Finance & Business News 24 July 2017

finance & business news 24 July 2017

FINANCE ...... 1 Four Vietnamese giants join hands to compete with foreign Reference exchange rate goes down 3 VND at week's beginning 1 businesses 33 Various interest rates drop sharply 2 Local firms not well prepared for Fourth Industrial Revolution 34 Credit growth reported at 9.06pct in six months 2 Da Nang determined to build startup city 35 Vietnam's foreign reserves at over $42b 2 Angel investor network incubates startups in central region 36 SBV prepares bad debt settlement plan 3 HCM City wastewater treatment sector expected to draw Guiding hand 4 investors 36 Will Korean investors launch massive penetration into Ben Tre Province to develop seven wind power projects 37 Vietnam's banking and finance market? 6 PM okays Van Don EZ development 38 First wholly Singapore-owned bank to operate in Vietnam 8 Tra Vinh invites investment for Dinh An economic zone 38 SBV official clarifies MA concerns in banking sector 8 VN among top ten US home buyers 39 Citi launches new Debit Mastercard in Vietnam 9 BIZ NEWS ...... 39 Multinationals view Asean with renewed optimism 10 Business Briefs July 24, 2017 39 Nearly half trilliondollars needed foressential infrastructure 11 Market turnover plummets 40 FDI attraction in first half records new peak 11 Shares slump on fears of steeper correction 41 Australia partially ends probe against Vietnam's zinc coated steel 11 The newest, richest millionaires in the stock market 41 DOC stops anti-dumping investigation against VN polyester fibre 12 Binh Duong Water Environment JSC debuts on HCM City bourse 42 Vietnam exports 2.66 million tonnes of rice in first half 12 Binh Son Refining and Petrochemical reports positive business Vietnam strives to earn 250 million USD from tea exports in 2017 13 results ahead of IPO 42 Vietnam world's fifth-largest exporter of suitcases, handbags 13 Mekong Capital to divest Loc Troi 44 MoIT extends deadline for requests on anti-dumping steel Cat Linh-Hadong urban railway deadlock persists 45 import tax 14 Grab and Uber choking out traditional competition 45 US Fashion Industry sours on sourcing clothing from Vietnam 14 Bitexco still pursues Binh Quoi-Thanh Da urban area project 46 PM orders close watch on market when US applies Farm Bill 15 Hanoi-Chungcheong air route to be launched this year 47 Govt urges caution in issuing new aviation licenses 15 Vietnam suspends double-decker tour pilot programme 47 Vietnam wastes at least 1 billion USD yearly on over fertilisation 16 Stroke hospital to be built in Can Tho 48 Customs clearance for HCM City importers allowed at ICDs 17 Starbucks opens its first store in Hai Phong City 48 HCM City's equitisation process progresses at snail's pace 18 Binh Duong to launch $42 million plant 49 Ba Ria-Vung Tau urged to strive for higher growth in 2017 18 Binh Thuan looks to expand VietGap dragon fruit area 49 Hope for merger and acquisition push in 2017 19 Bac Giang to revoke slow-moving investment projects in its city 50 Value of M&A deals forecast to reach $5 billion this year 20 Bac Lieu reviews FAO-funded project on shrimp farming 50 Transactions worth $3-4m account for 90pct in Vietnam Numerous violations found in FLC's million-dollar projects 51 M&A market 21 TTC Energy to instal solar panels for Ben Tre department store 52 Bright outlook for franchising in Vietnam 21 HK firm invests to build low-cost multiplexes 52 Attracting investors: PM shows the way 22 Japan-invested firm opens 42 million-USD factory in Binh Duong 53 E-commerce dominates purchasing habits 23 Meada to develop high-end property project in HCM City 53 Are 70-80pct of goods at supermarkets Vietnam-made? 24 Change in emphasis 54 Not to everyone's taste 24 Lotus design for new HCM City airport 55 Are Vietnamese businesses tired of doing business? 26 Vietnam promotes Ngoc Linh ginseng as a national brand 56 Real estate conglomerates vie for Hanoi railway projects 28 Vietnam's tra fish among top-quality items at Japan Aeon Wrapped up 28 supermarkets 57 Government urges competitive coal market 30 Mercedes-Benz sales in Vietnam grow by 60pct in H1 57 VN property market looks to up transparency 31 Major start-up conference, exhibit opens in Da Nang 57 Vietnam reaching a heady high in the global beer business 32 Taiwan expo to showcase green technologies 58 Four big firms share lucrative ice cream market 32 Vietnam Export Forum 2017 to take place in August 59 FINANCE FINANCE Reference exchange 24/JUL/2017 INTELLASIA| VNA rate goes down 3 VND The State Bank of Vietnam announced its reference VND/USD exchange rate at 22,429 at week's beginning VND/USD on July 24, down 3 VND from the end of last week. With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,102 Intellasia Tel: +844 2213 2244 No. 21, lane 173/63/17, Ngoc Ha Ward, Ba Dinh Dist, Hanoi Fax: +844 3759 2034 © All Rights Reserved Email: [email protected] Websites: www.Intellasia.Net www.TriTueAChau.com Vietnam finance & business 24 July 2017 VND per USD and the floor rate is 21,756 VND per USD. Major commercial banks kept their rates stable at the opening hours. Vietcombank offered 22,700 VND (buying) and 22,770 VND (selling), per USD, unchanged from the end of last week. BIDV also posted the same rates as Vietcombank's, with 22,700 VND (buying) and 22,770 VND (selling), per USD, also unchanged from the end of last week. Techcombank kept its buying and selling rates unchanged from July 21 at 22,685 VND and 22,780 VND. http://en.vietnamplus.vn/reference-exchange-rate-goes-down-3-vnd-at-weeks-beginning/115275.vnp

Various interest rates 24/JUL/2017 INTELLASIA| VNS drop sharply The lending interest rate is expected to further expand with the interest rate reducing sharply in the inter-bank, central bank bill and G-bond markets over the past 10 days. According to a report from Maritime Bank's market research division, a sharp drop in the interest rate has been continuously seen in the G-bond market this week. On Wednesday, the State Treasury issued VND3.6 trillion of G-bond with the interest rates falling sharply. The rates for five-year, 15-year and 20-year bonds declined by 0.21, 0.50 and 0.53 percentage points to 4.48, 5.75 and 6.02 per cent per year, respectively. Wednesday was also the third consecutive day the State Bank of Vietnam successfully FINANCE issued bills to withdraw money. The interest rate of the bills dropped sharply to 0.79 per cent per year against 1.1 per cent in the previous session and 1.75 per cent in the same period last year. Despite the significant withdrawal, which totalled nearly VND21 trillion (US$921 million), the interest rate on dong loans in the inter-bank market continued to slide sharply by 0.19 to 0.44 percentage points, hitting the lowest level from the beginning of this year. Specifically, overnight, one-week, two-week and one-month rates stood at 1.2 per cent, 1.36 per cent, 1.54 per cent, and 2.34 per cent, respectively. The inter-bank market also saw the rate of dong loans sliding to a lower level than that of the dollar. The overnight rate for dollar loans stood high at 1.31 per cent per year on Wednesday. After the central bank cut policy rates by 0.25 percentage points at the start of last week, a series of local banks reduced lending rates for priority sectors by between 0.5 and 1 percentage points per year. http://bizhub.vn/banking/various-interest-rates-drop-sharply_287740.html

Credit growth 24/JUL/2017 INTELLASIA| VNA reported at 9.06pct in Vietnam posted a credit growth rate of 9.06 percent as of June 30 compared to the end six months of last year, which did not pressure interest rates, Governor of the State Bank of Viet- nam (SBV) Le Minh Hung said on July 21. He made the announcement at a teleconference to carry out a National Assembly resolution on bad debt settlement and a plan on credit institution restructuring and bad debt settlement for 2016-2020. Credit in the economy has increased rapidly and evenly month on month, which was not the case in previous years, he noted, adding that loans were mainly poured into production and business activities. Hung said the central bank kept interest rates stable in the first half of 2017 despite high inflation in late 2016 and earlier this year. As inflation is under control and the SBV wants to facilitate business activities, the bank ordered credit institutions to cut interest rates for short-term loans in prioritised fields by 0.5 percent from July 10. The prioritised fields are agricultural and rural development, exports, activities of small and medium-sized enterprises, development of support industries and high- tech companies. Interest rates are at about 6 6.5 percent for short-term loans and 8 10 percent for medium- and long-term loans, the Governor added. http://en.vietnamplus.vn/credit-growth-reported-at-906-percent-in-six-months/ 115189.vnp

Vietnam's foreign 24/JUL/2017 INTELLASIA| VNEXPRESS reserves at over $42b At the conference on bad debt settlement in connection with the restructuring of credit

Intellasia 24 July 2017 2 / 59 Vietnam finance & business 24 July 2017

organisations organised by the State Bank of Vietnam (SBV) on July 21, Governor Le Minh Hung said the national foreign exchange reserves continued to increase in the first six months of this year, reaching over $42 billion. Compared with the end of 2016, the national exchange reserves swelled about $1 billion. Though the increase was low, it was encouraging in the context that Vietnam returned to trade deficit, about $2.7 billion in the first half. Hung added that the market's foreign currency liquidity was good, meeting foreign currency demands; the dong/US dollar exchange rate was rather stable in the first half of the year against the U.S Federal Reserve (Fed')s continuous decisions to raise interest rates. By the end of June, the total money supply rose 6.82 percent from the end of 2016, the credit growth improved 9.06 percenta high level compared to the same period in recent years. "Credit growth was high but was equal month-on-month so it did not put pressure on interest rates. Even, short-term lending rates for priority sectors further decreased 0.5 FINANCE percent", said the Governor. Currently, average lending rates are 6-6.5 percent/year for short terms, 8-10 percent/ year for long terms and 4-5 percent/year for good customers. Supposing that Fed is likely to continue having further adjustments for US dollars in the second half of 2017, Governor Hung emphasized that the State Bank will actively monitor developments to have timely and flexible solutions to support exchange rate stability, ensuring foreign currency liquidity of the economy. "The State Bank will continue operating central rate flexibly, taking initiatives in mon- etary policy solutions and tools to help stabilise exchange rate and avoid foreign currency hoarding", said Hung.

SBV prepares bad 24/JUL/2017 INTELLASIA| VNS debt settlement plan The central bank on Friday held an online conference to prepare for the implementation of the scheme to settle non-performing loans (NPL) and restructure credit institutions in the 2016-20 period. Addressing the discussion, State Bank of Vietnam (SBV) Governor Le Minh Hung talked about the implications of the National Assembly resolution on NPL settlement approved last month and prime minister Nguyen Xuan Phuc's Decision 1058/QD-TTg on credit institutions restructuring in the 2016-20 period issued on Wednesday, which gave the scheme the green light. Besides bad debt settlement, the scheme lists objectives, principles, solutions and itin- eraries to restructure the system of credit institutions in the period. To carry out it, Hung has asked all credit institutions to map out their own restructuring plans and submit it to relevant management agencies for approval. In their restructuring plans, institutions have to look at and assess their own finances, corporate governance, shareholders and charter capital ownership status. They have to also detail the objectives, orientations and solutions proposed for their restructuring and for bad debt settlement for each year. Hung has instructed all credit institutions to set up steering committees focused on these issues so that they can spot and report hurdles in the implementation process to the central bank without any delay. As the process of restructuring credit institutions and settling bad debts is linked to many ministries, agencies and organisations, Hung said he expected support and cooperation from all concerned so that the scheme can be implemented successfully. Under the scheme, all credit institutions will be restructured. The SBV will categorise solutions to restructure credit institutions into groups based on the type of credit institution. The country's system of credit institutions currently includes State-owned banks, joint stock banks, finance companies, financial leasing companies, foreign credit institutions, cooperative banks, People's credit funds and microfinance institutions. Methods and measures to restructure credit institutions will be applied in accordance with the specific nature of each institution and in line with the market mechanism

Intellasia 24 July 2017 3 / 59 Vietnam finance & business 24 July 2017

based on caution, ensuring the rights of depositors, and maintaining stability and system security under the government's policies on restructuring the financial market. The disposal of bad debts in the next few years must be linked to the implementation of measures to prevent and minimise new bad debts, improve the credit quality of credit organisations, and promote the role of Vietnam Asset Management Company (VAMC) in bad debt settlement. This is to ensure that the NPL ratio, including debts sold to VAMC, are maintained at a safe and sustainable level of less than 3 per cent of the total outstanding loans. The country finalised the first phase of bank restructuring in the 2011-15 period, which has helped the sector become more secure, and gained the trust of people and investors. Since the end of 2011, the SBV has dealt with nine weak banks. Some names have dis- appeared from the financial market through mergers and acquisitions, such as Habu- Bank (merged with SHB), Western Bank (merged with PVFC), Tin Nghia Bank and FicomBank (merged with Saigon Commercial Bank-SCB), and DaiABank (merged FINANCE withHDBank). After five years of restructuring, the central bank has still spotted out bad debts and fragile lenders issues to introduce more effective settlement measures. This shows that the process of restructuring the banking system still requires a lot of hard work. http://bizhub.vn/banking/sbv-prepares-bad-debt-settlement-plan_287758.html

Guiding hand 24/JUL/2017 INTELLASIA| VN ECONOMIC TIMES A new handbook provides advice to lenders and borrowers on the importance of "green credit". The Gia Lai Electricity JSC (GEC) has recently given much focus to environmental issues, gradually completing the Environment, Health, Safety and Social (EHSS) Policy at 15 hydro power plants to control and take the initiative when any incidents occur. When borrowing investment capital, the company also pays great attention to the production of documents relating to environmental regulations. Banks, meanwhile, monitor the company every three months to ensure that it complies with environmental and labour regulations. All are done as part of the concept of "green credit". Developing sustainably The example of GEC shows that green credit is proving to be a key concept in the global financial industry. The concept, however, remains relatively new in Vietnam. In support of its Circular No.39 on lending activities by foreign bank branches and credit institutions, the State Bank of Vietnam (SBV) has coordinated with the International Fi- nance Corporation (IFC) to prepare a handbook on social and environmental risk assessments for ten economic sectors, to serve the credit operations of commercial banks. The handbook is a toolkit to help banks assess social and environmental risks in credit projects and assist credit officers in appraising business plans, ensuring effective green and sustainable development and has received positive feedback from commercial banks and enterprises alike. Under the national action plan on green growth in the 2014-20 period, the prime minister assigned the SBV to review, revise, and complete financial and credit regulations so they are aligned with green growth objectives, organise training courses to strength- en the capacity of commercial banks and financial institutions in green credit activities, and develop banking and finance services to support green growth. The SBV aims to guide credit institutions to develop business strategies in line with the State's strategy on environmental protection and green growth. Investment projects using bank credit must therefore comply with regulations on environmental protection, social safety, and energy savings. Last year, outstanding loans to green projects reached some VND84.781 trillion ($3.72 billion), up 19.7 per cent against 2015 and accounting for 1.5 per cent of all outstanding loans, with some 3.2 million credit contracts signed. Credit granted to projects that have undergone a social and environmental risk assessment stood at some VND187.9 trillion ($8.26 billion) in more than 129,000 contracts.

Intellasia 24 July 2017 4 / 59 Vietnam finance & business 24 July 2017

The rise in outstanding loans expresses the increasingly important role green credit now plays for enterprises. According to VietinBank, the handbook provides the basis for and is an effective tool in assisting credit institutions and bankers in gathering more information on the assessment of social and environmental impacts in business plans or business production plans of customers. It helps to ensure investment, business, and profit goals while green and sustainable development is also given due regard. Similarly, VPBank assesses the social and environmental impacts of its loans based on the specificity and size of each project. For projects with high environmental risks, VP- Bank conducts field surveys and interviews stakeholders, including employees and surrounding communities. The bank is also gradually setting up detailed guidelines for monitoring compliance with environmental law after loans are granted. The handbook is also useful for business operations. Nguyen Trung Anh, director of the Research and Development Department at the PAN Group, said its issuance is appropriate given the trend towards sustainable development and it encourages enterprises to protect the environment and ensure safety in the working environment and FINANCE social responsibility. "Many investors, customers, and international organisations are also very interested in environmental factors when cooperating," he said. "It is also a means to promote environmental protection and for enterprises to carry out their social responsibility." In using the handbook, the risks in granting credit to businesses is much lower than when granted to businesses based on only business plans. In addition, Anh went on, the move by the SBV also shows the practical encouragement and support from the banking sector given to enterprises, which in part prevents risks from environmental violations early on. "Using the handbook also helps the banking sector improve its credibility through responsible action," he said. With Vietnam integrating internationally and signing many free trade agreements, the textiles and garments sector must comply with international commitments and regulations on labour, social responsibility, the environment, and technical barriers. Ac- cording to Dang Phuong Dung, former vice President and general Secretary of the Vietnam Textile and Apparel Association (VITAS), each customer has their own requirements, or code of conduct. "Only garment manufacturers who are judged to be in good compliance with the code of conduct can be involved in supply chains," she said. Environmental impact assessments are particularly important in the textiles industry, Phuong emphasized. Such assessments are usually evaluated by clients and independent organisations before textile and garment enterprises sign contracts and produce garments for export. The scope of the evaluation is very broad, based on an assessment of the plant's social and environmental impact, the working environment, and waste treatment systems, and consultations made with the population surrounding the factory, to better understand the impact of the plant or project. According to Le An Khang, CEO of Gia Lai Electricity JSC, during an appraisal of loans or investment documents, the bank or investor visits the factory to study its impact on the environment, in order to ensure it commits to implementing social and environmental protection. "The credit and investment agreements we sign have a clause on environmental responsibility for each disbursement," he explained. "Banks or investors continue to monitor our business every three months, focusing primarily on the implementation of environment protection and labour requirements." Challenges to implementation Though aware of the importance of the handbook, banks, credit institutions, and businesses agree there are many difficulties in applying it. Dang Thi Thu Hai, Head of the Legal Department at VPBank, said that, at present, Vietnam's social environment is paid little attention, so cooperation from customers in the implementation of social environment assessments is hard to acquire. "Customers may move to another bank that does not insist on enforcing social standards," she said. Moreover, assessing the impact on the social environment is a complex matter, especially for those who work in the banking sector. The activity requires specialised skills and knowledge of fields such as agriculture, chemicals, energy, and waste treatment,

Intellasia 24 July 2017 5 / 59 Vietnam finance & business 24 July 2017

according to a representative from VietinBank. "The cost of applying environmental mitigation measures is quite high," he said. "Therefore, businesses often find ways to reduce and limit this cost in implementing their business plans. Meanwhile, the management of the social environment by specialised agencies and the sanctions on offer remain limited. Few are interested in complying with social responsibility assessments." Using the handbook also presents enterprises with a host of difficulties. According to Phuong, textile and garment enterprises are often of small or medium size and the cost of applying the handbook is substantial. "Regulations in Vietnam often change and overlap, making it difficult for enterprises and reducing their regional competitiveness," she said, while suggesting the government and ministries create clear, transpar- ent legal corridors and a favourable business environment. Aside from the cost, if environmental assessments take a long time they also affect business operations. "If social and environmental assessments are not conducted rig- orously and seriously, they can generate negative results," said Anh. "Enterprises are FINANCE not fully aware of their social and environmental obligations and need specific guidance." Hai emphasized that the government should adopt preferential policies for banks that follow the handbook. The SBV needs to carry out performance appraisals and be aware of the handbook's application by enterprises and banks. The handbook also should cement the requirement for environmental and social risk assessments in accordance with Vietnamese law and the standards of international financial institutions such as the IFC. http://vneconomictimes.com/article/banking-finance/guiding-hand

Will Korean investors 24/JUL/2017 INTELLASIA| TRI THUC TRE launch massive Korean banks have recently been gaining attention on the financial market through a penetration into series of cooperation deals with not only large enterprises but also banks of Vietnam. Vietnam's banking Many people questioned whether there would be more big deals in the near future of and finance market? financial institutions made by South Korean firms. South Korean's leading bank signs comprehensive cooperation agreement with Viet- namese bank The Korea Development Bank (KDB) is a commercial and investment development bank 100 percent owned by the Korean government, similar to the Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) when it was not privatised. KDB ranks 1st in South Korea in total assets and equity, and ranks 94th in the world. KDB has presence in 22 countries around the world. In mid-April 2017, KDB marked an important presence in Vietnam with a comprehensive cooperation agreement with BIDV. At the meeting with prime minister Nguyen Xuan Phuc, KDB's Chair cum general director Lee Dong Geol said that he appreciates the prospects of Vietnam's economic development, and KDB will make more efforts to expand investment with Vietnamese partners, which in the immediate future is the cooperation with BIDV. Among the privatised banks, BIDV is having the highest state ownership with over 95 percent, which means that the bank also has the largest room for foreign investors of up to 30 percent under the State's policy. Since BIDV's stock got listed on the stock market in 2014 up to now, BIDV's leaders have repeatedly said that the bank is still looking for foreign strategic partners, and could sell 25-30 percent of its stake. In mid-2015, the bank's Chair at that time Tran Bac Ha shared that the bank would finalise its strategic shareholder in 2016 with the best selling price of shares. However, no further information has been released after that. Updating on the sale of stake to foreign investors at BIDV's 2017 annual general meeting (AGM), general director Phan Duc Tu said that the bank is also looking forward to finding partners but it is still difficult. The common difficulty of the banking sector when selling stake is that banks cannot sell at lower price than market price, while investors buying large batches expect low prices.

Intellasia 24 July 2017 6 / 59 Vietnam finance & business 24 July 2017

In the last four years, BIDV has been cooperating with financial institutions from developed economies. In addition to the above Korean bank, BIDV is also cooperating with a Japanese partner. There is possibility that these partners would become the strategic shareholders of the bank which has the largest total assets in Vietnam. Recently, another big bank from South Korea Daegu, has also announced the comprehensive cooperation agreement with Orient Commercial Joint Stock Bank (OCB) the first Vietnamese bank that Daegu has selected. In South Korea, Daegu is holding over 50 percent market share in lending to local small and medium sized enterprises (SMEs). According to general director of OCB Nguyen Dinh Tung, Daegu will support OCB in all aspects, including money transfer, international payment, product development, and SME customers; and direct training on risk management experiences, information technology or product development in South Korea, etc. More importantly, Daegu commits to provide the best companion programmes to facilitate OCB's further development in the South Korean business community in Vietnam. It will also share the experiences to gain 50 percent market share FINANCE in lending to local SMEs. Two South Korean representatives established wholly-owned banks in Vietnam, and Shinhan strongly poured capital to take over the retail segment of ANZ Vietnam. In addition to the cooperation agreements with BIDV and OCB as mentioned in the above, financial institutions from South Korea have also taken stronger and more direct steps in the Vietnamese financial market. The first case to be mention is Shinhan. In 2008, Shinhan Bank of Vietnam was licensed and became one of the first five banks with 100 percent foreign capital in Vietnam. In late 2011, to demonstrate its firm commitment to Vietnam's market, Shinhan acquired 50 percent stake of Shinhan Vina (a joint venture with 50 percent stake of the Commer- cial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) and 50 percent stake of Shinhan Bank), and officially renamed it Shinhan Bank Vietnam. In early August 2016, another bank of South Korea Woori Bank was approved by the State Bank of Vietnam (SBV) to establish a 100 percent foreign owned bank in Vietnam. Shinhan Bank was once again mentioned as in April 2017 it surpassed other four rivals to successfully acquire the retail segment which used to be considered a lucrative pie of ANZ Vietnam. According to internal information, Shinhan spent much larger capital than other rivals to win this deal. Under the agreement, ANZ will hand over eight branches and transaction offices of ANZ Vietnam in Hanoi and Hochiminh city, as well as the retail banking staff to Shin- han Bank. The retail segment of ANZ serves approximately 125,000 individual customers in Vietnam, with about 320 million Australian dollars in outstanding loans and about 800 million Australian dollars in outstanding deposits. According to information, the handover is underway and expected to be completed before the end of 2017. Talking to South Korean press recently, general director of Shinhan Bank Vietnam did not hide the ambition to become the sixth largest bank in credit card business in Viet- nam, aiming for the third position in the next 2-3 years. Vietnamese banks should not be subjective Year 2017 is the 25th anniversary of the establishment of diplomatic relations between South Korea and Vietnam, and 5th anniversary of the Free Trade Agreement (FTA) between the two countries. So far, the South Korean FDI firms in Vietnam have contributed up to 48 percent of the Gross Domestic Product (GDP) and South Korea is also the largest foreign investor of Vietnam. South Korean enterprises said that they have many promising developments in Vietnam, in the context of the country's fast-growing economy. While Vietnamese banks are still struggling to join the lending to FDI firms with very modest results, foreign banks, typical South Korean banks are showing much stronger foundation, in not only providing loans to local enterprises but also to the huge projects of Vietnam. Most recently, Keximbank from South Korea expressed its intention to invest in the metro lines in Hochiminh city, and particularly emphasized the wish to sponsor the

Intellasia 24 July 2017 7 / 59 Vietnam finance & business 24 July 2017

investment of 4b-1 metro line connecting to Tan Son Nhat international airport. This project has been studied pre-feasibility since the beginning of 2016, with total investment of about 250 million USD. In addition, Keximbank's leaders are also interested in investing in Metro line 4 and the 2nd package of the Metro line 5. This goodwill of Keximbank has received enthu- siastic support from the transportation sector. Minister of Transport Truong Quang Nghia even supported Keximbank to invest not only in the metro lines in Hochiminh city, but also in the metro projects in Hanoi, with its experiences and technical expertise. In particular, minister Nghia expects Kex- imbank to invest in three other transport projects, including Tan Van Nhon Trach project (1a and 1b packages), Lo Te Rach Soi project, and My Thuan 2 bridge project (about 250 million USD). According to observers in the financial sector, in addition to the wave of investing in banking and finance sector of financial institutions from Japan, UK, Hong Kong, Sin- gapore, Malaysia, and even the US, the presence of South Korean banks in Vietnam is FINANCE the highlight in the near future. Since having advantages in terms of the established trade relations, along with untapped potentials and the broader integration trend of Vietnam, the country will be an ideal destination for South Korean banks. And Viet- namese banks, in addition to receiving such wave of investment, should be well-prepared to compete if they want to survive and grow.

