaco JSC, one of Vietnam's largest pharmaceutical firms, said that in the long term, Vietnam needs to self-produce original and speciality medicines, bolstered by support from the government. According to Thuan, when medicine copyrights elapse, and if local firms receive the technology transfer needed to make medications, the market will begin to benefit from cheaper pricing. And the poor will have greater opportunity to use speciality medicines for their disease treatment. Deputy prime minister Vu Duc Dam recently released a document requiring MoH to work with the Vietnam Social Insurance to amend and supplement regulations on purchasing off-patent medications, in order to reduce medicine prices via open bidding. Dam also asked MoH to direct hospitals to replace off-patent originals with Group 1 generic medicines that meet the treatment requirements of MoH's treatment list. According to the National Cardiovascular Institute's Dr Thanh, doctors should carefully consider the use of medications based on patient income. More importantly, local authorities must devise solutions to stem collusion among pharmaceutical distributors and manufactures. Also, Thanh said, the government should invest more into supporting domestic pharmaceutical firms, so that they can produce medications which will gradually relieve the industry's reliance on imports. http://english.vov.vn/economy/beneath-pharma-growth-a-problem-347293.vov

Japanese giants race to acquire Vietnamese mid-range hotels 12/Apr/2017 Intellasia| Vnexpress Welcoming the trend of business travels from East Asian countries to Vietnam, many large Japanese brands are pushing investment into mid-range hotels. Last week, Rout Inn group officially put the 4-star Grandvrio City Da Nang Hotel into operation. This 400 billion dong project could be considered as a kick-off for the landing of the Japanese leading hotel group to the mid-range market segment in Vietnam. Nagayama Katsutoshi - Chair of Route Inn Group expected to expand hotel and resort chain in Vietnam to 50 by the end of 2025. This group also planned to open Grandvrio Ocean Resort Da Nang on 26th May and another in Hue in 2018. According to Nikkei Asian Review, Super Hotel - other Japanese hotel chain brand had recently opened two places in Hanoi. Kuretakeso group also launched the first hotel in 2016 and second one in last February. Azumaya Hotel also opened nine locations in Vietnam. In recent year, mid-range hotel segment in Vietnam has developed rapidly with the appearance of many foreign giants, in which the appearance of Japanese hotel chain brands tends to increase. Two main reasons for this trend were to welcome the trend of business travels from East Asia to Vietnam and to take advantage of customers' taste. In recent years, tourists from countries like Japan, China and Korea, especially business travellers tended to increase. This thanked to the appearance of small-size multinational companies, branches of foreign corporates, and experts looking for job opportunities in Vietnam. According to general Statistic Office, in 2016, tourists from the three above mentioned countries accounted for 67 percent of the total number of foreign tourists to Vietnam. While new investments coming from large companies such as Samsung (Korea) or Japanese automobile companies seemed to slow down, about 341 Japanese companies in other fields joined Vietnam market in 2016, up 26 percent compared to the previous year. Japan Export Trade Research Organisation's survey showed that 34 percent of surveyed units said that they would expand business to Vietnam, just behind China and Thailand. This marked the second continuous year of increasing while this number for China and Thailand had reduced. However, form of stay became a major challenge for customers since they did not have much choice among luxury hotels with $200 per night and hostels with less than $30 per night. Supply for $40-100 hotels was in shortage while demand for this segment was high. For example, in Danang, the tendency to invest in hotels, lodging services in this locality has been increasing continuously in recent years. Besides tourism prospects, part of the reason comes from the welcoming of market tendency from the construction of high technology centers from domestic businesses such as FPT or large corporations from Japan. However, by the middle of 2016, out of 530 hotels in Da Nang, 400 were 1-2-stars. Some hotel managers said that widespread investment caused the market to "polarise". Small-size hotel owners experienced loss and had to sell due to no customers or to earn profits right after investment while supply for 3-4 star hotels was in shortage. Besides, understanding of Japanese's tourists' needs would be an advantage for lodging service developers from this country compared to local companies. According to some travel agents, Japanese tourists tended to stay at hotels operated by Japanese since they provided better standards. According to Consultancy Design and Urban Development JSC., which operated eight-floor Super Hotel Candle in Hanoi, psychological risk from guests had great affection on hotel operation, especially when most of the targeted customers came from Japan. These guests were much harder to please than guests from other countries.

Condotel market 2017: high liquidity with unique projects 12/Apr/2017 Intellasia| Nhip Cau Dau Tu After five year entering Vietnam, the wave of condotel has been reaching hot places for travel, like Da Nang, Nha Trang and Phu Quoc. Da Nang is one of the most attractive places for condotel investors. In 2016, there were 5,751 condotels, eight times more than the previous year and investors have poured capital for projects in this city. According to CBRE Vietnam, in 2017, Da Nang would expect more than 7,000 products in this segment. Experts reasoned the attraction of condotel as Vietnam's travel potential. Condotel is a mix between hotel and condo, like a "short term apartment", where tourists could have space to cook, or to welcome guests, which would be outstanding for group and family travel", said a real estate expert. Besides, since this is a new product, there would be much room to develop. High liquidity with unique projects Seeing great potential, local and foreign corporate have pushed investment in condotel projects. This caused a competitive environment, but it also brought customers a wide variety of choices. Under this circumstance, real estate companies needed real strategies to attract customers. In fact, real estate companies with promise of 10-12.5 percent interest created great attraction. Besides, as usual, customers paid attention to location of real estate, which would be propriety to attract tourists. Furthermore, designs, investors, operators were other items for customer to consider before investing in condotel project. To make a condotel project success, investors would need to make it unique, and if that unique met tourists' needs and wants, it would score more points, Savills Da Nang manager advised. Coco Ocean-Spa Resort under Cocobay was the most highlighted in Da Nang, which had unique wavy architect, great views, and world-class wellness and beauty care. In this resort, Spa & Fitness were invested in sync, with scale of 4,500 square meters - the largest Spa centre in Vietnam with leading modern technology. This new trend of Coco Ocean-Spa Resort created new investment wave, especially for Hanoi market. Its project opening ceremony in Hanoi attracted many customers to visit and study the project. Each condotel under this project cost from 1.8 billion dong but investors only have to pay once from 790 million dong to own it, SHB would lend the remaining in 10-20 years, with zero percent interest rate until the project handover. With commitment of 12 percent interest rate minimum in eight years, investors would be able to pay back to bank. Earlier, Empire Group also created a fever when it introduced 99 "limited" edition condotels under Naman Garden - Naman Retreat resort - one of the top 10 most beautiful resorts in the world.

Navigos Search unveils top industries with recruitment demand 12/Apr/2017 Intellasia| The Saigon Times Executive recruitment service provider Navigos Search on April 10 announced the top five industries in terms of recruitment demand for mid- and senior-level managers in Vietnam in the first quarter of this year. The top five industries were manufacturing, information technology, consumer goods and retail, banking and finance, and business service, Navigos Search said in a report on demands for mid- and senior-level managers in Vietnam that was compiled based on recruitment requests of its clients in quarter one. Navigos Search noted that for the first time the business service industry had made the top-five list. The highest-demand jobs in the industry were reported for financial advisory, management advisory, promotion-advertising and education. As for the manufacturing sector, industrial construction and civil construction categories registered the largest proportions of labour demand, followed by electricity and electronics. In the consumer goods industry, the highest demand came from food and beverage and fashion and cosmetic categories. Regarding the IT industry, the recruitment demand for developers and engineers in embedded software increased significantly. The report showed many companies had doubled the demand compared to last year but had to cope with shortages of qualified and experienced developers and IT engineers in Vietnam, with the most difficulty being their lack of proficiency in English. Navigos Search said previously employers prioritised the technical skills of candidates but they had changed the recruitment process to test their English skills firstly to eliminate the incompetent candidates. They accepted to have extensional training on the technical skills. Many firms in the mobile application area were ready to train potential employees on new technologies, with their prerequisite being a good command of English. However, this remains a major challenge for international companies with investment plans in Vietnam. Notably, several businesses with worldwide famous fashion brands have obtained business certificates in Vietnam, and they are recruiting employees with the assistance of recruitment agencies. According to Navigos Search, the positions needed by the firms were related to marketing, sales, human resource and administration. The report showed recruitment demands for mid- and senior-level managers surged 73 percent in the first quarter of this year compared to the year-earlier period. Navigos Search's data also revealed the highest salary in quarter one was paid for a senior-level management position in the real estate sector with about VND240 million (around $10,560) per month. The quarter saw mid- and senior-level managers in the manufacturing, trading and consumer goods sectors earning monthly salaries of VND100 million to VND180 million. http://english.thesaigontimes.vn/53399/Navigos-Search-unveils-top-industries-with-recruitment- demand.html

Q1 demand for mid- and senior-level managers up 73pct 12/Apr/2017 Intellasia| VN Economic Times Recruitment demand for mid- and senior-level managers in the first quarter increased 73 per cent year- on-year, according to a Navigos Search report released on April 10. The figures are based on recruitment requests submitted by its clients during the quarter. The Top 5 categories in recruitment demand for mid- and senior-level managers were Manufacturing, IT, Consumer Goods & Retail, Banking & Finance, and Business Services. Business Services made the list for the first time, with the greatest demand seen in the fields of Financial Advisory, Management Advisory, Promotion-Advertising, and Education. In Manufacturing, the Industrial Construction and Civil Construction fields accounted for most demand, followed by Electricity and Electronics. In Consumer Goods, the highest demand was in Food & Beverages and Fashion & Cosmetics. In IT, recruitment demand for developers and engineers in embedded software increased significantly. Demand has doubled at many companies compared to last year but there remains a shortage of qualified and experienced developers and IT engineers in Vietnam, with the biggest difficulty being a lack of English skills among potential candidates. Several famous global fashion brands are now officially licensed in Vietnam and with the support of recruitment agencies such as Navigos Search are hiring employees. "Hot" positions related to Marketing, Sales, Human Resources, and Administration. Local distributors working with these brands previously handled recruitment but now the brands are officially licensed they prefer to recruit talent themselves. "Their recruitment demand increases because they must follow their global head office's policies," a senior consultant at Navigos Search said. According to Navigos Search's figures, in the first quarter the highest salaries were paid to those holding a senior-level management position in Real Estate, at some VND240 million ($10,590) a month. Mid- and senior-level managers in manufacturing, trading, consumer goods, and others earned monthly salaries in the range of VND100 million ($4,415) to VND180 million ($7,945). http://english.vietnamnet.vn/fms/business/176357/q1-demand-for-mid--and-senior-level-managers-up- 73-.html

Business Briefs April 12, 2017 12/Apr/2017 Intellasia | * HFC Vietnam Trade & Investment Joint Stock Company has registered to sell 20 million shares of Sacom Development and Invest-ment Corporation (SAM) to cut its holding from 15.2 percent to 4.1 percent. * PetroVietnam Gas Corporation (GAS) has released preliminary first-quarter earnings results, with revenue reaching VND15 trillion, up 7.3 percent against the same period last year, and after-tax profit rising 12.3 percent to nearly VND1.5 trillion. This was mainly due to higher oil prices, which led to an increase of output gas prices across most segments. Meanwhile, gas sales reached 2.5 billion cubic meters, down 2 percent year-on- year, said Viet Capital Securities Company. * Thanh Thanh Cong Tourist Company (VNG) has decided to acquire several firms to strengthen its competitiveness on the tourism market VNG plans to spend nearly VND622 billion buying majority stakes at four companies - Thang Loi Tourist, Thanh Thanh Cong Lam Dong, Thanh Binh Tourist and Ben Tre Tourist. VNG will buy shares at the four enterprises at no higher than VNDI5,OOO each using the proceeds earned from a share sale early this month, which raised VNG's chartered capital from VNDI30 billion to VND752 billion. * Fecon Mining Company (FCM) targets a net profit of VND48 billion in 2017, down 45 percent versus the previous year. Its total revenue is set to reach VND560 billion, said the stockmarket news site at tinnhanhchungkhoan.vn. In addition, the firm plans to pay a dividend of 5 percent for 2017. * Asia Commercial Bank (ACB) has passed a plan to raise its chartered capital to over VNDl1.2 trillion this year. The scheme will help ACE meet its new safety regulations of the central bank, improve financial capability and credit services, and invest in information technology and risk management. The lender targets to obtain VND2.2 trillion in pre-tax profit, up 32 percent from 2016, and keep bad debt at below 2 percent in 2017. * VCS Advaned Quartz Stone Company (VCS) targets a pre-tax profit ofVNDl trillion this year, up 22 percent versus 2016. Its revenue is expected to climb 32 percent to VND4.3 trillion in 2017. In addition, the firm plans to pay a dividend of 20 percent to 50 percent for 2017 and spend VND50 billion buying shares of Phenikaa Hue Mineral Processing & Investment Co Ltd this year.

HCM City expands cooperation with Japanese prefecture 12/Apr/2017 Intellasia| VNA HCM City has signed a Memorandum of Understanding (MoU) with Japan's Nagano prefecture to forge cooperation in industrial production, tourism, agriculture and human resources development, according to Sai Gon Giai phong newspaper. The MoU was inked by vice Chair of the municipal People's Committee Le Thanh Liem and Governor of Nagano prefecture Shuichi Abe, aiming to establish a close friendly relationship based on mutual respect and trust. During a working session with Secretary of the municipal Party Committee Dinh La Thang in Nagano city on April 10, Shuichi Abe said many businesses in his prefecture want to work with HCM City in the processing industry and hi-tech agriculture after their tour to Vietnam in 2016. The MoU is expected to boost bilateral ties, he said, adding that he hopes more local companies will invest in HCM City in the aforementioned fields and tourism. He pledged to create best conditions for Nagano businesses to invest in Vietnam and HCM City. For his part, Thang said his visit aims to explore cooperation opportunities. Vietnam's southern metropolis wants to step up collaboration with Nagano in support industry, education, human resources training, transport and health care, he said, adding that the application of Japanese technologies in Vietnam will help the city address important issues in production development, environmental protection and food safety. He said Nagano is strong in temperate agricultural products, electronics, information technology, mechanics and tourism. Meanwhile, HCM City boasts potential in tropical agriculture and has big demand to develop Nagao's fields of strength. Currently, about 17 Nagano businesses invest in HCM City with total capital of more than 20 million USD, he said, noting that the prefecture's Hachijuni bank has sent representatives in Vietnam to help Japanese businesses to invest in the Southeast Asian country. He expressed his belief in an increase in investment from Nagano in HCM City. Apart from economic partnership, cultural and people-to-people exchanges between Vietnam and Nagano are thriving through the 10-year-old Nagano-Vietnam Exchange Association. The delegation from HCM City also visited Matsumoto and Shiojiri cities in Nagano prefecture to learn about local tourism and hydroponic farming. Delegates visited Tokyo Keiki company, which specialises in producing hi-tech measurement equipment, and 70 percent of its products are assembled at the Vietnam-Singapore Industrial Park in Vietnam. http://en.vietnamplus.vn/hcm-city-expands-cooperation-with-japanese-prefecture/110050.vnp

Forum looks into fourth industrial revolution's impacts on Vietnam 12/Apr/2017 Intellasia| VNA The Ministry of Industry and Trade held a forum in Hanoi on April 11 to evaluate the impacts of the fourth industrial revolution (4IR) on Vietnam's socio-economic affairs as well as organisations and businesses. Deputy minister Ho Thi Kim Thoa said the 4IR is forecast to change the entire system of production and administration around the globe. The 4IR is at the starting period, so it is necessary for Vietnam to promptly grab the opportunity to speed up industrialisation and modernisation towards the goal of becoming a modern industrialised country, she added. However, the country will be under great pressure if it fails to define clear targets and suitable approach via economic reshuffle, education reform, and science-technology development, she noted. Head of Vietnam Institute of Economics Tran Dinh Thien said the 4IR is creating challenges relevant to adjustment costs in the short and medium run due to its uneven impacts on separate sectors. The rapid growth of many businesses would generate new technologies but also eliminate those who cannot catch up with the trend, he added. So far Vietnam has geo-economic advantages along with an abundant and young workforce, but the 4IR will eliminate those advantages, he said, noting that the country needs a different and feasible approach to optimise opportunities from the 4IR. Apart from improving education-training, human resources, and infrastructure, Vietnam should stimulate and promote innovation among businesses, he recommended. Country director of the UN Development Programme (UNDP) in Vietnam Louise Chamberlain said the 4IR is one of the most useful and quickest ways to help Vietnamese enterprises increase productivity and competitiveness. The UN in Vietnam is willing to cooperate with the country to seize opportunities from the 4IR. http://english.vov.vn/economy/forum-looks-into-fourth-industrial-revolutions-impacts-on-vietnam- 347375.vov

VN crafts must cater to demand 12/Apr/2017 Intellasia| VNS Vietnamese handicraft firms need to make greater efforts to meet the requirements of foreign buyers, said participants at a seminar in HCM City yesterday. Speaking at the Improving Sector Standards and Practices for Export Products in Vietnamese Handicraft Sector, Le Ba Ngọc, deputy chair of the Vietnam Handicraft Exporters Association (VietCraft), said foreign importers increasingly require their suppliers to meet the sectors standards on quality, corporate social responsibility, and environment. A survey of 100 international buyers done by VietCraft with funding from the Australian government found that 75 per cent of importers wanted their suppliers to comply with standards in the next five years, he said. "If we do not meet standards, we will find it hard to export our products." Filip Graovac, Asia Foundation deputy country representative, said: "These requirements put enormous pressure on handicraft producers to devise means of keeping their costs low while also meeting the new requirements of buyers, and at the same time creating an opportunity for these producers to raise their capacity to meet international standards." The Asia Foundation implemented a project funded by the Australian government to support VietCraft to raise sector standards and practices. This was done through a series of activities including research into international standards; development of a manual on international compliance criteria with special focus on ceramics, lacquer ware, rattan, and bamboo; support for handicraft enterprises with improvement plans including design and marketing; and policy advocacy for further compliance initiatives among other handicraft products with exporters, business associations, and relevant government agencies. "However, the number of the international compliances keeps increasing over time, and together with the already lengthy and complicated sets of standards, this is causing difficulties for small- and medium-sized companies to use it in diagnosing their actual situation and designing potential improvement plans," Graovac said. The Asia Foundation has supported VietCraft to digitise the international compliances as well as sector standards into a business compliance software. The software content is a comprehensive library of international compliances and sector standards consolidated by the project experts who are also business practitioners from the handicrafts sector. The user-friendly software would not only provide handicraft enterprises an online tool to determine their status, but also create opportunities for them to discuss with and acquire technical assistance from other experts and practitioners, he said. Ngọc said the association regularly organises training courses and provides consultancy to help enterprises comply with the standards. Talking about the difficulties in complying with the standards, he said nearly 70 per cent of firms complain that they do not have enough trained staff for the purpose. "Therefore, training human resources is the first thing they need to do," he said. "Lack of resources for implementing the compliances is another problem," he said. Nguyễn Huy Thong, deputy director of Ngọc Dộng Ha Nam Co Ltd, a handicrafts company, said the compliance costs are high as firms need to earmark money for fire prevention, health checks for workers, waste treatment, and more. Delegates at the seminar learnt how to use the new business compliance software to measure their present level of compliance. The workshop is the last activity under a project to build VietCraft's capacity and raise sector standards and practices. Vietnam earned more than $650 million from exports of handicrafts in the first three months of the year. The full-year figure is expected to top $2.1 billion. vietnamnews.vn/economy/374497/vn-crafts-must-cater-to-demand.html#IL4U8BGZ56JjojOK.97

Vietnam's March coffee exports dip but global prices may ease on ample stocks 12/Apr/2017 Intellasia| Vnexpress An early thirst for coffee among importing nations this year is filtering down to exporters. Vietnam, the world's second largest coffee producer after Brazil, exported 168,000 tonnes (2.8 million bags) of the commodity in March, down nearly 7 percent on-year, a significant reversal from a 32-percent jump during the same period in 2016, based on government data released on Monday. However, certified stocks held against the London robusta futures market, and stocks in importing nations are rising, which could put downward pressure on prices, an industry report said. Vietnam's March export volume took the country's total shipments to 834,100 tonnes for the first half of the 2016/2017 crop year, up 2 percent from a year ago, Vietnam Customs said in its monthly report. The government had initially estimated the March volume at 180,000 tonnes. The country's coffee crop year runs between October and September. In February, shipments hit their highest monthly level since 2014, based on customs data. Vietnam's rising coffee exports have contributed to higher certified stocks on the London robusta futures market, according to the International Coffee Organisation (ICO), but the slowing pace could be an early sign that Vietnam may face a shortage of coffee beans in May/June, as forecast last month by top exporter Intimex. London's certified stocks at the end of March edged up to 2.85 million bags (171,000 tonnes) from 2.8 million bags the previous month, the ICO said in its March report. Stocks have been rising every month since October 2016, when the current crop year started. Stock levels are a key indicator to show how much good quality robusta is being held for wholesale shipment. The ICO said coffee stocks in the US, Vietnam's second biggest coffee buyer after Germany, reached 6.45 million bags in February, the highest level since May 2003. Rising stocks, coupled with positive outlooks for the next crops in Brazil and Vietnam, could prompt prices to ease, the London-based ICO said. "In combination with a positive outlook for the 2017/18 crop in Brazil and Vietnam, previous supply concerns seem to have been largely alleviated and the market lacks any strong signals to reverse from its gradual decline," the report said. May robusta ended up 1.26 percent last Friday at $2,170 per tonne, having gained 6.2 percent since the current season started last October, based on Intercontinental Exchange data. http://e.vnexpress.net/news/business/vietnam-s-march-coffee-exports-dip-but-global-prices-may-ease-on- ample-stocks-3568205.html

Binh Duong continues improving business climate 12/Apr/2017 Intellasia| VNA The southern province of Binh Duong will continue efforts to improve its business environment and provincial competitiveness index (PCI). According to the provincial People's Committee, local officials will hold more dialogues with businesses to collect feedbacks and promptly tackle their difficulties, along with supporting them in production and business activities. In the first quarter, Binh Duong's industrial development index grew 7.27 percent over the same period last year. The flow of foreign direct investment (FDI) in industrial parks (IPs) exceeded 1.3 billion USD. The export turnover of businesses at industrial parks reached 2.8 billion USD, accounting for 43.8 percent of the province's total export value. In terms of domestic investment attraction, Binh Duong province drew 9 trillion VND (396 million USD) in registered capital and added investment from 1,132 enterprises. The province is now home to almost 26,600 domestic businesses with a combined registered capital of 198 trillion VND (8.72 billion USD) and 1,890 FDI enterprises with a total registered investment of 27.1 billion USD). The province is working on projects to expand the Bau Bang and Nam Tan Uyen IPs, and build the Vietnam - Singapore III and Cay Truong IPs. http://en.vietnamplus.vn/binh-duong-continues-improving-business-climate/110084.vnp

Binh Duong records positive export growth 12/Apr/2017 Intellasia| VNS The export turnover of the southern Binh Duong Province touched $6.36 billion in the first quarter of 2017, a year-on-year rise of 16.1 per cent. The domestic sector contributed $1.14 billion, up 8.4 per cent, while the foreign-invested sector accounted for $5.22 billion, up 16.8 per cent, the provincial department of Industry and trade revealed. Products that saw high exports include wooden items ($894.6 million), clothes ($741 million), and leather and footwear ($575 million). In March alone, the province's export earnings recorded a 9.5 per cent rise to $2.15 billion. Of this, the domestic sector contributed $359.2 million, while the foreign-invested sector put in $1.79 billion. The province has imported $4.66 billion worth of goods in the first quarter, up 14.9 per cent. In March, import was valued at $1.6 billion. http://bizhub.vn/news/binh-duong-records-positive-export-growth_285434.html

36-hole golf course built in Ha Nam 12/Apr/2017 Intellasia| DTI News PM Nguyen Xuan Phuc has approved another golf course, with a 36-hole golf course to be built in the northern province of Ha Nam. PM Phuc has just asked the Ha Nam Provincial People's Committee to carry out the project. According to the committee, The Kim Bang Golf Course, the first in the agricultural province, will be built on an area of 198.24 ha in Ba Sao Town, Kim Bang District with total investment of over VND1 trillion (USD44.230 million). The project will be put into operation in early 2018, the committee said. The PM has also agreed to reduce the size of the 36-hole GS Cu Chi Golf Course in HCM City to an 18- hole with area of 90 ha. Statistics from the Ministry of Natural Resources and Environment showed that by early 2016 Vietnam already had 58 golf courses which are operating on a total area of 9,720 hectares in 24 cities and provinces. According to a golf course planning approved by former PM Nguyen Tan Dung in 2009, Vietnam will have 90 golf courses by 2020. http://www.dtinews.vn/en/news/018/50371/36-hole-golf-course-built-in-ha-nam.html

Call for VND7trn to upgrade railways 12/Apr/2017 Intellasia| DTI News Chair of Vietnam Railway Corporation Vu Anh Minh spoke about the VND7trn (USD309m) plan to upgrade the sector's infrastructure for the 2017-2021 period. Minh said he had asked the Ministry of Transport to submit the plan for prime ministerial approval. What would these funds be used for? The railway from Hanoi to Danang can only withstand 4.2 tonnes per metre, and 3.6 tonnes per metre for Danang to HCM City. It's important to upgrade the loading capacity from Danang to HCM City to 4.2 tonnes then expanding the railway at the stations so that we can increase the number of carriages from 19 to 25. What we want to do is call for investment. In April, we'll sign a contract with Saigon Newport Corporation to build two inland container depots at Song Than and Dong Anh industrial zones. This is a corporation under the military and holds 50 percent of the market share so we hope the projects will be a breakthrough for the railway sector. We also sign contracts with many tourism firms and business associations to attract more passengers and boost promotion. Will you change the traditional colour of the current trains? To make the trains more fresh and friendly, we'll use blue and white. We plan to provide advertising on the sides of the trains to have funds for the repaint. After taking over the office for one month, what is your plan to attract passengers? The board agrees to safely and fully exploit what we have right now. Meeting customer demand and build trains based on the actual number of passengers we have. We'll focus on shorter routes and develop long-distance freight. Currently, the train for the Hanoi-HCM City route can carry hundreds of passengers but in reality, only 15 to 20 people actually choose to go the full route from Hanoi to HCM City or vice versa. The long- distance trips have the premiere hours but we need the best hours for passengers on the short routes like from Hanoi to Vinh City. Passengers on long trip actually don't really care for the hours. In the coming time, we'll adjust the hours for the short-distance trip. Is the railway sector afraid to compete with the airlines because of higher prices? We choose to exploit what have the most advantages for us. The ticket prices for HCM City-Nha Trang and Hanoi-Vinh City routes are cheaper than going by plane. In addition, it takes about 4 to 5 hours to travel from the city to the airports, wait for the procedures and wait for the plane. We have the advantages of train stations right in the centres of many cities, we're on time and safe. However, we need better services. We are preparing to sell a two-in-one ticket that offers cars to bring passengers from the station to Cua Lo Beach in Vinh. The sooner you book tickets, the cheaper the prices are, and giveaway tickets to people that have influential on society and help promote the sector. We'll try to lower the prices for long-distance trips. www.dtinews.vn/en/news/018/50367/call-for-vnd7trn-to-upgrade-railways.html

Sand prices see sharp increase 12/Apr/2017 Intellasia| VNS Sand prices have soared over the past few days, following the government's order to tighten supervision of sand mining, though speculation is more likely to be blamed for the price jump. Do Thanh Nguyen, owner of a construction materials supply agent in Nam Dinh City, told Nguoi Lao Dong (The Labourer) newspaper that for one week, sand wholesalers had raised prices by 1.5-2 times and are delivering only half the earlier volumes of sand. According to the wholesalers, the cause of the price hike is that supervision of sand mining has been tightened just as the construction season began. In Hanoi, sand prices have also jumped over the past few days. The owner of a building material company in the city said that sand prices now ranged between VND120,000-200,000 (US$5.3-8.8) per cu.m, compared to the previous VND80,000-180,000 per cu.m. He predicted sand prices would continue to rise, saying that sand mining in the northern provinces of Bac Ninh and Bac Giang had been suspended until inspections had been completed, which has sharply reduced supplies. Further, the owner of a construction contractor in Hanoi's Cau Giay District said that the prices of sand had skyrocketed, causing his business great risks, since it had signed a construction contract before the price hike. According to the Ministry of Construction's Department of Construction Materials, the legal sites for mining sand could only meet 60-65 per cent of the needs of large cities. Meanwhile, the nationwide demand for sand has increased sharply, from 92 million cu.m in 2015 to 130 million cu.m by 2020. Because large amounts of sand come from unlicensed sources, the restrictions on sand mining had reduced the supply of sand, pushing up prices, the department explained. However, Pham Sy Liem, former minister of construction, said that the shortage in sand was not serious enough to have caused the price hike. The situation was likely due to speculation, he said, adding that authorities needed to clarify why prices saw such large increases. Nguyen Ngoc Thanh, head of the Construction Materials Division under the HCM City Department of Construction, said that rising sand prices were due to a divergence between supply and demand. To help people and businesses keep track of prices, the department regularly updates and posts price tables from many construction material suppliers for their reference. Regarding the question of whether government supervision has caused sand prices to jump, Thanh said that there was no evidence to support this, since it was difficult to determine the amounts of legal and illegal sand supplies. Deputy head of Hanoi's National Assembly delegation Ngo Duy Hieu said that there should be a mechanism to organise sand-mining bids to legitimate enterprises to prevent sand smuggling, which ultimately would help stabilise the market. http://bizhub.vn/news/sand-prices-see-sharp-increase_285412.html

3-bedroom condos scarce in HCM City, to become hot cakes 12/Apr/2017 Intellasia| Bizhub Demand for three bedroom condominiums is set to surge in HCM City thanks to the convenience and the high profits they offer, experts have predicted. A report said that since 2014 developers have brought 110,000 condos into the city property market, some 30 per cent of them with three bedrooms ranging in size from 80sq.m to 100sq.m. Another 60 per cent are two-bedroom condos measuring around 65sq.m, and the rest are one-bedroom units and others. According to experts, for a condo with three bedrooms, 100sq.m is the ideal size suitable for a sustainable development trend of Vietnamese families in which they live with their grandparents or baby- sitters. But it is notable that many developers have reduced the size of three-bedroom condos to around just 80sq.m. The number of condos with three bedrooms and measuring around 100sq.m is limited. As the size reduces, so does convenience because then the size of each room is very small. Crystal-gazing experts said the market would soon face a shortage of three-bedroom condos measuring around 100sq.m. They said those developers building such condos are the intelligent ones because their prices are sure to jump in future due to the dwindling supply. Saigon South Residences wins market Saigon South Residences is a clear example of the high demand for three-bedroom condos. Sold since October last year, the project, the first that Phu My Hung Development Corporation developed outside its Phu My Hung City Centre, has attracted plenty of buying interest. After four successful phases of sales of its Saigon South Residences, with the rate of purchase being nearly 90~98 per cent in each, Phu My Hung Development Corporation has announced that the last phase will be on April 22 and they will sell units in Block D. Over four sales phases, nearly 1,500 units have been sold, more than a third of them being three-bedroom condos measuring from 94sq.m to 104sq.m. The developer said demand for such condos has not been any less than for two-bedroom units. With three bedrooms, these condos are the best choice for families who live with their parents or have more than one child and babysitters living with them, Phu My Hung said, adding that with these condos, there will be no need for them to change to other accommodation when their family has additional members. Buying three-bedroom condos is a smart choice, experts said, explaining that their supply in the market is not high. And the supply is even less in projects with full service like Saigon South Residences. The building has 321 condos. Of them, 30 per cent are three-bedroom condos measuring 94-104sq.m. It has a yoga room and playing room for children. Saigon South Residences has been designed by Sino Pacific Construction Company. It has 6 buildings with 19 to 29 floors, including 1,840 condos and 32 per cent of them are three-bedroom condos The project, covering an area of nearly 33,000sq.m, has earmarked 69 per cent of the land for greenery and amenities. This is the first project that Phu My Hung has developed with 69 amenities and services. More importantly, security is ensured throughout the day with a camera system working 24/7. After four selling phases, many customers cared about the project. They said that they like the way that the developer announces information. It is clear and transparent. All information about the project including prices and buying application form are published. Furthermore, customers have also been informed about parking lots. Saigon South Residences is expected to bring high profits to investors since it is located in a place where infrastructure is undergoing tremendous development. By 2019, when the construction of Saigon South Residences is complete, many transport infrastructure works will also be completed, like a flyover on Nguyen Huu Tho and Nguyen Van Linh streets; widening of many roads like Nguyen Huu Tho, Le Van Luong, and Huynh Tan Phat; and six bridges, namely Nguyen Khoai, Rach Dia 1, Thu Thiem 4, Thu Thiem 3, Phuoc Khanh, and Binh Khanh. http://bizhub.vn/property/3-bedroom-condos-scarce-in-hcm-city-to-become-hot-cakes_285422.html

More than 700 cars sold a day in Q1 12/Apr/2017 Intellasia| The Saigon Times More than 700 cars were sold each day in the first quarter of this year, according to the latest report of the Vietnam Automobile Manufacturers Association (VAMA). VAMA said nearly 64,700 cars were sold in the quarter. Specially, nearly 26,900 automobiles were sold in March, up 52 percent against February and up 8 percent year-on-year. These included 16,800 passenger cars, 8,300 commercial autos and 1,800 special-use vehicles with the respective increases of 67 percent, 31 percent and 45 percent over February. Notably, the consumption of both imported and assembled automobiles in March increased compared to the previous month. Specifically, nearly 18,400 locally assembled automobiles and 8,500 imported automobiles were sold, up 35 percent and 114 percent respectively. However, sales of locally assembled autos have tended to slow down since early this year with more than 46,300 cars sold, while sales of imported cars have soared with more than 18,400 cars, up 41 percent over the same period last year due to the duty on CBU autos being slashed to 30 percent this year from 40 percent in 2016. In the first quarter, Truong Hai Auto Corporation (Thaco) took the lead with over 23,700 units sold, accounting for a market share of nearly 40 percent. Toyota came second with nearly 13,500 units and Ford took the third position with more than 6,900 cars, accounting for 23 percent and 12 percent of the market. http://english.thesaigontimes.vn/53372/More-than-700-cars-sold-a-day-in-Q1.html

March auto sales up 52pct 12/Apr/2017 Intellasia| VN Economic Times Local manufacturer Truong Hai Auto led the way with 9,468 vehicles sold, for a market share of 45 percent. Total automobile sales in March rose 52 per cent compared to February, to nearly 27,000 units, despite people waiting for prices to further decline, according to the latest data from the Vietnam Automobile Manufacturers' Association (VAMA). The Vietnam News Agency cited the data in reporting that sales of completely-built-unit (CBU) vehicles increased 114 per cent, reaching 8,484, while more than 18,388 completely-knocked-down (CKD) vehicles were sold, up 35 per cent. Of the total, 16,805 units were passenger cars, up 67 per cent, 8,278 units were commercial vehicles, up 31 per cent, and 1,789 units were special-purpose vehicles, up 45 per cent. Domestic manufacturer the Truong Hai Auto Corporation led VAMA members, with 9,468 units sold, representing a market share of 45 per cent. Toyota Vietnam followed, with 4,679 units, or 20.5 per cent, and Ford Vietnam, with 2,501 units, or 11 per cent. Total automobile sales in the first quarter of 2017 saw a year-on-year increase of 8 per cent to 64,729 units, with passenger cars up 23 per cent while commercial and special-purpose vehicles fell 10 per cent and 13 per cent. respectively. The number of CBUs sold rose 41 per cent while the number of CKDs fell 1 per cent. http://vneconomictimes.com/article/business/march-auto-sales-up-52

SHS Holdings signs MOU to develop solar farm in Vietnam 12/Apr/2017 Intellasia| VOV SHS Holdings Ltd has announced that it and its wholly-owned subsidiary, Sinenergy Holdings Pte Ltd, signed a memorandum of understanding with the Ninh Thuan People's Committee to develop a 300MW solar farm. The proposed farm would be constructed by Singaporean based SHS Holdings on agricultural land in Ninh Thuan Province, Vietnam. This proposed investment is subject to a detailed feasibility study to be conducted; the subsequent issue of an investment licence from the Ministry of Planning and Investment of Vietnam, and the passage of certain legislation by the Vietnam government. The specific solar power policy and legislation is anticipated to be ratified by the Vietnam government later this year, before the parties move ahead to sign a formal implementation agreement. "We have completed extensive research into the opportunities and technical parameters surrounding the potential of harnessing solar energy in Vietnam, and believe that Ninh Thuan is the most suitable and ideal location for such a project," said Henry Ng, CEO of SHS Holdings. The Group, he said, is accelerating its track record in solar energy, which is one of its key growth engines. In 2016, it completed a 4MW grid-tiered solar photovoltaic system on the rooftop of SATS Airfreight Terminals 5 and 6 at Singapore Changi Airport. It is also currently constructing a 50MW solar plant in Bangladesh that is expected to complete by the second quarter of 2018. http://english.vov.vn/investment/shs-holdings-signs-mou-to-develop-solar-farm-in-vietnam-347362.vov

Hoa Phat Group posts growth in steel output, market share 12/Apr/2017 Intellasia| VNA Hoa Phat Group, a major industrial production group in Vietnam, manufactured more than 505,000 tonnes of steel in the first quarter of 2017, up 27.9 percent year-on-year, while its market share expanded to 24.2 percent. The group partly attributed the growth to the thriving property market and a surge in purchasing power. It exported more than 52,000 tonnes of steel, mostly to the US, Canada, Australia and Asean countries in Q1 - equivalent to the export volume of all of 2016. In March alone, the firm sold more than 183,000 tonnes of steel, increasing by two percent from the same period last year but dropping from 242,000 tonnes in February. As a result, Hoa Phat's steel market share went up by two percentage points from the end of 2016. In 2016, it held a 22.2-percent market share with 1.8 million tonnes of steel sold. The group made up about 25 percent of total steel pipe sales in Vietnam, retaining the top spot in the domestic steel pipe market. It earned 33.88 trillion VND (1.49 billion USD) in revenue and 6.6 trillion VND (291.3 million USD) in post-tax profit last year, respectively soaring by 34 percent and 89 percent from a year earlier. http://en.vietnamplus.vn/hoa-phat-group-posts-growth-in-steel-output-market-share/110056.vnp

Co.opmart sells hundreds of top brands cheap to mark anniversary 12/Apr/2017 Intellasia| VNS From now until May 2, Co.opmart and Co.opXtra supermarkets across the country will offer discounts of up to 50 per cent on more than 2,100 essential items to celebrate Co.opmart' s 21st anniversary. The products offered at discounts include cooking oil, fish sauce, flavour enhancer, instant noodles, fragrant rice, dairy products, toothpaste, shampoo, detergents, fashion products, non-stick pans, pork and mangoes. Besides, shoppers having Co.opmart cards can cut barcodes printed in the Co.opmart catalogue to get 50 per cent discounts on 30 other products under a programme called "Gia tot tan tay, nhan ngay uu dai" (Good price, get incentives). A special programme called "Sieu uu dai" (Super incentives) enables customers to buy Ajinomoto monosodium glutamate and Pepsi and Dutch Lady products at just VND1,000 and VND2,000. As part of a programme to celebrate the anniversary, the supermarkets will set aside more than 100,000 coupons to gift customers and offer them a chance to accumulate three to nine times more points than on normal days. Customers can also take part in activities and games on Co.opmart's Facebook fan page and Zalo to win attractive gifts. Nearly all leading brands like Unilever, Coca Cola, Vinamilk, Masan, P&G, and Novelty are participating in the promotion month. This means customers can get incentives while feeling secure about the quality of the cheap products. In the leased out areas of the outlets, fast food brands like KFC, Dunkin Donut, Pizza Hut, Tini World, Nu Cuoi Vui, Game Kim Phat, Debora Milano cosmetics, PNJ, Diamond World, Fahasa Bookstore, The Blues fashion store and others will also run promotions with attractive gifts during this month. These promotions apply only at their shops located at Co.opmart supermarkets. http://bizhub.vn/corporate-news/coopmart-sells-hundreds-of-top-brands-cheap-to-mark- anniversary_285397.html

Dragon Capital partners with Ruby Hill to tap microfinance in Burma 12/Apr/2017 Intellasia| The Saigon Times Vietnam's Dragon Capital Group has inked a deal with Myanmar's Ruby Hill Financial Company, a member of Loi Hein Group, to set up Ruby Hill Microfinance, a microfinance institution based in Yangon, Myanmar. With initial capital of $5 million, the joint venture will provide financial services for the burgeoning workforce that is driving Myanmar's rapid economic development, said Sai Sam Htun, chair of Loi Hein Group at the signing ceremony in HCM City last week. Ruby Hill holds a majority stake of 51 percent in the new institution while its Vietnamese partner owns the remainder. In 2013, more than half of Myanmar's population had no access to financial services, and 30 percent used unregulated services. An estimated $1 billion in financial needs had not been met, according to the United Nations Capital Development Fund. Dominic Scriven, chair of Dragon Capital, said the joint venture with the Myanmar partner is not a move for the company to leave the Vietnamese market. Dragon Capital has plans to join an enterprise to provide services for the Vietnamese insurance sector. Loi Hein is a leader in the fast moving consumer goods market in Myanmar, with its main products like Alpine water and a wide range of carbonated soft drinks available at over 45,000 outlets. http://english.thesaigontimes.vn/53369/Dragon-Capital-partners-with-Ruby-Hill-to-tap-microfinance-in- Myanmar.html

Japan's Teijin planning $18m air bag fabric plant in Vietnam 12/Apr/2017 Intellasia| Nikkei Teijin will build a Vietnamese factory for air bag fabric as soon as late 2018 as more emerging economies mandate the safety feature in automobiles. The Japanese materials company also seeks to capture replacement demand created by the massive recalls of vehicles using defective air bags from Takata. Textile subsidiary Teijin Frontier plans to construct the roughly 2 billion yen ($18 million) facility in a location to be decided as early as June. This will mark the company's second for air bag fabrics, after one in China. It will make fabric using nylon fibers. Teijin Frontier targets up to 60 billion yen in sales from automotive fabric operations by fiscal 2020, about double the figure from the year ended March 2016. Japanese rivals Toray Industries and Toyobo, meanwhile, are boosting their own capacity. Teijin Frontier also looks to gain from the bilateral free trade agreement that could take effect in 2018 between Vietnam and the European Union. Under this scenario, the new factory would serve as a point of departure for Europe-bound air bag fabric. http://asia.nikkei.com/Business/Companies/Japan-s-Teijin-planning-18m-air-bag-fabric-plant-in-Vietnam

Siemens helps improve Vietnamese transmission grid performance 12/Apr/2017 Intellasia| VIR As part of an extensive programme to ensure a reliable national power supply in Vietnam, Siemens has received an order from the state-run energy company Electricity of Vietnam's National Load Dispatch Centre, to improve the performance of the nationwide transmission grid. Accordingly, the German industrial giant will supply and install products and systems for detecting and evaluating failure situations in the grid, for ensuring grid quality and for detecting and monitoring dynamic grid states. The equipment will be installed in substations distributed throughout the country and in the grid control centres, where it will help increase the grid's failure tolerance, improve its transmission capacity and optimise the expansion of new primary plants. The goal is to make better use of the existing grid infrastructure and to be able to connect additional loads as well as prevent outages that could result from overloading. The substations and control centres are expected to be equipped with the new technology and go into operation by mid-2018. Fault recorders from the Siprotec 5 7KE85 series, combined with the Sicam PQS evaluation software, will be used in 73 Vietnamese substations, and the Siguard PDP (Phasor Data Processor) wide-area monitoring system will be employed in three regional and one national grid control centres. These fault recorders work with an integrated function for measuring synchrophasors to monitor grid dynamics and measure grid quality. The devices enable the event-based evaluation, analysis and documentation of processes in the grid, including critical load situations, short-circuits, power fluctuations and power swings. The integrated Sicam PQS evaluation software evaluates the fault recorders to provide a quick overview of the grid quality. The Siguard PDP wide-area monitoring system in the one national and three regional control centres will also help ensure that the transmission grid in Vietnam operates reliably. It uses synchrophasors in real time, making it easier to quickly assess the current condition of the grid. "In addition to power supply shortage, Vietnam is encountering high transmission and distribution losses for a number of reasons. The Vietnamese government has put a great deal of efforts so as to reduce these losses. With this order, Siemens is very proud to be able to support the National Load Dispatch Centre in successfully fulfilling their challenging tasks while realising our commitment to assist Vietnam to improve the grid performance," said Pham Thai Lai, Siemens Vietnam president and CEO. http://www.vir.com.vn/siemens-helps-improve-vietnamese-transmission-grid-performance.html

Uber's pilot e-hailing project in Vietnam approved 12/Apr/2017 Intellasia| VNS The Ministry of Transport has approved Uber Vietnam's pilot project of applying technology in managing and connecting under-contract passenger transportation. Deputy minister of Transport Nguyễn Hồng Trường, said on Monday Uber Vietnam had completed its pilot project following requirements of the ministry two months ago. However, Uber Vietnam would need to get necessary approvals from local authorities where the company has registered its operation. Dặng Viet Dũng, executive director of Uber Vietnam, was quoted by online newspaper vneconomy.vn as saying that getting the ministry's approval marked an important step forward for Uber and would encourage the car hailing service firm to continue renovating technologies and bring conveniences and benefits to users and drivers in major cities across the country. Dũng also affirmed the large potential of car hailing services in Vietnam and expected Uber would contribute to promoting socio-economic development. The ministry had rejected Uber's pilot project in Vietnam on two previous occasions - in November 2015 as the company had not founded an appropriate legal entity in Vietnam and early this year because the project was not in compliance with established laws. Vietnam is the first country in Southeast Asia where Uber allows cash payment. Uber currently provides services in Ha Nội and HCM City, with UberX for 4-5-seater cars, UberBlack for seven-seater cars and UberMoto for motorbikes. Amid the increasing popularity of the e-hailing service, the ministries have allowed firms to develop pilot projects to apply technology in managing and connecting passenger transportation. The pilot project of Uber's rival in Vietnam, Grab, was approved earlier this year. Uber and Grab are the only two foreign firms which have registered for pilot e-hailing projects in Vietnam, besides local taxi companies, including Vinasun Taxi, Thanh Cong Taxi, Sun Taxi and Vic Taxi. http://vietnamnews.vn/economy/374453/ubers-pilot-e-hailing-project-in-viet-nam- approved.html#rmFTJD7hbVFhwTVY.99

GoBear VN launches travel insurance comparison product 12/Apr/2017 Intellasia| VNS GoBear Vietnam has launched a travel insurance comparison product on its website at gobear.com/vn. The new service offers users the opportunity to get hands-on experience in searching from and comparing 26 different products with approximately 100 international travel insurance plans from 21 suppliers, including non-life insurance companies and insurance brokerage firms. This will help users in the country save time and effort in searching for and selecting the travel insurance products that best fit their needs. Tran Nhật Khanh, country director of GoBear Vietnam, said: "Travel insurance is seen as a useful solution that helps travellers explore the world without having too much on their minds about the potential risks of the trip. This product will come in handy for them in the event of personal accident, medical expenses, loss of baggage and personal belongings, trip cancellation, along with numerous other benefits. Now, when we need a travel insurance plan, we often rely on the advice or recommendations of friends and family." To mark the event, GoBear will host an online competition for users called "My dear Bear, go with me to Singapore", which will offer a special prize of a tour for two to Singapore worth VND20 million (US$900). Since it went live in Vietnam in early December 2016 with two products - comparison of credit cards and personal loans - GoBear Vietnam has landed over 200,000 comparison hits on its website. The travel insurance comparison product launched at this stage is part of its strategy to diversify services and add more benefits to users. GoBear, Asia's first metasearch engine for insurance and banking products, was founded based on the premise that a consumer should find freedom and ease when making financial decisions related to insurance, credit cards and loans. http://bizhub.vn/corporate-news/gobear-vn-launches-travel-insurance-comparison-product_285406.html

Ways sought to make tourism spearhead industry 12/Apr/2017 Intellasia| The Saigon Times Tourism has been identified as a spearhead industry that will have a spillover effect on many other sectors, so it needs a special mechanism for development. A measure for enhancing trade promotions through cost contributions from enterprises is being considered. Indirect contribution at 14 percent of GDP Ngo Dong Hai, deputy head of the Party Central Committee's Economic Commission, said tourism had been growing drastically, so it could become a spearhead sector with great contribution to the country's socio-economic development. He was speaking at a conference on tourism held as part of the 2017 Vietnam International Travel Mart. Last year, the tourism sector saw a 10.2 percent rise in international tourist arrivals and an 11.8 percent increase in domestic visitors. For the first time, the country achieved 10 million international visitors a year. Direct contribution to GDP was 6.1 percent and indirect one was 14 percent, according to the Ministry of Culture, Sports and Tourism. In that context, to help the Vietnamese tourism industry bringing into full play its potentials and strengths, and for healthy and strong development in the near future, the Politburo issued Resolution 08- NQ/TW on "developing tourism into a spearhead economic sector." The resolution orientates and creates conditions for tourism to become a spearhead. The government is mapping out an action programme to carry out Resolution 08. At the conference, Nguyen Van Tuan, head of the Vietnam National Tourism Administration, said tourism still had a lot of scope to grow and, would surge in the near future if there are incentives. However, tourism is not without problems, he admitted. Tourism development is not commensurate with its potentials, strengths and expectations of society. Tourism products are not really attractive. The quality of tourism services has not met the requirements. The effectiveness and efficiency of State management of tourism is not high. The environment of tourism, food safety and traffic safety remain full of inadequacies. Tourism promotions are still short of resources. Charge to promote tourism? At the conference, Vu The Binh, vice chair of the Vietnam Tourism Association, said the association had decided on a series of concrete actions to exercise Resolution 08. Its members pledge not to bring cheap travel services so as to prevent Vietnam from becoming a cheap tourist destination. Binh particularly emphasized the need to boost tourism promotions. Destination promotion is the responsibility of the State and local governments, while tour operators should take charge of the promotion of tourism products, he said. "In many other countries, enterprises have to contribute to national tourism promotion, or else they will not enjoy the fruits of it," Binh said. Echoing this view, Nguyen Quang Lan, chair of the Hanoi Tourism Association, said contributions from enterprises were vital. Moreover, for tourism promotion, there must be many representative offices of Vietnam's tourism abroad. Pham Ha, director of Luxury Travel, told the Daily that enterprises involved in outbound travel have directly or indirectly contributed to the promotion of tourism. For example, every time they attend a travel fair, enterprises must pay a sum of $2,500-3,000. On the contribution to the tourism promotion fund, Ha said that if the fund worked effectively, there would be no reason why businesses did not pay for it. Still, the promotion must benefit them with a rise in the number of visitors to Vietnam, so enterprises have income for fund contributions. http://english.thesaigontimes.vn/53374/Ways-sought-to-make-tourism-spearhead-industry.html

Vietnam and US travel societies to jointly launch tourism products 12/Apr/2017 Intellasia| The Saigon Times The societies of travel agents of Vietnam and the US signed a cooperation agreement in Hanoi last week to boost tourism by promoting destinations, launching new products and exchanging business information. The two sides agreed to exchange information on tourism events such as travel expos, road shows and other activities organised in the two countries, especially those organised by the two parties. The two organisations will also cooperate to organise tours for travel and media agencies of both countries to learn about tourism products, services and destinations. The two sides will match their members for cooperation and update each other on changes in the entry and tourism policies of the two countries. The signing ceremony took place at the Vietnam International Travel Mart (VITM) organised by VISTA from April 6 to 9. The US is a major source market for Vietnam's tourism sector. According to the Vietnam National Administration of Tourism, more than 552,000 Americans visited Vietnam last year, up 12.5 percent against the same period in 2015 and accounting for over 5 percent of all international arrivals in Vietnam. http://english.thesaigontimes.vn/53363/Vietnam-and-US-travel-societies-to-jointly-launch-tourism- products.html

Mekong Delta eyes 34 million tourists by 2020 12/Apr/2017 Intellasia| The Saigon Times The Mekong Delta is looking to attract 34 million tourists by 2020, including 3.5 million foreigners, according to a master tourism development plan until 2020 with a vision towards 2030. Under the plan, which has been approved by the prime minister, the respective figures would rise to 52 million and 6.5 million by 2030. Ha Van Sieu, deputy head of the Vietnam National Administration of Tourism, said at an event in Can Tho City last week that international tourists would come mostly from Western Europe, North America and Northeast Asia. The tourism sector in the delta is expected to achieve total revenues of VND25 trillion (US$1.1 billion) by 2020 and VND111 trillion by 2030. The delta will have around 53,000 hotel rooms, with 15 percent of them meeting three- to five-star standards by 2020. The respective numbers by 2030 would be 100,000 and 30 percent. The sector expects to create 230,000 new jobs by 2020 and 450,000 by 2030. To translate those targets into reality, the delta will have to develop signature tourism products such as houseboat life, ecotourism, cultural heritages, tours of rural areas, and historical relic sites. The plan will develop Can Tho City, and Phu Quoc Island off Kien Giang Province into two key tourism hubs for the entire delta. Meanwhile, My Tho City in Tien Giang Province will serve as a tourism centre for the eastern part of the delta. The Mekong Delta last year reported over 7.6 million visitor arrivals, a 15 percent pickup against 2015. The figure included around 900,000 foreign tourists, up 27 percent. Tourism revenues grew 12.4 percent year-on-year to VND9.7 trillion. http://english.thesaigontimes.vn/53375/Mekong-Delta-eyes-34 million-tourists-by-2020.html Kien Giang increasingly attractive to tourists 12/Apr/2017 Intellasia| VNS The southern coastal province of Kien Giang welcomed more than 1.4 million tourists in the first quarter of this year, a rise of six percent year-on-year, fulfilling over 25 percent of its yearly target. According to the provincial Tourism Department, the province served 110,730 foreign visitors, up 10 percent over the same period last year and reaching 30 percent of its target. Visitors tended to visit islands and archipelagoes in the province thanks to convenient means of travel, the department revealed, adding that tours to forests and trade villages also drew many. In the first quarter of 2017, Phu Quoc island attracted about 553,500 visitors, a surge of 82.7 percent year-on-year, including 139,000 foreigners, up 53 percent over the same time in 2016. The department attributed the success to new tourism products, including the Vinpearl Safari, the largest safari in Vietnam, international-standard golf courses, aquariums, Vinpearl Resort & Villas, Vinpearl Land and Vincharm Spa. Currently, Phu Quoc has more than 10,000 rooms serving about 20,000 visitors per day. Huynh Quang Hung, vice Chair of the People's Committee of Phu Quoc district, said the locality has attracted 250 investment projects worth VND315 trillion (US$14 billion), 192 of which have been licensed. Kien Giang aims to make tourism a spearhead sector by 2020. Along with building a trademark of Kien Giang tourism as a safe, friendly and civilised destination and Phu Quoc as a high quality eco-tourism and resort centre, the province will review its tourism planning and mobilise resources to upgrade infrastructure for major tourism regions. Nguyen Van Sau, vice director of the provincial Tourism Department, said that the province is developing four major tourism regions: Phu Quoc, Kien Luong and adjacent region, Rach Gia-Kien Hai and adjacent region and U Minh Thuong and adjacent region. Kien Giang is also implementing two sub-projects within a project launched by the Ministry of Culture, Sports and Tourism to develop tourism infrastructure supporting the development of the greater Mekong Sub-region. The project to develop infrastructure for Da Dung mountain's relic site in Ha Tien will be invested with $1.81 million, including $1.63 million from the Asian Development Bank, while the project to improve environmental conditions in Hang pagoda- Hon Phu Tu in Kien Luong will receive $7.09 million. http://www.vir.com.vn/kien-giang-increasingly-attractive-to-tourists.html

Three central localities launch shared destination brand 12/Apr/2017 Intellasia| VNS The central provinces of Thua Thien - Hue and Quang Nam, and Da Nang city jointly launched their shared destination brand "The Essence of Vietnam" in Hanoi on April 7. The event formed part of the ongoing Vietnam International Travel Mart 2017 (VITM 2017). Deputy director of the Thua Thien - Hue Department of Tourism Nguyen Van Phuc said the brand has been developed by the EU-funded capacity development programme for environmentally and socially responsible tourism in Vietnam (EU-ESRT) and the three localities. During the launching ceremony, the three localities introduced their joint products, including "the heritage road" and "the natural road". Phuc said the central coastal region is home to numerous intangible and tangible cultural heritage sites, mostly in Thua - Thien Hue and Quang Nam. They include temples and palaces of the Nguyen Dynasty in Hue ancient capital city, Hoi An ancient town in Quang Nam province, Bach Ma national park, Ba Na mountain, Son Tra peninsula and the world biosphere reserve Cu Lao Cham. The three localities signed their agreement on tourism cooperation in February 2014. Over the past years, the EU-ESRT programme have implemented various activities to assist the localities in the field, including training personnel for travel agents, raising public awareness of responsible tourism for local communities, and improving capacity of local tourism lecturers. http://www.vir.com.vn/three-central-localities-launch-shared-destination-brand.html

Supply of skilled tourism workers falls short 12/Apr/2017 Intellasia| VNS The severe shortage of qualified workers is a huge challenge to the rapidly growing tourism sector, experts warn. The sector is expected to grow at an average annual rate of 7 per cent in 2016-20, and as a result the total demand for direct human resources is expected to be a whopping 870,000 by 2020, according to the Institute for Tourism Development Research. The sector's demand for human resources will be two or three times the number needed by other major sectors such as education, health and finance. In HCM City alone, around 21,600 workers are needed every year until 2020, or 8 per cent of the total workforce, according to the city Department of Tourism. However, demand for training far outstrips the supply from training institutions. Nationally, the sector requires 40,000 workers, but the number of graduates from tourism schools is estimated at just around 15,000, of whom graduates from universities and colleges account for only 12 per cent. In short, the tourism industry faces a severe shortage of qualified workers, and this is not just in managerial positions but also tour guides, front office workers, housekeepers and bartenders. Meanwhile, travel firms complain that they have to offer further training to their workers since they are not competent enough in their job skills or foreign languages after graduating from tourism schools. HCM City's more than 50 tourism schools can meet only 60 per cent of the demand, resulting in a shortage of skilled workers, Tran Anh Tuan, deputy director of the Centre of Forecasting Manpower Needs and Labour Market Information in HCM City, said. Tran Viet Trung, director of the Khanh Hoa Province tourism department, said the local tourism sector is in dire need of senior managers. Last year the central coastal province welcomed more than one million international visitors, most of them from China and Russia, he said. Travel firms in the province are in need of 300 Chinese-speaking and 100 Russian-speaking tour guides, but only 65 and 92 respectively have been licensed. From now through 2020 the tourism industry needs 9,300 workers every year, including 8,000 at accommodation services and 1,300 for travel services. But local training institutes can only supply 2,600 a year. The short supply is expected to lead to a shortage of workers in positions such as managers, cooks, waiters and waitresses, and tour guides. With the country's integration into the Asean Economic Community, key positions in the tourism sector are more likely to be filled by foreign labourers due to the free movement of skilled and certified tourism workers across national borders, Vu The Binh, deputy director of the Vietnam Tourism Association, said. The Asean Mutual Recognition Arrangement for Tourism Professionals (MRA-TP) has increased the international mobility of tourism workers across the Asean region. The benefits of MRA-TP include improving the quality of tourism human resources and enhancing the quality of tourism products and services. "Over the next five years the country's tourism workforce needs to grow by 20 per cent annually to meet the rising demand," Binh said. The hotel industry demand is expanding by 9 per cent a year, including 16 per cent in five star hotels and 14 per cent in four-star hotels, according to the Vietnam National Administration of Tourism. As of last May the country had a total of 101 five star hotels, 229 four star hotels and 463 three star hotels. Hundreds of hotels are set to open, but find it hard to hire workers due to the scanty supply of skilled human resources. The local shortage could be mitigated by the increase in the international mobility of tourism workers from Asean, Binh said. Training reform Tourism training has to be improved in terms of both quality and quantity to provide the market with a sufficient number of qualified workers, Dao Mạnh Hung, chair of the Vietnam Association for Tourism Training, said. Only 43 per cent of the industry's workers are trained in tourism while nearly 40 per cent are unskilled, he said. Only 9.7 per cent of workers in the sector have bachelor's or higher degrees. Most fresh graduates are incompetent at communication skills and lack practical experience or foreign language skills. Tourism recruitment firms in Khanh Hoa Province said 92.3 per cent of new employees fail to meet foreign language requirements. Nearly 85 per cent of new hires need further training failing which they cannot accomplish their work. The quality of training for important positions such as senior managers, sales and marketing personnel, receptionists and housekeeping staff fail to meet the requirements of employers. Solutions The government has identified human resources development as a central component in the development of the tourism industry in the Tourism Master Plan 2011-20. As of 2015 a total of 2.25 million people worked in the tourism sector, 750,000 of them directly, according to the Vietnam National Administration of Tourism. A skilled workforce plays a decisive role in the sustainable development of the sector, Hung said. The dearth of cooperation between training institutes and enterprises in practical training is one of the major reasons for the poor quality of training, he said. Cooperation between State agencies, tourism schools and enterprises is vital to the development of qualified tourism human resources, he said. Ties between enterprises and tourism schools should be fostered for development of curriculums and placement of interns, he said. Training curriculums should be reformed based on the Vietnam Tourism Occupational Standards to ensure training quality meets the requirements of Asean. Experts said Vietnam needs to set up a national tourism professional board which will co-ordinate with the Ministry of Labour, Invalids and Social Affairs to establish national tourism occupational standards, assess and manage the quality of workforce and issue certificates. Read more at http://vietnamnews.vn/society/374395/supply-of-skilled-tourism-workers-falls- short.html#RvVjl3vHCBJ7BToo.99 vietnamnews.vn/society/374395/supply-of-skilled-tourism-workers-falls- short.html#ZPTwytMoUbPRzPDs.99

Vietnam Airlines sells cheap air tickets as aviation market heats up 12/Apr/2017 Intellasia| Vietnamnet Vietnam Airlines, the nation's flag air carrier, has decided to join hands with Jetstar Pacific to market cheap air tickets priced from VND11,000 to VND1 million for both domestic and international routes. The airline plans to launch tickets priced at VND299,000 for one-way flights on domestic routes and VND899,000 (US$39) for two-way flights on international routes. The airfares will be applied to flights with departure from April 6 to October 31, 2017 on many air routes of Vietnam Airlines. Meanwhile, Jetstar Pacific will launch special tickets at prices from VND11,000 for domestic and international flights. Vietnam Airlines has cooperated with 15 partner travel firms to market package tours with discount rates of up to 50 percent for domestic tours and 30 percent for outbound tours. Analysts said that the move by Vietnam Airlines shows its determination to retain its strength amid fierce competition from its rivals. Vietjet Air has been witnessing steady growth since it provided the first commercial flights in late 2011. The air carrier reported a high 151 percent growth rate a year in the 2012-2015 period. By the end of 2012, Vietjet held 8 percent of the domestic market share, while Vietnam Airlines dominated domestic flights with 70 percent of the market share. However, by 2015, Vietjet's market share had risen to 37.1 percent, while Vietnam Airlines' had fallen to below 47 percent. By the end of 2016, the market share of the two airlines was almost equal - 42 percent and 41 percent. With its strong growth, some analysts predicted that Vietjet would surpass Vietnam Airlines in 2017. The pressure on Vietnam Airlines has increased as Air Asia, the Malaysian low-cost air carrier (LCC), has announced it will enter the Vietnamese market by setting up a joint venture with a Vietnamese partner. Pham Chi Lan, a respected economist, once warned that if Vietnam Airlines does not cut airfares and apply flexible airfare policies, it would lose its position in the aviation market. Vietnam Airlines on March 23 proposed to the Ministry of Transport to set floor and ceiling airfares for domestic routes. The document sent to the ministry shows that Vietnam Airlines now has 13 short-distance domestic routes (less than 500 kilometers), or 26 two-way flights. Of these, only eight bring profits (30 percent), while 18 others bring losses (70 percent). Vietnam Airlines ramps up 175 flights on reunification holiday The national flag carrier Vietnam Airlines will increase 175 flights on eight domestic routes from April 27 to May 3 to meet increasing demand during the National Reunification Day and International Labour Day. The extra flights will offer 180,000 seats, rising 25 percent against normal days and 15 percent from the same period last year. The additional flights are on routes connecting cities with big demand for travel such as Hanoi and HCM City with major tourist destinations including Danang, Nha Trang and Phu Quoc. Of which, the Hanoi/HCM City- Danang will have the most added flights with over 100 trips, followed by Hanoi/HCM City- Phu Quoc island with 40 trips and Hanoi/HCM City- Nha Trang with 18 trips. According to a representative from Vietnam Airlines, tickets are on sale as usual and updated continuously. english.vov.vn/economy/vietnam-airlines-sells-cheap-air-tickets-as-aviation-market-heats-up-347325.vov

Tan Son Nhat airport to expand this October 12/Apr/2017 Intellasia| VNS A joint venture has been proposed with the Airport Corporation of Vietnam (ACV) to invest and construct new terminal T4 for the Tan Son Nhat International Airport. Da Nang International Terminal Investment and Exploitation Joint Stock Company (AHT) and Thang Long Infrastructure Investment Joint Stock Company (TJC) will be part of the venture. Airport operator ACV has proposed to the Ministry of Transport (MoT) an investment plan to build the T4 terminal through the privatisation model. The AHT-TJC alliance will partner with ACV to launch a project company to construct the terminal with investment capital of some VND4 trillion (US$177 million). If the proposal is approved by the MoT, the company will be set up in June this year, paying adequate equity as prescribed, completing the signing of the credit contract for the project prior to commencement and ensuring all conditions are met to start the project in October and it can come into operation before the 2019 lunar calendar. The project to expand the T4 terminal of the Tan Son Nhat International Airport has attracted a number of large investors, such as Imex Pan Pacific Group and Atad Steel Structure Corporation. Vietjet Aviation Joint Stock Company was the first applicant to bid for construction of the T4 terminal, which will handle 10 million passengers annually, on a 21ha area next to the apron. The airport, which was designed to have a capacity of 25 million passengers per year, handled 32 million last year, thus exceeding its capacity. It has been growing at 30 per cent annually and this growth is expected to continue for the next three years. It needs to be upgraded to handle between 40 and 50 million passengers each year, deputy prime minister Trinh Dinh Dung said during a meeting between the government and local administrations at the beginning of this year. bizhub.vn/news/tan-son-nhat-airport-to-expand-this-october_285427.html

Vietstar licensing put on hold 12/Apr/2017 Intellasia| VN Economic Times Licensing of carrier must wait for completion of upgrades at HCM City's Tan Son Nhat Airport, PM decides. Vietstar Airlines will have to wait until the construction of an additional passenger terminal and aprons at Tan Son Nhat International Airport are completed before receiving a business license. Prime minister Nguyen Xuan Phuc recently sent documents to the Ministry of Transport on the licensing of Vietstar Airlines to provide passenger and cargo services. After consulting with ministries, the prime minister decided that the granting of a business license to Vietstar Airlines will be decided upon after the expansion of the passenger terminal and aprons, under a plan approved previously by the government. As VET reported at the time, the government last year gave in principle approval for Vietstar Airlines to provide passenger and cargo services. Pham Trinh Phuong, CEO of Vietstar Airlines, confirmed with Thoi bao Kinh te Vietnam, VET's Vietnamese-language sister publication, that it had met all requirements relating to capital to provide passenger and cargo services and had received in principle approval and was waiting for final approval. Vietstar Airlines was established in 2010 by the Ministry of Defense, with stakeholders including the Aircraft Repairing Company A41, the Vietnam Air Force, Vietstar Airways, and the Tin Thanh Express Company. Once granted a business license, Vietstar Airlines would become the fifth carrier in Vietnam, joining Vietnam Airlines, Jetstar Pacific, Vietjet Air, and the Vietnam Air Services Co. (VASCO). The six-year-old carrier, which currently has a fleet of five passenger aircraft and two cargo aircraft, including Boeing 737s and Airbus 320s, is expected to carry 500,000 passengers and transport 32,000 tonnes of cargo during its first year of operation. It is expected to focus on domestic routes between northern and southern Vietnam as well as routes to northeast and southeast Asian countries. AirAsia also recently announced its entry into Vietnam's aviation market through an agreement with the Hanoi-based Gumin Co., Hai Au Aviation, and businessperson Tran Trong Kien, CEO of the Thien Minh Group. The venture, expected to begin flights in early 2018, will need investment of VND1 trillion ($44 million), with AirAsia contributing 30 per cent and Gumin around 70 per cent. Vietnam's aviation market grew 29 per cent last year, with passenger numbers reaching 52.2 million, the Civil Aviation Authority of Vietnam said. Low-cost carriers served 55 per cent of passengers on domestic trips. vneconomictimes.com/article/business/vietstar-licensing-put-on-hold

500 exhibitors to attend Expo 2017 12/Apr/2017 Intellasia| VNS he 27th Vietnam Expo, scheduled to take place April 19-22 in the capital city, assumes added significance given the "special context" in which it is happening, organisers say. Bui Huy Son, head of the Trade Promotion Department under the Ministry of Industry and Trade, said the event was being held "in the special context of the country actively pushing ahead with international economic integration, hosting the Asia-Pacific Economic Cooperation (Apec) 2017 and celebrating the 25th anniversary of diplomatic relationship with South Korea." Appropriately, the Vietnam International Trade Fair 2017 (as the event is also known) carries theme "Strengthening Regional and International Economic Links," he noted. The expo will gather more than 500 exhibitors from over 23 countries and territories, including leading economies from Asia, Africa, South America and Europe. Some 600 booths will display a diverse range of products including industrial machinery and equipment, construction materials, electronics, information technology, beverages, healthcare products and services. Vietnam Expo 2017 has been organised annually for more than two decades. It has become the largest and most significant event for the nation's industry and trade sectors, generating more economic benefits and opportunities for local firms to expand export as well as domestic markets. Son said that the event will contribute to the nation's global integration process. 'Honoured nation' South Korea, as a "honoured nation" at Vietnam Expo 2017, will bring in 130 companies taking up 138 display booths, he added. Among other things, the Korean companies will present electrical and electronic products, cosmetics, smart toys and processed food. These products belong to the category that will have tariffs cut under the Vietnam-Korea FTA signed in 2015. Park Chul Ho, general director of the Korea Trade-Investment Promotion Agency (Kotra) in Hanoi, said Vietnam Expo 2017 would not only be a platform for Korean businesses to sell and introduce their products, but also an opportunity for promoting investment cooperation and technology transfer between enterprises of both countries. Several activities on the sidelines of the expo, including the Vietnam Exports Promotion Forum, fact- finding tours to industrial zones, policy consultancy, capacity-building for enterprises in terms of marketing and promotion strategies, will provide added value to participants, organisers said. Vietnam Expo 2017 is a collaborative effort involving the Ministry of Trade and Industry, the Vietnam National Trade Fair and Advertising Company (Vinexad) and other agencies. It will be held at the Hanoi International Exhibition Centre, 91 Tran Hung Dao, Hoan Kiem District, Hanoi. bizhub.vn/news/500-exhibitors-to-attend-expo-2017_285436.html

Outstanding farm produce at City fair 12/Apr/2017 Intellasia| VNS Outstanding farmers in HCM City and many other provinces are showcasing their products at a fair that opened at Le Văn Tam Park in the city's District 1 on Monday. The "Achievements of excellent farmers in the integration time - Urban agriculture and business matching in the south-eastern region 2017" fair features 300 booths, half of them set up by the farmers, provincial farmers associations and traditional craft villages. All outstanding farmers honoured by the Vietnam National Farmers Union (VNFU) in recent years and model agricultural cooperatives have been offered booths for free to enable them to show off their produce. According to the VNFU, finding reliable outlets for their products is always a major concern for farmers and cooperatives. The exhibition offers a good platform for farmers, localities, and local and foreign companies to meet, discuss and foster cooperation, boosting economic development of the south-eastern region, Nguyễn Hồng Ly, deputy chairwoman of the VNFU, said. Lưu Quang Dịnh, editor-in-chef of Nong Thon Ngay Nay (Countryside Today) newspaper, said through the fair farmers would have a chance to access new production technologies. To week-long event will also feature a ceremony to honour outstanding farmers and entertainment events. The fair is organised by Countryside Today along with the city Department of Agriculture and Rural Development and other departments and organisations. vietnamnews.vn/economy/374501/outstanding-farm-produce-at-city-fair.html#3pbmhQXHDusfI9j9.97

Vietnam beats Brazil to top global coffee exports in March 13/Apr/2017 Intellasia| Vnexpress Vietnam exported 2.8 million bags of coffee last month, topping Brazil's shipments of 2.71 million bags. Vietnam exported 168,000 tonnes, or 2.8 million bags, of coffee last month, beating the world's biggest producer Brazil to become the world's largest exporter of the commodity for the second time in a year, based on industry reports. The March outflow from Vietnam, already the world's largest producer of the robusta variety that's used mainly for making instant coffee, fell nearly 7 percent from the same month in 2016, Vietnam Customs data showed. However, it was the highest shipment Vietnam has loaded on a monthly basis since April 2016. Meanwhile, Brazil exported 2.71 million bags of coffee in March, including 2.32 million bags of arabica, 20,626 bags of conillon - a robusta variety - and 343,278 bags of instant coffee, based on data from the Brazilian Coffee Exporters Council. One bag weighs 60 kilograms. Brazil is dealing with a domestic coffee shortfall due to a smaller robusta crop, and at one stage in February had planned to import the commodity, probably from Vietnam. While higher yield could raise the country's arabica output in the 2016/2017 crop to a record 45.6 million bags, robusta production could drop to a 10-year low of 10.5 million bags "due to above-average temperatures and prolonged dry spells in the main growing region," the US Department of Agriculture said. Vietnam also briefly seized the crown as the world's largest coffee exporter in April last year, a ranking it managed to hold through July 2016, based on monthly customs data and the Brazilian council. The March 2017 shipment brought Vietnam's total coffee exports to 834,100 tonnes for the first half of the 2016/2017 crop year, up 2 percent from a year ago and the highest volume in three crop years, based on Vietnam Customs data released on Monday. Vietnam's coffee crop year lasts between October and September. Traders in Vietnam said the country's faster export pace in the current season was due to stockpiling by international trading firms and roasters due to an anticipated smaller harvest this year in export rival Indonesia and falling shipments in recent months from Brazil. The faster shipping pace and dwindling domestic stocks could prompt Vietnam to face a shortage in May-June, top exporter Intimex said last month. e.vnexpress.net/news/business/vietnam-beats-brazil-to-top-global-coffee-exports-in-march-3569431.html

Vietnam looks abroad for infrastructure investors 13/Apr/2017 Intellasia| Nikkei Government appeals to Japanese businesses for money and know-how Facing fiscal constraints, Vietnam is turning to foreign enterprises for funding and expertise as it anticipates the need for $400 billion in infrastructure spending over the next decade. Planning and Investment minister Nguyen Chi Dung told The Nikkei that Hanoi is already in the process of crafting a legal framework to pave the way for foreign participation in building projects. The country plans to tap the public-private-partnership format. Its first target is the construction of some 1,800km of highway connecting Hanoi and HCM City, the country's largest-scale road yet at a maximum of 10 lanes. The $13 billion-plus route could alter distribution for the Indochinese Peninsula as a whole. Vietnam "has many critical infrastructure projects planned, and a PPP setup will be indispensable," Dung said, adding that the nation seeks help from foreign businesses "primarily in Japan." The minister is visiting Japan through Saturday, meeting with cabinet ministers and inviting business leaders to participate in the partnerships and develop more Vietnamese factories. Dung's ministry is central to the ongoing process of crafting related legislation, such as for allocating risk and profit. It aims to finish up within the year, with input from Japanese businesses. Dung said he wants to help Japanese companies "feel secure in participating" in the projects. Vietnam plans to make the roadway public-private partnership a model for its many other infrastructure plans, including Long Thanh International Airport in the south, high-speed railways, metro-area transit systems and power stations. The format should minimise government outlays and allow for the absorption of know-how from participating businesses. The country has so far funded much of its infrastructure with official development assistance, mostly in the form of international loans, saddling the government with a great deal of debt. Its proportion of sovereign debt to gross domestic product came to 64.7 percent in 2016 - just shy of the 65 percent cap set by the National Assembly. In November, amid economic troubles, Vietnam suddenly halted nuclear projects it had ordered from Japan and Russia. Akio Mimura, chair of the Japan Chamber of Commerce and Industry, visited Vietnam in January. "I understand Vietnam's government wants to use public-private partnerships," he said, "but if the benefits of investing [in the project] are not made clear, private businesses will be hesitant." More Asian countries, including Thailand and the Philippines, are launching public-private partnerships, often because they are heavily indebted and purse strings are tight. These are used for a wide range of infrastructure projects, including railways, airports and distribution networks. The Asian Development Bank last year began offering intermediary services for governments and businesses embarking on PPPs together. Government appeals to Japanese businesses for money and know-how But given their scale, the partnerships take a long time to deliver investment returns, and yields are tough to estimate. Governments also hold great sway over profit allocation and regulations, so private enterprises tend to have the lower hand and often find their development restricted. Vietnam's regulations tend to be vague, and its authorities have broad discretion - often a recipe for bribery. The success of public-private partnerships here will likely hinge on how well legislation can clarify opaque rules. http://asia.nikkei.com/Politics-Economy/International-Relations/Vietnam-looks-abroad-for- infrastructure-investors

Vietnamese enterprises see sharp profit fall 13/Apr/2017 Intellasia| DTI News Vietnamese enterprises saw a sharp decrease of profits in the 2010-2015 period compared to the previous five years, according to the general Statistical Office (GSO). The information was released at a press conference in Hanoi on April 11. The GSO under the Ministry of Planning and Investment reported that the average profit growth of Vietnamese businesses between 2010 and 2015 was only 7.5 percent annually against the rate of 24.1 percent in the 2005-2010 phase, representing a fall of 60 percent in profits. In the 2010 - 2015 period, Vietnamese firms' taxes paid to the state budget annually increased by 11.6 percent on average, lower than the rate of 21.1 percent of between 2000 and 2010. The GSO reported that the investment also decreased by 25 percent per year on average in the 2000 - 2010 period, compared to just 14 percent of from 2010 to 2015. Pham Dinh Thuy, a representative from the GSO, said that the Vietnamese economy has seen a fast development but lacked efficiency. Up to 97 percent of Vietnamese businesses have small and medium- sized scale. Among those, nearly 60 percent of companies have less than 10 employees with out-of-date technologies. In the first quarter of this year, Vietnam licensed 26,478 new businesses in the first quarter of this year worth VND271.2 trillion (USD12.3 billion). The number of newly-licensed enterprises in the January- March period increased 11.4%, compared to the same period of last year, while the capital increased 45.8%. However, GDP growth between January and March slowed down at 5.1%, compared to 5.48 percent during the same period in 2015 and 6.12 percent of 2015. According to the GSO, it was partially because many newly-established businesses have not yet been operated or operated with very low revenues. http://www.dtinews.vn/en/news/018/50384/vietnamese-enterprises-see-sharp-profit-fall.html

Profit growth rate at Vietnamese businesses decreases 60pct after 5 years 13/Apr/2017 Intellasia| Tien Phong On April 11th, at the press conference announcing some indicators which reflect the development situation of businesses in 2016, the general Statistical Office (Ministry of Planning and Investment) said that the growth of corporate profits for the period 2010-2015 was 7.5%, equaling to 1/3 of the period 2005- 2010 (reaching 24.1%). Thus, after 5 years, the growth rate of corporate profits decreased nearly 60%. To explain this, Pham Dinh Thuy, general director of Industrial Statistics (General Statistical Office) said that in the period 2010-2015, the global development crisis caused Vietnamese businesses to suffer many impacts, production and business was ineffective. The government had many policies to support businesses such as exemption from certain taxes; extension of corporate income tax payment. The total before-tax profit of the corporate sector in 2015 was 552.7 trillion dong. In the period 2000- 2015, profit of the corporate sector hiked 19 percent each year, lower than the increase of capital at 22.8 percent and of revenue at 21.6%. "The profit is low and the indicators highly increase because Vietnamese businesses and the economy are developing fast and strongly but mainly in capital and labour. Over 97 percent of small and medium-sized enterprises have small scale, backward technology resulting in low profits. That is the health of Vietnam's economy and businesses", said the representative of the general Statistical Office. Regarding to the sharp increase in the number of newly-established businesses against slower GDP growth, a representative of Ministry of Planning and Investment said that this was due to new the fact newly established businesses often did not start their business immediately, then they have not yet contributed to QI/2017 GDP. Furthermore, according to the general Statistical Office, 59 percent of businesses established in 2016 have not had revenue. Up to now, there are only 570,000 businesses operating and contributing to the economy.