First wholly 24/JUL/2017 INTELLASIA| THE SAIGON TIMES Singapore-owned The State Bank of Vietnam (SBV) on July 19 gave approval in principle to United Over- bank to operate in seas Bank Limited (UOB) to open the first 100 percent Singapore-owned bank in the Vietnam country. The central bank also approved UOB Vietnam's board members, supervisors and general director. UOB has to complete procedures according to the SBV's regulations and guidance to be considered and granted a license for formal incorporation and operation in Viet- nam. In addition, the central bank allowed UOB Vietnam to set up a branch based on the HCM City branch of UOB right after being granted the license. UOB on July 20 said that the wholly foreign-owned bank in Vietnam will help UOB support Vietnamese enterprises and consumers as well as its regional clients investing in Vietnam. The bank will also help many Vietnamese companies with business expansion through business advisory services and financial solutions such as cash management and project financing. The Singaporean bank plans to extend its branch network beyond HCM City and con- siders a branch in Hanoi City. UOB has facilitated more than $3 billion of foreign direct investment from Asia into Vi- etnam since 2013. UOB's regional clients have invested in industries such as construction, real estate, manufacturing and fast-moving consumer goods. According to the central bank, eight wholly foreign-owned banks had been established and operated in Vietnam as of the end of 2016 including ANZ, HSBC, Hong Leong Vi- etnam, Shinhan Vietnam, Standard Chartered Vietnam, Public Bank Vietnam, CIMB Vietnam and Woori Vietnam. http://english.thesaigontimes.vn/55147/First-wholly-Singapore-owned-bank-to-operate-in-Vietnam.html

SBV official clarifies 24/JUL/2017 INTELLASIA| VNS MA concerns in Vietnam will have one more wholly foreign-owned bank if the merger and acquisition banking sector (M&A) deal on OceanBank is finalised, a State Bank of Vietnam (SBV) official said on Thursday. Bui Huy Tho, deputy director of the Department for Management of Credit Institution and Banking Operation Licensing under the SBV's Banking Supervision Agency, said that a foreign investor has started the second phase of comprehensive assessment of

Intellasia 24 July 2017 8 / 59 Vietnam finance & business 24 July 2017

the OceanBank's operation before deciding to acquire the lender. The potential investor is serious about the deal and has shown willingness to successfully finalise it, Th said in a press briefing on M&A Vietnam 2017 Forum, which will be held in HCM City on August 10. He affirmed that the acquisition of a credit institution was not a simple task, and it was necessary to give investors time to consider and appraise the situation, because banking operations, involving many assets, are complicated. If the deal is sealed, Vietnam will have another wholly foreign-owned bank, as the investor wants to buy 100 per cent shares of the bank, Tho said. OceanBank is one of the three banks the SBV took over at zero ng in 2015, due to its inability to settle soaring bad debts, to prevent a systematic collapse of the banking system. The other two are GPBank and the Vietnam Construction Bank. Tho said that domestic and overseas investors have shown interest in acquiring stakes in the other two banks, and they have been allowed by the central bank to approach them for detailed information before making the next move. FINANCE He said the Vietnamese government was encouraging local and foreign investors to participate in the restructuring of the three ailing banks. Concerning information that some banks have scaled down their business or with- drawn capital from local partners, Tho said that this was not a negative phenomenon. Regarding the Vietnam International Bank (VIB)'s acquisition of the Commonwealth Bank of Australia's HCM City branch, the official said that the CBA had closed its branch to focus on partnering strategically with VIB in Vietnam. On the divestment of the Hongkong Shanghai Bank Corporation (HSBC) from the Vi- etnam Technological and Commercial Joint Stock Bank (Techcombank), Tho said this case was not worth worrying. He said HSBC had set up a local bank in Vietnam with 100 per cent ownership, and the bank was operating efficiently; thus, it was understandable if it no longer want to be in a strategic partnership with Techcombank. Th stressed that these moves were in accordance with the SBV's strategy in managing credit institutions, in which the central bank wanted to reduce the number of credit institutions but focus on improving their operation quality, scale and transparency. He also forecast that with the birth of Resolution 42 on bad debt settlement, the main obstacles in dealing with collaterals would be removed, which would also facilitate and encourage more investors to take part in restructuring ailing banks through M&A activities. http://bizhub.vn/banking/sbv-official-clarifies-ma-concerns-in-banking- sector_287738.html

Citi launches new 24/JUL/2017 INTELLASIA| VIR Debit Mastercard in Following Citi's global success of launching Debit Mastercard cards in countries Vietnam around the world, Citi Vietnam will join 10 key Asia-Pacific markets in issuing their customers with the new, contactless Citibank Debit Mastercard. Linked to the bank account of the customer, the Citibank Debit Mastercard performs standard functions including cash withdrawals and purchase payments. The new Mastercard is also contactless-enabled, affording customers the convenience of paying for purchases at millions of merchants in almost 80 countries worldwide. "At Citi, our goal is to deliver best-in-class products and services, and to ensure remarkable banking experience for our clients, wherever they are. The new Citibank Debit Mastercard is packed with features, benefits and privileges, including exclusive offers on dining, shopping, travel and lifestyle purchases," said Natasha Ansell, Viet- nam Citi country officer. Debit cardholders will enjoy a suite of new features including access to Mastercard's highly successful Priceless(R) Cities programme, which provides exclusive travel and lifestyle experiences in more than 45 destinations around the globe. Citi Vietnam has commenced issuing the new Debit Mastercard to their customers, with all customers expected to receive the new card soon.

Intellasia 24 July 2017 9 / 59 Vietnam finance & business 24 July 2017

"We have accelerated efforts to transform our model to be simpler, dramatically faster, more scalable and far more digital. Mastercard is well respected for their global leadership and role in driving payments innovation, and we are very pleased to continue our work together to make payments simpler, easier, and more secure for our clients," added Ansell. Citi was one of the first major bank partners for Masterpass, allowing cardholders to pay with any enrolled credit, debit anywhere online or in app, using any device, elim- inating the need to enter payment and shipping details every time they make a purchase. "Beyond the convenience of making cash withdrawals and point-of-sale transactions anywhere in the world Mastercard is accepted, Citi customers will have access to new functionalities on their debit cards from making secure online transactions to contactless mobile payments and more," said Julienne Loh, executive vice-president, Global Products and Marketing, Asia Pacific, Mastercard. According to Euromonitor, debit is the fastest growing payment method in Asia Pacif- FINANCE ic, representing 58 percent of card payment volumes at around $6.58 trillion. In 2016, debit transactions grew at 21 percent CAGR, outpacing both credit transactions (18 percent) and cash (13 percent). Higher growth in transactions compared to average ticket size further indicates an increasing preference for using debit for everyday transactions. http://english.vov.vn/economy/citi-launches-new-debit-mastercard-in-vietnam- 355145.vov

Multinationals view 24/JUL/2017 INTELLASIA| VOV Asean with renewed A growing middle-income class, increasing regional integration in tandem with solid optimism economic growth over the past few years are some of the reasons multinationals are viewing Asean with a renewed sense of optimism, said the Business Times. The Deloitte Global Manufacturing Competitiveness Index for 2016, the Business Times said, noted that by 2020 Malaysia, Indonesia, Thailand, India and Vietnam could quite possibly rank among the top 15 manufacturing countries in the globe. Manufacturing labour costs in Indonesia, according to Deloitte, currently run about one-fifth of those in China, while in Vietnam and India they are about half the level of the most populous nation in Asia. The five Southeast Asian countries have a few distinct longer term competitive advantages over China, Deloitte said, such as better prospects for a continued growing younger workforce over the next three decades. In addition, a Regional Comprehensive Economic Partnership currently under negoti- ation among Asean and India, China, Australia, the Republic of Korea, Japan and New Zealand holds great promise for higher levels of commercial and services trade for the Southeast Asian regional bloc. Executives of leading multinationals are also taking a long hard look at these same five countries, especially Vietnam, as alternative manufacturing bases, said the Business Times, based on its review of interviews published in Voice of Asia. The executives cited by the Business Times all stated they were currently operating in Asean and were sanguine on continued prospects for their companies to prosper in terms of sales and earnings within Asean, especially expressing optimism with respect to Vietnam. The list of executives included those from Borden Company (PTE) Limited, which has been successfully selling its green Eagle Brand medicated oil produced in Vietnam since the 1960s. Similarly, Singapore-listed Darco Water Technologies said it is bullish on Southeast Asia, and Vietnam, even as it expands in China through a recent acquisition. The Asean market for environment solutions, whether water or waste, is very big, said CEO Thye Kim Meng. Real estate firms are also eyeing opportunities in Vietnam and other Asean markets, said the Business Times. Real estate broker Huttons was one of the first agencies in Sin-

Intellasia 24 July 2017 10 / 59 Vietnam finance & business 24 July 2017

gapore to expand into the Vietnamese and Cambodian markets. Wealth management and real estate services company ZACD Group, meanwhile, noted that the governments in Asean have started to liberalise their real estate markets in recent years. In 2015, new laws opened the Vietnamese real estate market to expatriates. Restrictions on foreign investors in the region would continue to ease and most likely cause investments to rise, said ZACD Group chair Kain Sim. Lastly, the Business Times cites Surbana Jurong, a Singaporean government-owned consultancy company focusing on infrastructure and urban development. It was formed in June 2015 with the merger of Surbana International Consultants and Jurong International Holdings. Surbana Jurong is proposing an integrated resort in Vietnam and building hydro-electric dams in Malaysia, which have benefited tremendously by the formation of Asean and the consequent lowering of tariff and elimination of other barriers to market entry. Our smart sustainable city initiatives have given us first mover advantage in address- FINANCE ing the Asean region's growing urbanisation, said Jeffrey Cheah, founder and chair of Surbana Jurong. http://english.vov.vn/economy/multinationals-view-asean-with-renewed-optimism- 355040.vov

Nearly half 24/JUL/2017 INTELLASIA| VOV trilliondollars needed Vietnam has enjoyed some of the highest economic growth rates in Southeast Asia av- foressential eraging just shy of 7 percent over recent years, says the Asia Times. infrastructure However, rising GDP has not translated to improved state finances and analysts esti- mate the country now needs at least $480 billion over the next four years to fund essential infrastructure. If the spending does not go through, analysts say Vietnam risks growth-restraining bottlenecks in logistics and transport, an obvious point to anyone who has ever been stuck in a HCM City traffic jam. Such projects include a $16 billion new airport for HCM City; a $14 billion highway linking the southern financial hub to the capital Hanoi; and mass transit metros for both cities. The government is presently weighing its options, says the Asia Times, as current in- flows of foreign direct investment are vastly insufficient and don't even come close to meet the massive amounts of money needed. For the first half of 2017 the government says it received $7.7 billion in foreign direct investment, says the Asia Times,and at that rate it would take more than 30 years to raise the nearly half trillion dollars needed. Based on its own estimates, says Asia times, the government can contribute about one- third of the $480 billion needed in coming years; the rest, officials acknowledge, will have to come from the private sector.

FDI attraction in first 24/JUL/2017 INTELLASIA| VIETNAMPLUS half records new peak This business is one of more than 1,000 foreign enterprises granted investment licences in Vietnam in the first six months of 2017. Notably, this is a research and deployment project, expecting to bring high added value to the country's economy. Outstanding efforts in improving the investment and business environment, especially improvements in administrative procedures, have helped Vietnam become an attractive destination for foreign investors. FDI poured into Vietnam reached more than 19 billion USD in the first half of this year, a new peak of the country's FDI attraction. 2017 is expect to establish new records in FDI attraction, especially after official visits to the US and Japan by the prime minister Nguyen Xuan Phuc. The visits with the participation of big Vietnamese enterprises are expected to link Vietnamese businesses to foreign partners and draw foreign investors to Vietnam./. http://en.vietnamplus.vn/fdi-attraction-in-first-half-records-new-peak/115273.vnp

Intellasia 24 July 2017 11 / 59 Vietnam finance & business 24 July 2017

Australia partially 24/JUL/2017 INTELLASIA| VNA ends probe against The Anti-Dumping Commission (ADC) under the Department of Industry, Innovation Vietnam's zinc coated and Science of Australia has announced the partial rescission of its anti-dumping and steel anti-subsidy investigation on Vietnamese zincs coated (galvanised) steel. Among the countries under the ADC's probe, which also looked into zincs coated steel imported from India and Malaysia, only Vietnam gets the partial termination. According to the Vietnamese Ministry of Industry and Trade (MoIT), the ADC concluded that Vietnamese galvanised steel producers and exporters received counter- vailable subsidies from the government during the investigation period but the subsidies never exceeded the negligible level. Therefore, the ADC decided to terminate the anti-subsidy investigation against all Vi- etnamese galvanised steel producers and exporters. Besides, the commission will not give any recommendations about subsidies for Viet- nam in its final report to the minister for Industry, Innovation and Science.

FINANCE The investigation also found that two out of the three Vietnamese producers and exporters who fully cooperated with Australian investigators had the dumping range lower than the minimal level. Hence, the commission has terminated the investigation into the two companies. The MoIT said that, the Australian commission took into account complaints from concerned parties, the statement of essential facts (SEF), comments relating to the SEF and information it received from the investigation process to make the decision. Parties may seek a review of the decision by lodging an application with the Anti- Dumping Review Panel within 30 days of publication of the notice. http://en.vietnamplus.vn/australia-partially-ends-probe-against-vietnams-zinc-coated-steel/115239.vnp

DOC stops anti- 24/JUL/2017 INTELLASIA| VNA dumping The US Department of Commerce (DOC) has announced the termination of anti- investigation against dumping investigation on polyester fibre imported from Vietnam. VN polyester fibre Earlier, on June 20, DOC officially initiated the investigation on polyester fibre imported from Vietnam, China, India, the Republic of Korea and Taiwan (China) based on pe- titions filed by DAK Americas LLC; Nan Ya Plastics Corporation, and Augira Polymers. The plaintiffs alleged that polyester staple fibre products are being shipped to the US at prices lower than their normal value. In addition, dumping has caused significant damage to the domestic industry due to price depression. The scope of these investigations covers fine denier polyester staple fibre, not carded or combed, measuring less than 3.3 decitex in diameter, coded HS: 5503.20.0025. The withdrawal of the lawsuit was requested for only Vietnam, and the investigation still continues with China, India, the Republic of Korea and Taiwan (China). According to the Ministry of Industry and Trade, Vietnam exported about 13,000 tonnes of fine denier polyester staple fibre with an estimated 12.4 million USD to the US in 2016, ranking third behind China (79.4 million USD) and India (14.7 million USD). http://en.vietnamplus.vn/doc-stops-antidumping-investigation-against-vn-polyester- fibre/115238.vnp

Vietnam exports 2.66 24/JUL/2017 INTELLASIA| VNA million tonnes of rice Vietnam exported nearly 2.66 million tonnes of rice in the first half this year with free- in first half on-board value of 1.65 billion USD, reported the Vietnam Food Association. The figures were up 0.25 percent in volume and 1.85 percent in value, respectively. The growth was attributed to increased demand and limited supply. Notably, japonica rice export saw the highest increase by around 300 percent year-on-year, accounting for 4.57 percent of Vietnam's total rice export compared to around 1 percent in late 2015. Japonica rice was shipped mostly to Australia, making up 5.24 percent of market share.

Intellasia 24 July 2017 12 / 59 Vietnam finance & business 24 July 2017

However, Vietnamese rice was predominantly delivered to Asia (about 70 percent), including China (43.8 percent), the Philippines, Malaysia and Singapore. Premium white rice, glutinous and broken rice shipments also went up 34 percent, 51 percent and 127 percent, respectively. Among exported rice in the six months, jasmine rice made up 28.8 percent, followed by premium white rice (28.6 percent). As of June 30, 1.46 million tonnes of rice were registered for export but yet to be delivered, roughly 490,000 tonnes of which will be shipped to Cuba, Malaysia and Bangla- desh. http://en.vietnamplus.vn/vietnam-exports-266 million-tonnes-of-rice-in-first-half/ 115210.vnp

Vietnam strives to 24/JUL/2017 INTELLASIA| VNA earn 250 million USD Vietnam's tea sector is aiming to export 150,000 tonnes and earn a turnover of 250 mil-

FINANCE from tea exports in lion USD in 2017, announced the Ministry of Agriculture and Rural Development 2017 (MARD). The sector also targets selling about 50,000 tonnes of tea for domestic consumption, earning about 10 trillion VND (439.9 million USD). To realise the target, the MARD advised processing firms to connect with tea growers and control the manufacturing process, while ensuring food safety and grasping technical barriers of importers. [Vietnam's five-month tea export sees strong growth] The ministry will increase trade promotion activities and provide support for businesses to participate in domestic and international trade fairs. In the first six months of 2017, Vietnam exported 63,000 tonnes of tea, raking in 98 million USD, up 17 percent in volume and 15 percent in value year-on-year. http://en.vietnamplus.vn/vietnam-strives-to-earn-250 million-usd-from-tea-exports- in-2017/115180.vnp

Vietnam world's fifth- 24/JUL/2017 INTELLASIA| TUOITRE NEWS largest exporter of Vietnam is the world's fifth-largest exporter of suitcases, backpacks, and handbags, the suitcases, handbags country's Leather, Footwear and Handbag Association (LEFASO) announced on Thursday. The Southeast Asian nation exported $3.2 billion worth of suitcases, backpacks, and handbags to the world's most prominent bag importers in 2017, LEFASO said, citing statistics from the International Leather, Footwear and Handbag Association. According to LEFASO, Vietnam ranks fifth among the ten largest exporters of suitcases, backpacks, and handbags the world over, contributing 5.4 percent to last year's global supply. Vietnam's suitcase, backpack, and handbag industry has reported consistent growth of 10-15 percent over the past five years, according to LEFASO chair Nguyen Duc Thuan. The growth is driven by international fashion brands who have taken notice of the quality of Vietnamese lather craftsmanship and chosen to move their handbag manufacturing facilities to Vietnam, Thuan added. In 2016, around 2.5 billion suitcases and handbags were bought around the world at the total cost of $300 billion. The US, Hong Kong, and Japan topped the list of global importers in 2016, according to LEFASO. China continues to hold its reign as the top exporter in the industry, accounting for 40.8 percent of global exports in 2016. In the first five months of this year, the US was the largest export market for Vietnam- ese suitcases, backpacks, and handbags, generating $555 million, a six percent increase over the same period in 2016, the Vietnam News Agency reported on Thursday. The European Union is Vietnam's second-largest export market at $365 million, up 8.2 percent year-on-year, according to the same source.

Intellasia 24 July 2017 13 / 59 Vietnam finance & business 24 July 2017

The other three export markets in the top five include Japan at $146.5 million, up 1.7 percent; China at $57.6 million, down 6.8 percent; and South Korea at $52.8 million, down 0.4 percent. http://tuoitrenews.vn/business/42084/vietnam-worlds-fifthlargest-exporter-of-suitcases-handbags

MoIT extends 24/JUL/2017 INTELLASIA| VNS deadline for requests The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade on anti-dumping steel (MoIT) will continue to receive requests from manufacturers, traders and others seek- import tax ing to ease or lift the anti-dumping tax on imported cold-rolled stainless steel from China, Indonesia, Malaysia and Taiwan until July 31, 2017. On September 5, 2014, the MoIT issued a decision to impose anti-dumping duties on several cold-rolled stainless steel products imported to Vietnam from China, Indone- sia, Malaysia and Taiwan. The first review was concluded on April 29, 2016.

FINANCE Anti-dumping regulations enable concerned parties to request an annual review of anti-dumping duties. The request for reviews includes the scope of products being subject to duty, the applicable anti-dumping tax rates, new exporters and more. On December 19, 2017, VCA started to get requests for a second review of the anti- dumping tax on cold-rolled stainless steel imported into Vietnam until April 15, 2017. In May, the MoIT issued a response to the review proposal submitted by several steel import companies and firms that sell steel to Vietnam. The second review covers the period from May 1, 2016 to April 30, 2017. However, during the review time, VCA continued to receive feedback from enterprises seeking to eliminate duties on some of the products subjected to tax. Therefore, VCA informed all those involved in cold-rolled stainless steel products that they can submit their requests to VCA before August 1. http://bizhub.vn/news/moit-extends-deadline-for-requests-on-anti-dumping-steel- import-tax_287741.html

US Fashion Industry 24/JUL/2017 INTELLASIA| VOV sours on sourcing According to a study, US fashion manufacturers and retailers report they have major clothing from Vietnam concerns about new trade barriers emerging that would place burdensome restrictions on the inflow of clothing imports from Vietnam. In the study conducted by the US Fashion Industry Association, a Washington, DC, group that works to eliminate tariffs and non-tariff barriers, nearly 70 percent of executives surveyed rated protectionist trade policies as their top concern. That's up from the No. 10 spot on the survey last year. In the study, which surveyed 34 executives employed by large multinationals, China was reported the largest sourcing arena for clothing imports into the US and Vietnam was considered the second go to spot. The percentage of respondents who reported they currently source product from Chi- na dipped 9 percent to 91 percent. In last year's study, all the respondent multinationals reported they manufactured clothing and textiles in China. While Vietnam was considered a popular sourcing destination, by the respondents, only 36 percent said they planned to increase their sourcing in that country over the next two years. This is a 17 percent drop from the 53 percent that last year reported they were interested in increasing production in the Southeast Asian country. The significant drop is attributable to the US pull-out of the Trans-Pacific-Partnership to which Vietnam was a signatory and that would have paved the way for duty-free clothing exports to the US and other TPP member countries. Bangladesh has been a popular sourcing destination because of its low-cost labour, but the executives surveyed noted the country's factories have a higher risk in complying with employment standards. Only 32 percent of the US fashion industry executives surveyed expected to increase their sourcing in Bangladesh.

Intellasia 24 July 2017 14 / 59 Vietnam finance & business 24 July 2017

While duty-free imports are critical for keeping costs down, most of the 19 free-trade agreements the US has with other countries are underutilised, the results of the survey indicated. Only the North American Free Trade Agreement was currently being utilised by more than 50 percent of the survey's respondents. Second on the list of concerns is competition from e-commerce sites that are cutting into brick-and-mortar store sales. Some 57 percent of respondents said they had concerns about the growth of companies such as Amazon.com and new entrants to online sales. Notably, only 71 percent of the US fashion industry executives surveyed felt optimistic about the future of the clothing and textiles industry, down from 92.3 percent surveyed last year. That is a record low for the annual survey started in 2014. http://english.vov.vn/trade/us-fashion-industry-sours-on-sourcing-clothing-from-vietnam-355111.vov FINANCE PM orders close watch 24/JUL/2017 INTELLASIA| VNA on market when US The prime minister has urged the Ministry of Agriculture and Rural Development to applies Farm Bill monitor on the market situation when the US applies the Farm Bill in September 2017. He asked the ministry to work with the Ministry of Industry and Trade and relevant agencies and associations to grasp the regulations of the bill so they can prepare management measures. The PM also asked the ministry to guide businesses to prepare to meet US import regulations and remove any difficulties in exporting tra fish to the market. The US Senate on February 4, 2014 gave final congressional approval to a five-year farm bill that is feared to hinder Vietnamese exports of tra and basa fish (scientifically named Pangasius). Under the provision, the inspection of catfish, including Vietnamese tra and basa fish, will be moved out of the remit of the Food and Drug Administration (FDA) and into the Department of Agriculture. Accordingly, it is a must for Vietnamese catfish exported to the US market to fulfill all requirements set for local products from production to packaging and exporting. Along with catfish, the bill also requires beef, lamb and poultry producers, among others, to stamp their products with the country of origin. http://en.vietnamplus.vn/pm-orders-close-watch-on-market-when-us-applies-farm- bill/115175.vnp

Govt urges caution in 24/JUL/2017 INTELLASIA| THE SAIGON TIMES issuing new aviation The government has just urged relevant ministries and agencies to strictly adhere to licenses regulations on business conditions when considering new civil aviation licenses, saying investors must meet all prescribed requirements if they want to get the go-ahead. The approval in principle and issuance of business certificates in the aviation sector must be strictly considered in line with the prevailing regulations, according to the government Office's notice on a conclusion which deputy prime minister Trinh Dinh Dung made at a recent meeting. The move is to enhance the effectiveness of investment and business activities, foster the healthy and sustainable business growth, and ensure the absolute aviation safety and security. The civil aviation industry which remains a conditional business sector requires huge investment capital. It has direct impacts on national defense and security, foreign af- fairs and traffic safety, according to the notice, which is made in response to recent pe- titions by the Civil Aviation Administration of Vietnam (CAAV) asking the transport ministry to quickly give the green light to some potential investors. The deputy PM asked the transport ministry to guide investors to fully comply with laws on investment, civil aviation, and other regulations. Besides, the ministry was told to review those cases asking for air services licenses in a proper manner before seeking the PM's final say.