Domestic businesses eye rural retail market 13/Apr/2017 Intellasia| VNA Domestic businesses are seeking to develop the rural retail market given fierce competition from foreign rivals, according to Cong Thuong (Industry & Trade) newspaper. Vietnam was listed among the world's 30 most attractive retail markets by the US's AT Kearney Company. Statistics from the Ministry of Industry and Trade showed that foreign-invested companies make up about 17 percent of retail market share via trade centres and supermarkets and 70 percent via convenience stores. President of the Vietnam Retailers Association Dinh Thi My Loan said the Vietnamese retail market has become more attractive since the country signed free trade agreements Some foreign firms have increased their engagement in the race to dominate retail in Vietnam. For example, Aeon - a Japanese retail giant, has opened four trade centres in Vietnam and plans to increase this number to 20 by 2020. Japan's 7-Eleven convenience store chain also announced plans for stores in HCM City last February. Other overseas groups such as Lotte of the Republic of Korea and Central Group of Thailand have expanded their market share in Vietnam and plan to double and triple their number of stores in the upcoming years. Therefore, the expansion of goods distribution in rural areas is considered a way for domestic companies to increase competitiveness. Director of the Business Studies and Assistance Centre Vu Kim Hanh said rural areas have high potential. If domestic companies don't seize the chance to dominate this segment, foreign retailers will make use of it, she added. Vo Van Quyen, head of the Domestic Market Department under the Ministry of Industry and Trade, said the golden population structure and increasing local income are attractive factors of the rural market. Average purchasing power in rural areas has grown 15 percent in recent years, he said, adding that Vietnamese retailers could secure the rural market by selling products at reasonable prices. To dominate this market, Vingroup plans to open an additional 70-80 supermarkets and 1,500 stores in remote districts. Meanwhile, the Saigon Union of Trading Cooperatives (Saigon Co.op) has built a strategy to make inroads into the rural market via selling essential commodities at supermarkets and convenience stores. http://english.vov.vn/economy/domestic-businesses-eye-rural-retail-market-347455.vov

4th industrial revolution a big opportunity for VN 13/Apr/2017 Intellasia| VNS The fourth industrial revolution is an important opportunity that Vietnam must quickly take advantage of in order to accelerate the process of industrialisation and modernisation, towards its goal of becoming a modern industrial country, said Ho Thị Kim Thoa, deputy minister of Industry and Trade. The Ministry of Industry and Trade organised the "Industrial Revolution 4.0 Forum" in Hanoi yesterday to provide enterprises and organisations with an overview of the advancements being made and the influence these would have on Vietnam's development strategies. The fourth industrial revolution is blurring the gap between the real world and the virtual world through advanced technologies and innovation, said the deputy minister. In particular, the influence and spread of this revolution was taking place on a global scale and was forecast to change systems of production, management and administration worldwide, she added. Meanwhile, Tran Dinh Thien, director of the Vietnam Institute of Economics, said that there would be a great opportunity for us to move forward and lead the way during the fourth industrial revolution. "Having a unique, distinctive and feasible approach will help Vietnam take advantage of the opportunities from the fourth industrial revolution to make a breakthrough," Thien said. However, deputy minister Thoa also noted that if the country did not have clear objectives and suitable approach and participation through economic restructuring, education reform and science and technology development, the pressure of the fourth industrial revolution would be very hard on Vietnam. On the other hand, Thien pointed out the two biggest challenges facing Vietnam, by explaining that the country was having to both catch up with global integration while also having to compete with other countries to develop. Therefore, the director of the Vietnam Institute of Economics recommended that Vietnam develop suitable digital strategies, adopt smart governance policies, while building a digital connection infrastructure, digital workforce, digital technology industry, smart agriculture, smart tourism, smart urbanisation and innovative ecosystems and start-ups. Speaking at the forum, Louise Chamberlain, country director of UNDP Vietnam, said that the fourth industrial revolution was of such great interest because it represented both fundamental opportunities for rapid human progress, but also considerable challenges. "Events like today's forum are critically important, because the impacts of the fourth industrial revolution and their scale are not yet well understood. Even studying this subject is challenging because the complexity of assessing the impacts is tremendous. The difficulty lies not only in the technology breakthroughs I mentioned, but in their interactions with our ideas and systems governing economic and social development; also value creation, privacy and ownership, and even how we see individual identity," she added. The move towards higher productivity and social resilience were among the most immediate and useful steps to closing the knowledge gap that Vietnam's sectors, subsectors and enterprises face in enhancing their productivity and competitiveness, she said. This requires a more granular study of emerging technology systems and their implications for improving value chains, said the UNDP representative. http://vietnamnews.vn/economy/374500/4th-industrial-revolution-a-big-opportunity-for- vn.html#1hv6qGQR7vZF2gsM.97

Solutions sought to develop herbal medicinal materials 13/Apr/2017 Intellasia| VNA Prime minister Nguyen Xuan Phuc has urged ministries, sectors and localities to seek measures to promote traditional herbal medicines, thus taking advantage of the country's potential in the field. Addressing a teleconference with leaders of 63 cities and provinces nationwide held in the northern province of Lao Cai on April 12, the PM noted that for thousands of years, Vietnam has used herbal medicines to protect people's health. With three quarters of its natural area being mountains and forests, Vietnam has more than 5,000 precious herbal plants with medicinal values, which are a great advantage for localities to exploit the resources for domestic use and exports, he said. PM Phuc affirmed that traditional medicines are a treasure of the country, which can contribute to poverty reduction and prosperity. He asked for solutions to tackle problems facing the sector, including poor planning in developing production chains that leads to low effectiveness and small-scale production as well as difficulties in markets, risk of extinction of many rare herbal plants and limited research and use of advanced technology in the field. The government leader also suggested support policies for herbal plant growing as part of high technology agriculture development, while stressing the need to ensure confidentiality of some rare and precious herbal plants. According to the Institute of Medicinal Materials, Vietnam has 5,117 herbal plants and fungus, along with 408 species of animals and minerals used as materials for nearly 1,300 traditional remedies. The domestic demand for herbal medicinal materials is about 60,000-80,000 tonnes per year, mostly for producing foods, medicines and cosmetics. The Ministry of Health assessed that the economic value of herbal plants is much higher than other food plants, suggesting that sustainable growing will help reduce poverty for many regions across the country. en.vietnamplus.vn/solutions-sought-to-develop-herbal-medicinal-materials/110118.vnp

Central Highlands develops large-scale cattle farming 13/Apr/2017 Intellasia| VNA The Central Highlands provinces have transformed cattle farming from a traditional, extensive grazing smallholder system to a more intensive, large-scale production to improve income of many local ethnic minority households. According to the Central Highlands Steering Committee, Dak Lak, Gia Lai, Kon Tum, Dak Nong and Lam Dong have taken the advantage of favourable weather condition and large areas for growing forage crops and launched a number of incentives to facilitate the development of stall-fed cattle farms. The provinces now have thousands of cattle farms breeding more than 100 cows or buffaloes each. Many smallholder families from the ethnic minority groups have no longer raised one or more cattle in the traditional extensive grazing production mostly for home consumption or asset accumulation. They have increased their farm size to dozens of cattle with stall feeding and shifted to growing foreign breeds with higher meat yield, for example, Zebu originating in South Asia. This has helped improve the efficiency and quality of cattle production, thus lifting them out of poverty. Cattle farming accounted for approximately 81 percent of the total value of the Central Highlands region's breeding industry and grew at an average pace of more than 7.1 percent annually. It earned the region over VND25 trillion (US$1.1 billion) in 2016, with the largest earners being Dak Lak, Lam Dong and Gia Lai. The region is home to more than 962,000 cattle, including about 862,000 cows. http://english.vov.vn/economy/central-highlands-develops-largescale-cattle-farming-347466.vov

Traders not buy rice despite price reduction in Mekong Delta 13/Apr/2017 Intellasia| Saigon-gpdaily Farmers have slowed harvest of ripening winter spring rice in the Mekong Delta because unseasonable rains have caused many areas fall to the ground and prices have dropped continuously for the last couple of days. According to Nguyen Cong Ly, owner of a combine harvester establishment in Cao Lanh district, Dong Thap, the price now drops to VND4,400 a kilogram of normal rice, VND4,900-5,000 a kilogram of fresh long grain rice and VND5,200 a kilogram of fragrant varieties. The prices reduce by VND400-600 a kilogram on average compared to that in the early of the winter spring crop. Talking to Sai Gon Giai Phong Newspaper yesterday, Ly said that many traders left their deposits, refusing to buy ready to harvest rice to mitigate losses. Le Van Hoang from Phuong Thinh commune, Cao Lanh district said that traders left the deposit of VND200,000-300,000 a hectare they paid formerly to buy long grain rice at the price of VND5,400 a kilogram. Farmers have been seeking consumption sources accepting low prices to reduce losses. Some traders in Dong Thap, Vinh Long and Tien Giang provinces say that five percent broken rice price now approximates VND6,700 a kilogram, 25 percent broken rice is sold at VND6,500-6,600 a kilogram. These prices are not high but businesses have slowed buying, resulting in traders' purchase reduction. The Ministry of Agriculture and Rural Development reports that the Mekong Delta has harvested over 1.2 million hectares of winter spring rice out of the total of 1.5 million hectares. Productivity reaches 6.4- 6.5 tonnes a hectare. In addition, local famers have sown over 450,000 hectares of summer autumn rice crop as per plan. Last month, businesses exported nearly 419,000 tonnes of rice worth $186 million, taking the total number since early this year to one million tonnes worth $472 million. http://www.saigon-gpdaily.com.vn/Business/2017/4/124027/

Vietnam's Q1 coffee exports to India cool after brief trade row over pests 13/Apr/2017 Intellasia| Vnexpress The first-quarter slowdown follows an annual surge of 67 percent for the whole of last year. Vietnam, the world's largest robusta exporter, shipped 7,700 tonnes of the commodity to India in the first quarter of this year, a drop of 35 percent from the same period last year, following a brief trade row last month, Vietnam Customs data shows. On March 1, the Vietnamese government gave a warning saying it would suspend imports of five Indian agricultural commodities in 60 days, citing a peanut beetle problem. On March 7, India slapped an immediate ban on imports of six commodities from Vietnam, including coffee, citing pest infestations. Traders and Vietnamese industry officials said India's reaction was only a 'tit-for-tat action' and that the restrictions would be short-lived. But the back-to-back bans have prevented Indian roasters from securing coffee beans while pepper prices in Vietnam have dropped to multi-year lows. The bitter coffee variety from Vietnam is used mainly for making instant coffee. In late March both sides removed the bans following talks between government officials, but Vietnam's coffee exports to the South Asian nation with a fast expanding coffee demand have suffered. India is home to the world's third-fastest growing retail coffee market after Indonesia and Turkey, while Vietnam ranks fourth, according to Mintel, a global market intelligence agency. In the first three months of last year alone, Vietnam exported 11,900 tonnes of coffee to India, a surge of 43 percent from the same period in 2015, while shipments in the whole of 2016 soared 67 percent to 45,800 tonnes, based on Vietnam Customs data released on Monday. India produced an estimated 5.33 million bags (320,000 tonnes) of coffee in the 2016/2017 crop year, down 8 percent from a year ago, according to the International Coffee Organisation's estimates as of January 2017. India's coffee consumption in the current season ending September 2017 is forecast to edge up 2 percent from the previous 2015/2016 season to 1.4 million bags, the US Department of Agriculture said. e.vnexpress.net/news/business/vietnam-s-q1-coffee-exports-to-india-cool-after-brief-trade-row-over- pests-3568448.html

Vietnam moves ceiling price mechanism for dairy products 13/Apr/2017 Intellasia| VNS The government removed price ceilings on dairy products for children under six from April 1, 2017 according to the Ministry of Industry and Trade's proposal. The government has direct the ministry, other ministries and related agencies to manage prices of dairy products for children under six according to the Law on Price and other legal documents. They were also told to enhance State management in price control, anti-speculation and monopoly controls. After three years of use, the mechanism had many limitations so abolishing the mechanism was necessary and suitable with price management measures in a market economy, reported Tin tuc (News) newspaper. Experts said after removing the ceiling price mechanism, the State should encourage competition and a healthy business environment. They also suggested the State regulate the price if a firm gains a monopoly of dairy products or if dairy firms violate the Law on Competition. The most important task of the price management agency should be to follow the development of factors used to calculate the selling price. The agency should manage the prices of dairy products according to market rules, the experts said. Price ceilings were put in place in May 2014 by the Ministry of Finance. At the end of the second quarter of 2015, the ministry extended the price ceiling to March 1, 2017. The Ministry of Finance's Pricing Management Department said after stabilising milk prices, the prices dropped by between 0.1 per cent and 34 per cent for milk products for under six year-olds. Experts said in the short term, buyers have enjoyed lower prices thanks to the price ceiling. But in the mid and long term, the mechanism would hinder the development of milk firms and reduce competition. They said the price ceiling for dairy products of children under six would not be for the long term because Vietnam signed free trade agreements that forbade it from using price ceilings to manage the market. At present, 877 milk products for children under six have their prices listed on the websites of the finance ministry and local finance departments across the nation. http://vietnamnews.vn/economy/374412/viet-nam-removes-ceiling-price-for-dairy- products.html#Zfo5AwmUuORCtfBf.99

Vietnamese cosmetics less favoured as foreign products dominate market 13/Apr/2017 Intellasia| Vietnamnet Vietnam is a large cosmetics market with turnover of $1.1 billion last year, but there is now little room for Vietnamese manufacturers. vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, cosmetics, FTA, Asean The founder of La House, a cosmetics brand, has complained about the difficulties of opening shops at large shopping malls. The owners of malls refuse to lease retail premises to made-in-Vietnam cosmetics brands even before hearing about the brand's history, achievement and financial capability. They said they wanted to reserve retail premises for international prestigious brands which will be more favoured by Vietnamese. Vietnamese pay high prices for foreign cosmetics, but ignore Vietnamese-made products even if they are much cheaper. My Secret is one of the very few Vietnamese cosmetics brands becoming better known as its products are made of organic oil. However, many consumers still hesitate to buy My Secret products. A My Secret lipstick is sold at VND500,000, equal to the price of a made-in-Korea lipstick. However, to Vietnamese, VND500,000 is too much for a Vietnamese product. Christie Ho, a co-founder of Skinna, also a Vietnamese brand, conducted a mini survey and raised a question: "What if Skinna is made in the US and imported to Vietnam with the selling price 20-30 percent higher? Will this change your thoughts about Skinna?" The founders of La House, My Secret and Skinna, three Vietnamese brands, still continue to popularise Vietnamese products in the Vietnamese market but have found it difficult. The art of marketing Vietnamese cosmetics brands were once famous 20 years ago. Thorakao was one of them but the brand has fallen into oblivion since foreign brands have penetrated the domestic market. Only middle-aged women now favour Thorakao's products, which are made of natural materials. Analysts commented that Vietnamese brands like Thorakao can conquer Vietnamese hearts with their high-quality organic products as consumers now favour products made of natural materials. However, the key is in marketing. A branding expert said he was surprised when visiting the website of Ngoc Lan Cosmetics and found that 'co Lan' (Ms Lan), the image representing the brand, is an older woman. This, plus weak advertising campaigns in the domestic market and poor design, all make Ngoc Lan cosmetics less attractive in consumers' eyes, though Ngoc Lan cosmetics exports are welcomed in the world market. http://english.vietnamnet.vn/fms/business/176216/vietnamese-cosmetics-less-favoured-as-foreign- products-dominate-market.html

Business Briefs April 13, 2017 13/Apr/2017 Intellasia | * Vietlet Aviation Company (VIC) plans to seek approval from its shareholders to lift the foreign ownership limit to 49 percent from the current 30%. This, according to the company, will increase the firm's stock liquidity and enhance its ability to raise capital further. The low-cost airline will hold its 2016 annual general meeting on April 20. VIC also plans to issue employee stock ownership plan (ESOP) shares from 2017 to 2019 with an expected value of no higher than 3 percent of chartered capital at the time of issuance a year. * Vietnam Dairy Products Company (VNM) has predicted its revenue will reach VND80 trillion by 2021, implying a compound annual growth rate of 11 percent over the fiscal period from 2016 to 2021, according to Viet Capital Securities Company. VNM plans annual growth of at least 10 percent in domestic revenue, while overseas revenue is expected to rise faster as VNM projects its overseas revenue will contribute 25 percent to its total revenue in 2021, up from 19 percent in 2016. Regarding capital expenditure, VNM plans to spend a total of VND 17 trillion in the next five years, mostly on dairy farms and capacity expansion. First, VNM aims to have 44,400 cows by 2021 compared to the current 17,500, which will increase its self-supply to 38 percent of total domestically sourced raw milk in 2021 against the present 30 percent (the rest comes from local farmers). Second, VNM expects to broaden its production capacity by 70 percent in 2021 compared to 2016. * Transport and Industry Development Investment Ioint Stock Company has applied to trade 32.4 million shares on the HCM City market. * Vietnam ational Seed Corporation ( SC) targets net profit ofVND 194.6 billion in 2017, up 11 percent from the previous year. Its revenue is set to reach VND 1.5 trillion, increasing 14%. In addition, NSC plans to pay a dividend of30 percent for 2017. * Bao Viet Insurance Corporation and Audi Vietnam inked a cooperate deal yesterday to provide insurance service for Audi cars used for serving the Asia-Pacific Economic Cooperation (Apec) forum in 2017. * Long Viet Investment Management Company has bought 540,000 shares of VNECO 1 Electricity Construction Company (VEl) to hold an 18.4 percent stake.

Coal revenue increases in Q1 13/Apr/2017 Intellasia| VNS Vietnam National Coal and Mineral Group (Vinacomin) reported a total revenue of VND24.554 trillion (US$1.1 billion) in the first quarter of this year, a year-on-year increase of 104 per cent, equivalent to 23 per cent of the target set for the whole year. The group sold 8.6 million tonnes of coal in the first quarter, with 185,000 tonnes being shipped overseas. Vinacomin had set a production target of 3.2 million tonnes of raw coal and sales of 3.45 million tonnes (3.32 million tonnes for domestic use and 130,000 tonnes for export) in April. Earlier during an online conference on production management for April 2017, Vinacomin's director general Dang Thanh Hai urged departments and units to be more active while executing their assigned jobs. Specifically, it is necessary to actively work with households to unify the reasonable price of coal, strengthen resource management and product quality, reduce 5 per cent loss from mining exploitation compared to the previous year, and tighten the mine acceptance test and technological norms, while strengthening the management of mine boundary resources and the process of coal transportation and consumption, he said. It is also necessary to ensure stability, optimise the technical criteria, meet the quality standards, and fulfil customer requirements, besides having strict controls to ensure environmental safety, as well as operate production-consumption in accordance with the market movements and enhance product consumption, Hai added. vietnamnews.vn/bizhub/374485/coal-revenue-increases-in-q1.html#OI15PbITiwyGX35T.97

US authorises import of fresh star apple fruit from Vietnam 13/Apr/2017 Intellasia| VNA The Animal and Plant Health Inspection Service (APHIS) of the US Department of Agriculture authorised imports of fresh star apple fruit from Vietnam into the country from January 19, 2017. Based on the findings of a pest risk analysis published in the July 19, 2016 Federal Register, the APHIS determined that if treated properly, Vietnamese star apples can be shipped safely to the continental US. The analysis indicated that the use of one or more phytosanitary measures would be sufficient to mitigate the risks of introducing plant pests or noxious weeds through star apple imports. APHIS offered a period of 60 days for public comment which ended on September 19, 2016 and it received one comment from a manufacturing company during the period. The company said fresh star apple should be allowed to be treated with irradiation after arriving in the US. APHIS argued that while an approved irradiation treatment may be conducted for any import either prior to shipment to the US or in the US, the particulars of any treatment are examined on an individual basis as part of a country's market access request. In the request by the national plant protection organisation of Vietnam (NPPO), it stipulated that fresh star apple fruit be subject to a pre-clearance programme within Vietnam. Considering this request, APHIS determined that Vietnam possesses sufficient infrastructure for in-country treatment. The analysis also indicated that the fruit must be individually wrapped in plastic prior to shipment to reduce the risk of post-treatment re-infestation. APHIS determined that individual wrapping provides equal phytosanitary protection to insect-proofing cartons and pallets as described in US regulations. In addition, the fresh star apple fruit from Vietnam must be imported in commercial consignments only and each consignment must be accompanied by a phytosanitary certificate issued by the NPPO of Vietnam and treated in accordance with Title 7 Part 305 of the US Code of Federal Regulations. Each consignment is also subject to inspection upon arrival to the US. The US has to date allowed imports of five fruits from Vietnam, namely dragon fruit, rambutan, lychee, longan and star apple. It has been considering allowing imports of Vietnamese fresh mangoes. http://en.vietnamplus.vn/us-authorises-import-of-fresh-star-apple-fruit-from-vietnam/110115.vnp

Tax dept vows to collect tax from sales on Facebook 13/Apr/2017 Intellasia| Vietnamnet The HCM City Taxation Department has drawn up a plan to cooperate with agencies to collect tax from sales via social networks. Nguyen Thi Nga of Hanoi was worried after she heard that sellers via Facebook will have to pay tax. Nga, who is now on maternity leave, sells food and meals she makes via Facebook. The monthly income, according to Nga, is modest, because she can only make dishes during her free time. If she has to pay tax, she may stop selling via Facebook, because she is just a petty trader (big orders have value of VND100,000 only) and the income from sales is not that attractive. Trang, the owner of a shop on Facebook which sells Japanese products with relatively high monthly revenue, also said she may shift to a new business because the profit would fall significantly. Meanwhile, taxation bodies have affirmed that they will collect tax from sellers via social networks. Trade carried out on Facebook has boomed over the last few years, but the State still has no way of collecting tax on the activities. The products traded via Facebook are mostly cosmetics, clothes, functional foods and liquor. They bring high profits because they bear high official import tariffs, and the demand is high. The HCM City Taxation Department said it had completed planning on collecting tax from sales via Facebook and will submit the plan to the HCM City People's Committee in early April. Ngo Tri Long, a renowned economist, also said sales and trade must be taxed. "If the state does not tax sales via Facebook, it will not only lose money for the state budget, but also create an unfair climate among businesses," he said. Long commented that in order to collect tax, it is necessary to identify the revenue, costs and nature of the businesses. However, it is easy to delete traces of activity online. In other countries, buyers make payments via banks, so it is not difficult to identify the revenue from online business. Therefore, it is necessary to apply measures to encourage Vietnamese to use non-cash payment methods for online transactions. Vo Do Thang, director of Athena, a network security centre, said before collecting tax from sellers via Facebook, taxation bodies need to show what they can do to support businesses. "Support' here means ensuring safety for online business. As for Facebook, the data is in the server located overseas. Will the taxation bodies come forward and protect businesses if Facebook changes algorithms without warning." http://english.vietnamnet.vn/fms/business/176212/tax-dept-vows-to-collect-tax-from-sales-on- facebook.html

Prudential Vietnam named leading life insurer 13/Apr/2017 Intellasia| VN Economic Times Insurer receives Golden Dragon Award from VET as "Vietnam's Leading Life Insurance Company". Prudential Vietnam has been honored with a Golden Dragon Award as "Vietnam's Leading Life Insurance Company" from Thoi Bao Kinh Te Vietnam (Vietnam Economic Times). This is the 14th time Prudential Vietnam has received the prestigious award for foreign-invested enterprises in Vietnam. As "Vietnam's Leading Life Insurance Company", Prudential Vietnam continues to affirm its leading position in the field of insurance and actively contributes to the country's socioeconomic development. Its leading position is evidenced by its outstanding business results, financial strength, and excellent financial services, which are key criteria in the Golden Dragon Awards. The award also recognises the strong development of Prudential, with more than 300 general agent offices and customer service centers around the country, and its efforts to develop and improve product quality and services to meet the needs and expectations of customers. "The Golden Dragon Award 2016 is in recognition of Prudential Vietnam's success and non-stop efforts," said Steve Clark, CEO of Prudential Vietnam. "Throughout its development, Prudential aims to improve people's lives by providing safe and effective financial solutions. This award will drive us to continually improve the quality of our products and services based on the principle of understanding the market and meeting the changing needs of our customers. With a strategy of customers being a core value, I believe that Prudential Vietnam will continue to develop and maintain its leading position in Vietnam's life insurance market." With the strategy, Prudential has applied a perfect service model at its agents to improve the quality of services and take full advantage of its information technology applications to bring the best experience to customers. The model has been developed and deployed at hundreds of Prudential offices nationwide, creating trust among and making an impression on customers. In addition to its success in business and its efforts to improve product and service quality, Prudential Vietnam also demonstrates its corporate social responsibility via community activities. In 2016, it contributed VND39 billion ($1.7 million) to three major areas: Education, Public Health and Community Support. Vietnam Economic Times' Golden Dragon Awards and Vietnam Excellent Brand Awards were initiated in 2001 to recognise and encourage enterprises that have recorded outstanding achievements. Recognition is considered from many perspectives, such as production and business activities, service provision, the application of technological solutions for environmental protection, the full implementation of tax obligations, ensuring employee rights, and actively participating in community activities. Prudential entered Vietnam in 1995 with a representative office and began operations in 1999. As a leading life insurer in the country, it operates the most extensive nationwide distribution network, comprising seven bank partners and over 300 customer service centers and branch offices in Vietnam's 63 cities and provinces. http://vneconomictimes.com/article/business/prudential-vietnam-named-leading-life-insurer

Truong Hai's 2016 revenue up 43pct 13/Apr/2017 Intellasia| VN Economic Times Auto company earns nearly $1 million in after-tax profit every day. The Truong Hai Auto Joint Stock Company (Thaco) has recently released its audited consolidated financial statements for 2016, revealing that Vietnam's largest automobile company recorded net revenue of VND59.2 trillion ($2.61 billion), an increase of VND17.7 trillion ($780.7 million) compared to 2015, or a 43 per cent increase. Revenue growth was equivalent to growth in vehicle output (40 per cent), reaching more than 112,847 vehicles, an increase of 32,400 vehicles against 2015. Its growth was much higher than the 30 per cent average among members of the Vietnam Automobile Manufacturer's Association (VAMA) during the year. Although Thaco's revenue and sales volume increased 40 per cent, its pre-tax-profit rose only 15 per cent, from VND7.4 trillion ($326.4 million) to VND8.53 trillion ($376.3 million). After-tax profit was approximately VND8 trillion ($352.9 million), for an average of nearly $1 million each day. Excluding minority interests, Thaco's net profit came in at VND7.9 trillion ($348.5 million), equivalent to an earnings per share (EPS) of VND19,372 ($0.85). Its after-tax profit was lower than at other listed companies, such as Vinamilk (VND9.4 trillion, or $414.6 million) and far behind large companies like GAS, Vietcombank, Hoa Phat, BIDV, Sabeco, Masan, and Vingroup. Two years ago its profit was growing in the triple digits. As at the end of 2016, its total assets and equity were VND53.9 trillion ($2.38 billion) and VND23.3 billion ($1.03 billion), respectively. Last year it outlaid VND8.2 trillion ($361.7 million) to raise its stake in the Dai Quang Minh Real Estate Joint Stock Company, the investor of the Thu Thiem Sala urban area project in HCM City, from 45 per cent to 90 per cent. Consisting of Thaco KIA, Thaco Bus, Thaco Truck, VinaMazda, and Peugeot, Thaco now accounts for 41.5 per cent of VAMA members' sales. This year it has a relatively low growth target of 118,000 units, up 5 per cent compared to 2016. http://vneconomictimes.com/article/business/truong-hai-s-2016-revenue-up-43

Humax opens R&D centre in Hanoi 13/Apr/2017 Intellasia| VN Economic Times South Korean consumer electronics maker selects Hanoi's west as site of new centre. South Korean electronics company the Humax Co., Ltd has officially opened a new research and development (R&D) centre in Vietnam. The centre is located in Handico Tower in Hanoi's South Tu Liem district. Savills Vietnam was engaged to provide research-supported advice, insight, and guidance to facilitate Humax's business expansion strategy. Park Yohan, Finance manager at Humax Asia Pacific, said that as Vietnam is a market of potential in the region, it decided upon Hanoi for a representative office in Hanoi in 2015 and two years on it is time to expand. "Humax believes that the opening the new R&D centre will provide a good platform to attract young intellectual resources," he added. Hoang Dieu Trang, Senior manager of Commercial Leasing at Savills Hanoi, said that the west of Hanoi is a vibrant area with increasing demand from major IT and electronics companies seeking large floor areas at reasonable prices. "Humax is a South Korean electronics company and their acceptance of Savills' recommendation of Handico Tower for establishing their exciting new R&D centre is a great example of this growing trend," she said. The latest Savills's report showed that, since 2015, Hanoi's west is rapidly becoming a preferred business location for domestic IT, telecoms, and foreign technology companies seeking industrial-scale buildings with competitive overheads, easy accessibility, and full facilities. Fulfilling these requirements against a backdrop of increasing rental costs has become increasingly difficult in the capital, presenting challenges for prospective tenants and building owners and companies are increasingly moving to the west as a result. Samsung and Viettel are now both located in the area. The office segment in the west has limited Grade A vacancies and secondary Grade A occupancy is sharply increasing as a result of landlord incentives, according to Savills. Grade A outpaced Grade B, with a vacancy rate of just 6 per cent in the west. Humax is a South Korean consumer electronics company founded in 1989 and manufacturing set-top boxes, digital video recorders, and other consumer electronics. http://vneconomictimes.com/article/business/humax-opens-r-d-centre-in-hanoi

KVIP struggles with lack of machinery 13/Apr/2017 Intellasia| The Saigon Times The Korea Vietnam Incubator Park (KVIP) is facing difficulties as the amount of $5 million pledged by South Korea for investment in machinery and equipment for its operations has not been fully disbursed. KVIP director Pham Minh Quoc said the Korean side originally promised to invest $5 million in machinery and equipment for KVIP operations. "However, late last year, at a joint committee meeting between Vietnam and Korea, they announced Korea's National Assembly had terminated the project, so only $2 million had been spent," he told the Daily on the sidelines of the meeting between the government of Can Tho City and KVIP on April 11. Due to the lack of machinery and equipment, KVIP is experiencing certain hardships during its operations. "At present, deputy prime minister Vuong Dinh Hue has asked the Ministry of Science and Technology to seek funding to partly support the park," said Quoc. KVIP is currently managed by the Department of Industry and Trade of Can Tho in the vertical hierarchy, since the Ministry of Industry and Trade was originally responsible for working with Korea on this project. However, as KVIP is facing the problem mentioned above and most of its operating expenses are in the field of science and technology, the project is being considered for transfer to the Can Tho Department of Science and Technology. To limit the difficulties, Can Tho vice chair Truong Quang Hoai Nam asked KVIP to review its equipment and machinery and issue regulations on coordination, sharing equipment and machinery between KVIP and the nurseries of Can Tho University and some other units. This is aimed to utilise mutual resources, avoid overlapping investment and waste, and partly resolve the current difficulties of KVIP, said Nam. KVIP is required to complete the coordination regulations in May. Regarding technology transfer, in the first two years, Korea sent experts to Can Tho for assistance in management and operation of equipment, which was already done. "We are proposing Korea supply three other experts, including a mechanical specialist, an expert in agricultural product processing and one in seafood processing, which are the major operations of KVIP. Currently, the Korean party is considering this proposal," Quoc said. So far, five enterprises have been selected to operate in KVIP, the director informed. They are Nhat Viet, Hoang Thang, Pham Nghia T&N, Calevy Rice Milk and Vietnam Nestling, whose products are fish meal, sowing machines, fried fish balls with salted egg, rice milk and herbal bird's nest respectively. KVIP covers over 4.5 hectares in Tra Noc 2 Industrial Park in O Mon District, Can Tho City. The total investment in this project is more than $21 million, including $17.7 million of Korean grants (of which $5 million is set aside for machinery and equipment) and over $3.4 million from the annual budget of Can Tho. http://english.thesaigontimes.vn/53432/KVIP-struggles-with-lack-of-machinery.html

Audi Vietnam provides cars serving Apec 2017 13/Apr/2017 Intellasia| VNA Carmaker Audi Vietnam handed over the first batch of 131 cars to the National Committee on Apec 2017 on April 11, while the rest 186 others are scheduled to be delivered to the committee in July. As asked by the committee, Audi, which has been chosen as the major car sponsor of Apec 2017, will also provide additional 72 Audi cars to serve the event. According to the brand, the cars are imported into Vietnam via HCM City's port and are transported to Hanoi by trucks and train. The limited editions of Audi to be used at the event include Audi A4 2.0 TFSI, A6 1.8 TFSI, Q7 2.0 TSFI quattro and the newly introduced A5 Sportback 2.0 TFSI quattro and Q5 TFSI quattro. Special options for the cars have been carefully chosen by the National Committee on Apec 2017. Audi Vietnam provided training for 600 drivers from Vietnam's security force. The first group of 300 drivers took a course in Hanoi from March 27-April 1 and the rest was trained from April 3-8 in Bac Giang. Many activities and events are scheduled to take place in Vietnam as it is hosting the Apec Year 2017 under theme "Creating new dynamism, fostering a shared future." The Apec forum includes 21 members - Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the US and Vietnam. http://english.vov.vn/economy/audi-vietnam-provides-cars-serving-apec-2017-347401.vov

Bao Viet official insurer of Audi fleet for Apec 2017 13/Apr/2017 Intellasia| VN Economic Times Two sides sign agreement that further cements their already-strong cooperative partnership. Continuing the series of cooperative activities during 2017 between Bao Viet Insurance and Automotive Asia (Audi Vietnam), the official Audi importer in the country, the two have signed a comprehensive agreement that makes Bao Viet Insurance the official insurance provider for the Audi fleet to be used during Asia-Pacific Economic Cooperation (Apec) 2017, the 25th such summit and to be held in central Da Nang city in November. This latest cooperation is within the roadmap of both Bao Viet Insurance and Auto Asia to become comprehensive partners, bringing bilateral benefits and contributing to enhancing the competitive advantages of both. The Audi fleet will be used during Apec 2017 to welcome State leaders from 21 member economies within the Asia-Pacific region, 2,000 ministers and high-ranking officials, 3,000 journalists and reporters, and 5,000 businesses. The contract is an important event between the two sides. Auto Asia will have priority in using all Bao Viet products and services, including asset insurance, motor vehicle insurance, and construction insurance, among others. Bao Viet Insurance commits to providing high quality products and services at preferential rates for Auto Asia and other members of Audi Group's network. Bao Viet also prioritises Auto Asia by introducing insurance products and services to the latter's customers at preferential rates. With a long-term goal of sustainable development, Bao Viet Insurance has continued to prove its brand and post solid business results. It retained its No.1 position within the non-life insurance segment last year, with total revenue of VND6.56 trillion ($289.6 million) and profit of VND301 billion ($13.3 million); the highest of all non-life insurers. From 2016 to early 2017, it opened another eight subsidiaries, expanding its network to a total of nearly 80, along with more than 300 insurance offices and 30,000 agencies nationwide, shoring up its position as possessing the largest network in the country to serve and interact with customers. Furthermore, its 24/7 customer service centre and specialised insurance management software has helped it manage its customer database and ensure transparency in insurance activities. Auto Asia was selected by the Apec 2017 National Committee as the official car sponsor for Apec 2017. The German group has produced limited edition models for the event, such as the Audi A4 2.0 TFSI, the A6 1.8 TFSI, the Q7 2.0 TFSI Quattro, and all-new A5 Sportback 2.0 and Q5 2.0 TFSI quattro. Special equipment to be used during Apec 2017 was carefully selected by the National Committee. Audi Group is famous within high-end vehicle segment for brands such as Audi, Lamborghini, and Ducati. It has a presence in more than 100 countries and production bases at 16 locations in 12 countries. Last year it increased deliveries of its core brand, Audi, by 3.6 per cent, to a record 1,867,738 motor cars. Globally, it has 85,000 employees, 60,000 of whom are German. Through this contract signing, the two sides restate their relentless efforts to bring new experiences to customers and ensure the greatest satisfaction with their products and services while adding more valuable benefits for customers of both. http://vneconomictimes.com/article/business/bao-viet-official-insurer-of-audi-fleet-for-apec-2017

Uber Ridesharing Pilot Programme gets green light 13/Apr/2017 Intellasia| VN Economic Times Permission marks a milestone for ride-sharing app in Vietnam and reflects government's forward thinking. The Ministry of Transport (MoT) has given approval to Uber to conduct a Ridesharing Pilot Programme in Vietnam. This is a significant milestone for Uber in Vietnam and reflects the progressive stance of the government in embracing new technologies and new business models during the Industrial Revolution 4.0 and its recognition of the positive contribution ridesharing can bring to its economy and society. Dang Viet Dung, general manager of Uber Vietnam, said that securing MoT approval marks an important step forward for the company and will encourage it to continue renovating technologies and provide convenience and benefits to users and drivers in major cities around the country. MoT previously declined to approve Uber Vietnam's request to pilot an IT upgrade for its services. It has rejected the company's pilot project on two previous occasions: in November 2015 as the company had not founded an appropriate legal entity in Vietnam, and earlier this year because the project was not in compliance with established laws. Vietnam has a fast-growing economy and a young population. Since the Uber app was launched, the level of technology and innovation adoption has been remarkable, according to Dung. "Vietnamese have always been forward-thinking, inclusive, and quick to embrace new ideas and innovative technology," he went on. "We're very pleased to see how the app has influenced drivers and passengers in Vietnam." At the CEO Forum entitled "Industrial Revolution 4.0 - Gain & Lose" hosted by Vietnam Economic Times on April 7, Dung said that the substance of the fourth industrial revolution is the convergence of econophysics, digital economics, and biologics, based on the foundation of artificial intelligence. This will certainly alter the industrial sector in the future, he added. Uber's growing presence in over 450 cities in 70 countries ensures overseas visitors have a familiar and safe way to explore Vietnam and visit a broader and more diverse range of neighbourhoods. Uber has connected HCM City with international passengers from 66 countries and Hanoi with passengers with 62 countries. An Uber user in the US, for example, can book an Uber ride in Vietnam for a friend and the two can see the trip updated via smartphone. It entered Vietnam in July 2014. Late last year Vietnam became the first country in Southeast Asia to launch cash payments and since then a significant proportion of fares have been paid for by cash. uberMOTO was also launched earlier this year, providing motorbike taxis with lower fares. http://vneconomictimes.com/article/business/uber-ridesharing-pilot-programme-gets-green-light