Intellasia 24 July 2017 15 / 59 Vietnam finance & business 24 July 2017

In particular, he demanded the transport ministry work with the ministries of planning-investment, finance, justice, and culture-sports-tourism, as well as relevant agencies to instruct Tan Cang Offshore Travel and Flight Services JSC to complete its files applying for a business license for general civil aviation services. Besides, the transport ministry was tasked with instructing Globaltrans Air JSC to conduct regulatory procedures before its general aviation business license can be renewed. Notably, the deputy PM asked the transport ministry to team up with the Defense Ministry, other ministries, sectors and localities to inspect and review the implementation of the master plan for the aviation sector, and other relevant legal regulations. The results must be sent to the government prior to the end of next month. The government last year refused to approve an application for establishment of Viet- star Airlines, as the investor had yet to meet the chartered capital requirement. Its paid-in capital at the time was over VND70 billion less than the required VND700 billion. FINANCE More recently, CAAV sent a written inquiry to the transport ministry about the principle of establishing airlines, whether to follow the Investment Law or the Civil Avia- tion Law, together with Decree 92/2016/ND-CP on business conditions in the aviation sector. The decree stipulates a civil aviation firm must have chartered capital of at least VND700 billion to establish an airline with at least10 planes. However, at the time of application, Vietstar had only VND625.7 billion in an escrow account. CAAV said the Investment Law has made life more difficult for investors. For example, Tan Cang Offshore Travel and Flight Services JSC has yet to be granted an air business license though it had submitted the required VND700 billion, CAAV said. Last May, FLC Group, owner of Viet Bamboo Airlines Co Ltd (Bamboo Airways), sent an airline establishment request to CAAV, but failed to produce a financial confirmation statement as required by the current civil aviation rules. Projects in the air transport sector must be approved in principle by the prime minister, according to Article 31 of the 2014 Investment Law. If the required capital is paid in sufficiently, or the balance of an escrow account meets the minimum capital requirement, a long time of consideration will also make life difficult for investors, as in the case of Tan Cang, according to CAAV. Therefore, CAAV proposed the transport ministry ask the prime minister to issue a business license for FLC Group pending the submission of a financial confirmation statement in a later date. http://english.thesaigontimes.vn/55148/Govt-urges-caution-in-issuing-new-aviation- licenses.html

Vietnam wastes at 24/JUL/2017 INTELLASIA| VNA least 1 billion USD Vietnam wastes at least 23 trillion VND (1 billion USD) annually on fertilisation, ex- yearly on over perts said and called for replacement of conventional fertiliser with more hi-tech prod- fertilisation ucts. Le Nhu Kieu, vice head of Soil and Fertilisers Research Institute under Vietnam Acad- emy of Agricultural Science, said that about half of the amount of nitrogen fertiliser fed to plants gets released to environment, 70-80 percent of phosphorus fertiliser amount was kept in soil and 50-60 percent of urea fertiliser amount was either evaporated or eroded. On average, in Vietnam, plants and crops received only 35-40 percent of the fertiliser given to them, he said. About 11 million tonnes of inorganic fertilisers are used in the country on a yearly basis, he said. The leaked fertiliser pollutes water, impoverishes soil and makes it hard to restore the soil's quality. "Overuse of chemical fertilisers also threatens human and other living being's genes, as it could cause genetic mutations, which will bring diseases for crops," Kieu said.

Intellasia 24 July 2017 16 / 59 Vietnam finance & business 24 July 2017

Kieu told khoahocphattrien.vn that it is time to promote "hi-tech fertilisers" to increase productivity and be safer to the environment. Compared with conventional fertilisers, the hi-tech fertilisers can help increase productivity up to 20 percent. Using conventional nitrogen fertiliser on rice, farmers usually lose about half of the fertiliser amount. The loss can drop 20 percent when hi-tech fertilisers are used. Mai Van Quyen, former vice head of the Institute of Agricultural Science for southern Vietnam, said that major fertiliser producers are using new technologies. For examples, scientists are applying urea liquefying technology makes high-nutrient NPK (Nitrogen Phosphorus Postassium) and working to produce other substances that can be easily absorbed and released more slowly to the environment. The slow-release fertilisersor controlled-release fertilisersare polymer-coated. The thickness of polymer coats allows different absorption speeds. Quyen said that some polymer-coated fertilisers can be used for five months to nine months, which helps reduce the frequency of fertilising. FINANCE Proper fertilisation also helps avoid diseases and eutrophication an excessive richness of nutrients in soil. Despite of advantages, hi-tech fertilisers have not been used widely in Vietnam's farms. Trinh Thi Diep a fertiliser seller in Thieu Duy commune, Thieu Hoa district in the central province of Thanh Hoa said that her customers preferred conventional fertilisers because of lower prices and quick visible affects. "They use nitrogen fertiliser today and see its effect in tomorrow, as the leaves growth much greener," Diep said. Experts say that farmers lack proper understanding about new fertilisers. Business and relevant agencies need to boost communication to show farmers the effectiveness of hi-tech fertilisers. http://en.vietnamplus.vn/vietnam-wastes-at-least-1 billion-usd-yearly-on-over-fertilisation/115242.vnp

Customs clearance for 24/JUL/2017 INTELLASIA| THE SAIGON TIMES HCM City importers Importers of goods subject to customs procedures at the port of entry have been given allowed at ICDs the green light to complete their customs clearance at inland container depots (ICD) of Phuoc Long Port Co Ltd, according to the latest dispatch of the general Department of Vietnam Customs. The department said local enterprises that have goods under Article 1 of Decision No.15/2017/QD-TTg of the prime minister on the list of imported goods required to follow customs procedures at the port of entry is now allowed to transport their products from border gates to destination ports stated on bills of lading in order to go through customs if the port is a seaport or airport. Importers are also allowed to do the same if their goods have destination ports to be inland waterway ports, and inland container depots of Phuoc Long. The dispatch's detailed instruction is expected to help reduce the amount of goods which has been congested at ports since early this month. This problem occurred when customs officers at Cai Mep, Cat Lai and Hiep Phuoc ports cited Decision No.15 and the department's Official Letter No.4284 as a reason to disallow importers to transfer their goods to ICDs. The situation has had adverse effects on local firms. Notably, this regulation is not in line with other legal regulations and international practices. Therefore, the HCM City Department of Customs sent two official letters to the general Department of Customs asking for a way out. Phuoc Long's ICDs such as Phuoc Long I, Phuoc Long III, Transimex, Tanamexco, Phuc Long and Sotrans which are under the supervision of the Saigon Port Border Customs Sub-department Region IV have been allowed to carry out customs procedures so far.

Intellasia 24 July 2017 17 / 59 Vietnam finance & business 24 July 2017

HCM City's 24/JUL/2017 INTELLASIA| VNS equitisation process The equitisation of State-owned enterprises in HCM City has been progressing at a progresses at snail's snail's pace partly because their managements are dragging their feet, experts have pace said. Reviewing the progress made in equitisation in the first half of 2017, the steering committee for SOE renewal and development said it was tardy, with HCM City being the biggest laggard, with none of the 39 SOEs to be equitised in 2018-20 making any progress. It blamed the delay on several factors including the lack of will on the part of SOE managements to equitise quickly. According to the steering committee, 38 of the 39 city-based SOEs to be equitised have been formally instructed to equitise and carry out valuations and allowed to choose equitisation consultants. Seven of them have been instructed to sell their assets.

FINANCE But those with assets in other localities also have to get permission from the local province or city authorities. Many SOEs have found it difficult to assess the value of their landed assets. The management of the HCM City Urban Environment Co said it received the order to equitise last April, and in two months completed procedures for the sale of its assets. But the company has encountered legal problems with two of four land plots it has, affecting the valuation of its assets. Experts said one of the challenges facing companies planning to make initial public offerings is the low percentage of stakes they offer. Many investors prefer larger stakes in order to acquire management rights in the enterprises, they said. They also blamed the managements of some SOEs for the slow pace of equitisation, with some bosses designing policies to benefit investors who have close relations with them. Others, worried about losing benefits once their SOEs are equitised, make such plans for equitisation that would allow them to continue enjoying those benefits, Dr Nguyen Van Thuan of the University of Finance Marketing said. The determination of the SOEs' leadership and relevant agencies is the decisive factor in the equitisation process, he said. According to economist Bui Kien Thanh, the use of public monies sunk in SOEs, which account for 40-50 per cent of all investments made in the country, is inefficient, causing damage to the economy. "Though the decision on equitisation of SOEs was made more than a decade ago, the equitisation process has progressed slowly. It must be done thoroughly now." http://bizhub.vn/news/hcm-citys-equitisation-process-progresses-at-snails- pace_287755.html

Ba Ria-Vung Tau 24/JUL/2017 INTELLASIA| VNA urged to strive for Prime minister Nguyen Xuan Phuc has asked the southern province of Ba Ria Vung higher growth in 2017 Tau to review socio-economic targets for higher and more comprehensive growth in 2017. During a working session with the provincial authorities on July 21, the PM hailed the province for being one of the top localities in terms of foreign direct investment attraction. The province has carefully screened investors to prevent projects that pose risk of pollution, he said. However, he pointed out that seaports and their logistics services, tourism are yet to match potential while transport infrastructure and support industry are underdeveloped. Cai Mep-Thi Vai seaport still faces challenges such as underdeveloped logistics services and limited State management so that containers passing through Cai Mep port only reach 20 percent of designed capacity. Moreover, the private economy only accounts for a mere 23.91 percent of the economic

Intellasia 24 July 2017 18 / 59 Vietnam finance & business 24 July 2017

structure, with its capital making up 15 percent while that of the foreign-invested economy makes up nearly 41 percent. As Ba Ria-Vung Tau is standing before turning-points of development, PM Nguyen Xuan Phuc urged the province to make thorough preparations for promising projects such as Long Son petrochemical complex and Ho Tram resort. Ba Ria Vung Tau is a gateway to the region with a modern seaport system and part of a key zone in the National Tourism Programme. As home to 93 percent of the total oil reserve and 16 percent of the natural gas nationwide, the province ranks third nationwide in terms of revenue to the State budget with a value of 67 trillion VND (2.91 million USD) per year. Apart from oil and gas, the province is one of the energy, heavy industry, seaport, tourism and seaport centres nationwide. The Phu My Electricity Centre and the Ba Ria power plant now supply over 4,000MW out of the country's total 10,000MW of electricity. On the same day, the PM visited and presented gifts to policy beneficiary families in FINANCE the locality. http://en.vietnamplus.vn/ba-riavung-tau-urged-to-strive-for-higher-growth-in-2017/ 115220.vnp

Hope for merger and 24/JUL/2017 INTELLASIA| VNA acquisition push in Vietnam's merger and acquisition (M&A) market is seeking a big push as signs of a de- 2017 celeration have crept up this year. M&A deals in Vietnam hit an all-time record of 5.8 billion USD in 2016, a growth of 11.92 per cent compared to 2015's value, according to a report released at a press meeting to launch the M&A Forum 2017 on July 20. However, the market has seen a slowdown since the latter half of last year with fewer stellar deals. The total value of M&A deals reached just 1.1 billion USD in the first quarter of this year, down 24.4 per cent year-on-year. According to the latest research by the M&A Forum 2017, the domestic M&A market will likely not surpass 2016's peak without a breakthrough. "This will require a big push from the government and businesses to boost M&A activities to grow stronger in both quantity and quality," said Le Trong Minh, editor-in- chief of Vietnam Investment Review, organisers of the M&A Forum 2017, scheduled to be held in HCM City on August 10. M&A activities in 2017 will face challenges of rising competition in drawing foreign capital between Vietnam and regional countries and a slowdown in State-owned En- terprises (SOEs)' equitisation process, as well as the low quality of Vietnamese companies and small scale of the economy. The government's latest report showed that the progress of SOE equitisation has not kept up with the government's and investors' expectations. Only 52 SOEs were equitised in 2016, equivalent to 25 percent of the number recorded in 2015. In the first half of this year, the number was just 20, down 24 percent from the same period last year. Vietnam's M&A market value is small in comparison with other Asean countries such as Singapore with total M&A value in 2016 hitting 62.3 billion USD; Indonesia, Thai- land and Malaysia around 11-16 billion USD. In terms of deal values, most M&A deals in Vietnam were small with over 64 percent valued below 20 million USD. Foreign capital continued to play a dominant role in executing stellar deals with sizes of between 20-100 million USD. For example, Thailand's Central Group spent 1.05 billion USD to acquire Big C Vietnam from the Casino Group, and TCC Holdings purchased the entire chain of Metro Vietnam Cash & Carry for 800 million USD. Overseas investors accounted for roughly 77 percent of the total value of M&A deals in Vietnam in 2016. Asian companies continued to lead the market in terms of the number and value of the deals with Thailand, Singapore, the Republic of Korea, Japan, China and Hong Kong being the top five buyers in Vietnam.

Intellasia 24 July 2017 19 / 59 Vietnam finance & business 24 July 2017

Retail, consumer goods and real estate sectors were the most attractive ones for M&A activities, especially deals in the retail sector accounting for 38.5 percent of the total value in 2016. The working group of the M&A Forum 2017 provides two scenarios for M&A activities in 2017, of which the conservative ratio predicts the total value of M&A deals to reach around 5 billion USD this year, down 14 percent from 2016. In the optimistic scenario with a breakthrough from SOEs equitisation, total value could reach 6.2-6.5 billion USD or higher, equivalent to a growth of 6.5-10 percent. State divestments from big companies such as Sai Gon Beer-Alcohol-Beverage Corp (Sabeco), Hanoi Beer Alcohol and Beverage JSC (Habeco), Petrolimex, Vinamilk and MobiFone are on the investment radar for both foreign and domestic investors. In 2017-18, M&A deals will continue to focus on retail, consumer goods and real estate. In addition, telecommunications, energy and infrastructure are expected to emerge and see some big deals. Vietnam M&A forum 2017, an annual event of mergers and acquisitions for companies FINANCE and investors from Vietnam and other countries, will take place at GEM Conference Centre in HCM City on August 10. The event has been co-organised by Vietnam Investment Review (VIR) and AVM Vi- etnam since 2009 under the sponsorship of the Ministry of Planning and Investment. Under theme "Seeking a big push", the forum will be the platform to exchange sugges- tions, introduce opportunities and share experiences to create a breakthrough in the market this year. About 30 international and Vietnamese guest speakers and 500 senior leaders from investment funds, Vietnamese and international corporations are expected to participate in the event. http://en.vietnamplus.vn/hope-for-merger-and-acquisition-push-in-2017/115185.vnp

Value of M&A deals 24/JUL/2017 INTELLASIA| THE SAIGON TIMES forecast to reach $5 Mergers and acquisitions (M&A) transactions in Vietnam are forecast to reach about billion this year $5 billion this year, down from $5.8 billion in 2016 and $5.2 billion in 2015, said Le Trong Minh, editor-in-chief of Dau Tu newspaper. At a press conference held in Hanoi on July 20 to announce the upcoming Vietnam M&A Forum 2017, Minh said M&A transactions are facing numerous difficulties. En- terprises and the government should find ways to increase both the quality and the number of deals. According to an assessment of forum organisers, in 2016 and the first haft of 2017, the equitisation of State-owned enterprises was not as good as expected. In 2016, only 52 State enterprises went public, representing only 25 percent of the 2015 figure, and the number was 20 in the first six months of this year, or 76 percent of the same period last year. According to a report by the government, 96.3 percent of State enterprises have been equitised but only 8 percent of the State holdings have been offered to the public. In 2016, retail was among the key sectors of M&A deals, accounting for 38.46 percent of total value. A notable deal took place in early May 2016, when Central Group from Thailand acquired the Big C supermarket chain from Casino Group at $1.05 billion. Earlier, another Thai group, TCC Holdings, spent $800 million taking over Cash & Carry businesses in Vietnam from German retail group METRO. In 2014-2018, M&A transactions in Vietnam may hit $20 billion, Minh added. M&A has helped diversify capital mobilisation channels in Vietnam and boost economic restructuring and equitisation of State-owned enterprises. In addition, corporate governance and the competitiveness of many local enterprises have improved thanks to M&A deals. Vietnam M&A Forum 2017 will be held by Dau Tu newspaper on August 10 at GEM centre in HCM City. The forum will feature a specialised conference on M&A activities, a ceremony to honor the best M&A deals of 2016-2017 and a training workshop on M&A strategy.

Intellasia 24 July 2017 20 / 59 Vietnam finance & business 24 July 2017

Transactions worth $3- 24/JUL/2017 INTELLASIA| TRI THUC TRE 4m account for 90pct In 2016, the value of M&A deals worldwide reached $3.5 trillion, down 15 percent in Vietnam M&A year-on-year. The world's M&A in 2017 is forecasted to be unpredictable due to uncer- market tainties from Brexit to the impact of new policies of the US President Donald Trump. Especially, there are some indications that this year will continue to be the rise of China as a buyer. Meanwhile, US and European investors will be more cautious. In Vietnam, the M&A market in 2017 is expected to continue to be vibrant, after reaching the record high level of $5.8 billion in 2016, growing 11.92 percent from 2015. The bright spot of M&A activity in 2016 came from big deals in the retail sector such as Thai investors' acquisition of Big C, Metro, and divestment of state capital such as SCIC's divestment from Vinamilk to F & N. However, M&A activity from the second half of 2016 to the present has shown signs of slowdown and fewer large-scale deals. In the first quarter of 2017, the total value of M&A deals in Vietnam only reached $1.1 billion (equal to 75.6 percent of the 2016 av-

FINANCE erage). Therefore, without a new push in 2017, this market will hardly surpass the figure of $5.8 billion. On the other hand, although the M&A market in Vietnam is remarkable, the market scale is still moderate in Southeast Asia region. For example, also in 2016, Singapore's market scale was $62.3 billion, far surpassing the $11-16 billion of Indonesia, Thailand and Malaysia. The Vietnamese market's scale was 86.22 percent compared to the Phil- ippines, which had a total M&A value of $6.75 billion in 2016. On the scale of the deals, the Vietnamese market still mostly sees small deals with the scale of $3-4 million, accounting for 64.16 percent in value and 90 percent in volume. Foreign investors continue to play important roles with large-scale deals of $20-100 million. Over the past few years, M&A deals of large companies or large asset systems of over $1 billion in the Vietnamese market have appeared. The M&A market in 20172018 is forecasted to reach $5 billion. However, to reach this level, or the equivalent level to that of 2016, the market requires the resolution of the state in the capital divestment from corporations, large corporations, etc. because as noted, M&A growth in Vietnam is facing challenges such as competition in attracting foreign capital flows with regional countries; obstacles from the equitisation of state- owned enterprises (SOEs); business quality and scale of the economy.

Bright outlook for 24/JUL/2017 INTELLASIA| VNA franchising in This coffee enterprise has franchised more than 2,000 outlets nationwide since 2010. Vietnam With limited initial capital, an individual can own a coffee shop like this, including the brand's standard equipments such as design, interior, machinery, sound system and coffee mixing tools. It is one of many successful franchising stories in Vietnam. Nguyen Khac Hung, director of Napoli Coffee said "Franchising has become a global trend, and Vietnam is no exception. However, the story in Vietnam is different, for example we should reduce costs for partners to avoid pressure in franchising." In developed countries, franchising is a key model for businesses to penetrate the world market. Vietnam has become a potential market for large international and regional enterprises. Local businesses have also started franchising their brands to expand market share and increase brand value. According to economists, local franchisors face many challenges such as lack of capital, human resources and suitable business models. There's a lot for Vietnamese enterprises to do to catch up with other regional countries in terms of developing brand franchising. However, the country can make use of those countries' experiences to develop its own strategies in the field./. http://en.vietnamplus.vn/bright-outlook-for-franchising-in-vietnam/115274.vnp

Attracting investors: 24/JUL/2017 INTELLASIA| VNS PM shows the way To "attract eagles", Ben Tre needs to build nests first, prime minister Nguyen Xuan Phuc told an investment promotion conference held by the Cuu Long (Mekong) Delta

Intellasia 24 July 2017 21 / 59 Vietnam finance & business 24 July 2017

province on Thursday. More than 500 Vietnamese and foreign investors from various sectorslike renewable energy, eco-tourism, and agricultural and aquatic processingparticipated in the event. Phuc was impressed by the big investor turnout, especially the presence of some major companies, whom he called "eagles". To persuade them to stay and invest, Ben Tre needs to focus on four things, he said. "The first is to offer land to investors, especially in aquaculture, high-tech agriculture, processing and manufacturing, to support the agricultural sector and build more industrial parks." The others are to build infrastructure; provide investors with high-quality human resources; and adapt to changes and improve public services to take care of investors; and work together with them and share difficulties with them, he said. "I am very happy to see that many executives, even the ambassador of Denmark to Vi- etnam, and investors from Thailand, Japan and [Vietnam] have hailed the support provided by Ben Tre authorities. FINANCE "But that is not enough, the province needs to listen to and work together with enterprises." It needs to have a strategic plan to overcome the challenges of salinity intrusion since Ben Tre is one of the places severely affected by climate changes, he said. Recently the Japan International Cooperation Agency agreed to provide loans worth 24.2 billion yen (US$216 million) for the Ben Tre Water Management Project to mitigate salinity. Phuc said he would soon hold discussions with the Dutch government on measures to deal with climate change and rising sea levels in the delta, especially the worst hit areas like Ben Tre. Foreign connection Danish Ambassador Charlotte Laursen said Ben Tre has a long history of cooperation with Denmark, whose projects there cover both capacity building and poverty reduction, and include biogas, fisheries, agriculture, the environment and water. Though there are an increasing number of Danish investors interested in the Mekong Delta, especially Ben Tre, most Danish investments in the country are in Hanoi or HCM City. "I think I need to make the Danish investors more aware [of Ben Tre's potential] because they look at bigger areas like Hanoi and HCM City. I am very happy to come to Ben Tre and bring some investors with me so they can see the potential for themselves." According to Ureerat Ratanaprukse, the Thai Consul general in HCM City, Thais rank among the top foreign investors in the province with a total registered capital of $142 million, and Ben Tre is home to four leading Thai companies. "For Thailand, Ben Tre is definitely one of our important economic partners in Viet- nam." She said the Thai companies choose to invest in Ben Tre due to "3Ls" location, logistics and labour. "Ben Tre Province and provinces in Thailand share many common characteristics. Sit- uated in the Mekong Delta, Ben Tre is suitable for agricultural production. Its abundant and high-quality natural resources, especially fruits and fisheries, make Ben Tre a strategic location for food processing industries, including those from Thailand." Thanks to its geographical proximity to HCM City and Can Tho and two bridges connecting to nearby places like Tien Giang, Ben Tre has very convenient transportation, she said. Ben Tre has an abundant and skilled workforce, with 50 per cent of its 1.5 million population being workers, more than half of them trained, she said. "But more importantly, the province's support for all investors through several measures including tax exemption plus the determination and commitment of the leaders, which are clearly reflected in the 2017-20 provincial Master Plan on improving the infrastructure, industrial clusters, tourism, agriculture and renewable energyin particular solar and wind energy, make Ben Tre an attractive hub for investment."

Intellasia 24 July 2017 22 / 59 Vietnam finance & business 24 July 2017

With its incentives and constant support to investors, Ben Tre has attracted 40 new projects this year. Of them, 37, worth VND20.6 trillion ($900 million) are by local investors and the remaining three are FDI projects worth $217 million. At the conference, 30 projects worth VND 45 trillion ($2 billion) received licences from the provincial authorities. http://bizhub.vn/news/attracting-investors-pm-shows-the-way_287735.html

E-commerce 24/JUL/2017 INTELLASIA| VNA dominates purchasing With the rapid evolution of technology and the internet, consumers are changing their habits attitudes and behaviours. Therefore, moving fast to understand changes in consumer demands is crucial for any business to grow sustainably, according to research conducted by Kantar Worldpanel Vietnam.

FINANCE Internet accessibility in Vietnam at present includes 94 percent of urban households and 69 percent of rural households. If internet accessibility continues to grow at the current pace, nearly 100 percent of Vi- etnamese households will be connected to the internet in the next five years, the research said, adding that the number of broadband subscribers in Vietnam is 53.411 million. The development of such services has prompted businesses and consumers to use the internet for different purposes like marketing, selling, buying and payment. According to Google, eight out of ten Vietnamese consumers are online at least once a day. Today's Vietnamese consumers are also more familiar with shopping online. Even before they make a purchase, consumers use the internet to find information on products they considering buying, the research said. Higher purchasing power breeds greater aspirations, but does not mean that consumers will spend uncontrollably. "Over time, we have seen that households tend to save a greater proportion of their total income for the future and with interest rates in Vietnam still relatively rewarding, it is understandable. Anyone selling any consumer goods now has greater competition, within a smaller pie," the research noted. Nguyen Huy Hoang, Business Development directorKantar Worldpanel Vietnam, said thanks to widespread internet coverage, Vietnamese consumers can access more diverse products and services. Through virtual stores, they can purchase products at home. With rising incomes and a growing middle class, cross border shopping is another developing trend. Many international brands start seeing Vietnam as a great opportunity for them to increase their sales. Today, this is happening in various industries such as fashion with many international brands moving into Vietnam and in fast moving consumer goods markets. More foreign brands can penetrate Vietnam'smarket thanks to the proliferation of foreign retailers entering the market such as Emart, Aeon Mall and most recently 7-Elev- en. Each has their own plan to expand with more store openings that will make more international products more accessible. With more foreign products more accessible to the masses in modern arenas but also in more traditional stores, this represents a threat to local products in Vietnam. Hoang said using the internet, businesses can promote their products to consumers in other countries quickly and cheaply, noting that borderless online shopping allows enterprises to maximise sales. The internet can also help farmers, small enterprises and communities introduce their products to the world. However, he said, the e-commerce market in Vietnam is still at the very early stage of development and needs big players to bring knowledge, know-how and expertise.

Intellasia 24 July 2017 23 / 59 Vietnam finance & business 24 July 2017

Fabrice Carrasco, Managing director of Kantar Worldpanel Vietnam and Philippines said Vietnamese consumers raise a lot of issues, with brand owners finding it hard to keep up with their modern lifestyle, independent decisions and demand for product sophistication. Such complexity requires developing on-trend products and talking to shoppers. http://english.vov.vn/economy/ecommerce-dominates-purchasing-habits-355060.vov

Are 70-80pct of goods 24/JUL/2017 INTELLASIA| VIETNAMNET at supermarkets The Ministry of Industry and Trade (MOIT) reports that Vietnamese goods account for Vietnam-made? 70-80 percent of the goods displayed at supermarkets, but analysts doubt the figure. Foreign retail chains have been expanding their business scale in Vietnam, displaying more and more goods from home countries at their supermarkets. However, MOET still affirms that 70-80 percent of the goods on the shelves at supermarkets are 'Viet- namese'.