Uber's permission from ministry not yet a call for celebration 13/Apr/2017 Intellasia| VIR Judging by the barrier that Grab encounters in Danang, the recent approval by the Ministry of Transport is not yet a clear step forward for Uber. The Ministry of Transport has approved Uber Vietnam's pilot project of applying technology in managing and connecting contracted passenger transportation. Deputy minister of Transport Nguyen Hong Truong said on April 10 that Uber Vietnam had met the requirements of the ministry to carry out such a scheme. However, Uber Vietnam would need to get the necessary approvals from local authorities where the company has registered its operation. Grab secured the same approval in October 2015 to carry out a similar pilot project in two years, but at the moment, Danang is still banning it. On April 9, newspaper tuoitre.vn reported that Yen Hock Lim, Grab's representative in Vietnam, submitted a petition to prime minister Nguyen Xuan Phuc asking for interference in Danang, so that Grab can continue operating in the city. As of mid-March, Danang, the most popular tourist destination in Vietnam, said it was still waiting for guidance from the Ministry of Transportation regarding Grab's operation here. In the meantime, the earlier order from the Traffic Safety Committee of Danang outlined in Document 57/CV-BATGT on preventing the operation of GrabCar and Uber in the city, remains valid. In the document, the committee asked that the City Department of Information and Communications order Internet and mobile service providers to prevent mobile phones from accessing the Grab and Uber apps, and that the city police and the City Department of Transport work together to find and punish people and organisations that are providing illegal services through these apps. Lim said that the ban is not only inappropriate in light of the government's resolution on supporting companies from now to 2020, but also in light of the 2005 Law on Competition. On April 7, as reported by the Guardian, in a ruling that is subject to appeal, a court in Rome upheld a complaint filed by taxi unions and banned Uber because it contributes to unfair competition. The court gave Uber ten days to end the use of its various phone applications on Italian territory, along with their promotion and advertising. If Uber does not comply, it could face a fine of 10,000 euros ($10,600) for each day it remains in defiance of the court. Uber said in a statement that it would appeal. In a related development, Uber is returning to Taiwan, with a redesigned model that the company said would be legal this time. Earlier on February 2, Uber announced halting operations in Taiwan, claiming an "impasse" with authorities that deem the ride-hailing app illegal. The Taiwanese Ministry of Transportation and Communications had requested the company to register as a taxi company instead of a technology company in order to operate legally there. http://english.vietnamnet.vn/fms/business/176397/uber-s-permission-from-ministry-not-yet-a-call-for- celebration.html

Traditional taxi operators want fair competition with Uber, Grab 13/Apr/2017 Intellasia| The Saigon Times Representatives of local taxi enterprises have proposed State agencies should take appropriate steps towards foreign ride-hailing firms like Uber and Grab in order to create a level playing field, heard a dialogue held by Phap Luat newspaper on April 11. Pham Minh Suong, deputy general director of taxi operator Mai Linh Group, suggested ride-hailing services like Uber and Grab should be managed and treated as traditional taxi firms to ensure fair competition. He said traditional taxi firms wishing to change their fares must notify State management agencies in advance, and then adjust fare meters among others. Meanwhile, ride-sharing services are free to change them multiple times a day. Vinasun Corporation's deputy general director Truong Dinh Quy claimed Uber and Grab have plans to dominate the local passenger transport market. They are making life difficult for domestic taxi enterprises, leading to a decline in the number of vehicles and their drivers quitting jobs. He said local taxi firms require fair competition with tech-based rivals. This means Uber and Grab should be subject to the government's conditions such as the number of licensed vehicles, fare registration and management as those applied to traditional taxi firms. Nguyen Ngoc Giao, deputy head of the Transport Department's transport management, said the master plan for citywide taxi service has been affected by the operation of ride-hailing apps. The transport department capped the number of taxi cabs on the road at 11,000 due to overloaded traffic infrastructure, lack of parking lots, narrow roads and frequent traffic congestion. However, the number of private minicabs, mostly offering transportation services via these apps, had reached more than 21,000 as of end-February, compared to over 9,400 vehicles last August. http://english.thesaigontimes.vn/53434/Traditional-taxi-operators-want-fair-competition-with-Uber- Grab.html

World top IT experts gather in IT conference 13/Apr/2017 Intellasia| VNS Vietnam will present 30 reports - out of 125 total from 25 countries and territories - on information technology to the 7th International Conference on Information Science and Technology (ICTST) in Da Nang on April 16-18. Deputy Rector of Korea-Vietnam Friendship Information technology College, Tran The Son said at a press conference yesterday that it's the first time the conference has been held in Vietnam. It's one of the biggest meet ups for top professors and scientists in IT, allowing universities to share research on smart systems, education and IT applications. Son said the conference, which is hosted by the college and the City University of Hong Kong with the technical sponsorship of the Institute of Electrical and Electronics Engineers (IEEE), aims to boost cooperation among Vietnamese IT scientists and their global peers. "It's the largest number of reports sent by Vietnamese IT scientists among seven conferences since 2011," Son said. "The conference will be chaired by Professor Sam Kwong from the City University of Hong Kong with the participation of three key speakers - Gary G Yen from the US, Zongben Xu from China and Hong Yan from Hong Kong - and others from Macao, Italy and the US," he said. He said Vietnamese reports mostly focus on big data, databases, visible light communications and wireless sense security communications networks and computer science. Son also said more than 1,300 critics will review the 125 reports during the two-day conference. Nguyen Quang Vu, deputy dean of IT faculty of Korea-Vietnam Friendship Information technology College, said there will be 12 sessions on topics including computer science, control and automatisation system technology, digital signal processing, IT in biology and biomedical engineering, speech coding, unsupervised learning and brain computer interfaces. He said international experts will also discuss the robot industry, smart production, navigation, smart systems in health care sector as well as car and motor sense control. Vu said all reports will be announced on the database of IEEE. Last year, the Vietnam-Korea Friendship Information Technology College and Poland's Wroclaw University of Technology also co-hosted the 8th Asian Conference on Intelligent Information and Database Systems. In 2015, Da Nang also held the annual 2015 Asean Telecommunications and IT ministers Meeting for the first time. The Da Nang-based college, built in 2007 with initial funding of $10 million from the South Korean government, has been a major training centre for skilled IT workers and technicians. www.vir.com.vn/world-top-it-experts-gather-in-it-conference.html

Almost all pick-up trucks come from Thailand 13/Apr/2017 Intellasia| The Saigon Times Nearly 100 percent of completely-built-up (CBU) pick-up trucks, which can be used to carry both goods and passengers, on Vietnam's market are imported from neighbouring Thailand. According to data of the general Department of Customs, in the year to March 15, Vietnam had imported 3,900 pick-up trucks worth $76 million, up 0.8 percent in volume and down 1.7 percent in value compared to last year. Imports from Thailand accounted for 99.6%. On average, the price of pick-up trucks imported to Vietnam is slightly more than $19,000 a unit, excluding taxes. Most popular made-in-Thailand models sold in Vietnam are Isuzu D-Max, Mitsubishi Triton, Nissan Navara, Toyota Hilux, Ford Ranger, Mazda BT 50 and Chevrolet Colorado. Pick-up trucks have been the key products of Thailand and the main means of transportation for many Thai families. Thailand is also the largest exporter of pickup trucks in the world today. In Vietnam, pick-up trucks have a better competitive edge than other kinds of autos since import tax applied to CBU pick-up trucks from Asean countries is 5 percent currently, compared to 30 percent for other automobiles. Besides, many people choose pick-up trucks for their versatility and convenience. According to the general Department of Customs, pickup trucks imported to Vietnam increased sharply in both volume and value in the period 2010-2016. Specifically, Vietnam imported 29,900 pick-up trucks in 2016, a ten-fold increase over 2010. Although Vietnam is forecast to be a big market for pick-up trucks in the near future, it is unlikely for the Vietnamese auto industry to manufacture this product. The reason is that the import tax on CBU pick-up trucks is low, currently at 5%, and will be 0 percent next year, so most auto manufacturers have not planned to assemble this kind of vehicle in Vietnam. http://english.thesaigontimes.vn/53433/Almost-all-pick-up-trucks-come-from-Thailand.html

Singaporean IT companies seek cooperation opportunities in Vietnam 13/Apr/2017 Intellasia| VIR International Enterprise (IE) Singapore, the Singaporean government agency promoting international trade and partnering Singapore companies in going global, is working to build a bridge between Singaporean and Vietnamese companies in the information technology (IT) sector. With the growing interest of Singaporean companies in Vietnamese high-tech and start-up ecosystems, Tan Soon Kim, assistant chief executive officer of IE Singapore who oversees the agency's international operations for Southeast Asia and Oceania, North and South Asia, North America and Western Europe, came to Vietnam in the first week of April to assess the potential and growth opportunities of the Vietnamese technology and start-up market. During the trip to Vietnam, Tan met the leaders of the Ministry of Science and Technology and Ministry of Industry and Trade to discuss the connection between Singaporean and Vietnamese companies in the technology sector. At the same time, he also spent some time with potential start-up companies such as Tiki, Haravan, Giaohangnhanh, Circo Co-working Space. Tan suggested that IE Singapore can assist them in connecting with the Singaporean partners. During the trip, Tan also paid a visit to VNG. After the discussion with Nguyen Hoanh Tien, vice president of operations at VNG Corporation, and listening to VNG's history of development, corporate culture and products, Tan said, "I was really inspired by your story. VNG is not just an IT or tech company, but to me it's very much a lifestyle company, and you've successfully created so many services and products that has integrated the real aspects of living. Overtime, it will probably become indispensable and every Vietnamese will probably have a VNG app in their phones." "I think the willingness to learn, to be open and to look for partnership is critical to scale up globally. In my opinion, VNG has successful ingredients already and very soon you'll be a global player," Tan said at the end of the trip. VNG has been exporting its services and application software to some foreign countries. One year ago, in March 2016, VNG introduced its social network Zalo to Myanmar. From June to October 2016, Zalo gained 2 million users in Myanmar. "If developed well, Myanmar would become as lucrative a market as Vietnam. Zalo's long-term goal is to have 9-10 million users," said VNG deputy director Vuong Quang Khai. VNG aims to become an internationally competitive IT enterprise. In 2012, VNG exported its games "Sky Garden" and "Oink" to the Chinese and Japanese markets. Notably, the online game "Sky garden" was awarded "Most innovative foreign game" after three months launching in the Chinese market. http://www.vir.com.vn/singaporean-it-companies-seek-cooperation-opportunities-in-vietnam.html

Mobile network operators compete in tight 4G race 13/Apr/2017 Intellasia| Vietnamnet After four months of deploying 4G on a trial basis in large cities and provinces, mobile network operators are hurrying to complete the infrastructure system to officially provide services throughout the country. Experiments have shown that 4G internet access speed is 50-80 Mbps on average, or 7-10 times higher than 3G. This is the reason that mobile network operators have proposed using 4G sooner than initially planned by the watchdog agency. Soon after getting operation licenses, three largest network operators - Viettel, MobiFone and VinaPhone - geared up for 4G deployment. Tao Duc Thang, deputy CEO of Viettel, the military telco, said Viettel has nearly completed the installation of 36,000 4G stations within six months. The network operator is believed to have the highest number of 4G stations among the three big telecom players. It is also developing infrastructure items to get ready for longer-term strategy - deploying 5G and 6G in upcoming years. VinaPhone initially planned to begin providing 4G in a large scale in late March. However, it has changed the plan, though the preparatory works have been completed. Planning to set up 21,000 4G stations by the end of 2017, VinaPhone said it would focus on urban areas. Meanwhile, MobiFone and Gtel, which have also got licenses for 4G deployment, are quiet amid the preparation by their rivals. Though affirming that it will begin providing 4G services throughout the country soon, MobiFone has declined to say when. A MobiFone representative said 4,500 4G stations have been set up, while in 2017, it would install 8,000 stations in 53 provinces and cities. In the immediate time, it would focus on setting up stations in Hanoi, HCM City, Hai Phong, Can Tho and Da Nang. Analysts commented that the 4G competition among network operators is different from the 3G ones launched in 2009-2010. At that time, as both VinaPhone and MobiFone belonged to VNPT, they had advantages in infrastructure and 'opened the games'. Only half a year later, did Viettel join the playing field, where there were other players such as EVN Telecom and Vietnamobile. The service fee was the major 'weapon' in the competition. However, competing in service fee and coverage area is no longer the strategy pursued by network operators, but they will have to compete in quality because the telecom market is different from it was 7-10 years ago. An expert said 4G deployment will succeed only if customers have constant high speed connections. www.vir.com.vn/mobile-network-operators-compete-in-tight-4g-race.html

Apple takes actions on unauthorised VN shops 13/Apr/2017 Intellasia| VNS Apple Inc's legal representative in Vietnam, VOTRA Co Ltd, recently sent documents to Vietnamese phone stores on their illegal use of the brand's trademark on shop banners and advertisements without Apple's permission. The Apple legal representatives mentioned stores using the "half-eaten apple" logo, trademarks "Apple", "iPhone" or other names such as "Apple Store", "App Store", "iPad", "iPod" and "MacBook", which are protected in Vietnam. The Vietnamese representative of the US technology company requested the stores stop using Apple's trademark within seven days of receiving the letter. VOTRA also asked the stores to stop selling fake products under the Apple brand name. Apple has increased its presence in Vietnam since the end of 2015 when opening an office in HCM City. In 2016, Apple hired VOTRA as its legal representative. Nguyen Ngọc Duy My from attorney office TriLaw in HCM City told news website ndh.vn that under Article 123 of Vietnam's Intellectual Property Law 2005, trademark owners have the right to use, allow or prevent others from using their trademark. "Because of these rights, if Apple did not give written permission to allow others (in this case Vietnamese stores) to use its trademarks, these stores do not have the right to use them in any form," said My. The representatives of TriLaw also noted that just because a store sold Apple products did not mean they could use Apple's trademarks without written consent. In term of fines, the lawyer said shops could be fined from VND500,000 (US$22) to VND250 million ($11,000) depending on the level of their violation, business scale and commodity value. Violators could also receive other punishments such as business suspension from one to three months, material confiscation, or be forced to destroy the infringing goods, she added. bizhub.vn/news/apple-takes-actions-on-unauthorised-vn-shops_285471.html

PVN wants to expand cooperation with Japanese partners 13/Apr/2017 Intellasia| VNA The Vietnam National Oil and Gas Group (PVN) hopes to expand ties with Japanese partners. PVN leaders made the assertion during their working sessions with Tokyo Gas, Sumitomo, Jogmec, and Eni. from April 6-7 while attending the Gastech Exhibition & Conference held in Tokyo, Japan, from April 4-7. The event allowed the PVN to boost cooperation in the field of oil and gas as well as exchange experience with foreign partners and update information on Liquefied Natural Gas (LNG), advanced science and technology and new trends in the global gas industry. Phan Ngoc Trung, a member of Board of directors of PVN, delivered a speech at the LNG Procurement Forum, highlighting LNG imports in the gas industry's development plan. The biennial Gastech Exhibition & Conference was first held in 1972. This year's event drew nearly 200 speakers and 2,500 delegates. http://en.vietnamplus.vn/pvn-wants-to-expand-cooperation-with-japanese-partners/110117.vnp

Foreign exhibitors flock to food, hotel expo 13/Apr/2017 Intellasia| VNS The biennial Food & Hotel Vietnam, the country's leading international food and hospitality trade exhibition, which is held in April, has attracted many exhibitors from around the world seeking to tap the promising Vietnamese market. This year's event will have more than 10,000sq.m of space and feature more than 520 local and international exhibitors from 31 countries and territories, BT Tee, general manager of UBM VES, one of the expo's organisers, said. It would also feature 20 international group pavilions, the highest number ever, he said. There would be a wide range of food and beverage products, including fresh fruits and fruit products, meat, poultry, seafood, tea, coffee, food ingredients and additives, milk and dairy products besides equipment and services for the food and hospitality industry, he said. The expo will also see culinary and barista competitions, conferences on hotel investment and business in Vietnam and other topics. Briefing the press in HCM City on April 12, Tran Viet Dung, deputy director of VCCI Exhibition Service Co., Ltd, the local organiser of the event, said Vietnam's population of more than 90 million make the food and beverage sectors appealing to local and international investors. The sectors are expected to maintain an annual growth rate of more than 10 per cent through 2020, he said. With the tourism industry in robust health, the number of foreign visitors keeps rising, increasing demand for hospitality and food equipment and services, he said. Didier Lachise, general manager of New Viet Diary, a distributor for several global food industry players, said his company would exhibit more than 500 products from around 20 countries at the show, including organic food products. Global organic consumption has increased strongly in recent years and the trend would continue, he said. Food & Hotel Vietnam 2017 will be held from April 25 to 27 at the Saigon Exhibition and Convention Centre bizhub.vn/news/foreign-exhibitors-flock-to-food-hotel-expo_285469.html

Over 140 trillion VND for North-South expressway's first phase 13/Apr/2017 Intellasia| VNA More than 140 trillion VND (6.2 billion USD) will be used for the first phase construction of the North- South Expressway linking Hanoi and HCM City. The State will fund about 55 trillion VND (2.4 billion USD) for the 684 kilometre road in the first phase, which will be carried out from 2017-2022. Four-lane roads with 17 metres in width will be built for Mai Son (Ninh Binh)-Bai Vot (Ha Tinh) and Cam Lam (Khanh Hoa)-Phan Thiet (Binh Thuan) sections under the public-private partnership (PPP) form and Cam Lo (Quang Tri)-La Son section (Thua Thien-Hue) under the build-transfer (BT) form. The Phan Thiet (Binh Thuan)-Dau Giay (Dong Nai) section will also have four lanes, 25 metres in width and be constructed under the PPP form. About 688 kilometres of roads are expected to be built in the second phase from 2023-2028 at a cost of more than 103 trillion VND (4.5 billion USD). The construction of the third phase will be carried out after 2028 with investment of over 69 trillion VND (3.04 billion USD). http://en.vietnamplus.vn/over-140 trillion-vnd-for-northsouth-expressways-first-phase/110116.vnp

HCM City to set up business support centre 13/Apr/2017 Intellasia| The Saigon Times The HCM City government intends to set up a business support centre that will carry out a survey of business bottlenecks every six months, as one of the solutions to improve its Provincial Competitiveness Index (PCI). The city last year moved down from the 6th to the 8th place in the PCI rankings of the Vietnam Chamber of Commerce and Industry (VCCI), says a report by the HCM City Department of Planning and Investment at a meeting on PCI improvement on April 11. Five component indicators in the PCI reading of the city fell. Transparency fell from 6.51 to 6.5 points as businesses believed documents related to State management activities were not readily available, and the link between enterprises and State agencies was not strong enough. The indicator of fair competition recorded a drop from 4.28 to 4.13 points, with respondents saying the municipal authorities still favour foreign-invested enterprises (FIEs) and State-owned enterprises (SOEs) over others. The active government indicator declined from 4.19 to 4.17 points. Meanwhile, the indicator of business support services went down from seven to 6.82 points and that of the legal environment slid from 5.04 to 4.25 points. In terms of transparency, many investors are now expressing their interest in the city, but municipal agencies are not really helpful, said Nguyen Hoang Minh, deputy director of the Department of Planning and Investment. For example, regarding access to land, when businesses need land to expand their production, they look for equal government support regardless of the type of enterprise. Thus, it is not right to let private firms say the municipal government favours FIEs or SOEs, Minh said. HCM City vice chair Tran Vinh Tuyen said that although the city's access to land indicator improved in 2016, there is still the state of people asking or even giving bribes for land planning quotas. In the coming time, it should be all made public to citizens. On informal charges, Tuyen suggested city departments and districts strengthen their dialogues with enterprises, encourage them to abandon corrupt practices, since a healthy clean government needs joint efforts from both authorities and society. In addition, the city will accelerate online public services that reduce direct contact between civil servants and citizens as well as businesses in an attempt to prevent harassment and bring down informal costs. Meanwhile, to better the indicator of fair competition, the city is looking to build a centre for entrepreneurship that will assist enterprises in investment and guide them to do business in all fields. This centre will also offer consultancy, help foreign enterprises directly contact the city's policies and planning to facilitate their investment, and act as a bridge between investors and policies as well as planning in an open and transparent manner. Moreover, the city will study the formation of its own survey with the criteria suitable for the city. The survey will be conducted every six months, starting early this June (by the HCM City Institute of Economics), which will poll both domestic and foreign investors concerning the issues of their concerns such as taxation, publicity and transparency of planning and procedures. "We should make State agencies a place for enterprises to rely on rather than their obsession when they want to do business here," Tuyen said at the meeting on April 11. http://english.thesaigontimes.vn/53418/HCM City-to-set-up-business-support-centre.html

More Vietnamese prefer travelling abroad 13/Apr/2017 Intellasia| Vietnamnet Vietnamese now tend to prefer outbound tours instead of domestic ones as it has become less costly to travel abroad and foreign agencies are more professional in promoting tours. Travel firms all reported that the sales of outbound tours at the HCM City 2017 Tourism Festival were much better than domestic tours. At Ben Thanh Tourism, tours to Taiwan, Bali, Dubai and Bhutan with attractive fees of around VND10 million or more were the most wanted. The tours to Japan and South Korea have been closed soon because of full bookings. Tours to Thailand, Hong Kong, Singapore and Malaysia have also been chosen for the summer. Other travel firms including Vietravel, Saigontourist, Du Lich Viet and Tugo have also reported sharp increases in bookings for outbound tours. The steady high two-digit growth rate in outbound tours at some travel firms has encouraged foreign tourism agencies to come to Vietnam to promote tourism. Most recently, JNTO (Japan National Tourism Organisation) has opened the representative office in Vietnam with an aim to attract more Vietnamese travellers to Japan. A survey of the organisation showed that within five years, from 2012 to 2016, the number of Vietnamese travellers to Japan increased by four times to 230,000 by the end of 2016. JNTO Hanoi's Chief Representative Ayumi Takahashi said Japan considers Vietnam one of the 20 key markets. Prior to that, Thailand, Singapore and South Korea all had set up representative offices in Vietnam to approach Vietnamese travellers. According to Korea Tourism Organisation (KTO), 251,000 Vietnamese visited South Korea in 2016, while it hopes the number would surge to 300,000 in 2017. Meanwhile, Thailand attracted 830,000 Vietnamese travellers to the country last year. High airfares make domestic tours less attractive Nguyen Thien from Tan Phu district in HCM City, said she tends to choose outbound tours, because outbound tours are getting cheaper. "The airfares are low, the expenses on accommodations and food in foreign countries are not high, while foreign travellers are not overcharged," she said. A return ticket on HCM City-Da Nang route, for example, is priced at VND1.5 million. The fee for a tour to Thailand is now just equal to a tour of Hue or Da Nang in Vietnam. Phan Xuan Anh, President of Du Ngoan Viet, said that outbound tours have low fees partially because of low airfares. While travel firms still have not found solutions to reduce air transport costs, air carriers have announced an increase of airfares, commencing from late March and early April. The move, as analysts warned, will make domestic tours become even more expensive, and therefore, less competitive than outbound tours. http://english.vietnamnet.vn/fms/business/176217/more-vietnamese-prefer-travelling-abroad.html

Vietnam ranked third most expensive travel destination in Southeast Asia 13/Apr/2017 Intellasia| Vnexpress The country has gone from the third cheapest in the region to the third most expensive in just two years. Vietnam has been ranked third from bottom in Southeast Asia when it comes to price competitiveness, only standing above Singapore and Cambodia, according to the biennial Travel and Tourism Competitiveness report produced by the World Economic Forum. The ranking is based on 14 factors, including price competitiveness. In the 2015 report, Vietnam was the third cheapest place to visit in Southeast Asia. http://e.vnexpress.net/news/business/data-speaks/vietnam-ranked-third-most-expensive-travel- destination-in-southeast-asia-3569415.html

'Made in China 2025' strategy puts pressure on Vietnam 14/Apr/2017 Intellasia| Vietnamnet China's 10-year development strategy could be a good policy for its industry, but it has raised concerns in other countries, including Vietnam. In May 2015, the Chinese administration announced 'Made in China 2025', which aims to push up the development of the country's industries in the next 10 years. Chinese factories are struggling with declining demand, a slowing domestic economy and fierce competition from developing economies in the region. Xinhua reported that China set out nine priorities to make the country 'the world's manufacturing power'. The Chinese government has committed to make investments to develop 10 high-tech industries such as making robots, aerospace equipment, new energy vehicles, hi-tech transportation, high-tech ships and marine equipment and biological medicine. Under the strategy, many production renovation centers would be built. Fifteen centers have been suggested by 2020, while the figure would be 40 by 2025. Beijing will increase the budget for R&D from 0.88 percent of domestic production in 2013 to 1.68 percent by 2025. 'Made in China 2025' has been facing heavy criticism from foreign enterprises. The EU Chamber of Commerce in Beijing on March 7 released a long report criticising the unfair treatment to foreign businesses, warning that Beijing's subsidies could create high capacity excess in some industries. One 'unfair treatment' mentioned requires European businesses to exchange their advanced technology for the right to short-term access to the Chinese market. China's plan is to replace cheap energy-consuming industries that pollute the environment. They expect to have high-tech content accounting for at least 70 percent in products by 2025. As such, China's low technologies will be transferred to other countries. Vietnam may be among them. "That is a very high risk," said Luong Van Khoi, deputy director of the National centre for Socio-Economic Information and Forecast. China is also trying to cut the number of coal thermopower plants. "It is possible that they would relocate the plants to Vietnam," Khoi warned, adding that some Chinese investment projects have entered the country already. "We need to keep a close watch over the situation, or Vietnam will be a dumping ground for other countries," he said. An MPI report showed that China has surpassed Japan, the US and other countries to become the third largest foreign investor in Vietnam, just after South Korea and Singapore. In the first three months of the year, China registered $823 million worth of investments in 58 projects. Is this a sign of the Chinese activities in 'Made in China 2025' strategy? http://english.vietnamnet.vn/fms/business/176407/-made-in-china-2025--strategy-puts-pressure-on- vietnam.html

Vietnam enters top 5 biggest foreign investors in Cambodia 14/Apr/2017 Intellasia| VOV Vietnam has become one of the 5 biggest foreign investors in Cambodia with 183 projects capitalised at $2.8 billion. The Bank for Investment and Development of Cambodia (BIDC), an affiliate of the Bank for Investment and Development of Vietnam, has established 9 branches in Cambodia with 360 employees in total. BIDC contributes an estimated $1 million in tax to the Cambodian government annually. "With an asset of $760 million, BIDC is ranked among the top ten biggest banks in Cambodia. We have received enormous support from the 2 governments," said Do Viet Hung, BIDC's vice director general. Angkomilk is another successful Vietnamese business in Cambodia. The company's revenue last year grew 10 percent against the previous year. "Angkomilk is the first milk producer in Cambodia. Our production process has met international standards," Doan Quoc Khanh, Angkomilk's director, elaborated. Vietnamese and Cambodian businesses have joined hands to set up 48 rubber joint ventures. They have been allocated 200,000 ha in 7 provinces in Cambodia to grow rubber trees. Each company employs 15,000 workers on average. http://english.vov.vn/economy/vietnam-enters-top-5-biggest-foreign-investors-in-cambodia-347482.vov

US remains top export market of Vietnam 14/Apr/2017 Intellasia| VOV The US was the largest export market of Vietnam in the in the January-March period, accounting for nearly 20 percent of the country's total export revenue. However, Vietnam's exports to the US in the period rose by a mere 4.1 percent while imports jumped 32.1%, making Vietnam's trade surplus with the highly lucrative market down to $ 6.4 billion from $ 6.7 billion. Vietnam's key export products to the US included garment, footwear, wood and timber products and the country has always enjoyed trade surplus with the American nation, reaching more than $29.7 billion last year. According to the Import-Export Department under the Ministry of Industry and Trade, the Southeast Asian nation currently ranks 12th among exporters to the US and 36th among importers after 20 years of normalisation of diplomatic relations. Exports to the vast market have also grown sharply over recent years from $1 billion in 2001 to $38.46 billion in 2016 and are likely to exceed $40 billion this year. http://english.vov.vn/market/us-remains-top-export-market-of-vietnam-347512.vov

Vietnam still runs trade surplus with Canada 14/Apr/2017 Intellasia| VNA Vietnam still recorded a trade surplus of 455.5 million USD with Canada in the first two months of this year. Two-way trade reached 717.7 million USD, a year-on-year rise of 117 percent. Canada's exports to Vietnam surged unexpectedly in January - February, according to Trade Counsellor of the Vietnamese Embassy in Canada Hoang Anh Dung. The country exported 131.1 million USD worth of goods to Vietnam in the period, representing a year- on-year rise of 105.4 percent. High growth was seen in such commodities as coal (38.3 million USD, up 52.7 percent), cereals (38 million USD, up 1.1 percent), and flight training equipment and spare parts (6.8 million USD, up 3.7 percent). Meanwhile, Vietnam exported 586.6 million USD worth of goods to Canada, a yearly increase of 6.6 percent. Vietnam's staples include machines, electronic equipment (147.7 million USD), footwear (79.6 million USD), apparel products (63.6 million USD), woven products (61.2 million USD), and timber products (46.6 million USD). With this outcome, Vietnam maintained its leading position in Asean in terms of export turnover to Canada. http://en.vietnamplus.vn/vietnam-still-runs-trade-surplus-with-canada/110205.vnp

Vietnam looks to Japan for infrastructure investors 14/Apr/2017 Intellasia| VN Economic Times $400 billion in infrastructure spending needed over next decade. Facing fiscal constraints, Vietnam is turning to foreign enterprises for funding and expertise as it anticipates a need for $400 billion in infrastructure spending over the next decade. Minister of Planning and Investment Nguyen Chi Dung told Japan's The Nikkei that Vietnam is already in the process of crafting a legal framework to pave the way for foreign participation in building projects. Minister Dung is visiting Japan until April 15, meeting with cabinet ministers and invited business leaders to promote partnerships and develop factories. Vietnam "has many critical infrastructure projects planned, and a public private-partnership (PPP) set-up would be indispensable," the minister said, adding that the country seeks help from foreign businesses, "primarily in Japan." The country plans to tap the PPP format. The first target is the construction of some 1,800 km of highway connecting Hanoi and HCM City, the country's largest road to date, with a maximum of ten lanes. The $13 billion-plus highway could alter traffic distribution in the Indochinese Peninsula as a whole. Vietnam plans to make PPP a model for many other infrastructure plans, including the Long Thanh International Airport in the south, high-speed railways, metro-area transit systems, and power stations. The format should minimise government outlays and allow for the absorption of know-how from participating businesses. The country has so far funded much of its infrastructure with official development assistance (ODA), mostly in the form of international loans, saddling the government with a great deal of debt. Its proportion of sovereign debt to GDP came to 64.7 per cent in 2016, just shy of the 65 per cent cap set by the National Assembly. Akio Mimura, Chair of the Japan Chamber of Commerce and Industry, visited Vietnam in January. "I understand that the government wants to use PPPs, but if the benefits of investing in the project are not made clear, private businesses will be hesitant," he said. The Ministry of Planning and Investment is central to the ongoing process of crafting related legislation, such as for allocating risk and profit. It aims to finish the process within this year, with input from Japanese businesses. minister Dung said he wants to help Japanese companies "feel secure in participating" in the projects. Vietnam's public and private sector infrastructure investment has averaged 5.7 per cent of GDP in recent years, the highest in Southeast Asia and comparable to China's 6.8 per cent, according to the Asian Development Bank (ADB). Indonesia and the Philippines spend less than 3 per cent, while Malaysia and Thailand spend even less, at under 2 per cent. The ADB estimates that emerging economies in the region will need to invest as much as $26 trillion to 2030 to build transport networks, boost power supply, and upgrade water and sanitation facilities. Vietnam, among the fastest-growing nations in the world, is boosting infrastructure to lure more foreign investors as it positions itself as Asia's next Tiger Economy. Foreign direct investment surged to a record $15.8 billion in 2016 and the economy is forecast by the World Bank to expand more than 6 per cent until 2019; among the top performers this decade. Vietnam needs about $480 billion to 2020 for infrastructure, including eleven power plants with total capacity of 13,200 MW and about 1,380 km of highways, according to the government. Last month, prime minister Nguyen Xuan Phuc ordered the transport ministry to speed up plans to attract more private investment for infrastructure as the State budget can only meet one-third of financial needs. The share of private investment in infrastructure spending in Vietnam may be less than 10 per cent, according to Rana Hasan, ADB director of Development Economics. In India, the private sector plays a bigger role, accounting for more than 30 per cent of total infrastructure investments in recent years, he said. http://vneconomictimes.com/article/vietnam-today/vietnam-looks-to-japan-for-infrastructure-investors

Vietnamese, Japanese localities seek stronger economic links 14/Apr/2017 Intellasia| VNA Secretary of the HCM City Party Committee Dinh La Thang has suggested enterprises from Japan's Hyogo prefecture expand investment and enhance partnerships with the Vietnamese locality. Thang, who is visiting Japan, made the suggestion at a conference to promote economic cooperation between the two localities on April 12. He said HCM City wishes to promote industrial production, high technology, seaport service and high- tech agriculture, which are strengths of Hyogo. However, he noted that Hyogo has only 22 businesses operating in HCM City, expressing his desire for more firms from the Japanese locality to invest in the city. HCM City authorities pledge to create favourable conditions for foreign enterprises, including those Hyogo to operate in the city, he stated. For his part, Governor of Hyogo prefecture Toshizo Ido said Vietnam is an attractive destination for investors thanks to the country's young workforce, stable politics and safety. According to Ido, about 1,500 Japanese firms are operating in Vietnam. Economic, tourism and culture exchange helped promote the friendship between HCM City and Hyogo, he said, adding that the conference contributes to enhancing relations between the two localities and their enterprises. At the conference, participants were updated on HCM City's economic development and policies to encourage investment and promote support industry and projects that the city is calling for investment in. According to deputy director of the municipal Department of Planning and Investment Tran Thi Binh Minh, HCM City authorities have taken measures to boost administrative reform and developed infrastructure to attract more investors. The city is developing a 13ha industrial zone to serve Japanese businesses, she said. During their meeting earlier the same day, Vietnamese and Japanese officials highlighted great potential for the two localities to cooperate in industry and seaport development. They hoped more economic and investment promotion activities between the two sides will be organised. Secretary Thang called on Toshizo Ido, who is also Chair of the Union of Kansai governments, to promote links not only between the two localities, but also between Vietnam's southeast key economic area and the Kansai region. Japan ranks fourth in term of total new registered-investment in HCM City with 1,001 projects worth 3.54 billion USD. Japanese investors mainly operate in processing and manufacturing industry, retail service, and science and technology-related sectors. http://en.vietnamplus.vn/vietnamese-japanese-localities-seek-stronger-economic-links/110174.vnp

Europe's coffee roasters hit by poor bean quality after Vietnam rains 14/Apr/2017 Intellasia| Reuters Major European coffee buyers such as Nestle are struggling to obtain supplies of premium robusta beans after heavy rains in Vietnam last year wreaked havoc on the crop in the world's biggest producer. Coffee roasters with strict requirements about the quality of their robusta beans, a cheaper variety than arabica and used for instant coffee, are rejecting deliveries, traders said. Roasters complain the coffee is musty and bitter, having been soaked last autumn by heavy rains during harvesting, when farmers lay the coffee cherries out to dry. The weather damage can also be seen in the colour - more beans than usual are a brown or black hue rather than the typical pale green colour of raw coffee. Nestle, the world's largest coffee company, has been hit particularly hard, traders said, since it has also committed to buying coffee that meets the voluntary Common Code for the Coffee Community, known as the 4C sustainability standards. "They have specific quality standards that are generally higher than others," said one European trader. Sourcing coffee has been more difficult this year due to roughly 20 percent lower production in Vietnam, as well as a second poor crop in Brazil, the world's second largest robusta grower. Traders said Nestle had earlier this year tendered for roughly 3 million 60-kilogram bags of Vietnamese robusta coffee for March 2017/March 2018 delivery. One trader said Nestle typically uses 5-6 million bags of Vietnamese robusta coffee a year, which represents nearly a quarter of the country's 2016/2017 output, expected at about 24.5 million bags. Nestle declined a request for comment. Nestle could try alternative sources, traders said, but few countries grow the beans it needs on a large scale. While 4C is a widely used benchmark, only about 29 percent - 2.6 million tonnes (43.3 million bags) in 2015 according to the Global Coffee Platform - of coffee grown globally meets Nestle's specification. Most 4C robusta comes from Vietnam. The bulk of 4C is arabica coffee, typically used in premium blends, from countries such as Brazil and Colombia. Indonesia, the world's third largest robusta producer, grows some 4C coffee, but traders said it usually falls short of Nestle's taste test. "You are stuck because you committed to that supply chain and that sustainability programme," said a second trader. "You might have the perfect coffee next door - but it's not certified." Higher quality coffee from India and Uganda could fit Nestle's profile, but these countries also produce only small volumes of 4C coffee and traders say the premium on supplies from these countries is $160- $200 a tonne to top quality Vietnamese robusta. For now, quality issues have mostly affected companies which buy on taste rather than the look of robusta beans and the coffee shunned by Nestle is expected to easily find a home and unlikely to be discounted. "There are plenty of people who are less strict," another trader said. More broadly, the market is worried about future supplies from Vietnam due to producers having sold forward their best coffee in a bid to lock in profits earlier this year, when robusta prices hit 5-1/2 year highs of $2,282 a tonne. The low grade quality of the remaining stock in Vietnam is causing concern, as is the volume farmers and middlemen are holding at this point in the season. Traders estimated just 20-30 percent remains in the country, compared with 45-50 percent in a typical year. Focus is also on discoloured beans, which some dealers say could make up 8 to 10 percent of the total crop. Traders say more than 20 percent of Vietnam's remaining crop could be black beans, which affect taste and may have to be blended with the next crop. Price differentials have not yet shifted dramatically, but the discount for lower quality beans suggests oversupply; grade 3 is trading about $150-$200 a tonne below Grade 2 compared with about $100 previously. "The longer we go, the more we realise we've drawn down the good coffee," said a third trader. "At some point this is going to be an issue." http://www.reuters.com/article/coffee-robusta-quality-idUSL5N1HD2TY

Vietnam's top 500 best growth, prosperity firms revealed 14/Apr/2017 Intellasia| VNA Vietnam's top 500 best growth (Fast500) and top 500 best prosperity (BP500) companies 2017 were announced by the Vietnam Report JSC at a ceremony in Hanoi on April 12. 2017 is the seventh consecutive year that Fast500 has been published and the second year for BP500. Addressing the ceremony, deputy minister of Planning and Investment Dang Huy Dong lauded the honoured businesses, saying they have greatly contributed to the country's economic development and prosperity. FAST500 list included Sunhouse Group and Da Nang - Central Region Investment Company, while the Vietnam Military Telecommunications Group and Vinamilk were named in the BP500. On the occasion, Vietnam Report officially launched the Top 50 Vietnam Best Growth and Prosperity for the first time. Its report on Vietnam's growth and prosperity in 2017 also pointed out that the economy must be transformed in terms of quality and efficiency to improve competitiveness for successful integration and sustainable development. Leading firms in Vietnam are more aware of the importance of corporate social responsibility (CSR) for their growth and prosperity, the report said. Five CSR issues which received significant attention from firms were business transparency, local community aid, unemployment reduction, environmental protection and career orientation for the youth. Businesses were also more aware that "to give is to receive," according to Vietnam Report. http://en.vietnamplus.vn/vietnams-top-500-best-growth-prosperity-firms-revealed/110212.vnp

Vietnam government puts fate of 12 loss-making megaprojects in Politburo's hands 14/Apr/2017 Intellasia| Tuoitre News Vietnam's government is scheduled to submit a list of 12 loss-making projects to the country's Politburo, the most powerful branch of its political system, to decide their fate. The projects in question have accumulated combined losses of nearly $3 billion and are all currently being managed by the Ministry of Industry and Trade. To date, 20 directives have been issued to assign more than 100 tasks to state-run corporations and enterprises to resolve the shortcomings and weaknesses of the 12 projects, deputy prime minister Vuong Dinh Hue said on Wednesday. The trade ministry has also finalised a report on how to handle the loss-making projects, which the government is scheduled to review this week before submitting it to the Politburo - the all-powerful policymaking body of the Communist Party of Vietnam - as quickly as possible, according to the deputy premier. The 12 projects on the chopping block include Phuong Nam pulp mill, Ninh Binh Urea Fertiliser, Thai Nguyen Cast-Iron and Steel Plant, Phu Tho Ethanol Plant, Dung Quat Ethanol Plant, Binh Phuoc Ethanol Plant, Dung Quat Shipyard, PVTex Dinh Vu Yarn Making Plant, Ha Bac Urea Fertiliser, Lao Cai Diammonium Phosphate (DAP) plant, Dinh Vu DAP, and Lao Cai Cast-Iron and Steel. Of the 12, six have already been commissioned but are operating at a loss, three have had to cease construction due to rising costs and lack of capital, and three have been forced to halt production due to hefty costs and the resulting losses. Combined, those 12 projects have resulted in losses of VND63,729 billion ($2.85 billion). http://tuoitrenews.vn/business/40499/vietnam-govt-puts-fate-of-12-lossmaking-megaprojects-in- politburos-hands

Vietnamese enterprises see sharp profit fall 14/Apr/2017 Intellasia| DTI News Vietnamese enterprises saw a sharp decrease of profits in the 2010-2015 period compared to the previous five years, according to the general Statistical Office (GSO). The information was released at a press conference in Hanoi on April 11. The GSO under the Ministry of Planning and Investment reported that the average profit growth of Vietnamese businesses between 2010 and 2015 was only 7.5 percent annually against the rate of 24.1 percent in the 2005-2010 phase, representing a fall of 60 percent in profits. In the 2010 - 2015 period, Vietnamese firms' taxes paid to the state budget annually increased by 11.6 percent on average, lower than the rate of 21.1 percent of between 2000 and 2010. The GSO reported that the investment also decreased by 25 percent per year on average in the 2000 - 2010 period, compared to just 14 percent of from 2010 to 2015. Pham Dinh Thuy, a representative from the GSO, said that the Vietnamese economy has seen a fast development but lacked efficiency. Up to 97 percent of Vietnamese businesses have small and medium-sized scale. Among those, nearly 60 percent of companies have less than 10 employees with out-of-date technologies. In the first quarter of this year, Vietnam licensed 26,478 new businesses in the first quarter of this year worth VND271.2 trillion (USD12.3 billion). The number of newly-licensed enterprises in the January-March period increased 11.4%, compared to the same period of last year, while the capital increased 45.8%. However, GDP growth between January and March slowed down at 5.1%, compared to 5.48 percent during the same period in 2015 and 6.12 percent of 2015. According to the GSO, it was partially because many newly-established businesses have not yet been operated or operated with very low revenues. http://english.vietnamnet.vn/fms/business/176485/vietnamese-enterprises-see-sharp-profit-fall.html

Vietnam among top 10 markets for women business owners 14/Apr/2017 Intellasia| VNA A Mastercard survey indicates that Vietnam is among the top ten markets for proportion of women business owners. The Mastercard Index of Women Entrepreneurs looks at 54 economies. It shows that Bangladesh (31.6 percent), Vietnam (31.4 percent) and China (30.9 percent) made the list of the top ten markets for proportion of women business owners as a percentage of total business owners. In these countries, women capitalise on business opportunities that do not rely on knowledge or innovation assets alone. The survey says the low scores of markets such as India, Saudi Arabia and Egypt are indicative of the fact that cultural biases against women severely undermine their ability to rise to positions of leadership and take advantage of entrepreneurial opportunities. http://en.vietnamplus.vn/vietnam-among-top-10-markets-for-women-business-owners/110186.vnp

Hung Yen calls for RoK investment 14/Apr/2017 Intellasia| VNA Vice Chair of the Hung Yen provincial People's Committee Nguyen Van Phong called for foreign investment, including those from the Republic of Korea (RoK) at a workshop in Seoul on April 13. The event saw the participation of Vietnamese vice Ambassador to the RoK Tran Anh Vu, representatives the Korea Chamber of Commerce and Industry (KCCI) and 100 entrepreneurs from RoK and other nations eyeing on Hung Yen investment opportunities. Phong introduced his locality's potential to participants, underlining the young population, trained human resources, stable economic growth and increasing export value. Hung Yen has focused its investment on developing technical infrastructure and human resources training. The province is home to numerous successful RoK investors, including Hyundai Aluminum Vina, Tae Yang Vietnam, DongYang, Mirae Fiber, Phong affirmed. He pledged that the locality will create the most favourable condition possible for foreign investors in line with the country's law. Addressing the event, Kang Homin from KCCI said many RoK firms have smoothly operated in Hung Yen, adding that the event will presents a good opportunity for RoK enterprises to have an insight into the province's potential. He also offered to connect local enterprises with Hung Yen, affirming that strengthening trade exchanges between the two sides will contribute to economic and diplomatic ties between Vietnam and the RoK. In his address at the event, vice Ambassador Tran Anh Vu said the RoK has become one of Vietnam's biggest investors, with over 50 billion USD and 5,600 enterprises, which created jobs for around 700,000 labourers and accounted for 30 percent of the country's total exports. The presence of such big names as Samsung, LG, Hyundai, Kia, Lotte, Posco, Shinhan, Hyosung, Hanwha in Vietnam has proven the attraction and safety of the country's business environment, he said. He underlined the win-win Vietnam - RoK relations, saying that they explore financial and technological resources of the RoK and skilled and large human resources of Vietnam. The diplomat expressed his belief that more RoK firms will invest in Hung Yen to carry out new projects and expand the existing ones after the event. At the workshop, representatives from different sectors of Hung Yen introduced big projects calling investments. The event also witnessed the signing of two memoranda of understanding on developing a 3,000-hectare industrial zone and building and operating a waste treatment plant in Hung Yen province. http://en.vietnamplus.vn/hung-yen-calls-for-rok-investment/110200.vnp

Savills: HCM City apartment transactions slow in Q1 14/Apr/2017 Intellasia| VN Economic Times Apartment supply in Q1 down 47 percent q-o-q to only 5,200 units while absorption also falls in mid- and high-end segments, according to Savills' Q1 report on HCM City market. Transaction volumes in HCM City's apartment segment as well as in the villa and townhouse segment were down in the first three months of the year, according to the first quarter report released by Savills on April 12. Other segments, such as retail, office, and serviced apartments were relatively stable. Savills noted that Vietnam's real estate market in general and the HCM City market in particular are in a period of stability. The apartment segment had about 5,200 new apartments for sale in the first quarter, down 47 per cent quarter-on-quarter. Total primary supply in all segments reached around 42,500 units. At the same time, the total volume of transactions in the first quarter fell 13 per cent quarter-on-quarter, at about 8,800 units. Grade C transactions increased 10 per cent while Grade B declined 35 per cent. Market absorption was approximately 21 per cent, down 1 percentage point quarter-on-quarter due to lower absorption rates in Grade A and Grade B. Savills forecasts that supply from the second quarter of 2017 to 2019 will reach 62,200 units, of which District 2 and District 7 will continue to see the most, with about 21 per cent each. In the villa and townhouse segments, primary supply declined by 14 per cent in the quarter to 2,600 units but was up 25 per cent year-on-year. Trading volumes were not very positive, declining 11 per cent compared to the last quarter of 2016, in which eastern districts accounted for 74 per cent of all transactions, especially District 9, with 49 per cent. The absorption rate was 34 per cent, up 1 percentage point quarter-on-quarter and 12 percentage points year-on-year. From the second quarter of 2017 to 2019, the city will receive about 14,200 units from 44 new projects. Eastern districts are expected to account for 55 per cent of total future supply. In the office segment, a number of Grade C projects in Binh Thanh district entered the market, offering over 4,400 sq m. Total market supply in the first quarter therefore reached 1.6 million sq m, stable on a quarterly basis and up 1 per cent year-on-year. Savills also reported that operating performance was maintained, with average rentals increasing by 1 per cent quarter-on-quarter and 2 per cent year-on-year. Rentals rose due to a scarcity in Grade A and Grade B vacancies in the CBD. Average capacity was 97 per cent, stable quarterly and up 2 percentage points year- on-year. The market is expected to receive over 390,000 sq m of new office floor space by 2019. In the remaining three quarters of 2017, the figure is expected to be 123,000 sq m, equal to 8 per cent of existing supply. The serviced apartment segment was relatively stable in the quarter, with total supply of 4,600 units, up 2 per cent quarter-on-quarter and 6 per cent year-on-year. Leasing occupancy averaged 87 per cent, up 5 percentage points year-on-year, with average rentals also rising 5 percentage points over the same period of 2016. http://vneconomictimes.com/article/property/savills-hcmc-apartment-transactions-slow-in-q1

Business Briefs April 14, 2017 14/Apr/2017 Intellasia | * Vietnam Posts and Telecommunications Group (VNPT) has announced to put up 14 million shares of VNPT Land for auction at the starting price ofVND9,700 each. The auction will run from now to May 5 with foreigners eligible to buy nearly 8.7 million shares. * Ben Thanh Trading & Service Company (BTT) has approved a scheme to raise its chartered capital by VND 135 billion by issuing bonus shares and employee stock ownership plan (ESOP) shares. BIT will offer nearly 2.3 million shares to existing shareholders at a 21.5-for-100 ratio in the second or third quarter of this year. Upon completion of the bonus share issuance, the enterprise will offer nearly 622,000 ESOP shares to key staff. BIT obtained nearly VND366 billion in revenue in 2016, up 10 percent against the previous year. * Siam Brothers Vietnam Company (SBV) plans to float over 20 million shares on the HCM City market this month at the reference price of VND40,000 each, according to Dau Tu Chung Khoan website. The 100 percent Thai-invested firm has been operational in Vietnam for over 22 years, specialising in fishing equipment. In 2016, SBV obtained VND508 billion in revenue and VND 113 billion in after- tax profit, up 10 percent and 38.6 percent against the previous year respectively. * Truong Thi Le Khanh, chairwoman of Vinh Hoan Corporation (VHC), has' registered to sell six million VHC shares to reduce her holding from 49.3 percent to 42.8%. * Electronics Communications Technology Investment Development Corporation (ELC) will spend VND28 billion paying an interim dividend ofVND600 per share for 2016 on the record date of April 20. The company will make payments on May 11. * Long An Food Processing Export Company (LAP) looks to pre-tax profit of VND27 billion in 2017. Its revenue is estimated to reach VND900 billion, a 3 percent increase. * Viglacera Corporation (VGC) posted net profit of an estimated VND242 billion in the first quarter of this year, meeting 27 percent of the firm's full year target. Its revenue was predicted at VND 1. 76 trillion in the period, 22 percent of the year's plan. * Thanh Hoa Beer Company (THB) will spend VND9. 7 billion paying a dividend of VND850 per share for 2016 on the record date of April 21. Payments are slated for May 17.

Steel segment waits to see what Trump will do 14/Apr/2017 Intellasia| VOV President Donald Trump has signed an executive order seeking a comprehensive review of the massive US trade deficit totalling more than $500 billion per annum with 16 countries including China and Vietnam. Trump has also signed a second order that seeks to strictly enforce anti-dumping laws and collect past due duties that were levied on foreign businesses but never paid over to the US government. However, he is now considering signing a third order targeting countries that dump steel on American shores, specifically China - but there is much concern that the directive could spill over and impact Vietnam. Here's what it is all about The capacity of Chinese steelmakers now exceeds that of the US, EU, Japan and Russia combined and has accounted for more than 75 percent of the growth in the global industry over the past five years, according to experts. China cannot possibly use all the steel it produces domestically so it regularly dumps it into other markets, principally the US and EU - which has resulted in substantial closings of steel plants and loss of jobs in these markets. The United Steelworkers union in the US has estimated the loss of jobs caused by Chinese dumping to be more than 14,500 between January 2015 and June 2016 as a result of dozens of plant closings. Dumping is when a foreign manufacturer exports a product to another country at a price below what it charges in its own domestic market. Quite often, a dumped product is priced below what it costs to produce. Dumping such as that from China is alleged to be part of a long-term strategy to capture foreign market share, the idea being that the super low price will put steelmakers in other countries out of business and allow the Chinese government-backed foreign companies to dominate the industry. Meanwhile the Chinese government, it is supposed, is subsidising the losses incurred by its domestic steelmakers because the segment creates jobs, which in turn benefits the economy in many other ways that results in net overall improvement in the gross national product. There is also substantial evidence that some Chinese steel companies have sent products in the past through Vietnam as part of a scam to avoid US anti-dumping duties and that this conduct might be continuing. Trump's executive order What Trump administration staff are telling the media on background is that the proposed executive order would launch a massive investigation by US authorities to see if trade deficits for specifically - steel and aluminium - are the result of dumping. What could Trump do to stop dumping Trump has the power to unilaterally levy a tariff against imports from any country, which literally means he can impose import duties on his own initiative without the approval of the US Congress. He could also follow through on his campaign pledge to instruct the US Trade Representative to bring cases against China and other countries to use "every lawful presidential power to remedy trade disputes." No one knows for sure what Trump would do if he signs the executive order, but a likely course of action also includes an option to follow the lead of former US President Ronald Reagan and impose voluntary export restraints on steel such as those imposed by the US in 1984. Dumping in the US and markets around the globe such as Vietnam by Chinese steelmakers is a major problem - and it is a problem that will not be resolved on its own. US President Trump is going to have to act. The Vietnam steel segment is waiting to see what the US President will do. http://english.vov.vn/economy/steel-segment-waits-to-see-what-trump-will-do-347528.vov

Vietnam issues final AD duty on galvanised steel imports 14/Apr/2017 Intellasia| VOV The Ministry of Industry and Trade has announced its final determination on its antidumping duty investigation on galvanised steel products imported into the country from China and the Republic of Korea. Accordingly, for Chinese companies the final AD rates stand at 3.17 percent for Yeih Phui Technomaterial, 26.36 percent for Bazhou Sanqiang Metal Products, 38.34 percent for BX Steel POSCO Cold Rolled Sheet, 27.36 percent for Bengang Steel Plates, 26.32 percent for Tianjin Haigang Steel Coil, 38.34%, for Tangshan Branch, 33.49 percent for Wuhan Iron and 38.34 percent for other Chinese manufacturers/exporters. For Republic of Korea companies the final AD rates stand at 7.02 percent for POSCO and 19 percent for other manufacturers/exporters. The investigation was initiated last March upon the filing of a complaint by domestic producers JSC China Steel Sumikin Vietnam, Tom Phuong Nam Joint Stock Company and Nam Kim Steel Joint Stock Company Ton Dong. The products in question fall under the Customs Tariff Statistics Position Numbers 7210.41.11 through 7226.99.11 spanning the spectrum of galvanised steel product imports. http://english.vov.vn/economy/vietnam-issues-final-ad-duty-on-galvanised-steel-imports-347530.vov

ROK companies in Vietnam falling short in profitability 14/Apr/2017 Intellasia| VOV ROK transnational companies operating in Vietnam have fallen far short of their expectations to earn profits on their investment in the emerging market, said speakers at a business forum in Seoul on April 13. ROK companies invested an aggregate total of $15 billion in Vietnam as of the end of last year, making it the third-largest amount in any foreign country, according to the Korea Trade-investment Promotion Agency (Kotra). The rate of operating profit was 2.3 percent and net profit a mere 0.6%, falling far short of the 3.4 percent average for operating income and 2.6 percent for net income targeted. Kotra said corporate performance may improve once a mega free trade agreement being negotiated is concluded later this year as planned. The 10 member states of the Asean plus the ROK, China, Japan, Australia, New Zealand and India are working on a Regional Comprehensive Economic Partnership (RCEP) that would create an economic bloc accounting for half of the world's population and nearly 30 percent of the global trade and output. Kotra said the benefits of the RCEP for the ROK is that it can import intermediate goods at a cheaper price from among different countries and export finished products to countries like Vietnam. Such process would create added value for ROK exporters, Kotra said, adding that ROK companies need to set up a high-core strategy in advancing into Vietnam with the global value chain and the mega FTA in mind. http://english.vov.vn/economy/rok-companies-in-vietnam-falling-short-in-profitability-347533.vov

HCM City delegation visits Japan to promote tourism 14/Apr/2017 Intellasia| The Saigon Times The HCM City Tourism Department has just signed a memorandum of understanding on tourism development cooperation with Nagano City of Japan, expecting to increase tourists to the two cities. Besides, HCM City will hold a two-day conference on investment, trade and tourism promotion with several tourism booths at the Internation House centre beginning on April 13, and sign an agreement on tourism cooperation with Osaka City the same day. These are some of the trade and investment promotion activities in Japan of HCM City from April 6 to 15. HCM City's 40-strong delegation representing departments and dozens of tourism enterprises, led by Dinh La Thang, Secretary of the HCM City Party Committee, is visiting Osaka, Hyogo, Nagano and Tokyo to sound out cooperation opportunities there. Japan is the third largest source market for HCM City's tourism with more than 377,000 Japanese visitors coming to the city last year, up 8 percent over 2015. Japanese visitors to HCM City accounted for more than half of the total number of visitors from this country to Vietnam. Late last month, representatives of the Japan Tourism Agency, the Japan National Tourism Organisation, and Vietnam National Administration of Tourism signed a memorandum of cooperation on tourism promotion between the two countries. In 2018, Vietnam expects to welcome one million Japanese, up from over 740,000 visitors last year, while the number of Vietnamese visitors to Japan is forecast to reach 500,000. http://english.thesaigontimes.vn/53457/HCM City-delegation-visits-Japan-to-promote-tourism.html

Many localities want to run Vietlott business 14/Apr/2017 Intellasia| The Saigon Times Representatives of many cities and provinces have asked the Ministry of Finance for permission to run the computerised lottery business of the Vietnam Lottery Company (Vietlott) in their localities. At a seminar called "Transparency in the lottery market" organised by Thanh Nien newspaper in HCM City on April 12, Nguyen Hoang Duong, deputy head of the Department of Finance, Banks and Credit Institutions under the Ministry of Finance, said the ministry had assigned Vietlott to assess market potential and business opportunities to submit the proposals for approval. Vietlott, a state-owned enterprise under the Ministry of Finance, is headquartered in Hanoi and has many local branches. Profit of these branches will go to the local budgets for health, education and society development. At present, the computerised lottery business is present in 12 cities and provinces namely HCM City, Hanoi, Can Tho, Danang, Hai Phong, An Giang, Ba Ria-Vung Tau, Dong Nai, Binh Duong, Khanh Hoa, Dak Lak and Quang Ninh. However, the high demand for this lottery product has led to many individuals and organisations retailing tickets in the localities where there is no official Vietlott presence to pocket VND1,000-2,000 or even VND5,000 a ticket. The ministry has assigned Vietlott to closely watch this illegal business and impose sanctions if necessary, the representative added. The seminar was attended by representatives of Vietlott, financial experts, lawyers, and Berjaya of Malaysia. Berjaya is the party transferring technology to Vietlott. However, there were no representatives of lottery enterprises showing up. http://english.thesaigontimes.vn/53446/Many-localities-want-to-run-Vietlott-business.html

Dragon fruit farmers supported with energy-saving lights 14/Apr/2017 Intellasia| VNA More than 2,300 households growing dragon fruits in Binh Thuan, Long An, and Tien Giang provinces have been assisted to replace 2 million incandescent bulbs with energy-saving lights from July 2014. The Southern Power Corporation of the Electricity of Vietnam (EVN SPC) held a conference in the south central coastal province of Binh Thuan on April 12 to review a programme assisting farmers with energy- saving lights in 2014-2016. When buying the 20W compact lamps from domestic lamp businesses of Dien Quang and Rang Dong, farmers will enjoy a discount of at least 10 percent compared to the normal retail price on the market and late payment of 3-6 months. The programme worth over 17.5 billion VND (772,000 USD) also supported farmers to install lights and apply safety usage measures. Close to 54,523 MWh of electricity could be saved each year, equivalent to 82 billion VND (3.6 million USD). Deputy director of the SPC Nguyen Phuoc Duc said the use of energy-saving lights helps farmers reduce agricultural production cost and increase their awareness of electricity saving and safe production. It also contributes to reducing the emissions of 200,000 tonnes of CO2 and protecting the environment, he added. Binh Thuan is home to over 26,000 hectares of dragon fruits involving 20,000 farming households. More than 81 percent of lamps used for growing dragon fruit at present are energy-saving. http://en.vietnamplus.vn/dragon-fruit-farmers-supported-with-energysaving-lights/110158.vnp

PVEP, SK Innovation and Murphy complete agreements for block 15-1/05 14/Apr/2017 Intellasia| VIR The US Murphy Oil Corporation, Korea's SK Innovation and their Vietnamese partner PetroVietnam Exploration Production Corp has completed the transaction of participation right on the petroleum sharing contract for block 15-1/05 in Cuu Long basin offshore Vietnam. The ceremony of the completion agreements in respect of the petroleum sharing contract (PSC) of block 15-1/05 was signed among those above parties on April 11, 2017. According to PetroVietnam Exploration Production Corp (PVEP) vice president Cao Huu Binh, this signing ceremony was an important milestone for the long - term comprehensive and strategic collaboration between PVEP, SK and Murphy. The certificate of investment registration was approved by Vietnamese Ministry of Industry and Trade in which PVEP and SK Innovation will transfer totally 35 per cent of their interest in the PSC of block 15- 1/05 to Murphy Cuu Long Bac Oil Co. Ltd According to PVEP statement, the tight collaboration between all parties, especially the experience in oil and gas sector of Murphy and SK Innovation will help the contractors achieve and put more and more discoveries into production, along with expanding the exploration in the entire block. After the ceremony, the contractors will actively carry out the work in order to put Lac Da Vang discovery into production as well as other additional exploration in the entire block. Additionally, the parties will also discuss the cooperation in the opportunities of 16-2, 17 and other blocks at the potential Cuu Long Basin. PVEP has exceeded its production targets assigned by the government and PetroVietnam for the first quarter of 2017. http://www.vir.com.vn/pvep-sk-innovation-and-murphy-complete-agreements-for-block-15-105.html

Furama Resort Danang conferred the Golden Dragon award 14/Apr/2017 Intellasia| VIR Furama Resort Danang has just received the Golden Dragon award 2016 for its achievements and contributions. The award is held annually by the Vietnam Economic Times (VET) in collaboration with Foreign Investment Agency (under the Ministry of Planning and Investment), and Furama Resort Danang has received this for eight times in a row. The Golden Dragon award is one of the largest held by VET, aimed at recognising foreign-invested enterprises that have achieved outstanding business performance and made significant contributions to the development of Vietnam's economy. The award criteria focus on businesses' efforts to maintain sustainable development, promote environmental protection and fulfill the corporate social responsibility. In 2016, Furama Resort Danang reached the growth rate of over 30 per cent, an increase of 20 percentage points compared to its plan, contributing to the tourism revenues of Danang City. Furama Villas' growth rate alone doubled, 50 per cent surpassing the plan. Over 20 years of development, Furama Resort Danang has always tried its utmost to maintain the leading status in Vietnam's market of luxurious beach resorts, owing to the resort's efforts to improve management and diversify services, especially culinary services in order to meet various demands of tourists. "After putting the Ariyana Danang Exhibition & Convention Centre (ADECC) into operation to welcome Apec 2017, we will become a worth -experience destination in Danang. Winning the Golden Dragon award has proved our efforts in offering the high-quality services, considerably contributing to tourism development of Central region and Vietnam," said Matthias Wiesmann, general manager at Furama Resort Danang. Along with interest generation, contributing to the national budget as well as supporting the economic growth, Furama Resort Danang is well known for its great contributions to society through a number of programmes such as Tet traditional culinary events, support programmes for children at Danang's SOS village, a programme of "Go Green @ Fabulous Furama", aimed at encouraging guests to contribute more to a green living and better environment. http://english.vov.vn/economy/furama-resort-danang-conferred-the-golden-dragon-award-347491.vov

Misumi Vietnam makes debut in Bac Ninh 14/Apr/2017 Intellasia| VNS Misumi Vietnam Co, an affiliate of Japanese Misumi Group, made its debut on Wednesday in the northern province of Bac Ninh. Located in the Tien Son Industrial Zone, the company manufactures and distributes standard components for factory automation, press die and plastic mold. "In Vietnam, foreign direct investment, especially in areas such as mobile phones, electrical machinery or electronic manufacturing, is still growing. MISUMI Vietnam is targeting the capture of customer needs in those industries, particularly focusing on Japanese and Korean companies, by leveraging our existing business relationship in Japan and Korea," company general director Yasuo Shimokura told reporters. He said, in the long term, the company also wanted to penetrate Vietnam's local manufacturing sector, including small and medium-sized enterprises. "I believe MISUMI Vietnam can contribute to further development of supporting industries in Vietnam by providing various high quality products in short and accurate time and with reasonable prices," he noted. During the event, vice chair of the provincial People's Committee Nguyen Huu Thanh spoke highly on the company's debut, saying it would contribute to fostering the province's industry development. He vowed local authorities would create the most favourable conditions for the company in doing business in Bac Ninh, which was striving to become an industrial province by 2020. http://bizhub.vn/news/misumi-vietnam-makes-debut-in-bac-ninh_285491.html

Golden Dragon Award for Viet Uc Seafood 14/Apr/2017 Intellasia| VN Economic Times Shrimp producer adding value to Vietnam's shrimp market. The Viet Uc Seafood Corporation received a Golden Dragon Award from Vietnam Economic Times on April 8. Receipt of the awards is based on many factors, such as production and business activities, service provision, application of technological solutions for environmental protection, full implementation of tax obligations, ensuring employee rights, and actively participating in social activities. Viet Uc has formed a High Quality Shrimp Production Complex that is a closed shrimp production protocol with superior technologies being applied in broodstock farming, hatchery operations, super- intensive greenhouse farming, and processing plants. The success of its super-intensive greenhouse shrimp farming is bringing new added value to Vietnam's shrimp industry, such as traceability, food safety, high and stable productivity, and shrinking land use, while ensuring sustainable development, keeping farming areas and diseases under control, and minimising the impact on the environment With these strengths, Viet Uc is confident of continually supplying shrimp of the best quality to the market with stable output, which will increase the popularity of its shrimp brand in domestic and international shrimp markets. Through its social and strategic programmes, Viet Uc has been sharing its experience and technologies with farmers and strategic partners. In order to produce the best shrimp, high quality post larvae are required due to the fact that this accounts for 50-55 per cent of the success rate. With the aspiration of "Transforming Vietnam's Shrimp", Viet Uc has not ceased improving its shrimp quality through investments in science and technology. Viet Uc has also supplied 22-24 per cent of the country's post larvae market in the last three years. It now has seven different hatcheries throughout Vietnam, in Nghe An, Binh Dinh, Binh Thuan, Ninh Thuan, Bac Lieu, Ben Tre, and Ca Mau provinces. The advantage of having a large-scale hatchery operation that stretches around the country is that it cuts the distance from the hatchery to the farm to less than 300 km, which will reduce transit time and ultimately improve the quality of post larvae. Depending on the region the post larvae is produced in, they have adapted to the biological conditions of that specific region, which is why Viet Uc has built seven different hatcheries in Vietnam, primarily in the Mekong Delta. With more than 15 years of experience in aquaculture, the Viet Uc Seafood Corporation is the largest hatchery business in Vietnam and is always looking for the best solutions to enhance added value and the sustainable development of the shrimp industry. The Golden Dragon Awards were initiated in 2001 by Vietnam Economic Times to recognise and encourage foreign enterprises that have recorded outstanding achievements. http://vneconomictimes.com/article/business/golden-dragon-award-for-viet-uc-seafood

Dragon Capital offsets annual carbon emissions 14/Apr/2017 Intellasia| VN Economic Times Investment company purchases Voluntary Emission Reduction certificates from a rural biogas project. The Dragon Capital Group (DCG) has offset its annual carbon emissions by purchasing Voluntary Emission Reduction (VER) certificates from a biogas project in the countryside. With the aim of becoming one of the leaders in promoting corporate sustainability and environmental responsibility in Vietnam, DCG is conscious of its consumption of natural resources and is committed to proactively managing its environmental performance. As part of such efforts, since 2008 the company has conducted an assessment of its carbon footprint and offsets unavoidable operational emissions to maintain its carbon-neutral status. "Offsetting DCG's carbon emissions through this project not only enhances its corporate social responsibility position but also encourages the development of small farm biogas generation in Vietnam, providing rural farmers with a sustainable gas supply from farm waste," said Gavin Smith, director of Dragon Capital Clean Development. The total 583.43tCO2 emissions from the Group this year is being offset by green energy produced from the Biogas Programme for the Animal Husbandry Sector of Vietnam, launched in 2003 by the Livestock Production Department at the Ministry of Agriculture and Rural Development in cooperation with SNV, an international development organisation from the Netherlands. The project provides farming families with access to renewable energy and improved hygiene through the development of a commercially viable biogas sector. Founded in 1994, DCG is an integrated investment company based in Vietnam. Together with its affiliates, it manages some $1.5 billion in assets spanning public equity, private equity, fixed income, and property. Its primary shareholders are the company's founders, management, and staff, and it now employs over 100 people at offices in Asia and Europe. http://vneconomictimes.com/article/business/dragon-capital-offsets-annual-carbon-emissions

UH celebrates 10th year of VEMBA programme 14/Apr/2017 Intellasia| The Saigon Times The University of Hawaii (UH) has celebrated the tenth anniversary of its Vietnam Executive Master of Business Administration (VEMBA) programme in HCM City. The VEMBA programme, conducted by UH's Shidler College of Business, has equipped students with logical thinking methods and strategic visions for domestic and international competition. Launched for the first time in 2001 in Hanoi, the programme is designed with a special training curriculum for business leaders and managers with at least five years of work experience. Since then, more than 200 students have graduated from this programme and many of them have taken up senior positions at firms at home and abroad. The Shidler College of Business is certified for its international training quality by the Association to Advance Collegiate School of Business (AACSB) International, the most prestigious and demanding accrediting institution for elite business schools worldwide. http://english.thesaigontimes.vn/53444/-UH-celebrates-10th-year-of-VEMBA-programme.html

Zara to open store in Hanoi this year 14/Apr/2017 Intellasia| VNS Spanish retailer Zara will open its first store in Hanoi in August, Vietnamese human resources agency Talentnet told Vietnam News. Talentnet, which posted employee recruitment emails seeking positions in Hanoi, said Zara would open more than one store in the capital city this year. Zara Vietnam is looking to hire store managers, shift supervisors, sales staff and cashiers. The application deadline is April 15. In September 2016, Zara made its entry into the Vietnamese market by opening its first store in HCM City. On April 5 this year, Zara started online sales in Vietnam. At the end of 2016, Zing News reported that a representative of Inditex, Zara's parent company, denied rumours that Zara would be opening two stores in Hanoi. "Zara will be expanding in the Vietnamese market, but has no plans to open more stores in the near future," Jesus Echeverria, Inditex's media representative, had said. The presence of Topshop and Zara in Vietnam, and rumours of H&M and Uniqlo opening stores soon, are positive signs, indicating that big brands across the world are seriously considering this potential market of 90 million people. http://bizhub.vn/news/zara-to-open-store-in-ha-noi-this-year_285498.html

Saigon Co.op starts work on supermarket in Kon Tum 14/Apr/2017 Intellasia| The Saigon Times Saigon Co.op, the owner of the Co.opmart supermarket chain, on April 12 began construction on a Co.opmart supermarket on Le Hong Phong Street in Kon Tum Province. Covering nearly 6,000 square meters and costing over VND100 billion, the two-floor Co.opmart Kon Tum store will stock more than 30,000 items, with 90 percent of them to be supplied by Vietnamese firms. Nguyen Anh Duc, deputy general director of Saigon Co.op, said Co.opmart stores have been present in other Central Highlands provinces, Dak Nong, Dak Lak, Gia Lai and Lam Dong, for 10 years. Co.opmart Kon Tum will introduce specialties of Kon Tum Province in particular and the Central Highlands in general. The project, expected for completion and operation by the end of this year, was earlier included in the socio-economic development agreement between HCM City and Kon Tum Province in 2016-2020 signed by Kon Tum and Saigon Co.op. In mid-January, Saigon Co.op launched two Co.opmart supermarkets, with one in Chau Doc (An Giang Province) and the other in Duc Pho (Quang Ngai Province), taking the total number of Co.opmart outlets in the country to 87. http://english.thesaigontimes.vn/53451/Saigon-Coop-starts-work-on-supermarket-in-Kon-Tum.html

Live Entertainment, Yan Media, 123Go ink strategic deal 14/Apr/2017 Intellasia| The Saigon Times Live Entertainment LLC, Yan Media Group (YMG), and VNG Corporation's 123Go inked a strategic agreement in the fields of communications and event management on April 11. The cooperation will help diversify and improve their communications services thanks to their own potential and business relationships. Live Entertainment organised some successful events with tens of thousands of participants such as Disney On Ice, Escape Music Festival, Yan Beatfest, and Music Republic. The company received media sponsorships from television and digital channels. Notably, YMG assisted in programme production, and 123Go played a role as a ticket distributor for these events. Live Entertainment director Nguyen Thi Thuy Nghi said her company had difficulty with ticket distribution and payment in the past. As the company partners with YMG and 123Go, the job has become easier, besides event communications. She added resources of the three companies would be better utilised to arrange international entertainment events in Vietnam, and build their own brands for domestic events like Yan Beatfest. 123Go has launched ticket distribution channels of events with a wide variety of platforms and convenient payment methods, according to VNG's deputy general director Nguyen Hoang Tien. Customers can purchase tickets online, or offline at convenience stores and ticket-selling points. http://english.thesaigontimes.vn/53452/Live-Entertainment-Yan-Media-123Go-ink-strategic-deal.html

Digiworld expands to functional food business 14/Apr/2017 Intellasia| The Saigon Times Digiworld Corporation will distribute functional food from June beside mobile phones, computers and office equipment, said Doan Hong Viet, CEO and chair of Digiworld. If the distribution of this new product succeeds, Digiworld will develop the market and trade in more new items, Viet added. Digiworld intends to invest about VND40 billion (US$1.76 million) in the distribution expansion using the available management resources, operating software and warehouses of the distribution system of IT products and mobile phones. This healthcare product will also be distributed through pharmacies. After conducting a market and product research, Digiworld recognises the increasing demand for healthcare products, Viet said. According to statistics of the World Bank and market research companies Frost & Sullivan in the US and BMI in the UK, the total cost of healthcare in Vietnam is $13 billion in 2015 and is expected to increase to $24 billion by 2020, up 13.4 percent annually. Digiworld expects the new product will contribute VND80 billion to the company's total revenue this year, and hopes it can have profit from the new business by 2018. The corporation also expects its total revenue to reach about VND3,900 billion with key products being mobile phones, computers and digital equipment, up 2 percent over last year, and earn after-tax profit of about VND75 billion, up 12%. http://english.thesaigontimes.vn/53456/Digiworld-expands-to-functional-food-business.html

More than 520 enterprises to participate in Food & Hotel Vietnam 2017 14/Apr/2017 Intellasia| The Saigon Times More than 520 companies from 31 countries and territories have registered to participate in the Food & Hotel Vietnam 2017 held biennially in HCM City's District 7. Organised by VCCI Exhibition Service Co. and UBM Singapore Exhibition Services (UBM SES) from April 25 to 27, the exhibition will feature a rich variety of hotel and restaurant equipment and services. Covering 10,000 square meters of the Saigon Exhibition and Convention centre (SECC), the exhibition is the largest edition in its history, said BT Tee, CEO of UBM VES, the Vietnam-based subsidiary of UBM SES. There will be 20 group pavilions of Poland, Belgium, Canada, Taiwan, Denmark, Germany, South Korea, Malaysia, the US, France, Singapore, Spain, Turkey and Australia. Meanwhile, Greece, the Philippines and Ukraine are participating for the first time. The food and hospitality sector in Vietnam holds high potential for growth, attracting a great deal of attention of international enterprises as well as domestic and foreign visitors, Tee added. Didier Lachise, general director of New Viet Diary Company, a provider of food and beverage for the hotel and hospitality sector in Vietnam with more than 500 products, said that his company enjoys an annual business growth rate of about 30%. He highly evaluated the development potential of Vietnam's tourism. Vietnamese tourism has seen remarkable development in recent years with many promotional activities inside and outside the country. Specifically, the average annual growth rate of international arrivals in Vietnam in 2010-2016 was 1.57 times higher than in 2006-2010. Vietnam expects to welcome around 17- 20 million international visitors and 82 million domestic tourists by 2020. The hotel system in Vietnam is also developing strongly. The country boasted 21,000 hotels with 420,000 rooms in 2016, up 11 percent and 18 percent respectively against 2015. These include 797 hotels meeting three- to five-star standards with more than 80,000 rooms. http://english.thesaigontimes.vn/53453/More-than-520-enterprises-to

350 exhibitors to take part in international automobile fair in HCM City 14/Apr/2017 Intellasia| VNA Over 350 domestic and foreign exhibitors are scheduled to show off at the 13th Saigon Autotech & Accessories International Exhibition in HCM City from May 25-28, according to the organiser, Asia Trade Fair & Business Promotion (ATFA). Covering an area of 15,000 sq.m, the exhibition will feature about 700 booths run by domestic and foreign firms from the United States, Japan, India, Malaysia, Singapore, Indonesia, Thailand and the European Union (EU). On display are automobiles, motorcycles, electric and sport bikes, accessories & spare parts, car maintenance services and new-tech engines and smart parking solutions. Several popular names in the support industry, such as JaanE, Vina AHA, Yabanchain, Okatsune, Van Phuoc and Lotus Viet, will take part in the event. A business matching event will be held on the sidelines of the exhibition to provide a platform for domestic and overseas producers and service providers to share experience, promote their products and seek partners. http://en.vietnamplus.vn/350-exhibitors-to-take-part-in-intl-automobile-fair-in-hcm-city/110210.vnp

Da Nang to host 7th International Conference on Information Science and Technology 14/Apr/2017 Intellasia| VN Economic Times Among 125 reports to be presented at the conference, 30 are from Vietnamese scientists. The 7th International Conference on Information Science and Technology (ICTST) will be held in central Da Nang city from April 16 to 18. This is the first time the conference has been held in Vietnam. It will be hosted by the Da Nang-based Korea-Vietnam Friendship Information Technology College and the City University of Hong Kong, with technical sponsorship from the Institute of Electrical and Electronics Engineers (IEEE), with the aim of boosting cooperation among Vietnamese IT scientists and their global peers. The Vietnam News Agency has reported that 30 of 125 reports from 25 countries and territories on information technology will be presented by Vietnamese scientists. "This is the largest number of reports sent by Vietnamese IT scientists at the seven conferences held since 2011," deputy Rector of the Korea-Vietnam Friendship Information Technology College, Tran The Son, was quoted as saying by the news agency. "The conference will be chaired by Professor Sam Kwong from the City University of Hong Kong with the participation of three key speakers: Gary G Yen from the US, Zongben Xu from China and Hong Yan from Hong Kong, with other speakers coming from Macao, Italy, and the US." The Vietnamese reports primarily focus on big data, databases, visible light communications, and wireless sense security communications networks and computer science. Son added more than 1,300 critics will review the 125 reports during the conference. Nguyen Quang Vu, deputy Dean of the IT Faculty at the Korea-Vietnam Friendship Information Technology College, said there will be 12 sessions on topics such as computer science, control and automation technology, digital signal processing, IT in biology and biomedical engineering, speech coding, unsupervised learning, and brain computer interfaces. International experts will also discuss the robotics industry, smart production, navigation, smart systems in the healthcare sector, and car and motor sense control. All reports will be available on IEEE's database, Vu added. http://vneconomictimes.com/article/vietnam-today/da-nang-to-host-7th-international-conference-on- information-science-and-technology