FINANCE In MOIT's opinion, all the products made in Vietnamese territory, no matter whether they are made by Vietnamese or foreign invested enterprises, must be listed as 'Viet- namese goods'. As such, the products of multi-national conglomerates such as Samsung, Unilever, P&G, Pepsi and Coca-Cola, or products of some Vietnamese brands which have been sold to foreigners such as Kinh Do, X-Man and Bibica are all counted as 'Vietnamese'. Vu Kim Hanh, chair of the Vietnam High-quality Goods Enterprise Association, pointed out that there is a confusion about 'Vietnamese goods'. An international brand must not be considered 'Vietnamese' even if the product is made in Vietnam at the factory which hires Vietnamese workers and uses Vietnamese materials. And it will still be an international brand if the owner leaves Vietnam and sets up a production base in another country. Kinh Do, the sweets brand, was once a Vietnamese brand. However, after it was sold to foreign investors, the investors stopped registering Kinh Do as 'Vietnamese high- quality product', because this is now a foreign owned brand. However, Kinh Do, like other brands with 'Vietnamese origin', is still counted by state management agencies when making reports to prove that the 'Buy Vietnamese' cam- paign has been successful. Nguyen Van Nam, former director of the Trade Research Institute, said he has suspi- cions about the reported proportion of 70-80 percent of Vietnamese goods at supermarkets. He believes that state management agencies tend to count all the products 'made in Vi- etnamese territory' as 'Vietnamese goods' to 'embellish' reports. State agencies need to show the real figures to show the real panorama of the Vietnamese economy. What is the percentage of authentic Vietnamese goods? Hanh believes the figure could be around 40 percent. Vu Vinh Phu, former deputy director of the Hanoi Trade Department, said he doesn't agree with the concept about 'Vietnamese goods' defined by by MOIT. "If counting farm produce alone, Vietnamese products may account for 80-90 percent. However, Vietnamese goods just account for 5-10 percent of cosmetics and electronics. Most processed food products are imports or products of foreign companies which set factories in Vietnam," he said. "Vietnamese goods are estimated to account for 40-50 percent," Phu said. http://english.vietnamnet.vn/fms/business/182315/are-70-80-percent-of-goods-at-supermarkets-vietnam-made-.html

Not to everyone's taste 24/JUL/2017 INTELLASIA| VN ECONOMIC TIMES Vietnam has seen a boom in fast-food chains but the failure of some poses questions about whether the market has become saturated and is no longer attractive. Vietnam's fast-food segment has become much more competitive as a huge number of chains arrive in the country, but some are now reviewing their business activities

Intellasia 24 July 2017 24 / 59 Vietnam finance & business 24 July 2017

while others are departing. Analysts say that as Vietnam is an emerging market, investors need to follow a reasonable path in order to reap the benefits. Most fast-food brands in Vietnam are "giants" but not all can succeed here. "Meeting the tastes of customers, which are rapidly changing along with the development of society, is one of the biggest challenges for any business," Nguyen Huy Thinh, general manager of Mc- Donald's in Vietnam, told VET. Learn to compete McDonald's opened its first outlet in Vietnam in 2014 and quickly found favour. Nguyen Bao Hoang was appointed to bring the Big Mac to Vietnam as a Developmen- tal Licensee, with the contract signed the result of cooperation with the UK-based international law firm, Allen & Overy, and the result of a "rigorous" selection process, the fast-food giant said. McDonald's attracted 20,000 customers and earned around VND1.5 billion ($71,130) in revenue in its first two days in the country. Similar to Burg- er King, it also adopted an ambitious plan to have 100 stores within a decade. But four years on, it is yet to expand beyond HCM City. FINANCE It has introduced Western breakfast dishes such as egg muffin, sausage, hotcakes, and hash browns in a bid to win over picky Vietnamese palates, though it remains doubtful that such fare is appealing to local people. In fact, "studying the tastes of Vietnamese customers is an important factor for every fast-food business," Thinh said. "Customers are not afraid to try new food, but customer demand doesn't stop at simple food. There is also a desire to experience quality service in beautiful spaces." Burger King introduced the Whopper to Vietnam in 2011 through opening its first outlet at Tan Son Nhat International Airport in HCM City, and had an ambitious plan to open 60 outlets within its first five years. It has invested $40 million in developing its chain in prime locations in major cities and provinces, but closed two outlets, in Tan Binh district and District 3 in HCM City, last year, two in HCM City and Hanoi in 2015, and one in Da Nang in 2014. Burger King Vietnam declined to comment for this story but in an interview with local media, Johnathan Hanh Nguyen, a representative of the franchise, said the US fast- food chain would not exit from Vietnam. "Some shops might have closed, but new shops will open," he was quoted as saying. Analysts, meanwhile, believe that Burger King is meeting problems in Vietnam as its strategy of "Taste is King", imposing US tastes in Vietnam, is not suitable. Its hamburgers, which stand at a price disadvantage compared to local "banh my" (bread and fillings), are simply not favoured by Vietnam- ese. While the "King of Branded Goods" previously revealed the secret of his franchise as being "location, location, location", it is unfortunately just one of many factors in winning in the fast-food segment. Many analysts also said that Vietnam's Western-wannabe attitude has changed, and that local people have turned their backs on foreign fast-food after their curiosity was sated. Many local customers said the prices at foreign fast-food restaurants are too high and the food not really suitable. "Not meeting the needs of the target audience is one cause of failure in the food and beverage (F&B) field," according to Nguyen Phi Van, Chair of Retail and Franchise Asia. Change & develop In contrast to Burger King and McDonald's, KFC, Lotteria, and Jollibee have become popular in Vietnam by adapting to local tastes, though all struggled in their initial years before finding success. Jollibee was the first to arrive in Vietnam, followed by KFC and Lotteria. KFC opened its first outlet in HCM City in 1997 and faced trouble at the time, as local consumers were unfamiliar with the concept of "fast-food". Outlet numbers grew slowly, reaching 17 after seven years. It then adjusted its strategy, in particular changing its menu, for example by adding rice and vegetables to its signature fried chicken. By 2011, it had 100 outlets. Though facing major challenges in Vietnam and incurring losses for the first seven years, it now has more than 140 outlets in 19 cities and provinces and em- ploys some 3,000 people. South Korea's Lotteria, belonging to the Lotte Group, was also early on the scene,

Intellasia 24 July 2017 25 / 59 Vietnam finance & business 24 July 2017

opening its first outlet in 1998. By late 2012 it had 140 outlets then 207 by 2015, opening an average of 20 each year. But it then opened just four new outlets in the first half of 2016. Regardless, Lotteria remains one of the leading fast-food brands in the country, with over 210 outlets in 30 cities and provinces and, though slow, outlet numbers continue to rise. The success of Lotteria is due to its extensive network of outlets, its diverse menu, and its dynamic marketing activities. The first on the scene, Jollibee, opened its first outlet in Vietnam in 1996 but has per- haps struggled more than KFC and Lotteria to gain a foothold in the country. By the end of 2012 it had just 25 outlets. In the 2012-2015 period, though, it grew quickly, opening nearly 50 new outlets, reaching 73 by the end of 2015. It now has around 80 stores in Vietnam and has also changed its menu to make it suitable with Vietnamese taste buds. General speaking, efforts to localise menus have made these brands more attractive among local people. Localising the menu encourages people to walk through the front door, and once inside they may be open to trying something different, according to FINANCE Robert Tran, CEO of business advisory firm the Robenny Corp. Moreover, customers can purchase a rice meal for only VND35,000 ($1.6) or a burger for VND49,000 ($2.2) at lunchtime. More and more people, especially the younger generation, have started having lunch at fast-food outlets rather than at street stalls or small eateries, as they can enjoy a meal at an affordable price amid air-conditioned comfort. Hoang also told local media that it is no easy task introducing a brand such as McDonald's to Vietnam. "I therefore had to be very careful when conducting research," he said. Vietnam presents a host of other obstacles for foreign fast-food brands. Thinh said that the appearance of more and more franchises in the country enhances the level of competition in the industry. "Challenges in location, workers, and product and service quality are all problematic for enterprises when making decisions," he said. Nguyen Hong Lam, Managing director of Jollibee Vietnam, told VET that the search for premises that are consistent with the needs of the company's business leads to higher costs. Analysts also say that local brands possess advantages that their foreign counterparts don't, such as affordable prices and a comprehensive understanding of consumer behavior in the country. http://vneconomictimes.com/article/business/not-to-everyone-s-taste

Are Vietnamese 24/JUL/2017 INTELLASIA| DAN TRI businesses tired of Vietnam's M&A market is very potential, according to information from M&A Viet- doing business? nam Forum 2017. Statistics show that this market hit the milestone of $5.8 billion in 2016up 11.92 percent compared to 2015 and that was the highest level ever. *Foreign investors play the key role Notably, the main driver of M&A activity in Vietnam in the past year was the market access of regional countries, typically Thailand, Singapore, Japan, South Korea, etc. In a number of sectors such as real estate, manufacturing, there has had the participation of Chinese investors. Foreign investors continue to be key buyers in the Vietnamese market. While Japanese investors spend strategically on aviation, petroleum and pharmaceutical companies, Singapore investors are interested in commercial real estate deals and Thai investors target at retail and materialschemicals with the goal of expanding the market. South Korean investors mainly carry out deals in the food, finance and banking segments. The total M&A value of foreign investors accounted for 77 percent of the entire market M&A value. Of which, most of the deals whose scale is larger than $20 million have the presence of either by the buyer or the seller being foreign investor. One noteworthy feature is the tendency that international groups acquire investments from investment funds. Investment funds, after a period of time, can withdraw their investments to realise profits. Meanwhile, foreign companies can purchase a large volume of shares that can even help them dominate or play a big role in the targeted company. With this trend, investment funds and intermediaries are playing the role as

Intellasia 24 July 2017 26 / 59 Vietnam finance & business 24 July 2017

catalysts for the deals. Typically were the acquisition of Domesco in 2014 and the Japanese company Taisho's acquisition of investments to obtain a 24 percent stake in Hau Giang Pharmaceutical in 2016. Companies with high proportion of foreign investors can be the objects for big M&A deals in the future, for example, Hau Giang Pharmacy, Vinamilk, Traphaco, etc. * Are Vietnamese people tired of doing business? In the context that foreign investors play a key role in M & A deals, a question raised is whether Vietnamese companies are not so keen on doing business locally. However, many experts said that this is not necessarily a fundamental reason though some businesses do sell themselves because they no longer want to do business. Phan Duc Hieu, deputy director of the Central Institute for Economic Management (CIEM), said there are many reasons for a M&A deal to take place, and one of the main reasons is "anti-annexation". "Companies that cannot survive in a fierce competitive environment will be taken over by mergers and acquisitions, from which buyers can expand the market and take ad- FINANCE vantage of what's available". In some cases, businesses start a business activity with the ultimate goal of reselling after having had a certain business network which generates higher added value than initially. Also in some other cases, business people do not want to do business because of market difficulties, policies but not basic", said Hieu. The expert said "The increase in M&A is not because the Vietnamese people do not want to do business anymore, but rather, it is because foreigners want to enter Viet- nam to do business. Besides, there also have many advantages of inheriting existing business operations for the investment via M&A. Foreign businesses when implementing M&A deals in Vietnam will save initial costs as well as take advantage of available business conditions". Nguyen Anh Tuan, senior consultant M&A Forum also said that when selling shares to foreign investors, it is not that the Vietnamese people give up doing business, but cooperate with foreign partners to improve the operations of the business. Tuan quoted examples that Vietinbank, Vietcombank, through M&A, can work together to lead the company more effectively. Vinashin, Vinalines sold unused assets, narrowed their fields of activity to have capital to invest in other efficient business areas. Vingroup resold the projects not because of abandoning the real estate sector but to invest in new projects. "Selling businesses, projects does not entirely mean that Vietnamese people do not want to do business. That is not to mention, with the cases that foreign businesses completely acquire domestic businesses that are doing business ineffectively but holding large assets, it is necessary to have capital resources to move to doing other kinds of businesses", said Tuan. According to Nguyen Quang Bao, deputy general director of Ban Viet Securities Com- pany, in many M&A deals, the important reason for Vietnamese businesses to sell to foreign investors is because of the demand for capital expansion for development. "M&A is not merely the unwilling to do business, it is not enough if just looking at selling rates to foreign investors. A business, after a period of operating and wanting to expand, must mobilise more capital, calling for new investors to participate in the governance. Keeping the old way of doing, they will be knocked out by larger-scale businesses with better management ability, so choosing M&A is the step to further improve the ability to operate, the market competitiveness potential will be very promising because it is a new and developing market", said Bao. Bao also mentioned that foreign investors, apart from effective investment, also see their potential business rivals. "Vietnamese businesses may not have invested overseas, but in the next few years they can entirely compete with foreign businesses". Foreign investors see and anticipate that these business can compete with themselves, so the investment will help control the market, avoiding futre risks", Bao added.

Intellasia 24 July 2017 27 / 59 Vietnam finance & business 24 July 2017

Real estate 24/JUL/2017 INTELLASIA| VIETNAMNET conglomerates vie for Real estate developers are seeking land plots in the suburbs, especially in areas with Hanoi railway projects good infrastructure development, as available space in the inner city is diminishing. Hanoi has submitted a plan to auction 6,000 hectares of land to build 10 urban railway lines from now to 2030. Six Vietnamese and two foreign investors have registered to develop urban railway projects (subway), namely Vingroup, Xuan Thanh Group, Lung Lo 5 JSC, Mosmetro- troy from Russia, Tan Hoang Minh Co Ltd, the joint name of Licogi and MIK Group Vietnam, and Lotte. Most of the investors are the 'big guys' in the real estate sector. The investors all registered the projects immediately after Hanoi called for private investment in the projects. Thanh Nien quoted a source as reporting that to attract private investors, Hanoi plans to allocate land along the subway system to the investors for exchange for their capital to build the subway.

FINANCE By the time the railway system is completed, there would be residential quarters on both sides of the route to use the project. Urban areas and shopping centers would be set up within a radius of 500 meters around subway stations. The project will be implemented under the mode of PPP under which investors can use land to develop urban infrastructure and shopping centers. Do Thi Thu Hang from Savills, a real estate service provider, noted there is no available land in the inner districts of Cau Giay, Thanh Xuan, Tay Ho and Dong Da. There potential land plots in the suburban districts of Hoai Duc, Quoc Oai, Dong Anh, Thach That, Ha Dong and Long Bien. This opens up many opportunities for infrastructure projects, especially urban railways heading towards the area. These include the Metro 2A route from Ha Dong district to the centre, the Metro 3 route running along Highway 32 linking Hoai Duc district to the centre, and the Thang Long Boulevard metro route that connects Thach That and Quoc Oai areas with My Dinh. Highway 18 that connects National Highway 5 and Dong Anh area is another area that can be used. If the infrastructure projects can be developed, there would be more successful urban areas like Ecopark along new urban railways systems. The land along urban railway systems is expected to become very valuable. In a report on the impact of the urban railway on the real estate market, CBRE said the land price would increase, while the number of real estate projects in the areas would explode. http://english.vietnamnet.vn/fms/business/182317/real-estate-conglomerates-vie-for- hanoi-railway-projects.html

Wrapped up 24/JUL/2017 INTELLASIA| VN ECONOMIC TIMES Foreign packaging companies have generally outpaced the local competition in meeting increasing needs as Vietnam's consumption demand increases. According to global market researchers Euromonitor International, demand for food packaging in Vietnam as at 2015 was more than 3.9 million tonnes and will reach some 5.4 million tonnes by 2020, or 38 per cent higher. Meanwhile, global demand will only increase 13 per cent in the 2015-2020 period. This amazing growth in Vietnam's need for food packaging opens the door to international packaging producers to seek opportunities and expand their business in the country. Switzerland's Tetra Pak, the world's leading food processing and packaging solutions company, earlier this year announced a $110 million investment in a state-of-the-art regional manufacturing facility in southern Binh Duong province. With ground to be broken in the fourth quarter, the project will be the first paper-board carton factory in the country. Conquering the market Tetra Pak's investment was prompted by increasing consumption volumes, with 2016's total packaged liquid dairy and fruit-based beverages intake at 70 billion litres

Intellasia 24 July 2017 28 / 59 Vietnam finance & business 24 July 2017

across the company's global markets. Over the next three years these markets are likely to grow at a healthy 5.6 per cent per annum. The greenfield factory is expected to begin commercial operations by early 2019. "Sit- uated near HCM City, the country's economic hub, it will be ideally positioned to meet the demand for packaging materials among food and beverage (F&B) manufacturers in Vietnam, other Asean countries, and Australia and New Zealand," Robert Graves, Managing director of Tetra Pak Vietnam, told VET. "For manufacturers based in Viet- nam, the new factory will bring a host of unprecedented benefits such as consistent supply, reduced lead time, efficiency, and flexibility." After more than 20 years in Vietnam, Tetra Pak has seen substantial growth in their products, driven by a wide portfolio and a number of innovations they have introduced in the market. Hence, "we decided to set up our first factory in Vietnam, which will be our fourth packaging material factory in the region, providing us with expan- sive coverage and scale and allowing us to serve our customers faster and better," said Michael Zacka, Regional vice President, Tetra Pak South Asia, East Asia and Oceania. FINANCE "This decision is a strong reflection of our commitment to Vietnam and our belief in its future potential." The new factory reflects Tetra Pak's confidence in the local economy and will cater to a rise in domestic consumption of healthy, ready-to-drink beverages among the country's growing middle class, according to Graves. Two key attributes of this are Viet- nam's real wage growth and a growing consciousness among consumers about health issues and food safety. The factory's construction is evidence of its ambitious chase for market share in the country's increasingly competitive market. "Vietnam has been among our Top 10 biggest consumption markets and one of our two strategic markets in Asia-Pacific, along with Indonesia," he said. "Last year, Tetra Pak provided 7.5 billion packaging units for the local market, recording double-digit growth and the highest growth in the last 25 years." Apart from Tetra Pak, another leading global carton packaging and filling machine supplier for F&B, SIG Combibloc from Germany, who arrived in Vietnam's packaging market in 2005, has become the packaging manufacturer for a number of the country's largest dairy suppliers, including Vinamilk, TH, and Dutch Lady. According to industry insiders, however, Tetra Pak now dominates other suppliers in terms of high-end aseptic packaging for Vietnam's F&B market. Rising opportunities Vietnam's packaging industry has been recording sustainable growth of around 15-20 per cent annually, according to Nguyen Ngoc Sang, Chair of the Vietnam Packaging Association (VINPAS). "It has always been a good support industry for the country's manufacturing sector so has generally recorded stable growth," he told VET. More specifically, the plastic packaging sector has also reached growth of up to 25 per cent on average over recent years, according to the Vietnam Plastics Association (VPA). In fact, the dairy category in Vietnam is the country's largest category and a core business for Tetra Pak and is projected to grow steadily, with per capita consumption po- tentially doubling to 28 litres by 2020 from 15 litres in 2010. Tetra Pak estimates the country will see average growth of 6.5 per cent per annum during the 2016-2019 period. "Packaging is critical to the industry, and the new factory will definitely be a boost to the development of the local F&B industry, contributing to Vietnam's socioeconom- ic growth and integration into the regional supply chain," Graves said. According to figures from Business Monitor International (BMI) in its report on Viet- nam's F&B sector, growth in the industry is estimated at 9.43 per cent for the 2013-2017 period and will continue to rise in subsequent years. Dairy production has also seen significant development of more than 20 per cent on average over the last five years while consumption power has increased 16.9 per cent annually. In a press conference at the Propak Vietnam Expo 2017 held in early March, Nguyen Bach Khoa, Country Sales manager at Bosch Rexroth, the Drive and Control Division of Bosch Vietnam, an industrial equipment supplier in the processing and packaging

Intellasia 24 July 2017 29 / 59 Vietnam finance & business 24 July 2017

industry, said the company's growth in 2016 came in at 60 per cent compared to 2015. He agreed that Vietnam's packaging market will present a host of opportunities in the years to come. Meanwhile, another supplier, Rickermann from Germany, recorded growth of 10-15 per cent on average in recent years. Not only foreign enterprises are investing in modern production technology, as domestic businesses have also been conducting similar investment in order to meet domestic demand and the strict criteria of export markets around the world. http://vneconomictimes.com/article/business/wrapped-up

Government urges 24/JUL/2017 INTELLASIA| VNS competitive coal The government has assigned the Ministry of Industry and Trade (MoIT) to build a de- market velopment roadmap for a competitive coal market as there are new coal suppliers. The State would gradually reduce its control in the market while ensuring supply and

FINANCE demand balance. Deputy minister Hoang Quoc Vuong held a meeting with the Vietnam National Coal and Mineral Industries Group (Vinacomin) and Dong Bac Corporation in the northern province of Quang Ninhon on Thursday to study the roadmap to ensure national energy security for socio-economic development. The ministry would submit the proposal to the government for approval with an aim to have a coal market which ensures local households' consumption, prices follow supply and demand and export markets are actively built. Following the meeting, the ministry would also work with coal consumption households to resolve the industry's difficulties. It would submit documents to the government instructing Electricity of Vietnam (EVN) and Vietnam National Oil and Gas Group (PetroVietnam) to continue buying coal from Vinacomin and Dong Bac Corpo- ration this year. The ministry would also allow the export of coal that does not depend on quota to help Vinacomin and the corporation balance their finances. Vuong said coal demand has been diversified. EVN and PetroVietnam have developed several thermo-power plants with consumption of some 10 million tonnes of coal. Vinacomin also has its own thermo-power plants and BOT projects. It is forecast that coal demand for electricity production could reach more than 100 million tonnes by 2030. Vietnam would have to import some 80 million tonnes of coal, while local production would be 50 million tonnes per year. Therefore, the ministry said the government should have new policies for market development. Vinacomin's general director Dang Thanh Hai said the group has signed nine long- term contracts to provide coal for thermo-power plants. Vinacomin suggested that the government allow it to be active in building production and business plans based on long-term contracts to ensure suitable inventory and effectiveness. Hai proposed to export on a long-term basis coal which local thermo-power plants do not need for electricity production to help Vinacomin be active in consumption markets. He added that Vinacomin and EVN's power plants have not yet reached an agreement on coal selling prices for the period of December 26, 2016 to February 28, 2017, which was why the two sides have not signed a coal purchasing contract this year. Earlier, EVN proposed to reduce two million tonnes of coal buying from Vinacomin to choose from two new units. The reduction according to EVN's proposal would make Vinacomin's coal production costs increase and reduce effectiveness, he added. The group asked the ministry to tell PetroVietnam and EVN not to buy anthracite coal from other units this year to avoid losses for Vinacomin. In addition, the ministry should have policies to encourage use of locally produced anthracite coal and limit imported coal as Vinacomin has claimed unfairness in taxes and fees.

Intellasia 24 July 2017 30 / 59 Vietnam finance & business 24 July 2017

Phuong Kim Minh, deputy general director of the Dong Bac Corporation, also proposed that the ministry stop new suppliers from being added for thermo-power plants to ensure national energy security. Minh also asked the Ministry of Finance to provide guidance o EVN, Vinacomin and the corporation to agree on coal prices sold for power production. The corporation also asked to export inventory coal for which there is no demand in the local market. http://bizhub.vn/news/govt-urges-competitive-coal-market_287757.html

VN property market 24/JUL/2017 INTELLASIA| VNS looks to up The Vietnamese property market must improve market information transparency to transparency attract investment and develop sustainability, experts said. Although there are currently many sources for market information--real estate associations, property services firms such Savills, CBRE, JLL and Cushman Wakefield as

FINANCE well as the Ministry of Construction--the information is rarely consistent among market research firms. In addition, the construction ministry has failed to provide regular market updates and transform the real estate market and housing information system into a reliable source. Ultimately, experts say that real estate market information of Vietnam still lacks accu- racy and reliability. Economist Le Ba Chi Nhan said that property market supply and demand information remains very confusing. Consultant firms provide their own sales figures every quarter, but the figures largely differ. For example, Savills Vietnam's report revealed that nearly 11,600 apartments were sold in the second quarter in HCM City, touching a six-year high. The CBRE Vietnam figure was 9,522. Savills forecasted that mid-end segment would dominant the supply in the future, while CBRE said high-end segment would improve the second half of this year, and JLL said low-priced housing would lead the market. Nhan said that these figures were mainly not verified by any independent organisations. Thus, they lacked reliability. Dang Hung Vo said that market information must be provided adequately to prevent misunderstanding. For instance, Hanoi and HCM City recently announced projects at banks, but the an- nouncements failed to mention details and caused confusions and misunderstandings. Market transparency requires that information be regularly updated, accessed easily and equally, Vo said. Le Hoang Chau, President of HCM City Real Estate Association, said the Law on Real Estate Business does not specify which organsations and companies can provide market reports. This means anyone can provide their own figures. Of course, each has their own statistical method. Chau said the construction ministry must develop a market information system, which would provide regular updates about transactions, mortgaged projects as well as planning and policies as a reliable source to ensure market development on the right track. However, a ministry representative said that real estate price index is just being developed, and it will take time to complete the database. In 2016, the JLL global real estate transparency index ranked Vietnam 68 among 109 countries, indicating that Vietnamese property market has low transparency due to difficult access to planning information and the lack of market database. http://bizhub.vn/property/vn-property-market-looks-to-up- transparency_287754.html

Vietnam reaching a 24/JUL/2017 INTELLASIA| VN EXPRESS heady high in the With the Vietnamese thirst for beer seeming to know no limits, brewers are finding it global beer business hard to resist tapping into the country's potential market.

Intellasia 24 July 2017 31 / 59 Vietnam finance & business 24 July 2017

Vietnam is forecast to lead Southeast Asia to see volume growth of 2.3 billion litres over 2016-2021, market researcher Euromonitor International said in its July report. Southeast Asia's volume gains will even surpass those of larger regions, such as North America, Europe, the Middle East and Africa, the report said. An expanding Vietnamese middle class and youthful population have helped drive a 300 percent surge in beer demand since 2002, according to Euromonitor, which estimates the market was worth VND147.2 trillion (US$6.5 billion) last year. It predicts per-capita consumption will reach 40.6 litres this year, making Vietnam the biggest beer consumer in Southeast Asia. Vietnam will be "the next key battleground for brewers", Bloomberg cited Euromoni- tor as saying in a report. Saigon Beer Alcohol Beverage Corp. (Sabeco) and Hanoi Beer Alcohol Beverage Corp. (Habeco), the nation's two largest beer companies, will submit IPO plans to the government this month, an official from the industry and trade ministry told local media last week. FINANCE "The stake-sales will create an opportunity for international companies to expand ge- ographically, especially those still without a presence in Vietnam," John Ditty, managing partner of KPMG Vietnam's deals advisory unit, told Bloomberg. A study jointly conducted by Vietnam's health ministry and the World Health Organ- ization (WHO) last year showed that 77 percent of Vietnamese men drink liquor and beer, and nearly half of them drink at hazardous levels. Nguyen Phuong Nam, an official from the WHO, said nearly 67 percent of the 1,840 traffic accident patients involved in the study had high concentrations of alcohol in their blood, and 45 percent had driven after drinking for two hours or more. Vietnamese drank 3.8 billion litres of beer last year. That was an average of 42 litres per person, four litres more than 2015, according to data collected by the trade ministry. http://english.vov.vn/economy/vietnam-reaching-a-heady-high-in-the-global-beer- business-355155.vov

Four big firms share 24/JUL/2017 INTELLASIA| VIETNAMNET lucrative ice cream Kido Foods (KDF) dominates the ice cream market, with a 35 percent share, while Uni- market lever, Thuy Ta and Vinamilk hold 10 percent, 10 percent and 9 percent of market share, respectively. With 35 percent of the market share in 2016, KDF is now the biggest ice cream manufacturer with a large distribution network comprising 70,000 sale points, including 50,000 POS owned by the company itself. KDF owns two or three leading ice cream brands in Vietnam Merino and Celano. The total revenue from the sale points was VND2.7 trillion in 2016. According to Vietnam Market Intelligence (EMI), Merino and Celano are the most popular ice cream brands in Vietnam. While the former targets young people (5-25 years old), Celano targets high-end and older people (25-40 years old). EMI said the ice cream consumption in Vietnam has been increasing by 15 percent per annum in value in 2013-2016, which includes output growth rate of 6 percent per annum. About 70 percent of ice cream is sold through retail points for on-the-spot consumption or as take-away ice cream. The other 30 percent is sold through food service points such as restaurants and cafes. Besides the four big players in the market KDF, Unilever, Thuy Ta and Vinamilk which hold 64 percent of the market, the remaining 36 percent of the market share belongs to high-end ice cream shops in urban areas and small shops which sell low-cost products in rural areas. For urban consumers, Wall's is a well-known ice cream. It first appeared in the market in 1997 with a $22 million factory in HCM City, the largest ice cream factory at that time. However, due to poor business performance in Vietnam, it had to leave the country in 2003 after selling the factory to Kido. In 2008, Wall's came back to Vietnam, but with imports from Thailand.

Intellasia 24 July 2017 32 / 59 Vietnam finance & business 24 July 2017

Because of the requirement on cold storage, which increases the production cost, Wall's has been cautious in selecting SKU (stock keeping unit) for the Vietnamese market. It has only brought about 20 SKUs to Vietnam. This, plus the absence of production units in Vietnam, puts Wall's at a disadvantage compared with KDF in negotiating with retail points. With 10 percent of market share in Vietnam in 2016, Wall's had turnover of $115 million. Vinamilk is a formidable rival for both KDF and Wall's. In fact, the nation's leading dairy producer still has not stepped up production of ice cream. The total ice cream market value in 2016 was equal to 6 percent of Vinamilk's total revenue. http://english.vov.vn/economy/four-big-firms-share-lucrative-ice-cream-market- 355108.vov

24/JUL/2017 INTELLASIA| PHAP LUAT TPHCM

FINANCE Four Vietnamese giants join hands to In the context that foreign retailers enter Vietnam in large number, the Association of compete with foreign Vietnam Retailers (AVR) has recently proposed that the government set up a retail businesses group on the basis of the cooperation of four leading domestic retailers now including Saigon Co.op, Phu Thai Group, Saigon Trading Corporation (Satra) and Hanoi Trad- ing Corporation (Hapro). Explaining about this proposal, Dinh Thi My Loan, Chair of AVR said in the eyes of foreign investors, Vietnam retail market is one of the most attractive retail markets and has much potential for development. However, Vietnam retail businesses still face many difficulties and limitations. Therefore, AVR wants to re-start and re-establish the aforementioned model as the leading multiownership retailer in Vietnam, thereby opening up output for Vietnam- ese products. The four aforementioned businesses have a turnover of $4-5 billion/year. Loan added, previously, the government used to be very supportive, expecting that the aforementioned model will support the retail market a lot. However, that model failed. One of the main reasons was the lack of access to premises in the provinces that wanted to develop. Meanwhile, Huynh Van Minh, CEO of Vietnam Distribution Association Network De- velopment and Investment Joint Stock Company (VDA), said the company was established in 2007 by the four aforementioned giants. This group will become the parent company and take on what a single business cannot do. The aggregation of infrastructure, premise network, capital, experience, market, goods, etc. of the four aforementioned companies will be huge. When VDA is successful, foreign investors have to consider if they want to acquire distribution and logistics systems in Vietnam. Minh emphasized that "We also plan to open hypermarkets, warehouses in prime locations in such large cities as Hanoi, HCM City, Hai Phong, etc. However, VDA's failure was because of inconsistent policies and mechanisms, there a large gap between theory and practice. Specifically, in terms of land policy, some provinces are still willing to support premises while some others are not". On the other hand, when VDA was just formed, the State had the policy of not allowing non-core investment. Therefore, Satra and Hapro had to divest. After their divestment, the two remaining members did not have enough potential. "The policy of divesting outside was right but for such companies as Hapro, Satra, there is nothing wrong to invest in the retail group but they still had to divest", said Minh. It is necessary for giants in the retail industry to cooperate to form a solid, strongly developing institution to dominate the domestic market and export Vietnamese goods. However, to avoid the past failure, many people said that the State should remove obstacles in mechanisms, policies and retailers themselves must reach a consensus. Furthermore, Minh said he is calling to establish a new style retail group that has many differences from the old model. For example, any component can participate in this model. Especially, this model will not follow the consensus mechanism like the old one in which each member contributed 25 percent stake but who invest more will run.

Intellasia 24 July 2017 33 / 59 Vietnam finance & business 24 July 2017

"Besides, the new retail group has also intends to establish an agricultural supermarket system. Farmers entering this supermarket will be able to purchase everything from seeds, fertilisers to foods, machines, etc. at reasonable price and do not have to be afraid of buying counterfeit goods", said Minh. Dr Dao Xuan Khuong, a consultant in distribution and retail said for the new retail group to operate effectively, it is possible to follow the model of VinMart + or Mobile World Group. In addition, it is also possible to invest in Saigon Co.op so that this company will lead and become a strong corporation, thereby bringing into full play the strength and position of Vietnam retail. Brand expert Vo Van Quang said, in many countries, there are leading retail groups such as Lotte (South Korea), Aeon (Japan), Central Group (Thailand), Parkson (Malay- sia), etc. These groups orient professional retail and penetrate into new market to clear way for their goods rather than letting businesses to find export markets themselves. For example, thanks to Alibaba, Chinese goods can be sold to many countries. Therefore, it is essential that Vietnam has a national-scale retail group with interna- FINANCE tional level and vision. "In the immediate future, retail group must have a global brand and professional management model comparable to professional retail brands such as Lotte, Robinson, Aeon, 7-Eleven, Parkson, etc. If the new retail group is determined to develop, experts and international colleagues are ready to participate in the consultancy on strategy and professional system planning right from the first steps", stressed Quang.

Local firms not well 24/JUL/2017 INTELLASIA| VNA prepared for Fourth The core of the Fourth Industrial Revolution is "smart manufacturing plants". Howev- Industrial Revolution er, Vietnamese enterprises are not fully prepared to access the revolution, deputy minister of Industry and Trade (MoIT) Cao Quoc Hung has said. At the business conference "Digital enterprise on the way to Industry 4.0," held in Ha- noi on July 20, Hung said together with the foundation of rapid development and high-level integration of science achievements and modern technologies in sectors of digitalisation, bio-technology and physics, the Fourth Industrial Revolution is expected to remarkably change the appearance of manufacturing of the world and Vietnam in the near future. "Besides this, this model will help enterprises increase their productivity, flexibility and efficiency, as well as shorten production time to make products available in the market, resulting in improvement of an enterprise's competitiveness. Consumers can also benefit from higher quality, more reasonable prices and favourable products, as expected," he added. He said the revolution could create both opportunities and challenges for Vietnam. If Vietnam did not catch up with the world and the region's development, it would face challenges and effects of backward technologies, decreasing production, abundant skilled labour and copyright violation. The deputy minister also forecast an inflow of old technologies from developed to developing countries. Active approaches to state-of-the-art technologies and new development trend of the Fourth Industrial Revolution have been strongly supported by the Vietnamese government and have been clearly stated in Directive 16/CT-TTg, which was issued by the prime minister of Vietnam on May 5, 2017, with regard to the enhancement of the capacity building approach towards the Fourth Industrial Revolution. Involvement of authorities at all levels, in particular of the business community, is the prerequisite for Vietnam to optimise opportunities generated by this revolution. Sup- porting companies in accessing information and data, technology transfer and trans- forming into a digital enterprise will be one of key priorities of the MoIT in the future under Directive 16/CT-TTg." Sharing ideas, Tran Viet Hoa, deputy director of the ministry's Department of Science and Technology said local firms would face challenges under the Fourth Industrial Revolution.

Intellasia 24 July 2017 34 / 59 Vietnam finance & business 24 July 2017

Vietnam has 97 percent of small-and-medium sized enterprises with registered capital of 4-7 billion VND (176,000-308,400 USD). The small scale of these enterprises would make them unable to import new technologies into production. Currently, up to 70 percent of machines and technologies were imported in the 1980s and 1990s. More than 75 percent of the technologies were fully depreciated. A survey of the department showed that the rate of applying IT in automation and production management has been very low. Another survey of the Hanoi Small-and-Medium Sized Enterprises Association revealed that businesses were not fully prepared to access the revolution. Up to 55 percent of surveyed firms believed that the revolution would have a significant effect. However, only 12 percent said they have been preparing for the revolution, some 55 percent have been studying about this and 79 percent have been doing nothing, according to the survey. Christian Berger, German Ambassador to Vietnam, said: "The Fourth Industrial Revo- lution has enormous potential to deliver. However, close cooperation and dialogue are FINANCE needed nationally and internationally to ensure that we receive the benefits but avoid the risks from digitalised and automated production. It is essential that in our deliber- ations, we do not forget that people are the main actors, the main resource and the one goal of any development." "Siemens terms its path to the Fourth Industrial Revolution as the "Digital Enterprise". With Digital Enterprise, Siemens offers solutions to address specific requirements of the manufacturing and processing industry. These solutions combine the world of planning and operation to create an integral plant management concept covering the entire lifecycle of an industrial plant. The path to Digital Enterprise is comprised of four core elements that logically build on one another. Each of these core elements is comprised of a unique portfolio that prepares our customers for the revolution. Viet- namese customers are not alone on the way to Industry 4.0. They can count on Sie- mens," Siemens Vietnamese president and CEO Pham Thai Lai emphasized. "To take advantage of the Fourth Industrial Revolution, Vietnam needs to create motivation for enterprises, such as creating favourable conditions or legal framework so that they are confident about joining the revolution. Networking and technology transfer should be the optimal methods for Vietnamese companies on the path to In- dustry 4.0," Marko Walde, Chief Representative of AHK Vietnam & Chair of GBA Vi- etnam, said. The event was co-organised by MoIT, the German Embassy in Vietnam, Siemens and German Industry and Commerce Vietnam (GIC/AHK Vietnam). It attracted more than hundred delegates, including senior government policy and decision-makers, business leaders and specialists, who came together to address emerging challenges and opportunities generated by the megatrend of digitalisation with a view to support Vi- etnamese enterprises on the path to the Fourth Industrial Revolution. http://en.vietnamplus.vn/local-firms-not-well-prepared-for-fourth-industrial-revolution/115245.vnp

Da Nang determined 24/JUL/2017 INTELLASIA| VNA to build startup city The central city of Da Nang is determined to a build startup destination for innovation and creativity, said Secretary of the municipal Party Committee Nguyen Xuan Anh. Anh made the statement at the Da Nang Start-up Conference and Exhibition themed "Startup Technology and Ecosystem" on July 21, attracting more than 400 young entrepreneurs and startups from 27 countries and territories worldwide. In order to achieve the goal of becoming a startup destination in Asean under a project on developing a startup ecosystem until 2020 with orientations to 2030, Da Nang is set to develop startup culture, raise young generations' awareness of startups, continue refining relevant mechanisms and policies, develop startup network and expand cooperation to attract resources at home and abroad for the effort, he said. Vo Duy Khuong, Chair of the Da Nang Startup Council, said the council will work with schools, universities and colleges to add startup into their curricula and urge the

Intellasia 24 July 2017 35 / 59 Vietnam finance & business 24 July 2017

municipal authorities to launch a startup fund which helps startups access capital from domestic and foreign investment funds, financial and credit organisations. At the same time, conferences and exhibitions to share experience and introduce products to domestic and foreign markets will continue to be held. As part of the event, 10 most outstanding startups will enter the final round of the Pitching Competition to vie for awards worth 200 million VND, and an exchange with tourism billionair Jeff Hoffman will also be organised. The event was co-hosted by the Da Nang Startup Council and the municipal business incubator. http://en.vietnamplus.vn/da-nang-determined-to-build-startup-city/115216.vnp

Angel investor 24/JUL/2017 INTELLASIA| VNA network incubates An Angel investor network was launched by Songhan Incubator on July 21 in Da Nang startups in central city, aiming to incubate startups in the central region.

FINANCE region On the occasion, Songhan Incubator inaugurated an incubator area where startup enterprises work and organise workshops, events and training programmes. Director of Songhan Incubator Ly Dinh Quan said the centre has actively participated in startup support activities since it was established in January this year, significantly contributing to forming startup ecosystems nationwide. The centre is a member of the Vietnam Angel Investor Network (iAngel), which provides financial support and consultation for startup units, Quan noted. Songhan Incubator aims to promote cooperation and knowledge links among startup organisations and experts, and scientists and technologists, towards incubating entre- preneurial talents and creating high-quality startup projects, contributing to Vietnam's creative development and renovation. It also provides start-up ecosystem development consultations for many provinces and cities, enterprises and other incubators, while implementing the Vietnam Tourism Startup 2017 programme which targets renovation and creativity-applied tourism startup projects. Meanwhile, iAngel, operated by experienced managers in Vietnam's startup circle, is looking to build a strong community with angel investors for joint investment deals. The network receives technical assistance of the three leading start-up support programmes, including the Vietnam-Finland Innovation Partnership Programme 2 (IPP2), the Mekong Business Initiative (MBI) and the Swiss EP Startup Support Pro- gramme. http://en.vietnamplus.vn/angel-investor-network-incubates-startups-in-central-region/115214.vnp

HCM City wastewater 24/JUL/2017 INTELLASIA| THE SAIGON TIMES treatment sector Many investors are expected to pour capital into the wastewater treatment sector in expected to draw HCM City as the municipal government is working on incentives for enterprises in this investors sector. The city plans to develop 11 wastewater treatment facilities with a total capacity of nearly 1.9 million cubic meters a day by 2020 and more than three million cubic meters by 2030 to treat household wastewater in the city. However, only Binh Hung and Binh Hung Hoa plants have been built with a respective daily capacity of 141,000 and 30,000 cubic meters. But the landscape is expected to change. A consortium comprising Lotte E&C, Huvis Water and Honor Shine Global has proposed investing in wastewater treatment facilities in the city with a combined capacity of more than 650,000 cubic meters a day. The investors plan to integrate three current plants of Tan Hoa-Lo Gom, Saigon West and Binh Tan into a new wastewater treatment system. The project to be developed under the form of build-lease-transfer (BLT) would require about $350 million in the first phase and $132 million in the second phase. The first phase is expected for completion by 2020 with a treatment capacity of 450,000 cubic meters. An environment expert on July 20 told the Daily that foreign enterprises at the moment

Intellasia 24 July 2017 36 / 59 Vietnam finance & business 24 July 2017

are not willing to invest in wastewater treatment due to risks of capital recovery. Therefore, the city authorities should have clear pricing policy for wastewater drainage and treatment services. According to Decree No. 80/2014/ND-CP on wastewater drainage and treatment, pol- luters must pay for pollution treatment and the income from wastewater drainage and treatment services must step by step cover the cost of drainage services. On Tuesday, the city government issued a plan aimed at wooing private investors into the city's wastewater treatment sector in 2017-2020. Accordingly, the city will renew its policies and mechanisms to encourage individuals and organisations to protect the environment by collecting, reusing, recycling and treating waste. The city will also launch an appropriate roadmap to revise up environmental protection fees for household wastewater treatment services. A representative of the Steering centre for the Urban Flood Control Programme told the Daily that the centre is drawing up a draft plan on charges for wastewater services and will send it to the city government this year. FINANCE The charges will depend on the amount of household wastewater but specific charges remain unknown. Environment experts said that if capital recovery is ensured, enterprises would invest in the sector and the plan to build seven wastewater treatment plants with a total capacity of 1.6 million cubic meters a day by 2020 can be implemented.

Ben Tre Province to 24/JUL/2017 INTELLASIA| THE SAIGON TIMES develop seven wind The government of Ben Tre Province at an investment promotion conference on July power projects 20 gave approval in principle to 30 large-scale projects, including seven wind power projects with total pledged capital of around $900 million. Among the seven investors, Ben Tre Renewable Energy JSC will invest over VND6.5 trillion in a wind power plant with a designed capacity of 110 MW in Ba Tri District, and Power Generation Corporation 1 will develop a 230- MW plant worth more than VND3.4 trillion in Thanh Phu District. Western Green Energy Investment Co Ltd will carry out a 70- MW wind park project worth around VND2.9 trillion, while Mekong Wind Power JSC, VPL Energy JSC, and Thien Phu Energy JSC will set up three wind power projects with a combined capacity of 115 MW worth about VND3.5 trillion. Besides, a joint venture between Asia Petroleum Energy JSC and South Korea's Doarm Engineering Co Ltd will inject $180 million into an 80.5- MW power plant in the rural district of Binh Dai. The local government also approved 23 other projects worth around $197 million in fields such as food processing, infrastructure for industrial parks, coconut processing, fertiliser, and textile-garment. Ben Tre has so far this year attracted 37 domestic projects with registered capital of VND20.6 trillion (US$908 million), and three foreign direct investment (FDI) projects capitalised at $217 million, according to the provincial Department of Planning and In- vestment. The local government at the conference on July 20 also struck memorandums of understanding with four investors who will carry out some projects with total capital of around VND10 trillion (US$440 million). Truong Hai Auto JSC pledged to offer VND6 trillion in partnership with Ben Tre Prov- ince. Meanwhile, ATM Development Construction Investment JSC plans to spend around VND2 trillion on projects aimed at developing economic and social infrastructure, and conserving the biodiversity of a local forest in Thanh Phu District. Masan Group is committed to injecting VND1.5 trillion into a food processing plant and a hi-tech breeding farm while Tay Bac Construction Investment JSC intends to invest VND470 billion in an urban project and the new Ba Mu market. Dao Minh Phu, deputy governor of the State Bank of Vietnam, said some banks have promised to lend about VND1.56 trillion to 10 projects in the province.

Intellasia 24 July 2017 37 / 59 Vietnam finance & business 24 July 2017

PM okays Van Don EZ 24/JUL/2017 INTELLASIA| VNS development Prime minister Nguyen Xuan Phuc has given the northern province of Quang Ninh the go-ahead to develop the Van Don Economic Zone as a special administrative-economic unit. The province has been asked to use the local budget and other sources to fund and carry out the project. The PM has also agreed in principle to selecting and hiring foreign consultants for the project, in line with the Law on Bidding and Decree 30/2015/ND-CP, dated March 17, 2015. The Quang Ninh People's Committee will discuss and negotiate the contract value and payment with foreign consultants. Van Don District comprises over 600 islands, and is located around 175km from Hanoi, 80km from Hai Phong City and 50km from Ha Long City. The district encompasses the World Heritage site Ha Long Bay. It covers a total area of 2,171sq.km, of which natural

FINANCE land is 551sq.km. The district is sparsely populated and its total population is 41,645 people. With the va- riety and uniqueness of the archipelago, rich ecosystems and beautiful beaches, the islands have the potential to become a world-class maritime tourism destination. Its favourable transport infrastructure, much better compared to the country's 14 coastal economic zones, is an added benefit. The province's leaders have also asked the government to promulgate the circular on casinos, which will lay guidelines for Vietnamese citizens, and contribute towards attracting more investments into Van Don, where luxury resort complex projects and a casino are being planned. Quang Ninh is working towards developing the required infrastructure for the special administrative-economic unit, even as it draws up detailed plans of the project. The unit will also help in the development of the Mong Cai-Hai Ha border economic area and Dinh Vu-Cat Hai Economic Zone. Van Don (Quang Ninh), Bac Van Phong (Khanh Hoa) and Phu Quoc (Kien Giang) are all to be developed as special administrative-economic units, once the draft law is passed by the National Assembly (NA), according to the government Office. Special administrative-economic units are magnets for investment, high technology and advanced management, becoming high-growth areas that generate more resources and motivation and accelerating the development and economy of the province, the region and the country. The Ministry of Planning and Investment expects that the three special administrative- economic units of Van Don, Van Phong, Phu Quoc will contribute billions of dollars annually to the local GDP from 2020. The average income per capita in the units will be $12,000 to $13,000 per person per year after 2030. http://bizhub.vn/news/pm-okays-van-don-ez-development_287759.html

Tra Vinh invites 24/JUL/2017 INTELLASIA| VNS investment for Dinh The Mekong Delta province of Tra Vinh is calling for investment in the Dinh An eco- An economic zone nomic zone. The focus is on technical infrastructure, oil refining, deep seaport and airports, as well as administrative services, education, training and scientific research, along with cultural exchanges, tourism and entertainment. Covering more than 39,000ha in Tra Cu and Duyen Hai districts, Dinh An is one of eight key marine economic areas nationwide, with favourable conditions to develop a sea-based economy, electricity, petrochemicals, shipbuilding, navigation services and tourism. A passageway for ships of 20,000 tonnes to enter the Hau River is expected to become operational in 2017, which will facilitate domestic and international trade. So far, Dinh An economic zone has attracted 29 projects with total registered capital exceeding VND151.3 trillion (US$6.65 billion) and generated nearly 2,500 jobs.

Intellasia 24 July 2017 38 / 59 Vietnam finance & business 24 July 2017

Pham Van Tam, head of the management board of Tra Vinh economic zones, suggested devising more incentives, apart from policies, to exempt or reduce land rent, corporate income tax, personal income tax and import-export tax. Businesses will get land clearance compensation and support to make environmental impact evaluation reports, register for intellectual property protection, apply technologies to upgrade productivity and quality of products, and receive assistance in voca- tional training. http://bizhub.vn/news/tra-vinh-invites-investment-for-dinh-an-economic- zone_287748.html

VN among top ten US 24/JUL/2017 INTELLASIA| VNS home buyers Vietnam is among the top ten countries buying US residential real estate, according to an annual survey of residential purchases from international buyers released earlier this week by the US National Association of Realtors (NAR).