Vietnam's Tourism Index rank improves to 67th 14/Apr/2017 Intellasia| VNA Vietnam ranks 67th among 136 economies in the recently released Travel & Tourism Competitiveness Index (TTCI) 2017, going up eight places compared to the same period in 2015. Released by the World Economic Forum (WEF) every two years since 2007, the TTCI 2017 analysed 136 economies and scored each according to three sub-indices: regulatory framework; business environment and infrastructure; and human, cultural and natural resources. The TTCI provides a means to measure a country's performance, and utilises sub-indices and their component parts to represent the overall quality, future potential and long-term sustainability of the tourism sector within each country assessed. In terms of security and safety perception, Vietnam ranks 57th, rising by 18 places. The country occupies the highest position in the sub-section, index of terrorism incidence, as well as in timeliness of providing monthly/quarterly travel and tourism data. In the context of increasing security threats, especially terrorism worldwide, Vietnam has been assessed as a safe destination with stable political conditions. However, when it comes to international openness, the country ranks only 73th. Vietnam's place in the openness of bilateral air service agreements index has improved by three places, reaching 40th, but the lowest place in the index belongs to visa requirements, indicating that the country has yet to catch up with other regional tourist destinations such as Thailand and Malaysia, which have eased visa requirements over the years. This can be a hindrance when it comes to connecting with other regional destinations and integrating into global economy. Vietnam made significant progress in its human resources and labour market scores (37th, up 18 places), thanks to a better-qualified labour force (53rd) and partial simplification of regulations to hire foreign labour (75th). The country also saw exceptional improvement of its information and communications technology capacity and usage (80th, up 17). Courtesy the country's increasing online presence, searches related to Vietnam's natural tourism are growing, which helped it rise in the appeal of its natural resources index (up six places). At the same time, continued economic development has led to expanding business travels (further increase by three spots). To continue enhancing the sector's competitiveness, Vietnam should focus on environmental sustainability (129th). Lax regulations (115th), high levels of emissions (128th), deforestation (103rd) and limited water treatment (107th) are collectively damaging the environment and should be addressed, perhaps at a multilateral level, to build the foundation for more sustainable development. http://english.vietnamnet.vn/fms/travel/176456/vietnam-s-tourism-index-rank-improves-to-67th.html

Malaysian medical tourism attracts Vietnamese 14/Apr/2017 Intellasia| The Saigon Times More and more Vietnamese are travelling to Malaysia for medical tourism, which prompts the Malaysia Healthcare Travel Council to prop up publicity here in Vietnam. Sherene Azura Azli, CEO of the Malaysia Healthcare Travel Council, or Malaysia Healthcare, said nearly 10,000 Vietnamese traveled to Malaysia for medical treatment in 2016 and they spent RM10.8 million (about $2.43 million) on this purpose, up 86 percent against 2015. About 50 percent of the Vietnamese patients visit Malaysian hospitals for cancer and cardiovascular disease treatment, she said at the launching ceremony of the website YTE Malaysia on Tuesday. This is the first website built abroad by Malaysia Healthcare to equip Vietnamese patients with necessary information on medical tourism including hospital facilities and health experts. Sherene Azura Azli highlighted the high quality and competitive cost of medical treatment services in Malaysia, saying medical treatment costs for foreign visitors are not much higher than locals. Malaysia Healthcare will also open representative offices in HCM City and Hanoi. The council will cooperate with its strategic partner Insmart to launch "My Health Programme" to promote Malaysian healthcare services in Vietnam. The programme is aimed to connect hospitals and clinics with professional medical services and experienced doctors in Malaysia to provide the best services in Vietnam. The Malaysia Healthcare Travel Council is an agency under the Malaysian Ministry of Health tasked to develop the medical tourism sector of the country. http://english.thesaigontimes.vn/53459/Malaysian-medical-tourism-attracts-Vietnamese.html

CJ CGV Rings up Record High Ticket Sales in Vietnam Last Month 14/Apr/2017 Intellasia| Business Korea CJ CGV said that the company drew over 1.6 million audiences and chalked up about 7 billion won (US$6.3 million) in ticket sales in Vietnam in March. Based on the strong performances in March, the company recorded the highest quarterly performance of attracting four million viewers and posting 18 billion won (US$16 million) in ticket sales in the first quarter of the year. Although CGV Vietnam played a big role in screening the film "Kong: Skull Island," the company's direct distribution and marketing of the film greatly contributed to making the film the top grossing film in the history of Vietnam. As a result, CGV Vietnam is solidifying its position as the number one film distributor in the country. Inspired by the fact that the film "Kong: Skull Island" was shot in Vietnam, CGV Vietnam promoted the film as a must-see film among Vietnamese people. Based on the catchphrase that the film is the first Hollywood blockbuster which was filmed in Vietnam prior to the release of the film, CGV Vietnam ran advertisements with its trailer with behind-scene footage clips of actors and promotional tourism videos on film locations. A 12-metre-tall King Kong statue was installed to attract more attention from Vietnamese people. In particular, by taking advantage of its know-how in running special screening halls, CGV Vietnam played "Kong: Skull Island" in various screening halls such as a general hall, Gold Class (premium movie theater), L'amour (for watching films on beds), special 4DX (five-sense experience screening hall), and an IMAX hall (ultra-large screen digital screening hall with a laser screening system). "CGV Vietnam is the number one theater operator and distributor in Vietnam, which accounts for 50 percent of box office sales and 65 percent of distribution," said Kwak Dong-won, managing director of CJ CGV Vietnam. "This "Kong: Skull Island" case will go down in history as a good example of overcoming an off-peak season and greatly expanding the local film market." http://www.businesskorea.co.kr/english/news/industry/17823-leading-vietnamese-movie-industry-cj-cgv- rings-record-high-ticket-sales-vietnam

Air and train fares jump for upcoming holiday 14/Apr/2017 Intellasia| The Saigon Times Air and train ticket prices during the Reunification Day (April 30) and International Labour Day (May 1) holiday have soared due to high demand. According to some ticketing websites, most ticket prices of flights from April 28 to April 30 have increased sharply. For example, Vietjet Air has hiked the fare for the Hanoi-Phu Quoc service on April 28 to more than VND3.1 million (exclusive of taxes and fees) from VND1.7 million on April 27. Meanwhile, tickets for Vietjet's Hanoi-Phu Quoc flights on April 29 are fully booked. Similarly, Vietnam Airlines charges VND3.3 million on April 28 on this same route, compared to more than VND1 million on April 27. The price hike also applies to other routes such as Hanoi - Nha Trang, HCM City - Phu Quoc and HCM City - Danang. Representatives of airlines said that due to high travel demand during the holiday, they have to add flights and increase ticket prices to offset their higher operating costs. Meanwhile, train tickets from HCM City to tourist destinations like Nha Trang also recorded a strong increase. For example, the fare for the HCM City - Nha Trang route has edged up to VND216,000 from VND141,000, while the price of tickets on a sleeper carriage has increased to VND482,000 from VND337,000 before the holiday. Prices of bus tickets to other provinces such as Ba Ria-Vung Tau, Binh Duong, Dong Nai, Lam Dong and Quang Ngai during the holiday have also soared 30-40%. In related news, Vietnam Airlines announced to add 175 one-way flights on eight domestic routes during the upcoming holiday, with a total supply of over 180,000 seats, up nearly 25 percent compared to ordinary days and 15 percent over the same period last year. Extra flights during the peak period from April 27 to May 3 mainly focus on routes from Hanoi and HCM City to tourism destinations such as Danang, Nha Trang and Phu Quoc. Vietnam Airlines adds over 100 flights for Hanoi/HCM City - Danang routes, 40 flights for Hanoi/HCM City - Phu Quoc routes and 18 flights for Hanoi/HCM City - Nha Trang routes. http://english.thesaigontimes.vn/53450/Air-and-train-fares-jump-for-upcoming-holiday.html

'I've never aimed at being a billionaire' - Vietjet CEO 14/Apr/2017 Intellasia| Vnexpress Vietnam's richest woman with an estimated net worth of $1.2 billion says she's not used to the new title yet. CEO of Vietnam's rising budget carrier VietJet said her main goal in business is not money or a "billionaire" title, which she received last month as the only self-made woman billionaire from Southeast Asia. "To be honest, I'm not used to it yet," Nguyen Thi Phuong Thao, 46, said during the Forbes Vietnam Women Summit 2017 on Wednesday. "During my 30 years in business, I've never counted my money and I've never aimed at being a millionaire or billionaire," Thao said. She said she did not grow up poor and thus earning money was never her primary goal. Her main concern, she said, is to build a strong stand for her business. Thao studied economics and finance in Soviet Russia in the 1980s. She founded VietJet, the country's only private airline, in December 2011, after starting her career trading commodities in Eastern Europe and Asia. The "bikini" airline, nicknamed after its unique yet controversial promotional campaign for depicting a female crew in bikinis, now makes up 41 percent of the domestic air travel market, only one percentage point behind the national carrier Vietnam Airlines. It went public on February 28 and, in less than a week, reached the market value of $1.8 billion, ahead of Vietnam Airlines' $1.7 billion. Thao said her carrier is not competing directly with Vietnam Airlines. "We create our own customers. We do not take them from others." She said around 30 percent of VietJet's passengers never flew before and more than half of their air routes are brand new. http://e.vnexpress.net/news/business/i-ve-never-aimed-at-being-a billionaire-vietjet-ceo-3569672.html

Economy

High growth, high risk of lag forecast for Vietnam 12/Apr/2017 Intellasia| The Saigon Times Though Vietnam has one of the highest growth rates in Asia, the possibility of it lagging behind other countries is huge, according to the Asian Development Bank (ADB). High growth Vietnam's GDP growth is projected to be 6.5 percent in 2017 and 6.7 percent in 2018, says a report published by ADB in Hanoi on April 10. With growth forecast at 6.5 percent in 2017, Vietnam is one of the Asian nations to grow well, ADB Country director in Vietnam Eric Sidgwick said at the launch of the Asian Development Outlook (ADO 2017). "The economic outlook is bright." The main growth drivers, according to ADB, include foreign direct investment (FDI). ADB predicted FDI disbursements will be about $15 billion and pledges will further rise despite the TPP failure. Besides, Vietnam has become a manufacturing hub of the region. Its exports have outperformed many Asean countries with annual growth of up to 8.3 percent in recent years. The proportion of Vietnamese exports in Asean expanded from 7 percent in 2009 to 14 percent in 2015. In particular, the share of high-tech goods jumped from 2 percent to 12 percent of the region's total exports. Another factor, said Sidgwick, is the rapidly growing middle class, which also helps fuel economic growth. It is expected that the group with average income of more than $8,500 a year will double between 2014 and 2030, numbering 33 million. As a result, wholesale and retail sales have increased by an average of nearly 9 percent over the past five years. "This is a new growth engine for Vietnam," he said. Asked whether ADB is optimistic about Vietnam's economic prospects, Sidgwick said: "Are we highly optimistic? I do not think so." He said Vietnam was still facing many challenges such as public debt, overspending, reform of State- owned enterprises and slow growth of agriculture. "In order to achieve such growth, we suggest many policies attached. For example, it is necessary to reduce budget deficit, introduce good policies to develop the domestic financial market." Risk of lag However, Vietnam's growth remains "below the necessary level" to become a high-income country by 2030, said ADB's chief economist in Hanoi, Aaron Batten. "Vietnam still faces the risk of lagging behind as GDP growth remains below 7 percent a year," Batten said. He added that if growth was two percentage points higher, Vietnam would be able to reach a high average income by 2026. ADB commented that agricultural growth had been still around 2.4 percent per year since 2011, which is a low rate. "If annual agricultural growth stands at 5 percent, Vietnam's economic growth could amount to 7 percent," he added. In addition, Vietnam's labour productivity is much lower than in other Asean countries, one-third of Indonesia's, and half of the Philippines' or Thailand's. Meanwhile, Sidgwick explained: "Agricultural growth will not only help promote growth, but also bring greater benefits to farmers. Their benefit rate is not as high as it ought to be." Sidgwick added Vietnam's economic growth had been good from the mid-1990s to the mid-2000s, with per capita income soaring and many good results in the long run. Vietnam developed better in that period. "ADB's ADO outlines a number of factors that need to be addressed. Now, everyone understands (the challenges to growth). However, the government is having a hard time figuring out what to do. That's the difficulty for Vietnam," he said. http://english.thesaigontimes.vn/53395/High-growth-high-risk-of-lag-forecast-for-Vietnam.html

ADB: Bright prospects for Vietnam in medium term 12/Apr/2017 Intellasia| Vneconomic Times Asian Development Bank sees continued economic improvements in immediate future. After Vietnam's economy performed slightly below expectations in 2016, the Asian Development Bank (ADB) forecasts it will increase modestly this year, with growth of 6.5 per cent followed by a further strengthening to 6.7 per cent in 2018. "Over this period, growth will be driven by continued high foreign direct investment, rising domestic consumption and demand, and an expected modest recovery in both agriculture and mining," Eric Sidgwick, ADB Country director for Vietnam, told the "Asian Development Outlook 2017: Transcending the Middle-income Challenge" conference held in Hanoi on April 10. ADB forecasts inflation of 4 per cent this year and 5 per cent next. An expected rise in global food and fuel prices, higher interest rates in the US, and a stronger US dollar will add to imported inflation. Another likely source of inflation is the continued implementation of the government's road map on administered prices for education, health, electricity and water, as well as minimum wages. Higher growth and inflation is therefore set to cause the current account surplus to narrow. Merchandise exports will rise by an annual 10 per cent over the next two years as new foreign-invested factories begin producing and new trade agreements take effect. Growth in services, strong in 2016, is projected to remain so in 2017 and 2018, with tourist arrivals further boosted by the new e-marketing campaign launched by the government recently. Vietnam continues to ride a wave of foreign direct investment (FDI), which reached a record in 2016 and with new commitments suggesting that disbursements are likely to continue upwards in 2017 and 2018. During the first quarter, disbursements were $3.6 billion, up 3.4 per cent year-on-year. Construction will continue to benefit from high FDI disbursements setting up new factories, a strengthening housing sector, and continued high public investment in transport and energy. Manufacturing will also be boosted by the continued opening of new foreign-invested factories. Imports are likely to rise even faster as larger FDI inflows draw in additional imports of capital goods and manufacturing inputs. The current account surplus is expected to moderate to 2 per cent of GDP this year and 2.5 per cent in 2018, according to the ADB. Prospects for private investment seem bright. Reform to business practices has helped move Vietnam up in the World Bank's Doing Business rankings from 91 among 189 countries surveyed in 2016 to 82 among 190 in 2017. Ongoing reforms to allow greater foreign ownership of domestic stocks and State-owned enterprises along with reforms to facilitate private participation in building infrastructure should encourage private investment. The number of newly-established enterprises hit a record high of 110,000 in 2016, up 16.2 per cent against 2015. The Nikkei Purchasing managers' Index, which measures expectations for business inventories, reached a record high in February, with a particularly sharp rise in new orders to manufacturers. Vietnam is also expected to benefit from the implementation of the European Union - Vietnam Free Trade Agreement (EVFTA) in 2018, which will create many new business and trade opportunities. Public debt pressures have prompted the government to set ambitious targets for the budget deficit, reining it in to 3.5 per cent of GDP this year and holding it at about 4 per next year, according to the ADB. Most of the reduction in the fiscal deficit would, however, be due to higher receipts from the sale of equity in State-owned enterprises (SOEs), which the government treats as revenue. Excluding those receipts, fiscal deficit reduction will be much more modest. On the expenditure side, the government plans to cut recurrent expenditure by 6 per cent while raising capital expenditure by 36 per cent. Achieving fiscal consolidation over the medium term will be challenging and require deeper tax reform, better revenue administration, and much more efficient public expenditure. Caution is needed, ADB believes. Despite booming industry and service sectors, overall GDP growth remains below 7 per cent per annum. "Vietnam will not reach upper-middle income status until around 2031 at current growth rates," Aaron Batten, ADB's Country Economist for Vietnam, told the conference. "Lifting growth by 2 per cent would accelerate that to 2026. Sound policies, therefore, are the priority for the government in sustainably lifting long-term GDP growth back above 7 per cent." http://vneconomictimes.com/article/vietnam-today/adb-bright-prospects-for-vietnam-in-medium-term

ADB urges Vietnam to cut budget deficit 12/Apr/2017 Intellasia| The Saigon Times Vietnam will have to reduce its budget deficit in an "ambitious" way to stabilise the economy, says the Asia Development Outlook (ADO 2017) report released in Hanoi on April 10 by the Asian Development Bank (ADB). Mounting public debt pressure has prompted the government to set ambitious targets for the budget deficit, 3.5 percent of GDP in 2017 and about 4 percent next year. However, ADB believes most of the reduction in the fiscal deficit would be due to higher receipts from the sale of equity in State-owned enterprises, which the government treats as revenue. "Excluding those receipts, fiscal deficit reduction will be much more modest," the ADB report states. ADB Country director in Vietnam Eric Sidgwick said at the launch of ADO 2017 that "the sale of State capital helps offset the budget deficit but not permanently since it is sold only once. For the long run, more radical measures are needed." The government needs to secure the revenue side by boosting growth, tackling the budget deficit and cutting down on spending in the long run to reduce public debt, he explained. On the expenditure side, the government plans to cut recurrent expenditures by 6 percent while raising capital expenditure by 36 percent. Achieving fiscal consolidation over the medium term will be challenging and require deeper tax reform, better revenue administration, and much more efficient public expenditure, ADB says. Last year, efforts to rein in the fiscal deficit yielded limited success, says the bank in its report. Although government revenue grew by 12 percent to reach the equivalent of 23.1 percent of GDP, it was outstripped by expenditure growth, resulting in an on-budget deficit equaling to 4.4 percent of GDP, significantly higher than the 2015 figure of 4 percent. This is a matter of concern as public debt including government-guaranteed debt is now estimated to exceed 63 percent of GDP, nearing the 65 percent limit set by the National Assembly. Bad debt is still high ADB comments that vulnerability in the financial sector poses a risk to the outlook. The restructuring of banks and the settlement of non-performing loans (NPL) have made less-than-expected progress, leaving banks exposed to large contingent liabilities. As the central bank targets credit growth at 18 percent in 2017, the rise of domestic lending at a faster rate than deposit growth also challenges the maintenance of adequate liquidity at banks. The capital adequacy ratio was reported at an estimated 12.8 percent at the end of 2016, comfortably above the regulatory minimum of 9 percent, but it was not calculated according to international Basel II standards. With the government planning to have all banks meeting Basel II capital standards by 2020, they will likely need capital injections from foreign investors. This will require significant legal changes including the lifting of limits on foreign ownership at banks. In addition, ADB describes progress in reforming the financial sector as elusive. Although the officially reported NPL rate in 2015 and 2016 remained low, at about 2.5 percent of outstanding loans, this largely reflected the transfer of $12.7 billion in NPLs from banks to Vietnam Asset Management Company (VAMC). By the end of 2016, the company had settled only 18 percent of the NPLs purchased from banks. The settlement of NPLs would thus depend on how fast it can deal with assets used as collateral. Moreover, progress in consolidating the banking system continues to languish, with no mergers or acquisitions completed in 2016. http://english.thesaigontimes.vn/53391/ADB-urges-Vietnam-to-cut-budget-deficit.html

VEPR: Growth target of 6.7pct beyond reach 12/Apr/2017 Intellasia| The Saigon Times Vietnam will not be able to obtain this year's gross domestic product (GDP) growth target of 6.7 percent given the poor economic performance in quarter one, the Vietnam Institute for Economic and Policy Research (VEPR) said. The institute forecast the economy would expand by 6.1 percent this year, and the full-year inflation rate may be below 5 percent, according to a report on quarter-one macro-economic conditions released by the institute on April 10. However, the inflation rate would likely to be higher than expected as a result of rising public service costs nationwide and global price uncertainty. In regards to the economic situation in quarter one, VEPR said the unexpected slowdown in industrial manufacturing led to lower-than-expected GDP growth. The nation's GDP growth has been heavily dependent on the foreign direct investment (FDI) sector, especially some large-scale enterprises like Samsung. Similarly, trade has achieved strong growth but export volumes have not recovered yet. Meanwhile, the export proportion of the domestic economic sector has dropped to 28 percent in value. This showed the domestic manufacturing sector has become increasingly vulnerable in the international integration process. Notably, the industrial production and consumption indexes have dipped to five-year lows as inventories have built up. VEPR director Nguyen Duc Thanh said that if shrinking growth is attributable to Samsung's seasonal manufacturing and exporting performance, it only shows that the Vietnamese economy is more dependent on a few multinational corporations and major industries. He said the national industrial sector has been less competitive, an indication that it is losing in the process of global economic integration. The FDI inflow into the nation has shown signs of decline through disbursed and newly-registered capital. The competitive advantage of attracting FDI through the Trans-Pacific Partnership trade pact has been lost, which only reveals Vietnam's disadvantages in integrating into the Asean Economic Community. Therefore, enhancing the competitiveness of the economy is an urgent need, he added. http://english.thesaigontimes.vn/53397/VEPR-Growth-target-of-67-beyond-reach.html

Economy still improving but could be hurt by external factors: NFSC 12/Apr/2017 Intellasia| DTI News Vietnam's economy is still continuing the upward trend, especially in agriculture and manufacturing, but growth could be hurt by external factors, according to the National Financial Supervisory Commission (NFSC). The NFSC said aggregate demand would improve in the time ahead, thanks to growing public investment capital in key projects and projected strong disbursement of capital for high-tech agriculture. In addition, although the US could begin imposing trade protection measures in 2017, Vietnam's export growth could be higher than in 2016 given the outlook of strong recovery in the US and global economies. Meanwhile, aggregate supply, though struggling in the first quarter, is forecast to recover, thanks to a strong growth in industrial and agricultural production. Industry will be boosted by stronger manufacturing, higher oil prices and larger imports of machinery used in production while favourable weather will make agriculture's growth target of 2.7-2.8 percent more feasible. However, external factors are exerting negative effects on growth in the short term, making it more challenging for Vietnam to achieve a growth target of 6.7 percent this year. Vietnam's economy expanded by 5.1 percent in the first quarter of 2017, less than the 5.48 percent during the same period, last year, due to weaker activity in mining and construction. The recovery of global commodity prices was not strong enough for Vietnam to increase mining output, causing the sector to slump 10 percent in the three months to March, due to a 14.9 percent decrease in oil output and 5.6 percent in coal output. http://www.dtinews.vn/en/news/018/50374/economy-still-improving-but-could-be-hurt-by-external- factors--nfsc.html

Deputy PM urges faster sale of State capital 12/Apr/2017 Intellasia| VNS In the next round of equitisation, State capital must be sold faster, at higher value, and the enterprises' corporate governance must further improve, deputy prime minister Vuong Dinh Hue has said. Hue was speaking at a meeting on equitisation and the restructuring of State-owned enterprises (SOEs) in Ha Nội on Monday. Though 96.5 per cent of the SOEs have been equitised so far, only 8 per cent of State capital has been sold. Therefore, up to 92 per cent of State capital remains unequitised, meaning that the country need to do more to attract private investment capital in industries and sectors that the government does not need to hold stakes in, Hue said. "The responsibility of individuals and organisations involved in the equitisation processes must be determined. Leaders and representatives of state capital in SOEs who deliberately violate regulations, perform poorly and delay equitisation must be punished strictly," he said. Equitisation must be done both urgently and strictly because though not many SOEs need to be equitised, the State capital waiting for equitisation remains very high, Hue said. In the first quarter of 2017, nine SOEs with a combined book value of VND71.8 billion (US$3.14 million) were equitised, helping the State gain VND72.8 billion. Le Mạnh Ha, deputy Chair of the government Office and deputy Head of the Steering Board for SOE Renovation and Development, said that as per the prime minister's decision, in the 2016-20 period, the country has to equitise 137 SOEs belonging mostly to four ministries, located in 32 cities and provinces, and from four economic sectors. As per the approved plan, the SOEs have to submit their restructuring and equitising plans every year to the prime minister for approval in the first quarter itself. However, only two ministries, two cities and provinces, and two economic sectors have met the deadline. Ha said the delay has made it difficult for the government to assess and boost the equitisation process. Representatives from ministries and sectors attributed the delay to the fact that the SOEs that have to be equitised are large-sized with capital of trillions of Dồng, such as Vietnam National Coffee Corporation, Vietnam Posts and Telecommunications Group, PetroVietnam, Electricity of Vietnam, Vietnam Rubber Group, Vinafood 1 and 2. Le Minh Chuẩn, chair of Vietnam Natural Coal and Mineral Industries Group (TKV), said that finding strategic investors for SOE equitisation was very tough as the amount of State capital that needed to be equitised was huge. TKV has so far equitised 61 of its 80 subsidiaries, and divested from non-core business, gaining more than VND2 trillion. Many issues are still to be resolved, according to Chuẩn, so the parent company will complete its pricing appraisal only in 2019. Another reason for the delay is that concerned ministries and agencies are waiting for the government to complete the revised Decree 59/2015/ND-CP on converting SOEs into joint stock companies to ease equitised firms into land value appraisals. Ha Cong Tuan, deputy minister of agriculture and rural development, said Vinafood 1 and Vietnam National Coffee Corporation would complete their corporate value appraisals in the third and fourth quarter of this year, respectively. However, Tuan admitted that the companies are waiting for the decree. http://vietnamnews.vn/economy/374473/deputy-pm-urges-faster-sale-of-state- capital.html#gv51rz6zOEI3IoLC.99

Australia & WB renew support for development agenda 12/Apr/2017 Intellasia| VN Economic Times Two sign new five-year partnership to continue joint support to Vietnam's sustainable and inclusive economic reform agenda. Australian Ambassador to Vietnam, H.E. Craig Chittick, and World Bank Country director Ousmane Dione, signed a new five-year partnership on April 11 to continue their joint support to Vietnam's sustainable and inclusive economic reform agenda. Australia will provide A$25 million ($18.7 million) to the World Bank to carry out the partnership over the next five years. Key achievements in the first phase of the partnership include improved national connectivity and access to markets for businesses, farmers and the poor by constructing over 200 km of rural roads, upgrading national highways, and building 87 bridges, increased sustainable access to clean water and sanitation through the introduction of innovative mobile phone technologies to monitor water use, and improved poverty reduction strategies for rural communities in the northern mountains through providing policy advice on a new Law on Ethnic Minorities. "One of the great achievements in the first phase was supporting the government to develop the Vietnam 2035 report - a bold and ambitious vision for Vietnam's economy in the next 20 years," said Ambassador Chittick. "Through the second phase of the partnership, Australia looks forward to working with the World Bank to support Vietnam in implementing this vision so that all citizens benefit." "The first phase of the partnership created strong synergy to support Vietnam's development agenda," Dione added. "We have seen that joint work in critical policy and reform areas has a greater impact and influence than working individually. This stepped-up engagement will be mutually beneficial and help deliver stronger development results for Vietnam." Focusing on the areas of trade and competitiveness, transport, ethnic minorities, and the Mekong Delta, with the crosscutting issues of gender and innovation, the partnership will support Vietnam in implementing reform priorities identified in its Socio-Economic Development Plan 2016-2020 (SEDP). Vietnam's transition to a market economy has transformed it from one of the world's poorest countries into a lower middle-income country. It faces ongoing challenges, however, to continue growth and poverty reduction in an inclusive and sustainable manner. Given Vietnam's stage of development, its greatest needs are now assistance with developing and implementing its own policies and programmes to support key reform challenges. This includes strengthening institutions, fostering inter-ministerial coordination and cooperation, and building the capacity of the public sector. In 2012, Australia and the World Bank established a partnership to provide such support. Drawing upon the strengths and experience of both in Vietnam, the partnership allowed them to work together on shared priorities and achieve greater impact. This second phase of the partnership will build on previous successes to further progress Vietnam's priority economic reforms, targeting five key issues: Trade and Competitiveness, Transport, Mekong Delta Climate Resilience, Gender, and Ethnic Minorities. http://vneconomictimes.com/article/vietnam-today/australia-wb-renew-support-for-development-agenda

Law on special administrative-economic units in progress 12/Apr/2017 Intellasia| The Saigon Times Deputy prime minister Truong Hoa Binh has asked the Ministry of Planning and Investment to coordinate with relevant agencies and the provincial governments of Quang Ninh, Khanh Hoa and Kien Giang to quickly draw up the Law on Special Administrative-Economic Units. Van Don (Quang Ninh), North Van Phong (Khanh Hoa) and Phu Quoc (Kien Giang) will become special administrative-economic units when the draft law is passed by the National Assembly (NA), according to the government Office. The deputy prime minister wants the law to take into account the characteristics of each unit. The contents, mechanisms and policies on socio-economic incentives must be prescribed in the law, with competition with against the region and the world ensured. The governments of Quang Ninh, Khanh Hoa and Kien Giang should take the initiative in conceiving master plans and projects for investment and development, focusing on the major sectors in line with the trend of the world, the capacity, comparative advantages and practical conditions of each locality. The Ministry of Defense and the Ministry of Public Security should coordinate with agencies and localities concerned in formulating schemes for national defense and security as well as social order and safety in special administrative-economic units. The Ministry of Planning and Investment together with other relevant agencies should heed opinions of the Politburo and finalise the related documents for submission to the NA for the NA deputies to contribute their ideas. Recently, the planning ministry has published this draft law for comment. This move of the government came after the Politburo issued Notice 21-TB/TW on the proposals for the development of the three special economic-administrative units on March 22. The notice affirms that the development of the aforesaid units is a major policy of the Party. Therefore, it is necessary to resolutely carry out it, step by step in a firm manner, with experience drawn in the process. The notice states that the establishment of these special economic-administrative units under the provincial government has been approved, with an aim of making the best use of the regional potentials with outstanding advantages. Special administrative-economic units are magnet for investment, high technology and advanced management mode for the formation of a high growth area that generates more resources and motivation, accelerating the development and economic restructuring of the province, the region and the country. The organisational structure and model of such units shall be prescribed by the Law on Special Administrative-Economic Units. http://english.thesaigontimes.vn/53368/Law-on-special-administrative-economic-units-in-progress.html

Management model of Phu Quoc special zone unveiled 12/Apr/2017 Intellasia| The Saigon Times The government model of Phu Quoc special administrative and economic zone would be built based mainly on merging agencies under the Party committee and the People's Committee of the island district off mainland Kien Giang Province. Pham Vu Hong, chair of Kien Giang Province, reported developments of the scheme to develop Phu Quoc into a special administrative and economic zone to Permanent deputy prime minister Truong Hoa Binh at a working session in the province last Saturday. Military, security, prosecution, court, customs, State treasury, tax and social insurance agencies in the island district of the Mekong Delta province would be re-organised in accordance with the planned administration model. The Phu Quoc special administrative economic zone is envisaged operating on a one-level urban government model, and the current communes and town would be transformed into sub-zones. On top of that, the model does not include a People's Council in the special administrative and economic zone. The development scheme has been worked out in more than eight years based on instructions and documents of the Politburo, the government, ministries, agencies and the authority of Kien Giang, including Announcement No. 21-TB/TW dated March 22, 2017 conveying the Politburo's conclusion on development schemes for special administrative and economic zones. Hong said Kien Giang Province would develop the Phu Quoc special administrative economic zone on the market principle and an economic growth model with a high level of openness backed by breakthrough policy incentives and less State intervention. The recreational, tourism, resort and financial-banking service sectors and a sea-based economy are expected to play as key drivers for the long-conceived zone. Phu Quoc will be supported to become a major tourism and service hub in not only Vietnam but also Southeast Asia. Hong said Kien Giang Province will set up a provincial-level steering committee headed by the secretary of the province's Party Committee to guide on the building of an operation model for the Phu Quoc special administrative economic zone. Relevant agencies will prepare proper institutions and build an e-government and a public administrative service centre; mobilise finances (an estimated $40 billion) until 2030 to fund the zone's development; develop high-quality human resources; boost research, application and transfer of scientific and technological advances; and work out tax incentives and policies to attract talent. Efforts will also focus on policy incentives for the real estate sector; immigration and residence of foreigners and overseas Vietnamese, as well as measures to ensure defense and security. Deputy PM Truong Hoa Binh underlined the importance of having a well-functioning government apparatus to effectively govern and map out institutions and policies for administration, investment and trade in line with Vietnam's law and international standards to enable the Phu Quoc special administrative economic zone to attract investors and compete with similar zones in the region. The institutions and policies must be consistent in the long term. Binh called for the agency in charge of drafting the law on special administrative and economic zones to attend to the specific characteristics of each zone and weigh breakthrough socio-economic policies in compliance with Vietnam's law for the zones to compete regionally and globally. Binh urged the island district to adopt incentives to speed up infrastructure development and human resource development, and attract investors and high-quality labourers, and streamline administrative procedures. The island should make the most of its advantages to accelerate growth. Besides infrastructure development, Binh also requested relevant agencies consider applying breakthrough policies for the tax, customs, financial and banking sectors to make it easy for the Phu Quoc special administrative economic zone to lure investors and skilled labourers. It is crucial to establish a competent judicial agency able to deal with economic and trade disputes as well as crimes related to technology and intellectual property rights. More working sessions and comprehensive assessments based on international experiences, zoning and attraction of strategic investors are needed to improve the draft law on special administrative and economic zones before it goes before the National Assembly so that it, once passed, will drive the growth of the zones. The government proposed the legislature add the draft law to its law making programme for 2017. http://english.thesaigontimes.vn/53362/Management-model-of-Phu-Quoc-special-zone-unveiled.html

Prudent monetary policy helps control inflation in Q1 12/Apr/2017 Intellasia| VNA The State Bank of Vietnam (SBV)'s continuation of a prudent monetary policy is a reason for the slight year-on-year decrease of the core inflation in the first quarter of 2017. The assessment was made by director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh at a meeting in Hanoi on April 10 to release a report on Vietnam's macro- economy in Q1. The VEPR research team cited the SBV as saying that money supply in the first three months of 2017 increased 3.52 percent from the end of 2016, slightly lower than that in the same period last year. The first quarter posted the fastest credit growth rate in many years, 4 percent compared to the end of 2016, indicating businesses' stronger absorption of capital. However, the modest rise in the mobilised capital led to a gap between capital mobilisation and lending which might be the cause of the recent slight disturbance in inter-bank interest rates. VEPR researchers said although the pressure on inflation showed signs of easing in Q1, it remains big, especially when the economic growth between January and March (5.1 percent) is much lower than the 6.7- percent target for the whole year set by the National Assembly. It is hard to control inflation at below 4 percent in the next months since the domestic consumption demand and global prices of basic commodities will rebound while prices of public services will be adjusted as scheduled, they said. Expert Truong Dinh Tuyen said if the US's Federal Reserve continues to hike interest rates, the US dollar will get stronger, putting more pressure on the VND/USD exchange rate and inflation. http://en.vietnamplus.vn/prudent-monetary-policy-helps-control-inflation-in-q1/110043.vnp

Rising import value causes rates to fluctuate: NFSC 12/Apr/2017 Intellasia| VNA The fluctuation of foreign exchange in the first quarter was due to a sharp rising import value, according to the National Financial Supervisory Commission (NFSC). Statistics from the general Department of Customs indicated that the country's trade deficit in the first quarter of this year was roughly 1.9 billion USD, compared with a trade surplus of roughly 1 billion USD in the same period in 2016. The trade deficit in Q1 of 2017 was equal to 4.4 percent of the country's total export revenue in the period. Experts said that the main reason for the rising import value was the strong increase in the demand for imported machinery and equipment, due to stronger economic growth prospects in 2017. The NFSC, the government's financial watchdog, said that after declining in the first month of the year, the VND/USD exchange rate at commercial banks has risen significantly since mid-February and often approached the cap listed by the central bank. By March 20, the dollar was quoted at 22,820 VND per USD, up roughly 0.13 percent against early this year. In the unofficial market, the dollar also accelerated to hit 23,000 VND per USD in the first half of February. It has cooled down since and is now close with that listed by commercial banks. The central bank's reference exchange rate by March 20 was also adjusted up 0.47 percent, the NFSC said. The NFSC also forecast that the country's foreign currency supply source in the entire 2017 could be at a disadvantage compared with last year due to the trade deficit. Last year, the country's trade surplus hit an 11-year-high of more than 2.52 billion USD. However, a high trade deficit was forecast for 2017. The government has planned a trade deficit that was to equal roughly 3.5 percent of the country's total export value. The country's foreign currency supply source this year was also forecast to reduce in the wake of a restriction of official development assistance (ODA) sources from July this year. According to released itineraries, the World Bank is due to stop the preferential ODA sources for Vietnam from July this year. NFSC also noted the volatility of the yuan and stated that a sharp devaluation in the currency would make a big negative impact on Vietnam's economy due to the country's rising trade deficit with China. The trade deficit rose to 28 billion USD in 2016 from 23.7 billion USD in 2013. If compared with the GDP, Vietnam's trade deficit with China was 14 percent, which was much higher than the 2 percent trade deficit of the United States (US) and China, the NFSC noted. The committee forecast that the US Federal Reserves (Fed)'s interest rate hike has not caused any pressure on the foreign exchange in 2017 as the interest rate of dong deposits are still more attractive than the dollar deposits. According to the central bank, interest rate averages between 4.8 percent and 5.4 percent per year for dong deposits below six months, 5.6 percent to 6.7 percent per year for 6- to 12-month dong deposits and 6.7 percent to 7.4 percent per year for dong deposits above 12 months. The interest rate for dollar deposits is zero percent. http://en.vietnamplus.vn/rising-import-value-causes-rates-to-fluctuate-nfsc/110045.vnp

Budget revenues up 15 per cent in Q1 12/Apr/2017 Intellasia| VNS Budget revenues were estimated at VND280.9 trillion (US$12.4 billion) in the first quarter of this year, up 15.2 per cent compared to the same period in 2016 and meeting 23.2 per cent of the annual estimate, the Ministry of Finance (MoF) said yesterday. Domestic collection for the period was VND232 trillion, equivalent to 23.4 per cent of the projected revenues, and 13.3 per cent higher than the same period last year. In March, revenues from crude oil exports were estimated at VND3.95 trillion, down nearly VND400 billion compared to the previous month due to large redundant supply, the MoF said. However, budget revenues from crude oil exports in the whole quarter reached roughly VND11 trillion, meeting 28.9 per cent of estimates, up 15.9 per cent against 2016. Import-export activities contributed VND66.8 trillion to the State budget, totalling 18.5 per cent higher than the same period last year, and equalling 23.4 per cent of targeted revenues. Budget collections from production and business activities grew strongly compared with last year, with 25.4 per cent collected from the private sector, 30.3 per cent from personal income tax and 35.2 per cent from housing and real estate tax. The MoF attributed the robust results to the close and effective coordination between central and local authorities. The results represent the sound leadership of the government, the directions of the finance ministry and the efforts of tax authorities who strengthened budget collection measures early this year to prevent shortfalls in the middle and end of the year. The increase in revenue may also be attributed to the vigorous economic growth in the last quarter of 2016, with GDP growth in the fourth quarter estimated at 6.68 per cent, the MoF said. Meanwhile, budget expenditure reached nearly VND285 trillion in the first quarter, up 7.8 per cent from the same period last year and equivalent to 20.5 per cent of the annual plan. Expenditures for development investment were recorded at VND44.1 trillion, while debt payment and interest expenses totalled VND29.1 trillion, and regular spending reached VND 211.2 trillion. Overspending stood at over VND4 trillion, 2.27 per cent of the yearly estimates, the MoF said. In terms of capital mobilisation for the State budget, as of March 31 MoF issued roughly VND56.5 trillion worth of government bonds to offset excessive budget spending and to cover investment and development expenditure. http://bizhub.vn/news/budget-revenues-up-15-per-cent-in-q1_285409.html

Vietnam locates in group of low petrol price countries 12/Apr/2017 Intellasia| Saigon-gpdaily. Vietnam's retail petrol price is lower than neighbouring countries and many Asean nations, said head of Tax Policy Department Pham Dinh Thi yesterday afternoon referring to a proposal to increase environmental protection tax rate. He was speaking at a quarterly conference by the Ministry of Finance. Quoting data from website Global Petrol Prices on April 3, he said that Vietnam's retail petrol price was in low group, ranked 44th out of 180 nations from low to high rank. According to him, the price in 136 countries is higher than in Vietnam. Of these the Philippines was ranked 55th, Cambodia 58th, Thailand 88th and Laos 97th. The ratio of taxes to basic price in Vietnam is lower than many countries, accounting for 37.24 percent on gasoline, 21.14 percent on diesel, 11.5 percent on kerosene and 18.4 percent on fuel oil (FO). The taxes comprise import tariff, special consumption tax, environmental protection and value added tax. Fuel tax in South Korea is imposed at 70.3 percent, Cambodia 40 percent and Laos 56 percent. At the meeting, Thi talked about the Ministry of Finance's proposal to increase environmental protection tax frame from VND1,000-4,000 to VND3,000-8,000 a litre of gasoline. The proposal aimed at coping with complicated changes in the world's petrol prices, ensure national benefits when Vietnam cuts import tariff to carry out international commitments, prevent a big difference in petrol price between Vietnam and adjacent countries, improve responsibility to protect environment and encourage production and use of environmentally friendly goods, said him. In the draft revised law on environmental protection, the Ministry of Finance just proposes to adjust tax frame on gasoline, basing on estimation of specific impacts to businesses' production and trading, retail prices, citizens' lives and socioeconomic situation in the current phase. The government will submit the draft law to the standing committee of the National Assembly to decide specific environmental tax rate on gasoline, he revealed. The State Budget Law stipulates that environmental protection tax is a budget revenue source spent on development investment and capital assistance for businesses, says Thi. At present, the state budget expenditure on environmental protection is maintained at 1 percent of total revenue. Authorised agencies are striving to increase the rate to 2 percent. http://www.saigon-gpdaily.com.vn/Business/2017/4/124009/

Environmental tax hike remains a concern 12/Apr/2017 Intellasia| VNS The finance ministry also explained at Monday's meeting its proposal to increase the environmental protection tax on petroleum consumption from the current VND1,000-4,000 to VND3,000-8,000 per litre. The proposal has generated public concern about possible negative impacts on daily life and production. Pham Dinh Thi, director of the ministry's Tax Policy Department, said the proposed increase was acceptable. Petroleum is a product containing chemical substances that pollute the environment on a large scale. Many countries in the world have chosen the petroleum industry to raise taxes, including environmental protection taxes, to fight pollution, Thi said. He said the proposal aims to prepare for Vietnam's deeper integration into the world economy as many international commitments take effect. In the future, the country will have to rely less on import taxes that have to be reduced under several Free Trade Agreements (FTAs) that it is signatory to. The increase in environmental protection tax would create a foundation to offset decreasing collection from import and export taxes, Thi said, adding that the tax rate should be adjusted in line with socio- economic development requirements in different periods. Thi said the MoF's proposal on tax adjustments was also an active response to world oil price fluctuations. He said it aims to ensure the country's benefits in the context of deeper global integration, and at the same time, avoid big differences in petroleum prices between Vietnam and neighbouring countries with shared borders. In fact, Vietnam's petrol prices are currently lower than other countries with shared borders, as also members of the Asean bloc, he noted. According to globalpetrolprices.com, on April 3, the retail price of petrol in Vietnam ranked 44th out of 180 countries. The Philippines ranked 55th, Cambodia, 58th, Thailand, 88th and Laos, 97th, Thi said. "Given all these factors, the MoF's proposal to increase the environmental protection tax on petrol is suitable and acceptable," he reiterated. http://english.vietnamnet.vn/fms/business/176290/environmental-tax-hike-remains-a-concern.html

Ministry says hike of environmental tax on gasoline a must 12/Apr/2017 Intellasia| The Saigon Times The expansion of the environmental protection tax bracket for gasoline to VND3,000-8,000 per litre does not affect businesses until a specific level is determined, said a representative of the Ministry of Finance. The minister of Justice has reported to the Standing Committee of the National Assembly (NA) on the addition of the amended Law on Environmental Protection to the 2017 law-making programme. If approved by the Standing Committee, this law is expected to go before the NA this October, said Pham Dinh Thi, head of the Department of Tax Policies under the finance ministry. At a press conference on April 10, Thi stressed that gasoline contains chemicals that adversely affect the environment. This item is subject to special consumption tax and environmental protection tax with different names around the world. In Vietnam, the tax bracket for gasoline is now VND1,000-4,000 per litre and the current applicable rate is VND3,000. In 2015, the hike of the environmental protection tax from VND1,000 to VND3,000 also provoked criticism, with some arguing that such an increase would hit consumers and affect the competitiveness of businesses. However, after an analysis of world fuel price developments and price comparisons between Vietnam and neighbouring countries, the ministry believes the national interests would be threatened without any adjustments. The current environmental protection tax of VND3,000 a litre on gasoline is near the maximum level in the bracket. Therefore, the finance ministry assesses that in case of necessity, the tax should be adjusted in line with the socio-economic development policy in each period. Besides, import tariffs have been brought down in line with international agreements, while gasoline retail prices in Vietnam are lower than in neighbouring and regional countries. This is why the Ministry of Finance has proposed expanding the environmental protection tax bracket for this item to VND3,000-8,000 per litre with a long roadmap. The specific level of adjustment is to be decided by the NA Standing Committee depending on each socio-economic period and the acceptance of businesses and people. Responding to public opinion that the environmental protection tax is being used "not for the right purpose" and "spent less than collected", the head of the Department of Tax Policies emphasized the ratio of 1 percent budget collection spent on environmental protection was just direct expenditure, not including indirect expenditure. "The environmental protection tax is collected according to the State Budget Law and spent according to the State Budget Law, not that the revenue from the environmental protection tax is only used for environmental protection," said Thi. Therefore, "it is impossible to say the environmental protection tax is spent less than collected and used not for the right purpose." http://english.thesaigontimes.vn/53398/Ministry-says-hike-of-environmental-tax-on-gasoline-a- must.html

Vietnam auto industry faces nearing tax abolishment challenge 12/Apr/2017 Intellasia| Saigon-Gpdaily Vietnam's auto industry, which has ploddingly developed for the last many years, will face tariff abolishment on products imported from Asean nations from January 1 next year. Admit the approaching tax abolishment, Toyota Vietnam has considered stop production in Vietnam. Japanese Mazda group has announced choosing Thailand to manufacture engines and assemble automobiles to supply the Southeast Asian market. South Korean Huyndai Group has stepped up investment in Malaysia. Commenting on Vietnam's auto industry, Chris Humphrey, managing director of EU-Asean Business Alliance, said that the Vietnamese government had issued many advantageous policies for the auto industry for the last many years. Of them is the policy assisting businesses to increase localisation rate by connecting with large automakers in the world. However the localisation rate has approximated 10-30 percent so far. Once the tax removal comes true next year, the auto industry will not have many opportunities to develop and compete with Southeast Asian countries who have gone before Vietnam by decades in this field. Thailand now can produce 2.3 million automobiles a year while the number is only 400,000 in Vietnam. Policymakers, businesses and citizens have concerned that Vietnam will be unable to compete with Thailand in both quality and prices when the tariff rate slides to 0 percent in 2018. At that time, component import for assembly will be more expensive than CBU (complete built-up unit) import from Thailand, Indonesia and Malaysia. Meantime, Thai manufacturers have been ambitious to exploit the potential market of Vietnam where population tops 90 million people in high demand of auto shopping. Experts said that Vietnam's auto industry has been lagging behind other nations and uncompetitive because of high manufacturing costs. Businesses have imported auto parts and components for local manual instead of automatic assembly which requires high quantity and hi technology. For instance, local firms are now able to assemble 10,000 Innova automobiles at the highest capacity. This number is insufficient for manufacturing automation to increase productivity, reduce costs and lower selling prices. If this situation remains unchanged, auto makers and traders will change into import CBU products for sale instead of assembling domestically. Assistance policies Deputy minister of Industry and Trade Do Thang Hai said that many policies had been issued to assist the auto industry to deal with integration difficulties and challenges but they needed be changed to suit current context. Prime minister Nguyen Xuan Phuc has recently visited Huyndai Thanh Cong Group, announcing advantageous policies for the industry. According to him, joint venture between local private businesses and large groups in the world is a sound step. He appreciated some provinces such as Quang Nam and Ninh Binh for their proactive steps and high determination to develop the industry, contributing to promote the government's auto development strategy from a failure after many times of changes. Vietnam is not ambitious to produce all 800 auto parts and accessories now. The right direction for local firms is to coordinate with large groups in the world to make most important parts including engines for exports instead of import only and becoming a garbage dump of old automobiles in the world. PM Phuc has required the Ministry of Industry and Trade to coordinate with a government working group to urgently work with auto businesses, synthesize reports and propose policies to the PM for auto and support industry development. Experts suggested that Vietnam should not develop by width in many fields but quickly transfer into manufacturing, determine and focus on segments in strengths. http://www.saigon-gpdaily.com.vn/Business/Economy/2017/4/124000/

Over 477,800 enterprises operate in 2016 12/Apr/2017 Intellasia| VNA Up to 477,808 businesses had been operating nationwide throughout 2016, a year-on-year rise of 8 percent. The figures were released at a press conference jointly held in Hanoi on April 11by the general Statistical Office (GSO), the Steering Committee for Enterprise Reform and Development and the Vietnam Chamber of Commerce and Industry (VCCI). The southern largest economic hub of HCM City and the capital city of Hanoi were home to the largest numbers of enterprises, which respectively accounted for 33.6 percent and 23.1 percent of the total figure. The number of newly-established businesses in 2016 hit a record of more than 110,000, surging 16.2 percent against the previous year's figure. Of those, 98,757 businesses began their operations, only 13.72 percent of which operate in the processing and manufacturing sectors and they made modest contributions to the nation's economy. Statistics also showed that businesses contributed VND746 trillion (almost $32.9 billion) to the State budget in 2015. http://english.vov.vn/economy/over-477800-enterprises-operate-in-2016-347398.vov

In Vietnam, tax, red tape discourage small businesses from expanding 12/Apr/2017 Intellasia| Tuoitre News Tens of thousands of enterprise-sized small businesses in Vietnam remain reluctant to upgrade their business status for fear of being caught up in red tape and subject to unfavourable tax conditions. Most of these so-called 'household businesses' currently pay less than a few million VND per month in poll taxes, despite earning significant revenues. [VND1 million = $44] Ha, one trader at a wholesale market in HCM City, has recently filed for dissolution of her small enterprise after encountering multiple difficulties since changing from being a household business just a few years ago. She said her enterprise had been subject to countless inspections since its establishment, and each time accounting errors had been found, resulting in her having to pay tens of millions of VND in tax arrears. "It's not that we are disregarding the law on purpose, but we simply can't update quickly enough because of the constantly changing tax regulations," Ha said. "Our business involves many different items, making it hard to validate all the correct papers." According to Ha, she now pays a fixed poll tax of just over VND5 million ($223) per month under the household business model, compared to the much higher cost of employing an accountant and facing the risk of tax arrears as an formal firm. In addition to tax accounting, bureaucratic red tape is another factor discouraging many household businesses from becoming enterprises in Vietnam. In order for any enterprise registration to be processed, household businesses must cease all business activity until the status change is complete, which can take up to several weeks and entail huge losses on most businesses. All previous papers and qualifications issued by district-level administrations must also be re-issued by the municipal or provincial administration, and trading names might also have to change to avoid duplication. There are currently around 275,000 registered household businesses in HCM City, comprising two percent of the city's total tax revenue. According to experts, this number is not in keeping with the total size of these household businesses however, yet to determine their exact revenue is almost impossible, given that there is no requirement to keep transaction invoices. An estimated 14,000 of these household businesses currently qualify to become enterprises, with the People's Committee of HCM City looking to transform between 20,000 and 25,000 by the end of 2017. In reality however, only 120 have applied to become enterprises since June 2016, according to statistics from the municipal Department of Planning and Investment. "There needs to be a certain amount of pressure from authorities, otherwise these household businesses won't make the move of their own volition any time soon," said tax expert Nguyen Thai Son. Son added that some businesses are currently 'lobbying' with district officials to pay less tax, explaining their reluctance to become enterprises as it means having to pay more. http://tuoitrenews.vn/business/40461/tax-red-tape-discourage-small-businesses-from-expanding

Conversion into firms tough for household businesses 12/Apr/2017 Intellasia| The Saigon Times Household businesses in HCM City are still grappling with a number of barriers when they are turned into companies despite the city government's support for their conversion, surveys have found. HCM City's target is to have at least 500,000 businesses active by 2020, with major companies and those of the private sector expected to contribute 65 percent to gross domestic product (GDP) and 64 percent to the city's total development investment. However, household businesses are coping with challenges regarding applications for new business registration certificates, labour recruitment and investment in new technology. A report of the HCM City Tax Department indicated there are more than 36,472 household businesses that can be upgraded to firms. The city expects 21,000 of them can become companies this year as they have clear addresses, stable operations and high revenues. They are divided into two groups. The first group comprises those having annual revenue of more than VND1.2 billion (US$52,884) each and located in districts 1, 2, 7, 10 and Binh Thanh, while the second group consists of households with annual sales of VND600 million or higher. Household businesses, once turned into firms, will have more opportunities to expand operations and promote brands, gain easier access to preferential bank loans, carry forward losses to the following years, and get other benefits. However, the surveys showed local household businesses will have to deal with some challenges in the conversion process. A survey of 1,000 household businesses with annual revenue of at least VND2 billion in District 1 found 420 of them pay taxes of over VND100 million a year each, and many operate in the food and beverage, trading and services sectors. But multiple households in the central business district hesitate to operate as firms for fear of complicated procedures. Many household businesses must apply for licenses in conditional sectors as well as food safety, star rating and security certificates if they want to become firms. In District 12, there are more than 16,800 household businesses active in the garment, food portion, grocery, electrical and electronic products, processed food, handicraft, interior decoration and building material sectors. However, many of them mainly sell products to consumers in the outlying district and have not been ready to operate as firms. On top of that, a large number of household businesses are not financially strong and use unskilled workers and outdated machines. http://english.thesaigontimes.vn/53377/Conversion-into-firms-tough-for-household-businesses.html

Frequent inspections tire Vietnamese business owners 12/Apr/2017 Intellasia| Tuoitre News Despite a government order dictating that authorities only inspect businesses once a year, enterprises in Vietnam are facing repeated inspections that do more harm than good to their business. A paper manufacturing company based in HCM City said it has been the subject of approximately 30 inspections by authorities since 2015. In 2015, it was inspected 13 times by various administrative bodies, including three environmental units and four firefighting departments. Last year, it was checked by eight firefighting delegations of varying levels, two environmental units, a food hygiene agency, a nuclear radiation safety body, and the municipal Department of Natural Resources and Environment. The firm was subjected to inspection four times in January-April this year. The government said in December 2016 that companies could only be inspected one time a year. The company's owner, who asked to remain anonymous, said that there had been times when his company had been forced to 'welcome' two delegations of inspectors on the same day, both inspecting compliance on environmental protection measures. "My company has had to establish a new division dedicated to the reception of inspectors," the owner said. "Isn't there communication between the authorities so that they won't have to inspect things that have already been inspected?" Moreover, he said, the authorities seemed to be 'determined' to find fault with the company and would rarely conclude their inspections without some kind of 'violation.' "It takes up a lot of our time to receive one inspection after another; it's almost unbearable," the owner said, drawing a sigh. According to Van Duc Muoi, the former CEO of local food producer Vissan, the mindset of inspectors is to 'dig up dirt' on businesses, instead of facilitating compliance. "There needs to be comprehensive changes in our regulatory environment if we are to encourage the growth of business," Muoi said. N., director of a local auditing firm, said not only have tax authorities carried out too many inspections, but the duration of each one has also been unnecessarily long. The maximum allowable duration of a tax inspection is "five actual working days," an ambiguous term that has been taken advantage of by tax authorities in order to lengthen their checks over weeks, N. said. Rather than commencing their inspection on Monday and concluding it on Friday, the authorities inspect his company once a week, prolonging the course of their work to over a month. "We have no choice but to grin and bear it, for it only takes up more time to pursue a legal angle," N. explained. "Bringing the case to court might hurt our business in the future." http://tuoitrenews.vn/business/40466/frequent-inspections-tire-vietnamese-business-owners

Vietnam's rice price out of sync with rest of world 12/Apr/2017 Intellasia| Vietnamnet The rice price in the Mekong Delta has increased in the last couple of weeks, which has resulted in higher export prices. Lower rice output and high demand in the world market were cited as reasons for the price increase in the domestic market. The Vietnam Food Association (VFA) said the winter-spring rice cultivation area in Mekong Delta fell slightly by 1.2 percent, while the yield decreased by 6.7 percent on nearly half of the harvested area. The output is predicted to decrease by 800,000 tonnes, or 7.8 percent, compared with the last winter- spring crop. This is the second consecutive crop that the Mekong Delta, the country's largest rice granary, has produced at a lower output, which is unprecedented in the last two decades. However, Nguyen Dinh Bich, a rice expert, cited the March report of the US Agriculture Department as saying that the total rice output this year would reach a record high of 480 million, or 16 times higher than Vietnam's decrease. The rice output in Thailand and India, Vietnam two largest rivals, will increase by 5 million tonnes, or 10 times higher than Vietnam's decrease. Thailand, the biggest rice exporter, is making every effort to clear the 2.8 million tonnes of stockpile carried forward from the predecessor's government. The rice is 36-66 months old and its quality is decreasing rapidly. The US agriculture department also predicted that the total global demand for rice this year would increase slightly by 800,000 tonnes, or just 1/10 of the total output increase and one-third of Thailand's inventory level. All these factors show that the world market this year will be a buyers' market, and Vietnam will not be able to control the price. An analyst warned that Vietnamese rice exporters would find it difficult to obtain export contracts if they continue increasing the prices. According to FAO and TREA, the Thai rice exporters' association, Thai companies exported 5 percent broken rice at $377 per tonne in January, while it slightly decreased to $368 per tonne. Meanwhile, according to Bich, Vietnam's export price has surged from $335 to $358 per tonne. This means that the gap between Thailand's and Vietnam's export prices has narrowed. Bich, in his article in Thoi Bao Kinh Te Sai Gon, said that Vietnam raised the export price to equal or higher than Thailand's price in early 2016 and saw export volume fall dramatically. http://english.vietnamnet.vn/fms/business/176082/vietnam-s-rice-price-out-of-sync-with-rest-of- world.html

Total Chinese FDI exceeds $11bn 12/Apr/2017 Intellasia| VN Economic Times Processing and manufacturing the most-favoured sector while Binh Thuan province the most-favoured locality. China had 1,616 active foreign direct investment (FDI) projects in Vietnam with total capital of $11.19 billion as at March 20, according to the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment. Vietnam's northern neighbour therefore ranks eighth among 116 countries and territories with investment projects in the country. Average capital per project stands at some $6.9 million, compared to about $13 million for all FDI projects. Chinese investment is primarily in the processing and manufacturing industry, with 1,072 projects and total registered capital of $6.87 billion, accounting for 61.4 per cent of investment capital from China in Vietnam. Following was the production and distribution of electricity, gas, and water, and air conditioning, with total registered capital of $2.04 billion, accounting for 18.2 per cent. Investment in real estate was the third highest, reaching $631.2 million, or 5.6 per cent. Chinese projects are mainly 100 per cent foreign invested, with 1,318 projects and total capital of $7.45 billion, accounting for more than 66.5 per cent of investment capital from the country. Some 18.4 per cent of total registered capital is in the form of build-operate-transfer (BOT), build-transfer (BT), and build- transfer-operate (BTO) contracts, while 15 per cent are in the form of joint ventures, business cooperation contracts, or joint stock companies. Investment from China has found its way to 54 of Vietnam's 63 cities and provinces. South-central Binh Thuan province attracted the most, with just seven projects but total registered investment capital of $2.03 billion, accounting for 18.1 per cent of the total from China. Southern Tay Ninh province followed with 46 projects and capital of $1.65 billion, accounting for 14.8 per cent, then northern Bac Giang province with 61 projects and $957.56 million, accounting for more than 8.5 per cent. In the first quarter of 2017, Chinese investors invested in the Billion Vietnam project in Tay Ninh province, producing polyester and synthetic fiber, with total investment capital of $220 million. http://vneconomictimes.com/article/vietnam-today/total-chinese-fdi-exceeds-11bn

Bac Ninh takes lead in FDI attraction 12/Apr/2017 Intellasia| VNA The northern province of Bac Ninh is leading the country in foreign direct investment (FDI) attraction, drawing over $2.6 billion from 14 newly-licensed projects and 48 capital-added projects in the first quarter of this year. Bui Hoang Mai, head of the industrial parks (IP) management board of Bac Ninh province, said the Samsung Display Vietnam Co. Ltd in February asked for permission to raise investment capital of its project in the Yen Phong IP to $2.5 billion. The board also granted a new investment certificate to Hanwha Techwin Security Vietnam to carry out a project worth $100 million in the Que Vo IP. Mai said Bac Ninh has been focusing on developing high-tech and supporting industries. The province has been also stepping up the manufacturing industry to tighten linkages between local businesses and FDI enterprises. Local officials have regularly held meetings with representatives of enterprises in order to remove their difficulties, thus promoting production and improving the efficiency of investment attraction into IPs and industrial clusters. In recent years, Bac Ninh's investment climate has improved thanks to the province's efforts to simplify administrative procedures, especially those related to land, construction, labour and customs, thus making it easier for enterprises to effectively operate in the locality. To date, the IPs management board has granted 1,093 investment certificates to domestic and foreign- invested projects with a combined registered capital of nearly $15.9 billion. http://english.vov.vn/economy/bac-ninh-takes-lead-in-fdi-attraction-347404.vov

HCM City aims at higher position in PCI rankings 12/Apr/2017 Intellasia| VNA Officials of HCM City held a meeting on April 11 in an effort to improve the city's Provincial Competitiveness Index (PCI), which dropped from the 6th in 2015 to the 8th last year. Vice Chair of the municipal People's Committee Tran Vinh Tuyen urged swift actions to better HCM City's PCI ranking, especially the sub-indices with lower points. Local departments and agencies must focus on the sub-indices of land access, informal charges, policy bias, pro-activity of provincial leadership, and legal institutions, he noted. Although businesses' land access was among the five sub-indices with higher points, from 5.18 points in 2015 to 5.45 points in 2016, the modest increase shows that this sub-index hasn't been improved substantially, according to Tuyen. In terms of informal charges, he requested leaders of municipal departments and agencies to have more dialogues with and listen to businesses while stepping up the provision of online services to minimise direct contact, thus cutting red tape and saving time and expenses for enterprises. He also called for businesses' coordination through turning down civil servants' unregulated requests. Regarding policy bias, the vice Chair said HCM City will promptly establish an enterprise support centre to help solve difficulties facing businesses. He also asked municipal officials to review businesses' feedback to find out the cause of the dissatisfaction with the administration's performance, which led to a worse pro-activity index. As legal institutions saw the biggest drop last year, from 5.04 points to 4.25 points, relevant agencies must immediately set up supervision mechanisms to ensure that all opinions of enterprises will be settled in an appropriate manner. They also need to review economic disputes and accelerate the enforcement of civil judgments so as to solidify businesses' trust in the city's law protection agencies, he added. Nguyen Hoang Minh, deputy director of the municipal Department of Planning and Investment, said although HCM City's PCI ranking in 2016 fell from the previous year, its average score increased by 0.36 point from 61.36 to 61.72 points. More than 36,000 companies were set up in the city in 2016, a year-on-year rise of nearly 14 percent. The local business environment was also highly valued at international economic forums, he noted. http://english.vov.vn/economy/hcm-city-aims-at-higher-position-in-pci-rankings-347403.vov

HSBC: Low Q1 growth no cause for concern 13/Apr/2017 Intellasia| VN Economic Times Bank's latest report notes mitigating factors behind growth slowdown in first quarter. In its latest report on Vietnam economic outlook, HSBC believes the low GDP growth during the first quarter of this year is only a minor setback and that the manufacturing sector has the potential to lift growth in the coming quarters. Vietnam's economic growth slowed to a three-year low of 5.1 per cent year-on-year in the opening quarter of the year. Amid a slowdown across the board, the drag from mining and quarrying worsened during the quarter due to a combination of a recent fall in coal prices, a higher natural resources tax (which was implemented on July 1, 2016), declining output from mature oil fields, and higher production costs due to the depletion of coal layers. Although mining and quarrying has been ailing for some time now, the recent fall in coal prices intensified the drag from the sector. Coal layers, which are easier to access, are increasingly becoming depleted, raising the cost of extraction. Until recently, robust manufacturing masked these shortcomings. Manufacturing growth also stumbled in the quarter, as a leading phone maker stalled production, dragging down electronics production at large. A decline in Samsung's output in Vietnam contributed to a 10.7 per cent contraction in exports of phones and components, dragging down electronics production. According to the general Statistical Office (GSO), shipments of phones and components - the country's largest export revenue earner - were down 24.3 per cent year-on-year in March. Nevertheless, HSBC expects exports to rebound soon, helped by new product launches and a gradual revival of global demand, which is reflected in the sustained increase in overseas orders in Purchasing managers' Index (PMI) surveys. Operating conditions in the manufacturing sector continued to improve through March. At 54.6, the headline PMI was slightly higher than February's 54.2 and the strongest since May 2015. Output and new export orders accelerated during the month, while overall new orders grew at a slightly slower pace. Higher workloads led to the fastest gain in employment since September 2016. Backlogs of work continued to expand, albeit at a slower pace. Additionally, manufacturers remained strongly confident that output will increase over the coming 12 months, thanks to expectations of higher new orders and business expansion plans. On the price front, gains in input prices quickened to their sharpest pace in almost six years amid higher prices for oil and other raw materials and currency weaknesses. However, higher input costs were passed on to clients, only partly, as charge inflation (increases in output prices) rose at a slower pace, implying a squeeze in margins. This is reflected in the future output index, which, although still at a high level, receded slightly from its peak in February. Elsewhere in the economy, inflation is gradually easing, even in the face of higher energy prices and increased costs of healthcare and education, owing to muted food inflation. Headline inflation eased further, to 4.6 per cent year-on-year in March from 5.0 per cent previously. About half of the increase came from higher costs in healthcare services, owing to the government's scheduled hike of medical and educational service fees. The transport component, which had been in deflation for over two years until December 2016, grew by 14.6 per cent year-on-year in March due to higher energy prices. Meanwhile, core inflation rose only a touch, to 1.6 per cent year-on-year from 1.5 per cent previously. Despite higher costs for energy, healthcare and education, low food inflation is keeping price pressures in check. Overall, HSBC believes the GDP result highlights the economy's sensitivity to manufacturing cycles, especially high technology. "For Vietnam to broaden growth drivers and, as such, help reduce the volatility of economic output, further reforms would help, especially with regard to State-owned enterprises' efficiency and the creation of fiscal buffers," the report stated. http://vneconomictimes.com/article/vietnam-today/hsbc-low-q1-growth-no-cause-for-concern

ADB: Vietnam growth to continue acceleration through 2018 13/Apr/2017 Intellasia| Atimes A report released Monday by the Asian Development Bank forecasts Vietnam's GDP growth to continue its ascent on improvements in manufacturing, construction, wholesale and retail trade and tourism sectors, reports Saigon Giai Phong Daily. Despite expectations of depressed global and regional trade flows, record inflows of foreign direct investment will help lift export earnings. The country's agricultural sector, however, continues to lag behind that of other regional economies, and requires reforms to increase productivity. Vietnamese agricultural output per worker is less than one-third of Indonesia's and less than half that of the Philippines and Thailand, according to the report. http://www.atimes.com/article/adb-vietnam-growth-continue-acceleration-2018/

VEPR forecasts 2017 growth of 6.1pct 13/Apr/2017 Intellasia| VN Economic Times Prediction well short of government's 6.7 percent target. Vietnam's GDP is likely to grow by 6.1 per cent this year, far below the government-set target of 6.7 per cent, the Vietnam centre for Economic and Policy Research (VEPR) wrote in a report released on April 10. After hitting a three-year low of 5.1 per cent in the first quarter of this year, Vietnam's economy is forecast to expand 5.7 per cent in the second quarter, 6.5 per cent in the third, and 6.6 per cent in the fourth, according to Nguyen Duc Thanh, VEPR's director. The recovery of the agriculture, forestry, and aquaculture sectors, at a modest 2.0 per cent growth, together with stable 6.5 per cent growth in the services sector, were not enough to compensate for the abnormally low growth in the industry sector. Manufacturing and processing grew at just 8.3 per cent, a year-on-year decline. A slowdown in the local manufacturing sector could drag the country's economic growth down. The industry and construction sector increased just 4.2 per cent in the first quarter; the lowest in the quarter in recent years, indicating a gloomy outlook for the sector. Consumption slowed in the first quarter, even during the Tet (Lunar New Year) holiday season. Retail sales experienced growth of only 9.2 per cent year-on-year and 6.2 per cent year-on-year in value and volume, respectively; lower than in the first quarter of previous years. International trade saw rapid growth. Exports recovered, primarily due to price factors, growing 12.8 per cent year-on-year, while imports increased rapidly in terms of both value (22.7 per cent year-on-year) and volume (19.9 per cent year-on-year). As a result, the trade balance was in deficit to the tune of $2 billion in the quarter. "The abnormal fall in almost all industries led to lower-than-expected economic growth," the report noted. "Vietnam's GDP increasingly depends on the foreign-invested sector, particularly a group of conglomerates such as Samsung Electronics Co." In addition, the share of domestic companies in exports has decreased, standing at 28 per cent, compared to the 72 per cent held by the foreign-invested sector. "This indicates the domestic bloc has become weaker during expanded international integration," the report adds. During the period, the disbursement of foreign direct investment (FDI) capital reached $3.62 billion, slightly higher than in the first quarter last year but down compared to the fourth quarter of 2016. Registered FDI capital reached $7.7 billion, up 77 per cent year-on-year, with a large proportion being additional capital. Newly-registered capital was $2.92 billion, up just 6.5 per cent year-on-year. Inflation is expected at 4.3 per cent for the year as a whole, below the 5 per cent estimated by the government. However, it could exceed projections due to hikes in prices of healthcare and education services and the volatility of global commodity prices, according to the report. http://vneconomictimes.com/article/vietnam-today/vepr-forecasts-2017-growth-of-6-1

Sluggish Q1 puts 2017 growth target beyond reach: report 13/Apr/2017 Intellasia| VNS With first quarter growth in 2017 the lowest in the last three years at 5.1 per cent, the targeted GDP growth of 6.7 per cent this year will be a tough task, a new report says. The quarterly report, prepared by the Vietnam Centre for Economic and Policy Research (VEPR), purports to be an independent assessment of the nation's macroeconomic policies. It says that the sluggish performance has brought down the Vietnam Economic Performance Index (VEPI) down to 5.8 per cent. The first quarter VEPI indicates an economic decline, with industrial production index up just 4.1 per cent, the report says. Only the inventory index managed to stay high in January and February 2017, it notes. It predicts that with such a low growth rate in the first quarter, the annual growth target of 6.7 per cent might prove unattainable. Inflation is slowing down and stabilising, with a year-on-year rise of just 4.65 per cent, due to declining prices of basic commodities. However, the difference between core inflation and headline inflation indicates great difficulty in keeping the rate down to under 4 per cent when consumption demand bounces back alongside public spending. "The State Bank has exercised strict control to prevent inflation with highly efficient monetary policies. Interest rates fluctuations from the Fed's prime rate hike in the last month and US dollar gains at the end of 2016 have been curbed in recent times. Credit is gaining fast, indicating businesses' needs for growth," said VEPR President Nguyen Duc Thanh. Thanh also felt that with a carefully monitored monetary policy, inflation can be kept to under 5 per cent. "The first quarter growth tends to be the lowest one out of the year, and I expect the upcoming months to pick up quickly. The recorded low inflation rate may not continue for long, however, the current development model will create high total demand and hike inflation. Unless the US' Fed announces another interest hike, the exchange rate will not create pressure on domestic inflation," said Trưong Dinh Tuyển, former Trade minister. The manufacturing and processing sector experienced an "abnormally low growth level" of 8.3 per cent, compared to the same period last year. The agriculture, forestry, and aquaculture sector saw a 2 per cent growth rate, while the service sector grew by 6.5 per cent. Overall, industrial growth was just 3.85 per cent in the first quarter of 2017, the lowest since 2011. Consumption also saw an overall year-on-year decline to 4.4 per cent in January before bouncing back to 7.9 per cent in February, giving the retail sector a year-on-year growth of 9.2 per cent and the service sector 6.52 per cent. Exports posted a rapid growth in terms of value at 12.8 per cent, while imports grew 22.7 per cent year- on-year, resulting in a Q1 trade deficit of $2 billion. With such little progress in the industrial sectors, GDP is disproportionately dependent on the foreign direct investment sector. This creates a high level of trade growth without corresponding gains in export value, experts said. "Investment flow to Vietnam is also being constricted by many countries as the US is also pursuing new trade and monetary policies, so Vietnam should focus on its own domestic consumption and investment as well as improving the service sector," said Vo Tri Thanh, vice President of the Central Institute for Economic Management (CIEM). Foreign direct investment will soon face many difficulties with the disbandment of the Trans Pacific Partnership agreement, with only a 6.5 per cent increase in terms of registered capital in the first quarter compared to the same period last year, the equivalent of $2.92 billion. The VEPR report also predicts upcoming challenges for Vietnam as it integrates into the Asean's Economic Community, saying there will be high pressure on the domestic economy to become more competitive. The VEPR announced its findings at a workshop in Hanoi on Monday http://vietnamnews.vn/economy/374493/sluggish-q1-puts-2017-growth-target-beyond-reach- report.html#MuuewkuLVoeq8ew5.97

GSO to introduce new development index 13/Apr/2017 Intellasia| VNS The general Statistical Office of Vietnam (GSO) is developing a new set of indices to evaluate the development and efficiency of businesses in provinces and cities and expects to launch it by the end of this year. GSO deputy director general, Pham Quang Vinh, said at a news conference yesterday that the indices will be based on indicators such as the number of firms operating, employees, investments, revenues, profits and contributions to the State budget. The indices will be different from the current provincial competitive index (PCI). While the PCI reflects the feeling and evaluation of businesses about government policies and the business environment, the new indices will measure the operational efficiency of firms. The upcoming set of indices together with PCI will provide a comprehensive picture about the business environment and development of Vietnam, according to Nguyen Quang Vinh, deputy general Secretary of the Vietnam Chamber of Commerce and Industry. GSO is developing the new measures with VCCI and the Steering Committee for Enterprise Innovation and Development. Low efficiency Pham Dinh Thuy, director of GSO's Industry Statistics Department, said at the conference that the efficiency of Vietnamese firms remains low. Thuy said more than 97 per cent of firms were of small and medium size, and around 60 per cent had less than 10 employees. The small scale, coupled with outdated technologies, results in low efficiency and unsustainable development, he said. GSO's statistics show that pre-tax profit of firms increased on average 19 per cent in the 2000-15 period, lower than the increases of 22.8 per cent in capital and 21.6 per cent in revenue. Contributions to the State budget increased 18.2 per cent in the 15-year period, with each contributing an average of VND2 billion (US$87,720) to the budget in 2015. These figures reflect the poor performance of businesses which, Thuy said, was caused by the impact of the global financial crisis, despite increased government support policies in tax exemptions and deferrals. However, the goal of having one million operating firms by 2020 was within reach with the government's determined efforts to improve the business climate, said Nguyen Hong Long, deputy Head of the Steering Committee for Enterprise Innovation and Development. To reach the goal, business households should be encouraged to found companies, Long said, adding that it was important to tackle problems in policies to create favourable environment for the conversion. As of the end of 2016, there were a total of 477,808 firms in operation nationwide, an 8 per cent increase over the previous year. http://vietnamnews.vn/economy/374481/gso-to-introduce-new-development- index.html#7rZ54qBj7pqo7JJh.97

Most Vietnamese enterprises have low development indexes 13/Apr/2017 Intellasia| The Saigon Times Vietnam had only 442,485 enterprises as of end-2015 and most of them have low development indexes, according to a study conducted by the general Statistical Office in collaboration with the Steering Committee for Enterprise Reform and Development and the Vietnam Chamber of Commerce and Industry. The study released in Hanoi on April 11 also shows that by 2015, the total gross turnover of the corporate sector reached nearly VND15 quadrillion (about $661 billion), but their pre-tax profit totalled VND552.7 trillion (about $24.4 billion) while the taxes paid totalled VND764.4 trillion (about $33.7 billion). This figure indicates that with every VND100 of revenue, Vietnamese businesses just earned a pre-tax profit of VND3.7 and contributed VND5 to the State budget. Pham Dinh Thuy, director of the Industrial Statistics Department, said that among nearly half a million operating enterprises, 97 percent are of small and medium size and 60 percent are micro small. "Low investment capital and outdated equipment are the main reasons leading to low productivity and profitability and unsustainable development," Thuy added. According to Thuy, the number of newly established enterprises in 2016 rose by a record high but their contribution to economic growth in the first quarter of 2017 is almost negligible. In 2016, more than 110,000 enterprises were established. However, only 41 percent of them are operational and make profits in the first quarter of 2017 while more than 60,000 businesses have almost no impact on the overall economic picture. Updated on December 31, 2015, the total number of enterprises actually operating in the whole country was 442,485. In the period of 2000-2015, the corporate sector gained an annual growth rate of 17.6 percent in revenue, 19 percent in profit and 18.2 percent in budget contribution. http://english.thesaigontimes.vn/53426/Most-Vietnamese-enterprises-have-low-development- indexes.html

Vietnamese losing trust in corporate leaders 13/Apr/2017 Intellasia| DTI News A recent survey shows that 38 percent of Vietnamese think that leaders of firms are in the top three most corrupted groups. The survey was conducted by the Vietnam Chamber of Commerce and Industry (VCCI) and Centre for Social Governance Research. The results were announced during a conference about fostering a better business environment through collective actions in business integrity in Vietnam on April 12. Centre director Nguyen Thi Kieu Vien said the firms were both victims and causes for corruption. "The images of business leaders are being tarnished," she said. She hoped that collective action in the business sector would create the chance to effectively carry out anti-corruption measures among firms and improve their ability to file complaints to government and related agencies. According to CENSOGOR, corruption is threatening the sustainable development of the economy and may cause severe harm to the society. It discourages transparency in firms, creative start-ups, healthy competitions and market quality. In addition, it promotes illegal funding, tax evasion, bribery and money laundering. Firms at the conference were urged to take a strong stand against corruption, obey the laws, and denounce corrupt employees. Nguyen Quang Vinh, deputy secretary of VCCI, said small and medium-sized firms in Vietnam need to learn how to prevent bribery in order to enter the global market. http://www.dtinews.vn/en/news/018/50391/vietnamese-losing-trust-in-corporate-leaders.html

Vietnam increases backing for supporting industry development 13/Apr/2017 Intellasia| Saigon-gpdaily. The government decided to increase backing for supporting industry development, said the Ministry of Industry and Trade. The government will provide maximum support to enterprises which are suppliers of local and foreign companies, which attract foreign investors in the supporting industry or help other enterprises to apply management system to meet production chains in the globe, help research and development, application of transferred new production technology of accessories, materials. Enterprises which spread information of supporting industry annually will also receive most support while enterprises which provide training to improve personnel quality will receive support equivalent to 70 percent of the cost from the government. The People's Committee in HCM City also has a programme to support enterprises in supporting industry, which started on March 26, 2017. Enterprises in the field of mechanism, rubber, food processing, electronic - IT, textile-garment are eligible for loans with preferential interest in seven years after the first disbursement. www.saigon-gpdaily.com.vn/Business/2017/4/124025/