FINANCE NAR's 2017 Profile of International Activity in US Residential Real Estate found that Vietnam ranks ninth, accounting for 2 per cent of the reported purchases by foreign buyers of residential properties in the US between April 2016 and March 2017. The report revealed that foreign buyers and recent immigrants purchased a total $153 billion of residential property, jumping 49 per cent over the previous 12-month period and surpassing the previous record of $103.9 billion in 2015 to set a new high. Overall, 284,455 US properties were bought by foreign buyers, up 32 per cent from 2016. This figure accounted for 5 per cent of existing home sales. Foreign buyers paid an average of $302,290, a 9 per cent increase from the median sales price in the 2016 survey and above the sales price of all existing homes sold during the same period which was at $235,792. Vietnamese buyers were estimated to spend $2-3 billion buying US residential properties during the period. Lawrence Yun, NAR chief economist, said in a news release published online "The po- litical an economic uncertainty both here and abroad did not deter foreigners from ex- ponentially ramping up their purchases of US property over the past year. While the strengthening of the US dollar in relation to other currencies and steadfast home-price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the US is a safe and secure place to live, work and invest." Buyers from China exceeded all countries by dollar volume of sales at $31.7 billion, which was up from last year's survey ($27.3 billion). Chinese buyers also purchased the most housing units for the third consecutive year (40,572, up from 29,195 in 2016), according to the report. Rounding out the top five were Canada ($19.0 billion), the United Kingdom ($9.5 billion), Mexico ($9.3 billion) and India ($7.8 billion). Florida, California and Texas remained the top destinations for foreigners, accounting for nearly half of all foreign sales. http://bizhub.vn/property/vn-among-top-ten-us-home-buyers_287753.html BUSINESS Business Briefs July 24/JUL/2017 INTELLASIA | 24, 2017 * Van Phat Hung Corporation (VPH) has decided to issue over 2 million shares to raise its chartered capital from VND 530 billion to over VND 756 billio. VPH will sell over 10.59 million shares at VND 10,000 each at a 5:1 ratio to existing shareholders in the third or fourth quarter, using proceeds to invest in the expanded Nhon Duc project, speed up work on other project and pay land use fees. Besides, the enterprise will issue over 12 million shares to pay a dividend in the fourth quarter for the first quarter of 2018. * Vu Dinh Do, chair of Dong Nai Plastic Company (DNP, has registered to buy over 4.5 million DNP shares from now to August 18 to raise his ownership from 9.8 percent to 24.9 percent, or nearly 7.5 million shares. If the transaction is done, Do will become the biggest shareholder at DNP replacing investor Le Tuan Diep, who currently owns an 18.9 percent stake at the firm. According to Dau Tu Chung Khoan website, DNP has