Businesses urged to promote incorruptible operations 13/Apr/2017 Intellasia| VNA Promoting anti-corruption and creating a healthy and transparent business environment will improve productivity as well as enhance competitive capacity, prestige and position of enterprises. Deputy Secretary general of the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen Quang Vinh said at the conference themed "Fostering a better business environment through collective actions in business integrity in Vietnam" held in Hanoi on April 12. The event, jointly held by the VCCI, the Centre for Social Governance Research (Censogor) and the Danish Embassy in Vietnam, drew the participation of economic experts, business associations as well as relevant authorities. Boosting business transparency is of important significance and the issue has been discussed deeply at numerous regional and international business forums and conferences, Vinh stressed. He said each company should exercise integrity in every business activity by using the toolkit for resisting corruption - a product in the initiative to bolster the incorruptible business environment. The move also helps change the public awareness of anti-corruption, Vinh added. Meanwhile, Censogor managing director Nguyen Thi Kieu Vien said that collective actions are hailed as an effective measure to prevent corruption in many countries, including Vietnam. The collective actions should focus on risk evaluation if there is bribery and corruption, implementing anti-corruption policy and supplying guidance on solutions for managers. In addition to sharing internal anti-corruption policy, enterprises should join hands with their suppliers and partners to find out more effective collective actions to fight corruption. http://english.vov.vn/economy/businesses-urged-to-promote-incorruptible-operations-347457.vov

Rice quality matters: prime minister Phuc 13/Apr/2017 Intellasia| VOV Since taking office in 2016, prime minister Nguyen Xuan Phuc has helped drive an industry-wide discussion and led the effort to improve the quality of rice grown in Vietnam. With more than 50 percent of Vietnam rice being sold on the export market, improving its quality is imperative for maintaining exports, as well as competing domestically with an increasing population of discriminating consumers. The Vietnam government continues to be committed to improving rice quality, working with public breeding partners as well as buyers to develop better varieties and carry out innovative technologies that bring value not only to the end buyers and end users, but to the farmer as well. New high-yielding varieties capable of producing the appearance and cooking properties desired by important foreign and domestic buyers are needed, said Dang Quang Vinh, a researcher at the Central Institute for Economic Management. Vinh noted the rice currently produced in Vietnam is not competitive in some markets such as those in Central America that prefer parboiled rice, which possesses superior cooking and processing properties. Quality improvements could also be achieved by developing semi-dwarf varieties that possess better milling traits and better long-grains offering excellent blast resistance and good grain quality with yield potential that rivals the highest-yielding cultivars currently produced anywhere. In addition, Vinh suggested that rice farmers consider the use of bubble dryers to improve the quality of local rice. The post-harvest loss rate currently stands at 13.7%, which is too high and much greater than that of Thailand at 6.1 percent and India at 6%, said Vinh, noting that a sizable portion of the loss results from poor drying techniques. He said bubble dryer technology, powered by solar energy prevents contamination, aflatoxin in maize, reduces cost and enhances profit. He made the comments at a training workshop in Hanoi, adding that the bubble dryer, is 'green dryer' technology that uses solar radiation to power a system to blow hot air to dry rice. It is said to reduce moisture levels in rice from 22 percent to between 12 and 13 percent in as little as 24 hours. Vinh lamented that though new farming technologies were in existence, Vietnamese farmers underutilise them and said it was time they welcomed innovation for growth in the segment. He said the bubble dryer is proven technology that is currently in use by smallholder farmers and farmer groups around the globe and urged local farmers to take advantage of the technology. Dang Kim Son, former director general of Institute of Policy and Strategy for Agriculture and Rural Development in turn said the focus should be to help increase earnings for smallholder farmers. He also hinted at plans to offer technical training for actors in the rice value chain saying that without trained farmers, the country could not achieve food security. He underscored the need for regular capacity building for farmers. Vietnamese farmers need to learn and use new farming techniques. They must know about seed quality, types of soil and chemical application not only dropping the seed in the soil. http://english.vov.vn/economy/rice-quality-matters-prime-minister-phuc-347424.vov

Coffee, pepper enterprises and farmers should connect well 13/Apr/2017 Intellasia| VNA Links between enterprises and coffee and pepper farmers need to be enhanced to improve the economic value and competitiveness of the two products. This idea was agreed on by deputy minister of Agriculture and Rural Development Le Quoc Doanh and representatives from the Vietnam Coffee-Cocoa Association (VICOFA) and Vietnam Pepper Association (VPA) at their working session on April 11. VICOFA general Secretary Nguyen Viet Vinh said that enterprises and farmers currently do not connect well because of intermediaries who benefit much from business deals. In 2016, Vietnam ranked second in the world in coffee exports. It sold 1.78 million tonnes of coffee for $3.34 billion, up 32.8 percent in volume and 25 percent in value. However, export value remained low as most coffee beans were exported unprocessed. Similarly, Vietnam mainly exports raw pepper, but a lack of varieties and diseases are causing a decrease in the quality of Vietnamese pepper. VPA deputy general Secretary Nguyen Mai Oanh said that although the ministry of agriculture and rural development established a pepper research centre in Gia Lai province, Vietnam has to date have no standard set of varieties. She requested more efforts to find good pepper varieties suitable for Vietnam's land and weather. Foreign partners are willing to pay 10%-20 percent higher than normal if Vietnam can provide clean and safe pepper, she added. According to deputy minister Doanh, 98 percent of Vietnamese pepper is shipped abroad. Therefore, he asked businesses to work with farmers to ensure safe and sustainable pepper production. In 2016, Vietnam's pepper exports reached 177,893 tonnes, earning $1.43 billion, an increase of 35.3 percent in volume and 13.5 percent in value year-on-year. http://english.vov.vn/economy/coffee-pepper-enterprises-and-farmers-should-connect-well-347458.vov

Businesses more aware of CSR: Vietnam Report 13/Apr/2017 Intellasia| VNS A survey by Vietnam Report JSC revealed today that leading firms in Vietnam are more aware of the importance of corporate social responsibility (CSR) for their growth and prosperity. Five CSR issues which received significant attention from firms were business transparency, local community aid, reducing unemployment, environmental protection and career orientation for the youth, according to the survey's findings. The major motivation behind businesses' CSR strategies is to preserve and enhance the brand's reputation, which accounted for 89.47 per cent of the responses. Businesses were also more aware that "to give is to receive," according to Vietnam Report. A majority of leading firms agreed that growth and prosperity were vital to their success. The findings were highlighted at a ceremony held on Wednesday in Hanoi to announce the top 500 best growth (Fast 500) and top 500 best prosperity (BP500) companies. 2017 is the seventh year in a row that Fast500 has been published and the second year for BP500. FPT Software topped the Fast500 list, while the Vietnam Military Telecommunications Group topped BP500. Vietnam Report also announced the top 10 property developers, which included VinGroup, Novaland, Sacomreal, CEO Group and Hoa Binh Group. For the first time, Vietnam Report officially launched the Top 50 Vietnam Best Growth and Prosperity at today's event. Its report on Vietnam's growth and prosperity in 2017 also pointed out that the economy must be transformed in terms of quality and efficiency to improve competitiveness for successful integration and sustainable development. http://vietnamnews.vn/economy/374542/businesses-more-aware-of-csr-vietnam- report.html#9cfCzIyIpDwRHu07.97

Competitiveness of logistics sector strengthened 13/Apr/2017 Intellasia| VNA The Vietnam Logistics Business Association (VLA) on April 12 launched the implementation of the prime minister's decision approving an action plan to improve competitiveness and development of logistics services by 2025. VLA President Le Duy Hiep said that this is the first national action plan on the logistics sector which is determined a high added value sector. Under the plan, the sector aims to contribute 8-10 percent to gross domestic product (GDP) by 2025. It also strives to achieve 15-20 percent service growth, reduce costs by 16-20 percent of GDP and rank 50th or better globally in terms of national competitiveness. Attention will be paid to forming leading logistics businesses that have good competitiveness, attracting investment in infrastructure, building logistics centres on regional and international scales, and improving the links between Vietnam and other countries. At present, the logistics sector has a growth rate of 16-20 percent and is one of the sectors with the best and most steady growth. It is key to increase businesses' competitiveness in the intensive integration. However, logistics costs remain high and infrastructure remains weak. http://en.vietnamplus.vn/competitiveness-of-logistics-sector-strengthened/110151.vnp

Logistics association to assist in national plan on competitiveness 13/Apr/2017 Intellasia| VNS The Vietnam Logistics Association (VLA) on Wednesday launched a ceremony to carry out the government's first national action plan to improve the country's competitiveness and its logistics sector by 2025. Le Duy Hiep, VLA chair, said that VLA had been assigned to complete several tasks of the plan. In February, prime minister Nguyen Xuan Phuc approved the action plan, which aims to have the logistics sector contribute 8 to10 per cent to the country's GDP, with annual growth of 15-20 per cent by 2025. The plan also calls for Vietnam to become one of the world's 50 leading logistics services providers. The plan recommends new policies, more investment in infrastructure development, and better cooperation between local and foreign logistics companies. The aim is to have logistics companies that can be competitive in both domestic and international markets. Under the plan, Vietnam will enhance connectivity with neighbouring countries and develop regional and international hubs. The plan calls for building level-1 logistics hubs (the highest level) in Hanoi and HCM City, and level-2 logistic centres in Lang Son, Lao Cai, Hai Phong, Da Nang, Quy Nhon, and Can Tho. Tran Thanh Hai, deputy director of the Ministry of Industry and Trade's Import-Export Department, said the country's logistics development has been modest, as there are only 1,300-1,500 firms in the sector. More than 70 per cent of the businesses are small- and medium-sized with average capital of about VND7 billion (US$320,000). "The country's logistics effectiveness has been low, while available resources have not been fully exploited," Hai said. The action plan would provide short- and mid-term solutions to improve the logistics sector in the next seven or eight years, he added. The initiatives taken by the government to strengthen the logistics industry and increase efficiency have been supported by industry insiders. Christoph Matthes, managing director of logistics firm DB Schenker in Vietnam, said, "We strongly support the plan as the logistics has become more important than ever before." In addition, increasing consumer demand requires a faster and more reliable way of delivery of goods. For many customers, logistics is no longer a matter of moving boxes from one location to another, but creating a highly efficient and reliable supply chain which enables them to be competitive in a fast- changing world. International trade is growing rapidly as well, and thus, a need to connect to other markets via air, ocean and road freight. Some of the largest export markets for Vietnam include the Asean region and Europe, where Vietnam competes with other countries and where logistics costs play a vital role. Trade with Europe is expected to increase with the EU-Vietnam Free Trade Agreement (EVFTA) coming into force next year. Experts said more steps were needed for smooth implementation of the agreement and to make sure businesses can fully benefit as soon as the treaty takes effect. The commitment of the Vietnamese government to strengthen the logistics sector is an important step towards making this possible. Nestor Scherbey, general director of logistics firm Customs, Trade and Risk Management Services Ltd Vietnam, said the national action plan would play a critical role in raising competitiveness. Logistics costs in Vietnam are among the world's highest, at 25 per cent of GDP, which hinders the cost competitiveness of Vietnamese firms, according to Logistics Insight Asia. Logistics costs in the US, Europe and the rest of the world are around 9, 13, and 15 per cent, respectively. "The efforts necessary to achieve a national action plan for logistics must be undertaken in co-ordination with diligent efforts by Vietnam to carry out the commitments of the World Trade Organisation Trade Facilitation Agreement (WTO TFA)," Scherbey said. Many of the major commitments of the WTO TFA were contained in the Trans-Pacific Partnership (TPP) and EVFTA. Full implementation of trade facilitation by Vietnam would reduce the country's international trade transaction costs by 20 per cent. "It is the combination of the benefits of trade facilitation, with the benefit of reducing domestic logistics costs, that will allow Vietnamese products to become fully competitive in global markets," he said. http://vietnamnews.vn/economy/374555/logistics-association-to-assist-in-national-plan-on- competitiveness.html#SPMx8Dj2sqw3OYkQ.99

Can Tho reviews economic plans 13/Apr/2017 Intellasia| VNS A Can Tho leader has said the city should co-ordinate with relevant ministries and other agencies to draw up economic plans, using all available resources and improving incomes and the city's economic vitality and quality of life. Trưong Quang Hoai Nam, deputy chair of the city People's Committee, was addressing the 2017 Annual Economic Forum on Wednesday, which was attended by nearly 100 economists and experts. Through the meeting, the city government seeks advice from experts on planning, the environment, land issues, taxation, and administrative reform. Huỳnh Văn Tung, deputy director of the Can Tho Institute for Socio-Economic Development Studies, said Can Tho's economy has grown by an average of nearly 14 per cent a year in the past decade. The city's average income is estimated at nearly VND65 million (US$2,850), exports this year are expected to be $1.28 billion and retail sales of goods and services are forecast to be VND16 trillion ($701 million). Around 60,000 jobs are expected to be created. But Tung said the economy faces major challenges. Many of the targets set under a resolution adopted by the city People's Council have not been achieved, economic growth is not as high as expected and falls short of the city's potential and status as a centrally run city and the heart of the Mekong River Delta region. Assoc Prof Dr Vo Thanh Danh of the economics faculty at Can Tho University said the financial and human resources available are inadequate for the city's economic growth. Moreover, restructuring of the workforce has not been thorough in sectors with high labour productivity, he said. He also pointed to a failure to take full advantage of the city's tourism potential, especially in utilising the capacity of its airport. Nam thanked the experts for their inputs and promised that the administration would review and speed up the allocation of funds for projects and for public spending. It would focus on assisting businesses, especially the industrial sector, based on the government's Resolution 02/NQ-CP, through a number of measures that would mitigate the difficulties faced by businesses and foster the markets, he said. The measures would include focusing all possible resources on developing infrastructure and improving vocational training, strengthening communication campaigns to raise awareness of the Asean Economic Community among public servants, businesses and the public, bolstering trade promotion at home and abroad, tapping all available opportunities to develop exports, encouraging the agricultural, forestry and fisheries processing sectors and improving the quality and value of agricultural, forest and aquatic produce. The city is also striving to adopt new production technologies and foster exports of new products with high value-addition, including in the footwear, garment and textile and handicrafts sectors. It will also focus on administrative reform to attract investments, considered a vital factor in increasing production and exports. To support the development of small- and medium-sized enterprises, the city will establish a zero-interest credit guarantee fund for small businesses and start-ups, guide investment promotion activities and issue a list of projects requiring investment, including foreign. Tourism businesses will work closely together to launch trips to various cities and provinces nation-wide. They will improve facilities and tourism services and help preserve traditional culture to develop tourism into a key economic sector by 2020. http://vietnamnews.vn/economy/374589/can-tho-reviews-economic- plans.html#sATmTWdQz2iqiZWO.97

Vietnam's medium-term outlook remains positive: WB 14/Apr/2017 Intellasia| VOV Vietnam economic growth has moderated in 2016 to 6.2%, accompanied by moderate inflation and a strengthening external position. Vietnam's medium-term outlook remains positive, albeit subject to downside risks both domestic and external. An acceleration of structural reform to support a more productivity-led growth model would help Vietnam sustain its long-term development. Rising antitrade sentiment and associated risks of protectionist measures in major economies pose significant risks to Vietnam's highly open economy. Economic activity in Vietnam moderated in 2016. GDP is estimated to have expanded by 6.2 percent in 2016, below the 6.8 percent in 2015. The slowdown was driven by weakness in the agriculture and mining sectors while manufacturing output and services growth strengthened. The agroforestry-fisheries sector expanded by a mere 1.36 percent, the lowest growth rate since 2011, reflecting unfavourable weather conditions in the first half of the year. The industry and construction sector expanded by 7.6 percent, below last year's 9.6 percent, driven primarily by a 4 percent contraction in the mining sector. By contrast, growth of the services sector accelerated to 7 percent from 6.3 percent last year due to buoyant private consumption and strong tourism receipts. On the demand side, stronger growth was supported by investment (spurred by strong FDI inflows) and improved private consumption. Healthy labour market developments point to an aggregate improvement in welfare and continued decline in poverty. Nearly 1 million people moved from agriculture, finding jobs mostly in industry and construction, which saw a 7.6 percent yoy growth, and to a limited extent in the service sectors. Observed growth in nonagricultural jobs is expected to compensate or was a coping mechanism for the stagnation of incomes in agriculture due to El Nino drought. However, localised increases in poverty are projected in communities (especially ethnic minorities) who are both more dependent on agriculture and less integrated into the rest of the economy, and those affected by the environmental pollution in the central coastal provinces of Vietnam. Resilient growth was accompanied by moderate inflation and a strengthening external position. After falling to record lows in 2015, inflation has picked up mainly due to administrative price hikes for health and education services but core inflation remains subdued and headline inflation has stayed below the official target of 5 percent. Despite the unfavourable external economic environment, Vietnam's exports (in nominal terms) increased 9 percent in 2016, outperforming most competitors in the region. This, combined with a slowdown in import growth, led to a trade surplus in turn widening the current account surplus from 0.5 percent of GDP in 2015 to an estimated 3 percent in 2016. Foreign direct investment (FDI) remains an important driver of Vietnam's trade and more generally economic performance. FDI inflows peaked in 2016 at a record level of almost $16 billion (7.7 percent of GDP). The exchange rate has been relatively stable throughout the year, though the dong started to depreciate in late 2016. The State Bank of Vietnam has gradually rebuilt foreign reserves, albeit they remained at a relatively low 2.8 months of imports at the end of 2016. In the context of a strengthening US dollar and sharper depreciation of currencies of major Vietnam trading partners, concerns of real exchange rate appreciation of the dong and its possible negative impacts on Vietnam's export competitiveness remain. While policy rates have remained unchanged, credit growth remains elevated. Credit growth reached about 19 percent (yoy) in December 2016. This rapid expansion of credit - more than twice the growth rate of nominal GDP - provides some cause for concern, particularly since Vietnam's credit-to-GDP ratio - about 120 percent in December 2016 - is already high and the overhang of past non-performing loans has not been fully resolved. Sizable and persistent fiscal deficits have emerged in recent years. The fiscal deficit averaged 5.5 percent of GDP during 2011- 16, compared to 2.2 percent of GDP during 2006-10. Preliminary data show that fiscal pressure remained in 2016, where the fiscal deficit was estimated at 6.5 percent of GDP. Persistently high fiscal deficit is the main reason for accumulating public debt which was estimated to reach the legally mandated ceiling of 65 percent of GDP at the end of 2016. Vietnam's medium-term outlook remains favourable. GDP growth is projected to improve gradually during 2017-2019, driven by robust domestic demand and export -oriented manufacturing. Inflation pressures overall are expected to remain moderate thanks to subdued commodity and energy prices globally. On the fiscal front, some fiscal consolidation is expected, as well as acceleration of divestment, though at a gradual pace that would contain the further rise of public debt. Vietnam's medium-term outlook remains positive, but pronounced downside risks remain. Domestically, delayed implementation of structural and fiscal reforms could intensify macroeconomic vulnerabilities and lower potential growth. Externally, intensifying uncertainties of the global economy could dim Vietnam's growth outlook through trade and investment channels. Dealing with vulnerability to shocks - which in recent years are mainly climate and environmental disasters - continues to be a challenge for improving household welfare, particularly in rural areas. http://english.vov.vn/economy/vietnams-mediumterm-outlook-remains-positive-wb-347539.vov

WB: 2017 growth at 6.3pct 14/Apr/2017 Intellasia| VN Economic Times World Bank releases East Asia and Pacific Economic Update. The World Bank's recently-released East Asia and Pacific Economic Update forecasts Vietnam's growth at 6.3 per cent this year, in line with favourable market sentiment and strong foreign direct investment (FDI). Economic activity moderated in 2016, it stated. GDP is estimated to have expanded 6.2 per cent in 2016, below the 6.8 per cent in 2015. The slowdown was driven by weaknesses in the agriculture and mining sectors while manufacturing output and services growth strengthened. The agriculture, forestry and fisheries sector expanded by a mere 1.36 per cent; the lowest rate since 2011 and reflecting unfavourable weather conditions in the first half of the year. The industry and construction sector expanded by 7.6 per cent, below the previous year's 9.6 per cent, driven primarily by a 4 per cent contraction in the mining sector. By contrast, growth in the services sector accelerated to 7 per cent from 6.3 per cent in 2015 due to buoyant private consumption and strong tourism receipts. On the demand side, stronger growth was supported by investment (spurred by strong FDI inflows) and improved private consumption. Healthy labour market developments point to an aggregate improvement in welfare and a continued decline in poverty. Nearly 1 million people moved from agriculture, finding jobs mostly in industry and construction, which saw 7.6 per cent year-on-year growth, and to a limited extent in the services sector. Observed growth in non-agricultural jobs is expected to compensate or was a coping mechanism for the stagnation of incomes in agriculture due to El Nino weather pattern. However, localised increases in poverty are projected in communities (especially ethnic minorities) that are both more dependent on agriculture and less integrated into the rest of the economy, and those affected by the environmental pollution in central coastal provinces in April last year. The report noted that Vietnam's medium-term outlook remains favourable. GDP growth is projected to improve gradually during 2017-2019, driven by robust domestic demand and export-oriented manufacturing. Inflation pressures overall are expected to remain moderate thanks to subdued commodity and energy prices globally. On the fiscal front, some fiscal consolidation is expected, as well as acceleration of divestment, though at a gradual pace that would contain the further rise of public debt. Vietnam's medium-term outlook remains positive but pronounced downside risks remain. Domestically, delayed implementation of structural and fiscal reforms could intensify macro-economic vulnerabilities and lower potential growth. Externally, intensifying uncertainties in the global economy could dim Vietnam's growth outlook through trade and investment channels. Dealing with vulnerability to shocks - which in recent years are mainly climate and environmental disasters - continues to be a challenge for improving household welfare, particularly in rural areas. In the meantime, the outlook for developing East Asia is expected to remain broadly positive over the next three years, driven by robust domestic demand and a gradual recovery in the global economy and commodity prices. The East Asia and Pacific Economic Update forecasts China's growth at 6.5 per cent in 2017 and 6.3 per cent in 2018, compared with 6.7 per cent in 2016. In the rest of the region, including large economies in Southeast Asia, growth is expected to pick up slightly, to 5 per cent in 2017 and 5.1 per cent in 2018, up from 4.9 per cent in 2016. As a whole, the economies of developing East Asia and Pacific are projected to expand at 6.2 per cent in 2017 and 6.1 per cent in 2018. "Sound policies and a gradual pickup in global economic prospects have helped developing East Asia and Pacific sustain growth and reduce poverty," said Victoria Kwakwa, World Bank vice President for East Asia and Pacific. "For this resilience to be sustained, countries will need to reduce fiscal vulnerabilities while improving the quality of public spending and fostering global and regional integration." http://vneconomictimes.com/article/vietnam-today/wb-2017-growth-at-6-3

Pressure builds up on Vietnamese economy over slow GDP growth 14/Apr/2017 Intellasia| Tuoitre News With Vietnam's economy slowing down in the first quarter, the government has requested that state-run corporations and associations pull out all the stops to help the country achieve the full-year GDP growth target. Vietnam logged a 5.1 percent GDP growth rate in the first three months of this year, the slowest quarterly pace in three years. Fearing that the low Q1 growth would prevent Vietnam from meeting the full-year 6.7 percent target, deputy prime minister Trinh Dinh Dung chaired a meeting on Tuesday with major state enterprises to find a solution for boosting economic performance. "GDP growth plays a crucial role as it creates bigger economic values, generates more jobs and shortens the development gaps between Vietnam and other regional countries," the deputy premier said at the meeting in Hanoi. Vietnam must post respective growth rates of more than 6.2 percent, nearly 7.3 percent and about 7.5 percent in the remaining three quarters to be able to meet its GDP target, according to the general Statistical Office. The expectations are now placed on the oil and textile and garment sectors, the country's biggest foreign currency earners. Vietnam plans to exploit some 12.28 million metric tonnes of crude oil in 2017, but the Ministry of Industry and Trade is considering increasing production by one million tonnes to contribute to the 'GDP boosting' plan. Deputy minister of Industry and Trade Hoang Quoc Vuong said this is not a tall order as production already topped 3.46 million metric tonnes in the first quarter. "If oil price in 2017 averages $55 a barrel, we will post a revenue of VND450,000 billion [$20.09 billion], exceeding our target by more than VND12,000 billion [$535.71 million]," Do Chi Thanh, deputy general director of the oil and gas giant PetroVietnam, said. Hopes for boosting exports for stronger GDP growth are also pinned on the footwear and textile and garment sectors. Vinatext, Vietnam's textile and garment giant, sets a ten percent growth target for 2017, seeking an export income of around $31 billion. However, general director Le Tien Truong said the road is bumpy ahead for the company to achieve the target, even though its first-quarter growth was 12 percent. "Production grew 12 percent in the last quarter but our profit was the same as last year," Truong said, pointing to regional competitors such as China, India and Indonesia. Those countries have depreciated their currencies against the dollar by 12-14 percent, whereas the USD- VND exchange rate remains stable. "Should the government adjust the forex rate by 7-8 percent, our textile and garment sector will be more competitive," he said. The same pressure is on the footwear sector, with tough competition particularly from China, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO). "With China recently investing heavily in automation, some Chinese footwear companies now need only 40 workers for a production line instead of 120," LEFASO deputy chair Diep Thanh Kiet said. LEFASO raked in $16 billion from footwear and handbag exports in 2016 and targets to take revenue to $17.5 billion this year, though Kiet admitted the goal may not be met due to the above challenges. http://tuoitrenews.vn/business/40506/pressure-builds-up-on-vietnamese-economy-over-slow-gdp-growth

92pct state capital still in businesses 14/Apr/2017 Intellasia| Saigon-Gpdaily Up to 92 percent of state capital has not been equitised, meaning private sector has attended insignificantly in fields which the state does not need to hold, reported the Steering Committee on Enterprise Reform and Development. So far, 96.5 percent of state own enterprises (SOEs) are subject to equitisation but equitisation value has totalled only 8 percent. By the first quarter this year, the country has equitised eight state own enterprises and one public service institution. Besides, the country has announced the value of 108 businesses but yet to approve their equitisation projects and has been estimating the value of 108 others. A business under Vietnam National Coffee Corporation has been dissolved and another's value has been approved for equitisation. About capital withdrawal, the government has sold state capital with book value of VND71.82 billion (US$3.16 million) at 10 enterprises and reclaim VND72.8 billion as of March 25. http://www.saigon-gpdaily.com.vn/Business/Economy/2017/4/124046/

PM pledges optimal conditions for investors in tourism 14/Apr/2017 Intellasia| VNA Vietnam always creates optimal conditions for investors in the country, especially in tourism, vowed prime minister Nguyen Xuan Phuc at a meeting with executives of Sun Group, one of the major investors with large tourism projects in Phu Quoc island in the Mekong Delta province of Kien Giang on April 13. The PM lauded the firm's investments in many huge projects across Vietnam, including the world's longest suspension cable to Fansipan Mountain in northern Lao Cai province, saying these have created jobs and contributed to socio-economic growth of many localities as well as the development of Vietnam's tourism trademark. Sun Group has run tourism and resort projects in Lao Cai, Phu Quoc, Da Nang and Quang Nam. The group's tourism and resort projects in Phu Quoc include JW Marriott Phu Quoc Emerald Bay, Premier Village Phu Quoc Resort and Premier Residences Phu Quoc Emerald Bay. Highlighting the Party and State's policy to turn tourism into a spearhead economic sector, PM Phuc suggested that the firm and other investors should work to introduce unique and impressive tourism products that are supported by locals. He also praised the authorities of Phu Quoc island district and Kien Giang province for adopting mechanisms to attract giant firms to invest in tourism infrastructure in Phu Quoc, regarding the move as a valuable experience in tourism development for localities. He noted that Vietnam enjoyed a growth of 20 percent in the number of tourists in 2016 and 30 percent in the first quarter of this year. In the first quarter of 2017, Phu Quoc island welcomed about 553,500 visitors, a surge of 82.7 percent year-on-year, including 139,000 foreigners, up 53 percent over the same time in 2016. The same day, prime minister Nguyen Xuan Phuc also laid flowers at the Phu Quoc Martyrs' Cemetery, which is the resting place of over 3,500 martyrs who laid down their lives in the island. During his visit to Kien Giang, the PM is scheduled to hold a working session with leaders of the province on the development of Phu Quoc special economic zone. http://en.vietnamplus.vn/pm-pledges-optimal-conditions-for-investors-in-tourism/110220.vnp

Deputy PM calls for sustained growth effort 14/Apr/2017 Intellasia| VNS Deputy prime minister Trinh Dinh Dung revisited themes of macroeconomic stability and sustainable development yesterday as he urged a concerted effort to reach future growth targets. In a first quarter review meeting with various departments, agencies and businesses, he also stressed the importance of maintaining trade balance and keeping inflation for the year to under 4 per cent. The deputy PM emphasised the need for increased productivity and efficiency in the oil and gas industry and greater support for the textile and footwear industry, given its high localisation rate and potential for employment generation as well as greater market penetration. The domestic car industry and electronic parts manufacturing should also receive encouragement to better integrate into the global value chain, he said. He reiterated the importance of geographical identification in boosting export value for made-in-Vietnam products, saying this would also boost product quality and their domestic market share. Hoang Quoc Vuong, deputy minister of Industry and Trade (MoIT), gave an assurance that his ministry would work closely with companies and business associations to resolve difficulties that they were facing. Vuong also asserted that the oil industry's current goal of exploiting an additional one million tonnes of natural gas this year is feasible with adequate effort. He said mining industries need a broader market share at home and abroad for better returns, while the electricity sector and other manufacturing industries would be driven by the nation's economic growth. Diep Thanh Kiet, deputy director of the Vietnam Leather, Footwear and Handbags Association, said that the footwear industry would continue to focus on its main import markets in the United States and in Europe without leaning towards any particular one towards ensuring a balanced export turnover. Dung asked the Ministry of Agriculture and Rural Development to focus on restructuring the agriculture sector towards tackling climate change challenges, minimising natural disaster impacts and generating higher product values. Nguyen Xuan Cuong, minister of Agriculture and Rural Development, responded that the ministry would focus on improving domestic agricultural value chain and food safety. Despite the agricultural sector's poor performance in the first three months of 2017, recording a 2.05 per cent growth rate, Cuong was confident that the targeted growth rate of 2.5 to 2.8 per cent for 2017 would be achieved. His ministry would collaborate with foreign chambers of commerce to expand Vietnam's export markets, with particular attention to China, India and other Asean countries as trade partners with the highest growth potential, Cuong said. The deputy PM called for more precise and effective policy frameworks to attract investment for infrastructure construction, mainly for transportation, energy and real estate sectors. He asked the Ministry of Planning and Investment to work with the MoIT and the general Statistical Office to clearly define growth strategies and monitor their implementation in each and every sector under their purview. The corporate sector, meanwhile, should take all possible economic scenarios into account in drawing up its own growth plans, he said. Other points of interest mentioned by the deputy PM included the need for regular, detailed research, quarter on quarter and year-on-year, on market demand and growth forecasts for domestic industries, particularly those with high added value. http://bizhub.vn/news/deputy-pm-calls-for-sustained-growth-effort_285477.html

Experts debate new gas environment tax 14/Apr/2017 Intellasia| VNS Experts have called on the Ministry of Finance to be considerate and transparent with their plan to spend the environmental protection tax applied on gasoline, which they have just proposed to double. The Ministry of Finance is drafting an amendment to the law on environmental protection tax. It suggests lifting the tax on gasoline from the current VND1,000-4,000 to VND3,000-8,000 per litre. Higher tax rates for other fuel products, such as diesel and fuel oil, are also proposed in the draft amendment. Should the new tax rate be applied, the price of gasoline will rise to more than VND22,000 (roughly $1) a litre, according to analysts. Some experts and lawmakers say the hike would hurt people's daily lives and Vietnamese gas production. Tran Ngoc Vinh, NA deputy from Hai Phong Province, said environmental protection is a necessary task, but protection the environment can't be based on taxation. "Most people use personal vehicles when travelling to work, a hike in gasoline prices would be a burden for them," Vinh said. Ngo Tri Long, former head of the Ministry of Finance's Price Management Institute, said that the proposed ceiling rate is so high that it will surely affect the market in general, Long added. "Moreover, it's irrational if the government tries to collect tax to make up for budget mismanagement, and it's absolutely a bad thing for the whole economy," Long said. Previously, the Vietnam Chamber of Commerce and Industry expressed concerns about the negative impact the new tax rate will have on the economy. Dau Anh Tuan, head of VCCI's Legal Division, said the proposed environment tax hike would hurt enterprises and the economy, since fuels are an important input for the transport, agriculture and seafood sectors. Need for transparency Pham Dinh Thi, director of the ministry's Tax Policy Department under the finance ministry, said gasoline contains chemicals that adversely affect the environment. It is therefore subject to special consumption taxes and environmental protection taxes with different names around the world. However, Ngo Tri Long said the most important thing is transparency in spending the environmental protection tax revenue. "In 2016 the total collection of environmental tax was VND40 trillion (US$1.7 billion) but we spent only VND10 trillion ($440 million). That means we haven't used up the fund, why do we need to increase the tax rate?" he said. Moreover, he said the tax is often set as a percentage of a good's price, but in this case the tax was set at too rigid a number. "That means that whatever the price of gasoline, the tax will always be VND4,000, or VND8,000. Why? It's unusual," he said. Nguyen Quang Thai from the Vietnam Economics Science Association, wondered about tax collection. "Will it stand as a separate fund or will it all go the state budget? If it is for the environment protection causes, it must be spent on the environment" he said. "This must be clear so that even if the tax is increased, people can still accept it," he said, adding that he doubted that the National Assembly would pass such proposal. Responding these opinions, Thi, head of the Department of Tax Policies, emphasised the ratio of 1 percent budget collection spent on environmental protection was just direct expenditure, not including indirect expenditure. "The environmental protection tax is collected according to the State Budget Law and spent according to the State Budget Law, not that the revenue from the environmental protection tax is only used for environmental protection," he said. Therefore, "it is impossible to say the environmental protection tax is spent less than collected and used not for the right purpose." However, such answer was not satisfactory to some. Bui Thi An, an NA deputy from Hanoi, said more information needs to be announced. "It's necessary to say upon what foundation such tax figures were proposed. How much do we need to make the air clean? How specifically will these tax revenues be spent?" she said. An added that it has been more than a year since the environmental protection tax was increased from VND1,000 to VND3,000, but no report has been announced on the spending of those funds. Nguyen Xuan Phuong, a resident of Hoan Kiem District, said if the tax will be strictly and seriously used to improve the environment, then he's all in for it. "I can say I, and many people, would be more than willing to pay the proposed tax if it is spent effectively on our environment," he said. http://english.vietnamnet.vn/fms/business/176473/experts-debate-new-gas-environment-tax.html

Expert: let market forces dictate allocation of resources 14/Apr/2017 Intellasia| The Saigon Times Economic restructuring largely centers on allocation of resources, and to ensure success, the government should create conditions for market forces play their role rather than maintaining the current ask-and-give mechanism, an expert said on April 12. Nguyen Dinh Cung, president of the Central Institute for Economic Management, told an annual economic forum held in Can Tho City on April 12 that economic restructuring is to improve productivity, efficiency and competitiveness first, and then the prosperity of the country and its citizens. Regrettably, many people including State officials do not see the underlying significance of economic restructuring, he commented. In his view, the cornerstones of economic restructuring are to reallocate resources and encourage initiatives of residents and enterprises rather than to reduce the proportion of the agricultural sector compared to those of industry and services. The restructuring of the economy will be successful if the market is free to allocate resources, especially manpower, capital and land use right, he told the forum themed "Solutions to enhancing Can Tho City's competitiveness in 2017-2020 with a vision to 2030." Changes to the proportions of such sectors are what to be achieved later, not the focus of restructuring, he said. "How should we allocate resources?" Cung asked. "We should let the market determine its demand, rather than making the distribution based on the current administrative ask-and-give mechanism." He noted that "all our resources are being allocated under an "ask-and-give" mechanism; those having good connections can tap the resources regardless of efficiency." To allow for the market to distribute resources, conditions must be created for the development of the capital market, the labour market, the land use right market, and only when these markets are developed can the current mechanism be replaced, according to Cung. The economist asserted the State must change its role first. "The State must undergo changes first; if the State still maintains the ask-and-give mechanism, such markets cannot develop, which hinders the initiatives and innovations of citizens and enterprises," he said. Therefore, the government should take steps to remove the prevalent ask-and-give administrative mechanism, he stressed. Can Tho City's vice chair Truong Quang Hoai Nam said at the forum that many investors recently visited Can Tho to sound out business opportunities, but the majority of them, especially foreigners, did not set up shop there. One reason is that authorities of Can Tho in particular and the Mekong Delta in general do not take appropriate measures to persuade investors. In particular, local governments often provide them with lists of projects. This imposes fields, scale and pledged capital of projects on investors, according to Nguyen Phuong Lam, deputy director of the Vietnam Chamber of Industry and Commerce in Can Tho. Cung suggested the municipal authorities look for a good logistics location to call for investors, especially those from Singapore. "I've attended some meetings, and realised their keen interest in investing in the Mekong Delta," he said. http://english.thesaigontimes.vn/53445/Expert-let-market-forces-dictate-allocation-of-resources.html

Vietnam spends over 28b dong daily on importing vegetables and fruits from Thailand 14/Apr/2017 Intellasia| Dan Tri The general Statistical Office (GSO) has released data about commodity import in Q1/2017. Notably, imported fruits and vegetables tended to increase in value compared to the same period last year with about 47%. Specifically, in January-March, Vietnam spent more than $230 million to import fruits and vegetables. This figure increased an additional of $74 million year-on-year with an increase of more than 47 percent in turnover. Among the largest fruit and vegetable import markets, Thailand ranked the first with $111.5 million, accounting for nearly 50 percent of the total value, followed by China with $46 million, reckoning for 20%. Vegetables and fruits imported from the U.S hit $18.1 million, making up nearly 10%. The markets including South Korea, South Africa, Australia, New Zealand, Japan, etc. shared the remaining import turnover. Thailand's vegetable and fruit import turnover over the past three months made up nearly 50 percent of the total turnover. Notably, this figure increased sharply compared to the same period last year with more than $52.2 million. Compared with the first three months of 2016, the import turnover of vegetables and fruits to Vietnam in Q1 improved $74 million (1.6 trillion dong). Of which, vegetables and fruits from Thailand contributed 71 percent with $52.5 million (nearly 1.2 trillion dong), representing nearly 71 percent of the turnover. On average, Vietnam spends more than 840 billion dong each month and more than 28 billion dong each day to import vegetables and fruits from this country. In fact, since 2015 backward, Chinese vegetables and fruits accounted for more than 50 percent of Vietnam's imported vegetable and fruits. However, since 2015, Vietnam removed tariffs upon participating in Asean community, committing to take out all tariffs for normal commodities (including rice, vegetables and fruits and frozen food, etc.) originating from Asean member countries. Therefore, this is the reason why Thailand vegetables and fruits have flocked to Vietnam. Besides, Thailand vegetables and fruits are relatively cheap, their appearance is eye-catching, and their quality and patterns are outstanding from vegetables and fruits imported from China, thereby gaining trust of Vietnamese people. Especially, Thailand vegetables and fruits are supported from Thai distribution businesses when many retail giants from this country successfully purchased many supermarkets and marts in Vietnam. This is the favourable condition in distribution, not only helping vegetables and fruits but many other items from Thailand to accelerate to Vietnam just in two recent years.

Gov’t policy & legal