Intellasia 24 July 2017 39 / 59 BUSINESS Vietnam finance& business Vietnam of steepercorrection Shares onfears slump plummets turnover Market Intellasia http://english.thesaig southern bourse andover VND13.6 billion on the northern exchange. tothesellingForeigners side,netse shifted bourse with over 16 million shares traded. a three-day winning streak. It rest food and trading, KLF, whichfocuseson construction firm VCS, securities firms billion. thebiggestadvanc ACB was VND555.7 the HNX-In the Hanoi market, On shares. million after twodaysofclosing at the floorprices to weakcashflow. OGC,afinancialinvestme againhittheir ceilingpr AGR firm securities On theotherhand, housing developerHAR, trading. given sluggish HQCdeclined and ITA,KBC FLC, like stocks Investment GroupCo Ltd registered to bu Steelmaker HSGadvanced1.9 percent after strongly. declined STB VCB and percentwhile 0.5 with and CTG percent 1.4 with percent,MBB 2.2 EIB with In the banking sector, BID was thelargestga limit. the upper or approaching three dayshitting gains, including plunged tothe floor priceofVND87,400pe While SAB made anicerebound in the afternoon, BHN, anotherbrewery stock, ended in negative territory as VNM, GAS and VCBlost ground. which closedwith a0.8 rise, the percent was large caps SAB, BID andVIClifted the ma Having plunged tothestrong including 2.4 million VCI sh There were over 11.1 million shares valued at VND366billion traded via bloc deals, around falling day,hands attheendof The HCM City marketsawover 183 milli theVNIndex to leading down, The stock market returned toitslosing stre 24/JUL/2017 INTELLASIA| THE SAIGON TIMES water plant in Tien Giang Provice with a running 950 billion.Itis co EcoSolutions Co Ltd Last month,DNP- in water projectinvestmentofDNP, signed increased strongly in pricesince the end of On the HCMStock Exchange, the VNIndex ti information. sufficient without investing Sharesthis weekonthe sank twostock ex 24/JUL/2017 INTELLASIA| VNS rities Company. beenincrease has capital its Sofar, billion. inMay Exchange debuted inthe Stock Hanoi forthe tocome company making itdifficult steered inve finished infrastructureproject lion as the resort property segmenthasshow In these had tocoverhugeexpenses. still VND 8 billion inthefirst halfof2017. VC Company(VCR)reportedTourism Development a lossof * VinaconexInvestmentand Long An provinces attheend of2018. and Giang Bac in water plants new to operating to start company plans per day.The ontimes.vn/55139/Market-turnover-plummets.html Binh Hiep water plant in Binh Thuan Province and Dong Tam Province andDongTam plant inBinhThuan Binh Hiepwater ares worth VND139.2 billion. ares worthVND139.2 was againthe most heavily traded stock on the northern supporting zone from 757 to 763 points in points to763 the morning, from757 supporting zone lose 0.37 percent lose 0.37percent at 768.41. dex slid 0.15 percent at 98.65 with turnover reaching turnover with 98.65 at percent dex slid0.15 SHS and VND and petroleum enterprise andpetroleum PLC. and VND SHS cond quarter, the company lost VND 4.1bil- VND lost thecompany cond quarter, on shares worth VND3.4 trillion changing combined capacityof R earned no revenue in the period while it d to VND 360 billion, said Viet CapitalSecu- billion,saidViet VND360 d to changes as investors showed cautionabout ak onJuly20asweakdemandsentturnover stor awayfromVCR's construction projects, and reported a matchingvolumeofover9.6 in index up, in which brewery firm SAB, SAB, firm brewery which in up, index in y two millionHSG shares. Mostproperty lling VND2.5 billionworthofsharesonthe June as DNP-Water, a member specialising 22 percent against the previoussession. toVND charteredcapital its Water raised astrategicpartnership with japan's Kobel- r share after six cons r shareafter key contributor. However, the marketstill ices while most speculative stocks fell due speculative stocks ices whilemost te against rivals and attract capital. VCR capital. te andattract rivals against three fallingthree Sen sessionsas Hoa inarow n littlesignofrecovering. Meanwhile, un- aurant services, decreased 3 percent after iner witha2.9percen agricultural chemicalproducer HAI and nt group, alsowentuptotheupper limit 2010 with registered capital of VND 300 300 capital ofVND withregistered 2010 cked down0.85 per cent to close Friday er with a0.4percen 140,000 cubic meters 140,000 ecutive sessions of ecutive sessions t rise, followed by t rise,followed t rise, followed by by followed t rise, 24 July 2017 40 / 59 40/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam stock market millionaires in the The newest,richest Intellasia Vuong, president ofVingroup,a up businesses haveexperienced While other end of2015. Group hadunsatisfactory busi tothe Duchad fallen 12 However, by 2016, the year. Nguyen Duc,presidentDoan ofthegroup, AnhGia ofHoang La shares In 2008, HAGL he ranked20th. However, Tam's assets had decreased to VND1 ban Development (KBC), with the total assets of VND6.3 trillion. estate development firmsTanTaoInvestme The firstposition in the 2007list belonged fallen tothe17th position on the list However, by the with stock end of2016, as 2006). 29, trillion (FPTshares worth VND2.4 were tr At that 2006 list. the on est stockmillionaire Truong GiaBinh,larg president ofFPT,the names the dia whenanewspaperexposed milliona stock richest of the names the In 2006, changes in business ownership, falls in share prices and slumping business. The list ofthe top richest millionaires in 24/JUL/2017 INTELLASIA| VIETNAMNET The decrease ofbankandenergy stocks, espe Military Bank (MBB) with losses of and (BID) BIDV (CTG), Vietinbank (VCB), Vietcombank like banks big and per cent; 0.33 down (VNM), Vinamilk giant percent; dairy 3.23 down stock, energy listed gest The stocks that weighed the down market firms advanced. market valueandliquidity onthe main bour Blue chips continued to lead thedownturn. Ex while ones by 297-195, Overall marketbreadthwas ne northernmarket The inde 97.96 points. On theHanoiStock Exchange,HNX-Index the thetwo- extending points, at 761.86 http://bizhub.vn/markets/s stocks traded on each stock. (ITA) andDatXanhRealEstateService &Cons Esta Quan Consulting-Trading-Service Real co City's exchangewererealestate HCM Money continuedtoflowinrealtystocks;four trillion (US$186 million) traded in the two markets. Liquidity remained modest, wi points in the upcoming session, BSC's analysts said. the current rate, andthe VN Indexwill fl With theportfolio restructuring offunds,mark over 782 pointson July 6. sign ofdecelera has showed the market but The benchmark VNIndex hasexpanded 14.6pe said. happen," they "We believethatthese corrections werenot extremely negative and continueto might Co atBIDVSecurities analysts (B small-cap andpennystocks,o 216 closed unchanged on thetwo exchanges. hares-slump-on-fears-of-steeper-correction_287756.html ccurred duetoinvestors' conservative approach,market ness performancewithdebt th almost239 million shares worthVND4.2 acombined gative, as the losing stocksoutnumbered the gaining real estate developer, has been standing firmly at the the at firmly standing been has developer, estate real SC) wrote in a yesterday's report. inayesterday's SC) wrote between 1.2-2.4 percenteach. day droptonearly 1.3 per cent. of the richest stockmillionaires. x was down 0.2percenton Thursday. the stock market changes regularly because of because regularly changes market the stock mpanies, including FLC Group (FLC), Hoang Hoang Group(FLC), FLC including mpanies, uctuate above the supportive level of abovethesupportive 760 uctuate aded at VND460,000 pershare onDecember aded at VND460,000 to Dang Thang Tam, who owned tworeal the most included PV Gas (GAS), the big- sets falling to VND1.438 trillion,Binhhad sets falling toVND1.438 and stockassets they were holding. th position, while his HoangAnh Gia Lai est Vietnamese IT Group, became the rich- IT Group,became est Vietnamese tion tion the after Index hitthe9-yearpeakof becoming therichest stock millionaire of time, Binh time, held 5.12 million FPTshares, te (HQC), Tan Tao Investment Industry te (HQC), TanTaoInvestment i Group entered the bourse, which led to nt & Industry JSC (ITA) and Kinh Bac Ur- KinhBac and (ITA) JSC nt & Industry s and downs for many years, Pham Nhat years, Pham s anddowns for many se in HCMCity tumbled, and only three cially GAS,alongwi ires for the first time appeared intheme- appeared for the firsttime ires of the top five most active stocksonthe thetopfive mostactive of truction (DXG) with five to nine million to nine withfive truction (DXG) et liquidity is likely to bemaintained at actly 23 of the top 30 largest shares by shares largest 30 the top of 23 actly slipped 0.7 per cent to end the week at week at end the 0.7 percentto slipped .226 trillion bythe end of 2016, when r centsince thebeginning ofthisyear, of VND33 trillion by the VND33 trillion of th divestments from from divestments th 24 July 2017 41 / 59 41/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam of IPO business resultsahead reports positive and Petrochemical Binh Son Refining bourse debuts on HCMCity Environment JSC Binh Duong Water Intellasia bourse/115181.vnp http://en.vietnamplus.vn/binh-duong-wat dex, whichtrackstheperformance of the the bigg gathers exchange that isthe HOSE lion USD) and profit after taxes of millionUSD), (387 exceeding 8.8trillion VND the province. By the end ofthe first quarter focusesand supplyingtreatingBWE on cleanwaterfordaily activitiesand industry in million USD). (65.9 VND curre company 2016, the inAugust, Equitised investment. draw more is expect the company on HOSE, the Listing percent fromtheinitial price. the At end per of VND (0.75 USD) was 20 share, up July BWEstock sold at 17,150 20, a tradingba pershare,with USD) (0.63 The HOSEdecidedtolist th company 20, 421st on the (HOSE) on July the bourse. Binh Duong started tradingwithcode BWE onthe Ho Minh Chi Stock Exchange Binh Duong Water EnvironmentJoint Stock 24/JUL/2017 INTELLASIA| VNA 355150.vov http://english.vov.vn/economy/the-newest-ric remains amystery. combank, and hisson, Dang Hong Anh, disa In 2013, yearsinthetop10and after many list. the was noton Van Quyet aires ThiPh Nguyen Pham Nhat Vuong and bill However,report Forbes'latest about Gioi DiDong(VND3.588 trillion. trilli (VND5.243 VIngroup of president vice lion; Pham DinhLong, president ofHoaPh These include Trinh VanQuyet, president of their positions change regularly. top 10arealsowe The othernames inthe trillion. VND31.851 good business performance ofVingroup. The Vuong's stockassetsbeen have No 1position since 2009. the principal portionsoflong-term borrowing the principal Regarding financial structure,BSR'sliabilities business expansion. and on investment plan its support as well as off debts, pay to ability its ensure and The huge amountofcash and operating ca than VND15trillionwhich acco ($600million), quarter of2017,the endofsecond At the same period lastyear. after-tax profit, up million)of lion ($152 erated nearly VND38.7trillion($1.5 billion) According tothereleased financialstatement, Positive business results IPO. revealed itsplansforan and Quat OilRefinery,relion Dung Petrochemical Compan Son Refining and Binh 24/JUL/2017 INTELLASIA| VIR e company'ssharesatthereference price of VND 14,300 increasing inthelast twoyears partially thanks tothe ported positive business results in the first halfbusinessfirst of2017 resultsported positive inthe 53 billion VND (2.3 USD). million nd of20percent for maiden listings. 15 and 266 per cent, respectively, compared to to compared cent,respectively, 266 per 15 and ionaires named only twoVietnamesebillion- ll-known and influential businesspeople, but businesspeople, ll-known andinfluential BSR's cash and cash equivalents were more largest 30firmsby ma er-environment-jsc-debuts-on-hcm-city- est companies inVietnam with itsVN30 In- sh flows help BSR pay off matured debtsmatured pay off sh flowshelpBSR on); and Nguyen Duc Tai, president of The Tai, presidentof on); andNguyenDuc top 20, Dang VanThanh,president ofSa- at (VND9.14 trillion); Pham Thu Huong, Huong, Thu Pham trillion); at (VND9.14 of net revenue and morethanVND3.8tril- of this year, the company had total assets company hadtotal year, the this of ed to improve its public reputation and reputation ed toimproveitspublic FLC with stock assets worth VND30 tril- stockassets worthVND30 FLCwith Company in the southern provinceof in the Company ppeared fromthelist. The fall ofThanh uong Thao,CEOofVietjet, while Trinh declined dueto the gradual reduction of total revenue of342billionVND(15mil- inthefirstsixmonthsof2017, BSRgen- ntly haschartercapital of 1.5 trillion hest millionaires-i VIC shares he is holding have valueof s. Attheend of thesecond quarter of y Limitedthe $3bil-ownswhich (BSR), unted for 28 per cent of its total assets. total its of percent for28 unted rket capitalisation. n-the-stock-market- 24 July 2017 42 / 59 42/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam Intellasia rates, instead of normal commercial loan interest rates," Nguyen said. by thegovern is guaranteed "If this project and the other halfwillbe borrowed fromdomesticcommercial banks. Of the totalborrowings,50percent will be ly $1.3billion. that BSRis dealingwithand intern domestic Dung Quat Oil Refinery willborrow 70per ofnear investmentsum theestimated With tors their potentialbenefits. sion plan onDung Quat ch cent ofBSR's than 36per ket said that BSR'srequirements forstra and gas a foreign oil of A representative shareholders yet. pressed interest in BSR's offerings. However, enterprisesKore petrochemical fromSouth stra BSR's become to potential great to hold Currently, BSRhasspreaditsofferings to oil. tonnes ofcrude BSR's financialstatementsreve terest expenses decreased by of63 per cent in a reduction with comparison that Dung Quat's annualrefi the projectonDungQu as itisimplementing ence in the petrochemical sector is consider Seeking appropriate strategicshareholders per cent. stake," Nguyen stak said andaddedthat the isabig "As BSR enterprise, in weplan 2017, holders within12monthsof itsIPO. stocks tostaff and conduct its first IPO.Next ing will be divided into two steps. Inparticular, at the end of 2017, BSR will sell its According toTran Ngoc Nguyen, general director of BSR, thecompany's stock offer- be small. er, withthe$3billionDungQuatOilRefinery, value hasnotbeen officiallyreleased, soit is on andthe track IPO is expected to take When asked about BSR's preparations for its IPO plan in business development 2017. its to accelerate Thus, nowBSR'sproducts havea moreflexible andcompetitive price,whichpromises product selling price instead of following the regulated formula. Decisi of the adjustments to thanks that in results business thethriving about Talking debts isbetter. getting on time topay off BSR's ability that the demonstrating years, toincrease throughout likely to the ability has BSR showthat These ratios has been liquidity, than0.5and bigger afte ra quick its period, inthis also In addition, bigger than 1, and 2015, after this has ratio been biggerthan2. short- pay to ability company's a measuring particular, in 2016, BSR's total interest ex BSR's total interest in2016, particular, reduction ofprinci Besides, the trillion VND41 ($1.6 VND13. over to decreased liabilities 2017, billion) in 2010. Oil Refinery, willonlybe me artered capitaland at the supportingitsexpan- same time ning capacity will ning capacity 18 to2016. cent 18 per compared pal portions leads to a decrease in interest expenses. In expenses. ininterest a to leads decrease portions pal aled that in recent years, BSR's current ratio, the ratio ratio the ratio, BSR's current recentyears, in that aled on No.952/QD-TTg,BSRnow can decide on its tegic shareholders, including buying more penses were VND605 bi penses wereVND605 enterprise operating on the Vietnamesemar- enterprise operatingon 5 trillion($540 million)from morethan ment, we canborrow at preferential interest 15 foreigninvestmentfundswhicharesaid is difficult to say an exact number. Howev- anexactnumber. say to difficult is tio, an indicator of a company's short-term short-term company's of a anindicator tio, place the at end present, At of 2017. BSR's tegic shareholders. Besides,therearemany r 2014, this figure has been bigger than thisfigure r 2014, 1. has beenbiggerthan sourced from export credit agencies (ECA) export credit sourced from ed an important mission to BSR,especially mission ed animportant a, Venezuela, and thathasex- a, Venezuela, Russia ly $2 billion, the onexpandingproject with strong financial ability and experi- and ability financial strong with cent oftheneeded capital. Nguyen said term and long-term obligations, has been to sell 5-6 per cent of thestate-owned per cent to sell5-6 at's upgrade and expansion. It isexpected It and expansion. at's upgrade IPO, arepresentativesaid thateverything e offered toBSR's staff is smaller than 1 ational credit institutions toborrow near- payits off Besides, debts. theseare ratios uptillnow,BSRhasnot pickedstrategic , BSRwill sell stakes tostrategicshare- 2011. Inthe 2011. in- first halfof2017, BSR's the first half of 2017, BSR's leaders leaders BSR's said the firsthalfof2017, it is forecasted that BSR's value will not not will value BSR's that forecasted is it rise frommill six t after BSR clearly showsinves- clearly BSR after t ion to8.5 million llion ($24.2 million), llion ($24.2 24 July 2017 43 / 59 43/ 2017 July 24 24 July 2017 24 July BUSINESS divest LocTroi Mekong Capitalto finance& business Vietnam Intellasia Mekong Capital'sdivestment listing. Many people may wonder aboutthisdivestment coming period." inthe published be officially will information "Detailed saying, representative, ital's LocTroiafterit capital from In particular, VietnamAzalea Fund manage for thescheduleddivestment of Mekong Ca Recently, Loc Troiisnot only in thecentre withdraws Mekong Capital coffee. as riceand products, such valuechain,fromresearch to agricultural said that Huynh VanThon,chairofLocTroi, brand inVietnam. pr market protection sharein plant the of to LocTroitargets Also, reach the capitalisa per cent dividendincash. of EPS gainan targets to It 2016. pared to billion($20. profitofVND460 and after-tax 2007 anditsoperating period is Lo including enterprises, many There are somespeculationsVietna aboutwhy ma firm. holds a 25 per centstakeandis currently th waslisted Company Traphaco JointStock 2016. Similarly, LongInvestme Nam 2017. inMay completely withdrawing finished Fund only FPTCorporati were listed.Forexample, In other enterprises, Mekong Capital also he shareholder ofMobile World. hasdecl thefund'sstake ByApril2017, World. contin Mekong 2016, Capital September Until hol still Capital ever, Mekong partlydi byMekong Ltd, Capital, managed was listedin HoSE) poration (TickerMWGon netrevenuetarget the companyseta In 2017, per ($0.19). share ofVND4,382 (EPS) million) billion($15.4 VND349 In 2016, Loc Troigenerated more thanVN individuals in Vietnam. Troi's staff hold 15.31 per cent, while the re per cent of Loc Troi'sstakes, Regarding the shareholder structure, the An People'sGiang Committee holds 24.15 Vietnam. branch of 26 hasawidenetwork and it share holds the leading inposition the fieldofplan cialises in three fiel charteredcapital ofVND6 the Loc Troihas is session trading the first in share ($ billion VND672 of value registered total UPCoM byis listed on to be plans Loc Troi listedLoc Troitobe the Unlisted Public CompanyMarket(UPCoM). about the divestment offoreign shareholder Shareholders of Loc TroiGroupJointStoc 24/JUL/2017 INTELLASIA| VIR ds, plantprotection,s is listed on UPCoM. This was confirmed by Mekong Cap- This wasconfirmedbyMekongon UPCoM. is listed five foreign shareholders holdatotalof44.04 cent, per Loc ds acertain number of MWG c Troi, after they are listed. listed. are they after c Troi, is normal. For example, Mobile World Investment Investment Cor- World Mobile normal.Forexample, is expected tobe tenyears,me nt Corporation was listed in 2013 and was divested in was wasdivested listed in2013 and nt Corporation in after-tax profit,whichwasequivalentearning tothe expected to be VND55,000 ($2.42). expectedtobe VND55,000 eedling supply,and food processing. Loc Troi on was listed in 2006, but Vietnam on was Vietnam Azalea listed but in 2006, VND5,822 ($0.26) andpay ($0.26) shareholders 30 VND5,822 oducts, and become thenumber one rice production and sales ofmain agricultural k Company (Loc Troi)are raisingconcerns mainder belongs to otherorganisationsandbelongsmainder D7.8 trillion ($343.2 million) and earned million)andearned ($343.2 trillion D7.8 ofattention for itslistingon UPCoM, but 29.6 million).The reference priceforeach suing 67.2 million stocks on July 24 with suing 67.2millionstocks a on July 24 with 72 billion ($29.6 million)andmainly ($29.6 72 spe- billion 24 million), a growth of28.7per cent com- e secondbiggestshareholder ofthisphar- vested fromthisenterprise in How- 2013. pital, a big foreign shareholder since 2008. shareholder since foreign big pital, a tion of $1 billion in 2021, hold 30percent in 2021, tion of$1billion t protection with 20per with market cent of t protection the d by Mekong Capital, will withdraw its Mekong Capital after the firm's listing on the after listing firm's Capital Mekong ld stakes for quite a long time after they along ld stakesforquite after time the company is grad of nearly VND8.3 tril VND8.3 of nearly m Azalea Fund will quickly divest from from divest quickly will m AzaleaFund all over agencies 5,000 morethan es and ued to gradually withdraw from Mobile from Mobile withdraw gradually ued to ined to 5 per cent and it quit being a big being abig and itquit percent ined to5 2014, but Mekong Enterprise FundII in 2008, but Vietnam Azalea Fund Fund still Vietnam Azalea but in2008, , asitcomeson the heelsof Loc Troi's The fund was established in was fund The aning closing time is coming. aning closing time is shares after it waslisted. ually completingits lion ($365,2 million) lion ($365,2 24 July 2017 44 / 59 44/ 2017 July 24 24 July 2017 24 July BUSINESS deadlock persists urban railway Cat Linh-Hadong finance& business Vietnam competition traditional choking out Grab andUber Intellasia http://www.vir.com.vn/cat-linh-hadong-u into an additional loanagreement andbiddingto procure equipment. price, equipment indetermining contractor There aremany reasons for the delay, mainly originating from the delay of the main ($794.57 million)and was tobe ($794.57 Itha inFebruary 2016. and then adjusted Previously, the CatLinh-Hadongurban rail motorbikes insevera is anim railway urban The CatLinh-Hadong during 2017-2020. jams inHanoi Hanoi People's Committee, saidthattheproj At arecent national conferen complete thenece gotiated by the Ministry ofFinance, the Mi ad The China. loan from using The projectis noted. the official tocontinue," likely is the and delay "Currently, the allocationof from ministries and agencies." the officialsaid, pr blaming bursement ishuge. However, the allocationof the schedule. "The projectschedule.in thefinalde "The the is An official oftheMinistry sluggish allocationofan cent ofthe project has been completed, in offici followed bythe scheduledforatria The projectwasearlier solved yet. falling behind schedule as the delay in a ($706,299). The cumulative figure ofthefi figure Thecumulative ($706,299). profit inthesecondquar after-taxsides, the mill ($35.75 billion reachedVND810 revenue According tonewswire Vnexpress, inthese year. ofthis half ees inthefirst has reacheda while Ci total of 21,000, HCM is has exceeded the figure ofHCMCity'sta According tonewswire Vneconomy, in recent and Ubercabs. Uber dueto withGraband fierce competition Vi especially taxi companies, Traditional Grab andUberdominatingHCMCity and Hanoi Uber. and by Grab posed it due claiming year, ofthis half the first Vietnamese taxicompany Vina 24/JUL/2017 INTELLASIA| VIR metro line, The CatLinh-Hadong 24/JUL/2017 INTELLASIA| VIR Vietnamese taxicompany Vina Mai LinhGroupandVinasun lament competition passengers. tactics toseize GrabTaxi havetheir own and per kilome charges VND9,000-11,000 about VND7, range In general,UberXfares time. brands atthesame Now UberandGrab arebattlingfor dominanc companies. taxi fortraditional created nue, also difficulties but contribute has notonly oversupply ofcabs The ssary procedures. l districts by l districts 2030. al launch at the end of the firs launch attheendof al additional loan of $250.6 million loanof$250.6 remains abigproblem. additional ocedure-related problems. "I Transport (MoT) admitted that the project will likely miss miss likely projectwill that the admitted Transport (MoT) an additional loan is three ce onroadsafety, Nguyen TheHung, deputyChair of the officially la sun hasreported an decrease inrevenue and employ- sun hasseen a decrease inrevenue and employees in Hanoi's first urban tre. In spite ofthisdifference in fares, both Uber pproval of additional loans has notbeen loans pproval ofadditional to the unfair competition in terms ofprice interms competition to the unfair nasun and Mai Linh Group, are losingthe and MaiLinhGroup, nasun s a total investment value of VND18 trillion VND18 s atotalinvestmentof value cluding stations, depots, and girders, the the girders, and depots, stations, cluding velopment stage,the de rst six months was VND1.9 trillion ($706.29 trillion($706.29 was VND1.9 rst sixmonths rban-railway-deadlock-persists.html xi planning. Notably, Uber and Uber Grab's fleet xi planning.Notably, ter fell 50per cent on-year to VND16 billion l operation in October 2017, whichwillbe inOctober2017, l operation unched in2016. unched nistryand China's ofJustice, Eximbank to way projectwas approved inOctober2008 000-8,000 per kilometre, while GrabTaxi whileGrabTaxi perkilometre, 000-8,000 ty's taxi demand which affected the progress of entering affected theprogress which cond quarter of this year,Vinasun's net ditional loan of $250.6 ditional loanof$250.6 ect is an urgent solution toeasetraffic urgent an ect is ion) only, a record low since 2014. Be- 2014. record lowsince a ion) only, portant factor that enables Hanoi to ban to Hanoi enables that factor portant the dizzying riseof Grab inthenumberthe dizzying the financialsources remains stagnant," years, thenumber ofUberand tax- Grab e, whilecompeting withtraditionaltaxi d to traffic jams and losses in tax intax reve- losses jams d to and traffic t quarter of 2018. Although 90 per 90 Although of2018. t quarter railway project, is facing risks of isfacingrisks railway project, months behindtheschedule t needsstrong cooperation is 11,000-12,000 only. is 11,000-12,000 mand for capital dis- mand for million is being ne- being is million 24 July 2017 45 / 59 45/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam urban area project urban area Binh Quoi-Thanh Da pursues Bitexco still Intellasia of Saigon project. number oflarge-scale projects also is Bitexco while inDubai company tate pected to be completeinduetimebecause Binh Quoi-ThanhDaurban areaproject earl partner has walked awayand it nowseeks to developthe project onitsown. for infrastructure lion), all was todevelop picked the project atacost Until late2015, thejoint ventureBitexco between Groupand Emaar Properties PJSC invest intheproject, but no prog thecity al In2004, in1992. City of HCM The BinhQuoi-Thanh Da urbanarea project or cancelled. theplan, acquisition of landmust becomplete year three within theLandLaw, to According phu.vn reported. been included inthedistrict's landuse quit the project, so the projecthas notbeen urban area project. Shesaidforeign invest head of the HCM City government office VoVan Hoan on theBinhQuoi-ThanhDa Vo Thi PhuongUyen,vicechairwomanof Vo PJSC has quit,arepresentative of City Binh ThanhDistrict, HCM Bitexco Groupis still pursuinga to project 24/JUL/2017 INTELLASIA| THE SAIGON TIMES lifted. officially thebanwas 26, May aweekafteritwas about was suspended Italian territory, alongwithpromotion an The courtgaveUbertendaystoterminate to unfair competition. uni taxi by filed complaint a Rome upheld On 7,asreported April by th drivers. to incentives generous and Uber US-based ability of the would undercut and Meru,have separately ur as reportedbyindiatim December 2016, In claim of is notaloneinits Vinasun policies. pricemanagement its review the that government evid gathering is company the that said Hy City. paignthat hasrecruitedmany otherVietna Grab against litigation would pressing keep generadeputyearly June,TaLongHy, In persist taxi companies Traditional makes it increasingly difficult for the company to perform. Besides,dizzyingclaimed MaiLinhthe that cent fallduetoincreasing fina year. However, its pre-tax profit was VND61.12 billion ($2.74 million), a sharp 62 per trillion VND3.73 ($164 enue was Regardingaccording MaiLinh toGroup, it the gloomy thisyear. end of until th representative, toaVinasun According 9,179. people, to 8,000 by approximately Within the first six months ofthis year, adecrea signifying million), development. However,development. Bitexcoannounced thatthe foreign se of15 per cent on-year. e Guardian, in a ruling that is rulingthat ina e Guardian, ged government agencies to formulate policies which policies ged government agenciestoformulate in HCMCity suchas Bitexco Financial Tower and Spirit ncial and managementexpenditures. althoughitsjointventur .65 million), equalling an in an million), equalling .65 ress on the project had been made. had been on the project ress the group told the Daily on 20. the July told the group Daily unfair competition against Uber. against competition unfair plan since 2016, the news website www.chinh- the newswebsite since2016, plan the number of Vinasun's employeesdecreased lowed theSaigonConstructionCorporation to or EmaarProperties PJSChadannouncedto implemented asthecompanyappealed. On Binh Thanh District, d advertisingactivities.However, the ban l director of Vinasun, saidthe company develop develop Binh Quoi-Thanh Da urban area in ons and banned Uber because it contributes it Uber because ons andbanned e company's business results may remain remain may results business e company's the useofitsvarious phoneapplicationson es.com,Indian theequivalentsofUber, Ola of about VND30.7 trillion (about $1.35 bil- $1.35 (about trillion VND30.7 ofabout mese taxi companies from and Hanoi HCM ence. Besides, Vinasunwouldalsopropose able to get started though the project has project has the though started to get able Emaar PropertiesPJSC s 2016 financial report, thecompany'srev- s financialreport, 2016 acapable investor, which is evident in a was approved bythePeople's Committee and Uber for unfair competition, competition, a cam- Uberforunfair and ier captured huge andwas attention ex- growth ofthefleets ofGrabandUber to offer steep discounts tooffersteep topassengers s after the project is put into the land use the land into isput the project s after d or the project will have to beadjusted d ortheprojectwillhave e partnerEmaar Properties subject to appeal, a court in courtin a toappeal, subject crease of 32.3 per cent on- cent per of32.3 crease on Wednesday briefed is aleadingreales- 24 July 2017 46 / 59 46/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam pilot programme double-decker tour Vietnam suspends launched this year air routeto be Hanoi-Chungcheong Intellasia launched-this-year.html http://english.thesaigontimes.vn/551 July by 178,000 nearly was the number and visitedSo Vietnamese 251,000 Last year, over a sanseongby UNESCOas recognised wi Province Chungcheongnam-do resorts, and ment agencies headquartered there, Chungcheongbuk-do Province with attractive ment, Sejong Cityc Chungcheong includesDeajeon famous City year. the development of the Vietnamese market Jung Chang Wook, aKTO representative in to Chungcheongpolicies.tours willenjoypreferentialfering introduction ceremonyinHCMCity on Wedn go well, Kim Eyeong HotoldtheDaily on the sidelines of the Chungcheongtourism tourist destination on itsroute. destination tourist equipped to with anautomated voicesystem The two-storybusservice had itstestrun final feedbackceased, ontheMarc "pending ble-deckera negativelight, programmein While thetransport ministry did not specify whether theresponses havecast thedou- launched. programme was aswell tourism counterparts, ministryAs oflastmonth,the receivedresp ploying passenger buses to boost tourism. thetransport ministrybegan 2017, In March transpor the the premier, by given are tions programmehasb trial the tourists, ers for Though Hanoi and Da Nang havealready in tourism inHanoi, HCMCity, DaNang,Quan Phuc approved a five-year pilot progra The decision was announced only seven mont minister. fromtheprime guidelines new pending inseveral cities, big double-deckers using Vietnam's Ministry ofTransport has requ 24/JUL/2017 INTELLASIA| TUOITRE NEWS HCM City-Chungcheongflights The name of the carrieroperatin rean destinationbeside familiar onessu opening of the new airservice willhelpbringmore Vietnamese tourists toanew Ko- the region are joiningforces tolaunch flights in November or December thisyear. The Sports and TourismofSejong, acityinChun EyeongKim Ho, head oftheTourismDivi the twocountries.operation between co- tourism boost further to services weekly five with year this of end the at launched Flights connecting Viet 24/JUL/2017 INTELLASIA| THE SAIGON TIMES urban-area-project.html http://english.thesaigontimes.vn/55149/Bi the whole isscheduledtobe project comp frastructure. Functionalareas willbedevelo investor In phase to2020, the one, from2016 oped inthreephases. areaof427 hectar The projectcoversatotal onsidered the second capitalof South Korea withmanygovern- nam's capital ofHanoitoSout as authorities from the seven localities where the pilot g the flights remains undisclosed. can start next year iffive 36/Hanoi-Chungcheong-air-route-to-be- cultural heritage site of the world. mme inNovember2016 for double-decker ch as Seoul, Busanand Jeju Island. een temporarily put on hold until new direc-until een temporarilyputonhold ested atemporary hold on tourismservices texco-still-pursues- in Hanoi on June 31, using open-top buses June 31,using Hanoi on in lete in phase three, from 2026 to2030. lete inphasethree,from2026 sion under the Department of Culture, it did request that thepilot programme be t ministry said inadocumentonThursday. t ministry onses from its finance, public security,from itsfinance, and onses es. According tothe plan, itwillbedevel- h 2017 draft plan from the prime minister." prime draft planfromthe h 2017 9, a year-on-year ayear-on-year 9, of29.8percent. increase with50percent morethan growth last Vietnam, said South Korea highly valued ped in phase two, from 2021 to 2025, and to2025, ped inphasetwo,from2021 gcheong region, saidrelevantagencies in soliciting feedback soliciting feedback willcompletesiteclearanceandbasicin- for tourism, science and medical medical treat- science and tourism, for troduced their own fleet ofdouble-deck- troduced theirown introduce and share details about each Lam Dongandg Nam,Hue, KienGiang. uth Korea, up 54.5 percent versus2015, up54.5 Korea, uth esday. Vietnamese travel companies of- hs after primeminister Nguyen Xuan th theancientcitadelofGongjuGong- h Korea's Chungcheongwillbe h flights a week fromHanoi a flights Binh-Quoi-Thanh-Da- on a draft plan onem- on adraft 24 July 2017 47 / 59 47/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam $42 million plant Binh Duong tolaunch Phong City store inHai first Starbucks opensits built inCan Tho Stroke hospitaltobe Intellasia Marques, generalMarques, manager ofStarbucks Viet gion, servingHCM customers outsideHanoiand renew a experienceto third-place distinct our bring to proud is Vietnam "Starbucks Hanoi. City and city. Starbucks Tran Phu marked its entry into the third city in Vietnam, besides HCM The newstoreislocatedat15ATran PhuStreet 29th coffee shopinVietnam. its firs Starbucks inaugurated 24/JUL/2017 INTELLASIA| VNS http://english.thesaigontimes.vn/55140/St added. inthe and faci field, specialists ternational After theconstruction, the hospitalshould Tho City. hours, leading tohighrisk of Cityyearly.However, th HCM There arenowmore 10,000 stroke case than City. ciety ofHCM training workshops,said hold the research and application of new technol Besides providing treatment, the CanThoStro fatality anddisability, while emergency medical aid is still inadequate. Every year in there Vietnam, are more than 200,000 strokepatients with ahighrate of ters and specialise in treating patients suffering from stroke in the delta. worth VND240billion.The2 ed investment The hospitalis expected forcompletion in th Delta. intheMekong hospital stroke bethefirst will which Services, International on Ju Co. Ltd MedicalInvestment Viet Cuong 24/JUL/2017 INTELLASIA| THE SAIGON TIMES lot-programme http://tuoitrenews.vn/business/42085/vietn million ($4,400) eachasth VND100 The operator, QuyetThanh Cooperative, has The buses also haveopen uppe inmid-July. debut its made million), (US$2.64 billion VND60 In DaNang, a fleetofmore than tendoub TRP Vietnam Company Limited officiallylaun TRP Vietnam Company 24/JUL/2017 INTELLASIA| VNS city_287773.html http://bizhub.vn/corporate noi. panded to 29stores inHanoi,HCMCity and Vietnam in store Starbucks openeditsfirst ing. coffeeclas The new shopswillserveStarbucks St look foropportunitiestobring to ue Duc DistrictwiththeCho L and are currently inuseon theNo.6rout capable ofcarry The vehicles, the city's only pair oftwo-story vehicles is sl Whileplanadeploy to double-deckers fortourism inHCMCityyetenacted, has tobe willbe rescheduledThat plan inlightof September. in official launch the programme's 30 daysbefore -news/starbucks-opens-its- on BusStation in District 6. disability and fatality, said Le Van Tam, vice chair of Tam,vicechairof Can LeVan said andfatality, disability ing 120 people each, were put into use in February 2005 2005 use inFebruary into each,wereput people ing 120 t storeinHaiPhong on City Cuong, chair of the InterventionalCuong,of Neuroradiology chair So- is transfer by road normally takes more thanfour takes normally by road is transfer r levelsand wereexpected to e business is no longer profitable. is no e business arbucks Experience to more neighbourhoods. the transport latest request. ministry's thetransport e, connecting NongLam inThu University roke-hospital-to-be-built-in-Can-Tho.html le-deckers, collectively worth more than litate the training of workers, of health thetraining Tam litate am-suspends-doubledecker-tour-bus-pi- boost cooperation amongdomesticandin- 00-bed hospital will cover 4,000 square me- square will cover4,000 00-bed hospital in February 2013 in HCM City. Itthen City. ex- inHCM 2013 in February s transferredfrom theMekongDelta to ogies indiagnosis. The hospitalwillalso nam, adding thatSt nam, ated for ated retirement atthe end of thisyear. e third quarter next year with an estimat- an with year next quarter e third Hai Phong, with one reserve store in Ha- said it will put the buses on sale foron salethe busesit willsaid put ly 20 broke ground for Can Tho Stroke20 brokegroundforCanTho ly ched itsproduction pl in a vibrant district in the northern port inthe northernport district vibrant in a sic menuin the first month ofthe open- ke International Services will facilitate facilitate will Services International ke City for the first time," said Patricia time," saidPatricia first forthe City first-store-in-hai-phong- Saturday, which will be its Saturday, whichwillbe offer ticket-free trips for arbucks would contin- ant of automotive automotive ant of 24 July 2017 48 / 59 48/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam dragon fruit area fruit dragon expand VietGap Binh Thuanlooks to Intellasia 115213.vnp http://en.vietnamplus.vn/b haof tohave9,700 The localityaims Europe. theUS and like markets ing Binh Thuan dragonfruit isexportedto20 enterprises tocooperate cooperat with Trade andtheAssociationofDragonFruit toworkwithth urgedthesector He also portance ofproducingcleanfarm culture sector tocooperate with relevant se Co Vice ChairoftheprovincialPeople's to promotingtheproduction model. purchasing safe dragon thistothe The tion. attributed department expansion ofVietGAP cultivation areaissl However, the provincial Department ofAg export. promoting as well as oftheproducts prestige and the ing quality contributedhas tochangingfarmin standards cult the said the conference to Participants being re-certified. a with certificates, VietGAP and grantedwith In thefirst six monthsofthis year, 75 coop local farmers, who have formed in model cultivation fruit dragon The VietGap ha. for 28.27 percent or7,680 277,000 tonnes per year. Thear dragon fruit (up 135 ha compared tothe en of 27,000 ha has more People's BinhThuan Committee, Accordingthe provincial to 21. onJuly locality in the held was Good AgriculturalPractice A conference discussing waystoexpand th 24/JUL/2017 INTELLASIA| VNA http://bizhub.vn/news/binh-duong-to- fields ofmanufactur ating inthe TRP Vietnam,establis of over $27.4 billion, ranking second In addition, the province has 2,946foreignin ing 123 per cent plan. of year the In thefirstsixmonthsofthisyear,BinhDu ment forthe province, Liemadded. and upgrade the infrastructure inorder todevelop the economyandpromote invest- Binh Duong Province authoritie automobile industry and develop advanced household appliances. would provide high-quality andcompetitive Tran ThanhLiem, chair of Binh DuongPeop pads and 30,000 plasticproducts month. per The plant is designedto produce 2.6milli heatin parts, of automotive This is the fifth TPR Vietnam factory in in II day. Park Industrial VietnamSingapore at materials with and plastic pads heating parts, hed in 2006 in Binh Duong province, is a Japan's company oper-Japan's company is a province, 2006 inBinhDuong hed in fruits, while local authorities failed to pay adequate attention attention adequate to pay failed authorities local while fruits, inh-thuan-looks-to-expand- g pads and plasticutensils. (VietGAP) standards in the central Binh Thuan province the centralBinhThuan (VietGAP) standards in ea of dragon fruitmeeting ea of 382 382 cooperatives andfarms. s will strive to improve ing piston rings and cylinder liners. cylinder ing pistonrings and products, including dragon fruit. dragon fruit standards. dragonfruit meeting VietGAP in thecountry, followingCity. HCM ives in selling VietGap-dragon fruits. VietGap-dragon selling in ives launch-42 million-plant_287751.html launch-42 Binh Duong, specialising inthe manufacture mmittee Pham Van Nam asked the localagri- asked Pham VanNam mmittee e provincialDepartmentofIndustry and thesouthernof province BinhDuongonFri- countries and territories, including demand- including andterritories, countries on automotive part units, 120,000 heating on partunits,120,000 automotive ivation of dragon fruit in line with VietGAP with ivation ofdragonfruitinline eratives andfarmers' groupswere assessed ong has attracted nearly $1.73 billion,reach- nearly$1.73 attracted ong has to buildproductionchains,andencourage fact that in that few fact enterprises areinterested ow, with less farmers seekingwith lessow, re-certifica- farmers e areaofdragon fruitmeeting Vietnamese ctors to raisectorsto public awareness oftheim- d of 2016), with a total productivity of d productivity of 2016), with atotal riculture andRuralDevelopment said the vestment projectswithatotal investment le's hopedCommittee, that TRP Vietnam g practices oflocalfarmers,thusimprov- g products inordertopromoteVietnam's a capital investmentofover $42 million total area of 1,442 ha, including 1,100 ha BinhThuan ispractisedbyover 9,000 vietgap-dragon-fruit-area/ the investment environment VietGAP standardsaccounts 24 July 2017 49 / 59 49/ 2017 July 24 24 July 2017 24 July BUSINESS its city investment projectsin slow-moving Giang torevoke Bac finance& business Vietnam million-dollar projects found in FLC's Numerous violations farming shrimp funded projecton Bac Lieureviews FAO- Intellasia 115227.vnp http://en.vietnamplus.vn/bac-lieu-review sector. ment oftheshrimp ers' livelihoods and protectthe environment, advanced shrimpfarming models with theMinistryof work Along withsupporting investor terprises. It will enhance administrativetransparency ment, compensate forlandclearance an city_287749.html http://bizhub.vn/news/bac-giang-to-revoke- difficulties. toaddress investors with dialogues Bac GiangProvincewillcrea bined investmentcapital of than$1 more The city is currently hometo 250 projects Anh Hong Cohavereceived simila Duc TriEducationJSC and Anh Hongcomme Two other slow-moving projectsthe Thang Long private school project invested by tor has in2007. thelicence yet tocomplex after off receiving the kick complex, developedbyVINAPRODJSC,in to licen Committee an withdraw investment fo request also itwill added department The be operation toresumeits tor fails haveit will Theplant difficulties. financial planthalted billion(US$560,000) VND13.45 financedViet by Nga LimitedCo.Covering 6,600sq.m Da Mai in District,the One of the BacGiangCityprojectsisanex ning and Investment. projects that are moving tooslowly, accord Speaking at the event,FAOchiefrepresentati at Speaking technological application. result,ing techniques. theyhaveearn Asa farm- in and training shrimpfry themwith providing through breedingmodel shrimp Based on the finding, the project has helped on thefinding,project has Based expertise. investment inpond's conditions andequipm dramatic changes in the local environmentas a consequence of climate change,poor engine and specialised scientists Participating No.2. forAquaculture theResearchInstitute (FAO) ganisation and of agriculture andrural development, the effort a joint was in2016, The project,began ofso Development Rural and Agriculture Trang and Bac Lieu province, itwasreported A FAO-funded project has identified the ca 24/JUL/2017 INTELLASIA| VNA The northern provinceofBacGiangplansto 24/JUL/2017 INTELLASIA| VNS The MinistryofConstruction have been putintooperation without the Dozens of construction components intwo 24/JUL/2017 INTELLASIA| VIR province ofBinh Dinh. centralprovince Sam Soninthe projects in Agriculture and RuralAgriculture Development's agenciestoworkout te conditions to encourage (MoC) justconcludedthe inve s in land clearance, the province promises to maintain s inlandclearance,theprovincepromises adaptive to climate change in order to ensure farm- ensure to order in change climate to adaptive fore November, thedepartment said. r warningsfrom thedepartment. d hasten infrastructureconstruction. d , including 29 foreign-invested, with acom- with 29foreign-invested, , including s-faofunded-project-on-shrimp-farming/ billion, department statistics reveal. statistics billion, department necessary permits or quality inspection. or permits quality necessary uthern Bac Lieu province onJuly 21. pansion ofaagricultur s investment certificate revoked if theinves- if revoked certificate investment s ed higherincomesandgradually mastered United NationsFoodand Agriculture Or- of Thanh Hoa) and Nhon Ly in the centraland Nhon Lyinthe ofThanhHoa) oftheSocTrang andBacLieu departments ing tothe provincial Department ofPlan- 20 farming households 20 uses ofshrimp breeding failure inSoc Xuong Giang Street. The complex's inves- complex's The Street. Giang Xuong resort projectsdeveloped by FLCGroup and strictly punishofficialshamperingen- r anapprovalfromtheprovincialPeople's slow-moving-investme operation since 2012due to its investor's ce of$17.8 millionHanoi Princehotel ve in Vietnam Jong Ha in VietnamJong ve ent, and farmers' lackofknowledge and revoke licences from revoke licences contributingtothesustainabledevelop- ataseminarheldby the Department of ers attributed shrimp breeding failureto rcialservice and complexfiancedby businesses toboost invest- stigation oftwoFLC's al processing factoryal processing severalinvestment -bae said -bae said FAO will pilot asustainable nt-projects-in-its- 24 July 2017 50 / 59 50/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam Intellasia The Thanh Hoa People's Committeealsofailed The ThanhHoa Development. tection and on government the conditionssetby of protective forest landfor theconstruc converalso allowedthe tions. Thecommittee course golf the into land protective forest also allowe People's Committee The ThanhHoa prior tothe prime minister's approval. ple's hadapproved Committee the golfcour Hoa Peo- that theThanh said projectinspectors Regarding FLC's inThanhHoa,MoC been has and million), ($308.3 a totalareaof1,300ha,wi has QuyNhon FLC many ofwhichhave been operating since 2015. convention centre, a luxury resort, a hotel, million) trillion($242.3 VND5.5 Sam Sonhas FLC a totalareaof200 hectar FLC. projects,oper ofthe olations ofTh people's committees bythe management, and realestate FLC's implemen investigation focusedon The Regarding the 10constructioncomponents fi themintooperation. putting receive inspectionfroma surance, and appropriate construction obtain the to FLC cluding resorts, golf courses, and shoppi Regarding the nineconstruction component components. tion, andsatisfy legalrequirements on qual MoC also requested FLCtocease allconstr moni survey,The consultant, and Similar violationswere uncove protection. inspected forfireprevention and been not have structure also startedcons Another 15-storyhotel covering square metres. into operation withoutpermit and put built thedeveloper Sam Son, inFLC Particularly, records. management ity A large number ofconstructi surveys or tion ofconstruction th construction planning.Inbothprojects, Regarding FLC,inspectors thesaid deve the nents have been finished despite havingnopermits. struction alreadycomponents finished in Au Zone Management Binh DinhEconomic The plan. withthe1:2000 ible Binh Dinh People's Committee a1: approved Regarding the luxury resortandgolfcourse ing constructionpermits. Golf Linksproject the FLC in tion components finished.the FLCSamSonproject Twoconstruction componentsin andtwoconstruc- the FLCSam Son project andone construction of ConstructiThe Department FLC's resortSon. for andgolfSam course inQuangCu, viduals and organisations responsible for th MoC requested thepeople's hadno also according to theMoCinspectors.permits, truction withoutpermits.Other construction components committees ofThanh Hoa and on components inbothprojects business operations.A7-page on issued construction permits for two constructions for twoin on issued constructionpermits s a 7-story hotel with a total area of more than 4,000 4,000 than ofmore total area a hotel with 7-story s a in operation since July 2016. since July in operation red in the FLC QuyNhonproject. performed surveysimproperly. . The resort complex includes an 18-hole golf course, a golfcourse, a includesan 18-hole . Theresortcomplex a 75,000-sq.m area, a resort, and other technical infra- resort, andother area, a 75,000-sq.m a toring units as well cont as as well units toring ppropriate management agenciesbefore management ppropriate tion of FLC Sam Sonre tion ofFLC the implementation of the Law onForestPro- of the the implementation ng centres, among others,ng centres, MoCrequested anh Hoa and Binh Dinh, as well as thedevel- well as and BinhDinh, anh Hoa land area, whichviolated the PM's regula- this project and fiveconstruction compo- e developeralsolack es, with the total investment capital of capital investment the total es, with a villa complex, and an amusement centre, amusement and an villacomplex, a uction activities, carry out quality inspec- carry quality activities, out uction ity controlforthefinished construction e above mentionede above viol permits, carryoutc loper has committedva loper s already finished without permits, in- s alreadyfinishedwithout permits, nished with permits, MoCrequestedFLC se construction planin 2013,11months in BinhDinh, the inspectors saidthatthe 500 construction plan that was incompat- planthat construction 500 sion of more than 11 additional hectares sion ofmorethan11 th the total investment of VND7 trillion of VND7 th thetotalinvestment tation oftheconstructionplan, quality have been finished withouteverreceiv- been have to officiallyapprov in the FLC Golf Links after they were d the conversion of more than 11ha of the conversionofmorethan11ha d thority issued seven permits for con- report report shows numerousvi- Binh Dinhto hold the indi- ractors ofthe ractors two projects lacked construction qual- ed proper documenta- onstruction qualityas- sort withoutmeeting e the 1:500 planning planning 1:500 e the ations accountable. rious violationsin 24 July 2017 51 / 59 51/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam factory in Binh Duong Binh in factory opens 42million-USD firm Japan-invested multiplexes build low-cost to invests HK firm Tre departmentstore panels forsolar Ben TTC Energytoinstal Intellasia out without permits are all of a of all out withoutpermitsare dures. The representative alsoexplained conclusion and isworkingon corrective me th stated representative FLC's asked, When quests bySeptember. multiplexes_287745.html re- investment http://bizhub.vn/news/hong-kong- The Hanoi. as such cities large in cent per 60-70 is regions smaller in quired than effective more been have petitors Its cinema complexes in small cities andpr 2018. by plexes inVietnam southern provinces of Khanh Hoaand An Giang. ince ofThanhHoa, thenorthern provinceofBac Giang, Hanoi, HCMCity, and the expects The company to launch anothersix mu cent lower than the high-end cinemasinmajor cities. province ofDongNai, each with four tofi multiplexe four has thecompany Currently, model and focuses on small and outlying provinces. cinemas inthenorthernprovin Cineplex Beta A cinema investmentcompany, BetaMedia wa Group (VIG), theinvestor of Ga projects.html http://www.vir.com.vn/numerous-violations-found-in-flcs million-dollar- Prior to this, Beta Media has received in the country. HK Investments Ltdtoconstructlow-cost mu an inve Beta Media JSChassigned Vietnam's 24/JUL/2017 INTELLASIA| VNS store_287747.html http://bizhub.vn/news/ttc-energy-to-insta ing powerin2019-20. produc- start to expected is and 30MW of capacity a have will turbines wind 15 plant' To be built bytheMekongWind Power JS authorities.Ben Tre many senior officials, TTCGroup gotthe li by primeand was attendedthe conference, ministerNguyenXuanPhuc which At the governme and chairof Trong Truong Vinh held inBen Tre Province on July20inthepresence of former deputy prime minister The agreementwassigned onthe sidelines (Mekong) Deltato use clean energy. The agreementmakes SenseCityBen Tre the in theUS. TTC Energy, amember of the Group,willuse280Wmonosolarpanelsproduced TTC the roof of the latter's Sense DepartmentCity StoreinBenTre city. ment Development Joint Stock Company to install a 588 kWpsolar power system on TTC Energy Joint StockCompanyhassigned 24/JUL/2017 INTELLASIA| VNS ments and agencies, andFLCtosubmit a MoC expectedpeople's committeesof the to carryout quality inspection again and co producing gaskets, electric mattress pads The Japanese-invested TPR Vietnam Co. Ltd 24/JUL/2017 INTELLASIA| VNA small-scale or spiritual nature." laxy Cinemas and Galaxy Studios. and Cinemas Galaxy laxy firm-invests-to-build-low-cost- vestment capitalfrom that "the construction carried components l-solar-panels-for-ben-tre-department- Thanh HoaandBinhDinh, involveddepart- report on the implemen and plasticproducts ovinces and in suburban areas and insuburban without com- ovinces ve screens. Itsticket prices are 60to65per C, another member of the TTC Group, the Group, the TTC of C, anothermember cence for its Binh ai wind power plant from wind powerplant Binh ai its cence for of the investment in big cities, Minh said. Minh inbigcities,of theinvestment at the company has receivedthe companyhas inspection theat of aninvestmentpromotion conference mplete all relevant legalrequirements. s in Thai Nguyen, Hanoi and the southern s inThaiNguyen, Hanoiand asures andcompleting relevant proce- stment agreement withHong Kong'sstment Blue anagreementwithSaigonCo.op Invest- on July 21 putinto afactoryoperation ce of Thai Nguyen. Itfollows a low-cost first department store inthe Cuu Long ltiplexes in small cities and suburbs in suburbs and cities small in ltiplexes s established in 2015 with the launch of thelaunch with in2015 s established nt Office and minister, MaiTienDung.and minister, nt Office ltiplexes this year, in the central central year, prov- this in the ltiplexes Its target is tooperate20 theatre com- Vietnam Investment for daily useinthe tation ofthesere- 24 July 2017 52 / 59 52/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam project in HCMCity project high-end property todevelop Meada Intellasia duong/115208.vnp http://en.vietnamplus.vn/japaninvested-fi lion USD,ranking secondinVietnamfo 2,946 fo housed has sofar It months of2017. Duong attractedmorethan1.72 billion Binh ponent factoriesat different in Bi in 2006 in up set Vietnam, Earlier, TPR better serveinvestmentdemandandeconomic development. efforts toimprove theinvestmentenvironm Duong People'sthe Binh Committe Chair of products each month, alongwithsome other products. The newfactorymanufactures ed to expandinvestmenthere byop progress ofits projects. Acco After announcing itsjoint venture with Indoch Hanoi, Danang, andHCM City. reside develop will joint venture established projects inVietnamwith the total investment Kajima, whichteamedup withIndochina Another bigfishfrom Japanth Asia, Vietnam is the most interesting Yama to according market, estate real The rise. on the are tate es- real and IT, education, in Japan from investments that said Vietnam, in developers Masakazu Yamaguchi,CEOof the Vietnamese real estatemarketha and ofMeadain The participation particular VIR. told Kida Tetsuo Vietnam," in more popular be also will units When theinfrastructure system in Vietna "Japanese customershavebeen favouring thequality ofWaterina Suites will per squa from$3,100 prices starting With France. in ArtMuseum Folk (Australia), Sydney author ofmorethan70famousconstruc Suites wasdesigned byKengoKuma Waterina City. Line1inHCM Metro currently 2004, and as the construction ofDaminPower Plantin Meada has been operating in Vietnam for ma even project managementafter this project,frominvestmentcontribution, ing or management projects inVietnam, Meada w Different fromotherJapanese developers the high-end segment of the Vietnamese propertymarket. this projectwillbeamilest terina Suites, According toTetsuoKida, general director residential inDistrict2ofproject HCMCity. partnering upwithdomestic Thien Duc Comp Japanese developer Meada Grouphas recently 24/JUL/2017 INTELLASIA| VIR attenti Binh Duongauthorities' Kishi Masanobu,generaldirectorofJapan's mo of at acost was built The plant, based at the Vietnam-Singapore southern province ofBinhDuong. re than 42 million USD. 42 million re than rdingly, the three first hotels dustrial parks in the province. parks inthe dustrial on tocreatingafavourable in at recently joined the Vietna the joined recently at Creed Group, whichisalsocooperatingwithdomestic about 120,000 electricmattress 120,000 about the constructionisfinished. be anequal to those inTokyo. ening the fifth factory inBinhDuong. s highlighted the s highlighted sector's potential. market for Creed Group," he confirmed. market forCreedGroup," one ofJapanesetechnology andstylereaching tion works worldwide, including Harbourin China, andSaint-DenisParis Terminal in nh Duong, invested in four automobile com- automobile investedinfour nh Duong, re metre, ThienDuccommitted that Meada m improves, I do believe that apartment that m I improves, do believe rm-opens-42 millionusd-factory-in-binh- reign investmentCity. attraction afterHCM guchi, shows highdemand. "In Southeast Capital to develop arangeofproperty high-end apartment units since the 1960s. sincethe1960s. high-end apartment units design, construction, projectappraisal,and of Meada-ThienDuc,thedeveloper Wa- ho are shar- ininvestment mostly involved reign invested projects worth over 27.4 bil- invested projectsworth reign Industrial Park2inTanUyen township, ent and upgrade local infrastructure to infrastructure ent and local upgrade e Tran Thanh Liem promisedcontinuous Tran Thanh e 1997, Tan Son Nhat TanSonNhat Terminalin Airport 1997, TPR Group, saidhis USD of foreign investment in thefirst six investment USD offoreign ntial, hospitality, and resort projectsin hospitality, ntial, ny years with outstanding projects, such other Japanese real estatedevelopers in capital of nearly $1 billion. This newly newly This billion. $1 ofnearly capital any to build Waterina Suites, ahigh-end ina Land,Kajima is actively pushing the , a famousJapanesearchitect, whoisthe expanded itsportfolioinVietnam by will bedirectly involved in all steps of will be officially announcedwill be mese realestatemarket is vestment climate.Itdecid- pads and 30,000 plastic pads and30,000 firm highly values 24 July 2017 53 / 59 53/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam Change in emphasis Intellasia and improve the efficiency oflandusing of PhuocAnCoffee Co., said that NutiFood in thecontextofanincreasingly competitiv otherCoffee and coffeeexportmost companie Food is thatunforeseen aware acknowledged, however,thatagricult Hai markets. international brandThuot coffeeMetem. Inparticular, indomestic the Buon and willpromote it qualityport coffee tothema factory capacity,NutiFoodwi and deve research in rials toitsstrengths Its leadership has ambitionsofintroducin being K Coffee, Passio,Cau Dat Farm, An fresh coffee, andfilterbags.New brands en Vietnamese coffee brandis quite diverse an major names, such as TrungNguyen, Nesc wh the sceneatatime arrives on NutiFood brand and export markets further. world intraceablecoffee, some coffeefields. certified ofUTZ ha 1,400 ages ing raw coffee beans, Phuoc An has large ra With annualturnover ofaroundVND300bi coffee Vietnamese tion networktosend mostly exporting raw materials. "NutiFood th "NutiFood materials. raw exporting mostly market shareof20per cent but an export va According to Tran ThanhHai,Chairof gone industry, whichhas coffeeinto the Many mayquestion, however, whyamajor to di expresses NutiFood'sambition move Phuoc AnCoffee,withtotalinvestmentca agricult inhigh-tech province toinvest With $5.3 million incharter capital, Nuti New warrior market to even higher levels. coffee Vietnam's in competition spur will arrival its and capital", "coffee the country's NutiFood aimstoproducecleancoffeeand Lak. centralhighlands province ofDak the in concerncoffee An CoffeeCo.,aState-run May in into Vietnam'scoffeemarket entered The Nutrition Food Joint StockCompany(N on a 25 per centholdinginalocal producer. NutiFood hassetitssightson 24/JUL/2017 INTELLASIA| VNECONOMIC TIMES city-355107.vov http://english.vov.vn/economy/meada-to-dev the Global, Hankyu Realty Many other Japaneseinvestors joined the fi proximately 7,500 residential houses, province ofBinhDuong,30kilometresfrom the Garden in Tokyu southern billion $1.2 the developing currently is which Tokyu, One of the veryfirst investors inthe Viet said Kida. projects with Japaneseinvolvement focushe "Japanese peopleare famous fortheirstri Kajima-Indochina jointventure inthetimetocome. endof These will at 2017. the andNishi Nippon Railroad. rket withhighvalue and a be thefirstpartisans of a hotel chain developedby the ll advance theprocessing in difficulties may lie ahead. The challenge for Phuoc An may lieahead.Thechallengedifficulties for adding valuetoVietnam's co thing NutiFood will take adva commercial facilities, and offices. and facilities, commercial ure and become a strategic shareholder in ure andbecomeastrategic through upsanddowns many recently. NutiFood, Vietnamese high technology and move towards clean and and move towardsclean high technology to international markets," he said. Food announcedapart namese real estate estate ma real namese lopment, foodprocessing technology, and ct discipline andtechnology,therefore ct g organic rawcoffee. From cleanraw mate- versify its food and beverage products. beverage versify itsfoodand pital of VND1 trillion ($44 million). The Thai Cafe, Sunrise, PhinDeli, and Birdy. and PhinDeli, Sunrise, Cafe, Thai w material areas, totalling 830 ha, and man- ha, 830 areas,totalling w material e market environment. Ho Sy Trung, CEO Ho Sy environment. e market ure investments are long termand Nuti- afe, Vinacafe, and Highlands Coffee.The afe, Vinacafe,and en Vietnam's coffee market boasts many eld, including Mitsubishi Group, Daibiru, Group,Daibiru, Mitsubishi including eld, It is one of theofIt leading isone companies inthe ter themarket every year, withthelatest d includes roasted co d build thecoffee brandofBuonMeThuot, 's investmentrenovate, will restructure, llion ($13.2 million), mainly fromexport- mainly million), llion ($13.2 lue ofonly 2 per cent, due to primarily it avily on comfort,and quality, efficiency," milk producerwould pour investment HCM City. This project will consistofap- project HCM City.This utiFood), known for its Grow Plus milk, milk, Plus Grow its for known utiFood), after acquiring 25 per cent of the Phuoc erefore wantstomake elop-highend-property-project-in-hcm- s is creating added value incoffee beans professional distribution sys- dustry andthesupply of ex- ffee industry after taking ntage of in developing its ntage ofindeveloping rket from Japan was was fromJapan rket coffee holds aglobal nership with Dak Lak ffee, instant coffee, ffee, instant use of its distribu- 24 July 2017 54 / 59 54/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam a national brand a national ginseng as Ngoc Linh Vietnam promotes HCM City airport fornew Lotus design Intellasia It willhavea capacity of100 expected is airport The to thedesign,Thanhsaid. wouldThe ACV holddiscussions withthe c France joint venture. The others were designed by a Vietnam designs. Ltd, and shortlisted alongwithtwoothers The design had been proposedbyKorean the lotus design. He revealedthat26 members of consulta the and alsofromprofessional opinion on thedesign ofthe terminal in According tothechairof the ACV,LaiXuan Wednesday. minister Truong QuangNghiaandthe Ai meeting betweentheMinistryofTransportwas announcedaftera ledIt bytransport International Airport inDong City. Nai Province near HCM has beenchosenfor designflower A lotus 24/JUL/2017 INTELLASIA| VNS of thelocalmarket.The trends are clearto pr diverse shops with The explosionofcoffee but onl volume in share market world the "V 50cups. some yields thekilo port, while Vietnam receives about $2,or roughly the pric CFO of the MasanGroup,toldlocal media that Mich price. prices farabovethepurchase beans tobigroastersaroundtheworldunde Despite export turnover standing ataround tions, after thePhilippines. thesecond-faste in 2015/2016, Vietnam'sc coffee of (CAGR) The International Coffee Organisation esti mestic coffee production. consumption at doublethisfigure, but that ly consumption of billion nearly VND200 ulation drinksone cup of coff the industry. Onebusi potential forthosein and The domesticmarket its than90 more organic coffee products. Quang Nam and KonTumprovince. Ngoc Linh ginseng is amedicinal herb fo 24/JUL/2017 INTELLASIA| VOV5 http://bizhub.vn/news/lotus-desi after exceeding itscapacity The current international airport,Tan Son Nh when completedin2025. http://vneconomictimes.com/articl better manner." new trends,are creating bolstering competit people market.Young towards cleantrend coffeecontinuestopushthe brand. "The tition,"of saidPhanMinhThong, Chair thePhucSinhCorp.,owner oftheKcoffee mestic market will move into processing andbranding, driving more intense compe- "clean towards people, young changing among to cost billion. tocost $16.03 associations inthecountry. much earlier than expected. million passengers and five passengers and million onsumption at8percentfor onsumption ee a day, atanaverage fordai- ee aday, ($0.8), price of VND20,000 st theworld's st growth rate coffee exporting among na- gn-for-new-hcmc-airport_287734.html e/business/change-in-emphasis City,Da Hanoi,Nang, HCM andDongNai -Japan-Singapore consortium andaJapan- und on NgocLinhMountain located between ael H. generaldirector Nguyen, deputy and rport Corporation of Vietnam (ACV) on Corporation ofVietnam(ACV) rport y 2per centofitsvalue," he said. company HeerimArchitects& Planners Co ($8.8 million). Other figures put current current Other figuresput million). ($8.8 see, with consumpti mates the compoundannualgrowth rate ietnamese coffeeaccounts centof for20per the terminaloftheproposed Long Thanh by the ACVfollowing public displays of all million people remains a market ofsome it only accounts for about 5per centof do- onsultative group to makeimprovements onsultative group r theirbrandname,whichare thensoldat $3 billion, Vietnam primarily sells coffee coffee sells primarily Vietnam $3billion, ness estimates that 10 per cent of thepop- 10 percentof that ness estimates ion butalso making the market grow in a Thanh, the ministryhadcollected public tive group, or almost 60 per cent, chose oducts and services is changing the face at in HCM City, City, is at the seams at inHCM bursting e of a cup of coffee in the country of im- of a cupofcoffeeinthecountry e of when selling one kiloofcoffee beans, " coffee. "In thenext ten years, the do- million tonnesofcargoayear the four-year period ending on habits, especially 24 July 2017 55 / 59 55/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam Intellasia brand-354866.vov http://english.vov.vn/economy/vietnam-pr gardens through which topromotethe cons Quang Nam is also planning to build cultural to build planning also is Nam Quang in advertisements in the domestic andforeign market. creased investmentin hi-tech equipmentto Currently, stateagencies, domestic enterp district's Peop replenish the forest forginseng farming," products It necessary to the world. also is "Nam Tra My district is calling onbusine Ngoc Linh gingseng trademarkin Vietnam andoverseas. ing astrategy topromote the productextensively and register legal protection for As NgocLinhginsengbrandha Quang Nam and KonTum consumers as awhole. to protectthelegiti step strates a practical Indica Geographical The projecttobuild abroad. seng root products andadvertising Ngoc ginseng brand, including building theGeog Quang Nam province has recently takenst " world. in the er kindsofginseng Linh ginsengadequate investment,Ngoc With and USgi Republic ofKorea The content. ginseng, is praisedfor having the highes thetypesofginsenginworldto Among the managementof ginseng farming areastosecure theoriginal gingseng gene. we willbuildanationalbrand for NgocLi Le Tri Thanh, deputy ChairofQuang Nam' ginseng. tonnes ofcommercial Republic ginseng producerafterthe ond-largest tional projecttodevelop Ngoc Linhginseng, Quang Nam also plans to develop agenetic mapofNgoc Linh ginseng. Under ana- munes of NamTraMy district. Ittargets 1 million ginseng trees by 2020. Quang Nam province has zonedoffover 15,0 one." of instead communes spans 7 the growingarea and 1,000 more than 100 householdswereinvolvedingrowingginseng.Nowthereare than past fewer the folds, 10 increased has farmingarea the 2015, government approved the project todevelop Ngoc Linhginseng trees inSeptember, world and produces high profits. NamTra Ngoc Linhginsengisconsidered oneofthefi Ho Buu, Chair Ho Quang of TraMydistri Nam the main component ofginseng; which hasn a newstructureing saponinshave commonly found in Korean ginseng, US ginseng, and Japanese ginseng. The remain- Ngoc Linh ginseng contains 52 types ofsaponi na species andnatural conditionsthat NgocLinhMo 2,600-metre-high termined thatNgocLinhginseng was ane in1 discovered was first Linh ginseng Ngoc brand for it tothe world. promote a expand itsgrowingarea,Linh ginseng,and Ngoc been workingtoprotect le's Committee. sn't been widely knownabroad,QuangNamisoutlin- untain hasforests withanabundanceofflora andfau- the more saponins, the better. favour thegrowthofNgocLinhginseng. tion for Ngoc Linh ginseng products demon- ginseng products Linh tion forNgoc t economic value and thegreatestsaponin Linh ginseng widely both at home and to conserve the original ginseng, protect and ssesprom tojointly nseng havesuccessfully nh gingsengandpromulgateregulationson mate rightsinterests andmate ofproducers in said Ho Quang Buu, Chair of Nam Tra My Tra of Nam Chair Buu, Quang Ho said rises,Nam provinceQuang and havein- produceNgocLinhgingsengproductsand w endemic species of Vietnameseflora. omotes-ngoc-linh-gins eps toprotectand promote theNgoc Linh My district ofQuan raphical Indication(G raphical day, NgocLinh gingseng,theVietnamese 973. By 1985 973. By1985 Vietnamese scientists hadde- s People's Committee said "In the future, "Inthefuture, s said People's Committee ct's People's Committ ct's People's umption ofNgocLinh umption ginseng products. ve most valuable medicinal inthe medicinal species ve most valuable tours inassociation by 2025 Vietnam willbethe world's sec- from 120 from120 hectares.In hectares to 1,200 00 hectares togrowginseng in 7 com- ns, 26 ofwhichhavechemicalns,structures 'tfound been inothertypes.Saponinis will be able to compete with all the oth- all competewith to beable will of Korea, with an annual yield of 1,000 yield of1,000 annual an ofKorea,with ote Ngoc Linhginseng g Namprovincehas with visiting ginseng I) forNgocLinhgin- eng-as-a-national- built their brands. ee, said"Since the 24 July 2017 56 / 59 56/ 2017 July 24 24 July 2017 24 July BUSINESS supermarkets items atJapan Aeon among top-quality Vietnam's trafish finance& business Vietnam opens in DaNang conference, exhibit start-up Major 60pctH1 in in Vietnam growby Mercedes-Benz sales Intellasia 115271.vnp http://en.vietnamplus.vn/mercedesbenz-sa debut in late 2016. new-generation E-Classalsosa 100 orders forluxury model Mercedes-Mayba Accordingreceived tothe over MBV,sincethebeginningofthisyear,companyhas Agreement (ATIGA). Asean-made vehiclesinearly tariff on The brand also appeared tonotaf alsoappeared much be The brand VND. 14.45 billion ranging from1.34 billion "It's alsoan opportunity foryoung businesses in DaNang seeking fund investors,"he said. Khuong. Vo Duy Incubator, Business osystem inthe future," saidchair ofDaNang's Start-up NetworkCouncil andDaNang significant chanceforand the partners city fo in2030.hub ofAsean The2017 International ci tomake the looking are "We 2030. vistion to a with 2020, Da Nang has launched its business start- territories. and from27 countries tives City, Hue, QuangNam, BinhDinh, Can Tho, students fromorganisations, authorities, ers, partners, investment funds, investors, The event, entitled Surf-the international experts. and mestic ideasand round-table inpaneland discussions,fireside talks and do- charts among Start-up Conference andExhibition inthece and speakers than2,000 businesses, More 24/JUL/2017 INTELLASIA| VNS in Vietnamtoboost demand, sold models toluxury pricesfor bothaffordable cutting are automakers many While th cars during sold atotalof 2,900 firm The in Vietnam. half first the during sales cent inautomobile Mercedes-Benz Vietnam(MBV)reported ayear 24/JUL/2017 INTELLASIA| VNA Ta DucMinh, Trade Counsellor andchiefre group planstoexpandthesaleofth AEON at beensold summer has in of Japan the with made product fish tra The Vietnamese be inline and made taste st said tomeetTopValu region, and Niigata Keisuke Hino, who manages AEON's aquatic quality. leading with are which goods ucts at supermarkets sold Aeon trafish Vietnam's 24/JUL/2017 INTELLASIA| VNA supermarkets/115272.vnp http://en.vietnamplus.vn/vie trade revenue. the twocountries'goods helpingtoincrease tegic re and bananas, mangoes from trafish, Aside ards. safety and fishfarming,packagingan align He addedtoboosttheshipmentsoftrafish to in and7million in lion USD 2016 USD in Japan,said trade ministry with AEON's strictprocess. with Start-up Wave 2017, also featured local governmentlead- featured also 2017, Wave Start-up Vietnam's trafishexportstoJapanapproximated14mil- Vietnam's tnams-tra-fish-among-topquality-items-at-japan-aeon- ty intoastart-updestinatio the MBV still enjoyed high sa w a good sale with more than600 units sold since its is product in the future, he inthefuture, added. product is thefirstfive of2017. months 2018 following the Asean followingthe Trade inGoods 2018 Asean up programme eco-system from nowuntil universities and residents from Hanoi, HCM universities andresidentsfrom entrepreneurs, enterprises, start-up support students joined thesecond International Start-up ConferenceandExhibition willbea les-in-vietnam-grow-by-60-percent-in-h1/ andards, productsmust satisfy consumers' fected byelimination rming development of th supermarkets since June, and the retailing theretailing June,and since supermarkets e period in spite of the market fluctuation. periodmarket inspiteofthee d labeling activities with Japanese stand- withJapanese d labeling activities of 2017, the best in 22 years of its presence the yearsofits of 2017, best in22 presentative of Viet ntral city yesterday, sharing experiences sharing yesterday, city ntral in Japan is listedamong"TopValu"prod- d-flesh dragonfruits Japan, itisveryimpo Dong Thap, Da Nang and representa-Thap, DaNangandDong ch, withhalfofthemdelivered. The products section in the northern Kanto recipe of the eel dish a traditional food a of theeeldish recipe -on-year growthofmore than 60 per- n and internationalinnovation and n les even with itsprices nam's Industry and of Vietnam'simport rtant to ensurefood are considered stra- considered are e city'sstart-upec- 24 July 2017 57 / 59 57/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam August in place 2017 totake Vietnam Export Forum technologies green showcase Taiwan expo to Intellasia solutions to improve the co solutions toimprove the Korean andJapanese fi Thewill forum alsoconnect Vietnameseen will share risk management modesinexports. improvementpetitiveness ofVietnamesepr nesses toattendglobalsuppl Trans-Pacific Partnership (TPP), challenges from the after markets withdrawal US's regional and global discuss will Delegate announced HCMCityInvestmentand http://en.vietnamplus.vn/t in Vietnam. Taiwan had2,526in By theendofMay, has production. Vietnam importsmanyproductsfrom Taiw other issueswill organised. as well as velopment At the exhibition, manyworkshops related part intheevent. health, employment, food processing, tour As many as 150Taiwanese exhibitors operatin stronger business ties be Greener themeof With Tech Life, Smarter Saigon ExhibitionandConventionCentre Environmentally friendly tec 24/JUL/2017 INTELLASIA| VNA nang_287752.html http://bizhub.vn/news/major-start- terprises. has percent businesses, 95 Da Nang 18,000 gramme. Last year, the central city's Song Han In will close today. and the EP Inno Swiss Initiative, Business The conference, which wassponsored by as well sharing expe Participants alsofocussed on the start-up and foster cooperation between DaNang the relati boost to aims the MoU said She geoning partnership wi ofIreland Cait Moran,Ambassador to Viet porting thedisabledpersons in Da Nang. College andIrisuniversi Nang's Economics Education The MoU will Master include skills forthecity's personnelandstart- of Understanding(MoU) on highquality Irelan city andthe the this year, Earlier day event. also shared experience andsuggestion for young start-up businesses during the two- and of ColorJar, ofPriceline.com cofounder the Jeff Hoffman, speaker Motivational tions, and exhibitions. inpanel di sponsors and colleges institutes, pavili The eventdrew the participationof70 egates from ministri Vietnam Export Forum 2017willbeorganised 24/JUL/2017 INTELLASIA| SGGP NEWS es, agenciesandleadingbusinesse rms, supply newly updated inform updated newly supply rms, rience andtechnology. th Da Nang City. tween Vietnamand Taiwan. mpetitiveness of export companies in key markets. aiwan-expo-to-showcase-g hnologies willbes y chains. In addition, they up-conference-exhibit-opens-in-da- d Embassy in Vietnam agreed a Memorandum Memorandum agreeda d EmbassyinVietnam up programme forstudents in Da Nang. Trade Promotion Centre yesterday. cubator launched a tourism start-up pro- atourism start-up cubator launched programme, education exchangeamong Da onship between Ireland and the central city with locals and cities in Ireland. cities and locals with terprises with Indonesian, Malaysian, South South Malaysian, Indonesian, with terprises ecosystem, support policies and investment investment and policies support ecosystem, human resource education, management human resourceeducation, vation PartnershipProg the AsianDevelopment Bank, the Mekong in district indistrict 7 fromJuly26-28. ism and education ism andeducation are scheduledtotake nam, saidIrelandnam, looksforwardto a bur- the exhibition will bring opportunities for ofwhichare small and medium-sized en- and opportunities for Vietnamese busi- Vietnamese for opportunities and an, including machinesequipment and for tiesin sup- and humanitarianprogramme pitching competi- scussions, roundtables, to trade promotion and green energy de- vestment vestment projects billionUSD worth 32.4 ons from start-up projectsandbusinesses,ons from oducts. Domestic business associations on August 8, expected to attract 400 400 del- 8,expectedto attract on August g inthe fields ofagriculture, fishing, howcased at Taiwan Expo 2017 at the Expo 2017at Taiwan howcased at reen-technologies/115228.vnp s inHCMCityand provinces, ation about export markets and and markets export about ation will analyse quality and com- and quality analyse will ramme in Vietnam, 24 July 2017 58 / 59 58/ 2017 July 24 24 July 2017 24 July BUSINESS Vietnam finance& business Vietnam Intellasia End gust-67990.html http://sggpnews.org.vn/business/vietnam- chains. supply global in participate and countries in barriers duction process aswell as From that, businesses canestimate, adju product quality tomeettec quality product st andimprovetheirmanagement and pro- export-forum-2017-to-take-place-in-au- hnical requirementsandtrade 24 July 2017 59 / 59 59/ 2017 July 24 24 July 2017 24 July